Explanation
Background: This ordinance authorizes the Director of Public Utilities to renew and increase a contract with Azteca Systems, LLC to provide software for the Cityworks Asset Management System (AMS). The contract amount being authorized by this ordinance is $556,860.00.
Cityworks AMS will be a department wide Asset Management solution and will replace Oracle WAM. The software contract is an annual Enterprise licensing agreement that includes cloud-hosting services. The Cityworks solution will modernize our Work and Asset Management program by enabling best practices and GIS to empower DPU to better track, maintain and manage assets across our entire organization. Cityworks provides three hosting environments, which include one each for testing, production, and development. The Department of Public Utilities will have 718 licenses and the Division of Fire will have 282 licenses. the Division of Fire will be using these licenses in collaboration with the Division of Water to support the maintenance and inspection process for Fire Hydrants across the City. Each Cityworks license costs $821.00 and the Department of Public Utilities is provided a different discount percentage for the four successive years. For this renewal the discount is 34%, making the cost per user $541.86. In year two the discount is 25%, in year three the discount is 12%, and finally, in year four the discount is 5%.
Due to a Request for Proposal (RFQ018791) that was published for the Department of Public Utilities (DPU) to obtain an Asset Management System, Woolpert, Inc. was the awarded firm and the software solution they chose in the proposal was Cityworks. It has been determined that establishing one contract for services with Woolpert, Inc. and one contract for software directly with Azteca Systems, LLC (Cityworks) is the best path forward, and it is in the best interest of the City to waive the provisions of competitive bidding and enter into a contract with Azteca Systems, LLC.
The original contract (PO356535) was established in accordance with the pertinent provisions to waive for competitive bidding of Chapter 329 of the Columbus City Code and authorized with Ord. 2517-2022. Services under the original contract cover a one (1) year period from date of execution with the option to renew annually for an additional five (5) years on a year-to-year basis, or a portion thereof, based on mutual agreement of the parties, availability of budgeted funds and approval of Columbus City Council. This renewal No. 2 is to provide the necessary funding for the continuation of the Cityworks Asset Management System. This proposed renewal No. 2 is for year three (3) of the contract and to extend the contract through 11/13/2025 and add $556,860.00. Total amount including this renewal is $1,358,860.00. This contract shall not automatically renew. All other terms and conditions of the original agreement remain in full force and effect. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be requested.
1. Amount of additional funds: Total amount of additional funds needed for this contract renewal No. 2 is $556,860.00. Total contract amount including this renewal is $1,358,860.00.
2. Reason additional funds were not foreseen: The need for additional funds was known and provided for at the time of the initial contract award. This is a planned renewal.
3. Reason other procurement processes were not used: Work under this renewal No. 2 is a continuation of services included in the scope of the original bid contract. No lower pricing/more attractive terms and conditions are anticipated at this time.
4. How was cost determined: The cost, terms, and conditions are negotiated based on the quantity of users. The cost for this renewal was provided by written quotation and is $556,860.00.
Principal Parties:
Azteca Systems, LLC
11075 South State Street, Suite 24
Sandy, UT 84070
Michael Romano, (262) 751-6767
Contract Compliance Number: 041096
Contract Compliance Expiration Date: 04/11/2026
Emergency Justification: The negotiations regarding the licensing count and costs to include the Department of Public Utilities users and the Division of Fire users involved additional planning, scheduling, and conversations beyond what was anticipated. Emergency action is required to keep our licensing current and under the Software as a Service (SaaS) model, this contract provides us with access to the system, as well as hosting fees and support. Access to the system ensures there are not interruptions to the configuration and testing phases of the Cityworks implementation project, which are scheduled to start in early November.
Fiscal Impact: $556,860.00 is budgeted and available from within the Public Utilities Operating Funds to meet the financial obligations of this contract.
$421,000.00 was spent in 2023
$381,000.00 was spent in 2022
Title
To authorize the Director of Public Utilities to renew and increase a contract with in accordance with the pertinent provisions to waive competitive bidding of Columbus City Code, with Azteca Systems, LLC. for the software for the Cityworks AMS System for the Department of Public Utilities; to authorize the expenditure of $556,860.00 split between the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds; and to declare an emergency. ($556,860.00)
Body
WHEREAS, the Department of Public Utilities wishes to renew and increase PO356535 with Azteca Systems LLC for the Cityworks Asset Management System (AMS) software that will become a department wide Asset Management solution and will replace Oracle WAM; and
WHEREAS, due to a Request for Proposals RFQ018791 that was published for DPU (RFQ018791) to obtain an Asset Management System, Woolpert was the awarded firm and the software solution they chose in the proposal was Cityworks. It has been determined that establishing one contract for services with Woolpert and one contract for software directly with Azteca Systems, LLC (Cityworks) is the best path forward, and it is in the best interest of the City to waive the provisions of competitive bidding (City Code, Chapter 329) and enter into a contract with Azteca Systems, LLC.; and
WHEREAS, the contract amount will be utilized to provide software under this contract related to the Cityworks Asset Management System for use throughout the Department of Public Utilities; and
WHEREAS, the original term of the contract was for a period of one (1) year from the date of execution by the City of Columbus, with yearly renewal options for an additional five (5) years, on a year-to-year basis, based on funding availability, mutual agreement between the City and the vendor, approval by ordinance of Columbus City Council, and appropriation and certification of funds by the City Auditor. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be required and is subject to and conditioned upon the approval of City Council, and appropriation and certification of funds by the City Auditor. This proposed renewal No.2 is for year three (3) of the contract. This contract shall not automatically renew; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Public Utilities in that it is immediately necessary to authorize the Director to enter into an agreement with Azteca Systems, LLC to provide software for Cityworks Asset Management System in order to maintain access to the system without interruption all for the preservation of the public health, peace, property, safety, and welfare and, NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Public Utilities be and is hereby authorized to renew and increase the contract (PO356535) for Cityworks Asset Management System with Azteca Systems, LLC , 11075 South State Street #24, Sandy UT 84070, in accordance with the terms on file in the office of the Department of Public Utilities.
SECTION 2. That this renewal No.2 is in accordance with the relevant provisions of City Code, Chapter 329, relating to contract modifications and renewals.
SECTION 3. That this Council finds it in the City's best interest to waive the competitive bidding provisions of City Code, Chapter 329 for the contract with Azteca Systems, LLC.
SECTION 4. That the expenditure of $556,860.00 or so much thereof as may be needed, is hereby authorized per the accounting codes in the attachment to this ordinance.
SECTION 5. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 7. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.