ORDINANCE No. 182738

* Amend contract with SAP Public Services, Inc. to provide additional software licenses for $246,458 for the City SAP Enterprise Resource Planning system software licenses and maintenance fees (Ordinance; amend Contract No. 36718)

The City of Portland ordains:

Section 1. The Council finds:

1.  The City purchased Enterprise Resource Planning (ERP) system software from SAP Public Services, Inc. in June 2006.

2.  The implementation and go-live of the City SAP ERP system occurred on November 27, 2008 for the Finance and Logistics (FILO) phase of the Enterprise Business Solution (EBS) Project.

3.  Implementation of the Human Capital Management (HCM) phase of the Enterprise Business Solution (EBS) Project has been reset to occur on June 18, 2009.

4.  As the FILO and HCM phased implementations go live and as the City leverages SAP to improve business processing, the utilization of SAP Interactive Forms by Adobe extended functionality to enter data in an Adobe PDF format and automatically transfer the data into the SAP ERP system has increased.

5.  The City requires additional licensing of the SAP Interactive Forms software by Adobe to take advantage of SAP extended functionality. The amount for the additional software licensing in support of the FILO and HCM implementations in this contract amendment (attached Exhibit A) is $135,000. Funds are included in the EBS Project FY2008-2009 contingency.

6.  Maintenance fees in support of the additional software licenses are $29,700 annually, paid quarterly in arrears, and is capped for the level of licensing in this contract amendment through December 2012 for a total amount of $111,458. Funds are included in the EBS Project FY2008-2009 contingency and the EBS Division FY2009-2010 budget request, and funds will be requested in the future EBS Division budget requests for FY2010-2011, FY2011-2012, and FY2012-2013.

NOW, THEREFORE, the Council directs:

a. The Mayor and Auditor are hereby authorized to execute Amendment No. 6 with SAP Public Services, Inc., subject to approval as to form by the City Attorney.

b.  The Mayor and the Auditor are hereby authorized to draw and deliver warrants chargeable to the Office of Management and Finance, in accordance with the payment terms of the contract, when demand is presented and approved by the proper authorities, in an amount not to exceed the newly amended contract amount of $ 3,991,458.

Section 2. The Council declares that an emergency exists in order to avoid delay in EBS Project implementation, go-live, and stabilization that would increase costs to the City; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Passed by the Council: April 29, 2009    GARY BLACKMER

Auditor of the City of Portland

By /s/ Susan Parsons

Mayor Sam Adams               Deputy

Prepared by Jennifer Sims

April 16, 2009

BACKING SHEET INFORMATION

AGENDA NO. 529-2009

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 182738