HomeMy WebLinkAbout2021-12-14; City Council; ; Amendment No. 4 to the Agreement with Tyler Technologies Inc. for EnerGov Maintenance and Support and EnerGov Assist Advanced ServicesMeeting Date: Dec. 14, 2021
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Maria Callander, IT Director
maria.callander@carlsbadca.gov, or 760-602-2454
Subject: Amendment No. 4 to the Agreement with Tyler Technologies Inc. for
EnerGov Maintenance and Support and EnerGov Assist Advanced
Services
District: All
Recommended Action
Adopt a resolution authorizing the City Manager to execute Amendment No. 4 to the
agreement with Tyler Technologies Inc. to synchronize the annual terms of the EnerGov
maintenance and support services and the EnerGov Assist Advanced services to start on Jan. 1
and end on Dec. 31 of each agreement year and to eliminate the agreement’s autorenewal
provision and replace it with a provision allowing for annual term extensions by mutual
agreement.
Executive Summary
The city has had agreements since 2014 with Tyler Technologies Inc. for the use of two services
provided by EnerGov, an integrated community development system used for modernizing and
enhancing land management and licensing processes.
One of them, EnerGov Assist Advanced, provides consulting services. The other, known as just
EnerGov, provides product and service maintenance for the system.
EnerGov licensing, maintenance and support are on a different annual term, from September to
August, than EnerGov Assist Advanced consulting services, which has a term that runs from
August to July. In addition, the existing product and service maintenance agreement is
perpetual, with automatic renewals and no end date. The proposed amendment to the
agreement with Tyler Technologies will synchronize the annual terms of the EnerGov licensing,
maintenance and support and EnerGov Assist Advanced consulting services and incorporate a
set end date for renewal of the agreement.
To bridge the gap between the existing agreement annual terms and the execution of
Amendment No. 4, Tyler Technologies billed the city for a shortened term so that both the
annual terms end on Dec. 31, 2021. The new product and service maintenance agreement term
will begin on Jan. 1, 2022, end on Dec. 31, 2022, and encompass all services provided by Tyler
Technologies related to EnerGov for an amount not to exceed $181,186 for the first year of the
amendment. The agreement will also now have an annual end date with the option to renew
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with mutual written consent between the City of Carlsbad and Tyler Technologies. A single
annual renewal will include no more than a 5% increase over the prior years’ annual fees.
The City Council’s approval is required under Carlsbad Municipal Code Section 3.28.060 –
Procurement of professional services and services, which requires the City Council’s approval
for the procurement of professional services or services for which the cost to the city is more
than $100,000 per agreement year.
Discussion
The City Council set a strategic goal to upgrade the city's permitting system in 2012. A request
for proposals was released in 2013 for an updated permitting system with the Tyler
Technologies EnerGov product being selected. In 2014, the City Council approved the two
agreements with Tyler Technologies, the sole provider of EnerGov licensing, maintenance and
support and EnerGov Assist Advanced consulting services.
The EnerGov product provided and continues to provide a turnkey software solution that is
web-based. The software also provides an online public access system for the issuance of
permits, inspection scheduling and status inquiries, and for general research by the public. The
solution supports business license coordination and fully interfaces with the city's Geographic
Information System. A mobile workforce platform allows staff to enter information directly
from the field. The EnerGov product helps the city leverage technology to streamline internal
processes and provides a high level of services to the community online.
EnerGov offers numerous innovative options for the city and the public:
• Web-based interaction between Carlsbad and its customers and residents
• Online permit, license, inspection and citizen action request services
• Flexible workflow capabilities
• Integration with the city's geographic information system software
• Integrated credit card processing
The initial professional services agreement was used to implement the EnerGov solutions,
which went live in November 2016. The product and service maintenance agreement has been
amended three times over the years to account for various changes in the city’s needs. The
product and service agreement contains a perpetual term for the EnerGov maintenance and
support services and the EnerGov Assist Advanced services, which was part of a recent
amendment approved under the City Manager’s authority.
Amendment No. 4 will synchronize the two maintenance terms the city has for EnerGov and
EnerGov Assist Advanced which had been:
• EnerGov – September 1 to August 31 annually
• EnerGov Assist Advanced – August 1 to July 31 annually
As part of this consolidation, the city and Tyler Technologies agreed to bridge the gap between
the existing agreement’s annual terms and the execution of Amendment No. 4 with
abbreviated maintenance terms. The city paid a total of $64,521 in October 2021 for an
abbreviated EnerGov maintenance and support term of Aug. 1, 2021, to Dec. 31, 2021, and an
EnerGov Assist Advanced consulting services term of Sept. 1, 2021, to Dec. 31, 2021.
The new terms for these services will be from January 1 to Dec. 31 of each year. Amendment
No. 4 will also discontinue the perpetual term and set an annual end date as discussed and
Dec. 14, 2021 Item #4 Page 2 of 13
allow for extensions to the agreement annually upon mutual consent of the city and Tyler
Technologies.
The annual amount for the services for Jan. 1, 2022, through Dec. 31, 2022, is a not-to-exceed
amount of $181,186 as follows:
EnerGov maintenance and support $ 131,353
EnerGov Assist Advanced 49,833
Total $ 181,186
If an annual extension is agreed to, the amount for the extension will increase by no more than
5% of the previous year’s fees. The City Manager or designee may agree to the future
agreement extensions if the City Council has appropriated funds for the services in the
applicable agreement year’s operating budget during the annual budget process.
Options
The following options are provided for the City Council’s consideration:
1. Adopt a resolution authorizing the City Manager to execute documents necessary to
execute Amendment No. 4 to procure EnerGov maintenance and support and EnerGov
Assist Advanced consulting services from Jan. 1 through Dec. 30, 2022, from Tyler
Technologies
Pros
• The city will continue using the existing Tyler Technologies EnerGov system and
receive consulting services as part of the EnerGov Assist Advanced program
• The city will continue to have licensing to use EnerGov and the ongoing
maintenance and support that are necessary to keep the city’s existing EnerGov
platform operational and current with the latest upgrades and patches
Cons
• None identified
2. Do not adopt the resolution and discontinue EnerGov maintenance and support and
EnerGov Assist Advanced services
Pros
• None identified
Cons
• The city will no longer have the benefit of consulting services under the EnerGov
Assist Advanced program after Dec. 31, 2021
• The city’s licensed use of EnerGov would expire and the city would no longer
have a technology solution for permitting, code enforcement, planning and
business license management. This would have a significant impact on the city’s
ability to deliver community development-related services
3. Direct staff to research other solutions for land permitting and return to the City Council
Pros
• There may be potential for cost savings with other vendors and solutions
Cons
• This option will result in the city’s EnerGov maintenance and support and
EnerGov Assist Advanced services lapsing
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• The time to complete a full request for proposal process to identify and
implement a new integrated community development system would be very
lengthy
Fiscal Analysis
The one-year cost of the EnerGov maintenance and support and EnerGov Assist Advanced
services for the new term will be a not-to-exceed amount of $181,186. Funding is in the
approved fiscal year 2021-22 Information Technology Department’s Operating Budget and a
previously approved amount carried forward from the previous fiscal year’s budget. Future
years’ funding will be requested during the regular fiscal year’s budget process.
Next Steps
With the council’s approval, staff will execute Amendment No. 4 to the Product and Service
Maintenance Agreement dated Sept. 9, 2014 with Tyler Technologies Inc.
Environmental Evaluation
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 in that it has no potential to
cause either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment.
Public Notification
This item was noticed in keeping with the Ralph M. Brown Act and it was available for public
viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1. City Council resolution
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Exhibit 1
RESOLUTION NO. 2021-277
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT
NO. 4 TO THE AGREEMENT FOR PROJECT AND SERVICE MAINTENANCE
WITH TYLER TECHNOLOGIES, INC.
WHEREAS, on Sept. 9, 2014, the City of Carlsbad entered into an agreement with Tyler
Technologies, Inc. for an integrated community development system for land management and
licensing processes using EnerGov products and services;.and
WHEREAS, on Aug. 16, 2016, the parties executed Amendment No. 1 to the Agreement to
provide for additional licenses, related professional services, and maintenance and support services;
and
WHEREAS, on July 23, 2019, the parties executed Amendment No. 2 to the Agreement to add
EnerGov Assist Advanced services to the Agreement's Scope of Services; and
WHEREAS, on Oct. 2, 2019, the parties executed Amendment No. 3 to the Agreement to provide
necessary language changes to Amendment No. 2 to clarify various misstatements; and
WHEREAS, the City Council of the City of Carlsbad, California has determined that it is in the
public interest to further amend the Agreement to synchronize the annual terms of the EnerGov
maintenance and support services and the EnerGov Assist Advanced services to start on Jan. 1 and end
on Dec. 31 of each Agreement year, and to eliminate the Agreement's autorenewal provision and
replace it with a provision allowing for annual term extensions by the parties' mutual agreement; and
WHEREAS, for Agreement year Jan. 1, 2022 through Dec. 31, 2022, the cost of EnerGov
maintenance and support services and EnerGov Assist Advanced services will not exceed one hundred
eighty-one thousand one hundred eight-six dollars ($181,186); and
WHEREAS, the City of Carlsbad has sufficient funds in the Information Technology Internal
Service Fund for the EnerGov maintenance and support services and EnerGov Assist Advanced services
for Agreement year Jan. 1, 2022 through Dec. 31, 2022; and
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AMENDMENT NO. 4 TO EXTEND AND AMEND AGREEMENT FOR PRODUCT AND SERVICE MAINTENANCE TYLER TECHNOLOGIES, INC
This Amendment No. 4 is entered into and effective as of the _______ day of ___________________________, 2021, extending and amending the agreement datedSeptember 9, 2014 (the “Agreement”) by and between the City of Carlsbad, a municipal corporation, ("City"), and Tyler Technologies, Inc., a Delaware corporation, (“Tyler") (collectively, the “Parties”) for annual EnerGov maintenance and support services and EnerGov Assist Advanced services.
RECITALS
A.On August 16, 2016, the Parties executed Amendment No. 1 to the Agreement toprovide additional licenses, related professional services, and maintenance and support services; and
B.On July 23, 2019, the Parties executed Amendment No. 2 to the Agreement to add
EnerGov Assist Advanced services to the Agreement’s Scope of Services; and
C.On October 2, 2019, the Parties executed Amendment No. 3 to the Agreement to
provide necessary language changes to Amendment No. 2 to clarify various misstatements; and
D.The Parties desire to alter the Agreement’s scope of work to synchronize the annual
terms for EnerGov maintenance and support services and EnerGov Assist Advanced services to start on January 1st and end on December 31st of each Agreement year; and
E.The Parties desire to alter the length of the Agreement to eliminate automatic one-year Agreement extensions and instead provide for annual one-year extensions based on the Parties’ mutual written consent; and
F.The Parties have negotiated and agreed to a supplemental scope of work and feeschedule describing the desired Agreement alterations and associated cost, which is attached to and incorporated into this Amendment by this reference as Exhibit “A”, Scope of Services and Fee.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows:
1.In addition to those services contained in the Agreement, as may have beenamended from time to time, the Agreement is amended to incorporate the alterations in Exhibit “A,” including synchronizing the annual terms for the EnerGov maintenance and support services and
EnerGov Assist Advanced services to begin on January 1 and end on December 31 for each Agreement year and to provide for annual Agreement extensions by mutual consent rather than by autorenewal. For Agreement year January 1, 2022 through December 31, 2022, the cost of EnerGov maintenance and support services and EnerGov Assist Advanced services may not exceed one hundred eighty-one thousand one hundred eight-five dollars and sixty-two cents ($181,185.62).
2.The City Manager or designee may agree to future Agreement extensions providedthe cost of the EnerGov maintenance and support services and EnerGov Assist Advanced services
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do not increase by more than five percent (5%) in any Agreement year and the City Council has appropriated funds for the services in the applicable Agreement year’s operating budget through the
Cities annual budget process. 3. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 4. All requisite insurance policies to be maintained by Tyler pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. /// /// ///
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5. The individuals executing this Amendment and the instruments referenced in it on
behalf of Tyler each represent and warrant that they have the legal power, right and actual authority to bind Tyler to the terms and conditions of this Amendment. TYLER TECHNOLOGIES, INC. CITY OF CARLSBAD, a municipal corporation of the State of California
By: By:
(sign here) City Manager
(print name/title)
ATTEST:
By:
(sign here) FAVIOLA MEDINA
City Clerk Services Manager
(print name/title)
If required by City, proper notarial acknowledgment of execution by Contractor must be attached. If
a corporation, Agreement must be signed by one corporate officer from each of the following two groups: Group A Group B Chairman, President, or Vice-President
Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
CELIA A. BREWER, City Attorney
BY: _____________________________ Assistant City Attorney
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Division PresidentDane Womble
Sr. Corporate AttorneySherry Clark
for
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EXHIBIT “A” SCOPE OF SERVICES AND FEE 1. As of the Amendment Effective Date, the third paragraph of Section 2 of the Agreement, “License and Maintenance Term,” is deleted and replaced with the language below:
Maintenance and Support is provided according to the terms set forth in this
Agreement, including its Schedule C, as of the Available Download Date and
continuing through the Support and Maintenance Start Date. Thereafter, Maintenance and Support may be renewed for additional one (1) year periods by
mutual written consent of the parties. Client’s payment of an annual Maintenance and Support renewal invoice shall be deemed Client’s consent to renew.
Notwithstanding the foregoing provision, Tyler will raise Client’s annual
Maintenance and Support Fees by no more than five percent (5%) over the prior years’ annual fees.
2. As of the Amendment Effective Date, a fourth paragraph is added to Section 2 of the Agreement, “License and Maintenance Term,” as follows:
Payment of fees and costs for EnerGov maintenance and support and EnerGov
Assistant Advanced services shall conform to the following terms:
Annual EnerGov Maintenance and Support Services. Fees for annual EnerGov
maintenance and support services are due annually, in advance, commencing
on September 1, 2021. Annual fees for the initial term are set forth in Exhibit A of Amendment No. 4 to the Agreement and will be prorated for the time period
of September 1, 2021, through December 31, 2021. Thereafter, the annual cycle will be from January 1 through December 31 of each year at Tyler’s then-
current rates, subject to the five percent (5%) annual increase limit included in
the third paragraph of this Section 2.
Annual EnerGov Assist Advanced Services. Fees for annual EnerGov Assist
Advanced services are due annually, in advance, commencing on August 1, 2021. Annual fees for the initial term are set forth in Exhibit A of Amendment
No. 4 to the Agreement and will be prorated for the time period of August 1,
2021, through December 31, 2021. Thereafter, the annual cycle will be from January 1 through December 31 of each year at Tyler’s then-current rates,
subject to the five percent (5%) annual increase limit included in the third
paragraph of this Section 2.
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3. As of January 1, 2022, the annual maintenance and support cycle for all items under the Agreement will be changed in accord with the below chart:
Old M+S Annual Cycle New Annual M+S Cycle
September 1-August 31 January 1- December 31
Old EnerGov Assist Advanced Services New EnerGov Assist Advanced Services
August 1-July 31 January 1- December 31
4. Payment of short termed invoices to amend annual maintenance and support cycle were made as follows:
On August 31, 2021, Invoice #025-348098 (Credit Memo) was issued to the City with the Credit Memo being applied to Invoice #025-341522. The
remaining balance of Invoice #025-341522 for EnerGov maintenance and support period of September 1, 2021 through December 31, 2021 has been paid.
On August 31, 2021, Invoice #025-347752 (Credit Memo) was issued to City with the Credit Memo being applied to Invoice #025-341522. The remaining balance of Invoice #025-337876 for the EnerGov Assist Advanced services period of August 1, 2021 through December 31, 2021 has been paid.
5. Annual costs for EnerGov maintenance and support services and EnerGov
Assist Advanced services for January 1, 2022 to December 31, 2022:
Description Invoice # Amount Credit Memo Amount Net Paid
Maintenance 09/01/21-08/31/22 09/01/21-12/31/21 025-341522 131,352.62 025-348098 (87,568.42) 43,784.20
EnerGov Assist 08/01/21-07/31/22 08/01/21-12/31/21 025-337876 49,833.00 025-347752 (29,096.25) 20,736.75
181,185.62 (116,664.67) 64,520.95
Original Cycle Date Range
Invoices
Shortend Cycle Date Range
Adjustment
Original Cycle Date
Range
Shortend Cycle Date
Range
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