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CONTRACT NO. K-1415-22: AN ENTERPRISE LICENSE AGREEMENT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC., (ESRI) TO PROVIDE SOFTWARE SUPPORT FOR THE PLANNING AND UTILITIES DEPARTMENTS IN THE AMOUNT OF $57,500 PER YEAR FOR A PERIOD OF THREE YEARS.
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BACKGROUND: In its September 8, 1992 meeting, City Council approved the purchase of Arc/Info software from Environmental Systems Research Institute, Inc. (ESRI). This software is the core development and analysis environment for the City's geographic information system (GIS). Over the years, additional licenses of ArcView, ArcEditor, ArcSDE, and ArcIMS were purchased by both GIS Services and other departments as GIS technology was integrated into more of the City's business practices. For 16 years, the City maintained the software with several Annual Software Support Agreements funded by five departments: Planning, Public Works, Police, Utilities, and Parks and Recreation. In 2008 the cost of that agreement was $46,100. In 2009, the City entered into Contract No. K-0809-36 with ESRI for a three year Small Municipal and County Government Enterprise License Agreement (ELA), which costs $50,000 per year. The ELA was renewed in August, 2012 by Contract No. K-1112-17, which increased the cost to 53,616.50 per year. This agenda item is a request that the City enter into Contract K-1415-22 with ESRI for another three year term ELA. While the software covered by the ELA is used by all City departments, the funds to purchase it have been consolidated into two departments, Planning and Utilities, to streamline administration.
DISCUSSION: The ELA includes all of the items covered by traditional Software Support Agreements and has several advantages over Software Support Agreements. One of the most valuable advantages of the ELA is the lower unit cost for software. Under a traditional support agreement, if the City wants to add a seat of ArcView, it costs $1500 per license plus $300 per year for software support. The ELA provides unlimited licensing, which gives the City the flexibility to install covered software products in additional locations without the startup cost.
During the term of our first ELA, the City added seats of ArcView and ArcInfo, which would have cost $57,000 for the initial purchase of the software and increased our annual maintenance cost under a traditional software support agreement to $56,900 per year. The ELA cost the City of Norman $70,000 dollars less than a traditional software purchase and software support agreement would have cost. Our use of ArcGIS for Desktop Basic (formerly ArcView) did not expand as rapidly during the second term of the ELA. The City's usage of ArcGIS Server software increased more than desktop software during our second term, because server software is easier to install and administer. ArcGIS Server allows the end-user to access the data with a web browser requiring less training to use GIS data.
If the City allows the ELA to lapse, we would lose access to all ESRI Software introduced since the first ELA was entered into, this includes all ArcGIS Server Software. ArcGIS Server is required for the Cityworks work order software used in the Utility Department; New World Systems, currently being implemented by the Police and Fire Departments; the external website that allows Citizens to access GIS information and aerial photography; and the internal web services that are used by Planning and Public Works to administer the development process.
The ELA is a three year contract which costs $57,500 per year and provides unlimited licensing and maintenance of all of ESRI's core GIS software products. The price has increased over the previous ELA, because the City of Norman now has a population of more than 110,000. The cost of the ELA is based on the population of the jurisdiction entering into the ELA with ESRI. This contract will lock in the ELA price for the next three years. The software products included in the ELA are as follows:
1. ArcGIS for Desktop products - Advanced, Standard, Basic
2. ArcGIS for Desktop extensions - ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager and ArcGIS Data Reviewer.
3. ArcGIS for Server-based products - ArcGIS for Server - Enterprise or Workgroup (Advanced, Standard, Basic)
4. ArcGIS for Server Extensions - ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Workflow Manager, ArcGIS Image
5. ArcGIS Engine
6. ArcGIS Engine Extensions - ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geodatabase Update, ArcGIS Network Analyst, ArcGIS Schematics
7. ArcGIS Runtime - Standard
8. ArcGIS Runtime Extensions - ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Network Analyst
Also included in the program are:
ArcGIS Online - (1) one annual subscription - program level varies by tier level
Esri Developer Network Standard - (1) one annual subscription to the Esri Developer Network Standard (EDN)
Esri CityEngine Advanced - (1) one Single Use License and (1) Concurrent Use License
Instructor-led Training - 5% discount on all instructor-led training or instructor-led online classes that are scheduled at Esri facilities and sold on a per seat basis
User Conference passes - 4 passes to each Annual User Conference valued at $1,395 each
Virtual Campus (web training) - $10,000 for virtual campus course.
Authorized Technical Support Callers - 4 authorized callers
Access to the Virtual Campus is a benefit not included in traditional Software Support Agreements. ESRI maintains an online campus that has over 100 courses to choose from. The classes range from beginner to advanced levels.
Environmental Systems Research Institute, Inc. (ESRI) is the only source of support for ArcGIS software products. Section 8-204(b)(2) of the Code of the City of Norman authorizes the City Council to waive competitive bidding for the purchase of supplies, materials, equipment, or contractual services which can only be furnished by a single dealer or have a uniform price wherever bought. Funds for the Enterprise License Agreement are available in the in the following Maintenance & Repair Services accounts:
$52,068 in Account 010-4050-419.42-26 in Planning/GIS Services Division
$5,432 in Account 031-5530-461.42-26 in Utilities/Administration.
RECOMMENDATION: Staff recommends City Council approve Contract No. K-1415-22 Enterprise License Agreement between the City of Norman and Environmental Systems Research Institute, Inc. and authorize the payment for the first year of the contract in the amount of $57,500.