Agenda Item No: K.4
AGENDA REPORT
DATE: September 1, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 202 6-183 HD Second Amendment to the City Data Services Professional Services Agreement
Approving the Second Amendment to the City Data Services Professional Services Agreement and Authorizing the City Manager to Execute Any and All Documents, Contracts, and Memorandum of Understanding
Funding Source: $87,764; CDBG Low-Mod Funds
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The original agreement was approved by the City Council in 2018 by Resolution 2018-235 and authorized the City's long -term use of the software through a lifetime software license with ongoing maintenance and support services. The software ensures the City's timely reporting and monitoring of subrecipients in accordance w ith the U.S. Department of Housing and Urban Development (HUD) regulations. Amendment No. 2 to the City Data Services Agreement is required to complete necessary system upgrades that will maintain the functionality, security, compatibility, and vendor supp ort of the City's software. Because the cumulative value of the agreement now exceeds the city manager's current contract execution authority, council approval is required.
DISCUSSION
The council approved the original City Data Services Agreement in 2018. The agreement expressly provides the City with a lifetime software license and includes ongoing annual maintenance and support services, demonstrating the City's intent to utilize the software over the long term.
The agreement history is summarized below:
Agreement Amount
Original Agreement (09/26/2018) $39,300
Amendment No. 1 (02/24/24) $1,800
Costs from 2018 to Present (8 YEARS): $148,200
Proposed Amendment No. 2 $87,764
Total Contract Amount $235,964
The original agreement included a one-time implementation fee of $24,000 and an initial annual maintenance and support fee of $15,300. Since implementation, the City has continued to pay annual maintenance costs to maintain vendor support and software functionality. From 2018 through 2025, the City paid approximately $124,200 in annual maintenance fees, including the $1,800 approved under Amendment No. 1 dated February 24, 2024.
Amendment No. 2 provides for the required system upgrades and extends the agreement for an additional three -year term through June 30, 2029, to ensure the software's continued functionality, security, compatibility, annual maintenance, techn ical support, software updates, and continued vendor support. These services and upgrades were not specifically identified in the original agreement but are consistent with the City's continued use of the software under the lifetime software license approved by the council.
At the time the original agreement was approved in 2018, the council authorized the City's long- term use of the software through the lifetime software license and the associated ongoing maintenance and support services.
The original agreement was approved by the council to ensure the City's timely reporting and monitoring of subrecipients in accordance with HUD regulations. Amendment No. 2 is presented as a continuation of that council-approved agreement rather than a new procurement or a change in the City's original authorization. The amendment extends the term of the existing agreement through June 30, 2029, while continuing the maintenance and support services necessary to preserve the City's investment in the software.
FINANCIAL IMPACT
Approval of Amendment No. 2 will increase the total agreement amount by $87,764 and establish a fixed three-year term through June 30, 2029. The City will initially implement the Public Services module, with the option to add the Multifamily and Lo an modules during the agreement term.
This phased approach allows staff adequate time to transition to the additional modules while ensuring funding is available should the City elect to implement them. The agreement amount includes applicable implementation and annual service fees for the three -year term, including a 3% annual adjustment to service fees. Funding is available within the department’s approved budget and will be provided through Community Development Block Grant (CDBG) and Low- and Moderate-Income Housing (Low-Mod) funds.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose not to approve the resolution to amend the City Data Services Professional Services Agreement. However, this decision could result in the City being unable to complete the system upgrades necessary to maintain the software's functionality, security, compatibility, and vendor support. Without these upgrades, the City's software may become increasingly vulnerable to security risks and become ineligible for continued vendor maintenance and technical support. Declining the amendment could also result in delay in processing the vendor’s invoices, which may affect the City's standing with the vendor and its ability to secure timely support going forward.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones, Interim Housing Director
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Amendment No. 2
Attachment 4: Exhibit A- Updated Fee Position
Attachment 5: Resolution No. 2018-235
Attachment 6: Original Contract
Attachment 7: Amendment No. 1