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APPROVE MOTION TO AUTHORIZE STANDARD AGREEMENT AMENDMENT NO. 2 FOR COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM FOR MUNICIPAL UTILITIES AND PUBLIC WORKS DEPARTMENTS
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize the City Manager to execute Standard Agreement Amendment No. 2, in the amount of $141,200, with Azteca Systems, LLC of Sandy, UT, for the Computerized Maintenance Management System for Municipal Utilities and Public Works Departments.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
Public Works is responsible for maintaining multiple City assets, including streets, signs, sidewalks, traffic signals, streetlights, fleet, equipment, facilities, and trees. Municipal Utilities Department (MUD) maintains all assets associated with water distribution, wastewater and stormwater collection, water and sewer treatment, pipes, pumps, motors, lift stations, and accessory assets.
On March 10, 2020, by Motion No. 2020-03-10-1104, Council awarded a five-year agreement, in the amount of $700,000, to Azteca Systems, LLC of Sandy, UT, for the Computerized Maintenance Management System (CMMS) for MUD and Public Works (Attachment A).
On January 16, 2025, the City Manager approved Standard Agreement Amendment No. 1 with Azteca Systems, LLC, in the amount of $140,000, for the first one-year extension of the contract from March 24, 2025, to March 23, 2026 (Attachment B).
On March 24, 2025, the City Manager approved Contract Change Order No. 1 with Azteca Systems, LLC, in the amount of $14,850, to evaluate and allow the remote upgrade of the Cityworks server for Public Works (Attachment C).
It is recommended that Council approve a motion authorizing the City Manager to execute Standard Agreement Amendment No. 2 with Azteca Systems, LLC, in the amount of $141,200, for the second one-year extension and for a total cost not to exceed the amount of $996,050 (Attachments D and E). The amendment will extend the contract from March 24, 2026, to March 23, 2027.
DISCUSSION
Background
In 2011, the City retained NextLevel Information Technology, Inc. to develop a Citywide Technology Strategic Plan (CTSP). On June 19, 2012, by Motion No. 2012-06-19-1502, Council approved accepting the CTSP. One of the projects identified as a priority in the CTSP was the replacement of the City’s CMMS for MUD and Public Works.
A CMMS is a database for an organization’s maintenance operations. This information is used to schedule and track preventative maintenance, thereby decreasing corrective work due to equipment or infrastructure failure. A CMMS also records all work that has been completed. This information is used in reporting to ensure regulatory compliance and to efficiently schedule the use of labor and equipment.
On March 10, 2020, by Motion No. 2020-03-10-1104, Council awarded a five-year agreement, in the amount of $700,000, to Azteca Systems, LLC of Sandy, UT, for the CMMS for MUD and Public Works (Attachment A).
On January 16, 2025, the City Manager approved Standard Agreement Amendment No. 1 with Azteca Systems, LLC, in the amount of $140,000, for the first one-year extension of the contract from March 24, 2025, to March 23, 2026 (Attachment B).
On March 24, 2025, the City Manager approved Contract Change Order No. 1 with Azteca Systems, LLC, in the amount of $14,850, to evaluate and allow the remote upgrade of the Cityworks server for Public Works (Attachment C).
Present Situation
Public Works is responsible for maintaining multiple City assets, including streets, signs, sidewalks, traffic signals, streetlights, fleet, equipment, facilities, and trees. MUD maintains all assets associated with water distribution, wastewater and stormwater collection, water and sewer treatment, pipes, pumps, motors, lift stations, and accessory assets.
Since its implementation, more than 250 City employees have successfully utilized the Cityworks software. This also includes 145 mobile devices that allow users to access the system remotely at work sites. Both departments continue to add new departmental workflows into the system and improve the software. The Cityworks software must be kept up to date to receive user support, program fixes, modifications, and upgrades from Azteca Systems, LLC.
It is recommended that Council approve a motion authorizing the City Manager to execute Standard Agreement Amendment No. 2 with Azteca Systems, LLC, in the amount of $141,200, for the second one-year extension and for a total cost not to exceed the amount of $996,050 (Attachment D). The amendment will extend the contract from March 24, 2026, to March 23, 2027.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. Continuing to utilize Azteca Systems, LLC’s Cityworks CMMS will leverage investments in employee training, resulting in continued efficiency when scheduling and tracking preventative maintenance and thereby decreasing corrective work due to equipment or infrastructure failure.
2. Using Azteca Systems, LLC’s Cityworks CMMS will allow both MUD and Public Works to continue to improve the software and add new departmental workflows into the system.
3. Azteca Systems, LLC is the maker and current provider of support and maintenance for the Azteca Systems, LLC’s Cityworks CMMS.
4. Continuing to use Azteca Systems, LLC’s Cityworks CMMS technology ensures the City receives proper user support, program fixes, modifications, and upgrades.
5. Azteca Systems, LLC’s Cityworks CMMS has integrated with the City’s AskStockton platform, which enables MUD and Public Works respond to residents’ requests and concerns directly in the Azteca Systems, LLC’s Cityworks CMMS.
6. The City negotiated a contract for initial acquisition of the Azteca Systems, LLC’s Cityworks CMMS following solicitation of competitive proposals in accordance with SMC 3.68.070.A.3.
FINANCIAL SUMMARY
There are sufficient funds available in Fiscal Year 2025-26 Public Works Software Maintenance accounts and MUD’s Technology Services Division Software Maintenance accounts. The contract costs will be split between both departments. Public Works will pay $70,000, and MUD will pay $71,200 per year (Attachment E).
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Five-Year Agreement with Azteca Systems, LLC
Attachment B - Standard Agreement Amendment No. 1 with Azteca Systems, LLC
Attachment C - Contract Change Order No. 1 with Azteca Systems, LLC
Attachment D - Standard Agreement Amendment No. 2 with Azteca Systems, LLC
Attachment E - Funding Source