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Page 2 of 4 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org In 2016, the City entered into ESRI’s small government Enterprise License Agreement (ELA) for a three- year term for a total amount of $163,500. The ELA provided access to unlimited server and desktop software licenses, up to 250 ArcGIS Online licenses, and various other software applications and extensions, which were unavailable to staff under the previous license agreement. The ArcGIS Online licenses enable staff to access and edit spatial data in the field, a feature which is used extensively by Public Works Services Department staff. The ELA significantly enhanced the City’s GIS capabilities in many operational and technical areas at a relatively low additional cost. Specifically, the ELA offered a lower cost per unit for licensed software and also offered increased flexibility to deploy GIS software products when and where needed. In 2019, the ELA was extended for an additional three-year term for a total amount not to exceed $183,700, which included a 10% contingency fee, through July 28, 2022. In 2022, the ELA was extended for an additional three-year term for a total amount not to exceed $200,442, which included a 10% contingency fee, through July 27, 2025. Despite the previous agreement expiring, the Parties continued to work together in good faith to ensure continuation of Services beyond July 27, 2025. ANALYSIS The new Enterprise Agreement will provide the City with an uncapped amount of ArcGIS Enterprise Software and extension, up to 75 ArcGIS Online subscriptions, and up to 20 ArcGIS Pro subscriptions, which will enable GIS staff to provide ongoing GIS support to various City operations and programs. The new EA will be in effect for three years, which will require three annual payments of $60,300, for a total amount of $180,900 over the three-year term. A 10% contingency brings the total not to exceed amount to $198,990 over the three-year term. The contingency allows for flexibility to consider purchasing other products or services over the life of the agreement. The pricing and scope of the Enterprise Agreement are detailed in the ESRI renewal quote dated April 4, 2025 (Attachment B), which outlines the annual subscription cost and product entitlements. The quote is attached as part of the Enterprise Agreement package and serves as the term and pricing basis for the agreement. The City has utilized ESRI as its primary GIS technology resource since 1996, and nearly all of the City’s existing GIS infrastructure is ESRI-based. Replacing this infrastructure would require substantial time and cost, potentially taking years to fully rebuild. ESRI also serves as the GIS provider for the vast majority of local government agencies in the United States, including most agencies within San Mateo County. Their proven track record of reliability, ongoing support, interoperability with partner agencies, and long-term cost-effectiveness make ESRI a strategic choice for the City. Although other vendors may offer GIS solutions, transitioning away from ESRI would introduce significant operational disruptions, integration challenges, and retraining costs. Therefore, staff recommends 7.K. - Page 2 of 44 193