CA Review AZ
Meeting Date: Oct. 8, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Maria Callander, Information Technology Director [email protected], 442-339-2454
David van Gilluwe, Business Intelligence & Analytics Manager [email protected], 442-339-5985
Subject: Amendment No. 1 to the Agreement with ESRI, Inc. for the Expansion of the Enterprise Advantage Program Subscription
Districts: All
Recommended Action
Adopt a resolution authorizing the City Manager or designee to execute Amendment No. 1 to the existing two-year agreement with ESRI, Inc. for the expansion of the ESRI Enterprise Advantage Program subscription ending November 28, 2025, for a new not-to-exceed amount of $696,500.
Executive Summary
The city uses ESRI’s software suite, including ArcGIS Pro, ArcGIS Online and ArcGIS Enterprise, as key systems and tools that enable city staff to effectively create, analyze and visualize geographic data. The ESRI Enterprise Advantage Program additionally provides support, guidance and training for organizations that use ESRI's products and services.
Many of the city’s internal and external data products, maps and interactive mapping products were developed with a combination of in-house staff work and support from the ESRI Enterprise Advantage Program.
In Aug. 2023, the City Council authorized a two-year agreement for the ESRI Enterprise Advantage Program with ESRI (“Agreement”) (Resolution No. 2023-225).
The city is currently working to replace the outdated enterprise asset management system it relies on to track water, wastewater and stormwater pipes. This project depends on ESRI products. Staff need additional resources to complete the project and bring the city’s utility mapping and asset tracking up to current technology.
Staff are asking for City Council to approve an amendment to the ESRI Enterprise Advantage Program subscription to add additional learning and service credits for fiscal year 2024-25. This entails a one-time $359,100 increase in the cost of this subscription, with a new total overall Agreement cost of $696,500 over the two years of the Agreement term.
Oct. 8, 2024
Item #3 Page 1 of 9
Staff will then use those service credits to develop additional data products the city can use in monitoring underground utility lines to prevent leaks and protect natural resources. The credits will also support staff’s efforts to create more visualizations and applications that increase public transparency in city operations.
The amendment requires the City Council’s approval under Carlsbad Municipal Code Section
3.28.060(D)(5) because the Agreement costs more than $100,000 per year.
Explanation & Analysis
Overview
ESRI’s software products enable users to create and share interactive maps, conduct spatial analyses, integrate data from various sources and make informed decisions based on geographical information.
ESRI’s Enterprise Advantage Program provides access to ESRI's solutions design team as well as training opportunities and guided learning through technical project assistance and collaboration. The program also provides access to a supportive community of GIS experts, developers and industry leaders. Subscribers can participate in user forums, discussion groups and webinars, where they can exchange ideas, share best practices and seek guidance from peers. This community engagement encourages collaboration, problem-solving and innovation in the GIS field.
Agreement timeline
• The City Council approved ESRI as a sole source software and services provider, that is, the only supplier that can provide the commodity, technology and/or perform the services required (Resolution No. 2000-130). ESRI is also the sole provider of the ESRI Enterprise Advantage Program, which provides technical project support, learning and service for the platform.
• The city has renewed its subscription to the ESRI software platform every year since. • The city entered into a subscription agreement with ESRI for the Enterprise Advantage Program in 2018. The program's technical support, learning, and services have allowed the city to accelerate the completion of projects, develop in-house skills that expand the city’s use of the platform, and complete complex projects that would not have been possible without the program.
• Beginning in 2023, the subscription cost for the Enterprise Advantage Program exceeded $100,000, an amount that necessitates the approval of the City Council. It also required a new subscription agreement to replace the one approved in 2018.
Proposed amendment
The city is currently working to complete the replacement of an enterprise asset management system. This system covers all public works assets and service information including water pipes, wastewater pipes, stormwater pipes and other additional city infrastructure for parks.
This project depends on ESRI products for:
• Identity management and user authentication
• Integrated maps to display underground utility assets • Asset locating
Oct. 8, 2024
Item #3 Page 2 of 9
The proposed amendment to this Agreement will enable city staff to engage ERSI technical support in its work to upgrade the outdated stormwater and wastewater network databases, allowing for the smooth implementation and operation of the enterprise asset management system. ESRI’s support for this work will expedite the upgrades to finish the project on schedule and on budget.
The proposed amendment also includes additional ESRI Advantage Program Assistance for open data applications. The city uses GIS solutions to create data visualizations for public-facing dashboards, improving public transparency. The city recently used ESRI to create its Economic Development Dashboard.
Further, the proposed amendment and resolution provide an administrative correction as Resolution No. 2023-225 incorrectly identified the Agreement expiration date as Aug. 31, 2025, which has been corrected to Nov. 28, 2025.
Fiscal An alysis
The one-time cost to the ESRI Enterprise Advantage Program with Amendment No. 1 will not exceed $359,100 for the remaining term ending Nov. 28, 2025. The new overall total of the two-year Agreement will be $696,500.
Funding for the annual payment for the subscription and additional credits is included in the fiscal year 2024-25 Information Technology Operating Budget and the fiscal year 2024-25 Strategic Digital Transformation Investment Program.
After the expiration of the current Agreement on Nov. 28, 2025, it is anticipated a new agreement will need to be executed to cover ongoing costs for the ESRI Enterprise Advantage Program in an estimated amount of $168,700 per year. Of the estimated $168,700 in ongoing costs, $98,700 is annually included in the Information Technology Operating Budget. However, staff anticipate that the remaining ongoing costs in an estimated amount of $70,000 will need to be added to the Information Technology Operating Budget for fiscal year 2025-26. If the city decides to execute a new agreement to continue the ESRI Enterprise Advantage Program at the current level, the Information Technology Department will request an estimated $70,000 in the fiscal year 2025-26 budgeting process.
Oct. 8, 2024
Item #3 Page 3 of 9
ESRI Enterprise Advantage Program
Funding source FY 2023-24 FY 2024-25
Paid Unpaid Total
Ongoing costs
Information Technology Operating Budget $98,700 $98,700 $197,400 Strategic Digital Transformation Investment Program
GIS Support Project* $70,000 70,000 140,000
Total ongoing costs $168,700 $168,700 $337,400
One-time costs
Strategic Digital Transformation Investment Program
Civic engagement and open data $102,600 $102,600
Strategic Digital Transformation Investment Program
Enterprise asset management $256,500 $256,500
Total one-time costs $359,100 $359,100
ESRI Advantage Program cost $168,700 $527,800 $696,500
* If the program is continued, the cost will be included in the fiscal year 2025- 26 Information Technology Operating Budget Operating Budget request during the annual budget process.
Next
Steps
Should the City Council approve the ESRI Enterprise Advantage Program subscription Amendment No. 1, city staff will strategically use the support it provides to complement the city’s development of data products and expedite the implementation of underground utility network infrastructure tracking.
Environmental Eval uation
This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council resolution
Oct. 8, 2024
Item #3 Page 4 of 9
RESOLUTION NO. 2024-223
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGN EE TO EXECUTE AMENDMENT NO. 1 TO THE EXISTING TWO-YEAR AGREEMENT WITH ESRI, INC. FOR THE EXPANSION OF THE ESRI ENTERPRISE ADVANTAGE PROGRAM SUBSCRIPTION ENDING NOVEMBER 28, 2025, FOR A NEW NOT-TO-EXCEED AMOUNT OF $696,500
WHEREAS, the City of Carlsbad uses a number of ESRI, Inc. products and services, which it currently purchases under the ESRI Master Subscription Agreement, which was approved by City Council {Resolution No. 2000-130); and
WHEREAS, since 2018, the city has maintained a subscription tq the ESRI En_terprise Advantage Program, allowing the city to fully utilize its ESRI, Inc. products and services; and WHEREAS, on Aug. 22, 2023, the city entered into its most recent two-year agreement with ESRI, Inc. for the Enterprise Advantage Program for a total cost of $337,400 ("Agreement") (Resolution No. 2023-225); and
WHEREAS, Resolution No. 2023-225 incorrectly identified the Agreement expiration date as Aug.31, 2025;and
WHEREAS, Amendment No. 1 to the Agreement correctly identifies the Agreement expiration date as November 28, 2025, and clarifies the Agreement term as November 29, 2023 - November 28, 2025;and
WHEREAS, Amendment No. 1 also provides for the purchase of 525 Learning and Service Credits in an amount of $359,100 (Attachment A) for Fiscal Year 2024-2025; and WHEREAS, the new total cost of the Agreement will not exceed $696,500; and WHEREAS, the budget to procure the Amendment No. 1 payment for the expansion of the subscription agreement is available in the Strategic Digital Transformation Investment Program ("SDTIP") project funds; and
WHEREAS, the funding for the subscription's future years will be considered on an annual basis in the Information Technology Department's annual budget requests.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
Exhibit 1
Oct. 8, 2024 Item #3 Page 5 of 9
2. That the City Manager, or designee, is authorized to execute Amendment No. 1 (Attachment A) to the Agreement with ESRI, Inc., which corrects the Agreement expiration date to Aug. 31, 2025, clarifies the Agreement term as November 29, 2023 - November 28, 2025, and provides for the expansion of the ESRI Enterprise Advantage Program at a cost of $359,100 with a new not-to-exceed Agreement total of $696,500.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of October, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
Oct. 8, 2024 Item #3 Page 6 of 9
fk
Docusign Envelope ID: 4D2E6617-F3BE-425E-A4AB-D615F5FC1389 Amendment I to
Agreement No. 00322748.0
Attachment A
AMENDMENT NO. l
FOR
ESRJ AD VANT AGE PROGRAM
This AMENDMENT is made and entered into as of the date fully executed by and between the City of Carlsbad ("City") and Environmental Systems Research Institute, Inc. ("Esri") (collectively, "the Parties") and amends the Agreement.
RECITALS
WHEREAS, the Parties entered into Agreement No. 00322748.0 ("Agreement") for the Advantage Program in the amount of $337,400 per Esri Quote Q-502781, dated August 7, 2023 (Resolution No. 2023-225); and
WHEREAS, Resolution No. 2023-225 incorrectly identified the Agreement end date as August 31, 2025; and
WHEREAS, the Parties desire to correctly identify the Agreement end date as November 28, 2025, and clarify the Agreement tenn as November 29, 2023 - November 28, 2025 with this Amendment No. I; and
WHEREAS, the Parties also desire to amend the Agreement with this Amendment No. I to purchase an additional 525 Learning and Services Credits as quoted in Q-519027, dated August 14, 2024, which is attached hereto as Attachment I.
NOW THEREFORE, the Parties agree as follows:
AMENDMENT TO AGREEMENT
I. The price for the additional 525 Learning and Services Credits is $359,100. The total cost of the Agreement is amended not to exceed $696,500.00.
2. 375 Learning and Services credits will be applied towards Cartegraph support. 150 Learning ervices Credits will be applied towards Open Data Apps and lnhiatives.
Signature: --1.----,,,,L:..-�:::.._ ___ _
Printed Name:� (:.H4t)C)\C,�
Title: e,_l\'y' "1A�&E:.IZ
Date: \
\ PCf 2.4
APPROVED AS TO FORM:
CINDIE K. McMAHON, City Attorney
BY: 4�Ji�
Deputy City Attorney
ENVIRONMENTAL SYSTEMS RESEARCH
INSTITUTE, INC. (Esri)
Signature: Sf� &fw/U,\,
Printed Name: 5tacy McEwan----------
Title: Assoc Di rector, PS contracts
10/2/2024 Date: _____________ _
ATTEST
SHERRY FRE
'.
S_tN�ER, City Clerk
By:fb-� �
Deputy City Clerk
Oct. 8, 2024 Item #3 Page 7 of 9
--
Docusign Envelope ID: 4D2E66! 7-F3BE-425E-A4AB-D615F5FC13B9 00322748.0 Attachment 1
THE
SCIENCE
OF
WHEIIE"
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: (909) 793-2853
DUNS Number: 06 -313-4175 CAGE Code: 0AMS3
To expedite your order, please attach a copy of
this quotation to your purchase order.
Quote is valid from: 4/1/2024 To: 9/28/2024
Cartegraph Support
Material
97720
Qty
3 Tenn
Year1
Quotation # Q-519027
Date: August 14, 2024
Customer# 1697 Contract#
City of Carlsbad
Innovation and Economic Development
1635 Faraday Ave
Carlsbad, CA 92008-7314
ATTENTION: June Acosta
PHONE: (760) 602-2433
EMAIL: [email protected]
Unit Price
$68,400.00
Total
$205,200.00
Esri Advantage Program: Additional 100 Learning and Service Credits. This product cannot be purchased without an existing Advantage Program subsc ription.
103032 Year1 $34,200.00 $34,200.00
Esri Advantage Program: Additional 50 Learning and Service Credits:·This product cannot be purchased without an existing Advantage Program subscription.
187082 Year1 $17,100.00 $17,100.00
Esri Advantage Program: Additional 25 Learning and Service Credits. This product cannot be purchased without an existing Advantage Program subscription.
Open Data Apps and Initiatives
Material
97720
Qty Tenn
Year 1
Unit Price
$68,400.00
Total
$68,400.00
Esri Advantage Program: Additional 100 Learning and Service Credits. This product cannot be purchased without an existing Advantage Program subscription.
103032 Year1 $34,200.00
Esri may charge a fee to cover expenses refated to any customer requirement to use a proprietary vendor management, procurement, or invoice program.
For questions contact:
Natalie Carter
Email:
[email protected]
Phone:
(909) 793-2853 x7419
$34,200.00
The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/contenUdam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri's standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other pul]_ose 't)(ith_Qut_cqnsent from Esri. Delivery is FOB Origin for customers located in the USA. , _ ---• -1 .___ ""b.._ V V J
CARTERN This offer is limited to the terms and conditions incorporated and attached herein. esri·I
1 ... ,-c;111 'oJ I I
Docusign Envelope ID: 4D2E6617-F3BE-425E-A4AB-D615F5FC13B9 . ····-··-···-··-. �-. ·.:,·--···-··- No. 00322748.0 Attachment 1
•
•
1 THE
esr.- :.::::�
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: (909) 793-2853
DUNS Number: 06-31 3-4175 CAGE Code: 0AMS3
To expedite your order, please attach a copy of
this quotation to your purchase order.
Quote is valid from: 411/2024 To: 9/28/2024
Material Qty Tenn
Quotation # Q-519027
Date: August 14, 2024
Customer# 1697 Contract#
City of Carlsbad
Innovation and Economic Development
1635 Faraday Ave
Carlsbad, CA 92008-7314
ATTENTION: June Acosta
PHONE: (760) 602-2433
EMAIL: [email protected]
Unit Price Total
Esri Advantage Program: Additional 50 Learning and Service Credits. This product cannot be purchased without an existing Advantage Program subscription.
Subtotal:
Sales Tax:
Estimated Shipping and Handling (2 Day Delivery):
Contract Price Adjust:
Total:
Subject to existing agreement# 00322748.0
Orginal Agree.ment -August 7, 2023
Amendment No. 1
Total Agreement
1. An additional four (4) units of Material# 97720 -Additional 100 Learning and Services Credits is added at a Unit Price of $68,400 (Standard 2024 Rate).
2. An additional (2) units of Material # 103032 -Additional 50 Learning and Services Credits is added at a Unit Price of $34,200 (Standard 2024 Rate).
3. An additional (1) unit of Material# 187082 -Additional 25 Learning and Services is added at a Unit Price of $17,100 (Standard 2024 Rate).
4. The Total Cost of the Agreement is amended to not exceed $696, 500. $359,100.00
$0.00
$0.00
$0.00
$359,100.00
$337,400.00
359,100.00
$696,500.00
Payment for the additional Credits is due within thirty (30) days upon execution of this Amendment 1 to Q-502781.
All other terms and conditions remain the same
Esri may charge a fee to cover expenses related to any customer requirement to use a prop<ietary vendor management, procurement, or invoice program For questions contact:
Natalie Carter
Email:
[email protected]
Phone:
(909) 793-2853 x7419
The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/leqal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri's standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings. Acceptanc e of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other pur.12ose �th.211.tsonsent from Esri. Delivery is FOB Origin for customers located in the USA. ,_ _ \,J',._,\.o u, '--- IL'-TTl TT.J -. UF,'- .JV .J
CARTERN This offer is limited to the terms and conditions incorporated and attached herein.
T