CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: September 28, 2026
Report #: 2607-6591
TITLE
Approval of a Professional Services and SaaS Agreement C27195677 with TruePoint Solutions, LLC DBA GovPath for an Amount Not-to-Exceed $3,486,301 for the Licensing, Maintenance, and Support of the City’s Building Permitting System on the Accela Platform for a Period of Five Years; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommend that the City Council approve and authorize the City Manager or designee to execute the attached professional services contract with GovPath, Contract No. C27195677, in the amount not to exceed $3,486,301 for the Licensing, Maintenance, and Support of the City’s permitting system on the Accela platform for a term of five years. This amount includes a contract contingency of $250,000 for unforeseen licensing or additional services that might develop during the contract period.
EXECUTIVE SUMMARY
The City's permitting system supports building, planning, and development activities used by residents, contractors, and staff. Staff recommends approval of a five-year contract with GovPath, not to exceed $3,486,301, for licensing, maintenance, and support of the City’s Accela permitting system, which includes a contingency of up to $250,000 for unforeseen needs. This recommendation follows a competitive Request for Proposal issued in October 2025, which resulted in 19 submissions and a multiphase evaluation. GovPath, proposing the Accela platform, received the highest overall score and offered the most cost effective and functionally comprehensive solution. Consolidating services for Accela and the City’s electronic plan review system under one competitively selected vendor will improve system integration, support, and continuity.
GovPath’s proposal maintains competitive licensing rates, includes support for up to 200 users, and aligns with comparable regional contracts. The contract provides 1,000 annual support hours and key technical services needed to maintain and enhance the permitting ecosystem.
Funding for Year 1 has been appropriated through the Technology Fund and Development Center technology fees, with future years subject to annual budget approval.
BACKGROUND
The City issued a Request for Proposal (RFP) on October 8, 2025, seeking both a permitting platform and an implementation partner capable of collaboratively designing, implementing, and providing ongoing professional support services for a modern system to service the needs of the City’s development community. The RFP for the project was posted on OpenGov, the City’s eProcurement platform. The solicitation closed on November 18, 2025.
Table 1: Summary of Request for Proposal
Proposal Description Permitting and Land Management Software Proposed Length of Project 5 Years
Number of Vendors Notified 3,720
Number of Proposal Packages Downloaded 92
Total Days to Respond to Proposal 50 Days
Pre-Proposal Meeting NA
Pre-Proposal Meeting Date NA
Number of Proposals Received 25 (Qualified submissions: 19) Public Link to Solicitation https://procurement.opengov.com/governments/650/pr ojects/199820/manage
During the submittal period, the City received proposals from 19 vendors (six of twenty-five did not meet submittal requirements). Following an initial evaluation, four finalists were advanced to the second and final phase of the selection process to assess the proposed permitting software and long-term maintenance services. The evaluation included a review of a written proposal packet, cost comparison, demonstrations of the proposed permitting software, and a questions and answers session at the end of the demonstration. In April 2026, the City issued a Notice of Intent to Award to the highest scoring proposer, GovPath, who proposed the Accela permitting system along with GovPath serving as ongoing maintenance and support.
Accela has been the City of Palo Alto’s primary permitting platform for more than a decade, supporting permit applications from contractors and residents and enabling City staff to process permits across multiple departments. Over the years, the City has invested significant time and resources in Accela enhancements and staff training for Building, Code Enforcement, Fire, Planning, Public Works, and Utilities. The City has historically contracted directly with Accela, Inc. for software licensing services. The current agreement began as a five-year contract from October 1, 2018, to September 30, 2023, and was amended in March 2022 to add the Accela Mobile Office and Accela Electronic Reporting Database modules.1 Another three-year 1 Contract C19173550: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2019/id-9489.pdf
extension was approved for October 1, 2023 to September 30, 2026, with competitive solicitation planned for 2025.3 These extensions were granted under exemptions from competitive solicitation due to the City’s substantial investment in the system, making a transition to new technology impractical at the time.
Accela requires specialized configuration and programming, which the City does not staff internally. GovPath, formerly TruePoint Solutions, has supplied these technical skills supporting the Accela environment for the City since 2013. The City previously contracted with TruePoint Solutions in 2013 for support services (Contract S13149314),4 followed by multiple amendments and a new 2017 contract that was extended through 2020.5,6 Subsequent amendments included a January 1, 2021, to December 31, 2024, agreement for $901,683,7 and the most recent amendment (C21179976), approved December 9, 2024, extending through December 31, 2026, with a total authority of $1,263,995.8 GovPath also holds the departmental contract for DigEplan, the City’s electronic plan review software, another technology partner within the permitting ecosystem.9 Staff consolidated these two services into one RFP because permitting software requires ongoing technical support, integration, and upgrades to keep up with the City’s increasing demand and growing needs for improved technology in the permitting process. This approach improves the coordination by using a single vendor responsible for both aspects of the permitting system.
3 City Council, October 2, 2023; Agenda Item #7; SR# 2307-1759, https://cityofpaloalto.primegov.com/viewer/preview?id=2714&type=0 4 City Council, June 3, 2013; Agenda Item #9; SR #3775, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2013/id3775truepoint.pdf; City Council, October 7, 2013; Agenda Item #9; SR #4056, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2013/id4056_phaseiii_techenhanceofblueprint.pdf; City Council, October 5, 2015; Agenda Item #4; SR #6079, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2015/id-6079.pdf
5 City Council, June 19, 2017, Agenda Item#4, SR# 7888, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2017/id-7888-truepoint.pdf
6 City Council, December 14, 2020; Agenda Item #10; SR #11792, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11792.pdf?t=60086.04
7 City Council, October 2, 2023; Agenda Item #7; SR #2307-1759, https://cityofpaloalto.primegov.com/portal/viewer?id=2714&type=0 8 City Council, December 9, 2024; Agenda Item #9; SR #2410-3552, https://cityofpaloalto.primegov.com/viewer/preview?id=14085&type=3 9 City Council, December 4, 2023; Agenda Item #5; SR # 2310-2111, https://cityofpaloalto.primegov.com/viewer/preview?id=3291&type=0
ANALYSIS
In the second and final phase of vendor evaluation, GovPath received the highest overall score.
The evaluation also highlighted the significant costs associated with implementing a new permitting system. The implementation cost is the cost to migrate from the City’s current system to a new permitting software; Accela’s implementation cost is $0 because it is the current permitting software of Palo Alto. The financial costs also do not account for the change management of staff and City staff implementation resources needed to support such a transition.
Compared to the recommended contract, the next top three proposals had higher costs.
Implementation costs ranged from nearly $600,000 to nearly $2 million. Annual licensing costs were mostly higher, with one proposal coming in at $400,000 and the others between $500,000-$800,000 per year. Annual licensing costs from alternative vendors for 200 users were comparable to or higher than GovPath’s Accela proposal which is recommended to start at $437,000 in year one.
Cost was not the only variable evaluated. Other proposals lacked critical reporting capabilities for dashboard tracking and necessary integration with the City’s existing electronic plan review software, DigEplan. Alternative vendors had limited experience with U.S. jurisdictions or had only recently entered the land-use permitting market. One vendor worked with only one public agency since 2019, another has only worked with foreign jurisdictions, while the next highest- scoring vendor is gaining traction with local jurisdictions but has only recently been implemented in the past two years.
Recommended Contract with GovPath
GovPath’s proposed Accela licensing cost aligns with previous contract rates for 2026 and 2027, with a 4% annual increase thereafter. The average cost per user over the five-year term is approximately $2,134 for up to 200 users, reflecting an increase from the previous 185-user contracts. This contract keeps our annual licensing cost below the regional average.
Neighboring jurisdictions with recently renewed and active Accela contracts, average user cost ranges from $2,190 to $3,089.17
The contract also includes the Enhanced Reporting Database used to support custom Power BI dashboards. This feature will be billed at 10 percent of licensing costs; lower than the 13 percent and 14 percent rates paid by comparable jurisdictions that use this feature.
The following services will be provided, and modules supported through this contract:
Modules: Building, Planning, Code Enforcement, Fire, Public Works, Utilities, Inspections Features: Accela Citizen Access (Public-Facing), GovXML, Hosting, Accela Mobile, Accela GIS, Enhanced Reporting Database
Services: Support and maintenance
17 Comparable agencies included: City of Walnut Creek, Santa Clara, Cupertino, Menlo Park.
The Department continues to monitor the changes in artificial intelligence technology for the permitting sector. Before the end of the five-year term, the City will reassess options based on the available technology and proceed with a contract amendment or commence a new request for proposals. Contract support hours and contingency for optional enhancements may be used to adapt to opportunities in this ecosystem during the term.
In addition to Accela licensing, GovPath will continue providing maintenance and support for the City’s permitting ecosystem, consistent with the services they have delivered since 2013.
This includes:
• 1,000 hours of annual maintenance and support;
• A Payment Processor Integration subscription compliant with payment security standards; and
• Optional enhancements such as electronic signatures.
The 1,000 annual support hours reflect a reduction from the previous 1,300-hour plus project- based contract. The reduction aligns with actual usage and preserves a buffer for staffing changes; no reduction in services is expected. This contract structure shifts from project-based support to a fully flexible support-hours model, allowing the City to adapt to evolving priorities.
Use of the contract will align with City needs and the Council-approved budget; the City is not obligated to utilize all contracted services. For licensing needs beyond 200 users, the City will pay a per-license fee as outlined in the attached contract.
FISCAL/RESOURCE IMPACT
Funding for Year 1 in the amount of $400,000 has already been appropriated through the City’s annual budget process in the Technology Fund for Accela licensing, maintenance, and support.
The remaining funds required for Year 1 will be funded through the Development Center technology fees. Technology costs are recovered through a 6% technology surcharge fee that is assessed as part of the planning and permitting fees for private construction projects.
Table 2: Annual Costs
Term Subscription Fees19 Support Services Total
Year 1: 10/1/2026 – 9/30/2027 $436,980 $170,000 $606,980 Year 2: 10/1/2027 – 9/30/2028 $459,187 $170,000 $629,187 Year 3: 10/1/2028 – 9/30/2029 $477,459 $170,000 $647,459 Year 4: 10/1/2029 – 9/30/2030 $496,459 $170,000 $666,459 Year 5: 10/1/2030 – 9/30/2031 $516,216 $170,000 $686,216 Total $2,386,301 $850,000 $3,236,301
19 Annual subscription fees include Accela licenses, Accela Enhanced Reporting Database, and GovPath Payment Processor Integration/Adapter
Funding for subsequent years of the contract will be subject to approval through the annual budget development process.
Contingency for Additional Services
This contract sets aside the not-to-exceed compensation amount of $250,000 for additional licenses or the performance of additional services. Additional services may include add-ons to the Accela software to improve user experience. Options may include, but are not limited to the following upgrades:
Electronic signature integration
Permitting decision tree tools
Inspection management tools
Document management integration
STAKEHOLDER ENGAGEMENT
The services were coordinated with internal stakeholders and the service provider.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA pursuant to CEQA Guidelines Section 15378(b)(2) because the purchase of software licenses is a continuing administrative or maintenance activity.
ATTACHMENTS
Attachment A: Contract with GovPath; C27195677
APPROVED BY:
Jonathan Lait, Planning and Development Services Director