1 CITY COUNCIL STAFF REPORT
Meeting: May 21, 2024
Subject
Approve a First Amendment with Tyler Technologies for continued Enterprise Resource Planning (ERP) Software Maintenance and Support, for a total not‐to‐ exceed amount of $672,924.92 including a 10% contingency and extending the contract date to June 30, 2028.
Recommended Action
Authorize the City Manager to execute a First Amendment with Tyler Technologies for continued Enterprise Resource Planning (ERP) Software Maintenance and Support, for a total not‐to‐exceed amount of $672,924.92 including a 10% contingency and extending the term of the agreement to June 30, 2028.
Reasons for Recommendation
Since 2014 the City has utilized the New World ERP software system for financial and human resources management. To maintain the software’s licensing, maintenance and support, the City paid an annual fee, ensuring access to upgrades, patches, and technical assistance. Keeping the software up to date is critical for regulatory compliance and securing the City’s core ERP systems against cyber threats.
In 2015, Tyler Technologies acquired New World Systems. Subsequently, in 2017, the Innovation & Technology department established an annual maintenance agreement with Tyler Technologies under the City Manager’s award authority and legal guidance. Annual maintenance agreements were renewed through 2022.
In 2022, the City initiated the process of developing a solicitation to evaluate ERP solutions in the marketplace. In 2024, recognizing financial constraints, staff adjusted its approach to forego alternative ERP solutions and instead to focus on enhancing the existing Tyler solution. 2 To facilitate this direction, the Innovation & Technology department recommends a 5‐year extension amendment for Tyler Technologies to continue to provide annual maintenance with additional funds dedicated to improving Tyler’s functionality. This pragmatic strategy aims to optimize the City’s ERP software suite while addressing budget realities.
Sustainability Impact
No impact.
Fiscal Impact
The table below provides a detailed breakdown of the projected future expense associated with the Maintenance and Support which totals $672,924.92. Included in the total contract amount is a 10% contingency to address the deficiencies and gaps identified in a Needs Analysis conducted in preparation for the RFP.
Fiscal Year Price Services Provided
FY24 $110,711.32 Maintenance and Support
FY25 $116,246.89 Maintenance and Support
FY26 $122,059.23 Maintenance and Support
FY27 $128,162.19 Maintenance and Support
FY28 $134,570.30 Maintenance and Support
10% Contingency $ 61,174.99 Software Enhancements
Not‐to‐exceed Total $672,924.92
California Environmental Quality Act
Not applicable.
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Prepared by: Nidhi Mathur, Applications Manager
Reviewed by: Bill Mitchell, Chief Technology Officer
Michael Woo, Senior Assistant City Attorney
Matt Morley, Assistant City Manager
Approved by: Pamela Wu, City Manager
Chris Jensen, City Attorney
Attachments:
A – Draft Amendment
B – Standard Software and License and Service Agreement C – Maintenance Services Agreement