TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Oracle License Fee Status Update
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving a status update on Oracle license expansion and annual support fee.
Body
BUDGETARY/FISCAL IMPACT:
The new Oracle PeopleSoft license and support fees expansion of 2018 will be covered by 2018 operating budget.
BACKGROUND/RATIONALE:
The Oracle PeopleSoft enterprise software is a business-critical application that is used by every
District employee. PeopleSoft HR represents all Human Resources related modules and the license and annual support fees are based on AC Transit's employee count. PeopleSoft Finance represents all Finance associated modules and the license and annual support fees are based on AC Transit's annual operating budget.
In 2007, as a result of Board approval, PeopleSoft licenses were purchased using the Oracle License and Service Agreements (OLSA) V071807. The total amount paid for licenses in 2007 was $1,027,708. The license fee for PeopleSoft HR was based on 2250 employees, and PeopleSoft Finance was based on the District's $300 million operating budget.
When District growth results in more employees or revenue - based on the OLSA agreement, additional license and relevant support fees must be purchased to expand the so-called 'License Base.'
In 2012, District reported over $300 million in operating budget. To be compliant, District purchased one increment of $30 million for the operating budget, set out in the OLSA, covering up to $330 million in the operating budget. This expansion also increased annual support fees by approximately $6,500.
In 2015, District reported 2040 employees and $379.5 million in the operating budget. PeopleSoft HR licenses were in compliance with terms and conditions of the OLSA Agreement, however, PeopleSoft Finance licenses were out of compliance due to Operating Budget increase. In order to be compliant with the OLSA, D...
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