City Council
Report
City Council Meeting: June 28, 2022
Agenda Item: 5.H
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services Department David Martin, Director, Community Development Department Subject: Approval of Contract Modification with Open Counter Enterprises, Inc. for Permitting Technology Solutions
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a fourth modification to agreement #4384 for $228,281 with Open Counter Enterprises, Inc. for a modern technology platform supporting Special Events permitting processes. This will result in an eight-year amended agreement with a new total amount not to exceed $458,381 with future year funding contingent on Council budget approval.
Summary
The City has engaged OpenCounter since 2017 to develop systems and portals to improve the City’s permitting processes and customer experience. In that time, the City has launched a customer portal for permits and a special events permits portal. Staff recommends modifying the existing contract with OpenCounter Enterprises, Inc. for an amount not to exceed $228,281 through September 2025, for a total contract not to exceed $458,831 and a term of eight years to pay the vendor for prior development work completed and to support 3 years of the Special Events portal.
Discussion
Under this scope of work, OpenCounter Enterprises, Inc. will maintain the Special Events portal and be reimbursed for additional permitting work performed to date by the vendor. This will allow the public to apply for and pay for special event permits, in an on- 2 of 4
line self-service manner. The public can perform all necessary permit steps on-line without having to come into City Hall.
OpenCounter was initially engaged to build a customer portal that would help those seeking to open businesses in Santa Monica to see land-use restrictions for different addresses, the required permits for various business activities and estimate the permit costs. That portal was launched in 2019 and the City entered into a first contract modification to extend support for this plan check review portal through 2021, but it has not been widely used and is being discontinued.
Building on the work previously done with OpenCounter and in an effort to transition from manual to digital processes during the pandemic, the City entered into a second contract modification to build a portal that would help staff and customers track and process special event permit applications. This special events portal launched in 2021 and is now in production. Prior to the launch of the portal, the City entered into a third modification with OpenCounter to add payment processing functions and improved security enhancements that would support the special events portal.
While the special events portal was being developed, the City has also been exploring replacement of its permitting and plan check systems. As part of that effort, staff had initial engagements with OpenCounter in several areas for permits issued by the Mobility Division, the Public Works Department, and Community Development Department as part of exploring whether OpenCounter could replace our existing permitting and land use systems. However, staff have determined that it is in the best interests of the City to undertake a request for proposals to fully evaluate the marketplace and identify the best fit for the City.
Therefore, staff are requesting a fourth modification to the agreement with OpenCounter to pay for initial work done with departments as part of the permitting assessments as well as to support the Special Events Portal for three more years while the permitting RFP and system implementation is completed.
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Vendor Selection
Santa Monica entered into the original agreement with OpenCounter in 2017 under City Manager authority based on an exception to the competitive process due to OpenCounter’s unique zoning and permit discovery technology, along with their experience and focus on working with cities to develop value-add solutions that work with Accela and other widely used permitting systems. OpenCounter is a software development firm that has focused its mission on working with cities to improve the customer experience around permitting and plan check review. They have worked with many cities, including Sacramento, San Jose, San Diego, Detroit, Cincinnati, Orlando, and Atlanta to transform city permitting processes and continue to develop and expand their capabilities with each City partnership.
Work has been completed beyond City Manager authorized authority and this modification is needed in order to pay the vendor for completed work.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund and Water/Wastewater Funds to increase the amount of the agreement with OpenCounter Enterprises, Inc. for development work completed and to support 3 years of the Special Events portal.
Future funding for the annual subscription costs is contingent on Council budget approval.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY21/22
Modified Request
Amount
Future Years
Dept/CIP Account #
Total Revised
Contract Amount
4384 $67,500 C55000314.589000 $67,500
$75,000 SO019701.689000 $75,000
$38,000 C7100030.689000 $38,000
$49,600 01400015.529230 $49,600
$25,700 $58,500 01140001.529230 $84,200
$38,000 01700002.552010 $38,000
$97,800 01400015.529230 $97,800
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$1,108 01600002.550010 $1,108
$253 51500001.550010 $253
$383 50500001.550010 $383
$6,537 01500031.552010 $6,537
Total: $230,100 $71,981 $156,300 $458,381
Prepared By: Margaret Talamantes, Administrative Services Officer Approved Forwarded to Council
Attachments:
A. OAKS OpenCounter
B. OpenCounter Ct. 4384
C. OpenCounter Ct. 4384 First Modification
D. OpenCounter Ct. 4384 Second Modification
E. OpenCounter Ct. 4384 Third Modification