July 2, 2024
Information Technology
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Sue Hartman, Director of Information Technology
Subject:
Proposed Thirteenth Amended Contract with Tyler
Technologies for License, Maintenance, Training, and
Services
FINANCIAL IMPACT: Funding is allocated from the Information Technology operating budget (account 01262417-400502).
PREVIOUS COUNCIL
ACTION:
9/18/2007, 11/15/2013,11/21/2017, 3/20/2018,
5/18/2021, 7/26/2022
STATEMENT OF THE
ISSUE:
The current agreement for Software as a Service (SaaS)
for the Tyler Technologies MUNIS Enterprise Resource
Planning (ERP) system is expiring June 30, 2024. An
interim amended SaaS agreement is needed to continue
hosted services and software use for one year while the City negotiates a longer-term agreement.
RECOMMENDED ACTION:
APPROVE an amendment to extend the term to the
agreement with Tyler Technologies for Software as a
Service (SaaS) for the MUNIS Enterprise Resource
Planning (ERP) System for a single extended term of one year, or twelve months, with a not to exceed amount of
$672,556 – Information Technology Department (Sue
Hartman 510-620-6874).
DISCUSSION:
The Tyler Technologies MUNIS enterprise resource planning (ERP) system integrates management information, including base financial, human resource, and accounting data, across the entire City organization. The City entered into an initial five-year AGENDA
REPORT
July 2, 2024
Software as a Service contract with Tyler Technologies for the MUNIS ERP system in September 2007 and has had twelve subsequent amendments. The City’s recent amendment has extended the agreement to June 30, 2024. An interim amended SaaS agreement is needed to continue hosted services and software use for one year while the City negotiates a longer-term agreement.
The initial contract followed an extensive review of ERP software options and replaced the former SAP system. The contract provides for the City’s use of this ERP software, with hardware hosting and software maintenance provided by Tyler Technologies. This contract arrangement has proven to be efficient and cost-effective during the past seventeen years, and the MUNIS system is effectively meeting the City’s ERP system needs.
The City of Richmond’s planned software upgrades are complex and require many resources from multiple departments to perform extensive research in preparation to successfully test and train for these software application changes. These proposed services and consulting hours will provide needed support and training for City staff.
Included in this contract is a Planned Annual Continuing Education (PACE) program that offers ongoing education to train staff on new features and functions as they become available, ensuring staff is operating at peak efficiency and has the knowledge to meet the evolving software needs of the City of Richmond. Included in PACE is an Investment Assessment that reviews how the current ERP business practices align with available product functionality, as well as how existing processes can be streamlined to create efficiencies for current ERP users. Consulting hours are provided to assist with the upgrade to the new version of Tyler Technologies MUNIS.
Next Steps:
Staff is recommending approval of the thirteenth amended agreement with Tyler Technologies for Software as a Service (SaaS) for the MUNIS Enterprise Resource Planning (ERP) System including licensing, continued use, maintenance, and training for a term of one year, or twelve (12) months, with the amount not to exceed $672,556.
This one-year extended term amendment will allow for the City to negotiate an updated agreement with the vendor that will include more favorable terms for the City.
DOCUMENTS ATTACHED:
Attachment 1 – Amended Contract
Attachment 2 – Amendments Nos. 1-5
Attachment 3 – Amendments Nos. 6-10
Attachment 4 – Amendment No. 11
Attachment 5 – Amendment No. 12
Attachment 6 – Original Contract