City Council Agenda Report
August 4, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Theresa Devoy, City Clerk
SUBJECT: AGREEMENT RENEWAL FOR ELECTRONIC DOCUMENT MANAGEMENT SYSTEM
Background:
The City has utilized Hyland OnBase Electronic Document Management System (DMS) since 2008, when they purchased the previous software, to manage the City’s documents per the adopted retention schedule. A DMS is a software platform that stores, manages, and tracks electronic documents and images of paper-based information captured by a document scanner and indexed for easy retrieval. Examples of documents held within the system are: agenda reports, agreements, ordinances, resolutions, and building permits to name a few. The system is used across all departments and has a public search portal on the City’s website for residents to retrieve and review certain stored documents. The DMS is supported by BlueIris IQ (BlueIris), a division of Konica Minolta Business Solutions.
Annual license and subscription services have provided the City with access to the DMS and BlueIris support desk for any break-fix issues in the production and test environments. The support covers software defects that surface as error messages and/or result in data integrity issues or data loss, as well as issues that arise when published documentation contradicts the software's actual behavior. Staying current with these services also provides continuous access to the latest versions of OnBase software, including new features and enhancements as they become available. This helps ensure system stability and compliance. The City also utilizes BlueIris for Managed Services which assists staff with advanced customized project support, configuration of the system, and system upgrade assistance are some of the services provided. This essential service is not included in this five-year license and subscription renewal, and no increase has been requested.
City Council August 4, 2026
Five-Year Renewal for OnBase Support Services and
Licensing
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The software subscription is renewed annually and typically includes a price increase. However, this year’s proposed renewal includes a 10% increase. Staff noted that this percentage is significantly higher than in previous years, prompting discussion of alternatives to minimize the annual increase. BlueIris negotiated lower rates with Highland to cap the annual software license increase at 6% for three-years, 5.5% for four-years, or 4% for five-years. The following chart illustrates the difference between an annual renewal vs. five-year renewal in subscription service per fiscal year over the next five years. A five-year renewal would result in savings of $42,126 over the course of the agreement.
OnBase Options FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 TOTAL Current year-to-year renewal
with a minimum 10% annual
increase
$42,802 $47,082 $51,791 $56,970 $62,667 $261,311
Proposed 5-year renewal with
a maximum 4% annual
increase
$40,467 $42,086 $43,770 $45,520 $47,341 $219,185
Cost Difference $2,335 $4,996 $8,021 $11,449 $15,325 $42,126 **Assumes a minimum of 10% annual increase if the City continues to renew annually. Year-to-year pricing is subject to increases greater than 10%
The City’s DMS is similar to financial systems, wherein it is extremely costly to move to another system and as long as it is being updated and properly maintained there is no need to change systems. Renewing the OnBase software and subscription services enables the City to be eligible for technical support and software upgrades that are needed to ensure the reliability of the system. This allows staff and residents to continue to have access to many of the City’s public records without needing to submit a public records request.
In conclusion, staff is recommending the five-year term to maximize savings, provide greater cost predictability by stabilizing annual price increases, and allow for more effective budget planning.
Fiscal Impact:
The total five-year cost for this agreement is $219,185. The Fiscal Year 2026/27 budget includes funding for year-one subscription services. Funding for subscription services in subsequent years will be appropriated through the annual budget process and shall not exceed the amount specified in the chart.
Citizens Advised:
N/A
City Council August 4, 2026
Five-Year Renewal for OnBase Support Services and
Licensing
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Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 1: Provide High Quality Customer Service to the Community; Objective 2: Improve external and internal coordination and communication.
Recommended Action:
Staff recommend City Council approve the five-year software maintenance agreement renewal with BlueIris IQ, a division of Konica Minolta, for the City’s OnBase document management system in a total amount not to exceed $219,185, for the period ending July 31, 2031; and authorize the City Manager to execute the renewal, and any amendments provided there is funding in the budget and it is within his signing authority, on behalf of the City, in a form approved by the City Attorney.
Attachments:
None