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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 5, 2026
To: Honorable Mayor and City Council Members
From: Tarik Rahmani, Director of Finance & Management Services Department: Finance & Management Services
Subject: Approve Amendment No. 1 to the Professional Services Agreement with IGM Technology Corporation for the
Gravity Budget Software Services; and Extending the
Term through January 14, 2030, with a Not To Exceed
Amount of $467,071 (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with IGM Technology Corporation to renew and extend the contract term for the Gravity Budget Software Services through January 14, 2030; and
2. Authorize the City Manager, or designee, to execute Amendment No. 1; and
3. Authorize the Finance Director of Finance & Management Services to establish a purchase order for the total Not-to-Exceed contract amount of $467,071 over the five-year term.
City Manager's Comments
No recommendation.
Executive Summary
This item requests Council approval of Amendment No. 1 to the Professional Services Agreement with IGM Technology Corporation, operating as Gravity by ClearGov, to extend budget software services through January 14, 2030, and establish a total not- to-exceed contract amount of $467,071. Amendment No. 1 makes several substantive changes to the original agreement entered into on February 10, 2025. These changes include: extending the contract term by four years; increasing the not-to-exceed compensation to reflect the full five-year pricing structure; adding enforceable 3 3
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performance standards and remediation obligations; establishing transition assistance requirements; and incorporating fiscal protections including an annual appropriation contingency and a no-minimum-expenditure clause. The amendment also formally ratifies the multi-year pricing structure that was contemplated in the original Order Form but not binding under the original one-year term. The platform continues to support the City’s annual budget development, budget book production, and financial transparency functions, and remains operationally necessary during the City’s ongoing ERP system implementation.
Background
The City utilizes the ClearGov/Gravity platform to support development, management, and publication of its annual operating and capital budgets. The system provides functionality for budget book automation in both English and Spanish, budget in brief production, operating, capital and personnel budgeting, open data transparency tools, and business intelligence dashboards.
To evaluate available solutions prior to implementation, staff conducted an informal competitive quotation process and requested pricing, demonstrations, and implementation information from four vendors: Gravity IGM, ClearGov, Questica, and Workiva. Following evaluation, staff determined that Gravity IGM provided the most comprehensive solution based on functionality, reporting capabilities, compliance features, transparency tools, and implementation support.
On February 10, 2025, the City entered into a Professional Services Agreement with IGM Technology Corporation in an amount not-to-exceed $87,100, with an initial term ending January 14, 2026. In January 2026, ClearGov acquired IGM Technology Corporation, and services continued under the successor organization. The original Order Form included a multi-year billing table with optional renewal years through January 14, 2030; however, the original agreement’s term and compensation were limited to Year 1 only and did not obligate either party beyond that initial period. This amendment formalizes the multi-year extension, establishes a binding five-year not-to- exceed amount, and introduces strengthened contractual protections that were absent from the original agreement.
Discussion
The following summarizes each material change made by Amendment No. 1 relative to the original agreement:
1. Contract Term : The original agreement terminated on January 14, 2026.
Amendment No. 1 extends the term through January 14, 2030, establishing a five-year total contract period running from January 15, 2025 through January 14, 2030.
2. Not-to-Exceed (NTE) Compensation: The original agreement’s NTE amount was $87,100, covering Year 1 only. Amendment No. 1 replaces that figure with a total five-year not-to-exceed amount of $467,071, structured as annual subscription payments with a 5% year-over-year escalator. Year 1 ($87,100) has been paid. Year 2 ($90,149) is currently outstanding and will be processed 3 3
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upon Council approval of this amendment.
3. Project Cooperation Standard: The original agreement contained a general standard of care provision but did not specify response time requirements for ongoing implementation activities. Amendment No. 1 adds an explicit project cooperation clause requiring the Consultant to respond to City written communications regarding implementation and support matters within three (3) business days, unless a shorter response period is operationally necessary.
This addresses documented responsiveness issues experienced during Year 1.
4. Remediation Obligations: The original agreement’s Section 23 addressed responsibility for errors generally. Amendment No. 1 adds a dedicated remediation obligation requiring the Consultant to correct deficiencies in services, deliverables, configurations, reports, or implementation activities attributable to Consultant acts or omissions at no additional cost to the City. This clause strengthens the City’s ability to compel corrective action without requiring renegotiation or change orders.
5. Transition Assistance on Expiration or Termination: The original agreement has no outline on transition obligations upon service expiration or termination.
Amendment No. 1 requires the Consultant to provide commercially reasonable cooperation to facilitate orderly transition of City data, including data exports, configurations, reports, and documentation maintained within the system. Any transition assistance requested beyond the Consultant’s standard data export and offboarding processes may be billed at then-current professional service rates, unless the termination resulted from the Consultant’s material breach, in which case transition assistance must be provided at no additional cost to the City.
6. Replacement Exhibit A - Order Form O-05422-2025-1: The original Exhibit A (Order Form O-05422-2025) is replaced in its entirety with a new Order Form O-05422-2025-1. The new order form reflects the five-year subscription term, updated billing table, and confirms the 5% annual price adjustment. It also updates the ClearGov contact information to reflect the acquisition of IGM Technology Corporation.
7. Outstanding SOW Deliverables: The amendment acknowledges that certain implementation deliverables remain outstanding as of the effective date, specifically the Power BI Dashboards and Financial Engagement Statements of Work. The parties are required to use commercially reasonable efforts to finalize these SOWs within 30 days of the effective date, with continued good-faith negotiation required if that deadline is not met. This is a new contractual commitment that did not exist in the original agreement.
8. Annual Appropriation Contingency: The original agreement was silent on appropriation contingency. Amendment No. 1 expressly conditions the City’s multi-year payment obligations on annual Council appropriation of funds. In any fiscal year where sufficient funds are not appropriated, the City may terminate the agreement without penalty upon written notice. This is a standard and important protection for multi-year public contracts.
9. No Minimum Expenditure Guarantee: Amendment No. 1 clarifies that nothing in the agreement obligates the City to expend any specific amount in any given 3 3
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fiscal year. Payment is due only for services authorized and actually performed.
10.No Waiver of Prior Service Issues: The original agreement’s Section 35 addressed non-waiver generally. Amendment No. 1 adds a specific no-waiver clause stating that the City’s continued use of the software and acceptance of services despite prior delays, support issues, or operational disruptions does not waive any rights, remedies, or future enforcement rights available to the City.
This is directly responsive to the Year 1 service delivery issues documented by staff.
11.Procurement Compliance Acknowledgment: The amendment includes an explicit acknowledgment that it constitutes a single integrated multi-year contract approved by Council, and that it is not intended to divide or segment the agreement to avoid procurement thresholds or competitive bidding requirements. This is a legally significant clause that clarifies the City’s intent and compliance posture.
12.Ratification of Multi-Year Pricing: The amendment ratifies and clarifies that the multi-year pricing structure referenced in the original Exhibit A was always contemplated as part of the full agreement, and that this amendment supersedes any prior interpretation treating those years as independent annual agreements.
Performance Standards and Service Delivery History
Since implementation in early 2025, the City experienced service delivery issues related to responsiveness, system configuration, reporting functionality, training, and integration support. While the platform remains operationally necessary, these issues impacted internal timelines and staff resources during a significantly busy period preparing the FY 2025/26 budget book and continued to experience service and software delivery issues during the FY 2026/27 budget preparation. The contractual additions described above, specifically Sections 2.a, 2.b, 21.c, and 7, directly address those deficiencies by establishing enforceable standards, remediation obligations, and preserving the City’s enforcement rights going forward.
Agreement Cost
The payment schedule for the five-year contract is as follows:
Period Date Software
Services
Professional
Services
Total Cost
Year 1 Jan. 15, 2025 – Jan. 14, 2026 $87,100 Included $87,100 Year 2 Jan. 15, 2026 – Jan. 14, 2027 $90,149 $90,149
Year 3 Jan. 15, 2027 – Jan. 14, 2028 $93,304 $93,304
Year 4 Jan. 15, 2028 – Jan. 14, 2029 $96,569 $96,569
Year 5 Jan. 15, 2029 – Jan. 14, 2030 $99,949 $99,949
Total 5-year cost: $467,071
Upon Council approval, Finance will process the Year 2 invoice, which was held pending formalization of this amendment and resolution of outstanding Year 1 deliverables.
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Strategic Targets and Goals
Approval of the Professional Services Agreement with IGM Technology Corporation, aligns with Goal 1. Improved Operational and Financial Capacity.
Fiscal Impact
The total General Fund impact of this agreement is $467,071 over the five-year term.
Sufficient budget exists in Finance’s FY 2026/27 operating budget to support this item.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement with IGM Technology Corporation to renew and extend the contract term for the Gravity Budget Software Services through January 14, 2030; and
2. Authorize the City Manager, or designee, to execute Amendment No. 1; and
3. Authorize the Finance Director of Finance & Management Services to establish a purchase order for the total Not-to-Exceed contract amount of $467,071 over the five-year term.
Attachments
Attachment 1 Amendment No. 1 to PSA - IGM-CLEARGOV
Attachment 2 Exhibit A – Order Form – ClearGov-Gravity
Attachment 3 Original Professional Service Agreement IGM Technology Corporation.
Ward:
All Wards
Synopsis of Previous Council Actions:
February 10, 2025 - The Mayor and City Council of the City of San Bernardino, CA Award a Professional Services Agreement for IGM Technology Corporation for the Gravity Implementation Budget Software Services.
CC: Eric Levitt, City Manager