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9.A.

City Council Meeting - FINAL

Meeting Date:: 06/21/2016
Co-Submitter:: Damian Gallegos
From:: Ladd Vagen, Information Technology Director

Information

TITLE:

Consideration and Approval of Payment/Contract Renewal: Annual Computer Software Maintenance

RECOMMENDED ACTION:

Approve payment of annual software maintenance costs in a budgeted amount not to exceed $647,473.84 pursuant to contracts with:

Harris Enterprise (City Contract No. A2012-0619.1), draft invoice for $140,072.63;
SHI (reseller for Microsoft) (Arizona Procurement Office Contract No. ADSPO11-007500), draft invoice for $151,500.14;
SirsiDynix (Library) (City Contract No. A2000-1023.1, as amended 10/23/2000), draft invoice for $83,404.61;
Intergraph Corp. (Public Safety) for $204,947.48 plus any applicable taxes, and approve its contract renewal;
ESRI (GIS), (City Contract No.________), for a 3 year term. annual cost of $54,475.50 (Quotation # 2048724);
Sungard H.T.E. for $13,073.48 (Contract numbers: 2000706, 200050238, 20060930, 20060266).

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 2017.
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 divisions software maintenance. The overall cost for FY17 is expected to increase by approximately $29,500.00 due to increases in the CPI and expanded contracts.
ERP Financial applications cost increased by an approximate 0.15% for Sungard maintenance on our legacy system.
ESRI Maintenance has increased due to the city entering into an Enterprise Agreement contract with ESRI for increased licensing and product availability.
The Microsoft ERO agreement has increased in order to cover the city's increased user base, and to migrate the city to Office 365.
PD Maintenance shows a total decrease due to an incorrect tax amount charged last fiscal year and an item having been eliminated from maintenance.
The library's SIRSI maintenance increase by a modest .01%

Connection to Council Goal and/or Regional Plan:

COUNCIL GOALS:
3) 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.

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/History:

For the past seven years, IT and Purchasing have presented a comprehensive master list outlining most 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. During the current fiscal year we have expended approximately $618,060.38 to the various vendors as outlined in the attached schedule.

City has existing contracts with all vendors. Intergraph requires a new contract on an annual basis, with its current terms (attached).
Esri (GIS) is proposing a new contract for a 3 year term, at $50,000/year plus additional sales tax (attached)

Key Considerations:

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

Expanded Financial Considerations:

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

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