Explanation
Background: This ordinance authorizes the Director of Public Utilities to modify and extend an existing contract with Oracle America, Inc. for licensing and cloud service fees for the Department’s Customer Information Systems (CIS) and Integrated Systems Replacement Project. The modification amount being authorized by this ordinance is $461,612.27.
The Department of Public Utilities (DPU) is in the process of replacing its current customer information systems platform, the Columbus Utility Billing System, also known as CUBS. DPU implemented Oracle’s Customer Cloud Service (CCS) for meter data management in 2022 as part of the Department's Enhanced Metering Project (EMP). Numerous custom integrations were created to sync meter data between Oracle’s CCS and Hansen Banner. It is challenging to manage the lifecycle of meters with two separate systems. Since DPU is already using Oracle CCS for meter data management and analyzed the functionality of the Customer Information Systems (CIS) side of Oracle CCS, DPU would like to continue using the entire Oracle CCS solution, including Oracle Reporting and Analytics tools. The merging of these systems into one platform reduced system complexity, increased data and billing accuracy, and made it easier for DPU to support the system into the future. In addition, DPU gained similar benefits with the implementation of Oracle Field Service (OFS) for utilities, which is also developed by Oracle and built to integrate with Oracle CCS. OFS is replacing our current Mobile Dispatching System, CGI’s PragmaCAD. Therefore, due to the benefits of merging the systems into one platform, it is in the best interest of the City to modify the existing contract with Oracle Amercia, Inc. for the customer platform licensing.
The licensing subscription for this modification will begin on October 20, 2025 and run through March 31, 2026 to better align the renewal cycle for all of the Department’s Oracle licenses. A modification is anticipated in early 2026 to combine this contract with the Division of Water’s current contract regarding Oracle licenses.
1. Amount of additional funds: Total amount of additional funds needed for this contract modification No. 1 is $461,612.27. The total contract amount including this modification is $2,054,248.67.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract and this legislation authorizes funding to cover approximately six months worth of license subscriptions to align better with the Division of Water contract.
3. Reason other procurement processes were not used: Work under this modification is a continuation of services included in the scope of the original contract. No lower pricing/more attractive terms and conditions are anticipated at this time.
4. How was cost determined: The cost, terms, and conditions are negotiated based on the number of users. The cost for this renewal was provided by a written quotation and is $461,612.27.
Principal Parties:
Oracle America, Inc.
500 Oracle Parkway
Redwood Shores, CA 94065
John Bitzan, (440) 258-7029
Contract Compliance Number: 010840
Contract Compliance Expiration Date: 10/04/2025
Fiscal Impact: $461,612.27 is available from within the Public Utilities Operating Funds to meet the financial obligations of this contract modification.
$1,117,379.36 has been spent so far in 2025
$299,695.40 was spent in 2024
$0461,612.27 was spent in 2023
Emergency Justification: Emergency action is requested in order to keep DPU’s licensing current, and to avoid a lapse in access to the necessary and vital platforms and services provided under the contract. Since this contract will be combining with the Division of Water’s licenses in April 2026, additional conversations, planning, scheduling, and negotiations were required beyond what was anticipated. Access to the system ensures there are not interruptions to the implementation projects, which are scheduled to start in late 2025.
Title
To authorize the Director of Public Utilities to modify and extend an existing contract with Oracle America, Inc. for licensing and cloud service fees for the Department’s Customer Information Systems (CIS) and Integrated Systems Replacement Project by adding additional funding and extending the contract term; to waive the competitive bidding provisions of City Code; to authorize the expenditure of $461,612.27 split among the Public Utilities Operating Funds; and to declare an emergency. ($461,612.27)
Body
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to modify and extend an existing contract with Oracle America, Inc. for licensing and cloud service fees for the Department’s Customer Information Systems (CIS) and Integrated Systems Replacement Project; and
WHEREAS, Ordinance 2871-2023 DPU implemented the entire Oracle CCS solution, including Oracle Reporting and Analytics tools, which reduced system complexity, increased data and billing accuracy, and made it easier to support the system into the future; and
WHEREAS, due to the continued benefits of having the systems on one platform, it is in the City’s best interest to waive the competitive bidding provisions of Chapter 329 of City Code; and
WHEREAS, it is necessary to authorize the expenditure of $461,612.27 from the Public Utilities Operating Fund, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Public Utilities in that it is immediately necessary to authorize the Director to modify an existing agreement with Oracle America, Inc. to provide licenses and cloud services for the Department’s Customer Information Systems and Integrated Systems Replacement project by adding additional funding and extending the contract term in order to maintain access to the system without interruption all for the preservation of the public health, peace, property, safety, and welfare and, NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities be and is hereby authorized to modify an existing contract with Oracle America, Inc. for licensing and cloud service fees for the Department’s Customer Information Systems (CIS) and Integrated Systems Replacement Project by adding additional funding and extending the contract term. The additional funding amount being authorized by this ordinance is $461,612.27; and the contract term extension authorized is to March 31, 2026.
SECTION 2. That this Council finds it in the best interest of the City to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes for the contract with Oracle America, Inc. and does hereby waive the same.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That for the purpose stated in Section 1, the expenditure of $461,612.27 or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from Public Utilities in object class 03 Services, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds, per the accounting codes in the attachments to this ordinance.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.