Summary Sheet- RFCA SUMMARY
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CITY OF TEMPE Meeting Date: 5/14/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 7B4 ACTION: Approve a five-year limited source contract renewal with Accela, Inc. for software as a service subscription and maintenance for business license registration and short-term residential rental registration. FISCAL IMPACT: Total cost of this five-year contract will not exceed $444,093. Sufficient funds have been appropriated in the General Fund, Cost Center 1971 (IT Administration) for the anticipated expenditures during the current fiscal year and future fiscal years contingent upon Council approval of the City’s annual budget. RECOMMENDATION: Approve the contract renewal. BACKGROUND INFORMATION: (IT21-108-01) On January 14, 2021, the City Council awarded a five-year limited source contract with renewal options to Accela, Inc., for software licensing and support for business license registration and short-term residential rental registration. This software enables management of business licenses and short-term residential rentals, along with a web portal for customer access. The limited source determination is justified due to the widely adopted utilization of Accela products throughout the City. This allows the City to leverage existing interfaces for employee user information and workflows, payment processing, document storage, and internal technical support. Due to the proprietary nature of the software, it has been determined that only one source exists and that Accela, Inc. is the only company that can provide software that meets the City’s requirements, leverages existing interfaces and works within the current system architecture. Contractor Performance Staff rated the performance of the Contractor as follows: Accela, Inc. Criteria Meets Contract Requirements Does Not Meet Requirements Contract personnel are responsive X The quality of products or services delivered X Timeliness of performance X Follow-up in resolving complaints or problems X Promptness and accuracy of pricing on invoices X Renewal Pricing 2 The City negotiated firm-fixed pricing for the next five years, with a 4% year-over-year increase. The table below shows the annual software licensing cost for each year of the agreement. Annual Software Licensing Pricing Year 1 Accela Licensing Agreement $75,848.00 Year 2 Accela Licensing Agreement $78,882.00 Year 3 Accela Licensing Agreement $82,037.00 Year 4 Accela Licensing Agreement $85,319.00 Year 5 Accela Licensing Agreement $88,731.00 Sales Tax $33,276.00 Total Five-Year Pricing $444,093.00 ATTACHMENTS: N/A STAFF CONTACT(S): Jared Morris, Information Technology Director, (480) 350-8090 Department Director: Laura Calder, Financial Services Director Legal review by: Dave Park, Senior Assistant City Attorney Prepared by: Alicia Ruiz, Procurement Officer