CITY OF GLENDALE, CALIFORNIA REPORT TO THE: Housing Authority D Successor Agency D Oversight Board D

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1 Joint D City Council IZI CITY OF GLENDALE, CALIFORNIA REPORT TO THE: Housing Authority D Successor Agency D Oversight Board D January 21, 2014 AGENDA ITEM Report Purchase of annual maintenance and support with TIBCO Software, Inc. for the Glendale Water & Power's (GWP) Enterprise Service Bus (ESB) software. 1) Motion authorizing the Purchasing Manager to execute a purchase order with TIBCO Software, Inc. to purchase two years of annual maintenance and technical support with an option to renew for three (3) additional annual terms, for the initial payment amount of $223, COUNCIL ACTION Public Hearing D Ordinance D Consent Calendar IZI Action Item D Report Only D Approved for Januaiv calendar ADMINISTRATIVE ACTION Submitted by: Brian Ganley, Chief Information Officer - ISD Stephen M. Zurn, General Manager - GWP Prepared by: Dennis C. Joe, Technical Staff Associate Eric Brumm, Infrastructure Administrator- ISO Approved by: Scott Ochoa, City Manager ~~ Reviewed by: Yasmin K. Beers, Assistant City Manager Michael J. Garcia, City Attorney Robert Elliot, Director of Administrative Services }ii"' -;fi)fl?fpf'y~ a I

2 RECOMMENDATION Staff respectfully recommends the City Council authorize the Purchasing Manager to execute a purchase order with TlBCO Software, Inc. to purchase two years of annual maintenance and technical support with an option to renew for three (3) additional annual terms, for the initial payment amount of $223, BACKGROUND/ANALYSIS In 2011, Glendale Water & Power (GWP) implemented an enterprise service bus (ESB) as part of its ongoing modernization efforts. The ESB was deployed to connect various City systems on a bus-based backbone that can circulate data, messages and events in realhtime across the environment. This middleware application controls the routing and translation of communications between systems and acts as an intermediary. Overall, the ultimate benefit of this software is that it reduces the number of points from and to applications, increases system flexibility and simplifies system change requirements, as-needed. In 2012, modernization efforts slowed and support for ESB maintenance was not renewed. Presently the City is picking up where it left off, so support for ESB is now being requested. To resume support, the software vendor requires the payment of past maintenance that was missed, along with a reinstatement fee. As a result, costs for maintenance and support for the subject system will include both the current and last year's missed term. The Information Services Department (JSD) requested competitive bids from several vendors to renew maintenance and support for the ESB system. ISO received four (4) bids to renew terms for last year's missed annual term and the current annual term. The received bids are as follows: TIBCO Software, Inc. $ 223, Software House International SHI $ 223, Alexan International. $ 230, CDW Government $ 240, ISO staff selected TIBCO Software, Inc., as this vendor quoted the lowest competitive cost for maintenance and support, at a price of $223, As a result, staff is requesting the City Council authorize the Purchasing Manager to issue a purchase order with TIBCO Software, Inc. to renew maintenance and support for the ESB system. Renewed annual maintenance and support is important to gain access to critical software updates, patches and technical support to sustain the software's function. FISCAL IMPACT The initial fee for support during the fiscal year will cover the missed annual term for last year, a re-instatement fee and the current annual term af a cost of $104,640, $14, and $104,640, totaling $223, The budget is available in the ISO Infrastructure Internal Services Fund, Annual renewal fee for software can increase up to five percent (5o/o) annually. The annual maintenance fees for the optional-three (3) additional annual terms will be $111,013, $114,343 and $117,774, for the third through fifth annual terms respectively. The cost for the future years 2

3 will be budgeted through the annual budget process for each year. The total suppo rt cost will be $566,537 for the five (5) year period. ALTERNATIVES Alternative 1: Authorize the Purchasing Manager to execute a purchase order with. TIBCO Software, Inc. to purchase two years of annual maintenance and technical support with an option to renew for three (3) additional annual terms - Annual support will allow the City to receive technical support and updates to maintain ESB. As the City's IT environment progresses, the subject system will r~duced the number of points from and to applications, increase system flexibility and simplifies system change requirements, as needed. Alternative 2: Operate the ESB without support - The ESB can still operate without maintenance and support. However, system will not receive updates to patch security vulnerabilities or know.n software issues. Becai.Jse the ESB is the middleware application that m anages access multiple applications and services, it is inadvisable that this system operates without support. Alternative 3: The City Council can consider any other alternative not proposed by staff. CAMPAIGN DISCLOSURE In accordance with the City Campaign Finance Ordinance No. 5744, the following are the names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report: Chief Executive Vivek Ranadive Officer Exec. Vice Pres./ Bill Hughes General Counsel Tom Laffey Exec. Vice Pres., Products & Technolo Chief Financial. Matt Langdon Officer Peter Lee Exec. Vice J:'res., Analytics and Customer Lo al Exec. Vice Pres., Ram Menon Social Computing Chief Operating Murray Rode Officer Murat Sonme:z Exec. Vice Pres., Global Field O erations Palo Alto CA

4 .. Subcontractors of TIBCO Software Inc ' Full Name Title Business Address Citv State ZiD.. EXHIBITS None. 4

5 MOTION Moved by Council Member, seconded by Council Member, that the Purchasing Manager is authorized to execute a purchase order with TIBCO Software, Inc. to purchase two years of annual maintenance and technical support for FY and FY with an option to renew for three (3) additional annual terms, for a total not-to-exceed amount of $566,537 over the five year period. Vote as follows: Ayes: Noes: Absent: Abstain: DAm Cil '