REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Services with e-Builder, Inc. for a Capital Projects Management System and Approve Related Budget Amendment
Report
BACKGROUND
City staff manages approximately 225 Capital Improvement Program (CIP) projects with the majority of the projects being administered by the Electric Utility Department, Public Works Department, and Water and Sewer Utilities Department. The project scopes of these projects widely vary and require extensive monitoring, scheduling, budgeting and reporting. Currently, staff utilizes Microsoft Office products to manage project design and construction processes, and other software applications, such as PeopleSoft Financials, to order materials and process payments. These products are inadequate to efficiently handle the City’s CIP projects. With an appropriated CIP budget of approximately $83 million for Fiscal Year 2018-2019, and $510 million expected over the next five (5) years, it is critical the City acquire a projects management system to integrate project phases, schedules, budgets, funding, project payments and stakeholders.
DISCUSSION
On August 28, 2018, staff issued a Request for Proposal (RFP) for a capital projects management system and nine (9) proposals were received. The proposals were evaluated by staff from the City Manager’s Office, the Electric Utility Department, Public Works Department, and Water and Sewer Utilities Department. After the team’s initial evaluation of the proposals, City staff interviewed the top three finalists (Aurigo Software Technologies Inc., e-Builder, Inc., and HKA Global, Inc.) and selected e-Builder, Inc. as the finalist.
e-Builder, Inc. was selected for several reasons, including but not limited to:
• Experience at comparable municipalities
• Robust implementation process that includes integration with City’s financial system, PeopleSoft Financials
• Data migration/interoperability capabilities
• System administration will be provided in the annual software subscription that includes unlimited projects, unlimited document storage, maintenance releases and 24x7 technical support
• Data security as e-Builder integration specialists will work with City to securely exchange data with on-premise applications through the use of external and internal firewalls
• Ability to meet the City’s software requirements for usability.
The system will be utilized by City staff and contractors and both parties will be able to communicate directly through the system and provide real-time project updates, including while out in the field. In addition, the system has a comprehensive and diverse reporting system which will accurately produce project performance reports and forecasts. This system is aligned with the 2019 Council Goals and Priorities and will streamline the City’s work management system, enhancing the City’s capabilities to deliver high quality services. e-Builder, Inc. is proposed to launch in spring 2019 and the implementation will begin in late 2019 and will extend into 2020.
The proposed Agreement includes the City’s standard hold harmless/indemnification requirements, but does include a limitation of liability for claims of personal injury and property damage caused by gross negligence or willful misconduct, breach of confidentiality, and intellectual property infringement. The limitation of liability is equal to up to twelve months subscription fees or $154,642. This limitation of liability is greater than neighboring jurisdictions, which had limits of one (1) month or six (6) months of subscription fees.
Staff has negotiated the first five years for implementation and annual license fees and therefore recommends entering into a five-year Agreement for Services with e-Builder, Inc.
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 total cost of the Agreement for Services with e-Builder, Inc. is $1,015,490, including $205,440 for implementation, $36,800 for as-needed travel and related expenses, and $154,642 for software licensing per year over the initial five-year term. Year one (FY 2018/19) cost is $396,882, which will be paid from Electric Utility Capital Improvement Program Fund, Project Operations and Planning Technology (591-2395). As e-Builder will be used by Electric Utility Department, Public Works Department, and Water and Sewer Utilities Department, funding for this Agreement will be shared equally between the three departments.
Total Year 1 Investment - $396,881.24
Total Year 2 Investment - $154,641.87
Total Year 3 Investment - $154,641.87
Total Year 4 Investment - $154,641.87
Total Year 5 Investment - $154,641.87
Total Initial Term Investment - $1,015,448.74
The Public Works Department and Water and Sewer Utilities Department have not previously budgeted for implementation of e-Builder in FY 2018/19; therefore, the budget amendment recommended below transfers the equal shared costs ($132,627) from the Water and Sewer Capital Improvement Program funds and the General Fund Capital Project reserves for this cost. These amounts will be transferred into the Electric Utility Capital Improvement Program (CIP) Fund to cover the project costs, as discussed above.
Budget Amendment
FY 2018/19
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Utility Capital Fund (592) |
|
|
|
|
Transfers Out |
|
|
|
|
Transfer to the Electric Utility Capital Fund |
$0 |
$66,313 |
$66,313 |
|
Reserves |
|
|
|
|
Ending Fund Balance |
$2,529,272 |
($66,313) |
$2,462,959 |
|
|
|
|
|
|
Sewer Utility Capital Fund (594) |
|
|
|
|
Transfers Out |
|
|
|
|
Transfer to the Electric Utility Capital Fund |
$0 |
$66,314 |
$66,314 |
|
Reserves |
|
|
|
|
Ending Fund Balance |
$26,178,020 |
($66,314) |
$26,111,706 |
|
|
|
|
|
|
General Fund Reserves (063) |
|
|
|
|
Transfers Out |
|
|
|
|
Transfer to the Electric Utility Capital Fund |
$0 |
$132,627 |
$132,627 |
|
Reserves |
|
|
|
|
Capital Project Reserve |
$24,768,836 |
($132,627) |
$24,636,209 |
|
|
|
|
|
|
Electric Utility Capital Fund (591) |
|
|
|
|
Transfers In |
|
|
|
|
Transfer from the Water Capital Fund |
$0 |
$66,313 |
$66,313 |
|
Transfer to the Sewer Capital Fund |
$0 |
$66,314 |
$66,314 |
|
Transfer to the General Fund Capital Projects Reserve |
$0 |
$132,627 |
$132,627 |
|
Reserves |
|
|
|
|
Ending Fund Balance |
$4,933,496 |
$265,254 |
$5,198,750 |
It is important to note that these costs do not reflect staff time required to implement e-Builder. Staff will propose additional funding as part of the budget process for internal implementation. If this funding is not approved, the City would still implement e-Builder but the transition period would be extended.
COORDINATION
This report has been coordinated with the City Manager’s Office, City Attorney’s Office, Risk Manager, Department of Public Works, Water and Sewer Utilities Department, and 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve and authorize the City Manager to execute an Agreement for Services with e-Builder, Inc. for a capital projects management system, in an amount not-to-exceed $1,015,490 and approve Related Budget Amendment.
Staff
Reviewed by: Manuel Pineda, Assistant City Manager/Interim Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement for Services