To: HONORABLE MAYOR AND From: Jose Obregon

CITY COUNCIL

SUBJECT: AGREEEMENT FOR MAINTENANCE AND SUPPORT FOR

SUN MICROSYSTEMS HARDWARE AND SOFTWARE SYSTEMS

RECOMMENDATION

1) Adoption of a resolution authorizing the Director of General Services to negotiate and execute a software and hardware maintenance and support agreement with Sun Microsystems (Santa Clara) in a first year amount not to exceed $143,705.84; and

2) To execute four one-year options to renew for a total of five years without further Council action other than the appropriation of funds.

BACKGROUND

Over the past two years, the City has made several major purchases of hardware and software from Sun Microsystems under three separate purchase orders totaling $1,744,489. The maintenance and support services were included with the initial hardware and software purchases. After the initial maintenance period expires, it must be renewed separately.

The existing separate maintenance agreements with Sun will be expiring on May 30, 2003. This is an ideal opportunity to consolidate the various Sun maintenance and support agreements into one. The maintenance will consist of providing 24x7 phone support and on-site coverage with a two-hour response time, and overnight replacement of parts.

ANALYSIS

The City requires continuous maintenance and support for the Sun hardware and software environment (servers, storage, tape back up and software) that house the City’s HR/Payroll System as well as other critical business applications and databases. Hardware and software support is essential to the continued operation of the Sun environment. The term of the new agreement will need to cover thirteen months beginning June 1, 2003 through June 30, 2004 in order to bring the maintenance and support service agreement into alignment with the City’s fiscal year.

SUMMARY

Over the past two years since the hardware and software were acquired, the City has benefited from having Sun, the Original Equipment Manufacturer (OEM) provide maintenance and support. While there are other Sun certified third-party companies that can provide the required hardware maintenance, Sun is the only provider of software maintenance. By combining both our hardware and software maintenance requirements with Sun, the City will receive better service with competitive pricing. In addition, we feel that it is advantageous to team with the OEM in order to benefit from immediate access to Sun’s engineering changes (i.e., updates, OS Levels, patches, hardware, security etc.) to the Unix System environment that we are deploying. The consolidation of the three separate Sun contracts mentioned previously into one contract will help streamline and simplify the management of the Sun maintenance and support for both hardware and software.

PUBLIC OUTREACH

Not applicable

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office, City Manager’s Budget Office and the Information Technology Department.

COST IMPLICATIONS

The City will expend $143,705.84 during fiscal year 2002-2003.

This action is consistent with the Council approved Budget Strategy Memo. Specifically, General Principles Item #2 “We must focus on protecting our vital core city services”, and Item #7 “We must continue to streamline, innovate, and simplify our operations…so that we can deliver services at a higher quality level, with better flexibility, at a lower cost.”

BUDGET REFERENCE

Fund: General Fund – 001

Amount: $6,925,086

Budget Document: 2002-2003 Adopted Operating Budget, Page 356

CEQA

Not a project

JOSE OBREGON

Director of General Services