Consideration and Approval of Contract: 2026 Renewal of the Master Agreement for Software Maintenance with Hexagon for software utilized by the City of Flagstaff Police Department in the amount of $341,161.20, plus applicable taxes.
 

1. Approve and ratify the renewal of the agreement in the amount of $341,161.20 plus applicable taxes
2. Authorize the City Manager to execute the contract renewal and any necessary documents to maintain uninterrupted services.

Hexagon software manages all the Computer Aided Dispatch (CAD) and Records Management System (RMS) for public safety. Staff is requesting approval of the 2026 Renewal of the Master Agreement for Software Maintenance ("Software Agreement") with Hexagon. The Software Agreement is for the Flagstaff Police Department Computer Aided Dispatch (CAD) and Records Management Software (RMS). This agreement allows the Hexagon company to provide ongoing software licensing support and maintenance as necessary. The attached quote outlines the anticipated expenditures for the fiscal year 2026-2027. The renewal of the annual software maintenance provides the means to continue to conduct day-to-day activities of the Police Department without delay. The Software Agreement may be subject to any applicable sales tax(es) to be added at a later time.

Project Name:Hexagon Software Yearly Maintenance 
Cost: $341,161.20 plus applicable tax
Account Number Budgeted: 001-04-061-0221-2-4231, 001-04-061-0223-2-4231, 001-04-061-0224-2-4231, 001-04-061-0220-2-4231
FY Budgeted Amount: $267,290 
Grant Funded: No.
Funding Source: General Fund; Costs for the software are shared with Coconino County Sheriff's Office and Northern Arizona University Police Department per Intergovernmental Agreements IGA-2023-123-AG2 and IGA-2023-126-AG2

This contract is over budget by $105,892. The Police Department and City Manager's Budget Team are working to identify funding to cover this overage.

This is an annual software contract that has been before Counil every year since 2013. 

Option 1
Ratify the contract renewal and authorize the City Manager to execute the renewal agreement.
This option ensures uninterrupted continuation of critical services, maintains vendor support and system maintenance, and avoids additional costs, service interruptions, or loss of functionality. Ratification also formalizes the procurement after services were required to continue during the administrative approval process.

Option 2
Do not ratify the contract renewal.
Choosing not to ratify the renewal could result in a lapse in maintenance and support services, loss of access to software updates and technical assistance, increased costs associated with reinstating the agreement, and potential operational impacts. For mission-critical systems, a lapse could affect the department's ability to maintain reliable operations until the replacement solution is fully implemented.

Option 3
Direct staff to pursue an alternative procurement or service provider.
While staff can explore alternative solutions, this option is not recommended for a short-term renewal supporting an existing system. Transitioning to another vendor before implementation of the planned replacement system would require additional procurement efforts, increase costs, extend implementation timelines, and introduce operational risk with limited long-term benefit.

Staff Recommendation
Staff recommends Option 1 to maintain continuity of critical operations, preserve vendor support, and avoid unnecessary costs and operational disruption while the replacement system is being implemented.

The City currently utilizes the existing Computer-Aided Dispatch (CAD) and Records Management System (RMS) to support critical public safety operations, including emergency communications, dispatching, records management, reporting, and other essential law enforcement functions. While the City is actively implementing a replacement CAD/RMS solution, the current system must remain fully operational until the new system is implemented, tested, and placed into service.
The annual maintenance agreement provides software licensing, technical support, security updates, bug fixes, and system maintenance necessary to ensure the continued reliability and functionality of the existing system. Allowing the agreement to lapse would create operational risks, including reduced vendor support, potential loss of critical system functionality, and increased costs associated with reinstating maintenance.
Staff initiated the contract renewal through the City's procurement process in May; however, the approval process was not completed before the renewal deadline. Because uninterrupted maintenance is essential to maintaining public safety operations during the transition to the new CAD/RMS platform, staff is requesting ratification of the renewal agreement and authorization to execute the contract.
Ratification will ensure continuity of service, maintain vendor support throughout the transition period, and protect the City's investment in its current public safety technology until the replacement system is fully operational.

High Performing Governance: Encourage public trust through transparency, accessibility and use of the City's public participation policy.
High Performing Governance: Become an employer of choice and provide employees with the necessary tools, training andsupport.
Safe and Healthy Community: Provide public safety with the resources, staff and training to respond to community needs.
Team Flagstaff Strategic Plan: Provide exceptional service.

This action supports the Regional Plan by maintaining the technology and systems necessary to provide reliable, effective, and coordinated public safety services to the community.

This action has no direct impact on the City's Carbon Neutrality Plan.

This action has no direct impact on the City's 10-Year Housing Plan.