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7.A.

City Council Meeting - FINAL

Meeting Date:: 06/19/2018
Co-Submitter:: Ladd Vagen
From:: Wayne Anderson, IT Manager - Applications

Information

TITLE:

Consideration and Approval of Contract: Annual Computer Software Maintenance Agreements.

STAFF RECOMMENDED ACTION:

Approve payment of annual software maintenance costs in a budgeted amount not to exceed $662,547.46, plus any applicable taxes pursuant to contracts with:

• Microsoft Enterprise Agreement (Arizona State Procurement Contract No.ADSP017-149774; new City Contract No. TER-2018-004-AG1), $195,065.82, and approve the new contract;

• SirsiDynix (Library) (New City Contract No. TER-2018-006-AG1; standard terms and conditions other than pricing per established City Contract No. A2000-1023.1 as amended 10/23/2000), $87,607.58;

• Hexagon (Formerly Intergraph Corp.) (Public Safety), approve a one year contract in an amount of $232,797.80 plus any applicable taxes (City Contract No. TER-2018-005-AG1);

• Harris Computer Corporation (City Contract No. TER-2018-001-AG1; old City Contract No. A2012-0619), $147,076.26.

Executive Summary:

Policy Decision or Reason for Action:

Annual Payments are issued to provide ongoing software licensing support and maintenance as necessary.
The attached schedule outlines the anticipated expenditures for fiscal year 2019.
Actual costs may vary from attached draft invoices and therefore approval is sought for "amount not to exceed."

Decision Points:
Annual purchase orders pursuant to contracts provide for the means to conduct day-to-day activities of the City without delay.

Financial Impact:

Purchases are budgeted in the department division's budget for software maintenance. The overall cost for these software maintenance agreements for FY 2019 is expected to increase by approximately $50,268.72 due to increases in the consumer price index (CPI), expanded service needs.

The Microsoft Enterprise Agreement applications cost has increased in order to cover the City's increased user base and to migrate the City to Office 365 and an increase in users accounts.

Policy Impact:

N/A

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:

Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.

Has There Been Previous Council Decision on This:

Yes. This is an annual review.

Options and Alternatives:

1.) Approve the recommended action as submitted;
2.) Present to Council the software maintenance support services exceeding the bid threshold on an individual basis.

Background and History:

IT and Purchasing have presented a comprehensive master list outlining computer software maintenance and support services. City staff’s recommendation is to receive payment authorization as one action item at the onset of the fiscal year.

The City has existing contracts with all vendors. Hexagon (formerly Intergraph) requires a new contract on an annual basis, with its current terms (attached). Microsoft also requires approval of its updated terms and conditions annually (attached).

City also has existing software maintenance contracts with ESRI and Superion, which contracts have been previously approved by Council and the contract amounts are unchanged for FY18-19..

Key Considerations:

Software maintenance and support services are being acquired from designated vendors from whom we purchased the computer software.

Community Benefits and Considerations:

Ongoing maintenance and support services assure the City the latest product enhancements and technical support that is critical in support of the City’s computer infrastructure.

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