Agenda Report
Fullerton City Council
MEETING DATE: may 16, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Sunayana Thomas, Community and Economic Development director aDAM lOESER, fIRE cHIEF
rAUL gODINEZ, iNTERIM PUBLIC WORKS director
rOBERT dUNN, pOLICE cHIEF / information technology director PREPARED BY: TAYLOR SAMUELSON, SENIOR ADMINISTRATIVE ANALYST SUBJECT: TYLER TECHNOLOGIES ENERGOV PERMIT MANAGEMENT SOFTWARE CONTRACT AMENDMENT FOR ADDITIONAL USERS ____________________________________________________________________________________________________________________________________________
SUMMARY
City Council consideration to grant ongoing contract authority to adjust user licenses within Tyler Technologies, Inc. agreement for EnerGov software. ongoing approval for budget transfers and appropriate Permit Surcharge fee revenue to support contract costs and authorization to transfer and appropriate up to $89,975 from General Fund.
RECOMMENDATION
Authorize City Manager, or designee, to execute and administer contract amendments with Tyler Technologies, Inc. – EnerGov application to adjust licenses as needed on an ongoing basis, in a form approved by City Attorney.
Authorize City Manager, or designee, to issue related change orders on an ongoing basis.
Authorize budget transfers from Permit Surcharges to support Tyler Technologies, Inc. – EnerGov application maintenance and operation costs on an ongoing basis.
Approve up to $85,000 budget transfer and appropriation from General Fund to the Information Technology Fund (Fund 68) to cover the shortfall from Permit Surcharge fee revenue for the cost of additional EnerGov licenses.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
This project requires up to $89,975 General Fund appropriation for additional EnerGov user licenses needed by a variety of departments (Community and Economic Development, Public Works, Fire, Information Technology) to support permitting and land management activities.
The City charges a $14.43 surcharge per permit to cover EnerGov software costs. Upgrade implementation costs resulted in a shortfall this fiscal year to cover the immediate need for additional user licenses. This General Fund budget request covers a $74,975 one-time cost for up to 25 additional EnerGov licenses and $15,000 annual ongoing costs to support the additional licenses. Recommendation number four authorizes a new General Fund budget transfer and appropriation up to $89,975 to the IT Fund (Fund 68) to cover the additional licenses and support costs. The Proposed Fiscal Year 2023-24 Budget presented at the April 18, 2023 study session included the annual cost to support these additional licenses.
DISCUSSION
City Council approved the agreement with Tyler Technologies, Inc. – EnerGov on September 16, 2017. The EnerGov software as a service (SaaS) provides permitting and land management functions, critical to the business process for permitting, code enforcement, planning, public works engineering and fire prevention. Tyler Technologies notified the City that it created several user licenses not included in the original SaaS agreement while implementing software upgrades. The additional licenses cost $74,975 plus an annual $15,000 thereafter, requiring a $89,975 change order to activate the additional licenses.
The Proposed Fiscal Year 2023-24 Budget presented at the April 18, 2023 study session included the additional annual costs. The need to activate the additional licenses in the current fiscal year and the shortfall collected in Permit Surcharge fee revenue requires a budget transfer and appropriation from General Fund.
Transferring money between and to appropriate funds and approving contracts and contract amendments requires City Council authorization. The recommendations allow the City Manager, or designee, to approve any future contract amendments to add or remove user licenses as well as issue any future related change orders and authorize future budget transfers and appropriation from Permit Surcharge fee revenue collected in the General Fund to support the Tyler Technologies – EnerGov contract. The recommended action items are administrative in nature as the contract amendment and change order requests only adjust EnerGov user licenses outside of the additional appropriation request, the contract, change order and fund transfer. The budget transfer and appropriation from Permit Surcharge fee revenue is also administrative as the City collects and records Permit Surcharge fees in the General Fund and budgets EnerGov expenditures within the Information Technology Internal Service Fund. The budget and accounting construct of the Permit Surcharge fee revenue requires collecting this fee throughout each fiscal year and transfer from the assigned General Fund balance to the IT Fund and appropriate within the IT Fund through budget development and at mid-year, as necessary. Recommendation number three would allow staff to make these necessary transfers and appropriations from Permit Surcharge fee revenue with City Manager approval.
Any contract amendments not related to user licenses and any additional appropriation request outside of the Permit Surcharge revenue requires City Council approval.
Attachments:
Attachment 1 – Additional User Licenses Quote
Attachment 2 – Original SAAS Agreement Tyler Technologies Attachment 3 – Purchase Order C552446
cc: City Manager Eric J. Levitt
Tyler Technologies EnerGov Contract Amendment
May 16, 2023 - Page 2