Title
Recommendation to Authorize the City Manager, or Designee, to Execute an Agreement Amendment with OpenGov, Inc. to Consolidate Three Existing Separate Software License Agreements into One Agreement and Add a New Budget and Planning Module, for an Amount Not to Exceed $195,041 for Year One and an Annual Amount Not to Exceed $134,156 for Years Two through Five, for a Total Five-Year Compensation Not to Exceed of $731,665. (Information Technology 2611)
Bodyody
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
For the last three years, OpenGov has supported the City of Alameda’s (City) community engagement efforts through the Open Town Hall platform and Transparency and Story Builder. In June, 2019, City Council approved the execution of an additional agreement with OpenGov, Inc., for the Communications and Reporting for Citizen Engagement and Operational Performance Solutions.
As part of the Enterprise Resource Planning (ERP) system implementation, which is replacing the City’s current Financial and Human Resources software program, staff recommends purchasing the “Budget and Planning” module. This module includes budget building, workforce planning, and financial integration support. The cost for this module is $54,368 annually. There will also be a one-time OpenGov deployment fee of $56,880. Staff is recommending that funds from the existing ERP project be used to fund the new module. No additional funding is requested in the first year.
Staff is also recommending combining all four software licensing agreements, into one contract with OpenGov in order to streamline tracking and review. This will allow for a single annual payment and one contract expiration date. OpenGov has agreed to waive the annual 4% increase in charges with the move to one contract for all modules licensed.
BACKGROUND
OpenGov is a leader in cloud-based tools built for local government to achieve better budgeting, performance, communications, reporting, and open data that ultimately result in more transparent outcomes for the public.
For the last three years, OpenGov has supported the City’s community engagement efforts through the Open Town Hall platform. This solution helps the City survey and engage our residents on key topics such as transportation choices and climate action strategies.
In January, the City expanded our usage of OpenGov, using the Stories module on a pilot basis to display historical Police Department data and trends in conjunction with our new website launch. This effort received positive community feedback.
The Communications and Reporting module currently being used by the Police Department allows staff to create online dashboards with graphs of relevant data for staff and residents to measure performance and understand data trends. This module allows for a robust electronic interaction with residents, including online polling and detailed storytelling for programs initiated by the City.
The Budget and Planning module will allow staff to streamline and transform the budget process from the initial stages of strategic planning and personnel forecasting while enabling collaboration throughout. OpenGov’s integrated online suite of solutions will aggregate and synchronize financial and non-financial data, allowing the City to plan and manage your strategic initiatives by capturing priorities, tying budgets to initiatives, identifying key outcomes, and engaging stakeholders.
DISCUSSION
Budget Module
Currently, the budget building and planning process is antiquated and is performed manually using several disparate systems such as Excel spreadsheets along with the current financial system
In order to move to a more stable platform to house the City’s budget information, OpenGov has provided a detailed project plan to ensure a smooth rollout and support while staff launch the Budgeting and Planning suite. The three main features of the budget module are:
Budget Builder: This feature will allow for the efficient development of the operating and capital budget while promoting communication and collaboration between internal stakeholders from initial budget stages to adoption and online budget book making the City’s budget more transparent to the public. Currently the budget book is built outside of the system using a manual process requiring significant staff time.
Workforce Planning: This feature will allow the Finance and Human Resources departments to forecast personnel costs and create different outcomes and scenarios around different labor scenarios. The workforce numbers will flow through into the Operating budget in order to create an accurate and timely City budget.
Financial Integration: This feature will integrate with our Tyler Munis ERP system in order to allow for departments to use OpenGov’s Communications and Reporting features, already owned by the City, to track budget to actuals and use the OpenGov dashboards and reports to run day-to-day decision-making. By having the data integrated, users can see where they are against their budget at any point in time.
Contract Consolidation
In order to streamline the contract administration and payment process, staff recommends combining three separate contracts with different renewal dates into one contract. Staff are also recommending the City purchase the Budget and Planning module and include in the contract. OpenGov will prorated any outstanding balances to allow us to consolidate without financial penalty.
ALTERNATIVES
Staff recommends that the City Council approve the addition of the Budget and Planning module and consolidation of OpenGov contracts. Council may also consider:
• Approve combining four software licensing agreements, including the budget builder module into one contract
• Not approving the budget and planning module; and/or
• Keeping the OpenGov contracts separate.
FINANCIAL IMPACT
The total cost of the Budgeting and Planning module including Professional Services is $111,248 for year one. It is recommended to fund this through the ERP Implementation Project fund #90002704.
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Implementation Costs: |
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Budgeting and Planning Upgrade (Budget Builder, Workforce Planning, Financial Integration |
$54,368.00 (Annual) |
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OpenGov Deployment One Time Fee: Budget and Planning Upgrade - Product configuration and setup, training and ongoing support to help organization deploy and adopt the OpenGov solutions described in the Statement of Work |
$56,880.00 (One Time) |
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Total: |
$111,248 |
The total compensation for year one, for all modules under this Amendment, is not to exceed $195,041 as described in the Order Form attached as Exhibit 1. The Billing Table below outlines the fixed annual rate of $134,156 in the four years to follow year one of the Agreement. Total five-year compensation shall not exceed $731,665.08.Billing Table
The funding for the existing modules is already included in the base budget. The annual cost will be $134,156 for years 2-5 including the cost of the budget module. The annual payment for the Budget module of $54,368 will be cost allocated to departments starting Fiscal Year 2020-2021. By bundling the separate licenses into one agreement, OpenGov is waiving the annual 4% inflation adjustment.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Pursuant to Alameda Municipal Code section 2-61.7 (Joint Purchases with Public Agencies), purchase of equipment, among other items, may be purchased without resorting to formal bidding provided that the price paid by another public agency was itself the subject of competitive bidding. Staff has confirmed that the price proposed by OpenGov is below the NASPO price list offered by a NASPO vendor, which is also an authorized reseller of OpenGov. Additionally, for procurement purposes, OpenGov’s software platform is the only integrated multi-tenant Software as a Service (“SaaS”) solution that can meet and/or exceed the City’s desired goals for communications, reporting, and civic engagement.
ENVIRONMENTAL REVIEW
This action is not a project for the purposes of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 10561(b)(3) as there is no possibility that this action may have a significant effect on the environment.
CLIMATE IMPACTS
There are no known climate impacts from the proposed action (agreement consolidation, approval, and implementation).
RECOMMENDATION
Authorize the City Manager (or Designee) to execute an agreement amendment with OpenGov, Inc. to consolidate three existing separate software license agreements into one agreement and add a new budget and planning module, in an amount not to exceed $195,014.08 for year one and an annual amount not to exceed $134,136 for years two through five, for a total five-year compensation not to exceed $731,665.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of the contract. This OpenGov module will work within the current Enterprise Software.
Respectfully submitted,
Carolyn Hogg, Director of Information Technology
By,
Financial Impact section reviewed,
Nancy Bronstein, Human Resources Director and Interim Finance Director
Exhibits:
1. Work Order
2. Original Agreement
3. Amended Agreement
cc: Eric Levitt, City Manager