REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Negotiate and Execute Amendment No. 2 to the Agreement with e-Builder, Inc. for Annual Software Subscription Fees and Associated Services for Capital Project Management Software
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On March 26, 2019, following a competitive Request for Proposals (RFP) process, the City Council authorized the City Manager to execute an agreement with e-Builder, Inc. (e-Builder) for a cloud-based capital project management system. This system enables City staff to manage communication, workflows, scheduling, reporting, and project information in real time for capital improvement projects (CIP) managed by Silicon Valley Power (SVP), Department of Public Works (DPW), and Water & Sewer Utilities Department (WSUD). City staff manages approximately 200 CIP projects, with the majority of those projects administered by SVP, DPW, and WSUD. The scopes of these projects vary widely and require extensive monitoring, scheduling, budgeting, and reporting. The Agreement with e-Builder included the implementation of the system as well as five (5) years of licensing and support services. The term of the agreement with e-Builder is set to expire on March 26, 2024.
On March 9, 2021, the City Council authorized the City Manager to execute Amendment No. 1 to the Agreement to increase the maximum compensation by $134,551.28 for a revised maximum compensation of $1,150,000. This increase was necessary due to additional programming and integration services required to improve efficiency such as to add integration to the City’s Financial System (PeopleSoft) so that financial items such as purchase orders and payments are aligned between the two systems without manual intervention.
DISCUSSION
City staff, contractors, and consultants have utilized e-Builder for the past five years to efficiently manage the City’s CIP projects. e-Builder allows all parties to communicate directly through the system and provide real-time project updates. It has a comprehensive and diverse reporting module which accurately produces project performance reports and forecasts. e-Builder streamlines the City’s work management system and enhances the City’s capabilities to deliver high quality services.
Significant time and resources have been invested by staff to configure the system for managing, tracking, and monitoring the City’s CIP projects. The system is a critical tool in managing the 200 current CIP projects. Therefore, staff recommends extending the term of the agreement by five years through March 26, 2029, and increasing the maximum compensation by $1,000,000 for a revised maximum compensation amount of $2,150,000. Details of the compensation are provided in Table 1 below.
Table 1
|
Cost Element |
Total |
|
Original Contract |
|
|
One Time Deployment Fee Including Travel |
$ 242,239.37 |
|
Software Subscription for Unlimited Users (Years 1-5) |
$ 773,209.35 |
|
Original Maximum Compensation |
$1,015,448.72 |
|
|
|
|
Amendment No. 1 |
|
|
Additional Services/Contingency |
$ 134,551.28 |
|
Revised Maximum Compensation (Amendment No. 1) |
$1,150,000.00 |
|
|
|
|
Proposed Amendment No. 2 |
|
|
Software Subscription for Unlimited Users (Years 6-10) |
$ 869,319.77 |
|
Additional Services/Contingency |
$ 130,680.23 |
|
Revised Maximum Compensation (Proposed Amendment No. 2) |
$2,150,000.00 |
The software subscription fees for years 6 through 10 will increase annually by approximately 4%, which staff has deemed fair and reasonable based on similar professional services agreements. The proposed Amendment No. 2 also includes a contingency of $130,680.23 to support future system requirements, including integration with other City systems and services to facilitate the management of capital projects. SVP will oversee the agreement and will use a work authorization process to ensure that contingency expenditures remain within the authorized contract amount.
Staff requests further authorization for the City Manager to negotiate and execute amendments to this Agreement including increasing maximum compensation up to an additional $100,000 for a total maximum compensation of $2,250,000 subject to the appropriation of funds. Such amendments may include authorizing funding for additional work to create interfaces to PeopleSoft or other software programs, or to build new efficiencies in the capital project management process, or authorizing increases in annual subscription fees due to increases in capital budget.
Approval of the recommendation will enable continued use of the e-Builder system to efficiently manage CIP activities involved in planning, design, and construction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378 (b)(5) of Title 14 of the California Code of Regulations in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The proposed Amendment No. 2 to the Agreement for Services with e-Builder, Inc. would increase the authorized maximum compensation from $1,150,000 to $2,150,000 for annual software subscription and additional enhancements, integration, or related services. As e-Builder will be used by SVP, DPW, and WSUD, funding for this Agreement will be shared between the departments using the software.
Where the proposed additional services are beneficial to multiple departments using e-Builder, the cost of each work authorization will be allocated by departments using e-Builder. In the event an enhancement or service is requested that will only benefit a specific department, the requesting department will pay the costs. Before each work authorization is executed, SVP will work with affected departments to provide costs and proposed cost sharing to assure that each department can absorb their share of costs within the departments existing adopted budgets or take appropriate budget action where needed.
The annual software subscription costs are included in the SVP, DPW and WSUD department operating budgets for FY 2024/25 and shared as follows: SVP - 33%, General Fund Property Development - 8%, Engineering Fund - 24%, Water Utility - 17%, and Sewer - 17%. Costs for future years will be included in the recommended budget for the respective budget cycle.
COORDINATION
This report has been coordinated with the Finance Department 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute Amendment No. 2 to the Agreement with e-Builder, Inc. to extend the term through March 26, 2029, and increase the maximum compensation by $1,000,000 from $1,150,000 to $2,150,000, subject to the appropriation of funds and review and approval as to form by the City Attorney; and
2. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement, including authorization to negotiate and execute further amendments to (a) add or delete services for additional software support services; (b) adjust subscription fees based on capital improvement budget adjustments, and (c) increase maximum compensation up to $2,250,000 for the period ending March 25, 2029, subject to appropriation of funds and review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Original Agreement for Services with e-Builder, Inc.
2. Amendment No. 1 to Agreement for Services with e-Builder, Inc.