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SR-08-27-2013-3D— 1940M City of Santa Monica" = City Council Meeting: 08/27/13 Agenda Item: �3_D To: Mayor and City Council From: Jory Wolf, Chief Information Officer Subject: Software License and Maintenance Contracts with Laserfiche for Electronic Imaging and Document Management System Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute software license and maintenance agreements with Laserfiche, a California- based company, in an amount not to exceed $159,981 for the sole source purchase of software licenses, maintenance and related services for five years to provide an electronic imaging and document management system with future year funding contingent on Council budget approval. Executive Summary Since 2006, the City has used Laserfiche to provide imaging and document management for documents and other media that require long-term retention and/or have particular public significance. These documents include Council materials, Police reports and citations, building plans and engineering drawings. Since that time, the City's has expanded its deployment of the software, thus requiring the purchase of additional licenses. Additionally, staff seeks to integrate the Laserfiche system with other collaboration systems to streamline document retention and publishing processes. Therefore, staff seeks to procure a new software licensing agreement in order to expand the number of user licenses, acquire new products and provide for additional services. The upgraded licenses and services, including maintenance, product support and training, would not exceed $159,981 over a five year period. Background On April 25, 2006, Council authorized staff to negotiate and execute a contract with Laserfiche for an imaging and document management system and related services. 1 On September 14, 2010, Council authorized a modification to the City's contract with Laserfiche to purchase additional licenses to expand staff usage. Today, the City uses Laserfiche products to efficiently create, store, view and manage electronic images and documents for several departments. Examples of electronic images/documents stored in the City's repository include Police reports and citations, building permits and plans, engineering drawings and Council meeting documents. Use of Laserfiche products has substantially accelerated the fulfillment of document requests while simultaneously preserving fragile paper archives. Since the City originally implemented the system, Laserfiche's product offerings have evolved to meet modern technology infrastructure requirements, including web -based applications and collaboration tools. Discussion The software licenses purchased in 2006 for the Laserfiche Imaging and Document Management System are perpetual licenses but are limited to a select group of products then available. The increased demand for the system requires the City upgrade its licensing arrangement with Laserfiche. This new licensing arrangement would also allow the City to better integrate emerging technologies and new software collaboration products which have been introduced citywide, meet evolving business needs, and leverage products using new technologies. . Contractor Selection In order to evaluate competing systems in 2006, staff published a Request for Proposals (RFP) and evaluated various vendor solutions. Responses were evaluated by a mutli-departmental committee based on product approach, cost, and ability to meet the City's technical specifications and product support requirements. Laserfiche was the lowest bidder and best met the City's technical specifications and product support requirements. 7 The City has now received a quote from Laserfiche for the purchase of additional products, licenses and services that would allow further deployment of Laserfiche throughout the organization. This sole source purchase is necessary in order to maintain and expand the City's significant, existing investment in Laserfiche infrastructure, so complementary business systems such as Police reporting and building permitting can continue to communicate and operate interdependently on platforms developed by Laserfiche. Business rules and associated workflows in these complementary systems depend on Laserfiche functionality. 3 Financial Impacts & Budget Actions The software licensing agreement to be awarded to Laserfiche is for an amount not to exceed $52,890 for software licensing and $20,784 for annual software maintenance beginning in FY 2013/14, with 5% increases in software maintenance in years four and five, for a total amount not to exceed $159,981 over a five year period. Funds for the software licensing and first year of maintenance are included in the FY 2013/14 budget in divisions 243 and 304 and in the Capital Improvement Program budget in account 055000313.589000. The software licensing and first year of maintenance will be charged to the following accounts: 01243,533580 $12,470 01304.533580 $29,070 C55000313.589000 $32,134 TOTAL $73,674 Budget authority for subsequent budget years will be requested for divisions 243 and 304 in each budget for Council approval. Future funding is contingent upon Council approval and budget adoption. Prepared by: David Yeskel, Systems Analyst Approved: Forwarded to Council: Wory o Rod Gould f Information Officer City Manager N Reference: Resolution No. 9789