To: Honorable Mayor and Members of City Council
From: Liz Habkirk, Assistant City Manager
Prepared By: Scott Nielsen, Information Technology Manager
TITLE:
Title
Enterprise Resource Planning (EERP) Project Budget Amendment
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution authorizing the City Manager to approve an intrafund budget transfer in the amount of $370,000 from the CDD Technology Reserve to Information Technology Projects as documented in Council Budget Amendment No. 4P10.
Body
DISCUSSION:
On November 2, 2021, the City Council approved Resolution No. R2021-106 authorizing the City Manager to execute an amendment to Agreement C2020-058 with Tyler Technologies, Inc. for the provision of Energov software, hardware, and implementation services to upgrade the City’s land management and development permitting systems.
Beginning in 2022, representatives from the City Manager’s Office and the Community Development, Public Works, Fire, and Utilities Departments participated in the implementation of the new software. The City also hired a part-time staff member to provide overall project management.
While Agreement C2020-058 covered all Tyler services, Amendment No. 7 added recurring SaaS fees and additional permitting and GIS user software licenses for a total not-to-exceed amount of $1,515,852. It was then determined that additional funding was required for further implementation and project management time to allow for a more successful roll-out, increasing the total not-to-exceed amount to $1,585,852.
On March 13, 2025, the City entered into Agreement C2025-037 with Koa Hills for ERP support services in an amount not-to-exceed $150,000. Subsequently, additional funding was required to continue the work, and on August 19, 2025, the City approved Amendment No. 1, increasing the not-to-exceed amount to $300,000. The Information Technology Manager determined that more funds were required to continue the work, and Amendment No. 2 increased the total not-to-exceed amount to $535,000. The agreement remained subject to annual budget appropriations.
On December 2, 2025, Council approved a budget transfer in the amount of $350,660 from the Nonrecurring General Fund (101) to the Information Technology Fund (630). The Enterprise Resource Planning (EERP) project lives in Information Technology Fund (630) in a sub-fund dedicated to Information Technology projects (63012220). The EERP project is currently the only project within this sub-fund. $295,000 was transferred to the Enterprise Resource Planning (EERP) project (40LANDMGMT) and $55,660 was transferred to the Information Technology Fund’s fund balance to correct a prior year administrative error.
The Information Technology Manager has determined that additional budget is necessary to fund previously authorized contracted services, part-time support essential for the successful rollout of the Energov software, and the continued support of the system thereafter.
FINANCIAL IMPACTS:
The proposed action would require an intrafund transfer within the Information Technology Fund (630) between two self-balancing organization codes of $370,000 from the CDD Technology Reserve (63012220) to Information Technology Projects (63012210) for the Enterprise Resource Planning (EERP) project (40LANDMGMT). There is a sufficient unassigned fund balance of $470,000 in the CDD Technology Reserve.
CEQA:
The Information Technology Manager has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060 (c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Council Budget Amendment No. 4P10
NOTIFICATION:
None.