TO: Mayor and Members of City Council
THRU: Jeffrey Yates, ICMA-CM Assistant City Manager
FROM: Willie Henry, Chief Information Officer
DATE: November 9, 2026
RE:Title
Approve Sole-Source Procurement and Three-Year Agreement with Esri for Geographic Information System (GIS) Software and Services ($390,783).
Title
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V: Financially Sound City Providing Exemplary City Services. The agreement supports reliable, coordinated City services by maintaining the geographic information system (GIS) used for infrastructure management, public safety, permitting, service delivery, and public access to information. Enterprise licensing also provides a consistent technology platform across departments and reduces the administrative burden of maintaining separate software licenses.
Executive Summary:
The Information Technology Department requests that City Council approve a sole-source procurement from Environmental Systems Research Institute, Inc. (Esri) and authorize a three-year Small Government Enterprise Agreement for GIS software, maintenance, technical support, and 30 training days per year. The total agreement amount is $390,783, payable in annual installments. FY 2027 funding of $128,541 is available in the adopted budget; payments in FY 2028 and FY 2029 are subject to future appropriations.
GIS is the City’s central mapping and location-data platform. It supports the public Open Data Portal and location-based functions used by the online development portal (IDT), Cityworks, and other City applications. Esri’s July 13, 2026 letter identifies the company as the sole domestic provider of this particular government enterprise agreement, including associated deployment rights and maintenance.
Background:
The City has maintained an Esri enterprise agreement since 2012. GIS associates information about streets, properties, facilities, utilities, and other assets with geographic locations, allowing departments to share consistent information for planning, field operations, permitting, and public services. The existing enterprise agreement is reported to expire November 11, 2026.
The proposed agreement makes specified Esri products available across eligible City departments, employees, and in-house contractors, subject to product-specific licensing limits. It includes software updates, vendor technical support, and 30 days of training each year. City staff will continue to provide first-level support and coordinate with Esri for escalated technical support.
Issues/Analysis:
Sole-source basis. N.C.G.S. § 143-129(e)(6) permits an exception to competitive bidding when the required product is available from only one source and the governing board approves the purchase. Esri states that it alone supplies the Small Municipal and County Government Enterprise Agreement for domestic customers and the associated organization-wide copying and deployment rights, and that it is the only domestic source of Esri maintenance. Its letter notes a limited reseller exception for a separate cloud-based agreement available to communities with fewer than 15,000 residents.
Operational importance. The agreement maintains the software platform on which the City relies for its Open Data Portal, development mapping, Cityworks authentication and asset-management functions, and other GIS-connected systems. An interruption in licensing or support could disrupt these services, although the precise effects and timing would depend on the systems involved and any transitional arrangements.
Value and alternatives. Enterprise licensing provides a common software and support arrangements for multiple departments. Individual licensing could require additional administration and a different mix of entitlements. The proposed training component totals $100,920 over three years and is separately identifiable in the vendor quote. Removing training or changing the license structure would require a revised vendor proposal before resulting savings or service effects could be confirmed.
Budget Impact:
The total cost of the three-year agreement is $390,783, including $270,900 for software subscriptions, $100,920 for 90 days of staff training over the contract term, and $18,963 in stated sales tax. The annual software subscription cost remains $90,300 each year, while training costs increase annually.
The FY 2027 cost is $128,541, consisting of $90,300 for software, $31,920 for 30 days of training, and $6,321 in sales tax. The FY 2028 cost is $130,221, consisting of $90,300 for software, $33,600 for training, and $6,321 in sales tax. The FY 2029 cost is $132,021, consisting of $90,300 for software, $35,400 for training, and $6,321 in sales tax.
Funding for FY 2027 is available in account 8237100 (Software). The FY 2028 and FY 2029 installments are subject to annual City Council appropriations. The proposed City contract includes a non-appropriation provision allowing termination at the end of the then-current annual subscription term if sufficient funding is not provided. No additional appropriation is requested as part of this action.
Options:
1. Approve the sole-source procurement and three-year agreement as recommended, subject to final confirmation of the agreement documents.
2. Direct staff to obtain a revised quote excluding or reducing training and return for consideration. Any savings and changes to the agreement would require vendor confirmation.
3. Defer or decline approval and direct staff to evaluate alternative licensing and service-continuity arrangements, recognizing the risk of disruption after the existing agreement expires.
Recommended Action::Recommended Action
Staff recommends that City Council approve the sole-source purchase of a three-year Enterprise Agreement with Esri in the total amount of $390,783, with annual payments averaging approximately $130,000, subject to annual appropriation of funds; authorize the City Manager to execute the agreement, subject to legal review; and authorize the Finance Department to make the necessary budgetary and accounting adjustments consistent with the approved appropriations.
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Attachments:
1. Esri Sole Source Letter
2. Esri Quote / Enterprise Agreement