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9.A.

City Council Meeting - FINAL

Meeting Date:: 07/05/2017
From:: Damian Gallegos, Senior Procurement Specialist - DG

Information

TITLE:

Consideration and Approval of Contract: Annual Computer Software Maintenance Agreements

RECOMMENDED ACTION:

Approve payment of annual software maintenance costs in a budgeted amount not to exceed $680,437.95 plus applicable taxes pursuant to contracts with:

Harris Enterprise (City Contract No. A2012-0619.1), $147,076.26;
Microsoft Enterprise Agreement (Arizona Procurement Office Contract No. ADSPO17-149774), $163,682.50;
SirsiDynix (Library) (City Contract No. A2000-1023.1, as amended 10/23/2000), $87,402.98;
Intergraph Corp. (Public Safety) for $214,117.00 plus any applicable taxes, and approve its contract renewal;
ESRI (GIS), (City Contract No.2016-131), year 2 of a 3 year term, annual cost of $54,475.50;
Superion (formerly Sungard) H.T.E. for $13,683.71 (Contract numbers: 2000706, 200050238, 20060930, 20060266).

Above contracts have been budgeted including the increases in the fiscal year 2018 budget. Each contract has been listed with the possibility of adding any applicable sales taxes to be added at a later time. All contract increases have been included in the prices listed above unless otherwise stated.

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 2018.
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 FY 18 is expected to increase by approximately $32,964.11 due to increases in the consumer price index (CPI) and expanded service needs.
Harris ERP Financial applications costs are the same as last year at $147,076.26.
Superion (formerly Sungard) Financial applications costs have increased 5%.
ESRI Maintenance costs are the same as last year as this is year 2 of a 3 year contract at $54,475.50 annually.
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.
Police Department maintenance applications show a total decrease in cost due to an incorrect tax amount charged last fiscal year and an item having been eliminated from maintenance.
The library's SIRSI maintenance increase is estimated at 3% - the maximum allowable.

Policy Impact:

Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic 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 and 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 $647,473.84 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).

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 products enhancements and technical support that is critical in support of the City’s computer infrastructure.

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