City Council
Report
City Council Meeting: September 9, 2025
Agenda Item: 4.K
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To: Mayor and City Council
From: Feroz Merchhiya, Chief Information Officer, Information Services Department Subject: Approval of Agreement with Environmental Systems Research Institute, Inc. (ESRI) for Geographic Information System (GIS) Software and Services Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute an agreement with Environmental Systems Research Institute, Inc. (Esri) for ArcGIS software and services, for the Information Services Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section
2.24.250 (b) and is for an amount not to exceed $198,990 (including a $18,090 contingency) for an initial three-year term, with one additional three-year renewal option on the same terms and conditions for a total amount not to exceed $397,980 over a six-year period (including a $36,180 contingency), with future year funding contingent on Council budget approval.
Summary
Staff recommends that the City Council authorize the City Manager to negotiate and execute a new agreement with Environmental Systems Research Institute, Inc. (Esri) for Geographic Information System (GIS) software and support services. GIS supports critical city functions such as land use planning, infrastructure and utility management, public safety, emergency response, and community engagement. The proposed agreement will cover an initial three-year term in an amount not-to-exceed amount $198,990 (including a 10% contingency of $18,090), with one additional three-year renewal option under the same terms for a total contract not to exceed amount of $397,980 over six years. The proposed cost reflects a continuation of the City’s 2 of 4
historical costs for this software. Annual increases have remained modest and in line with broader software market trends. Future year funding is contingent on Council budget approval.
Discussion
The City has relied on Esri’s ArcGIS platform since 1993, making it a foundational component of the Geographic Information System (GIS). Deeply integrated into City operations, GIS supports critical functions such as land use planning, infrastructure and utility management, public safety, emergency response, and community engagement.
City departments use GIS to conduct zoning and permit reviews, track property-related data, and visualize field operations like street sweeping and refuse collection. Esri tools enable the development of applications and dashboards that provide staff, leadership, and the public with real-time data visualizations, including crime statistics, evacuation zones, and community indicators. These tools improve transparency and access to information.
GIS also powers the City’s public-facing web applications and open data platforms, giving residents, businesses, and stakeholders access to zoning maps, project updates, neighborhood data, and environmental resources. Esri is the sole provider of the ArcGIS platform and remains the dominant GIS software vendor in the public sector. Its widespread use among local and regional agencies enhances the City’s ability to collaborate and share data across jurisdictions. Continued use of Esri ensures system compatibility, preserves regional data-sharing capabilities, and supports critical organizational functions.
The current agreement with Esri expires on October 17, 2025. Executing a new agreement will preserve continuity and prevent disruptions to essential City systems and services. Given the City’s long-term investment in Esri, its deep integration into essential workflows, and its central role in both daily operations and strategic initiatives, continuing this relationship is the most reliable and cost-effective option.
Vendor Selection
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Exception to Competitive Bidding
Staff recommends Esri to furnish and provide enterprise Esri licenses, including product support and training as an exception to competitive bidding per Muni Code 2.24.250 (b), as competition does not exist because only Esri possesses the unique ability or capability to meet the particular requirements of the solicitation, such as a good or service that is copyrighted, patented or otherwise only available from one license holder. The compatibility of this service is of paramount consideration. Los Angeles County, City of Los Angeles, Culver City, and other government agencies use Esri, with which the City integrates GIS data for regional public safety and planning initiatives. The need to operate the GIS in an enterprise environment and to share data with neighboring jurisdictions, such as Los Angeles County, makes Esri the only viable provider of GIS software. Given the City’s widespread use of Esri, the annual enterprise license agreement is a cost-saving option designed for cities like Santa Monica. The enterprise agreement provides discounts through volume pricing and fixed costs for the duration of the term.
No viable alternatives were identified. Esri is the sole source provider of the ArcGIS suite, and no other vendor offers the same level of compatibility, support, and integration. A change in vendor would require significant investment in re-implementation, data migration, and staff retraining.
b. when a good or service is copyrighted, patented or only available form one license holder, including, proprietary goods, original equipment manufacturers and/or exclusive distributors; Environmental Review
The proposed agreement is exempt from the provision of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines (common sense exemption) which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement would not result in any adverse physical environmental effects as it encompasses software systems and services that result in no physical change to the environment, therefore, is exempt from CEQA and no further environmental review under CEQA is required.
Past Council Actions
Meeting Date Description
10/15/2019
(Attachment A)
Approval of Agreement with Environmental Systems Research Institute, Inc. (Esri), for renewal of Geographic Information System (GIS) Software License Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General, Water, Wastewater, and Big Blue Bus funds in various Capital Improvement Program (CIP) and department 4 of 4
accounts to award an agreement with Esri for software licensing related to the City’s enterprise Geographic Information System (GIS). Future year funding is contingent on Council budget approval.
Agreement Request
FY 2025-26 Request
Amount
Future Years
Amount Account # Total Contract Amount
$17,600 $88,000 01140005.523310 $105,600
$7,040 $35,200 01140001.529230 $42,240
$25,960 $129,800 01180001.529230 $155,760
$3,300 $16,500 50500001.529230 $19,800
$3,300 $16,500 51500001.529230 $19,800
$9,130 $45,650 C6004770.689000 $54,780
$66,330 $331,650 Total $397,980
Prepared By: Neda Peiravian, Gis Analyst
Approved Forwarded to Council
Attachments:
A. Esri - Staff Report 10.15.2019
B. City of Santa Monica Esri EA Quote 2025-2028 08.08.2025 C. Esri Levine Form - signed-08.26.2025
D. Esri Oaks Form - signed 08.27.2025