Report to Mayor and City Council
Tuesday, July 16, 2024
Consent
SUBJECT:
Title
CONSIDERATION OF APPROVAL OF CONTRACT AMENDMENT NO. 7 FOR SOFTWARE WITH TYLER TECHNOLOGIES, INC. (CITY COUNCIL)
Body
I. SUMMARY
Staff is seeking City Council approval to amend the existing contract with Tyler Munis Technologies, Inc. to revise the Enterprise Resource Planning System scope of work for additional software and implementation services including, Cash Management, Employee Access, Civic Services, Enterprise Service Requests, My Civic, Enterprise Asset Management, Document Management, Capital Projects Explorer, Open Finance, Docusign Signature Service, third party API Connector, PACE Training and Tyler Connect Days, and associated professional services.
The additional software products will provide financial transparency supporting the City’s Open Data Portal, increase efficiency utilizing Digital E-Signature within the Contract module, launch online 311 Citizen Request services, digitize work order management and asset maintenance with the Enterprise Asset Management and Performance module, and API connectors to other software platforms enabling optimization of business processes, including processing of the Employee Recruitment to Employee Onboarding workflow.
The proposed Amendment No.7 increases the total contract sum by $1,275,791.75. The total contract amount will increase to $4,479,787.57, with a term expiring September 30, 2027.
II. RECOMMENDATION
Recommendation
1. APPROVE Amendment No. 7 to Contract with Tyler Technologies, Inc. for software licenses, implementation services, maintenance, and support for an increased amount not to exceed $1,275,791.75 bringing the adjusted Contract Sum to $4,479,787.57, with a term expiring September 30, 2027; and
2. AUTHORIZE the Mayor to execute Amendment No. 7 after approval as to form by the City Attorney.
Body
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
On November 28, 2016, the City of Carson entered into an agreement with Tyler Technologies, Inc. for an Enterprise Resource Planning (ERP) System, including data conversion, staff training, and maintenance and support for the ERP System, for a contract sum not to exceed the amount of $1,032,903.46. The original contract term was six years from production use of the software post implementation, with optional unlimited two (2) year term extensions.
The City and Tyler Technologies, Inc. amended the agreement several times, including Amendment No.1 to remove cash management and related software license and the addition of contract management software, with a remaining credit of $2600.00 to be applied to software license fees for any Tyler Software Products. Contract Amendment No. 2 dated November 8, 2017, removed Individual Financial Forms from the Scope of Services, and added Tyler Forms AP Lookup to the Scope of Services, decreasing the Contract sum by $6,000.00 to a total contract sum of $1,024,903.46. On February 26, 2018, City and vendor executed Amendment No. 3 adding TSM Maintenance Services to allow vendor to proactively monitor the ERP system for an additional $16,174 annually for a four-year period, increasing the contract sum to $1,089,599.46. City and vendor amended the agreement for the fourth time on February 13, 2019, removing software licenses for Work Orders, Fleet and Facilities Management, and Inventory, providing City a credit of $21,080 toward implementation services, and $7,800 added to allow for travel costs by vendor associated with the implementation services, increasing the contract sum to $1,097,399.46. Both parties executed Amendment No. 5 on November 8, 2021 to remove support and maintenance services for Permits and Code Enforcement, Business Licenses, Central Property File, and Annual Comprehensive Financial Report, providing a discount of $56,075.00, and Amendment No. 6 executed April 5, 2022, to convert all services to a Software-as-a-Service (SaaS) model and provide Tyler Payment services for management of the City’s payment processing, increasing the total contract sum to $3,203,995.82. Amendment No. 6 also established an end date of the contract term which is set to expire September 30, 2027.
The City and Tyler Technologies, Inc. currently seek to execute Contract Amendment No. 7 to add software products and services to the Scope of Services including, Cash Management, Employee Access, Civic Services, Enterprise Service Requests, My Civic, Enterprise Asset Management, Document Management, Capital Projects Explorer, Open Finance, DocuSign Signature Service, third party API Connector, PACE Training and Tyler Connect Days, and associated professional services. The proposed Amendment No. 7 increases the total contract sum by $1,437,075.75 and deducts $161,284.00 for removal of CSS and Munis Business License for a net increase of $1,275,791.75 and an adjusted total contract sum of $4,479,787.57. The additional software products will provide financial transparency on Data Insights with Capital Assets Explorer and Open Finance portal, Enterprise Document Management, Digital E-Signature in the Contract module, Enterprise Asset Management and Performance offering work orders and service queue management, and API connectors to other software platforms enabling optimization of business processes such as Employee Recruitment to Employee Onboarding processing.
Section 2611(e) of the Carson Municipal Code provides that the Purchasing Manager may dispense with the City’s bidding requirements if he or she finds that the materials, supplies, equipment, services, or professional services are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source. Because it is not practically feasible for two different vendors to provide both additional software products and associated professional services and the existing software products and services provided by Tyler Technologies, Inc. due to compatibility, availability, and fitness for a particular use, the additional products need to be procured from Tyler Technologies, Inc. This satisfies the requirement under Section 2611(e) that the new software products and services can only be provided by one source, Tyler Technologies, Inc. V. FISCAL IMPACT
The cost associated with Contract Amendment No. 7 with Tyler Technologies, Inc. is a total not to exceed amount of $1,275,791.75. The software licenses, implementation services, maintenance, training, and support will increase the total contract sum to $4,479,787.57.
The total cost of $1,275,791.75 for software licensing, maintenance, training, and support is included in the current Information Technology & Security Department FY2024-25 budget. Software licensing, maintenance, training, and support will be included in the proposed FY2025-26 and subsequent fiscal year budgets.
|
Fiscal Year |
Amount |
Account Number |
|
FY2024-25 |
$491,934.50 |
299-54-520-999-6020 |
|
FY2025-26 |
$382,018.50 |
299-54-520-999-6020 |
|
FY2026-27 |
$382,018.50 |
299-54-520-999-6020 |
|
FY2027-28 |
$ 19,820.25 |
299-54-520-999-6020 |
|
Total |
$1,275,791.75 |
299-54-520-999-6020 |
VI. EXHIBITS
1. Amendment No. 7 with Tyler Technologies, Inc.
2. Purchasing Waiver
Prepared by: Gary Carter, Director, Information Technology&Security Department