1 STAFF REPORT
DATE: October 1, 2024
TO: Justin Hess, City Manager
FROM: Courtney Padgett, Interim Chief Information Officer VIA: Kevin Woodruff, Assistant IT Director – Application Services BY: Zarani Barrow, Principal GIS Analyst
SUBJECT: Approval to Enter into a Three-Year Enterprise Agreement with Environmental Systems Research Institute, Inc. for Geographical Information Systems Licensing
RECOMMENDATION
Approve a Three-Year Enterprise Agreement (EA) with Environmental Systems Research Institute, Inc (ESRI) , which will extend the City’s current use of the ArcGIS Suite of Software and Services from October 11, 2024 through October 10, 2027.
BACKGROUND
The ArcGIS suite of applications are a set of decision-making tools that are essential for asset management in the City of Burbank. The data and maps that are created by ArcGIS applications and Enterprise services are used daily by all City departments. Geographic Information System (GIS) is used by staff to manage geographical data (geospatial data), generate maps to conduct analysis, create public notifications related to City projects, and provide geospatial functionality for numerous software applications. GIS data is also used to create daily maps to identify property zoning, crime incidents, fire incidents, and manage critical underground infrastructure and City assets.
Since 2012, the Information Technology Department (IT) and Burbank Water and Power (BWP) have purchased the Small Government Term EA for ArcGIS software from ESRI, the global leader in GIS software and mapping, for three -year terms. The City’s GIS program relies solely on ESRI software. ESRI is the only software provider that meets the requirements of enterprise scalability and compatibility with similar systems in
2 neighboring jurisdictions, thereby enabling data sharing between other cities, Los Angeles County, and the State of California.
ESRI’s proposed EA aligns with the Microsoft Enterprise Licensing Agreement that currently serves the City for the purpose of licensing Microsoft software . A multi-year agreement is preferrable as it will result in cost savings for the City of Burbank.
DISCUSSION
ESRI offers different EAs to utility and government entities for the use of its software .
ESRI offers a Small Government Term EA, which includes proposed pricing based on the City’s total population. Since the City owns BWP, this plan may be utilized to license ESRI software for the utility and general City entities.
The proposed Small Government Term EA is based on population. According to the 2020 U.S. Census, the population of Burbank is 107,377 . Burbank is categorized as Program Level 4, which applies to populations between 100,001 - 125,000.
Program Level Population Baseline Annual
Fee
Total EA
Fee
1 0 – 25,000 $29,300 $87,900
2 25,001 – 50,000 $40,900 $122,700
3 50,001 – 100,000 $58,500 $175,500
4 100,001 – 125,000 $87,600 $262,800
5 125,001 – 150,000 $116,000 $350,100
6 150,001 – 250,000 $175,100 $525,300
The proposed EA cost for Program Level 4 is $87,600 per year. However, IT has negotiated reduced pricing of $63,630 per year. Approving the proposed EA would result in a total cost of $190,890 over three years. This price does not include any new licenses purchased by other departments during the term of the EA. Without implementation of the Small Government Term EA, the City would need to purchase software licenses on an as-needed basis, which could cost approximately $215,325 per year or $645,975 over a three-year period. The increase in cost is due to the increased amount of licenses the City has acquired since transitioning to an EA.
Additional benefits with the proposed EA include:
• Unlimited self-paced GIS e-Learning classes and discounted instructor-led training classes.
• Four passes to the annual ESRI User Conference.
• Access to all ESRI products covered by the proposed EA, including analytical 3 applications, giving the City the capability to add licenses as needed. • Access to software updates allowing the City to upgrade to the latest versions of ESRI products as soon as they become available.
The final EA with ESRI will integrate the final Quotation (Attachment 1), the Small Enterprise Agreement (Attachment 2), and the Master Agreement (Attachment 3).
ENVIRONMENTAL REVIEW
This a pproval has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs Section 15378.
FISCAL IMPACT
The fiscal impact for this proposal is $63,070 per year. The proposed EA will be paid annually over the three-year term, totaling $189,210. Extra licenses requested by certain departments for their daily operational GIS needs are not included in the proposed EA’s price but are offered at a reduced rate with the proposed EA at $560 per year, to be paid annually for the three -year term, totaling $1,680. The total expenditure will be $63,630 per year, to be paid annually over the three-year term, totaling $190,890.
Based on the number of ArcGIS users, the general City’s portion shall be $25,452 annually and BWP’s portion shall be $38,178. Funds have been budgeted in the Internal Service Fund 537 (Computer Equipment Replacement Fund) for the general City portion and Fund 496 (BWP Electric Fund) for the BWP portion of the EA. Extra licenses are charged back to the departments via Fund 537 rental rates. There is no impact to the General Fund.
CONCLUSION
The proposed EA renews City of Burbank access to ESRI’s world leading GIS software.
The proposed EA provides price certainty over three years while allowing the City to benefit from any technological advances made by ESRI over that same period. GIS applications are part of the critical software infrastructure for the City. Staff recommends Council approve the Small Government Term EA with ESRI for a period of three years, and authorize staff to finalize and execute the EA.
ATTACHMENT
Attachment 1 – ESRI Software Quote
Attachment 2 – Small Enterprise Agreement
Attachment 3 – Master Agreement E204 – Version February 9, 2024