REPORT TO COUNCIL
SUBJECT
Title
Agreement with CentralSquare Technologies, LLC for Enterprise Asset Management Software and Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City has thousands of physical assets that need ongoing maintenance and improvements. Examples of these assets include properties, facilities, infrastructure, vehicles, equipment, streetlights, trees, fleet, and underground utility structures. In order to efficiently manage these assets, the City established an Enterprise Asset Management Program (EAM PROGRAM) that was originally deployed in 2013. The goal of the program is to:
• Optimize quality, utilization, and performance of these assets
• Reduce operational costs
• Streamline the process for scheduling preventive maintenance, work order management to log, assign and track issues that require attention
• Catalog and track the geographical location of assets
• Ensure regulatory compliance when required
The City’s EAM PROGRAM utilizes two key software applications to accomplish these goals: Enterprise Geographic Information System (GIS) and Enterprise Asset Management (EAM) from software providers ESRI and CentralSquare, respectively. The GIS application records the location of physical assets as described above. Both applications have been integrated to provide seamless functionality. The EAM application is integrated with GIS to provide both asset management and work order management services, enabling City departments to track the location, status, labor, cost, utilization, and maintenance of assets. In day-to-day operations, the EAM application tracks City assets, captures inventory for departments, schedules maintenance tasks, and provides the necessary data for strategic planning of critical infrastructure replacements.
The EAM application was competitively let and originally implemented in 2013 for the Water and Sewer Utilities Department. The solution proved successful and as a result Public Works Building Maintenance Division, Parks & Recreation Department and Silicon Valley Power have adopted the software.
The original agreement that covered the implementation described above termed out in 2019. Staff has been issuing purchase orders for ongoing software support and maintenance services. To date, the City has invested approximately $365,000 for the EAM application.
The purpose of this report is to request authorization to enter into a master agreement with CentralSquare Technologies, LLC to provide professional services required for product integration and configuration to further expand the EAM PROGRAM for use by various Departments throughout the City and memorialize the terms of the software license and ongoing support and maintenance services.
DISCUSSION
Staff is requesting authority to execute a Master Agreement with CentralSquare to further expand the system for use throughout the City. The Master Agreement has three major components as follows:
Professional Services for Product Integration and Configuration
The maximum compensation of $250,000 for professional services over the initial five-year term of the agreement as required to expand the system for future utilizations Citywide. The initial project under the new agreement will be to implement the EAM application for the Public Works Tree, Traffic Signs & Markings, Streets, Sidewalk, Curb & Gutter, and Storm Drain Maintenance Divisions which has an estimated cost of $43,000. In addition, individual service orders will be issued for City Departments as new requirements are identified, scoped, and funding secured.
Ongoing Software Maintenance and Support
The cost for annual software support and maintenance is $31,184 in year 1 for a total of $172,312 (inclusive of the maximum 5% annual rate increases) over the initial five-year term. This cost is subject to change over the term of the agreement if additional software licenses are purchased.
Additional Software Licenses
The City currently owns a sufficient number of concurrent software licenses. In the event additional user licenses are required, the cost is $2,000 per license which is subject to annual increases no greater than 5%.
This recommendation is consistent with the single/source criteria in Section 2.105.160(b)(2) of the City Code “When required to ensure operation or function to match other products with respect to repair, expansion, or completion of a system, existing structure or program currently in use by the City, including, but not limited to, utility and technology purchases required to achieve interoperability with existing systems or programs.”
Staff benchmarked pricing with other government agencies as well as previous implementations at the City. Staff validated that the pricing for software and related professional services is fair and reasonable.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Funding for these services is available in various departmental budgets. Professional integration services for system expansion will be executed by issuing service orders and are subject to appropriation of funds.
Software support and maintenance services is $31,184 in year 1 for a total of $172,312 over the initial five-year term. The five-year total assumes the maximum rate increase of 5% are exercised each year.
COORDINATION
This report was coordinated with the Water & Sewer Utilities, Public Works Department, Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute a Master Agreement with CentralSquare Technologies, LLC for Enterprise Asset Management Software and Services to provide professional services for software implementation and configuration for an initial five-year term starting on or around May 1, 2021 and ending on or around April 30, 2026, with maximum compensation not to exceed $250,000, subject to the appropriation of funds;
2. Authorize the City Manager to execute Purchase Orders with CentralSquare Technologies, LLC for ongoing software support and maintenance services at the rate of $31,184 in year 1, subject to a maximum rate increase of 5% per year, for an estimated total of $172,312, assuming 5% increases are exercised each year, subject to the annual appropriation of funds and the terms and conditions of the Master Agreement;
3. Authorize the City Manager to execute Purchase Orders with CentralSquare Technologies, LLC for the purchase of additional concurrent software licenses as may be required (currently at $2000 per license), and to adjust the rate for ongoing software support and maintenance services associated with the purchase of additional software licenses (currently at $400 per license per year), subject to the appropriation of funds and the terms and conditions of the Master Agreement; and
4. Authorize the City Manager to execute one-year renewals to extend the term of the Master Agreement after the initial five-year term as may be required, subject to the appropriation of funds.
Staff
Reviewed by: Gaurav Garg, Director of Information Technology/CIO
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. CentralSquare Solutions Agreement