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APPROVE FINDINGS AND A MOTION TO EXECUTE AN AMENDMENT TO THE STANDARD AGREEMENT WITH OPPORTUNITYSPACE, INC. DBA TOLEMI IN AN AMOUNT NOT TO EXCEED $960,040.51
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings which support and justify an exception to the competitive bidding process;
2. Approve the option to renew the professional services Standard Agreement with OpportunitySpace, Inc. dba Tolemi in the amount not to exceed $960,040.51 for the additional four (4) year term; and
3. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The Stockton Police Department (SPD), through its Neighborhood Services Section (NSS), currently utilizes the Tolemi software platform, specifically the BuildingBlocks and Slate Rental Registration Application, to significantly enhance proactive code enforcement and data-driven decision-making within the city. This platform is a critical tool for improving neighborhood quality and safety by centralizing and analyzing data across multiple municipal systems.
The Tolemi platform currently supports core departmental functions:
1. Rental Property Registration and Management: Provides an efficient system for the mandatory registration of residential rental properties, ensuring accountability and facilitating communication with property owners regarding code compliance.
2. Rental Property Identification: Enables rapid and accurate identification of rental properties, a vital capability for enforcing the Rental Housing Inspection Program and targeting proactive enforcement efforts.
3. Vacant Property Identification: Assists in tracking properties that are clearly derelict or a nuisance, allowing the city to address immediate quality-of-life concerns.
The initial procurement for a one-year Standard Agreement with Tolemi was administratively executed on March 3, 2025, via a sole source justification, in the amount of $99,000.
The proposed contract amendment (Attachment A) is necessary to fully implement the Commercial Vacant Property and Lot Registration Ordinance, which Council approved on July 29, 2025 (Resolution 2025-07-29-1602). To ensure successful and efficient execution of this new ordinance, staff proposes integrating Tolemi's dedicated Slate Vacant Property Registration platform. This enhancement will provide:
• Comprehensive Compliance Monitoring: A centralized system to manage the registration, fee collection, and compliance tracking for all vacant commercial properties and lots, drastically improving the city’s ability to prevent blight and nuisances.
• Seamless Data Integration: The Vacant Property module is integrated directly with the existing BuildingBlocks application, which prevents the need for a separate system and ensures all property data-rental and vacant-resides on a single, unified platform.
• Revenue Generation and Cost Recovery: The platform will automate the collection of registration fees mandated by the new ordinance, offsetting administrative costs and generating revenue to support code enforcement and neighborhood revitalization efforts.
The additional services, features, and expanded term will provide a holistic solution for managing both residential rentals and commercial/lot vacancies.
Staff recommends that the City Council approve a motion to authorize the City Manager to execute a Standard Agreement Amendment (Attachment A) to the professional services Standard Agreement with Tolemi, increasing the contract amount by $861,040.51 for a total amount not to exceed $960,040.51. This amendment is essential to operationalize the newly adopted Vacant Property Ordinance and to continue leveraging a unified data platform to drive effective, proactive code enforcement across the city.
DISCUSSION
Background
The NSS is responsible for proactive code enforcement, nuisance abatement, and neighborhood revitalization programs, including the mandatory Residential Rental Housing Inspection Program. Effective management of property data and enforcement workflows is essential to achieving these mandates.
To enhance operational efficiency and improve data access, the NSS staff proceeded with a sole source procurement of the Tolemi software platform. On March 3, 2025, the NSS executed a Standard Agreement with Tolemi in the amount of $99,000.00 (Attachment B). The scope of this initial contract included the purchase of the BuildingBlocks and Slate Rental Registration applications, along with an Enterprise License for the NSS. The agreement established a one (1) year term with the option to extend up to four (4) additional years, totaling a potential five (5) year term.
Following the contract execution, a Kickoff meeting between NSS and Tolemi was held on March 17, 2025, initiating the program buildout for the new applications. Both the Slate Rental Registry and BuildingBlocks applications achieved Go-Live status in July 2025. Since implementation in July 2025, the Tolemi platform has generated significant, demonstrable improvements in the efficiency and effectiveness of the Neighborhood Services Section's operations:
• Increased Staff Efficiencies: The centralization of data and streamlined workflows have minimized manual processes, allowing staff to spend more time on field enforcement and less on administrative tasks.
• Enhanced User Friendliness and Service: The system provides a more intuitive and user-friendly interface for both staff and the public registering properties.
• Rapid Notice Generation: The implementation of a One Click Notice Generation feature has drastically reduced the time required to create and issue official compliance notices.
• Integrated Management: The system offers robust Inspection and Scheduling management capabilities specifically tailored for the Rental Property Inspection Program.
• Improved Accessibility: The platform is tablet compatible and provides enhanced access to information in the field, allowing inspectors to make informed decisions immediately.
• Data Foundation: The successful integration with the City’s GIS Server provides critical spatial awareness for targeted enforcement actions and resource allocation.
• The successful deployment and subsequent positive impacts of Tolemi's initial modules establish a proven foundation for the proposed expansion to include the Vacant Property Registration platform, which is required to implement the newly adopted ordinance.
Present Situation
On July 29, 2025, the City Council approved the Commercial Vacant Property and Lot Registration Ordinance (Resolution 2025-07-29-1602). The successful implementation of this new ordinance requires a robust, specialized software tool to enable the NSS and the Community Development Department (CDD) to effectively manage these new registries and monitor properties for compliance and decay.
Staff is proposing to utilize Tolemi's Slate Vacant Property Registration platform, which is fully integrated with the City’s existing BuildingBlocks application. The expansion of this proprietary software platform is necessary because it provides advanced functionality critical for proactive blight prevention. The Tolemi BuildingBlocks software is uniquely suited to manage distressed properties, offering a distinct advantage over generic property registry software:
1. Integrated Data for Risk Assessment: The platform proactively identifies vacant and distressed properties before they become blighted by integrating and analyzing diverse, up-to-date data sources, including:
• Utility usage data (to assess occupancy).
• USPS mail delivery records.
• Current and historical code violation reports.
• Monitoring of pre-foreclosure and foreclosure filings for a complete view of properties in financial distress.
2. Map-Based Analytics and Automation: Tolemi utilizes a map-based analytics approach that provides comprehensive insights through:
• Automated integration of these data sources at regular intervals, ensuring information is always current.
• Process automation based on internal City and County data streams.
• The capability to run advanced spatial queries outside of specialized GIS software, making complex data accessible to all staff users.
• User-generated reports and performance metrics across all data sources contained in the application.
It is important to note that the Tolemi BuildingBlocks software platform, when combined with the Slate application, is a proprietary product, developed and sold exclusively by Opportunity Space, Inc. (Tolemi), justifying the continued sole source approach.
On September 17, 2025, the NSS received a price quote from Tolemi that reflects the necessary expansion and continued operation of the platform. The requested Standard Agreement Amendment is for a multi-annual software license and platform and covers the following scope of services, aligning with the NSS and CDD goal of enhanced effectiveness and efficiency:
• Renewal of the existing BuildingBlocks and Enterprise License.
• Renewal of the program buildout for the successful Rental Property Program.
• Addition of the new Slate Vacant Property Registration platform.
• Development of a Citizen Portal Access feature, including online payment and case maintenance options for the new Vacant Property Program.
• Addition of Direct Mail Services for both the Rental and Vacant Property Programs to streamline owner communications.
• Integration with other critical City software systems (e.g., Acella, Munis, AskStockton, etc.) to ensure seamless data flow across departments.
This multi-year contract amendment, which is subject to a maintenance and support renewal fee not to increase more than five (5) % per year above the base price, is crucial for the continuation of current services and the full, efficient implementation of the newly adopted ordinance.
Table 1 - Year 1 Expenditures (March 2025-March 2026)
|
Expenditure Description |
FY 2025-26 |
|
BuildingBlocks |
$78,000.00 |
|
Enterprise License |
$ 6,000.00 |
|
Slate - Rental Registration |
$15,000.00 |
|
YEAR 1 TOTAL PRICE |
$99,000.00 |
Table 2 - Investment Summary (November 2025-March 2030)
|
Expenditure Description |
Investment |
|
4M Slate Vacant Property Registration - FY 2025-26 |
$ 12,666.67 |
|
Direct Mail Service (VP & Rental) - FY 2025-26 |
$ 14,300.00 |
|
Renewal of all Services - FY 2026-27 |
$193,515.00 |
|
Renewal of all Services - FY 2027-28 |
$203,191.75 |
|
Renewal of all Services - FY 2028-29 |
$213,350.29 |
|
Renewal of all Services - FY 2029-30 |
$224,017.80 |
|
TOTAL PRICE |
$861,040.51 |
Staff recommends Council approve a motion to authorize the City Manager to execute a Standard Agreement Amendment (Attachment A) to the professional services Standard Agreement with Tolemi, for four (4) additional years through March 2030 increasing the contract amount by $861,040.51 for a total amount not to exceed $960,040.51.
Findings
Stockton Municipal Code section 3.68.070 provides an exception to the competitive bidding process in cases where the City Council has made findings that support and justify the exception. The findings are as follows:
1. NSS has an existing Standard Agreement with the option to renew executed by the City Manager and is currently using the software platform;
2. Tolemi is the only vendor who can provide AI-powered predictive system;
3. NSS has vested time, energy, and funding with Tolemi, and it would be detrimental if the department had to proceed with a formal solicitation;
4. Continued partnership with Tolemi is the most cost-effective solution and is within the allotted budget for the project; and
5. Procurement Office recommends and approves the use of the exception to the competitive bidding process.
FINANCIAL SUMMARY
Budget for the Fiscal Year 2025-26 is appropriated in the Police Department’s General Fund. Future year expenditures will be requested in the annual budget appropriation process. Furthermore, the implementation of the Slate Vacant Property Registration platform is anticipated to generate revenue through the collection of registration and compliance fees established by the newly adopted ordinance. This revenue will help offset the operational costs associated with the software, code enforcement staff, and the long-term goal of neighborhood revitalization.
Attachment A - Standard Agreement Amendment
Attachment B - Standard Agreement