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September 23, 2025
ITEM TITLE
Purchase Agreement: Waive the Competitive Bidding Process and Approve a First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. to Purchase AI Era Leaders Program and Appropriate Funds
Report Number: 25-0248
Location: No specific geographic location
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt resolutions: A) Waiving the competitive bidding process and approving the First Amendment to the Master Services and Purchasing Agreement from Axon Enterprise Inc. to purchase AI Era Leaders Program; and B) Appropriating funds for this purpose. (4/5 Vote Required)
SUMMARY
The Police Department is interested in exploring the benefits of the AI Era Leaders Program which contains the Draft One AI-Assisted Report Writing software that is now available from Axon Enterprise, Inc. This new technology will enhance operational efficiency, streamline evidence processing, and improve administrative workflows.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Police Department staff presented an informational item about the AI Era Leaders Program and Draft One AI-Assisted Report Writing Software to the Privacy Protection and Technology Advisory Commission during a special meeting held on July 7, 2025.
DISCUSSION
On December 5, 2023, City Council approved the Master Services and Purchasing Agreement with Axon Enterprises, Inc. (Axon), for purchases of Body Worn Cameras, Taser Electronic Control Weapons and In-Car Cameras, and related services as a result of Request for Proposal (RFP) # P03 -2023. Since then, Axon has successfully launched several solutions that responsibly utilize artificial intelligence (AI) algorithms and learning models to enhance public safety such as its AI Era Plan, a bundled offer that consolidates current and future AI-powered tools. This plan is designed to enhance operational efficiency, streamline evidence processing, and improve administrative workf lows. It includes access to all existing AI features as well as future capabilities as they are released.
Given the proprietary integration of Axon’s AI Era technology with the City’s existing Axon systems, it is impractical to solicit competitive bids for this add-on service. Based on this, staff recommends waiving the competitive bidding process in accordance with CVMC 2.56.070(B)(3).
Axon AI Era Plan
The Axon AI Era Plan is a bundled offering that brings together Axon’s current and future AI-powered tools under a single agreement. Designed to help support operational efficiency, evidence processing, and administrative workflows, the plan includes all of the AI features available today—along with access to upcoming capabilities as they are released.
Each solution in the plan is developed to integrate into existing public safety workflows, helping agencies manage audiovisual evidence, streamline documentation, and support informed decision -making while helping better manage administrative tasks and community interactions.
Tools included in the AI Era Plan are designed to help:
Automate transcription, create first-draft reports, and summarize audio from video evidence. Support multilingual operations and real-time communication. Accelerate workflows by combining image collection and data extraction, streamlining image review, video analysis, and form population.
Provide policy guidance through secure, AI-powered search.
Year One
In year one, staff is recommending the purchase of the AI Era Leader Program , this will start with two components of the full program, which are the Axon Draft One and Axon Auto Transcribe, together these solutions can reduce officers time spent reviewing video evidence and report writing. Officers can spend up to 3 hours per shif t on report writing, but AI can help them drastically reduce that time by analyzing the body-worn camera (BWC) audio and summarizing the events in a report. Axon’s Draft One software enables officers to get a head start on report writing by using artific ial intelligence (AI) to draft a report narrative P a g e | 3
using the officer’s BWC audio. With Draft One, the BWC audio is uploaded to the Axon Evidence cloud and auto transcribed. No action is needed by the user to prep the audio file or convert evidence and five minutes after incident recording has stopped, officers can use the auto-transcription to generate a draft report.
Built with specific safeguards, this AI -enabled technology has fail -safes and controls so that it does not replace human decision-making in critical moments. For checks and balances and consistency with current AI policies, it is necessary that the officer review and edit the report draft before submittal.
After Year One
In year two through four, it is anticipated that all components of the full AI Era Plan, will be available to the Police Department. This will provide access to a seamlessly integrated ecosystem of connected AI solutions.
Designed to work together, these solutions help better support operations, streamline collaboration, and improve data management—while reinforcing safety and security across the organization. By bundling these solutions into a single, cost -effective package, the Police Department will ha ve the essential tools to increase transparency, streamline workflows, and drive productivity —all while fostering a safer, more connected environment.
Staff is recommending approval of the first amendment to the Axon Master Services and Purchasing Agreement to purchase AI Era Leaders Program, starting with Draft One AI-Assisted Report Writing and Auto Transcribe Software and related services under the current Axon Master Services and Purchasing Agreement, which is set to expire January 31, 2029.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware of and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of th ese resolutions will (1) waive the competitive bidding process and approve the First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. to purchase AI Era Leaders Program, Draft One AI -Assisted Report Writing Software and related services and (2) appropriate available funds balance to the Supplies and Services category of the Police Grants Section of the Local Grants Fund. The portion of this agreement attributable to the Measure A fund is included in the fiscal year 2025 - 26 Measure A fund budget. This purchase covers a 40-month term, from October 1, 2025 to January 31, 2029.
The table below outlines the costs for the current fiscal year (October 2025 to June 2026):
DESCRIPTION
Local Grants
Fund
Measure A
Fund TOTAL
Axon AI Era Leaders Program $0 $0 $0
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Axon Draft One Report Writing Software $98,280 $18,720 $117,000 Axon Auto-Transcribe (Unlimited Service) $60,803 $11,581 $72,384 TOTAL FY 2025-26 COST $159,083 $30,301 $189,384
ONGOING FISCAL IMPACT
The table below outlines costs during the remainder of the agreement term, from July 1, 2026 to January 31, 2029.
DESCRIPTION FY 2026-27 FY 2027-28 FY 2028-29 TOTAL
Axon AI Era Leaders Program $267,960 $267,960 $267,960 $803,880 Axon Draft One Report Writing Software $0 $0 $0 $0
Axon Auto-Transcribe (Unlimited Service) $0 $0 $0 $0 TOTAL $267,960 $267,960 $267,960 $803,880
The first two years of the agreement amendment will be funded by available fund balance in the Police Section of the Local Grants Fund and the Measure A fund. The Police Department will work with the Finance Department to allocate the necessary funds to cover costs during the term of the agreement. Based on anticipated funding in the Police Section of the Local Grants Fund, the percentage of ongoing costs currently funded with Police Section of the Local grants Fund which is approximately $160,000, may need to be funded by the General Fund after Year 2. However, should funds become available in the Police Section of the Local grants Fund, those funds will continue to fund the remainder of the agreement costs.
The contract cost over the term of the agreement includes a significant discount of approximately $1. 3 million. After the expiration of the contract, the potential increase in cost of continuing the use of the software will need to be evaluated as part of future budget discussions. The appropriate the split between Police Section of the Local grants Fund and Measure A funds will also be evaluated and included in future years as budget development process.
ATTACHMENTS
1. Axon Master Services and Purchasing Agreement for Agency
2. First Amendment to the Master Services and Purchasing Agreement
Staff Contact: Maria Kachadoorian, City Manager
Dan Peak, Assistant Chief of Police