REPORT TO COUNCIL
SUBJECT
Title
Action on Addendum 5 to Software License Agreement Contract No. 2005-204 with Telvent USA LLC to Extend the Term of the Currently-Installed GIS System to April 22, 2026 and Increase Maximum Compensation for Enterprise-wide Software Licenses by $225,000 (Silicon Valley Power)
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In July 2005, Council authorized the City Manager to execute an agreement with Miner & Miner, a Telvent company, entitled “Telvent USA LLC Software License Agreement Contract No. 2005-204” (Agreement) for a new Geographic Information System (GIS) for the Electric Department, Silicon Valley Power (SVP). The new GIS application replaced paper maps to enable SVP to create, store, and visualize information associated with SVP’s electric infrastructure. This information is then used to (a) map, analyze, and plan new developments, (b) plan, monitor, and respond to outages, and (c) integrate with other solutions for activities such as utility pole loading calculations and survey poles in the SVP network.
In 2013, Council authorized Addendum 1 to the Agreement. This addendum converted the existing software license arrangement from “per-seat” license to an enterprise-wide license to permit more users to have access to the data and software tools at a lower cost. Addendum 1 was for a three-year term from April 23, 2013 through April 22, 2016, with a three-year cost of $217,500.
In 2016, the City Manager executed Addendum 2 to extend the term for three-years from April 23, 2016 to April 22, 2019 and authorized additional funding of $210,000 for services during that three-year period. During this period, Schneider Electric acquired Telvent.
In 2019, the City Manager executed Addendum 3 extending the term for one-year from April 23, 2019 to April 22, 2020 and authorizing additional funding of $60,000 for services during that one-year period.
In 2020, the City Manager executed Addendum 4 extending the term for a three-years from April 23, 2020 to April 22, 2023 and authorizing additional funding of $180,000 for services during that three-year period.
Since 2013, SVP has spent approximately $667,500 for the enterprise licenses for the Agreement and its addendums. Since the end of the term of Addendum 4, Schneider has provided temporary licenses to SVP. The purpose of this report is to request authorization to renew and extend the term of the Agreement to enable SVP to continue to use the enterprise-wide licenses from Schneider Electric.
DISCUSSION
Schneider Electric’s GIS software is a leader in utility management and SVP has invested significant capital and staff hours to build and optimize SVP’s data on this platform. There are no plans to replace this software as it fully meets the needs of SVP. Replacing it would incur high costs and require significant staff hours without providing any additional benefits. However, based on components of the GIS system that may require additional upgrades or changes, staff may consider a new system in 2026. At that time, staff will evaluate whether the Schneider Electric solution will be continued or whether a new solution will be procured and implemented. In the event that the City elects not to continue the Schneider Electric Solution, there is no obligation to renew at the end of the term in 2026 provided that the City is no longer using the software.
Staff recommends that City Council authorize the City Manager’s to execute Addendum 5 to the Agreement (Addendum 5). This will allow the extension of the agreement years through April 22, 2026. The proposed Addendum 5 memorializes the name change from Telvent to Schneider Electric, extends the term for three additional years, updates the annual software license fee to include fees for services during the extended three-year term, and makes other minor changes. Approval of Addendum 5 would increase the total compensation for enterprise-wide licenses to $892,500. Staff recommends that the City Council authorize the City Manager to negotiate and execute future addenda to extend the term up to three additional years so that (1) SVP can continue its use of the software; (2) add/delete functionalities and services for future system requirements. At the time of each renewal cycle or amendment for additional services, staff reviews pricing to ensure increases are appropriate.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15060(c)(2) of Title 14 of the California Code of Regulations as it will not result in a direct or reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The total cost of Addendum No. 5 is $225,000 over a three-year period. Funding for the first year of the agreement is $75,000. Sufficient funds are available in Electric Utility Fund in the FY 2023/24 Adopted Operating budget SVP Systems Support program.
Funding for future years will be included in future proposed operating budgets through the budget process.
COORDINATION
This report has been coordinated with the Finance Department and 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> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Addendum 5 to the Software License Agreement Contract No. 2005-204 with Schneider Electric Smart Grid Solutions, LLC, to extend the term of the currently-installed GIS system to April 22, 2026 and increase compensation by $225,000 for a revised maximum compensation of $892,500 for enterprise-wide licenses; and
2. Authorize the City Manager to negotiate and execute future addendums to (a) extend the term of the agreement for up to three additional years through April 22, 2029; (b) adjust rates based on number of users or as part of an extension of term; and (c) add/delete functionalities and services required to support future system requirements, for a total maximum compensation amount not-to-exceed $1,500,000 subject to budget appropriations and review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Miner And Miner Software License Agreement Contract No. 2005-204
2. Addendum 1 to Telvent USA LLC Software License Agreement
3. Addendum 2 to Telvent USA LLC Software License Agreement
4. Addendum 3 to Telvent USA LLC Software License Agreement
5. Addendum 4 to Telvent USA LLC Software License Agreement
6. Proposed Addendum 5 to Telvent USA LLC Software License Agreement