Report Prepared by: Aarin Garrison, Information Technology Manager
Title
SUBJECT: Authorize the City Manager to Execute a One-Year Agreement with Smarsh Inc., with the Option to Renew for Up to Two (2) Additional One-Year Terms, for a Total Potential Term of Three (3) Years and a Total not-to-Exceed Amount of $166,119 for Text Message and Social Media Archiving
REPORT IN BRIEF
Approve award of RFP to Smarsh Inc. for text message and social media archiving services and authorize execution of a one (1) year agreement, with the option to renew for up to two (2) additional one-year renewals, for a total potential term of three (3) years and a total not-to-exceed amount of $166,119.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the RFP to Smarsh Inc., for text message and social media archiving; and,
B. Authorizing the City Manager to execute an Agreement with Smarsh Inc., with the option to renew for up to two (2) additional one-year terms for a total term not to exceed three (3) years, in an amount not to exceed $151,017, with additional expenditure authority of up to $15,102 (10%) for contingency, for a total authorized amount not to exceed $166,119, subject to approval as to form by the City Attorney; and,
C. Authorizing the Finance Officer to make any necessary transfer and appropriation for funds to be used explicitly for the expenditures of additional quantities, subscriptions, and services during the initial one-year term and potential two (2) additional year terms.
Body
ALTERNATIVES
1. Adopt the motion as recommended; or,
2. Refer to staff for further evaluation: or,
3. Deny.
AUTHORITY
Charter of the City of Merced, Section 200 and City Municipal Code Section 3.04.180.
CITY COUNCIL PRIORITIES
As provided for in the 2025-2026 Adopted Budget.
DISCUSSION
Under the California Public Records Act (CPRA), electronic communications, including text messages, and social media messages, may constitute public records if they relate to the conduct of City business, regardless of the device or account used. When such communications meet the definition of a public record, they are subject to disclosure unless a specific exemption applies. The City is responsible for implementing reasonable policies and procedures to identify, retain, and manage these records in compliance with applicable law.
In support of this obligation, the City currently utilizes Smarsh Inc. for text message and social media archiving services. The existing agreement expires April 18, 2026.
On December 19, 2025, the City issued a Request for Proposal (RFP) for text message and social media archiving services for a three (3) year term, with two (2) optional one (1) year renewal terms. Three vendors submitted proposals.
Cell Trust is unable to provide the full scope of services required under the RFP specifications and was therefore deemed non-responsive.
The remaining two vendors, Smarsh Inc. and Global Relay, submitted pricing based on a one-year term but met all other requirements outlined in the RFP.
|
Vendor |
One-Time Fees |
Service Fees (Year 1) |
Total |
|
Smarsh Inc. |
$6,522 |
$45,835 |
$52,357 |
|
Global Relay |
$4,950 |
$46,560 |
$51,510 |
|
Cell Trust (non-responsive) |
$0.00 |
$29,148 |
$29,148 |
Three-Year Cost Projection
Although both Smarsh Inc. and Global Relay submitted pricing structured on an annual basis, each vendor verbally confirmed its ability and willingness to enter into a three-year contractual arrangement through successive annual agreements or renewal options consistent with the RFP’s original intent.
Consistent with the RFP’s intended three-year structure, the table below reflects the anticipated total costs over a three-year period, assuming a 5% annual increase applied to the recurring service fees.
|
Vendor |
Year 1 Total |
Year 2 Anticipated |
Year 3 Anticipated |
Est. 3-Year Total |
|
Smarsh Inc. |
$52,357 |
$48,127 |
$50,533 |
$151,017 |
|
Global Relay |
$51,510 |
$48,888 |
$51,332 |
$151,730 |
Evaluation and Best Value Determination
Based upon the RFP evaluation and ranking, both Smarsh Inc. and Global Relay were determined to be fully capable of providing the required services in accordance with the City’s specifications. Each vendor demonstrated the experience, technical capacity, and qualifications necessary to meet the City’s operational and compliance needs.
While Global Relay’s pricing is slightly lower in Year 1, when evaluated over the anticipated three-year term consistent with the RFP’s intended structure, Smarsh Inc. reflects the lower total contract cost among the responsive proposers. Both firms are capable of delivering the required services, however, Smarsh Inc.’s proposal satisfies the City’s service requirements at the most competitive overall price.
Although pricing was submitted on a one-year basis, staff are requesting approval to enter into a one (1) year agreement with Smarsh Inc., with the option to renew for up to two (2) additional one-year terms, for a total potential term of three (3) years. This structure is consistent with the term originally requested in the RFP and provides the City with operational continuity while maintaining flexibility to evaluate vendor performance and future service needs prior to exercising any renewal options.
Contract Contingency Authority
Costs may increase if the City procures additional cellular devices requiring text message archiving or establishes additional social media accounts or platforms subject to California Public Records Act.
Staff recommends including a ten percent (10%) contingency of $15,102 for a total not-to-exceed authority contract amount of $166,119 to provide flexibility for potential increases in service quantities during the contract term and renewals.
The requested contingency will function as a true-up mechanism to accommodate such increases, allowing staff to administratively adjust subscription quantities within the Council-approved not-to-exceed authority, subject to available appropriations, without returning to Council for routine usage adjustments.
IMPACT ON CITY RESOURCES
Funding for text message and social media archiving services is available within Fund 70084710. Future years costs to be included in the City’s annual budget process.
ATTACHMENTS
1. Text Message and Social Media Archiving Services RFP #12192025
2. SMARSH Amendment & Services Agreement
3. RFP Proposal by SMARSH Inc.
4. Smarsh Quote