City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 8, 2026
Report #:2511-5465
TITLE
Approval of Amendment No. 1 with Eight Professional Services Contracts for IT On-Call Services:
Contract C26193247A INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, and C26193247H with California Creative Solutions Inc., to Increase the Not-to-Exceed Amount by $1.5 Million and Extend the Term through June 30, 2027; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager or their designee to execute Amendment No. 1 to eight on-call professional services contracts for IT on-call services with the vendors listed above, for a one-year term, in an amount Not-to-Exceed $1,500,000 annually.
The revised total contract not-to-exceed amount of $3.0 million.
BACKGROUND
On June 17, 2025, the City Council approved eight on-call IT professional services contracts for an initial one-year term from July 1, 2025, through June 30, 2026, with four optional one-year extensions1. These four optional one-year extensions allow the City to regularly review service levels and resource needs. Year 1 is nearing completion and staff recommends approval of Amendment No. 1 to extend the contracts for a second-year from July 1, 2026, through June 30, 2027.
In total, $0.8 million has been authorized via task orders in year 1; the table below represents some of the major accomplishments from FY26 utilizing these on-call contracts. 1 June 17, 2025 City Council Staff Report:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17567
Table 1. FY26 IT On-Call Projects by Funding Source
Funding Source /
Department Amount Task Orders
Utilities
Department
$374,436 Fiber to the Premises (FTTP) support and project delivery FTTP Phase 1 Pilot project management, systems and
process workflows, fiber work orders, field
investigations, and 3GIS support
Fiber project coordination, including engineering,
construction oversight, permitting, regulatory
compliance, make-ready coordination, testing,
acceptance, and asset documentation
Information
Technology
Department (ITD)
$343,000 Citywide IT operations and technology improvements Interactive dashboards and API/webservices
integrations to support cross-functional business needs Technician support for City laptop replacement /
upgrade project augmenting City staff as needed
Coordination of cross-department technology
initiatives and related reporting tools
Planning &
Development
Services
$20,000 Development of Power BI dashboards that provide interactive, performance-focused monitoring and reporting Recognizing the continuing and evolving need for specialized IT support across multiple departments, the Information Technology Department (ITD) issued a Request for Proposals (RFP) in early 2025 to establish a pool of qualified vendors capable of providing IT on-call services from July 1, 2025, through June 30, 20303. The on-call structure allows the City to access skilled IT resources on an as-needed, limited-term basis while maintaining flexibility to scale work up or down based on City needs and budget.
The total combined spending across all 8 contracts shall not exceed $1,500,000 annually. No vendor is guaranteed a minimum amount of work. Services will be issued through task orders with defined scope, schedule, and price.
ANALYSIS
Continuation of on-call IT contracts are critical, as demand for support is increasing for enhanced capabilities such as infrastructure support, disaster recovery, application development, compliance, workflow automation, interactive dashboards, SharePoint and collaboration improvements, and stronger data management and governance. These on-call 3 2025 RFP: https://procurement.opengov.com/portal/palo-alto-ca/projects/141382/addenda contracts are planned to support multiple initiatives underway or scheduled to begin in FY 2027. Estimated needs for FY 2027 include:
Citywide IT operations and technology improvements (funded in the Information Technology fund; estimated cost is $400K for cybersecurity, power platform development, and deployment of device replacement cycle) Data analytics and dashboard development funded by the Information Technology fund as well as other city departmental funds as requested (utilities and development center; estimated cost is $200K for BI development)
Fiber to the premises project customer onboarding, installation, and customer interface funded by the Fiber Fund (estimated cost is $500K for broadband and project coordinators)
Scope of services may include project coordination for Fiber, computer rollout, governance, data analytics, database and/or network administration and computer programming.
Services under each contract is assigned through individual task orders:
Contractors will be selected for each task order based on resource availability, relevant expertise, and alignment with project requirements.
Staff will evaluate each task order’s scope of work, contractor experience, and billing rates to ensure they are appropriate and cost-effective. Department directors or their designees will approve all task orders, including contractor selection and budget adherence.
City Manager or designee will approve any task order over $100,000. Project managers will manage deliverables and budgets, review work products, and approve invoices only after confirming that billed hours match work performed and that deliverables meet City standards.
Before issuing a task order, staff will determine whether the work can be performed internally or requires specialized consultant support. Task orders will include requirements for documentation and knowledge transfer so that the City retains institutional knowledge and can support systems over the long term.
These on-call contracts use the City’s standard professional services template, which allows the City to terminate for convenience with written notice; Terminate due to non-appropriation of funds; temporarily suspend work by written notice; and elect not to issue additional task orders.
FISCAL/RESOURCE IMPACT
$500,000 is allocated from the Technology Fund for these on-call contracts in FY 2027; no additional funding is requested. The Not-to-exceed amount is higher than the budgeted amount to allow for all City departments to be able to utilize these on-call contracts with their contract services or capital budgets, as in the case with the Planning department and the Fiber Fund in the Utilities department.
Funding for subsequent years of the contract will be subject to approval through the annual budget development process. ITD is funded by an internal service fund. Approximately 49% of the department is General Fund funded with the remaining 51% funded by enterprise and special revenue funds.
STAKEHOLDER ENGAGEMENT
ITD collaborated with other departments to identify IT needs, prioritize projects, and confirm that the proposed on-call contracts and Year 2 extension will support key operational, regulatory, and modernization objectives.
ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment.
LINKS
IT On-Call Project Support Services Contracts:
INSPYR Solutions, Contract Number C26193247A5
AgreeYa Solutions, Contract Number C26193247B6
TechLink Systems, Contract Number C26193247C7
Compunnel Software Group, Contract Number C26193247D8 Progile Tech, Contract Number C26193247E9
Omm IT Solutions, Contract Number C26193247F10
5 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247a.pdf
6 AgreeYa Solutions, Contract Number C26193247B
7 TechLink Systems, Contract Number C26193247C
8 Compunnel Software Group, Contract Number C26193247D
9 Progile Tech, Contract Number C26193247E
10 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247f.pdf
Infojini, Contract Number C26193247G17
California Creative Solutions, Contract Number C26193247H18 APPROVED BY:
Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO
17 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247g.pdf
18 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247h.pdf