June 24, 2025
Information Technology
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Sue Hartman, Director of Information Technology
Subject:
Contract with Tyler Technologies, Inc. for the MUNIS
Enterprise Resource Planning (ERP) System
FINANCIAL IMPACT: Funding is allocated from the Information Technology operating budget for a five-year (5) or 60 month amount not to exceed $3,868,126 (Account String: 01262417-
400502).
PREVIOUS COUNCIL
ACTION:
STATEMENT OF THE
ISSUE:
The City of Richmond is in need for a new contract with Tyler Technologies, Inc. in support of the Financial and Human Resources systems for Software-as-a-Service
(SaaS) for the MUNIS Enterprise Resource Planning
(ERP) System.
RECOMMENDED ACTION:
APPROVE a contract with Tyler Technologies, Inc.,
subject to additional revisions as approved by the City Attorney’s Office, for Software as a Service (SaaS) for the MUNIS Enterprise Resource Planning (ERP) System
for license use of Financial and Human Resources
software for a term of five years, or sixty (60) months, with the amount of $654,102 for year one, and an
additional one-time implementation cost of $253,800 that can be used at any time, for a total year-one FY2025-26 amount of $907,902. Annual recuring costs will increase by 5 percent each following year, for a total five-year (5) cost including the additional one-time cost not to exceed AGENDA
REPORT
June 24, 2025
$3,868,126 - Information Technology Department (Sue
Hartman 510-620-6874).
DISCUSSION:
The Tyler Technologies, Inc. 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 Software as a Service contract with Tyler Technologies, Inc. for the MUNIS ERP system in September 2007 and has had thirteen subsequent amendments extending those services with Tyler. The City’s recent amendment has extended the agreement to June 30, 2025. On April 26, 2024, the City published a request for proposals (RFP) to receive from vendors quotes and bids for certain information technology related services. The City solicited a total of 2245 vendors of which 41 registered vendors registered the RFP. On May 24, 2024, the City received from Tyler Technologies, Inc. a responsive bid to provide ERP services (Attachment 1). The City currently uses Tyler Technologies for its ERP services. A new SaaS agreement is needed to continue hosted services and software use for five years with Tyler Technologies, as they were the sole competing vendor for the ERP services needed by the City.
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 (Attachment 2).
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 the support and training needed 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:
June 24, 2025
City staff recommend approval of the new agreement with Tyler Technologies, Inc., subject to additional revisions as approved by the City Attorney’s Office, 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 five years, or sixty (60) months, with the amount of $654,102 for year one, increasing by 5 percent for each following year. An additional one-time implementation cost of $253,800 can be used at any time. Total five-year (5) cost not to exceed $3,868,126 (Attachment 3).
DOCUMENTS ATTACHED:
Attachment 1 – RFP Response – Tyler Technologies, Inc.
Attachment 2 – Five Year Payment Schedule
Attachment 3 – Contract