Agenda Item #13.1
For Council Meeting of: October 13, 2026
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: SCOTT WAGNER, CHIEF FINANCIAL OFFICER
SUBJECT: APPROVAL – THIRD AMENDMENT TO PURCHASE ORDER 170609 TO EXTEND THE TERM ONE YEAR AND ADD COMPENSATION FOR ONGOING USE OF PLANETBIDS BID PLATFORM AGENDA ACTION: MOTION
RECOMMENDATION
The Finance Department recommends that the Council, by motion, approve the Third Amendment to Purchase Order Number 170609 with PlanetBids, LLC, Osmond Beach, Florida to extend the term by one (1) year and add compensation in the amount of $24,122, for a total amount not to exceed $110,303.46, and authorize the Purchasing Agent to execute the Amendment. This item has no impact on current fiscal year budget.
EXECUTIVE SUMMARY
The Purchasing Division of the Finance Department (Purchasing) and Capital Improvement Projects (CIP) Division of the Transportation and Public Works Department utilize the PlanetBids bid platform for posting and managing bid solicitations. Purchase Order 170609 is due to expire on November 4, 2026.
GOAL
This item relates to Council Goal #1 - Achieve and Maintain Fiscal Sustainability and Budgeting Excellence by providing an electronic bidding platform that is a critical component of the City’s procurement process, serving as the sole system used by CIP and Purchasing staff to publicly advertise, receive, and manage formal solicitations
BACKGROUND/PRIOR COUNCIL REVIEW
Purchasing and CIP use this online bid platform, which serves multiple functions:
Vendor Registration: Allows vendors to easily sign up and maintain their profiles.
Posting Solicitations: Enables the divisions to publicly share bids and solicitations for various projects.
Q&A Process: Facilitates communication between vendors and the City regarding bid specifications and requirements.
Tracking Bid Requests: Helps the divisions monitor and manage incoming bids efficiently.
Reporting Features: Provides insights and analytics to support decision-making and compliance.
Advanced E-bidding: Streamlines the submission and evaluation of bids for CIP.
This comprehensive approach not only enhances transparency but also increases efficiency in the bidding process, benefiting both the City and its vendors.
On January 14, 2013, Request for Proposals 13-04 was opened by the Purchasing Agent, soliciting proposals to move the City’s antiquated manual bid process to an online bidding service.
On November 1, 2013, the Purchasing Agent, via memo, approved General Services Agreement (GSA) F000642 for online bidding services for a five-year term with one (5) year extension option in the amount of $44,437.50 to PlanetBids, Inc. The contract term expired on October 31, 2023.
On October 17, 2023, the Purchasing Agent issued Purchase Order (PO) 170609 to PlanetBids, LLC in the amount of $27,337.50 for a one-year continuance of services with no increase in the original price from the previous Agreement, with the intent to allow facilitation of a bid process to establish a new agreement within the next year.
On October 2, 2024, the City Manager approved a one-year extension under the First Amendment to PO 170609 in the amount of $28,704.37, for a cumulative not to exceed amount of $56,041.87.
On September 16, 2025, the City Manager approved a one-year extension under the Second Amendment to PO 170609 in the amount of $30,139.59, for a cumulative not to exceed amount of $86,181.46.
ANALYSIS
An electronic bid platform is a critical component of the City’s procurement process, serving as the sole system used by CIP and Purchasing staff to publicly advertise, receive, and manage formal solicitations. The current contract provides software licensing for 10 users, including five Purchasing staff, five CIP staff, and one read-only license for the City Attorney’s Office.
Over the past two years, efforts to evaluate and implement a citywide, full-service procurement software solution have been deferred due to budget constraints. As a result, maintaining a reliable and functional electronic bid platform remains essential to ensuring continuity of operations and compliance with public bidding requirements.
Given the critical nature of these services, staff recommends extending the current PO for an additional one-year term. On July 21, 2026, PlanetBids, Inc. submitted Addendum No. 3 to extend services under PO 170609, which includes a 5% price increase.
During review of the proposal, Purchasing and CIP staff determined that the insurance compliance module was not being fully utilized and elected to discontinue this module as part of the extension, resulting in a cost savings of $7,524.56. Staff evaluated the proposed pricing and determined the increase to be fair and reasonable, particularly given that PlanetBids has provided reliable online bidding services to the City since 2013 and has only implemented two prior 5% rate adjustments.
Approval of this extension is necessary to ensure the City’s uninterrupted ability to publicly advertise, manage, and award procurement opportunities through a secure and established electronic bidding platform while longer-term full-service procurement software solutions continue to be evaluated as funding becomes available.
Under City Code 3-08.110(A), the Amendment to extend the term and increase compensation for PO 170609 requires approval by City Council.
FISCAL IMPACT
Approval of this action does not have a fiscal impact on the General Fund.
ENVIRONMENTAL IMPACT
Pursuant to CEQA Guidelines Section 15378(b)(5), the recommended action is not a “project” subject to the California Environmental Quality Act (CEQA) because extending a purchase order for continued use of an electronic bidding platform is an administrative activity that will not result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Attachment 1 – PlanetBids Extension Proposal
PRESENTER(S)
Scott Wagner, Chief Financial Officer
THIRD AMENDMENT TO PURCHASE ORDER 170609 TO EXTEND THE TERM ONE YEAR AND ADD COMPENSATION FOR ONGOING USE OF PLANETBIDS BID PLATFORM PAGE 3 OF 3