City Council Agenda Report
Meeting Date: March 19, 2024
From: Jessica Alcaraz, Financial Services Administrator Department: Finance
Submitted by: Angela Melgar, Finance Manager
Subject
Amendments No. 3 and No. 4 to the Services Agreement with Tyler Technologies Recommendation
A. Approve and authorize the City Administrator to execute Amendment No. 3 to the Services Agreement with Tyler Technologies, Inc., in substantially the same form as submitted, for Enterprise Resource Planning Software as a Service Hosting and Support for a total amount notto-exceed $1,271,211.34, for a 3-year term; and B. Approve and authorize the City Administrator to execute Amendment No. 4 to the Services Agreement with Tyler Technologies, Inc., in substantially the same form as submitted, to reflect the addition and removal of various modules from the current Agreement, for a total amount notto-exceed $568,770.22, for the 3-year term.
Background
Tyler Technologies, Inc. (Tyler) is the market leader in technology solutions for government Enterprise Resource Planning (ERP) software. Enterprise ERP, formerly Munis, is an integrated financial management software that provides a robust and user-friendly solution to access information, streamline reporting, and enhance workflow efficiencies, which aids local governments to ensure accountability, make well-informed decisions, and elevate financial transparency. EERP integrates all of the City’s core functions, including financial reporting, human resources/payroll, and procurement. Similarly, Enterprise Permitting & Licensing (EP&L), formerly EnerGov, provides a simplified solution for permit management and business licenses by automating manual and repetitive tasks and allowing for electronic submittal by businesses.
On December 1, 2020, City Council approved an agreement with Tyler for the implementation of a new ERP system and Software as a Service (SaaS) hosting and support services. Since then, most Enterprise ERP and EP&L modules have been implemented and are currently in use, such as Financials, Human Capital Management, Code Enforcement, and Business Management.
This software has aided City staff in providing timely payments, service, and data to vendors, customers, and employees. It has added the capability to apply, pay, and check status online for many functions that were previously in-person or paper-based. General Revenues and Utility Billing module implementations are still in progress. The contract has approximately $700,000 remaining available to see these implementation projects through completion. Once complete, these remaining implementations will divest the City completely from the Eden legacy ERP and will offer true integration of all the City’s financial transactions.
Amendment No. 3 renews the SaaS and hosting agreement for a period of 3 years stating the annual subscription fees for the first year and the maximum annual increase rate for years 2 and 3 of the agreement.
Amendment No. 4 adds EP&L Environmental Health, GIS to the agreement. Environmental Health is the new solution to replace DHD. It simplifies managing inspections and compliance and has a customer facing online portal where they can search for inspection results and report issues that affect public health and community safety. My Civic App is also being added to the agreement. This is a comprehensive and customizable mobile app platform that connects government departments with residents, visitors, and business owners to promote engagement and simplify access to City services. Through this app the City can send push notifications, provide a secure access to bill payment portals, receive community-reported issues, and report back issue resolution all in one mobile app. Resident Access will be added to replace Citizen Self Service. Citizen Self Service allows the public to access City services, apply for licenses and permits, and create requests. Resident Access is the newer version with increased functionality across multiple Enterprise ERP modules thus enhancing the user experience with one logon to access City services and various payment options The Inventory module is being removed from the annual maintenance agreement until the Geographic Information System (GIS) study is completed and the City is ready to implement the Enterprise Asset Management (EAM) module.
The proposed Amendment No. 3 and Amendment No. 4 have been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
Total fiscal impact is not-to-exceed $1,839,981.56 for the three-year agreement. Sufficient funds are available in General Fund, Information Technology, Repairs & Maintenance – IT Account No. 011-010-110-529110 and IT Equipment & Software Account No. 011-010-110-660005 for the current fiscal year and funds will be budgeted in subsequent fiscal years.
Attachments
1. Amendment 3 – SaaS Fees
2. Amendment 4 – Module Additions and Removals
Year 1* Year 2*+ Year 3*+ Total
Amendment No. 3
Annual SaaS Fee $ 409,909.50 $ 422,206.79 $ 439,095.06 $ 1,271,211.34 Amendment No. 4
My Civic SaaS Fee (Citizen Engagement & Requests) $ 20,000.00 $ 20,600.00 $ 21,424.00 $ 62,024.00 Environmental Health SaaS Fee $ 75,190.00 $ 77,445.70 $ 80,543.53 $ 233,179.23 Environmental Health Implementation $ 63,700.00 $ 232,500.00 $ - $ 296,200.00 Citizen Self Service SaaS Fee (removal) $ (10,962.00) $ (11,290.86) $ (11,742.49) $ (33,995.35) Resident Access SaaS Fee $ 10,440.00 $ 10,753.20 $ 11,183.33 $ 32,376.53 Resident Access Implementation $ 11,200.00 $ - $ - $ 11,200.00 Inventory SaaS Fee (removal) $ (10,387.65) $ (10,699.28) $ (11,127.25) $ (32,214.18) Amendment No. 4 Total $ 159,180.35 $ 319,308.76 $ 90,281.11 $ 568,770.22 $ 569,089.85 $ 741,515.55 $ 529,376.17 $ 1,839,981.56
*Agreement year spans February - January
+ SaaS fee CPI not to exceed 3% in year 2 and 4% in year 3