CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 7, 2026
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager
Department: City Manager's Office
Subject: Amendment No. 1 to the Professional Services
Agreement with TruePoint Solutions, LLC (formerly Gray
Quarter) for the Land Management System
Implementation Project Increasing the Not-To-Exceed
Amount by $307,535 (All Wards).
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Adopt Resolution No. 2026-161 approving Amendment No. 1 to the Professional Services Agreement with TruePoint Solutions, LLC adding an eighteen (18)-month Managed Services subscription in the amount of $185,000; ratifying Change Orders 2 and 3 and authorizing payment for the completed work in the amount of $64,035; and approving Change Order 5 in the amount of $58,500; thereby increasing the not-to-exceed amount by $307,535 for a new total contract amount not to exceed $2,407,871; and
2. Adopt Resolution No. 2026-162 authorizing the reallocation of $64,035 in American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF), previously obligated under the Hosted Services Agreement with TruePoint Solutions, LLC (formerly Gray Quarter Inc.), to the Professional Services Agreement with TruePoint Solutions, LLC.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
The Land Management System Implementation Project is the complete replacement of the City's existing permitting and business licensing system, which is used by multiple Departments and Divisions, including Business Registration, Building and Safety, Planning, and Public Works. The project replaces a cumbersome permitting and licensing database with a modern system that incorporates workflow management, built-in automation, and an online public portal. Due to the complexity of the implementation, Amendment No. 1 adds an eighteen (18)-month Managed Services subscription to provide post-implementation technical assistance, allowing staff to refine and optimize the system's workflows and automations after go-live. The amendment also incorporates Change Orders 2, 3, and 5 into the agreement's not-toexceed amount. Change Orders 2 and 3, which have already been completed, integrated the City's existing credit card processor with the system and provided extended support for Business Registration. Change Order 5 provides additional resources to configure an online interface that will assist customers with permit applications.
The total cost of Amendment No. 1 is $307,535, which includes the Managed Services subscription and the three change orders. The Managed Services subscription and Change Order 5 will be funded with $243,500 in IT Funds from the project's existing budget. Change Orders 2 and 3, totaling $64,035, will be funded by reallocating unexpended ARPA funds previously obligated under the Hosted Services Agreement with TruePoint Solutions, LLC (formerly Gray Quarter Inc.). U.S. Treasury guidance permits this reallocation because (1) the funds were obligated under the Hosted Services Agreement by December 31, 2024; (2) the Professional Services Agreement that they are being reallocated to was also executed before that date; (3) the Professional Services Agreement allows for change orders, and (4) Change Orders 2 and 3 are within substantially the same scope and for substantially the same purpose as the original agreement.
Background
The Land Management System (LMS) Implementation Project is the modernization of the City’s permitting and licensing system, which is used by Building & Safety, Business Registration, the Planning Division, and Public Works. The LMS will replace outdated systems like PermitsPlus, which has been in place for more than 20 years and lacks the flexibility and automation necessary for modern city planning. The modernization is intended to improve efficiency, transparency, and service delivery by enhancing how the City manages land-related activities and making relevant information more accessible to City officials and the public.
To fund this modernization, the Mayor and City Council allocated $3,200,000 in ARPA funds for the LMS Implementation project and $5,889,651.87 in Information Technology (IT) funds for the software licensing, implementation, data conversion, and supplemental staffing costs that are shared across both the LMS and ERP (Enterprise Resource Planning) implementation projects. Specifically, the Mayor and City Council approved the following agreements on November 20, 2024 for the LMS project:
• Subscription Services Agreement with Accela in the amount of $2,151,657.34 for a seven-year license to the Accela Civic Platform. The Accela Civic Platform is a cloud-based system that serves as the new LMS platform that will be used by City staff and the public. ARPA funds totaling $473,280 will be used to pay for the first two years of software license costs; years three through seven will be billed annually thereafter and use IT funds or another source. • Professional Services Agreement with Gray Quarter (now TruePoint Solutions, LLC, following a corporate merger) in the amount of $2,100,336.00, funded with ARPA funds, to implement the Accela Civic Platform. These services include developing workflows, automations, and configuring the system to meet the City’s operational needs.
• Hosted Services Agreement with Gray Quarter (now TruePoint Solutions, LLC, following a corporate merger) in the amount of $767,675. This agreement is funded with both ARPA and IT funds and includes five years of software licenses for various addons to the Accela Civic Platform. These add-ons provide enhanced features and functionality, including a digital plan room for performing virtual plan checks, integration with the City’s records management system, access to DocuSign for electronic signatures, etc.
• Professional Services Agreement with Onsite Computing in the amount of $520,000, funded with IT Funds, for data migration services. This agreement involves transferring the data from the City’s existing systems to the new systems and supports both the LMS Implementation Project and the ERP Implementation Project, the latter of which involves modernizing the City’s financial and payroll systems.
• Professional Services Agreements with Willdan, CSG Consultants, and Rick Engineering in the amount of $448,800 each ($1,346,400 total), funded with IT funds, for supplemental staffing. These agreements provide supplemental staffing to backfill City personnel who are assigned to the implementation project, allowing those employees to focus on project-related responsibilities while maintaining sufficient staffing levels to ensure the continuity of City operations.
Discussion
The implementation of a new land management system requires City staff to work with the system implementer to develop and configure automated workflows and task management processes for each type of license and permit issued by the City. The City’s existing system does not provide for these automations; instead, it is more akin to a virtual filing cabinet where records are created in a database and then manually updated by City staff with minimal automation and zero notifications. As a result, developing and implementing these new digital workflows and processes from scratch represents a significant undertaking that requires ongoing testing, refinement, and configuration, even after each component “goes live” for public use.
When the business licensing component of the LMS went live in 2025, it became apparent that additional refinement was needed to resolve technical glitches and unintended workflow errors in the system. To address these issues, Amendment No. 1 to the Professional Services Agreement with TruePoint Solutions, LLC adds an eighteen (18)-month Managed Services subscription that provides the City with continued technical assistance. Managed Services is a Tier 2/3 support service that will allow staff to resolve outstanding issues and continue to optimize, modify, and reconfigure the system after go-live so that it better meets the operational needs of the City and the service needs of the public. These services will also be available to the other departments and divisions that use the LMS, allowing for continued refinement as their respective components of the system go live. The total cost of the Managed Services subscription is $185,000, which will be funded using the available balance of IT Funds already allocated to the project. ARPA funds will not be used for this component because the subscription extends through April 30, 2028, well beyond the ARPA expenditure deadline of December 31, 2026.
Amendment No. 1 also incorporates the cost of three change orders into the agreement’s total compensation. These change orders total $122,535, of which $64,035 will be paid with ARPA funds reallocated from the Hosted Services Agreement with TruePoint Solutions, LLC (formerly Gray Quarter Inc.) and $58,500 will be paid with IT Funds. ARPA funds cannot cover all three change orders because Change Order 5 will not be completed before the December 31, 2026, expenditure deadline.
The three change orders presented for Council ratification and approval are as follows:
• Change Order 2 – $20,160 – AllPaid Integration.
Integrated the LMS with AllPaid, the City's existing credit card payment processor. The City is currently transitioning its ERP/financial system to a new platform and originally anticipated that a new credit card payment system would be in place before the first LMS component went live. Because the new payment system was not ready in time for the business licensing component, additional configuration and integration were needed so the LMS could communicate with the City's existing processor.
• Change Order 3 – $43,875 – Business Registration Support.
Provided extended support for the Business Registration Division after the business licensing module went live for public use. Further support will be provided through the Managed Services subscription.
• Change Order 5 – $58,500 – GWiz Interface Implementation.
Assigns additional resources to implement the GWiz user interface for the public portal, which helps guide the public through completing permit applications online.
It is important to note that Change Orders 2 and 3 have already been executed by the former Director of Community Development and Housing, and the work associated with these change orders has already been completed by the vendor. This is not aligned with Chapter 3.04 of the City’s Municipal Code, which requires Council approval for any contract cost that exceeds $100,000. Since the execution of these change orders is for a contract that already exceeds $100,000, their execution was outside the former Director’s signing authority and now requires ratification by the City Council before payment can be authorized. The change orders not listed above were either at no cost to the City (Change Order 1) or were canceled due to budget constraints (Change Order 4). Additionally, future change orders are anticipated due to project delays that will push back the go live date for the Public Works module. City staff are currently reviewing the project schedule and will bring back a full report to the Council at a future meeting, along with any associate change order.
Budget Analysis
ARPA Fund Allocation
Of the $3,200,000 in ARPA funds allocated to the LMS Implementation Project, $2,856,797 has been expended, covering the original cost of the LMS implementation and the 2025 and 2026 software license costs for Accela and TruePoint Solutions, LLC (formerly Gray Quarter Inc.). The remaining $343,203 is obligated under the Hosted Services Agreement with TruePoint for future years' software licenses; however, because these hosted services are invoiced annually, the license fees for years three through five will be invoiced after December 31, 2026, and cannot be paid with ARPA funds before the expenditure deadline. As a result, the $343,203 will remain unspent unless it is reallocated to another eligible agreement that was executed by December 31, 2024.
The proposed reallocation will apply $64,035 of these funds to Change Orders 2 and 3 for work that has already been completed, reducing the unspent balance to $279,168. Payment for this work will be issued upon Council approval, well before the December 31, 2026, expenditure deadline. Staff is currently assessing additional funding needs for other ARPA-funded projects, including the ERP Implementation Project. Once these needs are identified, staff will return to Council with recommendations to reallocate the remaining funds to eligible agreements so that they can be spent before the expenditure deadline.
LMS PROJECT ARPA FUND BUDGET
Allocated ARPA Funds $3,200,000.00
LMS Contract Expenditures through December 31, 2026
LMS Implementation (Original Agreement) $2,100,336.00
Accela Software Licenses (First 2 years) $473,280.00
TruePoint Software Licenses (First 2 years) $283,181.00 Total Expenditures $2,856,797.00
Remaining ARPA Fund Balance $343,203.00
Additional Costs with Amendment No. 1
Change Order 2 – AllPaid Integration $20,160.00
Change Order 3 – Business Registration Support $43,875.00 Total Additional Costs $64,035.00
Projected Remaining ARPA Fund Balance $279,168.00
IT Fund Allocation
As of the close of Fiscal Year 2026, the LMS and ERP Implementation Projects had a shared IT Fund budget of $5,889,651.87. Of this amount, $3,407,700 has been obligated through several contracts for supplemental staffing, project management, and data conversion services across both projects, leaving a shared available balance of $2,481,951.87. Amendment No. 1 will use $243,500 of this balance, $185,000 for the Managed Services subscription and $58,500 for Change Order 5, leaving $2,238,451.87 available for future project costs.
SHARED LMS & ERP PROJECT IT FUND BUDGET
Allocated IT Funds $5,889,651.87
Current ERP Contract Obligations
MV Cheng & Associates (Supplemental Staffing) $184,800.00 AppleOne (Supplemental Staffing) $200,000.00
Dixon Mutadzakupa (Project Management) $384,000.00
Onsite Computing (Data Conversion) $775,500.00
Current LMS Contract Obligations
Rick Engineering (Supplemental Staffing) $448,800.00
Willdan (Supplemental Staffing) $448,800.00
CSG Consultants (Supplemental Staffing) $448,800.00
Onsite Computing (Data Conversion) $517,000.00
Total Costs $3,407,700.00
Remaining IT Fund Balance $2,481,951.87
Additional Costs with Amendment No. 1
Managed Services $185,000.00
Change Order 5 – GWiz Interface Integration $58,500.00
Total Additional Costs $243,500.00
Projected Remaining IT Fund Balance $2,238,451.87
ARPA Fund Reallocation Analysis
The U.S. Treasury allows for the reallocation of ARPA funds after December 31, 2024, under the following specific conditions:
1. The excess funds were properly obligated by the deadline. The ARPA funds that are being reallocated must have already been obligated under another contract by the December 31, 2024, deadline and reported to Treasury as being obligated. In this case, the funds were previously obligated under the Hosted Services contract with Gray Quarter, which was approved by Council on November 20, 2024, executed prior to December 31, 2024, and reported to the U.S. Treasury with the City’s 2024 Q4 Project and Expenditure Report.
2. The receiving contract was in place by December 31, 2024. ARPA funds can only be reallocated to an existing contract that was executed by December 31, 2024; a new contract in 2025 or 2026 is ineligible to receive ARPA funds unless it is a replacement contract for when a vendor goes out of business, can't perform, or was terminated. In this case, the ARPA funds are being reallocated to the Professional Services Agreement with TruePoint Solutions, LLC, which was approved by the Council on November 20, 2024, and already uses ARPA funds. It is important to note that the November 20th agreement was originally titled, “Professional Services Agreement with Gray Quarter Inc.”; however, after a corporate merger, the new parent company is TruePoint Solutions, LLC.
3. The receiving contract allows for change orders. Under U.S. Treasury guidance FAQ 17.16, ARPA funds can be reallocated to cover increased costs from change orders or contingencies in another contract that was entered into by December 31, 2024, as long as that agreement expressly provides for change orders and contingencies. Additionally, the amended contract receiving the reallocated ARPA must stay within substantially the same scope and purpose as the original. In this case, Section 4.b. of the original agreement allows for change orders, subject to City approval, and the scope of services under Exhibit A outlines the change order process. The change orders that are using the reallocated ARPA funds are for increased costs associated with completing work under the project’s original scope, which includes allowing for online credit card payments and implementing a business licensing module.
4. The funds are for an eligible use and will be spent by the deadline. ARPA funds that are being reallocated to another project and/or contract must be for an activity that is eligible to use ARPA funds and must be spent by December 31, 2026. In this case, the reallocated ARPA funds are staying within the same ARPA-eligible project. The funds are being used to pay for change orders, where the work has been completed and the City has already been invoiced. Once the change orders are ratified, payment will be issued and the ARPA funds will be expended well before December 31, 2026.
Strategic Goals and Priorities
Approval of Amendment No. 1 is aligned with Key Strategic Goal 2.b. - Evaluate operations and performance, investment in resources, technology, and tools to continually improve organizational efficiency and effectiveness; Fiscal Impact
The total fiscal impact of this action is $307,535. Of this amount, $64,035 will be funded through the reallocation of previously obligated ARPA funds, and $243,500 will be funded from existing IT Fund appropriations available for the LMS/ERP implementation projects. The $243,500 includes $185,000 for the 18-month Managed Services subscription and $58,500 for Change Order 5.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Adopt Resolution No. 2026-161 approving Amendment No. 1 to the Professional Services Agreement with TruePoint Solutions, LLC adding an eighteen (18)-month Managed Services subscription in the amount of $185,000; ratifying Change Orders 2 and 3 and authorizing payment for the completed work in the amount of $64,035; and approving Change Order 5 in the amount of $58,500; thereby increasing the not-to-exceed amount by $307,535 for a new total contract amount not to exceed $2,407,871; and
2. Adopt Resolution No. 2026-162 authorizing the reallocation of $64,035 in American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF), previously obligated under the Hosted Services Agreement with Gray Quarter, to the Professional Services Agreement with TruePoint Solutions, LLC.
Attachments
Attachment 1 – Resolution No 2026-161 Contract Amendment and Change Order Ratification
Attachment 2 – Exhibit A to Resolution No. 2026-161 - Amendment No. 1 to the Agreement with TruePoint Solutions LLC (formerly Gray Quarter Inc.).
Attachment 3 – Exhibit B to Resolution No. 2026-161 - Mayor and City Council Findings.
Attachment 4 – Resolution No 2026-162 ARPA Reallocation for LMS Project Attachment 5 – Change Order 2 - $20,160 – AllPaid Integration.
Attachment 6 – Change Order 3 - $43,875 – Business Registration Support.
Attachment 7 – Change Order 5 - $58,500 – GWiz Interface Integration.
Attachment 8 – Original Professional Services Agreement with Gray Quarter Inc.
Ward:
All Wards
Synopsis of Previous Council Actions:
November 20, 2024 Mayor and City Council allocated $3,200,000 in ARPA funds for the LMS Implementation Project and approved various agreements to carry out the implementation of the LMS.
CC