CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 2 Section Name: CONSENT CALENDAR Account Number: 26-3125 File ID: 2018 - 25-10650 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: December 15, 2025
SUBJECT:
Community Development Permit Tracking Software Agreement – Amendment RECOMMENDATION:
Approve Amendment No. 3 to the Agreement with Tyler Technologies, Inc. for the annual service maintenance/support fee increase for the current year and the remaining three years of the five-year agreement in the amount of $862,012.77; and authorize the Community Development Director to execute the Amendment in substantially the form presented.
BACKGROUND:
In June 2013, City Council approved an agreement with Tyler Technologies, Inc. (Tyler Technologies) to purchase permit and project tracking software (EnerGov) with related services and support to convert the City’s paper-based permit tracking system to an electronic system. The term of this agreement for Tyler Technologies’ services automatically renews each year unless terminated by either party. The continuing fees for Tyler Technologies’ services, including licensing and maintenance/support, are thereafter renewed, and invoiced on an annual basis.
When originally established, the City hosted the software in City owned on-premises servers located at City Hall, requiring continuous software and hardware maintenance, and monitoring and upgrades by City IT staff. As part of the next generation of software and security upgrades, a transition to a cloud-based service became necessary. On August 19, 2024, the City Council approved Amendment No. 2 to the agreement with Tyler Technologies to transition to a cloud- based platform for file storage, support, and security, and included an increased annual service maintenance/support fee.
This transition to the cloud-based system has freed up in-house server space, reduced City overhead administrative burdens and provided for an improved user experience with enhanced cybersecurity protection and monitoring functionality.
This Amendment is coming before the Council to authorize the full cost of this agreement for the five-year term, as required by the City’s purchasing policy. The annual cost of this software was previously covered by Community Development’s annual budget, however with the annual cost now exceeding $100,000, it requires City Council approval.
When this amendment was approved by Council on August 19, 2024, it authorized the transition to the cloud-based services and an increase in the annual service and maintenance fee for the first year, but not years 2-5 of the Agreement.
This amendment to the Agreement with Tyler Technologies will cover the annual service maintenance/support fee increases for the current year (FY25-26) and the remaining three years of the five-year term of the agreement. All other agreement terms are the same as those approved by City Council on August 19, 2024.
BUDGET IMPACT:
The total annual service maintenance/support fees for the Energov Permitting and Licensing software over the five-year term of this agreement will be $1,056,393.77, and breaks down as follows:
CITY OF SAN MATEO
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Year 1 (FY24-25) - $194,381 (approved and paid)
Year 2 (FY25-26) - $202,966.22 (4.42% increase)
Year 3 (FY26-27) - $209,055.21 (3% increase)
Year 4 (FY27-28) - $219,507.97 (5% increase)
Year 5 (FY28-29) - $230,483.37 (5% increase)
However, it should be noted that the City will realize cost savings from reduced on-premises server needs and IT staff support, which will result in full cost recovery and actual cost savings over this five-year period. The annual costs to pay for the Energov Permitting and Licensing software fee will be accounted for in Community Development’s annual budget and will be funded by the Construction Services Fund (Fund 230), with no impact to the City’s General Fund.
ENVIRONMENTAL DETERMINATION:
This administrative item is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.) NOTICE PROVIDED:
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Agreement Amendment No. 3
STAFF CONTACT
Jennifer Rosas, Business Manager
[email protected]
(650) 522-7164