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CC - CONSENT ITEM: Approval of an Agreement with Madison AI for Artificial Intelligence Solution Package including Administration + Governance, Community Development, Procurement & Contracts, and Public Records Request - Management & Fulfillment for a Not-to-Exceed Amount of $65,000.
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Meeting Date: March 9, 2026
Contact Person/Dept.: J.R. Wright/Information Technology
Phone Number: (310) 253-5959
Fiscal Impact: Yes [] No [X] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (03/04/2026)
Department Approval: J.R. Wright, Chief Information Officer (02/13/2026) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve an agreement between City and Madison AI for Artificial Intelligence solution package including Administration + Governance, Community Development, Procurement & Contracts, and Public Records Request - Management & Fulfillment for a not-to-exceed amount of $65,000.
BACKGROUND
Municipal governments are operating in an increasingly complex environment marked by rising service demands, constrained financial resources, and heightened expectations for transparency, responsiveness, and efficiency. At the same time, the volume of data generated by City operations ranging from public records and service requests to financial, planning, and infrastructure data, has grown substantially. Existing tools and workflows are increasingly becoming insufficient to fully leverage this information in a timely and strategic manner.
In response to these challenges, City staff have evaluated the potential role of Artificial Intelligence (AI) technologies as a means to improve operational efficiency, enhance decision-making, and better serve the public. AI systems are now more widely used across the public sector to automate routine tasks, analyze large datasets, support predictive planning, and improve communication with residents. When appropriately governed and thoughtfully planned, these tools can augment staff capacity rather than replace it, allowing employees to focus on higher-value and mission-critical work.
The successful implementation of AI tools requires several foundational elements. These include clearly defined governance and oversight structures, robust data security and privacy controls, integration with existing City systems, and staff training to ensure responsible and effective use. Equally important is the selection of an AI platform that is scalable, cost-effective, and designed to operate within the regulatory and transparency requirements unique to municipal government.
DISCUSSION
Staff conducted a broad review of available AI solutions, including enterprise AI platforms, specialized solutions for grant writing and citizen engagement, and the option of developing tools internally. This review considered functional capabilities, implementation complexity, ongoing maintenance requirements, data security and compliance features, vendor support, return on investment, and total cost of ownership over time.
As part of this review, staff specifically evaluated stand-alone AI tools designed exclusively for grant identification and grant writing. While these products demonstrated value in narrow use cases, they were determined to be limited in scope, costly relative to overall benefit, and not easily integrated with broader City objectives. Staff determined that grant support functions are already effectively addressed through current processes and staffing levels and although grant writing AI tools could marginally increase efficiency the return on initial investment would not warrant the cost and staff time necessary to implement these tools. Additionally, the current political climate has impacted potential federal grant awards to Culver City. It is recommended to revisit this initiative after federal funding volatility has leveled.
Based on the review of all potential enterprise AI solutions, Madison AI emerged as the most cost-effective and operationally suitable solution for Culver City’s use. Madison AI provides a comprehensive suite of tools that can be applied across multiple departments, including data analysis, natural language processing, workflow automation, and improved citizen engagement. The complete platform was designed for the unique public sector requirements, offering configurable governance controls, strong data security features, and support for compliance with public records and privacy laws.
The City will be licensing three existing modules from Madison AI. Additionally, the City is partnering with Madison AI to develop and fully deploy a new public records request module. Madison AI has indicated this new module will be a zero cost to the City during the development of this product.
Pursuant to Culver City Municipal Code Section 3.07.055.E, the purchase of computer software, hardware maintenance services, and software maintenance services is exempt from formal bidding requirements. The proposed procurement of the Madison AI software constitutes the purchase of computer software and therefore qualifies for this exemption.
Internal Administration & Governance
The Internal Administration & Governance model provides an AI assistant trained exclusively on the City’s official records, including staff reports, City Council agendas and minutes, ordinances, resolutions, policies, budgets, adopted plans, and other master authoritative documents. This assistant is designed to support routine administrative and governance functions, including researching prior Council actions, drafting staff reports, completing Council requests, summarizing City Council meetings, drafting minutes, and responding to policy or procedural questions. These outputs are reviewed and finalized by City staff in accordance with the City’s AI policies and decision-making processes.
Community Development
The Community Development module supports Culver City’s planning, engineering, and community development functions with an AI assistant trained on Community Development enterprise data, including City plans, municipal code, zoning regulations, planning commission records, permits, GIS, and other development-related documents. This assistant supports zoning and land use research, parcel-level history, code interpretation, and drafting of Planning Commission staff reports or project findings. It is designed to help staff manage document-intensive workloads more efficiently while maintaining professional judgment, ensuring regulatory compliance, and meeting public review requirements.
Procurement & Contracts
The Procurement & Contracts module supports Culver City’s finance, procurement, and department staff by analyzing City budgets, procurement policies, prior contracts, RFPs/RFQs, and grant-related documents to facilitate purchasing and contracting activities. This assistant can help draft procurement requests, summarize, and review contracts using only City-authorized data. All procurement decisions, approvals, negotiations, and contract execution remain under the control of City staff.
Public Records Request - Management & Fulfillment (development)
The City continues to experience a significant and sustained increase in the volume and complexity of public records requests each year, placing growing demands on staff time and departmental resources. Enhancing the City’s ability to efficiently respond to Public Records Act requests will improve operational efficiency, reduce administrative burden, and provide more timely and consistent responses to the public. To address this need, the City is partnering with Madison AI to develop and deploy a fully functional AI-powered Public Records Request Management and Fulfillment tool. This tool will support all departments in identifying, extracting, reviewing, and redacting responsive records in accordance with applicable legal requirements. Through this partnership, City staff will work closely with Madison AI to ensure that both technical and operational business requirements are met, resulting in a solution tailored to Culver City’s workflows, compliance obligations, and service standards.
FISCAL ANALYSIS
Madison AI is offering a lower total cost of ownership compared to comparable enterprise solutions. The pricing structure is scalable to City needs and the City is receiving preferred pricing as Madison is waiving initial setup and costs. The City is not locked into a long-term agreement and may reduce the total modules or terminate that contract after one year. This approach allows the City to fully implement capabilities of all modules to quickly realize operational benefits while maintaining fiscal responsibility.
There is sufficient funding in the Adopted Budget for Fiscal Year 2025-2026 in Account No. 10124100.600200 (General Fund IT - Repairs & Maintenance - Equipment) to cover the $65,000 cost of all module licenses.
ATTACHMENTS
None.
recommended action
MOTION(S)
That the City Council:
1. Approve an agreement with Madison AI for Artificial Intelligence solution package including Administration + Governance, Community Development, Procurement & Contracts, and Public Records Request - Management & Fulfillment for an amount not to exceed $65,000; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.