AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
ACM: Bryan Langley
AGENDA DATE: March 7, 2017
SUBJECT
Title
Consider adoption of an ordinance of the City of Denton, Texas authorizing the approval of a first amendment to a contract between the City of Denton and Environmental Systems Research Institute, Inc. (ESRI) for the ESRI Small Enterprise License Agreement for the ArcGIS software suite licenses for an additional three (3) year period, extending the contract approved City Council on March 4, 2014, in the amount of $75,000; providing for the expenditure of funds therefor; and providing an effective date (File 5466-providing for an additional expenditure amount not-to-exceed $78,000, with the total contract amount not-to-exceed $153,000).
Body
FILE INFORMATION
DME maintains a master repository of records and maps for its installed electric and communication systems. DME must maintain accurate system infrastructure records and be able to accurately produce electrical system operational maps and switching orders. The City of Denton and DME chose a geographic information/facilities management system (referred to as “GIS”) nearly two decades ago. ESRI ArcGIS software suite assists DME by increasing productivity and improving services by effectively managing its spatial data. The electric GIS software allows DME the capability to run database queries on the electric system infrastructure and create engineering and operational maps. The electric GIS system is a core product for DME and is used to provide GIS data that assists with financial fixed asset accounting, budget preparations, and presentations requiring governing board approvals, distribution engineering analysis, and outage management tracking and reporting. DME could experience serious impacts related to operational, design, and GIS system knowledge capabilities and these applications cannot continue to function without the renewal of the ESRI Small Utility Enterprise License Agreement (ELA) license. Changing from ESRI software would create the need to re-integrate or totally replace a number of existing software’s which could cost in excess of $1,000,000.
The ESRI software is a foundation component to other software programs in order to properly perform the software’s operations and functions, and has similar licensing agreements in place with other vendors. The ESRI ELA is a three (3) year agreement that will grant DME, access to ESRI® term license software on an unlimited basis including maintenance on all software offered through the ELA for the term of the agreement. The ELA will be effective on the date executed and will require a firm three‐year commitment. The three-year commitment will save DME more than $30,000 dollars in comparison to individual software licensing over the same three-year period.
DME converted its individual licensing to ELA licensing in 2011, and has greatly benefited from it. ELA has several benefits including:
• A lower cost per unit for licensed software
• Substantially reduced administrative and procurement expenses
• Maintenance on all ESRI software deployed under this agreement
• Complete flexibility to deploy software products when and where needed
The original contract, which is attached as Exhibit 1, will terminate on May 13, 2017, if not renewed. DME recommends extension of the contract for an additional period of three (3) years (May 13, 2017 - May 13, 2020), which will begin immediately upon the execution of the new agreement and expiration of the original time period. This extension binds and benefits both DME and ESRI, Inc.
PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 27, 2017, the Public Utilities Board recommended approval to forward this item to the City Council for consideration.
RECOMMENDATION
Approve a first amendment to the contract between the City of Denton and Environmental Systems Research Institute, Inc. (ESRI) for the ESRI Small Enterprise License Agreement for the ArcGIS software suite licenses for an additional three (3) year period and for an additional expenditure amount not-to-exceed $78,000, with the total contract amount not-to-exceed $153,000.
PRINCIPAL PLACE OF BUSINESS
Environmental Systems Research Institute, Inc.
Redlands, CA
ESTIMATED SCHEDULE OF PROJECT
The First Amendment will extend this contract through May 13, 2020.
FISCAL INFORMATION
This item will be funded from DME Electrical Engineering operating account 600500.6504. Requisition#133104 has been entered in the Purchasing software system.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 1.5 Utilize technology to enhance efficiency and productivity
EXHIBITS
Exhibit 1: Original Agreement
Exhibit 2: Ordinance
Exhibit 3: First Amendment
Respectfully submitted:
Ethan Cox, 349-7421
Customer Service Manager
For information concerning this acquisition, contact: Jerry Fielder at 349-7173.