Title
Agreement for Hosting, Maintenance, and Subscription Services with Accela, Inc. [Published for 10-Day Review 06/14/2024]
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FileID
File ID: 2024-00899
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s Designee to execute an agreement with Accela, Inc. for software services for building permit processing and other related planning services for a period of three years for a not-to-exceed amount of $1,950,465 with a two additional one-year options for a total not-to-exceed amount of $3,453,622.
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Contact
Contact: Monica Chao, Administrative Analyst, (916) 808-5875, mchao@cityofsacramento.org; Frances Chong, Program Manager, (916) 808-5010, fchong@cityofsacramento.org; Community Development Department; Mrudul Sadanandan, Assistant Director, (916) 808-7894, msadananadan@cityofsacramento.org; Information Technology Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Agreement with Accela, Inc.
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Description/Analysis
IssueDetail
Issue Detail: In June 2021, the City entered into a contract (2021-0600) with Accela, Inc. for permit software hosting, maintenance, and subscription services utilized by multiple City departments. The City has been grandfathered into legacy costs for the duration of the current contract, which is set to expire on June 27, 2024.
Staff is requesting City Council approval to enter into a new agreement with Accela for a period of three years with two option years for ongoing hosting, maintenance, and subscription services in an amount not-to-exceed $3,453,622.
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PolicyConsiderations
Policy Considerations: 1) City Code 3.64.020 requires City Council approval to execute agreements for professional services in the amount of $250,000 or more. 2) The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This contract was published for a 10-day review on June 14, 2024 as required. 3) Accela has served as the primary building permit services software used by the City for almost two decades. Significant time and investment have been dedicated to enhancing the permit software. Given the extensive history and investment, transitioning to a new software service provider within a limited timeframe and resources would disrupt the City’s operations. Therefore, a formal competitive solicitation process was not pursued for this contract. 4) The recommendations in this report are consistent with Title 3 of the Sacramento City Code, Chapter 3.64, Purchase of Professional Services.
EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines15060(c)(3)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Accela has been the primary technology provider for the City’s permitting process since 2005, with the Community Development Department and other City departments relying on its services to ensure uninterrupted service delivery to customers. The significant investment of time and City resources in enhancing the software and training staff makes transitioning to a new system unfavorable due to time constraints and lack of resources. Without this contract, crucial functions serving the public would cease. Therefore, continuing the contract with Accela for services and support ensures uninterrupted services to the public.
Contract negotiations for the same level of services began in January 2024 and concluded with an agreed-upon rate in April 2024, with a cost per user of $1,200 for the first-year contract term with a 6% escalation for future years. In comparison, recent negotiations with other California jurisdictions have shown a higher per-user basis payments, as provided by Accela:
While negotiating with Accela, City staff also collaborated with an authorized reseller of Accela software products to obtain a quote using their NASPO ValuePoint cooperative purchase agreement. However, direct negotiation with Accela resulted in a more favorable pricing model, prompting the City to engage directly with them to finalize the contract pricing terms.
In the near future, the City will assess cost-effective solutions for permit software services. This includes determining whether to continue with Accela or explore other service providers. Staff will collaborate with local jurisdictions to issue a request for information to research available alternatives and pricing. The goal is to secure the most favorable pricing for permit software services that meet the City’s needs, with potential for other jurisdictions to utilize the contract. If a new permit software provider is selected, City staff will require adequate time to negotiate a contract, execute implementation, conduct testing, and validate the system to ensure a seamless transition without causing interruptions to City services. Therefore, staff recommends approving a new contract with Accela until City staff can complete all necessary steps to ensure a smooth transition if a new permit software service is selected.
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FinancialConsiderations
Financial Considerations: There is sufficient funding in the Community Development Department’s project budget I21000800 for the continuation of Accela services for the first year. Services after the first year are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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Background
Background:
- In May 2005, the City Council approved professional services contract 2005-0061, which was an upgrade from the Permits Plus system to the Accela Automation system.
- In October 2005, supplemental agreement 2005-0061-1 was approved, which changed the payment plan related to the implementation of the new system.
- In May 2008, in an effort to bring hosting in house, Amendment 2005-0061-2 was approved, which purchased an Accela Enterprise license.
- In December 2008, amendment 2005-0061-3 was approved. This was for annual hosting services for the period from July 1, 2008 to June 30, 2009.
- In June 2009, amendment 2005-0061-4 was approved. This was for annual hosting services for the period from July 1, 2009, to June 30, 2010.
- In May 2010, the City Council approved a professional services contract, 2010-0374, for an annual hosting and maintenance services for five years, July 1, 2010 to June 30, 2015.
- In June 2015, the City Council approved a professional services contract, 2015-0877 for an annual hosting and maintenance services for five years from July 1, 2015 through June 30, 2020. Two supplemental agreements were completed to Agreement 2015- 0877 regarding the Right-of-Way module. City Council originally approved the maintenance, hosting, and subscription services of Accela on June 9, 2015 for five years (contract 2015-0877).
- In May 2020, City Council approved a third supplemental agreement to professional services contract, 2015-0877 to continue provision of maintenance, hosting, and subscription services for one additional year under the current terms and conditions for a cost of $439,776.
- In June 2021, the City Council approved contract 2021-0600, for annual subscription, hosting, and maintenance services for the period from May 28, 2021 - May 27, 2024. In May 2024, a supplemental agreement was approved to extend the time of performance through June 27, 2024.
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