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APPROVE MOTION TO ENTER INTO A NEW CONTRACT WITH ESRI FOR PROFESSIONAL SERVICES AND EXTEND PURCHASE AUTHORITY FOR ESRI SOFTWARE MAINTENANCE AND SUPPORT
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Enter into a contract with Environmental Systems Research Institute, Inc. (ESRI) for professional services in a one-time amount of $100,575 (Attachment A).
2. Authorize Purchase Authority for ongoing ESRI software maintenance and support, quoted at $186,823.42, effective August 4, 2026, to August 3, 2028 (Attachment B).
3. Authorize additional subscriptions for an estimated amount of $52,000 over the next two years.
4. Approve findings for an exception to the competitive bidding process; and
5. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City utilizes ESRI’s Geographic Information System (GIS) software for mapping, spatial analysis, and data visualization across multiple departments. To ensure continuity of operations and maintain compliance with licensing requirements, the City must renew its ESRI software maintenance agreement and engage ESRI professional services for system optimization and integration projects.
The City plans to enter into a one-time contract with ESRI for professional services totaling $100,575. In addition, the City will continue its software maintenance and support contract with ESRI for a two-year term, estimated at $186,823.42, from August 4, 2026, through August 3, 2028. Furthermore, the City will add additional subscriptions over the next two years in the amount of $52,000.
DISCUSSION
Background
Through a Request for Proposal process in 1988, the City entered into an agreement with ESRI to provide GIS mapping licenses. In 1993 the City approved the purchase of computer hardware (Resolution 93-0571) to replace and expand the use of the GIS system. In 1994 the ESRI agreement was amended (Resolution 94-0154) to purchase additional GIS software to support departmental automated mapping. In 2011 the ESRI maintenance agreement was reinstated (Resolution 11-0308), as only ESRI provides the needed maintenance support that is compatible with the software. ESRI is the sole source provider of maintenance and support for its proprietary GIS software. The City has relied on ESRI solutions for many years, supporting critical functions such as asset management, public safety, and infrastructure planning.
Present Situation
The current ESRI maintenance agreement is set to renew in August 2026. Without renewal, the City risks losing access to essential updates, security patches, and vendor support. The professional services engagement will assist with advanced GIS projects, integration with enterprise systems, and staff training.
The proposed agreement includes:
• Professional Services: $100,575 for consulting, configuration, and implementation support.
• Software Maintenance: Two-year term for updates, patches, and technical support, estimated at $186,823.42.
• Additional Subscriptions: $52,000 over the next two years.
Findings
Stockton Municipal Code Section 3.68.070.A.4 provides an exception to the competitive bidding process in cases where the City Council has approved findings that support and justify the purchase:
1. Proprietary Software: ESRI’s GIS platform and associated maintenance services are proprietary. No other vendor can provide updates, patches, or technical support for ESRI software.
2. Continuity of Operations: The City must maintain ESRI software to ensure uninterrupted GIS functionality, which supports critical operations such as infrastructure planning, public safety, and asset management.
3. Strategic Review: Procurement staff reviewed current and future GIS requirements and determined that continuing this multi-year agreement with ESRI provides cost predictability and operational stability during ongoing system enhancements.
4. Market Consistency: The agreements reflect pricing consistent with industry standards for GIS software maintenance and professional services.
FINANCIAL SUMMARY
The total cost associated with this request for purchase authority is $339,458.42 (Table 1), which includes a new one-time fee of $100,575 for professional services and $52,000 for additional subscriptions over the next two years, along with the continuation of the existing maintenance and support contract for two years, estimated at $186,823.42. There is a sufficient FY 2025-26 budget appropriated in the Technology Internal Service Fund account 3020-000-630013-510-511. Future annual costs will be included in the annual budget development approval process.
Table 1: Total Request for Purchase Authority
|
Expenditure Description |
FY 2025-26 |
FY 2026-27 |
FY 2027-28 |
Estimated Total |
|
Annual Maintenance & Support |
|
$93,441.71 |
$93,441.71 |
$186,823.42 |
|
Professional Services |
$100,575.00 |
|
|
$100,575.00 |
|
Additional Subscriptions |
|
$20,000.00 |
$32,000.00 |
$52,000.00 |
|
Totals: |
$100,575.00 |
$113,441.71 |
$125,441.71 |
$339,458,42 |
Attachment A - ESRI Professional Services Agreement
Attachment B - ESRI Multi-Year Renewal Quote