REPORT TO COUNCIL
SUBJECT
Title
Action on Subscription License Agreement with Innovative Interfaces, Inc. for Hosting and Maintenance Services for the Integrated Library System for a Total Not-To-Exceed Amount of $1,830,992 Over the Full 11-Year Term
Report
BACKGROUND
The Santa Clara City Library System (Library) relies on an Integrated Library System (ILS) as the foundational technology supporting all core library operations. Through its contract with Innovative Interfaces, Inc. (Innovative), the Library utilizes a comprehensive ILS platform that manages critical functions across the organization. This system maintains records for more than 179,000 patrons, catalogs over 429,000 physical books and digital materials, and processes more than 1.5 million annual circulation transactions, including checkouts and renewals.
The ILS also enables secure access to digital resources and third-party services, supporting both in-library and remote use of offerings such as newspapers, museum passes, eBooks, and streaming media. By consolidating circulation, cataloging, acquisitions and reporting into a single system, the ILS is essential to the Library’s daily operations and service delivery system.
On July 1, 2019, the City entered into a Subscription License Agreement with Innovative for the Sierra ILS, transitioning from a locally hosted system to a cloud-based subscription model. This model provides improved system reliability, security, and vendor-supported maintenance while aligning with industry standards for library technology systems.
On June 23, 2020, the City Council authorized Amendment No. 1 (RTC# 20-199), which extended the Agreement for six additional years through June 30, 2026, with a not-to-exceed amount of $757,489. The amendment also included provisions allowing for the Agreement to automatically renew for up to five additional one-year terms, through June 30, 2031, subject to the annual appropriation of funds.
DISCUSSION
The current term of the Agreement with Innovative for the Sierra ILS will expire on June 30, 2026. Pursuant to the terms previously approved by Council, the Agreement will automatically renew for up to five additional one-year terms through June 30, 2031, unless otherwise terminated by either party. Each renewal year includes a contractually defined cost escalation of 3.5%, which is consistent with industry standards for software-as-a-service (SaaS) platforms and ongoing hosting, maintenance, and support services.
While City Council previously authorized the contract structure, including the auto-renewal provisions, the total funding amount of $757,489 authorized to date only covers the initial six-year term to June 2026. As a result, Council authorization is now required to approve the additional expenditures associated with the five auto-renewing years. This action ensures transparency, maintains fiscal oversight, and aligns with City policy requiring Council approval for multi-year financial commitments that extend beyond previously authorized not-to-exceed amounts.
In addition to the Sierra ILS platform, Innovative also provides INN-Reach services, which supports regional resource sharing and interlibrary lending capabilities among participating library systems. INN-Reach enables Library patrons to directly request, borrow, and return materials through a shared catalog network, significantly expanding access to materials beyond Library’s local collection and enhancing service delivery to the community. Although INN-Reach services have been incorporated as part of the Library’s Sierra environment an ongoing basis, the associated costs were not separately captured in the total not-to-exceed compensation amount authorized under RTC 20-199. This action aligns the costs with the full scope of services currently being provided under the Agreement.
The table below outlines the costs associated with both the initial six-year term and the five additional auto-renewing years, including the 3.5% annual increases, for both the Sierra ILS base subscription and INN-Reach services. The initial six-year costs for the Sierra ILS align with the previously approved not-to-exceed amount of $757,489. The initial six-year costs for INN-Reach total $155,102. The additional five-year costs for both services will not exceed $918,400, bringing the full 11-year total to $1,830,992.
Table 1. Innovative Interfaces, Inc. Costs - 11 Year Total
|
Initial 6 Year Term |
|
Contract Year |
Term Dates |
Sierra ILS Cost (+3.5% annual increase) |
INN-Reach Cost (+ 3.5% annual increase) |
|
Year 1 |
July 2020 - June 2021 |
$115,645 |
$23,679 |
|
Year 2 |
July 2021 - June 2022 |
$119,692 |
$24,508 |
|
Year 3 |
July 2022 - June 2023 |
$123,881 |
$25,366 |
|
Year 4 |
July 2023 - June 2024 |
$128,217 |
$26,254 |
|
Year 5 |
July 2024 - June 2025 |
$132,705 |
$27,172 |
|
Year 6 |
July 2025 - June 2026 |
$137,349 |
$28,123 |
|
|
Initial 6-Year Total |
$757,489 |
$155,102 |
|
Auto-Renewing Terms |
|
Year 7 |
July 2026 - June 2027 |
$142,157 |
$29,108 |
|
Year 8 |
July 2027 - June 2028 |
$147,132 |
$30,127 |
|
Year 9 |
July 2028 - June 2029 |
$152,282 |
$31,181 |
|
Year 10 |
July 2029 - June 2030 |
$157,612 |
$32,272 |
|
Year 11 |
July 230 - June 2031 |
$163,128 |
$33,402 |
|
|
Addtl 5 Year Total |
$762,311 |
$156,090 |
|
|
11 Year Total |
$1,519,800 |
$311,192 |
|
Total Maximum Compensation |
$1,830,992 |
Increasing the maximum allowable compensation to account for the auto-renewal period will ensure uninterrupted access to mission-critical library systems and allow the Library to continue delivering high-quality services to the community without degradation or risk of system failure.
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(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The Library Department operating budget in the General Fund has sufficient funding for this contract in Fiscal Year 2026-27. The contract amount will also be factored into future budgets.
COORDINATION
This report has been coordinated with the Santa Clara City Library 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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize an increase in the maximum allowable compensation amount for the Agreement with Innovative Interfaces, Inc. to account for the five (5) auto-renewing terms of one-year each, for the period of July 1, 2026 through June 30, 2031, in an amount not to exceed $918,401, subject to the annual appropriation of funds, thereby bringing the total not-to-exceed contract amount to $1,830,992.
Staff
Reviewed by: Patty Wong, City Librarian
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Original Agreement - Innovative - Sierra ILS
2. Amendment No. 1 -Innovative - Sierra ILS
3. RTC 20-199 Innovative Interfaces