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APPROVE AN ADDENDUM TO THE LICENSE AGREEMENT WITH ZENCITY TECHNOLOGIES
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RECOMMENDATION
It is recommended that the City Council approve by motion:
1. An addendum to the annual software license agreement with Zencity Technologies (Zencity) in the amount of $63,000. This price includes $43,000 for the annual software service subscription and $20,000 for the ad-hoc Pulse Survey.
2. Authorize the City Manager to continue this annual Software-as-a-Service (SaaS) subscription through the regular budget approval process.
It is also recommended that the City Manager be authorized to take appropriate and necessary action to carry out the purpose and intent of this motion.
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Summary
In January 2022, the Office of Performance and Data Analytics (OPDA) entered into an administratively approved, single available source agreement with Zencity, a technology platform identified to support the overall objective of the OPDA. The current agreement is nearing its limit under the City Manager’s administrative authority. Staff has found the platform is an asset to the OPDA, the City’s strategic goal setting and planning workshops, and overall planning and implementation of the Council’s priority goals.
Staff is now requesting Council approval of the Annual License Agreement Addendum (Attachment A), and authority to continue the annual software subscription in order to preserve continuity of services.
DISCUSSION
Background
Since the establishment of the OPDA in May 2020, the City of Stockton has made implementation of a comprehensive and integrated performance management program a priority. The City’s goal, operationally, is to deliver better, faster, and smarter services to the community, in alignment with the Council’s established priority goals. To help gauge the community’s awareness and perception of City operations, the OPDA began looking for civic engagement opportunities to gather organic feedback that would ultimately help guide and prioritize the work of the City Manager and staff.
In January of 2022, after reviewing software platforms and other opportunities providing such services, the OPDA determined that Zencity was able to provide the most robust platform specifically geared toward local government, for the sole purpose of garnering an in-depth understanding of citizen feedback. As a result, a single available source license agreement was administratively executed and Zencity began developing a civic engagement strategy for surveying and collecting data from the Stockton community.
To establish a baseline for civic engagement and community feedback, results from Zencity’s initial efforts were presented to the Council during its February 2023 Strategic Goal Setting and Planning Workshop. Since the 2023 workshop, Zencity continues to engage with the community, improving and expanding their efforts and strategies each time. The City Council approved the previous annual subscription in January of 2024, in preparation for the February 2024 Annual Strategic Goal Setting and Planning Workshop. The City wishes to continue services moving forward.
Present Situation
The City currently utilizes an annual “software as a service” licensing agreement for its base package with Zencity, while also adding additional surveys and services as needed. The initial agreement was approved administratively, within the City Manager’s contracting authority, following approval of a single available source justification in compliance with SMC 3.68 and administrative policy 17.05.130 - Justification for Sole Source, Sole Brand, and Single Available Source Procurements.
It is standard industry practice for software as a service platform to be controlled by annual software licensing agreements issued by the vendor. Because this is software as a service, it is cost prohibitive to advertise and compete a new procurement each year, and functionally inefficient to replace the platform each year.
In the first two calendar years of working with Zencity, the City has expended $99,000. In preparation for the 2024 calendar year, Council approved an annual software licensing renewal valued at $63,000.
Staff is now requesting that the Council approve the current annual software licensing renewal, also in the amount of $63,000, and authorize the City Manager to continue services under an annual software subscription through subsequent budget preparation and approval processes.
FINANCIAL SUMMARY
Funds have been budgeted in FY 2024-25 and are available in the Non-Departmental Citywide Special Services account. To support continuity of services in subsequent years, costs will be budgeted in the same account and subject to Council approval during the annual budget development process. This will allow the City to maintain its base package under the subscription based, annual licensing agreement.
Attachment A - Zencity License Agreement Addendum