Report Prepared by: Michael Machado, GIS Coordinator - Information Technology Department
Title
SUBJECT: Approval to Authorize the City Manager to Execute an Agreement with Esri for a Three (3) Year Term for Geographic Information Systems and Mapping Software, in the Total Amount of $192,000 with an Additional $19,200 Contingency for Additional Services, Software, and Maintenance
REPORT IN BRIEF
Considers approving a three (3) year contract with Esri for Geographic Information Systems (GIS) mapping software, licensing, services, and maintenance in the amount of $192,000 with an additional $19,200 contingency for additional services, software, and maintenance.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code for the Sole Source Purchase of software licenses and maintenance; and,
B. Approving the three (3) year term with Esri for GIS software, licensing, services, and maintenance in the amount of $192,000 with an additional $19,200 contingency for additional services, software, and maintenance; and,
C. Authorizing the City Manager to execute the necessary documents; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Refer to staff for further evaluation: or,
3. Deny
AUTHORITY
Article III of Title 3, Chapter 3.04, Section 210 of the Merced Municipal Code relating to Exemptions from competitive bidding; the Sole Source Purchase of software licenses and maintenance.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
History
On July 19th, 2021, City Council approved a three (3) year term with Esri in the amount of $165,000 at an annual cost of $55,000 per year. The current agreement with expire on October 11, 2024.
Background
GIS is a suite of software used for gathering, managing, and analyzing spatial data using Geographic methods. There are various uses for GIS. These include, but are not limited to:
• Mapping: Creating detailed and accurate maps for various purposes. These include location maps, urban planning, and asset management.
• Spatial Analysis: Analyzing spatial relationships and patterns, such as determining the best location for a new Fire Station or understanding patterns in crime.
• Routing: Can use spatial analytical tools to route to various locations given and address. This can be used with public safety to route or dispatch emergency calls.
• Urban Planning: Assisting in planning and development of urban areas by analyzing land use, infrastructure, and community needs.
• Disaster Management: Preparing for and responding to natural disasters by identifying risk areas, planning evacuation routes, and coordinating emergency response.
• Data Collection: Gathering geographic data from various sources, including satellite imagery, field surveys using mobile apps, and existing maps.
• Data Visualization: Creating maps and other visual representations of spatial data to present to staff and boards.
City GIS is integrated in the daily operations performed by various City departments. Some examples include the tracking of routine and required maintenance of City assets by Public Works, tracking inspections and flushing of fire hydrants by Fire, providing information to police officers and detectives in the field and in the office, and providing better information to City staff pertaining to various assets and properties characteristics that are within the city.
Furthermore, GIS is a key component in the City’s new Enterprise Resource Planning (ERP) system known as Tyler. GIS is integrated within various ERP modules, and has become the authoritative dataset for addresses, streets, city owned assets, and assessment parcel information used within the ERP system. Thus, the Esri SGEA has allow for the flexibility to expand the environment for no additional cost to ensure these datasets are updated in efficient and timely manner.
Contract & Benefits
Esri allows a customer to commit to a set fee for a specified period (three (3) years) in exchange for a bucket of software, licensing, services, and maintenance.
The new term will be for (3) years and at a total cost of $192,000. The new contract is $27,000 more than the previous contract. Although, the increase is significant, this still provides the best value for software, licensing, services, and maintenance with Esri.
A major benefit is that it is more cost effective. For example, if the city were to not renew, but keep all its current Esri environment, the annually renewal cost would be over $200,000; over three years the cost would be over $600,000. Comparatively, the total cost of the Esri SGEA over the three (3) year agreement term is $192,000. The City would realize a savings of over $400,000 over the three (3) year period.
Additionally, the contract will offer a number of other benefits. These include a considerable reduction in administrative costs, providing maintenance on all Esri software deployed under the agreement, offering complete flexibility to deploy software products when and where needed, providing a GISMaster91discount for most additional Esri products, and lastly increasing collaboration between City departments by providing greater access to data across all City divisions.
Furthermore, ArcGIS Business Analyst Online (BOA), a demographic mapping software helps staff identify under-performing markets, pinpoint the right growth sites, find where to target customers, and share analysis as accurate infographic reports and dynamic presentations. Economic Development has seen the greatest benefit from BOA. They can easily create and pull data for trade shows to help attract potential business partners to the City. Additional analytics provided are consumer profiling, market potential, sales forecasting, drive time, and trade area rings. Additionally, one can perform demographic analysis at facilities and retail site selection, create trade areas around a location, and identify a market for your products or services.
Wavier
Esri is the sole source provider of GIS software of all U.S. domestic Small Municipal and County Government Enterprise Agreements (see Attachment 3). As such, staff is requesting waiving the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code for the Sole Source Purchase of software licenses and maintenance.
IMPACT ON CITY RESOURCES
Funding for the first year of the agreement has been included in the FY 2024/2025 adopted budget under Fund 7008-Support Services Information Technology Division. Year two and three of the contract cost will be budgeted during FY2025-26 and FY2026-27 annual budget process.
ATTACHMENTS
1. Enterprise License Agreement & Price Quote
2. Sole Source Letter