REPORT TO THE CITY COUNCIL FROM: BRYON HORN, Chief Information Officer Information Services Department BY: DENNIS JONES, Systems & Applications Manager Information Services Department] SUBJECT ..Title Actions pertaining to software services with CentralSquare: 1. Approve the Third Amendment to Agreement with CentralSquare, authorizing the Chief Information Officer to renew the software hosting, maintenance, and support services with CentralSquare in the amount of $250,970.51 for 2025. 2. Authorize the Chief Information Officer to renew the agreement with CentralSquare for three optional one-year extensions provided the annual increase does not exceed 10% over the previous year. ..Body RECOMMENDATION Staff recommends the City Council approve the Third Amendment to Agreement with CentralSquare and authorize the Chief Information Officer to renew annual software hosting, maintenance, and support services with CentralSquare, supporting the utility billing application to be renewed at an amount of $250,970.51 for the calendar year 2025. The City currently has a contract with CentralSquare with approval by Council not to exceed $234,551.88, therefore, the Information Services Department (ISD) is seeking Council approval for the increased amount. Additionally, we recommend the Chief Information Officer be given approval to renew the agreement with CentralSquare for three optional one-year extensions provided the annual increase does not exceed 10% over the previous year. EXECUTIVE SUMMARY The City of Fresno completed a 5-year term with CentralSquare which was previously approved by Council with a not to exceed amount of $225,000 per year through 2023. An extension was approved for calendar year 2024 not to exceed $234,551.88. The current contract allows renewals to continue annually, and, through annual support fee increases, the yearly amount for calendar year 2025 is now $250,970.51 which exceeds the previous Council approved amount of $234,551.88. We are requesting authorization for the Chief Information Officer to renew the CentralSquare hosting and support at this new amount. Additionally, we are requesting authorization for the Chief Information Officer to renew the agreement with CentralSquare for three optional one-year extensions provided the annual increase does not exceed 10% over the previous year. ISD shall evaluate the need for renewals each year. Appropriations exist in ISD's FY25 budget. BACKGROUND * The City has used CentralSquare software on-premise and as a hosted solution continually since 1992. CentralSquare was formerly known as Superion, SunGard Public Sector and before that as HTE. * On April 1, 2009, the City entered into an Application Services Provider agreement for a term of 5 years with SunGard Public Sector for software hosting services for the City's utility billing, building permits, code enforcement and planning & zoning applications. The yearly cost was $197,100. * On April 1, 2014, the City amended their 2009 agreement with SunGard Public Sector to extend the terms of the 2009 agreement for 5 years to March 31, 2019, at the rate of $269,576 annually. * Having successfully completed the move to Accela, applications for building permits, code enforcement and planning, which were previously hosted by then Superion, became "read-only" at a reduced fee. * On June 13, 2019, Council approved a Solutions Agreement with Superion LLC (Now CentralSquare) to renew annually for 5 years with a not to exceed amount of $225,000. * On January 21, 2020, the Solutions Agreement was amended to modify the payment terms and payment schedule. * On December 14, 2023, Council approved an amendment to the agreement with CentralSquare to extend between January 1st, 2024 and December 31st, 2024 with a not to exceed amount of $234,551.88 The City Attorney's Office has reviewed and approved the third amendment as to form. ENVIRONMENTAL FINDINGS The approval of this agreement is not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable as this is a change to an existing agreement. FISCAL IMPACT The approved FY24 and proposed FY25 budgets contain funding for this item. Attachments: Third Amended Agreement Renewal Order Jan. 2025 Original Agreement 2019