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Home My WebLink AboutStaff Report 2501-4024CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, March 03, 2025 Council Chambers & Hybrid 5:30 PM Agenda Item 4.Approval of Contract Amendment Number 3 to Contract Number S17167826 with NEOGOV, in the Amount of $87,700 to Extend Onboarding Recruitment Software as a Service Subscription for an Additional Year for a Revised Total not-to-exceed Amount of $499,022 Over 9 Years. CEQA Status - exempt. 6 3 4 7 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: March 3, 2025 Report #:2501-4024 TITLE Approval of Contract Amendment Number 3 to Contract Number S17167826 with NEOGOV, in the Amount of $87,700 to Extend Onboarding Recruitment Software as a Service Subscription for an Additional Year for a Revised Total not-to-exceed Amount of $499,022 Over 9 Years. CEQA Status - exempt. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute Amendment No. 3 to Contract No. S17167826 with NEOGOV (Attachment A) to extend onboarding recruitment software as a service subscription in an amount not to exceed for $87,700 for an additional year. This amendment results in a revised total not-to-exceed amount of $499,022. BACKGROUND The City of Palo Alto Human Resources (HR) department currently utilizes NEOGOV, a cloud- based HR software platform, to manage recruitment, onboarding, and performance evaluations. The original Contract No. S17167826 was executed on April 9, 2017, with a sole source justification under Contract No. S14152589, for a total not-to-exceed (NTE) value of $87,964.26 over three years. Subsequent amendments were made to extend the contract and enhance its services: •Amendment No. 1 (June 1, 2020): Extended the term to April 8, 2022, added onboarding and API services, and increased the NTE amount to $161,440. •Amendment No. 2 (April 9, 2022): Extended the contract to June 30, 2025, added new modules, and increased the NTE amount to $411,322. The software's functionalities include job application tracking, onboarding, and reporting with data analytics. These features are critical to ensuring continuity in HR processes and supporting the City’s recruitment and retention objectives. 6 3 4 7 ANALYSIS To maintain uninterrupted HR operations, staff recommends extending the NEOGOV contract for an additional year. This extension will provide sufficient time to complete a comprehensive Request for Proposals (RFP) process to evaluate and transition to a new software solution, if needed. The RFP was posted on February 7, 2025, with the intent to award in May 2025 and present to Council in August 2025. If a new solution is selected, implementation will start in September 2025 and is anticipated to go live in March/April 2026. The current contract expires on June 30, 2025, and the proposed Amendment No. 3 would extend the term to June 30, 2026. The additional year serves as a contingency to ensure a smooth and efficient transition, allowing the department to carefully implement a new system, if selected. By extending the contract, the City avoids potential costs and operational inefficiencies that could arise from prematurely transitioning to a new platform. This approach ensures HR processes remain fully functional and supports the City’s recruitment and onboarding needs during the transition period. The extension aligns with Palo Alto Municipal Code (PAMC) Section 2.30.360(b), which permits exemptions to competitive solicitation when it provides fiscal, operational, or sourcing benefits. In this case, the extension secures the continuity of critical HR functions while enabling a well- planned and cost-effective transition strategy. Funding this purchase order in FY 2025 in the amount of $87,700 is within budgeted levels adopted by the City Council in the Information Technology Department, no additional funding is requested. The Information Technology (IT) Department is funded by an Internal Service Fund (ISF) that allocates costs to other funds across the City to provide technology-related services to other City departments and funds. Approximately 45% of the services provided are for the General Fund with the remaining 55% for other funds such as enterprise, special revenue, and other internal service funds. The services were coordinated with internal stakeholders and the service provider. The approval of these contracts is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment. Attachment A: NEOGOV Contract S17167826, Amendment No. 3 : Darren Numoto, Chief Information Officer Vers.: Aug. 5, 2019 Page 1 of 8 AMENDMENT NO. 3 TO CONTRACT NO. S17167826 BETWEEN THE CITY OF PALO ALTO AND GOVERNMENTJOBS.COM, INC. dba NEOGOV This Amendment No. 3 (this “Amendment”) to Contract No. S17167826 (the “Contract” as defined below) is entered into as of March 17, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and GOVERNMENTJOBS.COM, INC. dba NEOGOV, a California corporation, located at 222 N. Sepulveda Blvd., Suite 2000, El Segundo, CA 90245 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of onboarding recruitment software as service subscription, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term for an additional 12-month, expiration date changing from June 30, 2025 to June 30, 2026; increase compensation by Eighty Seven Thousand Six Hundred Ninety Nine Dollars and Sixty One Cents ($87,699.61), changing total not to exceed compensation from Four Hundred Eleven Thousand Three Hundred Twenty Two Dollars and Seventeen Cents ($411,322.17) to a new total of Four Hundred Ninety Nine Thousand Twenty One Dollars and Seventy Eight Cents ($499,021.78). NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. S17167826 between CONSULTANT and CITY, dated April 9, 2017, as amended by: Amendment No.1, dated June 1, 2020 Amendment No.2, dated April 9, 2022 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 3, “TERM.” of the Contract is hereby amended to read as follows: “The term of this Agreement is from April 9, 2017 to June 30, 2026 inclusive, subject to the provisions of Sections R and W of the General Terms and Conditions.” Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Vers.: Aug. 5, 2019 Page 2 of 8 SECTION 3. Section 5, “COMPENSATION FOR ORIGINAL TERM.” of the Contract is hereby amended to read as follows: “CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: A sum calculated in accordance with the fee schedule set forth at Exhibit C (Compensation), not to exceed a total maximum compensation amount of Four Hundred Ninety Nine Thousand Twenty One Dollars and Seventy Eight Cents ($499,021.78). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY.” SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, ADDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “COMPENSATION”, ADDED, REPLACES PREVIOUS. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Vers.: Aug. 5, 2019 Page 3 of 8 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or Designee GOVERNMENTJOBS.COM, INC. dba NEOGOV Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Attachments:  EXHIBIT B - SCHEDULE OF PERFORMANCES, AMENDMENT NO.3 (AMENDED, REPLACES PREVIOUS)  EXHIBIT C - COMPENSATION, AMENDMENT NO.3, (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Sandy Miranda Chief Customer Officer COO Aaron Coleman Vers.: Aug. 5, 2019 Page 4 of 8 EXHIBIT B SCHEDULE OF PERFORMANCE, AMENDMENT NO.3 (AMENDED, REPLACES PREVIOUS) CONTRACTOR shall provide the Services detailed in Exhibit A (Scope of Services) during the periods specified as follows: Services to Be Provided During the Period Covering: Services to Be Provided During the Period Covering, Amendment No.1: Services to Be Provided During the Period Covering, Amendment No.2: –Perform Implementation and Training –Employee Import Setup –Single Sign On Setup - Position Import Setup Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Vers.: Aug. 5, 2019 Page 5 of 8 Services to Be Provided During the Period Covering, Amendment No.3: Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Vers.: Aug. 5, 2019 Page 6 of 8 EXHIBIT C COMPENSATION, AMENDMENT NO.3 (AMENDED, REPLACES PREVIOUS) CITY shall compensate CONTRACTOR for performance of the Services according to the following fee schedules for the applicable time period, with the maximum amount of compensation not to exceed the amount stated in Sections 5 of this Agreement. Any Services provided for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. The parties understand and agree that the fees payable to the CONTRACTOR under this Agreement are provided in the fee schedules below and that there are no per-user fees under this Agreement. Schedule of Fees for the Period Covering: 04/09/2017 – 04/08/2020 Insight Enterprise $38,755.26 Onboard Software License $42,300.00 API License $1,410.00 Governmentjobs.com Subscription $5,499.00 Schedule of Fees for the Period Covering (Amendment No.1): 4/9/2020 – 4/8/2022 ITEM 4/8/21 4/8/22 Messaging Total $35,902.65 $37,572.79 $73,475.44 (Paid in full) Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Vers.: Aug. 5, 2019 Page 7 of 8 Schedule of Fees for the Period Covering (Amendment No.2): 4/9/2022 – 6/30/2025 ITEM 4/9/2022 - 6/30/2022 7/1/2022 – 6/30/2023 6/30/23 7/1/2023 – 6/30/2024 7/1/2024 – 6/30/2025 Insight $3,617.72 $15,909.24 $16,704.70 $17,539.94 Onboard $3,948.61 $17,364.38 $18,232.60 $19,144.23 Onboard API $119.38 $525.00 $551.25 $578.81 Governmentjobs.com $513.32 $2,257.37 $2,370.24 $2,488.75 Background Check $477.53 $2,100.00 $2,205.00 $2,315.25 Candidate Text $294.58 $1,295.44 $1,360.21 $1,428.22 Messaging Perform Subscription -- -- $10,135.16 $30,573.00 $32,101.65 Employee Import -- -- $1,044.25 $3,150.00 $3,307.50 Subscription Professional Services: • Perform Implementation & Training • Employee Import Setup • Position Import Setup • Single Sign On Setup -- -- $8,000.00 - - - - -- -- $6,300.00 -- $6,300.00 Subscription GRAND TOTAL TOTALS $8,971.14 $39,451.43 $80,450.00 $84,472.50 $249,882.47 Schedule of Fees for the Period Covering (Amendment No.3): 7/1/2025 – 6/30/2026 ITEM Quantity 7/1/2025 – 6/30/2026 Insight Subscription 1,400 $18,943.14 Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1 Vers.: Aug. 5, 2019 Page 8 of 8 Subscription GRAND TOTAL TOTALS $87,699.61 Total not-to-exceed amount of the Agreement: For the Period Covering: 04/09/2017 – 04/08/2020: $ 87,964.26 (Paid in full) For the Period Covering: 04/09/2020 – 04/08/2022: $ 73,475.44 (Paid in full) For the Period Covering: 04/09/2022 – 06/30/2025: $ 249,882.47 (Paid in full) For the Period Covering: 07/01/2025 – 06/30/2026: $ 87,699.61 Total not-to-exceed: $ 499,021.78 Docusign Envelope ID: 943FA19C-FACD-4E5A-B46A-07D590E8F3B1