TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Kimberly Ramirez, Deputy City Clerk
SUBJECT:
title
Renewal Approval with Carahsoft (DocuSign) - Digital Signature Software
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RECOMMENDATION
recommendation
Authorize the City Manager to approve the current renewal, in a form acceptable to the City Attorney, with Carahsoft - DocuSign for digital signature software, for a total not to exceed the amount of $27,450, and authorize the City Manager to issue a change order up to 10%, if needed;
Amend the Fiscal Year 2024/25 Operating Budget in the General Ledger Account 1102400-60920 by $4,550; and
Ratify a prior renewal with Carahsoft that exceeded the City Manager's contract authority by $4,377.60.
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PRIOR ACTION/VOTE
On August 6, 2019, the City Council introduced Ordinance No. 550-19, adding Chapter 2.34 of the Murrieta Municipal Code regarding electronic signatures and records (Vote: 5-0).
On August 20, 2019, the City Council conducted the second reading and adopted Ordinance
No. 550-19 (Vote: 4-0-1).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
DocuSign is a cloud-based software that allows users to create, send, sign, and track documents electronically. It enables users to process and execute documents digitally within a secure digital environment by allowing users to create, send, sign, and track documents in envelopes from their computer, tablet, or mobile device. The software operates by placing documents in a digital envelope, which can contain up to 130 documents.
The prior City Clerk brought forward Ordinance No. 550-19 to amend the Murrieta Municipal Code to include electronic signatures as a valid and enforceable method. Originally, electronic signatures were used solely for City Council-approved documents and agreements. Since then, they are now utilized by all City departments to enhance inter- and intra-departmental processes.
As part of the City Clerk Department’s goal to increase organizational accessibility and transparency through Records Management, DocuSign facilitates the digitalization and management of both Council and non-Council documents.
DocuSign Software
The DocuSign software is purchased through a third-party administrator, Carahsoft. Carahsoft issues invoices and acts as the first point of contact for sales, issues, and requests. Carahsoft has two forms of charge models - charging per user with limited envelopes and charging per envelope with unlimited users.
Before the current City Clerk's tenure in 2021, the City of Murrieta (City) utilized DocuSign. The City Clerk conducted an internal assessment of digital signature software and identified some deficiencies, which included the lack of an administrative policy and staff training. From 2019 - 2020, the City was charged a per-user fee with limited envelopes. After reviewing, the City Clerk transitioned the account to a per-envelope with unlimited user model due to increased requests for accounts and the amount of use by departments. The increased number of envelopes (see Figure 1) is due to additional internal processes and documents not utilizing DocuSign, such as personnel action forms, personnel security and equipment forms, credit card statements, and internal memos.
Envelope Usage Trends (Figure 1)
Due to the increasing usage trend, the City exceeded the number of envelopes purchased twice in 2021 and 2022 (see Table 1 below).
Envelope Renewal Purchases (Table 1)
|
Year |
Cost |
Envelopes Purchased |
Notes |
|
2019 |
$8,698.30 |
N/A |
10 users subscription; implementation consulting |
|
2020 |
$8,686.89 |
N/A |
Annual renewal; 10 users subscription |
|
2021 |
$9,173.47 |
1,000 |
Annual renewal; Transition to per-envelope purchase |
|
2021 |
$3,207.94 |
350 |
Additional envelopes to cover the overage |
|
2022 |
$19,233 |
2,000 |
Annual renewal |
|
2022 |
$4,758 |
500 |
Additional envelopes to cover the overage |
|
2023 |
$25,620 |
2,500 |
Annual renewal: The total agreement to date has exceeded the City Manager’s signing authority by approximately $4,377.60 |
|
Total: $79,377.60 |
|
|
2024 |
$27,450 |
2,500 |
Annual proposed renewal |
To ensure there is no lapse in software and processing, staff recommends approving the purchase of 2,500 envelopes for the 2024/25 fiscal year.
Next Steps
After approving the renewal of the DocuSign envelopes, the City Clerk Department will continue to improve organizational and records management by establishing a digital signature policy and DocuSign usage training to address and prevent overages.
FISCAL IMPACT
The original software subscription costs, including renewals through FY 2023/24, totaled $79,377.60. In accordance with the City’s purchasing policy and the City’s Municipal Code, the City Manager is authorized to execute agreements and make purchases up to $75,000. Only the City Council may award the purchase of services in excess of $75,000; therefore, City staff is requesting City Council ratification of prior agreement renewals, including the $4,377.60 cost in excess of $75,000.
The agreement is partially funded from General Ledger Account 1102400-60480 for FY 2024/25 at $22,900. Staff requests an additional appropriation of $4,550 in the Fiscal Year 2024/25 Operating Budget in General Ledger Account 1102400-60840 using Unassigned Fund Balance.
ATTACHMENTS
None.