Summary Sheet- RFCA SUMMARY

City of Tempe — Regular City Council Meeting (2026-05-14)

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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