$8.5 million in contracts up for vote by Modesto council

The Modesto City Council on Tuesday could approve more than $8.5 million in contracts for an accounting software system and a long-awaited bus maintenance facility.

The city wants to replace the software systems in the finance and human resources departments with a comprehensive system capable of planning, controlling and accounting for the city's financial activities.

City staff recommends awarding an $893,110 contract to Oracle America Inc. for an Enterprise Resource Planning System; an amended licensing agreement with Oracle would cost an additional $196,485 a year.

A contract with Illinois-based Applications Software Technology, for implementing the software system, would cost the city almost $4.65 million. The council also could approve $1.65 million for additional project expenses.

According to a staff report, Oracle is offering a 75 percent discount on its software costs and 60 percent break on database licensing fees because of the economic downturn. The discounts are set to expire May 31, staff said.

In another item, the city could spend $1.2 million for a firm to manage construction of the long-awaited bus maintenance facility.

The council will consider approving the contract with VSCE Inc. of Oakland, which would oversee construction to replace the 92-year-old maintenance shop at Eighth and Washington streets.

The project has been stuck in first gear since the city approved a design concept in 2000, but it is nearing the start of construction. A major delay occurred in 2006 when architects with a $590,000 contract to design the facility asked for an extra $354,000 to complete the job.

The city canceled the contract and last year approved a $716,112 contract for another firm to finish the design.

The total estimated cost for the bus facility is $17.6 million, compared with the estimate of $9.5 million in 1998.

The maintenance yard will include a 34,000-square-foot steel maintenance building, a bus parking area, fuel station, bus wash and employee parking. Seventy transit vehicles will be serviced there.

The city hopes to complete the facility in fall 2011.

Bee staff writer Ken Carlson can be reached at or 578-2321.

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