To:
CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
Honorable Mayor and Council Members
FROM : Jonathan Orduna, Community Development Director
June 17, 2025 DATE:
SUBJECT: Approval of a Three-Year Software Renewal Agreement with Tyler Technologies, Inc.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the three-year Software as a Service Agreement (SaaS) Amendment for Enterprise Permitting & Licensing (EPL) software with Tyler Technologies, Inc., in a total not-to-exceed amount of $434,196 for Fiscal Years 2025-2026 through 2027-2028.
2. Authorize the City Manager to execute the Agreement, subject to the City Attorney making non-substantive changes.
BACKGROUND
To manage daily permitting and related workflow functions, the City utilizes a software platform referred to as a Land Management System (LMS). On October 18, 2022, the City Council approved a three-year Software as a Service Agreement (SaaS) with Tyler Technologies, Inc., in a total not-to-exceed amount of $663,032 for the procurement of a new Land Management System software called Enterprise Permitting & Licensing (EPL).
Over the past 15 months, both staff and customers have used the system successfully, and implementation outcomes have been positive .
Key benefits from the current use of the software include:
• A self-service portal that automates processes and streamlines workflows, with a transparent application submittal process to guide users through applications. • 24/7 automated customer access to schedule inspections, check permit status, and monitor projects.
• Shorter review times and customer cost savings through the ability to upload digital plans for staff review, along with improved coordination during electronic plan review.
• Real-time access and updates to property data, resulting in greater efficiency and effectiveness for inspectors.
• Customizable dashboards that allow staff to monitor assigned projects and meet target deadlines.
• Integration with other City software programs.
ANALYSIS
The City is seeking to renew the Saas with Tyler Technologies, Inc. for an additional three-year term, starting July 1, 2025 through June 30, 2028. In accordance with Section 8(g) of the City's Purchasing Policy, this renewal qualifies for a bid exemption, as it supports existing citywide Tyler Technologies systems and facilitates continuity in maintenance and support.
Staff received a three-year renewal quote from Tyler Technologies, Inc., for continued services, including permitting software licensing, a point-of-sale cashiering module, and support desk access. The renewal also includes enhanced features, such as an analytical and reporting dashboard. By committing to a three-year term, the City can preserve current pricing discounts and avoid significant cost increases, maintaining a consistent 5% annual escalation over three years. Below is a breakdown of expenditures by fiscal year:
Expenditures By Fiscal Year
Year One (FY 2025-2026) $138,863
Year Two (FY 2026-2027) $144,417
Year Three (FY 2027-2028) $150,916
Total Cost $434,196
Based on the above, staff recommends that the City Council approve the three-year Saas Amendment for Enterprise Permitting & Licensing (EPL) software with Tyler Technologies, Inc., in a total not-to-exceed amount of $434,196 for Fiscal Years 2025- 2026 through 2027-2028, as described in Attachment "A" to this report.
ALTERNATIVES CONSIDERED
The City Council may decide not to approve the Saas Amendment with Tyler Technologies, Inc., however, this is not recommended given the need for continued service and functionality for both staff and the public.
FISCAL REVIEW
Adequate funding is available in the FY 2025-2027 Operating budget for the first two years of the Agreement. Additional funding for year three will be requested as part of the FY 2027-2029 budget process.
LEGAL REVIEW
The City Attorney's Office has approved the Agreement and this staff report as to form.
CONCLUSION
Staff recommends that the City Council:
1. Approve the three-year Software as a Service Agreement (SaaS) Amendment for Enterprise Permitting & Licensing (EPL) software with Tyler Technologies, Inc., in a total not-to-exceed amount of $434,196 for Fiscal Years 2025-2026 through 2027-2028.
2. Authorize the City Manager to execute the Agreement, subject to the City Attorney making non-substantive changes.
T~~~~
City Manager
!t~ Joathan Orduna
Community Development Director
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Management Assistant
Attachments :
Scott C. Smith
City Attorney
Hannah Tamaddon
Management Analyst
A. Software As A Service Agreement Amendment with Tyler Technologies, Inc.
ATTACHMENT A
Software As A Service Agreement Amendment with Tyler
Technologies, Inc.
•• ••• •• ••• • •
AMENDMENT
This amendment ("Amendment") is effective as of the date of signature of the last party to sign as indicated below ("Amendment Effective Date"), by and between Tyler Technologies, Inc. with offices at One Tyler Drive, Yarmouth, Maine 04096 ("Tyler") and the City of Laguna Niguel, California, with offices at 30111 Crown Valley Pkwy., Laguna Niguel, California 92677 ("Client " ).
WHEREAS, Tyler and Client are parties to an agreement dated October 21, 2022 ("Agreement"); and WHEREAS, Tyler and Client desire to amend the terms of the Agreement as provided herein.
NOW THEREFORE, in consideration of the mutual promises hereinafter contained, Tyler and Client agree as follows:
1. Adding Saas Services and Professional Services.
a. The following items set forth in the Investment Summary attached hereto as Exhibit 1 are hereby added to the Agreement as of July 1, 2025 and, notwithstanding anything to the contrary in Exhibit 1, ending coterminous with the Saas Term as defined in the Agreement:
Community Development Suite
EPL 3rd Party IVR API Connector Advisory Consulting
EPL 3rd Party IVR API Connector Implementation Services Professional Implementation Services
Project Manager Services
b. Payment of fees and costs for such items shall conform to the following terms:
i. The first year's annual Saas Fees shall be invoiced on July 1, 2025. Subsequent Saas Fees shall be invoiced in accordance with the terms of the Agreement. ii. Unless otherwise provided herein, services identified at Exhibit 1 and added to the Agreement pursuant to this Amendment, along with applicable expenses, shall be invoiced as provided and/or incurred.
2. Renewing Saas Term.
a. The Saas Term is hereby renewed for a three (3) year period commencing on July 1, 2025 (for the purposes of th is Amendment, the "Renewal Term"). After the completion of the Renewal Term, the Agreement will renew automatically for additional one (1) year terms at our then-current Saas Fees unless terminated in writing by either party at least sixty (60) days prior to the end of the then-current term. We will provide you notice of any increase in Saas Fees no less than sixty (60) days prior to the commencement of the renewal term.
1 b. Saas Fees, as detailed in Exhibit 1, for year one (1) are invoiced annually in advance, beginning on the commencement date ofthe Renewal Term. Subsequent annual Saas Fees ($144,417 for year two (2) and $150,916 for year three (3) of the Renewal Term) are invoiced annually in advance, beginning on the anniversary of the initial invoice date.
c. The Saas fees may be based on user limits indicated in Exhibit 1 and the Agreement, with Exhibit 1 controlling in the event of conflict. Should the number of users be exceeded, Tyler reserves the right to re-negotiate the Saas fees based upon any resulting changes in the pricing categories.
3. This Amendment shall be governed by and construed in accordance with the terms and conditions of the Agreement.
4. Except as expressly indicated in this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the dates set forth below.
Tyler Technologies, Inc. City of Laguna Niguel, California By: _____________ _ By: _______ ______ _
Name: ______________ _ Name: ______________ _
Title : _ _______ ______ _ Title: _____ ____ _ _ ___ _
Date: ______ _____ ___ _ Date: ______ _ ____ ___ _
2 •• ••• •• ••• • •
Exhibit 1
Amendment Investment Summary
Exhibit 1
The following Amendment Investment Summary details the additional software, products, and services to be delivered by us to you under the terms of the Agreement. This Amendment Investment Summary is effective as of the Effective Date, despite any expiration date in the Investment Summary that may have lapsed as of the Effective Date.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
3 •• •••• •• • • •• txe~!:l~ ies
Sales Quotation For:
Hannah Tamaddon
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel CA 92677-2001
Phone:+1(979)362-4300
Tyler Saas
Quoted By:
Quote Expiration :
Quote Name:
Jeff Wamser
6/30/25
EPL Saas Renewal
Description Term Monthly Fee Users/Units Annual Fee
Enterprise Permitting & Licensing Core Software
Enterprise Permitting & Licensing User
Enterprise Permitting & Licensing Foundation
Community Development Suite
Enterprise Permitting & Licensing Extensions
Enterprise Service Requests (Back office only, does not include mobile app) e-Reviews
Decision Engine
Content Management API
EPL 3rd Party IVR API Connector (Generic)
Enterprise Permitting & Licensing Civic Access Credit Card Payment API Toolkit 2025-517355-Z9G1 Y4 CONFIDENTIAL
$ 192
$1,583
$1,291
$1,917
$1,250
$ 725
$ 267
$ 267
$ 267
38 $87,400
1 $19,000
1 $15,500
~-----
1 $ 23,000
1 $15,000
1 $8,700
1 $3,200
1 $3,200
1 $3,200
SSRS Reporting Access - Per User
Tyler Software
Cashiering
Professional Services
Sub-Total:
Less Discount
TOTAL 1.00
$125 2 $3,000
---
$ 524 1 $6,285
$187,485
$_ 48,622
$138,863
Extended
Description Quantity Unit Price Price Maintenance
Profession__a l Services -
EPL 3rd Party IVR API Connector Advisory Consulting 8 $ 250 $2,000 $0 EPL 3rd Party IVR API Connector Implementation Services 48 $ 225 $10,800 $0 Professional Implementation Services 32 $ 225 $7,200 $0 Project Manager Services 8 $ 225 $1,800 $0
TOTAL: $21,800 $0
2025-517355-Z9Gl Y4 CONFIDENTIAL Page 2
Summary
Total Saas
Total Services
Total Third-Party Hardware, Software, Services
Summary Total
Contract Total
Customer Approval :
Print Name:
One Time Fees
$21,800
$0
$21,800
$160,663
Date:
P.O.#:
Recurring Fees
$138,863
$0
$0
$138,863
Client agrees that items in this sales quotation are, upon Client's signature or approval of same, hereby added to the existing agreement ("Agreement") between the parties and subject to its terms. Additionally, payment for said items, as applicable but subject to any listed assumptions herein, shall conform to the following terms:
• License fees for Tyler and third party software are invoiced upon the earlier of (i) delivery of the license key or (ii) when Tyler makes such software available for download by the Client;
• Fees for hardware are invoiced upon delivery;
• Fees for year one of hardware maintenance are invoiced upon delivery of the hardware; • Annual Maintenance and Support fees, Saas fees, Hosting fees, and Subscription fees are first payable when Tyler makes the software available for download by the Client (for Maintenance) or on the first day of the month following the date this quotation was signed (for Saas, Hosting, and Subscription), and any such fees are prorated to align with the applicable term under the Agreement, with renewals invoiced annually thereafter in accord with the Agreement.
• Fees for services included in this sales quotation shall be invoiced as indicated below. o Implementation and other professional services fees shall be invoiced as delivered . • Expenses associated with onsite services are invoiced as incurred. 2025-517355-Z9G 1 Y 4 CONFIDENTIAL Page 3
Comments
Saas Monthly Fees are rounded to the nearest dollar. The Annual Fee value represents the cost to the customer.
Community Development Suite includes Civic Access for Community Development and Community Development Executive Insights Integration with Cashiering - Cashiering is a centralized Point of Sale application for Tyler products. Tyler resources will configure, test, train personnel, and support go-live for functionality utilized by Enterprise Permitting & Licensing powered by EnerGov.
Decision Engine is a web-based application that utilizes yes/no questions to guide citizens through on line applications. Tyler will ensure and troubleshoot the connection and provide application configuration training. The client is responsible to design eReviews enables electronic review and markup of submitted plans and other documentation by client personnel. eReviews requires Bluebeam Studio Prime, at an estimated yearly subscription cost of $3,000/100 users. eReviews also requires Blue beam Revu licenses for agency staff that is involved in the review, markup, and management of electronic plans. Bluebeam Revu licenses are approximately $300 per user per year. Blue beam Studio Revu and Blue beam Prime are to be purchased separately by the client.
Enterprise Service Requests is an application for citizens to report code complaints. Tyler resources will configure, train client personnel, and support go-live for 311 functionality utilized by Enterprise Permitting & Licensing powered by EnerGov.
Enterprise Permitting Support Services provided by Tyler are limited to installation ofthe API and guidance to the Client's integration development resources. Tyler does not provide integration development services for Enterprise Permitting & Licensing powered by EnerGov API/SDK toolkits. The Client (or a selected third party integrator) will perform all development work against the API/SDK.
Enterprise Permitting & Licensing Foundation includes GIS for EPL Users, Core Foundation Bundle, Advanced Automation Bundle, Data & Reporting Access, Report Toolkit, EPL API Toolkit and 1 TB of Storage Enterprise Permitting & Licensing User includes back-office and Workforce Mobile access
NEW SOFTWARE
Communicty Development - Executive Insights
• Additional analytics and reporting tool that allows Laguna Niguel decision-makers and stakeholders to track community development related performance metrics (does not require EPL user account)
ONE-TIME PROFESSIONAL SERVICES FOR EXECUTIVE INSIGHTS
Professional Implementation Consulting Services - Remote • Up to 32 hours intended to provide best practice guidance and troubleshooting assistance throughout Laguna Niguel-led implementation of Executive Insights
Project Management Services - Remote
• Up to 8 hours of internal resource coordination, scheduling, and status calls as needed. 2025-517355-Z9G 1 Y 4 CONFIDENTIAL Page 4
The services included in this proposal are estimates based on a typical Citizen Connect implementation. Should additional services be required, they may be purchased at the rates included in this proposal for a period of up to 6 months following receipt of signed copy of this quote or an approved purchase order that references the quote number provided on this proposal.
Configuration Training, Implementation Consulting, and Project Management hours are billed as utilized.
PAYMENT TERMS
Saas Fees for the term will be invoiced as follows:
• On July 1, 2025 for the period of 7 /1 /25 through 6/30/26: $138,863 • On July 1, 2026 for the period of 7 /1 /26 through 6/30/27: $144,417 • On July 1, 2027 for the period of 7/1/28 through 6/30/28: $150,916 • TOTAL 3 YEAR INVESTMENT: $434,196
2025-S 17355-29G 1 Y 4 CONFIDENTIAL Page 5