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Home My WebLink AboutPLN 07-20clia �f DICKERING Report to Council Report Number: PLN 07-20 Date: April 27, 2020 From: Kyle Bentley Director, City Development & CBO Subject: Esri Enterprise Agreement for the Supply of ArcGIS Software and Services Extension of the City's Participation with the Region of Durham File: L-4100-001 Recommendation: 1. That Council supports the proposed extension of the Region of Durham's Enterprise Agreement (EA) with Esri Canada for the supply of ArcGIS software and services and the City's ongoing participation in the EA for a three year period at a total cost of $201,444.00 (plus applicable taxes) with annual payments of $66,000.00 for year one (July 15, 2020 to July 14, 2021), $67,722.00 for year two (July 15, 2021 to July 14, 2022), and $67,722.00 for year three (July 15, 2022 to July 14, 2023), to be funded from the Current Budget of the City Development Department; 2. That the Director of City Development be authorized to sign a Letter of Intent to Participate in and Commit to terms and payment, generally as set out in the draft letter provided in Appendix I; and, 3. Further, that the signed Letter of Intent to Participate in and Commit to Terms and Payment be forwarded to the Chief Information Officer, at the Region of Durham. Executive Summary: The City of Pickering participates in the Region of Durham's Enterprise Agreement (EA) with Esri Canada, for the supply of ArcGIS software and services. The Region is the customer, and the City of Pickering and a number of other local municipalities and the Durham Regional Police Service, are affiliates. The Region's EA with Esri Canada is expiring on July 14, 2020. The Region has received a budgetary financial proposal from Esri Canada to renew the EA for the next three years (to July 14, 2023) at a cost of $1,404,000 (for the Region and all affiliates combined over the 3 -year term). The City of Pickering's proportionate share of the total cost is $201,444.00 (plus applicable taxes) with annual payments of $66,000.00 for year one, $67,722.00 for year two, and $67,722.00 for year three. The ArcGIS software and services provided by Esri Canada are essential elements of the City's Geographic Information System operations and services. Continued participation in the Region's EA not only provides various added benefits as discussed in the report, but also would continue to improve efficiencies in internal operations and service delivery at a cost-effective rate. It is recommended that the City participate in the Region of Durham's extension of the EA with Esri Canada for a three year period starting July 15, 2020. PLN 07-20 April 27, 2020 Subject: Esri Enterprise Agreement for the Supply of ArcGIS Software and Services Page 2 Financial Implications: 1. Total Project Cost for Pickering's 3 -Year License Agreement Extension 3 Year License Extension HST (13%) Total Gross Project Costs HST Rebate (11.24%) Total Net Project Costs $201,444.00 26,187.72 $227,631.72 (22,642.31) $204,989.41 Annual Costs Year 1 Year 2 Year 3 Pickering Costs (excl. taxes) HST (13%) Gross Project Costs HST Rebate (11.24%) Net Project Cost to City (incl. 1.76%) $66,000.00 8,580.00 $74,580.00 (7,418.40) $67,722.00 8,803.86 $76,525.86 (7,611.95) $67,722.00 8,803.86 $76,525.86 (7,611.95) $67,161.60 $68,913.91 $68,913.91 2. Approved Source of Funds — Phase 1 (2020 Current Budget) Account Code Source of Funds 2610.2479.0000 Property Taxes Budget $67,500.00 Required $67,162.00 3. Funds Required For Years 2 and 3 $137,828.00 Background: The City of Pickering is a participant in the Region of Durham's Enterprise Agreement (EA) with Esri Canada, for the supply of ArcGis software and services. The Region is the customer, and the City of Pickering and a number of other local municipalities in Durham (e.g., Brock, Scugog and Uxbridge) as well as the Durham Regional Police Service, are affiliates. The Region has recently approached the affiliates, indicating that the Region's EA with Esri is expiring on July 14, 2020, and that the Region has received a budgetary financial proposal from Esri Canada to renew the EA for the next three years (to July 14, 2023) at a cost of $1,404,000 (for the Region and all affiliates combined over the 3 -year term). The City of Pickering's proportionate share of the total cost is $201,444.00 (plus applicable taxes) with annual payments of $66,000.00 for year one, $67,722.00 for year two, and $67,722.00 for year three. PLN 07-20 April 27, 2020 Subject: Esri Enterprise Agreement for the Supply of ArcGIS Software and Services Page 3 These costs are based on a formula that weights deployed software (maintenance cost only) at 60 per cent and population at 40 per cent. A 2.6 per cent uplift is applied across the board from year one to year two to help plan changing budgets. The Region confirmed that every affiliate has and will continue to save on up -front costs for software (due to bulk software licensing and service delivery), and that uncapped products (those for which we do not need specific licenses to use) and general terms will remain unchanged from previous agreements. The ArcGIS software and services provided through the Region's EA include ArcGIS Online subscription, an array of uncapped GIS software products, a limited number of discounted pre -paid training packages and User Conference attendance, as well as formal user support from Durham Region. Participating in this licensing renewal will also include the deployment of much needed additional uncapped software and changing from basic to standard user licenses, to improve internal user capacity and operations and our service to a growing population. If Pickering were to get a Small Local Government EA on its own it would have cost approximately $65,260.00 per year. However, once the City's population reaches 100,000 the price would change to approximately $95,300.00. Procuring through the Region's EA will therefore keep the costs stable while Pickering grows. The ArcGIS software and services provided by Esri Canada are an essential element of the City's Geographic Information System operations and services. Continued participation in the Region's EA is therefore crucial to maintaining our GIS operations and improving our service delivery to the public and external agencies. Recommendation #1 requests Council's support of the proposed extension of Region of Durham's EA with Esri Canada and the City's ongoing participation in the EA for the next three years, starting July 15, 2020, and Recommendation #2 requests that the Director, City Development, be authorized to sign the attached Letter of Intent to Participate in and Commit to terms and payment. This report has been reviewed by the Director, Finance & Treasurer, the Director, Engineering Services and the Division Head, Information Technology. They concur with the contents of the report and its recommendations. Appendix I Draft Letter of Intent to Participate in and Commit to terms and payment PLN 07-20 April 27, 2020 Subject: Esri Enterprise Agreement for the Supply of ArcGIS Software and Services Page 4 Prepared By: D'an Jacobs, MCIP, RPP Manager, Policy & Geomatics DJ:Id Approved/Endorsed By: ��\i-- tr.-- Catherine Rose, MCIP, RPP Chief Planner Kyle Bentley,'P.Eng. Director, City Development & CBO Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng.• Chief Administrative Officer Appendix 1 to Report PLN 07-20 Draft Letter of Intent to Participate in and Commit to Terms and Payment [Insert date] Kalyan Chakravarthy Chief Information Officer Corporate Services — Information Technology The Regional Municipality of Durham 605 Rossland Road East, Lower Level Whitby, ON L1N6A3 Subject: Esri Enterprise Agreement (EA) Purpose: Letter of Intent to Participate in and Commit to terms and payment Dear Kalyan Chakravarthy, Recently the Region of Durham reached a tentative deal with Esri Canada with Esri Canada, which allows for the area municipalities and Durham Regional Police Service to join. This letter is to inform you that the City of Pickering intends to participate in the EA as a registered affiliate. City of Pickering acknowledges that it has carefully read and fully understands that we are bound by all terms, conditions and obligations of the Agreement. We understand that the total cost of this 3 -year Agreement is $1,404,000, and that the Region of Durham will charge City of Pickering in the following amounts to participate, invoicing directly each year. 2020 2021 2022 Total $66,000 $67,722 $67,722 $201,444 City of Pickering agrees to be bound by the terms of the EA and pay the above fees, for the duration of the contract ending July 14, 2023. Regards, [Name], [Title] City of Pickering