December 9, 2025
Agenda Item No. 10
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Grace K. Leung, City Manager - 949-644-3001, [email protected] PREPARED BY:
Jason Al-Imam, Finance Director/City Treasurer - 949-644-3126, [email protected] Jaime Murillo, Interim Community Development Director - 949-644-3209, [email protected] Avery Maglinti, IT Manager - 949-644-3091, [email protected] TITLE:
Amendment No. Four to the Professional Services and Software License Agreement with Tyler Technologies, Inc. for the Land Management System (Contract No. 8399-1) ABSTRACT:
In 2019, the City of Newport Beach (City) entered into a three-year agreement to implement and license the Tyler Enterprise Permitting Licensing (EPL) system, formerly named EnerGov. This agreement expired in June of 2023, and the licensing and support portion of the agreement has continued on an annual renewal basis. Staff is requesting approval to enter into a new five-year agreement with Tyler Technologies for the licensing and support of the EPL system. In addition to the licensing renewal, staff is requesting the purchase of additional EPL licensing, the implementation of Tyler Payments merchant services, the purchase of credit card terminal hardware, and the purchase of licensing for the EPL Decision Engine Product. For the City Council’s consideration is an amendment to the software license agreement with Tyler Technologies, Inc.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Authorize the Mayor and City Clerk to execute Amendment No. 4 to Professional Services and Software License Agreement with Tyler Technologies, Inc. for Land Management System for $933,181.21, for a total not-to-exceed amount of $2,074,194.29.
DISCUSSION:
In 2019, the City entered into a three-year service and licensing agreement with Tyler Technologies for the implementation of the Tyler Enterprise Permitting and Licensing (EPL) system. Tyler EPL was selected after an extensive and competitive selection process to replace a legacy permitting system. The system was implemented in three phases over the course of three years and was completed in 2023. The Tyler EPL system is critical to the daily operations of City departments that manage permitting, planning, inspections, licensing and code enforcement. It has helped streamline and automate many service-related processes throughout the organization.
Realized Benefits of the Enterprise Permitting and Licensing System The implementation of the Tyler EPL system provided the City with several efficiency opportunities to streamline operations and communication between the public and staff. Some of the key benefits realized by implementing the EPL system include:
Modernizes the permitting, planning, licensing and code enforcement workflows by consolidating all functions into a single, integrated platform used across Community Development, Public Works, Fire, Utilities, and Recreation Improves staff efficiency by reducing manual processes, duplication of work, and reliance on paper-based submittals or legacy systems Enhances interdepartmental coordination with unified data and real-time access to case information, documents, inspections, and approvals Provides mobile capability for field operations through Workforce Mobile, allowing inspectors and code enforcement officers to complete inspections, issue notices, and update cases directly from the field Enhances transparency for applicants and residents by offering self-service access to application status, permit history, and required documents Enables integrated online payments, allowing customers to pay fees conveniently online or in person via secure credit card terminals Improves financial reconciliation and reporting by linking payments directly to specific permits and cases within the system Provides improved reporting and analytics through configurable reports, dashboards, and data integrations, enabling departments to track performance, identify trends, and support data-driven decision-making Items Contained in Amendment Four
This amendment to the City’s existing agreement with Tyler Technologies expands and renews the City’s Enterprise Permitting and Licensing (EPL) system, which supports the departments of Community Development, Public Works, Fire, Utilities, and Recreation. Including the operational functions of permitting, planning, licensing, and code enforcement. The amendment addresses four key areas:
Expansion of Enterprise Permitting and Licensing (EPL) System Access The amendment provides additional user licenses for the City’s existing EPL system to accommodate new staff users and improve operational capacity. It also includes the addition of Workforce Mobile, a companion mobile application that allows field staff, such as inspectors and code enforcement officers, to record and update data directly from the field using mobile devices. This enhancement improves efficiency, data accuracy, and real-time information sharing across departments.
Implementation of Tyler Payments
The amendment adds Tyler Payments to provide a fully integrated payment processing solution with the EPL system. This service enables the City to accept and process credit card and electronic check payments for permit, planning, licensing, and code enforcement transactions. As part of this implementation, the City will deploy new credit card terminals at designated locations, allowing staff to process payments in person. Integrating payment processing directly into the permitting system will streamline fee collection, improve reconciliation, and enhance customer convenience.
Addition of Decision Engine
Decision Engine is a web-based tool designed to simplify the online application experience for residents and businesses. It uses a guided question-and-answer format to help users identify the appropriate application type and navigate the required submittal steps. This feature will reduce confusion, minimize incomplete applications, and improve the overall customer experience for users interacting with the City’s permitting portal.
Renewal of Licensing Agreement
The amendment also establishes a five-year renewal of the City’s licensing and support agreement for the EPL system and its associated products, ensuring continued access to software updates, technical support, and maintenance. This renewal provides long-term stability for the City’s permitting platform and ensures continuity of service as the system continues to support community development operations.
The annual cost of the licensing and support agreement, including additional purchases, is $156,460.89, with an annual increase capped at 5 percent. There is an additional one-time cost of $41,456.00 for the purchase of the additional EPL user licensing, Tyler Payments Credit Card Terminals, and Decision Engine. Staff has also included a contingency of $27,180.04 to cover potential additional licensing costs during the term of this agreement. This translates to a total anticipated cost of $933,181.21 for the fully executed five-year licensing and support period, including additional purchases outlined in the agreement.
FISCAL IMPACT:
No additional General Funds are required. The adopted budget includes sufficient funding of $933,181.21 for this amendment. The software license renewal and support portion will be expensed to the Software License Renewal account in the City Manager’s Office IT Division, 76420203 - 871017. The additional user license and Decision Engine purchase will be expensed to the Software Licenses account in the City Manager's Office Permit System Replacement, 7657654 - 911003 ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A – Amendment No. Four License Agreement with Tyler Technologies Approval of Amendment No. Four to the Professional Services and Software License Agreement with Tyler Technologies, Inc. for the Land Management System (Contract No. 8399-1)December 9, 2025
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