City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 24-291
Meeting Date: 8/06/2024
TITLE: SERVICE AGREEMENT AMENDMENT WITH TYLER TECHNOLOGIES PERTAINING TO IMPLEMENTATION OF THE CITY’S LAND MANAGEMENT SYSTEM (TESSA) UPDATE DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING DIVISION PRESENTED BY: DANIEL INLOES, AICP, ECONOMIC DEVELOPMENT ADMINISTRATOR CONTACT INFORMATION: DANIEL INLOES, AICP, ECONOMIC DEVELOPMENT ADMINISTRATOR, 714-754-5088 RECOMMENDATION:
Staff recommends the City Council:
Authorize the City Manager and City Clerk to increase the total compensation by $90,000 to a not-to-exceed amount of $1,300,856, in substantially the form as approved by the City Attorney.
Authorize the City Manager to approve future amendments to the agreement with Tyler Technologies in an amount not-to-exceed $100,000.
BACKGROUND:
On October 1, 2019, the City Council approved $1,974,693 for the City’s comprehensive “land management system” (LMS) update. Among other components and consultant services involved in this effort, the LMS budget included a contract with Tyler Technologies for the new Energov software and the associated implementation services with a not to exceed amount of $901,606. The Tyler Technologies contract also included a contract contingency of up to $100,000.
On March 19, 2022, the City Council approved an amendment providing additional professional implementation services by Tyler Technologies with a not-to-exceed amount of $1,060,856. This contract amendment was necessary due to the additional time needed for consultant meetings with staff to ensure successful implementation of the software.
On June 6, 2023, the City Council approved a request to modify the provisions of the Tyler Technologies agreement to allow for expanded licensing of the Energov software. The software licensing change allowed the City to have an unlimited number of users to access and use the software. This increased the not-to-exceed amount of the agreement to $1,210,856.
The City’s Land Management System, TESSA, was launched on August 21, 2023.
ANALYSIS:
This request is to secure additional funding for Tyler Technology services and upgrades that will improve the City’s new Land Management System for customers and staff. These software upgrades will assist customers in selecting the appropriate applications, offer enhanced public interfaces, and bolster City departmental integration. Initial tests have demonstrated these enhancements to be beneficial and significantly improve system functionality. The requested contract increase is for $90,000 and includes both additional software and consultant software support.
In addition, staff is requesting that the City Council authorize the City Manager to approve future amendments (not to exceed $100,000) to the Tyler Technologies contract if further software upgrades or software support is necessary. Future amendments would be limited to the total LMS budget.
The budget for this request and future amendments (not to exceed $100,000) for additional software upgrades and support, if needed, is available in the overall LMS budget.
This Fall, after one year of operation, staff will present an update to the City Council on TESSA's contributions to customer service and improvements to the staff permitting review process.
ALTERNATIVES:
The City Council could not approve the additional LMS software upgrades, and/or not approve the authorization of the City Manager to approve future contract amendments.
FISCAL REVIEW:
The requested contract increase amount of $90,000 for additional software and consultant software support is available in the Information Technology Replacement Fund (Fund 603), under the Land Management System (LMS) Project Budget (Project #200086). The budget for future amendments (not to exceed $100,000) for additional software upgrades and support, if needed, is also available in Fund 603.
LEGAL REVIEW:
The City Attorney’s Office has reviewed and approved this report as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature.
CONCLUSION:
Staff recommends the City Council authorize the City Manager and City Clerk to increase the not-to-exceed amount of Tyler Technologies agreement to provide for additional software upgrades and the associate implementation services, and increase the total compensation by $90,000 for a not-to-exceed amount of $1,300,856. Staff further recommends the City Council authorize the City Manager to approve future amendments to the agreement with Tyler Technologies in an amount not-to-exceed $100,000.
Item #: 24-291 Meeting Date: 8/06/2024