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13 Staff Report.Procurement and Contract Management Budget Adjustment PREPARED BY: Kinjal Buch Senior Engineering Technician Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 11/21/2023 ITEM NO: 13 DATE: November 6, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Consider the Following Actions for the Procurement and Implementation of the OpenGov Procurement Suite for Contract Management and Maintenance: a. Authorize an Expenditure Budget Transfer in an Amount of $3,000 from project #411-811-0008 (Shannon Road Repair); b. Authorize an Expenditure Budget Transfer in an Amount of $1,000 from project #411-813-0218 (Shannon Road Pedestrian and Bike Improvements); c. Authorize an Expenditure Budget Transfer in an Amount of $5,500 from project #411-813-9921 (Curb, Gutter, and Sidewalk Maintenance); d. Authorize an Expenditure Budget Transfer in an Amount of $10,700 from project #411-811-9901 (Street Repair and Resurfacing); e. Authorize an Expenditure Budget Transfer in an Amount of $500 from project #411-821-2309 (Termite Abatement at Water Tower); f. Authorize an Expenditure Budget Transfer in an Amount of $500 from project #411-831-4605 (Parks Playground Fibar); g. Authorize an Expenditure Budget Transfer in an Amount of $3,000 from project #411-812-0130 (Annual Roadside Fire Fuel Reduction); and h. Authorize an Expenditure Budget Transfer in an Amount of $3,000 from project #411-832-4508 (Annual Vegetation Management Town-Wide). RECOMMENDATION: Consider the following actions for the procurement and implementation of the OpenGov Procurement suite for contract management and maintenance: PAGE 2 OF 4 SUBJECT: Procurement and Implementation of the OpenGov Procurement Suite for Contract Management and Maintenance DATE: November 6, 2023 RECOMMENDATION (continued): a. Authorize an expenditure budget transfer in an amount of $3,000 from project #411-811- 0008 (Shannon Road Repair); b. Authorize an expenditure budget transfer in an amount of $1,000 from project #411-813- 0218 (Shannon Road Pedestrian and Bike Improvements); c. Authorize an expenditure budget transfer in an amount of $5,500 from project #411-813- 9921 (Curb, Gutter, and Sidewalk Maintenance); d. Authorize an expenditure budget transfer in an amount of $10,700 from project #411-811- 9901 (Street Repair and Resurfacing); e. Authorize an expenditure budget transfer in an amount of $500 from project #411-821- 2309 (Termite Abatement at Water Tower); f. Authorize an expenditure budget transfer in an amount of $500 from project #411-831- 4605 (Parks Playground Fibar); g. Authorize an expenditure budget transfer in an amount of $3,000 from project #411-812- 0130 (Annual Roadside Fire Fuel Reduction); and h. Authorize an expenditure budget transfer in an amount of $3,000 from project #411-832- 4508 (Annual Vegetation Management Town-Wide). BACKGROUND: The Town has a decentralized purchasing and contracting system, in which purchases are made and managed by individual Departments after following the appropriate approval and execution protocols. This allows each Department to handle purchase requests specific to its needs and to apply their expertise to the purchasing process. Each agreement requires staff to prepare various documents and to collect multiple pieces of supporting information such as insurance certificates. The Town also follows the California Uniform Public Construction Cost Accounting Act with procedures that provide uniformity of cost accounting standards for construction work performed or contracted by public entities in the State and a method for the bidding of public works projects. The Department of Parks and Public Works (PPW) processes more than 100 agreements annually for items such as construction; on-call consulting; maintenance services for landscaping, lighting, and streetlights; and building maintenance. A significant amount of staff time is spent managing the contract preparation process utilizing Microsoft Word and Excel templates, along with multiple emails back and forth with vendors to obtain all of the required materials. Staff began researching available contract management options, including an evaluation of the new Enterprise Resource Planning (ERP) system currently being implemented for Finance and Human Resources purposes. The Town’s ERP software does not have a contract module that meets the Town’s needs. After additional analysis, staff found that the OpenGov Procurement suite was the most seamless and cost-effective solution. PAGE 3 OF 4 SUBJECT: Procurement and Implementation of the OpenGov Procurement Suite for Contract Management and Maintenance DATE: November 6, 2023 BACKGROUND (continued): The OpenGov Procurement suite would deliver a cloud-based procurement and contracting solution by managing and automating the purchasing and contracting process. This includes Requests for Proposals (RFP), Requests for Bids (RFB), Requests for Qualifications (RFQ), contract awards, contract creation using templates, and contract management. DISCUSSION: OpenGov Procurement and Contract Management suite would help PPW achieve significant efficiencies and time savings with more collaboration, automation, and streamlined solicitation development using boilerplate templates and an extensive scope of work library, centralized contract management with automatic reminders, and the ability to track spending, insurance, and change requests. PPW has been using the Asset Management program offered by Cartegraph for its work orders since 2004. In 2022, Cartegraph was acquired by OpenGov. Since PPW is familiar with Cartegraph/OpenGov, the Department is proposing to add the Procurement and Contract Management suite using the single source clause of the Town Purchasing Policy. A single source is defined as the selection of a good or service that may be available from two or more vendors, but there is a compelling reason to select one particular vendor. The fees for the software and professional services for a one-year period beginning December 30, 2023, are in the amount of $31,644. The agreement is for one year and at the end of the agreement, the Procurement and Contract Management suite and Cartegraph (Asset Management) would be merged into one agreement and brought forward to Council for authorization for the Town Manager to execute an agreement. CONCLUSION: Approval of the recommendations allows Parks and Public Works to move forward with the implementation of this software, improving the efficiency of operations. FISCAL IMPACT: This agreement would utilize a combination of the transfer of funds from the FY 2023/24 – 2027/28 CIP projects considered with this staff report equaling $27,200, along with Adopted Operating Budget funds in the amount of $4,500, for a total amount of $31,700. PAGE 4 OF 4 SUBJECT: Procurement and Implementation of the OpenGov Procurement Suite for Contract Management and Maintenance DATE: November 6, 2023 FISCAL IMPACT (continued): Staff reviewed both the Operating Budget accounts and Capital Improvement Program (CIP) project budgets and identified funds available after existing commitments and determined that the transfer of funds will not impact the completion of the work and/or purchases intended for the projects. The purchase of the new software will be beneficial to all CIP projects. The table below shows the available funding from the Operating and the recommended transfers from CIP projects. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. ATTACHMENT: 1. Agreement for Services with Exhibit A FY23/24 Budget Available GFAR Budget for Transfer Costs SOURCE OF FUNDS Operating Budget: Operational Savings will be Absorbed in the Budget 4,500$ Total Operating Budget 4,500$ CIP Budget: 411-811-0008 (Shannon Road Repair)*3,884,504$ 3,000$ 411-813-0218 (Shannon Road Pedestrian and Bike Improvements)*2,054,662$ 1,000$ 411-813-9921 (Curb, Gutter, and Sidewalk Maintenance)*300,000$ 5,500$ 411-811-9901 (Street Repair and Resurfacing)*872,945$ 10,700$ 411-821-2309 (Termite Abatement at Water Tower)25,000$ 500$ 411-831-4605 (Parks Playground Fibar)57,469$ 500$ 411-812-0130 (Annual Roadside Fire Fuel Reduction)825,191$ 3,000$ 411-832-4508 (Annual Vegetation Management Town-Wide)105,880$ 3,000$ Total CIP Budget 27,200$ Total Source of Funds 31,700$ USE OF FUNDS OpenGov Procurement Suite for Contract Management and Maintenance 31,700$ Total Project Expenditures 31,700$ Remaining Budget $0 *CIP Budget is approximate and may not include FY 22/23 carryforwards OpenGov Procurement Suite