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Finance Committee

Meeting Date:	11/10/2020
FROM:	Bill Gallardo

Subject:

Five-Year Renewal Agreement for Accela Land Use Management Permitting Software

RECOMMENDATION

Authorize and approve a five-year renewal for a professional services agreement (PSA) with Accela Inc. for continued use of a Land Use Management software system in the amounts set forth for the respective fiscal years: $57,947.40 in 2020-21, 2021-22, and 2022-23, $59,685.82 in 2023-24, and $61,476.40 in 2024-2025, totaling $295,004.42.

BACKGROUND/DISCUSSION

Accela is a Land Use Management software system that provides a cloud-based platform for permitting solutions. Accela Inc. is a California company based out of San Ramon and has been an industry leader in designing and delivering government software solutions to improve efficiency, increase citizen engagement and enable the development of thriving communities for over 20 years. In 2017, the City of Brea contracted with Accela Inc. to develop and implement a software system that could be accessed by Planning Division, Building and Safety Division, Public Works Engineering Division, and Fire Prevention Division in an effort to streamline the development review and plan check process.

In 2017, the Finance Committee recommended and City Council approved a PSA with a three-year trial term. The Accela system has since been developed, customized, and had its "go live" within each Division in October 2020 . Due to some unforeseen circumstances, the customization of the Accela system experienced some delays due to a computer server virus in 2019, the COVID-19 pandemic as well as Brea’s unique work flow and the integration of the new financial systems. Now that it is in implementation mode, Development staff in each division has welcomed the newly implemented system and has already experienced some efficiencies. Staff is now working on fully implementing the historic records while creating new records in order to automate the permit work flow. We are confident that the system will bring the improvements to the work flow and enhance our customer's experience.

Staff is requesting to renew the agreement for a five-year period to continue the move towards a government software solution that facilitates development in Brea. Accela is a subscription-based system and is currently covering 22 Brea users. Brea staff has negotiated a five-year contract with Accela resulting in an overall cost savings and an increase of user accounts. The first three years will result in a zero percent (0%) subscription increase followed by a three percent (3%) annual increase the following two years. The contract fees are as shown below:

The proposed annual subscription cost will be offset by our permitting customers through an established technology fee. The annual technology fee account was estimated to generate a revenue ranging between $50,000 - $70,000 and was anticipated to be sufficient to cover the subscription cost including scheduled increases and enhancements. Due to larger project submittals in Fiscal Year 2019-20, the actual technology revenue generated was $125,912 which will be sufficient to cover the annual cost and enhancements.

SUMMARY/FISCAL IMPACT

The Accela Inc. renewal contract amounts are included in the annual budgets for Community Development under the Building & Safety Division. Staff will follow the budget proposal process on an annual basis. As previously stated, it has long been a practice in Brea to have the customer pay for the services provided and this approach is continued by offsetting the subscription costs with the technology fee assessed at permit issuance. There is no anticipated fiscal impact to the General Fund due to continued offset from development technology fees. The five-year PSA contract cost totals $295,004.12. This fee will be programmed in as an annual subscription fee per attached fee schedule.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Gabriel Linares, Community Development Deputy Director and Building & Safety Manager
Concurrence: Tracy Steinkruger, Community Development Director

Attachments
Service agreement
Fee Schedule