File #: O-377-21    Version: 1 Name:
Type: Ordinance Status: Second Reading
File created: 7/8/2021 In control: Finance Department
On agenda: 8/17/2021 Final action: 8/17/2021
Title: Authorizing the mayor to enter into a SAP hosting and application services agreement for a term of two years with two one-year renewal options; waiving the competitive bidding requirements of Toledo Municipal Code Chapter 187; authorizing the expenditures not to exceed $1,572,130 from the General Fund and the Utility Administrative Services Fund over the term of the agreement; and declaring an emergency.
Attachments: 1. Audio: City Council August 17, 2021
Label
SAP-Hosting
Department of Finance, Department of Public Utilities,
M. Campbell (x1252), C. Geronimo (x2363)

Title
Authorizing the mayor to enter into a SAP hosting and application services agreement for a term of two years with two one-year renewal options; waiving the competitive bidding requirements of Toledo Municipal Code Chapter 187; authorizing the expenditures not to exceed $1,572,130 from the General Fund and the Utility Administrative Services Fund over the term of the agreement; and declaring an emergency.

Body
SUMMARY & BACKGROUND:
This ordinance authorizes a multi-year agreement with IBM/Kyndryl for the provision of hosting services for the DPU and ERP SAP systems. The existing hosting agreement with IBM/Kyndryl will expire at the end of 2021. The City has the opportunity to enter into a new agreement now and take advantage of lower monthly costs. This ordinance requests authorization for the agreement, expenditures not to exceed $1,572,130 and also waives competitive bidding. The waiver of competitive bidding will allow the City to continue with the current hosting provider and avoid costly and time-consuming migration to a new provider. The projected costs over the term of the agreement are as follows below. The Department of Public Utilities expects to transition to a cloud environment and is not included in the option years of the agreement.



The fiscal impact of this ordinance is as follows:
- The amount of funds requested: $1,572,130 over the term of the agreement
- The expenditure budget line item: 1001-14700-1110ERPSTDSTD and 6078-31000-4000524STDSTD
- New revenue generated (operational revenue, grants, if any): none
- Revenue budget line item (if any): none
- Are funds budgeted in the current fiscal year (yes/no)?: yes
- Is this a capital project (yes/no)? no
- If yes, is it new or existing (new/existing)? N/A
- What section of the City's Strategic Plan does this support:
o Excellence in Basic Services (yes/no) yes
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