City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: August 18, 2025
Report #:2507-4966
TITLE
Approval of Purchase Order C26195602 with Carahsoft Technology Corporation to Procure DocuSign eSignature Software for a One-Year Term Not-To-Exceed Amount of $145,180; CEQA status - Not a project
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee to execute Purchase Order C26195602 with Carahsoft Technology Corporation, utilizing an OMNIA cooperative contract no. R2403031, to procure DocuSign eSignature software for a one- year term through July 31, 2026, with a total Not-To-Exceed amount $145,180.
BACKGROUND
City of Palo Alto implemented DocuSign’s digital signature services on April 30, 2015, to improve operational efficiency by enabling digital signatures, electronic forms, and workflow automation.
In July 2018, the City leveraged the State of California Multiple Award Schedules (CMAS) contract with Carahsoft Technology Corporation to secure DocuSign services at approximately 50% off the list price, benefiting from pre-negotiated terms and conditions. This purchase was made under PAMC section 2.30.360(j), utilizing a CMAS cooperative purchasing agreement.
The City continued to renew DocuSign services through CMAS in 2019, 2020, and 2021. On September 27, 2021, City Council authorized Purchase Order C22183161 with Carahsoft for a three-year term (August 23, 2021 – August 22, 2024), with annual fees of $126,753 and a not- to-exceed amount of $380,258 (CMR 1348222).
1 OMNIA Cooperative Purchasing Agreement: https://www.omniapartners.com/suppliers/carahsoft/public- sector/contract-documents#contract-2098
2 September 27, 2021 Report, Item #6, page 67, is available to view at https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=3307&compileOutputType= 1 Most recently, on September 9, 2024, City Council approved Purchase Order C25192371 with Carahsoft under OMNIA cooperative contract no. 23-6692-0115 to extend DocuSign services through August 2025, in an amount not-to-exceed $125,965 (CMR 2408-33756).
ANALYSIS
DocuSign transformed document handling processes, enabling staff to review and approve documents from any device, thereby reducing turnaround times and enhancing productivity.
DocuSign's tracking capabilities streamlined the review and approval process by providing real- time visibility into the status of documents, minimizing the need for manual follow-ups.
With a 25,000-envelope allowance each term year, the City experienced widespread adoption and consistent use of DocuSign across departments. Over the past three years, total envelope usage was 2023: 20,671 envelopes; 2024: 25,480 envelopes; and 2025: 26,152 envelopes, reflecting year-over-year growth of 23% from 2023 to 2024 and 2.6% from 2024 to 2025. June was often a peak month with the highest usage. The platform supports internal and external collaboration, with 39,324 internal signings and 14,317 external signings recorded between August 14, 2024, and July 21, 2025. Signer counts exceed total envelope counts because many envelopes require signatures from multiple parties.
A project to evaluate alternative electronic signature solutions is underway to maximize cost- effective use of e-signatures and to provide alternate tools for document approvals. During this one-year term, staff will analyze DocuSign usage and costs, review comparable platforms, and assess their functionality and cost. If a more cost-effective solution is identified, maintaining access to DocuSign for the year will ensure a smooth transition, allowing some time for implementation and user training on the new platform. The project is in progress with an estimated completion date of May 2026.
FISCAL/RESOURCE IMPACT
Funding for this purchase order in FY 2026 is within budgeted levels adopted by the City Council in the Informational Technology Department, no additional funding is requested.
The Information Technology Department (ITD) is funded by an Internal Service Fund (ISF) that allocates costs to other funds across the City to provide technology-related services to other City departments and funds. Approximately 45% of the services provided are for the General Fund with the remaining 55% for other funds such as Enterprise, special revenue, and other internal service funds.
5 OMNIA Cooperative Purchasing Agreement: https://www.omniapartners.com/suppliers-files/A- D/Carahsoft_Technology_Corp/Contract_Documents/23-6692-01/23-6692-01_Carahsoft_MAD.pdf 6 September 9, 2024 Report, Item #11, is available to view at https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14393
STAKEHOLDER ENGAGEMENT
The services were coordinated with internal stakeholders and the vendor. ITD met with other City departments to collect their business needs for an electronic signature platform and documented their must-have features. Other available solutions meeting these requirements and features will be evaluated during this one-year period.
ENVIRONMENTAL REVIEW
The approval is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3).
ATTACHMENTS
Attachment A: Purchase Order C26195602 with Carahsoft Technology Corp APPROVED BY:
Darren Numoto, Chief Information Officer