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Home My WebLink AboutStaff Report 2607-6560CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, September 28, 2026 Council Chambers & Hybrid 5:30 PM Agenda Item 10.Approval of Contract Amendment Number 2 to Contract C21181846 with CAD Masters, Inc. in the Amount of $420,000 for a total not to exceed $2,370,000 for Continued Support of Utility Engineering Systems and Applications through August 2, 2029 (a total of 8 years); CEQA Status: Not a Project Under CEQA Guidelines Section 15378 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: September 28, 2026 Report #:2607-6560 TITLE Approval of Contract Amendment Number 2 to Contract C21181846 with CAD Masters, Inc. in the Amount of $420,000 for a total not to exceed $2,370,000 for Continued Support of Utility Engineering Systems and Applications through August 2, 2029 (a total of 8 years); CEQA Status: Not a Project Under CEQA Guidelines Section 15378 RECOMMENDATION Staff recommends that the City Council authorize the City Manager to execute Amendment No. 2 to Contract No. C21181846 with CAD Masters, Inc., extending the term of the contract through August 2, 2029, and increasing the contract authority by an additional $420,000, for a revised not-to-exceed amount of $2,370,000. EXECUTIVE SUMMARY The Utilities Department requests approval of Amendment No. 2 to extend the existing professional services agreement with CAD Masters, Inc. through August 2, 2029, under a reduced scope of work. CAD Masters developed several of the City's custom utility applications and engineering workflows, including Service Order Generation (SOGEN), DWG Generation (DWGGEN), and Electrical Equipment Maintenance (EEM), and possesses extensive institutional knowledge of the City's utility engineering systems, software architecture, and business processes. Transitioning these services to another consultant would require significant time, cost, and operational risk. Due to the ongoing transition from Autodesk AutoCAD Map 3D Enterprise (AME) to Esri ArcGIS Pro, the scope of services has significantly decreased. However, continued support remains critical for AutoCAD Civil 3D design work and for maintaining the SOGEN system, which is essential for daily utility operations and development services. Extending the existing relationship avoids operational risk, ensures continuity during a major system transition, and reflects prudent fiscal management by reducing the scope of work and annual contract authority from $390,000 to $140,000. BACKGROUND 1 The 2021 agreement was originally scheduled to expire on June 30, 2026. Amendment No. 1 subsequently extended the agreement by six months, through December 31, 2026, without increasing the contract amount. The annual authorization has varied under the successive agreements: $300,000 annually under the 2011 extension, $500,000 annually under the 2016 agreement, and $390,000 annually under the current 2021 agreement. Actual expenditures under the current agreement have averaged approximately $120,000 annually over the past five years, with expenditures reaching approximately $148,000 in one year, reflecting the City’s use of these services on an as-needed basis. The City’s technology environment has evolved significantly, particularly with the migration to Esri ArcGIS Pro that is currently underway. As a result, Utilities reevaluated its long-term consulting needs and determined that a significantly reduced scope of services is sufficient to support ongoing operations during the transition. Based on anticipated migration and workflow-replacement activities, Utilities determined that an annual authorization of $140,000 over the proposed extension period would provide sufficient capacity while remaining substantially below the $390,000 annual authorization under the current agreement. ANALYSIS Technology Transition and Reduced Scope The City is currently transitioning from Autodesk AutoCAD Map 3D Enterprise (AME) to Esri ArcGIS Pro as the primary platform for utility mapping and asset management. The migration is expected to be substantially completed by the end of February 2027. Following the migration, staff will begin using ArcGIS Pro for day-to-day operations, while Utilities and IT continue supporting user adoption, workflow refinement, and post-implementation support. 1 City Council, May 17, 2021, Agenda Item No. 5, Staff Report No. 12082: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2258&dbid=0&repo=PaloAlto As a result, a substantial portion of CAD Masters’ previous scope, particularly AME-related support, is no longer required. Future service needs are expected to be significantly reduced. Ongoing Critical Support Needs 1. AutoCAD Civil 3D Design Support Utilities Engineering continues to use AutoCAD Civil 3D for Capital Improvement Program (CIP) projects, including pipeline replacement and rehabilitation. CAD Masters’ familiarity with City standards enables efficient support without additional onboarding or training. 2. Service Order Generation (SOGEN) System CAD Masters developed the custom SOGEN system to support the City's utility operations. SOGEN is a tool used to generate and track service orders, support maintenance and repairs, and coordinate work between Engineering and Operations. SOGEN also supports the WGW Development Services program by tracking utility-related work tied to private development permits and coordinating field operations. Disruption to SOGEN would impact operations, development coordination, customer service, and revenue. Rationale for Amendment of Current Contract Staff recommends amending the current contract rather than issuing a new RFP because the remaining services involve support of custom utility applications, specialized engineering workflows, and systems that are to be reviewed for standardization and scalability with current day best practices during this extension period. Conducting a competitive procurement at this time would provide limited value while increasing operational risk while system transition for GIS is ongoing and review of long term replacement of legacy systems is active. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Vers.: Aug. 5, 2019 Page 1 of 10 AMENDMENT NO. 2 TO CONTRACT NO. C21181846 BETWEEN THE CITY OF PALO ALTO AND CAD MASTERS, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C21181846 (the “Contract” as defined below) is entered into as of August 3, 2026 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CAD MASTERS, INC., a California corporation, located at 201 North Civic Drive, Suite 182, Walnut Creek, CA 94596 (“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 development, support, and maintenance of the City’s Enterprise Geographical Information System (GIS) asset management database (the “Project”) and desires to engage a consultant to provide these services in connection with the Project, as detailed therein. B. The Parties now wish to amend the Contract to update the software products and services provided under the Contract to reflect current practices, increase compensation by Four Hundred Twenty Thousand Dollars ($420,000), from One Million Nine Hundred Fifty Thousand Dollars ($1,950,000) to a new total not-to-exceed amount of Two Million Three Hundred Seventy Thousand Dollars ($2,370,000), increase the current rates as set forth in Exhibit C-1, and extend the term through August 2, 2029. 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. C21181846 between CONSULTANT and CITY, dated July 1, 2021, as amended by: Amendment No. 1, dated June 1, 2026 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 2 “TERM” of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through August 2, 2029, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 2 of 10 “The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Million Three Hundred Seventy Thousand Dollars ($2,370,000). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the 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 “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS d. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, 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: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 3 of 10 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 CAD MASTERS, INC. By:______________________________ Name:___________________________ Title:____________________________ Attachments: Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Drew Burgasser Vice-President Vers.: Aug. 5, 2019 Page 4 of 10 EXHIBIT A SCOPE OF SERVICESAMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) BACKGROUND INFORMATION (DATA ENGINES AND EXISTING APPLICATIONS): Database Engines: • Oracle • Microsoft SQL Server • Microsoft Access (for maintenance of legacy applications) Primary Software Applications: • Autodesk AutoCAD Civil 3D • Autodesk Utility Design (AUD) • ArcGIS / ArcGIS Pro Custom Applications: • Electric data model (Oracle) • WGW Service Order Generation (SOGEN) • Electric Equipment and Maintenance data model (Oracle) front-end application (EEM) Electric Autodesk Utility Design (AUD) • Document Management System (DMS) • Drawing Generation (DWGGEN) for creating AutoCAD and AUD entities from GIS Map Locator (custom Google Maps interface on top of AutoCAD) • FME workspaces for import from and export to SAP, ESRI SHP, DWG, and Excel • Transformer Purchasing DB data export SAP data import and export SCOPE OF WORK (including but not limited to the following items): 1. User Support and Maintenance of Existing Applications and Workflows 1.1 SQL Server Database Administrator (DBA) • Install and configure Oracle software • Configure and monitor data backups • Troubleshoot performance issues 1.2 Service Order Generation • Write, configure, and monitor Service Order Generation (SOGEN) software • Provide programming and support for mobile SOGEN Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 5 of 10 1.3 Automated Utility Design • Install and configure software and upgrades, provide training, and troubleshoot problems; assist IT when necessary • Provide customization services for import/export to SAP and report generation • Write, configure, and monitor software to update material catalog prices from SAP • Write, configure, and monitor software to output work order data to Excel 1.4 Electric Equipment Management (EEM) Database • Write, configure, and monitor database (Oracle) and front-end application (EEM) for electric equipment maintenance 2. Data Synchronization, Import, and Export • Configure and support FME workspaces for export to ESRI SHP, AutoCAD DWG, Excel, and ArcGIS maps • Write, configure, and monitor software to import SAP utility meter data (installation numbers) • Configure and support FME workspaces to import SAP consumption data (via a middleware Excel file) for any desired utility 3. GIS and Engineering Drawing Support • Provide technical support for ArcGIS and ArcGIS Pro for WGW Engineering and Operations users • Assist with creation and maintenance of WGW utility system maps in ArcGIS Pro for engineering analysis, operations planning, and paper map production • Configure and assist with ArcGIS queries, map layers, and attribute searches to support user workflows • Assist with creation and maintenance of AutoCAD Civil 3D drawings to support WGW Engineering design and construction drawing development • Provide support for data exchange between GIS, AutoCAD Civil 3D, and other engineering systems used by WGW Engineering Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 6 of 10 EXHIBIT B SCHEDULE OF PERFORMANCE AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Completion Number of Days/Weeks (as specified below) from NTP Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 7 of 10 EXHIBIT C COMPENSATION AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. TASK DESCRIPTIONS Estimated Annual Budget: 3 Year Contract Total: Install and configure Oracle software; configure and monitor backups; and troubleshoot database performance issues. Task 1.2 – Service Order Generation (SOGEN) Write, configure, and monitor SOGEN software; provide programming and support for mobile SOGEN. Task 1.3 – Automated Utility Design Support (SAP / Reporting / Data Automation) Install and configure software and upgrades; provide training and troubleshooting; assist IT as needed; develop customizations for SAP integration including material catalog price updates and work order data export to Excel. Task 1.4 – Electric Equipment Management (EEM) Database Write, configure, and monitor Oracle database and front-end application for electric equipment maintenance. Task 1.5 – ArcGIS and Engineering Application Support and maintenance; support queries, layers, and attribute workflows; and support AutoCAD Civil 3D drawings and data exchange with GIS and other systems. Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 8 of 10 Category 2 – Data Synchronization, Import and Export $30,000 $90,000 Task 2.1 – FME Data Export Workflows Configure and support FME workspaces for exporting data to ESRI SHP, AutoCAD DWG, Excel, and ArcGIS formats. Task 2.2 – SAP Utility Meter Data Import Write, configure, and monitor software to import SAP utility meter data (installation numbers). Task 2.3 – SAP Consumption Data Import Configure and support FME workspaces to import SAP consumption data via middleware (Excel or similar formats) for any utility. Category 3 – Application Development, Data Integration, and GIS Enhancements $40,000 $120,000 Develop new applications, scripts, and workflows to support utility engineering, operations, and data management needs. Task 3.2 – Data Integration and Expansion Incorporate new datasets and expand existing data structures within GIS and related systems to support engineering analysis, operations planning, and reporting. Task 3.3 – GIS Data Access and Usability Enhancements Enhance access to GIS data through improvements to map layers, queries, Total: $140,000 $420,000 REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 9 of 10 A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49 Vers.: Aug. 5, 2019 Page 10 of 10 EXHIBIT C-1 SCHEDULE OF RATES AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT’s schedule of rates is as follows: Junior Engineer: $ 175 per hour Project Engineer: $ 210 per hour Senior Engineer: $ 240 per hour Docusign Envelope ID: 74CF9C41-1ED4-8A42-8238-AB605FE11D49