REPORT TO COUNCIL
SUBJECT
Title
Award a Two-Year Purchase Agreement to e-Builder, Inc. in the Amount of $420,000 for Unlimited Authorized User Licenses for e-Builder Enterprise Software (F25-019)
Report
REPORT IN BRIEF
Approval is requested to award a two-year purchase agreement to e-Builder, Inc. in Florida, in the not-to-exceed amount of $420,000 for unlimited authorized user licenses for e-Builder Enterprise Software.
EXISTING POLICY
Pursuant to Section 2.08.040 (d) of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
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.
BACKGROUND AND DISCUSSION
e-Builder is a web-based project management software used by the Department of Public Works to manage and track capital improvement projects. The City entered into a yearly renewable service agreement with e-Builder in 2014. In addition to City staff, licenses are issued to design consultants and construction contractors working on City projects.
During FY 2023/24, the City paid $173,125 for 135 e-Builder licenses. Due to the high number of active capital projects in design and construction during this period, 184 licenses were used. Over the next few years, several major projects are scheduled to begin that will each require additional licenses. While e-Builder did not charge the City for the additional licenses, they requested a new agreement to cover the increased usage.
Staff negotiated an annual cost of $210,000 for unlimited authorized user licenses for the three (3) years beginning July 1, 2024 (Attachment 1 to this report). To maintain continuous access to the software for active projects in FY 2024/25, the Interim City Manager approved a one-year purchase agreement under his authority in the amount of $210,000. Council approval is requested to award a purchase agreement to e-Builder, Inc., for the remaining two years of the contract term.
FISCAL IMPACT
Budgeted funds for e-Builder licenses are included in Program 13801 - Capital Project Management. The increase in cost can be absorbed in the program budget in FY 2024/25 and FY 2025/26 and incorporated in the FY 2026/27 operating budget cycle.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a two-year purchase agreement in the not-to-exceed contract amount of $420,000;
- Make a finding of a categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c);
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Authorize a City Manager to increase the amount of the agreement up to the budgeted amount and if pricing remains acceptable to the City.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_Y_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Service Order Form