SR 11-22-2016 3H
Ci ty Council
Report
City Council Meeting : November 22, 2016
Agenda Item: 3.H
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer , Information Systems
Department, Web Development
Subject: Agreement with Esri for GIS Software License Renewal
Recommended Action
S taff recommends that the City Council authori ze the City Manager to negotiate and
execute an agreement with Environmental Systems Research Institute, Inc. (Esri), a
California -based company, for software licensing related to the City’s enterprise
Geographic Information System (GIS). This recommended award is made as an
exception to the competitive bidding process pursuant to Municipal Code Section
2.24.080 (d), as c ompetition does not exist because only Esri possesses the unique
ability or capability to meet the particular requirements of the solicita tion, such as a
good or service that is copyrighted, patented or otherwise only available from one
license holder , and is for a total amount not to exceed $170,500 (including 10%
contingency), with future year funding contingent on Council budget approval .
Executive Summary
T he City of Santa Monica is heavily reliant on the availability of data to inform decision
making, manage day -to -day operations, optimize service delivery, and improve citizen
engagement. Many data repositories exist in the City. The e nterprise Geographic
Information System (GIS) is one of the largest and most impactful data sources utilized
by City staff, residents and businesses. GIS data is used by staff to manage
geographical data (geospatial data); generate maps to conduct analysi s and create
public notifications related to City projects; and, provide geospatial functionality for
numerous software applications. GIS data is also used to create daily maps to identify
traffic patterns and manage critical underground infrastructure an d City assets.
Businesses utilize the data and features provided by the enterprise GIS to inform their
business decisions. In particular, numerous businesses working on behalf of the City
require access to the City’s GIS to complete their work. The eleme nts stored in the
City’s GIS that are not deemed private and confidential are made available to the public
as part of the City’s commitment to further transparency and civic engagement. The
City’s GIS program relies solely on Esri software. Esri is the only software provider that
meets the requirements of enterprise scalability and enables compatibility with similar
systems in neighboring jurisdictions, thereby enabling data sharing. The Esri system
licenses will soon expire. Staff recommends entering i nto a new license agreement with
Esri for a three -year term, including product support and training at a cost not exceed
$155,000. Staff also recommends approving a 10% contingency in the amount of
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$15,500, which would enable the City to purchase any Esri add -on products, not
included in the enterprise agreement, as needed. The total cost including contingency
would not exceed $170,500 during this three -year term .
Background
T he City has been using Esri software since 1993 to develop and manage its
Geog raphic Information System (GIS). A GIS is a system designed to capture, store,
manipulate, analyze, manage, and present all types of geographical data. Merging
cartography, statistical analysis, and computer science technologies, the City uses its
GIS to project data onto maps in support of a broad spectrum of projects and operations
in every department. Some these maps are interactive and made available for public
consumption via the City’s website.
On June 25, 2013 (Attachment A), Council authorized a three -year agreement with Esri
in the amount of $167,535 for system licensing, including product support and training.
The agreement will soon expire; therefore, staff recommends entering into a new three -
year enterprise agreement with Esri to ensure busi ness continuity .
Discussion
C ity departments use GIS to support critical operations, such as development of public
notifications for City projects; dispatch of public safety resources; management of
hazardous material storage; management of infrastructure and assets, including
wastewater, storm drain, water systems, fiber optics, and utilities; management of traffic
control systems; facilitation of street sweeping and refuse collection operations; updates
and studies for land use, redevelopment, zoning and general plan activities; and,
property ownership tracking.
In addition to the explicit functionality provided by the Esri system, GIS integrations are
becoming more integral to software systems. Systems such as permitting and project
tracking systems, those used for fire and police analysis, as well as asset management
systems within public works are reliant on the Esri enterprise GIS. In addition to the
benefits provided to City operations and to staff, the enterprise GIS benefits local
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businesses and the public, as it is the source of several data streams currently available
for public consumption via the City’s open data portal.
At this time, staff recommends entering into a new enterprise license agreement with
Esri for a three -year term at a total cost not to exceed $155,000, including product
support, training, as well 10% contingency, for a total not to exceed amount of
$170,500. Should the City elect to not extend its enterprise level agreement with Esri,
the following alternatives may be consi dered :
Alternatives
L ower agreement level to a client -based model as opposed to an enterprise
level. This option would retain Esri as a provider, but would change the licensing
agreement to be based on client licenses, as opposed to providing all City st aff
full access to GIS tools. One potential benefit to this option would be reduced
costs as result of a decrease in the total number of workstations with access to
GIS. Drawbacks would include loss of access to GIS data and tools by the
organization as a whole and lack of enterprise level technical support (i.e. the
City would receive lower -tier support than it is accustomed to).
M ove away from the Esri product -line entirely and switch to another software
vendor. Esri is the largest provider of GIS servi ces to both public and private
sectors, however, other providers are in the marketplace. Both traditional and
open -source software alternatives may be considered. Benefits could include
savings in licensing costs, particularly if an open -source model is considered.
However, any such savings would be lost and the City would incur additional
costs when factoring in for data migration, recreating software applications to
work with a new enterprise GIS, and training the entire workforce on the new
system .
T h e two alternatives mentioned above could be considered; however, the City would not
benefit from changing its GIS licensing model or from moving away from the enterprise
license level offered by Esri. As the City increases its use of data to inform decisi ons
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and as new technologies and platforms emerge, the City will be required to maintain the
enterprise GIS in a manner that is nimble and interoperable, allowing the City to “plug
in” new systems to the enterprise GIS as needed. By entering into a new ent erprise
license agreement with Esri, the City will continue to maintain its ability to proliferate
GIS services to other systems and applications. Moreover, Esri is the dominant provider
of GIS software, particularly for public sector agencies, resource sh aring amongst
jurisdictions straightforward. 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 license agreement allows the City to deploy unlimite d number of
core Esri products, such as software for staff desktop computers and City enterprise
servers .
Vendor/Consultant Selection
S taff recommends entering into a new enterprise license agreement , including product
support and training, with Esri fo r a three -year term, as an exception to the competitive
process pursuant to Section 2.24.080 (d), as c ompetition 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 also of paramount
consideration. Esri is the dominant provider of GIS software; is the only provider of
enterprise GIS software; and, is used by most jurisdictions in the region, including Los
Angeles County, City of Los Angeles, and Culver City. Esri is also used by other
government agencies, 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, make Esri the
only viable provider of GIS software. A 2015 survey conducted by ARC Advisory
Group found that Esri software accounts for a 43% share of the GIS market. In
comparison, the second -largest provider accounts for an 11% market share. Moreover,
the ARC Advisory Group report indicated that Esri products are used in over two -thirds
of Fortune 500 comp anies.
Given the City’s widespread use of Esri, the annual enterprise license agreement is a
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cost -saving option designed for cities like Santa Monica. The enterprise license
agreement allows the City to deploy unlimited number of core Esri products, such as
software for staff desktop computers and City enterprise servers. Software maintenance
is included for the term and offers technical support for named callers, new software
releases, upgrades, updates, and internet -based training .
Financial Impacts a nd Budget Actions
T he agreement to be awarded to Esri is for an amount not to exceed $170,500,
including contingency. Funds of $56,833 are available in the FY 2016 -17 budget in
various departments. Future funding is contingent upon Council approval and bud get
adoption .
Prepared By: Justin Mank, GIS Systems Analyst
Approved
Forwarded to Council
Attachments:
A. June 25, 2013 Staff Report (web link)
Reference:
Agreement No. 10396
(CCS)