City Council Agenda Report
Meeting Date: October 6, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Management Analyst
Subject
Change Order to Contract No. 20250193 with Intergraph Corp. (Octave, formerly Hexagon) for EAM Essentials Software
Recommendation
Approve and authorize the City Administrator to execute quote Q-00210304 with Intergraph Corp. (Octave), in substantially the same form as submitted, for EAM Essentials Software for a total amount not-to-exceed $38,659.20, for a one-year term.
Background
The City currently utilizes Intergraph Corp. EAM Essentials software as the work order management system supporting operations at the Malburg Generating Station (MGS). Extending support and maintenance services for EAM Essentials for an additional year (for three total years) will facilitate the continued use of this critical software platform. MGS will be allowed to maintain its existing work order management system without interruption or transition to a different platform, which would be cumbersome and costly for the City.
The City initially entered into Contract No. 20250193 with Hexagon for EAM Essentials software on November 30, 2024. The proposed action will effectuate a change order to Contract No. 20250193 to add a third year of software services for the 2026-2027 period. With the first- and second-year cumulative contract value at $67,992, the proposed third year cost of $38,659.20 will increase the grand total to $106,651.20, exceeding $100,000 and requiring City Council approval pursuant to Vernon Municipal Code (VMC) Section 3.32.030(A).
Pursuant to VMC Section 3.32.110(A)(2), the proposed change order is exempt from competitive bidding because the support and maintenance of the Hexagon-owned software products can only be obtained directly from Hexagon. Hexagon has represented that it is the copyright owner of the applicable software products and is the only vendor with unrestricted access and the ability to modify and provide support for the proprietary software.
The Intergraph Corp. Agreement and Quote have each been approved as to form by the City Attorney’s Office.
Strategic Plan Goals
Goal 6: Optimize Public Utility Operations to Ensure Affordable Services Fiscal Impact
The fiscal impact of the change order is not-to-exceed $38,659.20 for the third year of EAM Essentials software services. Sufficient funds are available in 055-050-586-529110 for Light & Power- MGS, Repairs & Maintenance- IT for the current fiscal year.
Attachments
1. Intergraph Corp. Agreement ALI-24-107214
2. Intergraph Corp. Quote Q-00210304