City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 1, 2026
Report #:2603-6085
TITLE
Approval of Professional Services Contract Number C27197243 with Euna Solutions, Utilizing a TIPS Cooperative Contract, to Modernize the City’s Budget Development and Publishing Software for a Five-Year Term, with Two One-Year Optional Extensions for a Total Not-to- Exceed Amount of $1,322,230. CEQA Status - Not a project.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee execute Contract C27197243 with Euna Solutions, utilizing the above-noted TIPS Cooperative Contract Number 230105, to upgrade the City’s budget development software, replace the publishing software, and streamline the budget process for a five-year term (July 1, 2026 to June 30, 2031 and approve up to two, one-year optional extensions (July 1, 2031 to June 30, 2033) for a total not-to-exceed amount of $1,322,230 (Attachment A).
BACKGROUND
To facilitate budget creation, advanced forecasting and analysis, and budget publication, the City uses two software solutions: Questica (budget creation and forecasting) and PADS (publication). Both products are owned and provided by Euna Solutions through a TIPS Cooperative Contract.
The City has used Questica as its enterprise budgeting system since June 23, 2014, following a competitive procurement process1. Since then, the City Council has approved several amendments to maintain and support the budgeting system:
Dec. 8, 2014 – Council approved Amendment No. 1, increasing total compensation and extending services for a five-year term2.
1 June 23, 2014 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2014/4516.pdf 2 December 8, 2014 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2014/4516.pdf
Sept. 23, 2019 – Council approved Amendment No. 2, extending the contract term through June 30, 2024, and increasing total compensation5. June 3, 2024 – Council approved Amendment No. 3, extending the contract through June 30, 2026, and increasing the total not-to-exceed amount to $1,227,6586.
In addition to Questica, the City uses PADS to compile financial data, narrative text, and graphics to create the City’s budget publications7. The system helps maintain a consistent, professional, and visually appealing format.
The City first selected PADS through a competitive procurement process and has continued using the system through later contracts and amendments:
Dec. 16, 2013 – Council approved Contract C14151788 for PADS, replacing the legacy budget publishing software that was no longer supported8. April 25, 2016 – Council approved Amendment No. 1, extending the term through June 30, 2019, and increasing the total not-to-exceed compensation to $363,5559. July 1, 2019 – The City later entered Contract No. S20175881 with Finite Matters for hosting, maintenance, and licensing services supporting PADS. Amendment No. 1 extended the contract term through June 30, 2022, and established a maximum not-to- exceed compensation of $73,353.
Nov. 8, 2022 – The City transitioned to a SaaS service model through Contract No.
S23183412. The City later amended the contract to extend the term through June 30, 2026, and increase the total not-to-exceed compensation to $120,174.
ANALYSIS
After comprehensive assessment of the City’s budget development and publishing requirements, staff determined that upgrading to Euna Solutions’ modern budgeting suite, including their Euna Budget Pro and Euna Budget Book Studio products, is the most fiscally and operationally advantageous path.
The scope of the assessment included:
Rigorous needs discovery, documenting existing and future needs. Staff conducted a 35-hour requirements gathering process, interviewing 26 budget analysts across various departments.
5 September 23, 2019 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10618.pdf?t=59683.91 6 June 3, 2024 City Council Staff Report, Agenda Item No. 5:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14299 7 FY 2026 Adopted Operating Budget: https://www.paloalto.gov/files/assets/public/v/1/administrative- services/city-budgets/fy-2026-city-budget/adopted/fy-2026-adopted-operating-budget_final.pdf 8 December 16, 2023 City Council Staff Report: https://www.paloalto.gov/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2013/13-4312.pdf 9 April 25, 2016 City Council Staff Report: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6832.pdf Legacy system replacement: A primary objective was replacing the legacy PADS publishing system, which requires manual data compilation, with a modern, automated platform integrated with the City's financial core.
Market analysis and comparing what other Bay Area city agencies are using. Multi-stage competitive evaluation: A multi-department evaluation panel evaluated five industry-leading vendors: Anaplan, ClearGov, Euna Solutions, Gravity, and OpenGov.
The evaluation followed a structured three-round process:
oFirst Round: Five firms participated in three-and-a-half-hour demonstration sessions focused on core functionality and requirements matrix responses. oSecond Round: The field was narrowed to three firms for three-hour deep-dive sessions regarding technical architecture and reporting. oThird Round: Staff held targeted discussions with Euna Solutions to validate system integration capabilities and finalize the implementation roadmap.
Strategic justification for selection
Operational Continuity: While other platforms were assessed, none significantly outperformed Euna Solutions enough to justify the high transition costs, retraining efforts for Citywide staff, and the operational risk of migrating the City’s complex fund structures and workflows to a completely new environment. System Enhancements: The new contract facilitates advanced forecasting, improved SAP data integration, and greater public transparency by using Euna Budget Book Studio to publish budget information in a modern, public-facing digital format. Procurement Efficiency: Staff utilized the TIPS-USA Contract #230105 15 cooperative vehicle, which provided a pre-negotiated competitive framework. Furthermore, City staff successfully negotiated pricing below these cooperative sheet rates and initial quotes, securing $167,227.40 in savings for the City over the proposed 7-year term.
FISCAL/RESOURCE IMPACT
The total contract value for the initial five-year term is $968,408. This total includes $880,371 for professional services and recurring annual maintenance fees, as well as $88,037 reserved for additional services. Should the City exercise the two optional one-year extensions, the total potential contract value is an amount not to exceed $1,322,230.
Funding for this contract will be incorporated into the FY 2027 annual budget development process, subject to City Council approval and consistent with how multiyear technology contracts are funded in future years. As the Information Technology Department (ITD) is supported through an internal service fund model, these costs are distributed across City 15 Cooperative Technology Solutions Products and Services Contract: https://www.tips- usa.com/vendorProfile.cfm?RecordID=AB4A9AB026430832481F3CF7167BDE6C departments. Approximately 49% of the costs are funded by the General Fund, while the remaining 51% are supported by enterprise and special revenue funds.
Contract Cost structure
Contract Year Contract Term
Professional Service/
Annual Maintenance Additional Services
Year 1 07/2026 - 06/30/2027 $223,839 $20,000
Year 2 07/2027 - 06/30/2028 $160,772 $17,009
Year 3 07/2028 - 06/30/2029 $160,772 $17,009
Year 4 07/2029 - 06/30/2030 $165,209 $17,009
Year 5 07/2030 - 06/30/2031 $169,779 $17,009
Optional Year 6 07/2031 - 06/30/2032 $174,487 $0
Optional Year 7 07/2032 - 06/30/2033 $179,335 $0
STAKEHOLDER ENGAGEMENT
Staff coordinated this effort with internal City stakeholders to ensure the recommended solution reflects Citywide operational needs. The evaluation work and requirements development included participation from the Office of Management and Budget, ITD, and other departmental budget staff.
Staff also engaged vendors throughout the assessment process to validate technical capabilities, implementation considerations, and options to improve system integration, reporting, training, and public-facing budget publishing/transparency, which informed the recommended scope and implementation approach.
ENVIRONMENTAL REVIEW
The approval of this contract is not a project under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2), (4) and (5).
ATTACHMENTS
Attachment A: EUNA Solutions, Contract C27197243
APPROVED BY:
Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO