SR 10-24-2023 5C
City Council
Report
City Council Meeting: October 24, 2023
Agenda Item: 5.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services
Subject: Award Agreement to Procore Technologies, Inc. for Construction
Management Software
Recommended Action
Staff recommends the Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute an agreement with Procore
Technologies, Inc. for Construction Management software to manage the Public
Works Department Capital Improvement Program construction projects. This
recommended award is made as an exception to the competitive bidding process
pursuant to Santa Monica Municipal Code (SMMC) Sections 2.24.250(b) and is
for a total amount not to exceed $300,000 over three years with two, one-year
renewal options with future year funding contingent on council budget approval.
Summary
The City of Santa Monica’s Engineering and Street Services and Architecture Services
Divisions within the Public Works Department manage the construction of an average of
33 projects annually, valued at approximately $35 million in annual construction volume
(excluding substantial unique projects). Both Divisions have been using Procore
Technologies, Inc. (Procore) software since 2017 to manage project-specific data during
the construction phases of Capital Improvement Program (CIP) projects. City staff have
invested considerable time customizing the software to the City’s needs, learning to use
the full capabilities of the program, and training other City staff in its use. Additionally,
Procore offers unique capabilities to meet the requirements, standards, and needs of
the City. As a result, staff recommends awarding a three-year agreement with Procore
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as an exception to competitive bidding per Santa Monica Municipal Code (SMMC)
Sections 2.24.250(b) with two, one-year renewal options for an amount not to exceed
$300,000 over five years for construction project management software.
Discussion
The City of Santa Monica’s Public Works Department builds and maintains the
infrastructure that serves the community. The Engineering and Street Services and
Architecture Services Divisions within the Public Works Department have subscribed to
Procore for the past six years.
A Request for Quotes (RFQ) was issued in July 2017. Six vendors responded and
Procore was selected as the best bidder. Procore was the second lowest bidder and
offered an out-of-the-box solution that was simultaneously customizable to the City’s
needs. This met the implementation goals and requirements of the staff responsible for
managing the City’s construction projects. The award of the RFQ resulted in a three-
year contract, ending in December 2020. Under the renewal terms of the contract, staff
had the option to extend the contract for an additional one-year period, which resulted in
a one-year term extension to December 2021. In 2021, an Exception to Competitive
Bidding was approved under the City Manager’s authority to continue service through
December 2023.
Use of the software allows Engineering and Street Services and Architecture Services
staff to standardize, maintain, and administer CIP projects through proprietary
subscription-based construction project management software from Procore, the only
provider of this software.
Renewing the Procore license is essential to maintaining and supporting the
construction of the City’s annual CIP projects on an on-going basis. Procore offers
proprietary construction management software that is uniquely tailored to the City’s
needs and use. Procore’s software platform is specifically targeted for construction,
which has resulted in successful management of project data by City staff. The platform
is designed to streamline and connect to a wide range of other software systems used
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in the construction management process. Introducing new software at this time would
be costly due to the time that would be required to retrain staff, import historic project
data, customize project information, and establish new standards for City staff usage.
Prices obtained from Procore for the next three years are competitive with the original
proposal received in 2017.
Vendor Selection
Exception to Competitive Bidding
Procore offers proprietary construction management software that is uniquely tailored to
every agency’s needs and use. The platform is designed to streamline and connect to a
wide range of integrations and compliment other software systems such as Bluebeam,
DocuSign, MS Office, SharePoint, and Primavera. The current system meets the needs
of the staff responsible for construction management. Furthermore, City staff have
invested years of time to learn and integrate the software into daily use. Soliciting new
bids for the software could disrupt the City’s operations as the implementation of new
software or services would divert staff resources away from other priorities and increase
the risk of errors and disruptions. Staff recommends that Procore Technologies, Inc. be
retained to provide proprietary subscription-based construction project management
software as an exception to competitive bidding per SMMC Sections 2.24.250(b).
b. Good or service is only available from one license holder, including, proprietary
goods.
Environmental Review
The award agreement is categorically exempt from CEQA pursuant to Section
15061(b)(3) of the CEQA Guidelines. The agreement is covered by the common sense
exemption which states that CEQA does not apply, “where it can be seen with certainty
that there is no possibility that the activity in question may have a significant effect on
the environment.” The agreement will continue to provide the City with project
management software services for administrative functions. Therefore, it can be seen
with certainty that the contract would not result in adverse physical impacts on the
environment, and as such, is categorically exempt from CEQA.
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Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund and Water
Fund to award a contract with Procore Technologies, Inc. for software services for
construction management administration of capital projects.
Contract Request
FY 2023-24
Budget
Request Amount
Future Years
Amount CIP Account # Total Contract
Amount
$50,000 $200,000 C0108040.689000 $250,000
$10,000 $40,000 C5004850.689000 $50,000
$60,000 $240,000 Total $300,000
Future year funding is contingent on Council budget approval.
Prepared By: Sebastian Felbeck, Senior Construction Manager
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative Form - Procore Technologies, Inc.
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CITY OF SANTA MONICA OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known
as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the
Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection.
It prohibits a public official from receiving, and a person or entity from conferring,
specified personal benefits or campaign advantages from a person or entity after
the official votes, or otherwise takes official action, to award a “public benefit” to that
person or entity. The prohibition applies within and outside of the geographical
boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of
Santa Monica shall provide the names of trustees, directors, partners, and officers,
and names of persons with more than a 10% equity, participation or revenue
interest. An exception exists for persons serving in those capacities as volunteers,
without compensation, for organizations exempt from income taxes under Section
501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not
apply if the organization is a political committee or controls political committees.
Examples of a “public benefit” include public contracts to provide goods or services
worth more than $25,000 or a land use approval worth more than $25,000 over a 12-
month period.
In order to facilitate compliance with the requirements of the Oaks Initiative,
the City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public benefit”
is sought by an entity, rather than an individual person, the information includes the
name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has
(e) more than a ten percent interest in the entity. Therefore, if you are seeking a
“public benefit” covered by the Oaks Initiative, you must supply that information on
the Oaks Initiative Disclosure Form. This information must be updated and supplied
every 12 months.
5.C.a
Packet Pg. 51 Attachment: Oaks Initiative Form - Procore Technologies, Inc. (5901 : Sole Source Procore Construction Management Software)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the
City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public
benefit” is sought by an entity, rather than an individual person, the information
includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d)
officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a
12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more
in any 12-month period;
5. Land use variance, special use permit, or other exception to an established
land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any
12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any
12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
5.C.a
Packet Pg. 52 Attachment: Oaks Initiative Form - Procore Technologies, Inc. (5901 : Sole Source Procore Construction Management Software)