SR - AGR-4384.A.1 - UNICORN SOFTWARE LICENSE AND PURCHASE AGREEMENTm• d
O1YTY �
AGENDA ITEM
Meeting Da Ju ne 10, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Yolanda Moreno VA-1
Library Servicesirector
ReviewedNerified By:
City Manager
Finance Dire to
To Be Presen y:
X Cons Calendar
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Cmtes _
Public Hrgs
Admin Reports
Plan/Environ
1. SUBJECT
First Amendment to SirsiDynix Migration to Unicorn Software License and Purchase Agreement
(AGR #4384) for maintenance and support of SirsiDynix online library catalog software.
2. SUMMARY
In 2003, the City Council authorized an agreement with SirsiDynix for online library catalog
software licensing and annual maintenance and support. This Amendment extends the agreement
for a five -year period through June 30, 2019.
3. RECOMMENDATION
Approve the amendment and authorize the Mayor and City Clerk to execute on behalf of the
City.
4. FISCAL IMPACT
Funds are available in account # 100.2004.51423.19302 for FY 14 -15. The First Amendment
provides a $15,705 savings in increases to maintenance costs over the next five years.
5. STRATEGIC PLAN GOAL(S)
2a. Expend fiscal resources responsibly.
ITEM &'/ 1 6/10/14
6. GENERAL PLAN IMPLEMENTATION
Cultural Resources Element Goal 5.0 Meet the educational, cultural, civic, information,
recreation, business, and life -long learning needs of residents through the provision of library
resources.
Policy 5.1 Continue to expand, coordinate and modernize the City's public library system,
ensuring that it becomes the premier information and learning resource for the City to meet the
needs of Orange's growing and diverse population.
7. DISCUSSION and BACKGROUND
The City entered into a Migration to Unicorn Software License and Purchase Agreement with
SirsiDynix in November, 2003, at a cost of $335,000 for an online catalog system that enables
checkout of library materials to residents. Along with software licenses, that agreement included
a savings for annual maintenance and support of the software for the first five years of this
agreement. It has been close to 11 years since the execution of the original agreement and
maintenance and support costs have been increasing on an industry standard of seven percent
each year.
SirsiDynix is the sole source for maintenance and support of its software. This software is key to
on -going operation of the Library's current cataloging system. The average lifespan of online
library catalog software is five to seven years. The current software continues to operate
effectively and remains viable because SirsiDynix provides software updates as part of its
maintenance program. SirsiDynix has a very strong position in the marketplace (3,600 customers
representing 23,000 libraries in 70 countries) and considering their planned software
development path, staff sees no downside to entering into this long term agreement. The Library
maintained its previous system for 15 years before purchasing new software from SirsiDynix in
2003, thus a long term commitment to one vendor is not unusual.
In FY 13 -14, Library budgeted $55,809 for SirsiDynix for software maintenance and support.
Without this Amendment beginning in FY 14 -15 the amount budgeted will be $59,715 and will
continue to receive a minimum increase of seven percent each year thereafter:
ITEM 2 6/10/14
With this First Amendment beginning in FY 14 -15 the amount budgeted will be $55,809 (0%
increase) and will have a 2.9% increase cap for the four - remaining years. Saving $15,705 over
the term of the agreement:
5 -Year Maintenance Costs w/
Comparison of 5 -Ye Mai Cost
90,000.00
80,000.00
70,000.00
60,000.00
0.00
, s ti' s ti t D �R s h
J �� .elk , l ea
F
Staff Recommendation
Without an agreement the City has not had the ability to cap the annual maintenance and support
costs. Therefore, during the last five years the City has experienced annual increases in the area
of 7 %. There is currently no funding available to purchase new software nor do we anticipate
that such funding will be available within the next five - years. Therefore, changing vendors is not
an option at this time. Staff has been negotiating with SirsiDynix to amend this agreement and to
develop a long -term maintenance plan that meets the City's needs. SirsiDynix is very interested
in retaining the City of Orange Public Library as a valued customer and has agreed to this five -
year maintenance agreement that includes a significant discount over their normal pricing
structure. Staff is recommending approval of this First Amendment to the current agreement in
an effort to cap increase for the next five -year period.
ITEM 3 6/10/14
�— Agreement
50,000.00
1 year @ 0% then
40,000.00
4 years @ 2.9%
30,000.00
- No agreement
20,000.00
with 7% annual
uplift assumed
10,000.00
0.00
, s ti' s ti t D �R s h
J �� .elk , l ea
F
Staff Recommendation
Without an agreement the City has not had the ability to cap the annual maintenance and support
costs. Therefore, during the last five years the City has experienced annual increases in the area
of 7 %. There is currently no funding available to purchase new software nor do we anticipate
that such funding will be available within the next five - years. Therefore, changing vendors is not
an option at this time. Staff has been negotiating with SirsiDynix to amend this agreement and to
develop a long -term maintenance plan that meets the City's needs. SirsiDynix is very interested
in retaining the City of Orange Public Library as a valued customer and has agreed to this five -
year maintenance agreement that includes a significant discount over their normal pricing
structure. Staff is recommending approval of this First Amendment to the current agreement in
an effort to cap increase for the next five -year period.
ITEM 3 6/10/14
8. ATTACHMENTS
• First Amendment to Migration to Unicorn Software License and Purchase Agreement
with City of Orange Public Library
• Appendix A — Long Term Agreement between City of Orange Public Library and
SirsiDynix
ITEM 4 6/10/14