REPORT TO COUNCIL
SUBJECT
Title
Action on an Amendment to an Existing Agreement with Accela, Inc. for Land Management Software and the Related Budget Amendment
Report
BACKGROUND
The City uses Accela’s Civic Platform, a centralized software-as-a-subscription services solution to manage its diverse land management operations. This platform enables the City to offer a variety of online services, including processing permit applications, payments, plan reviews, code enforcement, and inspection scheduling.
Since its implementation in 2021, the City has expanded its use of the platform to provide a variety of new services including processing and tracking of site clearances, maintaining subdivision maps and title documents, fee collections and meter release processing, abandoned vehicle reporting, computer-aided dispatch audio requests for law enforcement, and special events permitting.
The City Council originally approved the agreement with Accela on August 21, 2018, for the technical and professional services related to the software integration and ongoing license usage. This agreement authorized a maximum compensation of $1,218,660 over an initial five-year term ending August 28, 2023, with options to renew for up to two additional one-year terms.
On December 7, 2021, through RTC # 21-1484, the City Council authorized the City Manager to execute Amendment No.1 to extend the term through November 29, 2025, and increase compensation by $1,420,640, for a revised maximum of $2,639,300, to support the purchase of up to 100 additional licenses.
On June 25, 2024, through RTC # 24-1141, the City Council authorized the City Manager to execute Amendment No. 2 to increase compensation by $235,872 for a revised maximum compensation of $2,875,172 for the purchase of up to another 100 additional licenses.
As the current agreement expires on November 29, 2025, this item presents for Council consideration Amendment No. 3 to extend the agreement for five additional years, increase the maximum allowable license quantities available for purchase, and make related changes to pricing and terms.
DISCUSSION
The City’s use of Accela’s Civic Platform is based on a licensing model that has evolved to meet the City’s needs. Individual employees are granted unlimited access to the software through a unique Named User License. As the City’s use of the platform has expanded, additional licenses have been purchased to support new users and operations.
To accommodate the staggered, shift-based work schedules of Fire Department personnel, Accela created a specialized version of the Named User License, referred to as the Fire Enterprise Device License. This license provides the same services as the Named User License, but at a reduced cost, ensuring the City is not paying full price for individual licenses that are only used for a fraction of the time of a standard license.
Under the current agreement, the City can activate up to 281 Named User Licenses and 59 Fire Enterprise Device Licenses per year. After reviewing current usage and future needs, the City has determined that over the next five years it will require up to 310 Named User Licenses and 50 Fire Enterprise Device Licenses annually to support existing operations, developing projects, and anticipated departmental growth.
The City also subscribes to Accela Citizen Access, the public-facing online system that allows citizens to create an account. This account enables them to interact directly with the platform’s various services using a web based online portal.
As the current agreement expires on November 29, 2025, the City is recommending Amendment No. 3 to extend the contract for five additional years, through November 29, 2030, and increase the maximum allowable license quantities available for purchase in each annual term. This extension would increase the total compensation by $4,153,609 for a revised maximum compensation of $7,028,781. This multi-year extension allowed the City to negotiate annual price escalations down from 5% per year to 3% for the first two years of the contract and 5% for the remaining three years, resulting in cost savings of approximately $135,000. The maximum annual cost per subscription service is further detailed in Table 1 below.
Table 1 - Maximum Annual Cost (2025-2030)
|
Term |
Citizen Access (Max. 1) |
Named User (Max. 310) |
Fire Enterprise (Max. 50) |
Maximum Annual Cost |
|
11/30/25 - 11/29/26 |
$15,950.94 |
$681,690.00 |
$65,970.50 |
$763,611.44 |
|
11/30/26 - 11/29/27 |
$16,429.47 |
$702,140.70 |
$67,949.50 |
$786,519.67 |
|
11/30/27 - 11/29/28 |
$17,250.94 |
$737,248.20 |
$71,347.00 |
$825,846.14 |
|
11/30/28 - 11/29/29 |
$18,113.49 |
$774,110.30 |
$74,914.50 |
$867,138.29 |
|
11/30/29 - 11/29/30 |
$19,019.16 |
$812,813.80 |
$78,660.00 |
$910,492.96 |
|
Maximum Five-Year Total |
$4,153,608.50 |
Although the City’s standard service agreement usually contains a “termination for convenience” clause, which allows the City to terminate a contract for any reason upon 30 days’ notice, for this renewal, Accela requested that the City delete its standard language and instead agree to termination only in the event of default or non-appropriation of funds. The City understands that deleting the “termination for convenience” clause is appropriate for this specific renewal, given the system’s foundational role in municipal operations and the substantial costs associated with transitioning away from a platform of this complexity on short notice.
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
The contract amendment will extend the term through November 2030 and increase the maximum compensation by $4,153,609 for a revised maximum compensation of $7,028,781. Funding for the Accela contract is budgeted in the Non-Departmental section of the General Fund and is supported by the Technology Fee.
Staff recommends the following budget amendment in the General Fund to account for the costs associated with the new maximum licensing amounts in Amendment No. 2, funded by the use of the Technology Fee Reserve.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Expenditures |
|
|
|
|
Non-Departmental |
$38,861,319 |
$68,790 |
$38,930,109 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Technology Fee Reserve |
$2,355,271 |
($68,790) |
$2,286,481 |
The increases identified in the outyears of the agreement will be factored into the operating budget as part of the budget cycle.
COORDINATION
This report has been coordinated with the Finance Department.
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 3 to the Agreement with Accela, Inc. to extend the term by five years through November 29, 2030, and increase the maximum compensation by $4,153,608.50 for a revised maximum compensation of $7,028,780.75;
2. Authorize the City Manager or designee to negotiate and execute future amendments as needed to (1) add, modify, or delete services and (2) make de minimis changes, all subject to the total maximum compensation, appropriation of funds, and review and approval as to form by the City Attorney; and
3. Approve the FY 2025/26 budget amendment in the General Fund to increase the Non-Departmental appropriation in the amount of $68,790 and decrease the Technology Fee Reserve in the amount of $68,790 (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Afshan Hamid, Community Development Director
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. 2018 Original Agreement with Accela, Inc.
2. 2021 Amendment No. 1 to Agreement with Accela, Inc.
3. 2024 Amendment No. 2 to Agreement with Accela, Inc.
4. 2025 Amendment No. 3 to Agreement with Accela, Inc.