TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Miguel Guardado, Information Technology Director
Liza Tamura, City Clerk
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Five-Year Agreement with MCCi for Document Management System and Related Services in the Amount of $276,182, Inclusive of a Potential Contingency (Budgeted) (Information Technology Director Guardado).
A) WAIVE FORMAL BIDDING DUE TO COOPERATIVE PURCHASING
B) ADOPT RESOLUTION NO. 25-0100
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bid requirements pursuant to Manhattan Beach Code Section 2.36.150 (cooperative purchasing);
b) Adopt Resolution No. 25-0100, approving a five-year agreement with MCCi for Document Management System and related services, for an amount not-to-exceed $251,075;
c) Authorize the City Manager to approve and execute the five-year agreement with MCCi; and
d) Authorize the City Manager or his/her designee to approve additional subscriptions and/or related services up to $25,107 (10%) of the initial not-to-exceed amount, if necessary.
FISCAL IMPLICATIONS:
The overall project total of $276,182 includes the MCCi agreement cost of $251,075 and an additional 10% contingency of $25,107 to be utilized if needed. Funds in the amount of $98,236 (Laserfiche subscription $22,591; MCCi support services $9,810, and one-time implementation services $65,835) are currently included within the Information Technology Department Fiscal Year 2026 budget to cover the first year of the Document Management System and related services agreement with MCCi. Future years will be budgeted accordingly.
BACKGROUND:
On June 16, 2015, the City Council approved the purchase of the OnBase Document Management System (DMS), which replaced the obsolete LibertyNet DMS. The OnBase system is currently on premises and is utilized by the City Clerk (City Council meetings-related records, agreements, ordinances, resolutions), Community Development (building and planning historical documents), Finance (budget records, Annual Comprehensive Financial Reports (ACFRs), bids archive), and Human Resources (employee data).
There are various industry standards ranging from five to 15 years when looking for replacements or upgrades of software systems. However, software changes often happen between the seventh and 10th years after the original system implementation, considering shifts in the organization’s goals, requirements, or utilized software stack. In today’s rapid technological developments, software systems’ replacements are even more frequent, allowing agencies to take advantage of platforms that better suit their business objectives and processes. Therefore, after considering the present organization's standing and future initiatives in the document management space, staff is proposing the replacement of the current system with the Laserfiche Document Management System.
DISCUSSION:
After carefully reviewing the features and capabilities of OnBase and Laserfiche Document Management Systems (Laserfiche), staff found that the latter better addressed the City's needs. The proposed City-hosted Laserfiche system offers enhanced features and functionality by providing more robust search capabilities, improved user experience with a more intuitive and user-friendly interface, more streamlined document management, more and easier integration options, cloud readiness, and stronger support for workflows and automation.
Like other products, Laserfiche is primarily distributed through authorized solution providers. MCCi has been one of the largest Laserfiche resellers since 2008, with more than 2,100 clients, 400 of which are statewide and include 160 cities and 20 counties. Staff checked the solution and provider references with other local government organizations, such as the City of Newport Beach, the City of Costa Mesa, and the City of Fullerton.
Additionally, MCCi support services better align with the City’s constantly evolving needs. In contrast, the reseller’s service delivery model for the present system does not quite line up with the City’s developing requirements, including being proactive about upcoming software changes and/or promoting software features or additions. MCCi has been providing Laserfiche-related professional services nationwide and has a proven track record not only for implementations but also for augmenting professional services, securing Laserfiche's successful adoption across organizations.
The proposed agreement includes a phased migration from OnBase to Laserfiche to ensure a gradual and smooth transition to the new solution. This approach also secures the necessary resources for the project implementation. Additionally, the MCCi services included in the contract provide application break/fix support (tier one), version download assistance, public portal configuration, continued educational resources, including user training, and other specialized system services.
The recommended procurement utilizes the City’s cooperative purchasing or “piggybacking” policy. This policy allows for the extension of pricing, terms, and conditions of one agency’s contract to other governmental agencies. MCCi provided the pricing based on the OMNIA - NCPA 01-162 document management and related services contract facilitated by OMNIA Partners (OMNIA) through the National Cooperative Purchasing Alliance (NCPA). OMNIA is a cooperative purchasing organization that provides access to competitively solicited and publicly awarded contracts for a wide range of goods and services, including technology and technology-related services. OMNIA’s cooperative purchasing contracts leverage collective purchasing power, leading to cost savings and streamlined procurement processes, and are specifically designed for public sector entities such as State and local government, educational organizations, and non-profits.
The overall project cost includes the following:
• Laserfiche five-year subscription $124,830: $22,591 for year one with an estimated five percent yearly uplift for the annual subscriptions for year two through year five;
o Cost is an estimate; Laserfiche may or may not apply an annual five percent increase for any year (year two through year five) during the lifetime of the agreement;
• MCCi’s five-year support services $60,410: $9,810 for year one and $12,650 annually for years two to five;
• MCCi’s one-time implementation services $65,835;
Estimated Five-Year Contract Cost: $251,075
• Contingency $25,107 (10%) - to be utilized only if needed for unforeseen project adjustments related to additional licensing and/or services;
Total Project Cost (not to exceed): $276,182
In conclusion, staff recommends that the City Council: a) waive formal bid requirements pursuant to Manhattan Beach Code Section 2.36.150 (cooperative purchasing); b) adopt Resolution No. 25-0100, approving a five-year agreement with MCCi for Document Management System and related services for $251,075; c) authorize the City Manager to approve and execute the five-year agreement with MCCi; and d) authorize the City Manager or his/her designee to approve additional subscriptions and/or related services up to $25,107 (10%) if necessary. If approved, the project implementation will start three weeks after contract execution.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENT:
1. Resolution No. 25-0100