REPORT TO THE CITY COUNCIL May 19, 2016 FROM: BRYON HORN, Assistant Director Information Services Department BY: KEN ISHIMOTO, Administrative Manager Information Services Department SUBJECT ..Title Actions pertaining to Amendment No. 2 to the Rimini Street, Inc. Services Agreement 1. ***RESOLUTION - 45th amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 appropriating $100,800 for an increase to the Rimini Street, Inc. Services Agreement fee (Requires 5 affirmative votes) 2. Approve Amendment No. 2 to the Rimini Street, Inc. Services Agreement. ..Body RECOMMENDATIONS Staff recommends that City Council: 1. Adopt the Appropriation Resolution to provide the necessary funding for the increased Rimini Street, Inc. support fee. 2. Authorize the Assistant Director of the Information Services Department to execute Amendment No. 2 with Rimini Street, Inc. Services Agreement. EXECUTIVE SUMMARY Rimini Street, Inc. (Rimini) provides the City of Fresno (City) application support for its PeopleSoft Financials and Human Capital Management systems. In fiscal year 2016, the City's adopted budget triggered a license fee expansion clause in the Software License and Services Agreement with Oracle Inc. (formerly PeopleSoft) which increased the PeopleSoft license fees. Due to the PeopleSoft license fee increase, the Rimini support fees increased. Amendment No. 2 to the Rimini Street, Inc. Services Agreement addresses the increase in Annual Support Fee. BACKGROUND On May 7, 2013, City entered into a Services Agreement with Rimini to provide PeopleSoft support services. The PeopleSoft applications process maintains the City's accounting, personnel, and payroll records including accounting transactions, employee information, payroll checks, and support the City's federal and state reporting requirements. In fiscal year 2016, the amount of the City's adopted budget triggered a license fee expansion clause in the City's Software License and Services Agreement with Oracle which caused an increase to the cost of Rimini's support services. Amendment No. 2 to the Rimini Street, Inc. Services Agreement accounts for the $330,776 annual support fee for June 1, 2016 to May 31, 2017 (Year 4) and a 5% annual increase in annual support fee for Years 5 through 15. The City Attorney's Office has reviewed and approved the amendment as to form. ENVIRONMENTAL FINDINGS Not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference not implemented because this item is an amendment of an existing contract. FISCAL IMPACT Funds are available in ISD's System Replacement Fund (54001) with recovery through the annual budget for service process. The approval of this item will increase appropriations in ISD's fiscal year 2016 budget and allow for payment due in early June. Attachments Annual Appropriation Resolution No. 2015-104 Amendment No. 2 to the Rimini Street, Inc. Services Agreement 2