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File #: 25-635    Version: 1 Name:
Type: Consent Item Status: Agenda Ready
File created: 6/25/2025 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 7/21/2025 Final action:
Title: SUBJECT: Approval of Three One-Year Annual Renewal Extensions with ESO Solutions, Inc. for a Records Management System in the Amount of $36,130.94 REPORT IN BRIEF Considers approving to waive the competitive bidding requirement pursuant to Merced Municipal Code section 3.04.210 and approve the extension of an existing agreement with ESO Solutions, Inc. for a records management system software program for three one-year renewals in the amount of $36,130.94 and RECOMMENDATION City Council - Adopt a motion: A. Approving to waive the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code pursuant to annual service or supply agreement and purchases necessary for standardization on particular types of equipment; and, B. Approving three one-year annual renewal subscriptions with ESO Solutions, Inc. for $36,130.94; and, C. Authorizing the City Manager to execute the necessary documents.
Attachments: 1. Subscription Agreement
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report Prepared by: Janet German, Management Analyst, Fire Department

 

Title

SUBJECT: Approval of Three One-Year Annual Renewal Extensions with ESO Solutions, Inc. for a Records Management System in the Amount of $36,130.94

 

REPORT IN BRIEF

Considers approving to waive the competitive bidding requirement pursuant to Merced Municipal Code section 3.04.210 and approve the extension of an existing agreement with ESO Solutions, Inc. for a records management system software program for three one-year renewals in the amount of $36,130.94 and

 

RECOMMENDATION

City Council - Adopt a motion:                     

 

A.  Approving to waive the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code pursuant to annual service or supply agreement and purchases necessary for standardization on particular types of equipment; and,

 

B.  Approving three one-year annual renewal subscriptions with ESO Solutions, Inc. for $36,130.94; and,

 

C.  Authorizing the City Manager to execute the necessary documents.

 

Body

ALTERNATIVES

1.  Approve as recommended by staff; or

2.  Refer back to staff with direction; or

3.  Deny

 

AUTHORITY

Article II and III of Title 3, Chapter 3.04, of the Merced Municipal Code relating to purchases of equipment and services (Section 3.04.080 and 3.04.120) and waiving of the competitive bidding requirements (Section 3.04.210).

 

CITY COUNCIL PRIORITIES

As provided for in the 2025-26 Adopted Budget.

 

 

DISCUSSION

Background

 

California Health and Safety Code (HSC) §13110.5 mandates that each fire department operated by the state, a city, county, fire protection district, organized fire company, or other public or private entity which provides fire protection, shall furnish information and data to the Office of the State Fire Marshal relating to each fire which occurs within its area of jurisdiction.

 

To meet the above endeavors, the Merced Fire Department has continuously utilized FireHouse Software for its records management needs since 2003 until it was acquired by ESO Solutions, LLC in 2017. Currently, the department utilizes: Fire Incidents CAD Integration; ESO Fire Incidents; ESO Inspections; ESO Properties and ESO Permits.  Throughout this time period, the department has entered into various subscription agreements which contain an automatic renewal clause, which ESO will not remove. The agreement does contain a 60-day cancellation clause, which the department has exercised and eliminated various modules. At the end of three years, the Fire Department returns to City Council and requests their approval to extend the agreement.

 

The Fire Department desires to continue utilizing ESO’s records management software.  The subscription agreement renews automatically with a 3% increase annually and costs would be as shown below:

 

Date

Comments

Annual Cost

Cumulative Cost

Previous Payments to ESO Solutions, LLC (2018-2024)

Previous Payments to ESO Solutions, LLC (2018-2024)

 

$102,171.86

10/15/25

Recommending 3 Year Renewal with 3% Increase. PREPAYMENT FOR YEAR 1

11,689.46

$113,861.32

10/15/26

PREPAYMENT FOR YEAR 2

12,040.14

$125,901.46

10/15/27

PREPAYMENT FOR YEAR 3

12,401.34

$138,302.80

TOTAL 3 YEAR COST

Recommended Renewal Period Before Returning to Council for Approval in 2028

36,130.94

 

 

The term of the agreement begins on October 15 and automatically renews annually unless written notice is provided at least 60 days prior to that date.

 

To continue to utilize these services for three additional one (1) year renewal requires City Council’s approval for additional expenditure authority of $36,130.94, totaling $138,302.80. As the total value of the contract, including this recommendation, exceeds the bid threshold under municipal code section 3.04.120 this requires council approval.

 

In addition to requiring the expenditure authority staff is seeking to waive the competitive bidding requirements as the City already utilizes the software from ESO.  The municipal code allows for waiving the competitive bid for standardization on particular types of equipment. As ESO is already integrated with the Police Department’s Software, we recommend continuing using this software to provide continuity of services with the least amount of disruption.

 

Justification for Waiving of Competitive Bidding Process and Standardization

 

ESO provides software maintenance for all the Fire Department’s RMS modules: Fire incidents, inspections, and properties, through the existing Master Subscription and License Agreement. The software has one-year term renewal with an annual 3% increase on renewal. The contract auto renews annually unless either party cancels within a stipulated time frame. The Fire Department will return to Council prior to three years from the contract date to apprise council and seek their approval prior to auto renewing the contract prior to renewal in Fiscal Year 28/29.

 

IMPACT ON CITY RESOURCES

Funding is available in the FY 25/26 adopted budget. Future years funding for this agreement will be budgeted with the annual budget process and contingent upon City Council budget approval.

 

ATTACHMENTS

1.  Subscription Agreement