ACTION:
____________________________
Clerk/Secretary
Department: Finance Item No: C12
Prepared by: Mathew McDonald, Finance Manager Meeting Date: June 25, 2024 Approved by:
Mike Sylvia, Director of Finance
John Conley, City Manager Agenda Location: Consent Calendar SUBJECT: CONTRACT WITH TYLER TECHNOLOGIES FOR SOFTWARE-AS-A-SERVICE (SAAS)
HOSTING
RECOMMENDATION:
1.Adopt City Council Resolution No. 2024- , approving a contract with Tyler Technologies for Software- as-a-Service (SaaS) hosting of the City’s Enterprise Resource Planning (ERP) software.
2.Adopt City Council Resolution No. 2024- , amending the Operating Budget for Fiscal Years 2023/24 and 2024/25.
3. Adopt Buena Sanitation District Resolution No. 2024- , amending the Operating Budget for Fiscal Years 2023/24 and 2024/25.
CORRELATION TO CITY COUNCIL GOALS: Operational item not corresponding to a specific City Council goal.
PRIOR ACTION: On May 23, 2006, adopted City Council Resolution 2006-118, approving an agreement with Tyler Technologies to implement Munis as the City of Vista’s Finance Enterprise Resource Planning (ERP) software. (Vote: 4-0, Vance absent).
STATEMENT ON THE SUBJECT:
The City has partnered with Tyler Technologies (Tyler) since 2006 to provide its Enterprise Resource Planning (ERP) software, which has been known as Munis and is now named Enterprise ERP.
Historically, this software has been self-hosted on City premises. However, current best practices now recommend remote hosting as the optimal solution. Specifically, new Tyler customers are sold the SaaS platform instead of the on-premises solution. This means the on-premises solution is being deprecated and serviced less (creating more system glitches and staff delays in providing service). Tyler has made it clear that the City will eventually be forced into this SaaS migration, consistent with all of the agencies with which they partner. In addition, the SaaS platform streamlines the current (and future) upgrade process for City staff. This has been a continuous point of improvement since first implementing Munis and it diverts limited staff resources away from other, more value-added activities and services to the City’s stakeholders. Another SaaS advantage is Tyler assumes responsibility for cybersecurity, network infrastructure, server hardware, and disaster recovery. Currently, the Vista IT department has these responsibilities. Lastly, this project aligns with the IT strategic plan of moving all software applications to vendor-hosted cloud solutions.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Approved above recommendation, adopted the following: 1) City Council Resolution No. 2024-114. Vote: 4-0 (Green absent); 2) City Council Resolution No. 2024-115. Vote: 4-0 (Green absent); 3) Buena Sanitation District Resolution No. 2024-9. Vote: 4-0 (Green absent)
MEETING DATE: June 25, 2024 PAGE 2
SUBJECT: CONTRACT WITH TYLER TECHNOLOGIES FOR SOFTWARE-AS-A-SERVICE (SAAS) HOSTING.
Given the City’s extensive reliance on Tyler Technologies and its Enterprise ERP, and in accordance with VMC § 3.08.060 (B) (4), Tyler Technologies is the only vendor able to deliver the remote Software as a Service (SaaS) solution, due to the existing utilization of the Tyler Enterprise ERP on-premise version.
The Agreement with Tyler Technologies for Software-as-a-Service (SaaS) hosting will enhance Financial Management, Human Resources Management, and Revenue Management software systems.
Tyler’s Enterprise ERP Software-as-a-Service (SaaS) is a cloud-based solution that provides standardized access, maintenance, and support for enterprise applications used by government agencies. This agreement will introduce SaaS hosting for Enterprise ERP software and will assist in the integration of many other systems already in use by the City. Processes improved or made possible by SaaS include the following: management of General Ledger and Procurement (Tyler Munis Financials), Human Resources and Payroll (Tyler Munis Human Capital Management), daily cash handling and payments (Tyler Cashiering), Human Resources Management (Tyler Munis Human Resources Management), and Revenue Management (Tyler Munis Revenue Management). Implementing this SaaS solution will enable enhanced remote accessibility for City employees and approved contractors, an upgrade to the newest software, and ongoing maintenance, thereby ensuring the efficient operation of City services and systems.
FISCAL IMPACT: Approval of the Agreement with Tyler Technologies for Software-as-a-Service hosting will provide a one-time setup fee of $16,137, in addition to ongoing subscription costs of $322,737 annually. The total subscription cost for Fiscal Year 2024/25 is $338,874. For Fiscal Year 2024/25, $146,000 is budgeted for the annual maintenance fee for Tyler Technologies Enterprise ERP, allocated to account 6040135.531530. Approval of the staff report will appropriate an additional $192,874 into the Information Technology Internal Service fund (6040135.531530) to fully fund the project. The $192,874 increase will be funded through a transfer in of $142,043 from the General Fund (0010900.590604), $31,515 from charges for services to the Vista Sewer Fund (5010375.585000), and $19,316 from charges for services to the Buena Sanitation District (5040380.585000).
EXHIBITS:
1. City Council Resolution No. 2024- , approving a contract with Tyler Technologies for Software-as- a-Service (SaaS) hosting of the City’s Enterprise Resource Planning (ERP) software
2. City Council Resolution No. 2024- , amending the City of Vista Operating Budget for Fiscal Years 2023/24 and 2024/25
3. Buena Sanitation District Resolution No. 2024- ,amending the Buena Sanitation District Operating Budget for Fiscal Years 2023/24 and 2024/25
4. Tyler Technologies Agreement Amendment for Software-as-a-Service (SaaS) implementation agreement
06/25/2024 C12 2 of 15
00029213 7
RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF
VISTA, CALIFORNIA, APPROVING A CONTRACT WITH TYLER
TECHNOLOGIES FOR SOFTWARE AS A SERVICE (SAAS) HOSTING OF THE CITY’S ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE
The City Council of the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. The City has partnered with Tyler Technologies (Tyler) since 2006 in the provision of its Enterprise Resource Planning (ERP) software, formerly known as Munis, now Enterprise ERP in an on-premise format. Tyler is the only organization that can provide Enterprise ERP, which provides the platform for the City’s financial and human resource management functions. Best practices and optimizations now dictate the utilization of a cloud- based version of Enterprise ERP or Software as a Service (SaaS) which provides standardized access, maintenance, and support for enterprise applications used by government agencies.
B. Given that Tyler is the only firm that can provide Enterprise ERP in a SaaS version and pursuant to Vista Municipal Code § 3.08.060 (B) (4), the Purchasing Officer recommends waiving the requirements for solicitation of multiple proposals.
C. The Tyler SaaS ERP contract will provide the City with licensing for the SaaS services required for business process improvements identified in the Enterprise ERP SaaS implementation agreement and project outline.
2. Action.
A. The SaaS ERP contract between the City of Vista and Tyler Technologies for software subscription is approved, and the City Manager is authorized to execute the agreements and to approve and execute any future renewals of the SaaS agreement.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on June 25, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
APPROVED
Walter C. Chung
20240617114556
JOHN B. FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
06/25/2024 C12 3 of 15
EXHIBIT 1
00029213 7
RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF
VISTA, CALIFORNIA, AMENDING THE OPERATING BUDGET
FOR FISCAL YEARS 2023/24 AND 2024/25
The City Council of the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. On June 27, 2023 the City Council adopted Resolution 2023-117 approving the Operating Budget for Fiscal Years 2023/24 and 2024/25.
B. The City Council desires to amend the Operating and Capital Project Budgets at this time to reflect changed circumstances.
2. Action.
A. The Operating Budget for Fiscal Years 2023/24 and 2024/25 is amended as set forth in Exhibit A.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on June 25, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
APPROVED
Walter C. Chung
20230814103001
JOHN B. FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
06/25/2024 C12 4 of 15
EXHIBIT 2
RESOLUTION NO. 2024-
CITY COUNCIL FOR THE CHARTERED CITY OF VISTA
PAGE 1 EXHIBIT A
1. Account Number Account Description Increase Decrease 6040135.531530 Information Technology (IT) Technology Purchases 192,874$ 6040090.482001 Transfer in from the General Fund 142,043$ 0010900.590604 Transfer out from the General Fund 142,043$ 6040090.439500 Internal Charges for IT Services Revenue 50,831$ * 5010375.585000 Sewer-Internal Charges for IT Services Expense 31,515$ *$19,316 of revenue for the IT charges for services will be funded through the Buena Sanitation District Appropriations are hereby made and estimated revenues are hereby adjusted to fund Tyler SaaS contract. 06/25/2024 C12 5 of 15
00056393 5
RESOLUTION NO. 2024-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BUENA SANITATION DISTRICT, AMENDING THE OPERATING BUDGET FOR FISCAL YEARS 2023/24 AND 2024/25
The Board of Directors of the Buena Sanitation District does resolve as follows:
1.Findings. The Board of Directors hereby finds and declares the following:
A.On June 27, 2023 the Board of Directors adopted Resolution 2023-5 approving the Operating Budget for Fiscal Years 2023/24 and 2024/25.
B.The Board of Directors desires to amend the Operating Budget at this time to reflect changed circumstances.
2.Action.
A.The Operating Budget for Fiscal Years 2023/24 and 2024/25 is amended as set forth in Exhibit A.
3. Adoption. PASSED AND ADOPTED at a meeting of the Board of Directors of the Buena Sanitation District held on June 25, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, DISTRICT COUNSEL
By:
JOHN B. FRANKLIN, CHAIRPERSON
ATTEST:
KATHY VALDEZ, CLERK OF THE BOARD
By:
APPROVED
Walter C. Chung
20240117140803
06/25/2024 C12 6 of 15
EXHIBIT 3
RESOLUTION NO. 2024-
BUENA SANITATION DISTRICT BOARD OF DIRECTORS
PAGE 1 EXHIBIT A
1. Account Number Account Description Increase Decrease 5040380.585000 BSD-Internal Charges for IT Services Expense 19,316$ Appropriations are hereby made and estimated revenues are hereby adjusted to fund Tyler SaaS contract. 06/25/2024 C12 7 of 15
1 AMENDMENT
This amendment (“Amendment”) is effective as of the date of signature of the last party to sign as indicated below (“Amendment Effective Date”), by and between Tyler Technologies, Inc. with offices at One Tyler Drive, Yarmouth, Maine 04096 (“Tyler”) and the City of Vista, California, with offices at 200 Civic Center Drive, Vista, California 92084-6275 (“Client”).
WHEREAS, Tyler and Client are parties to an agreement dated May 21, 2024 (“Agreement”); and WHEREAS, Tyler and Client desire to amend the terms of the Agreement as provided herein.
NOW THEREFORE, in consideration of the mutual promises hereinafter contained, Tyler and Client agree as follows:
1.The items set forth in the sales quotation attached as Exhibit 1 to this Amendment are hereby added to the Agreement as of the first day of the first month following the Amendment Effective Date and, notwithstanding anything to the contrary in Exhibit 1, ending coterminous with the SaaS Term as defined in the Agreement. Payment of fees and costs for such items shall conform to the following terms:
a.The annual SaaS fees payable under the Agreement shall be increased in the amount of $322,737 for the Tyler Software added herein. The first year’s annual SaaS Fees shall be invoiced on the first day of the first month following the Amendment Effective Date, prorated for the time period commencing on such date and ending concurrently with the Client’s annual SaaS Term under the Agreement. Subsequent SaaS Fees shall be invoiced in accordance with the terms of the Agreement. b.The fee for “Project Planning Services” is due upon delivery of the Implementation Planning document.
2.The following Third Party Terms are added to Exhibit D of the Agreement:
DocOrigin Terms. Your use of Tyler Forms software and forms is subject to the DocOrigin End User License Agreement available for download here: https://eclipsecorp.us/eula/ . By signing a Tyler Agreement or Order Form including Tyler forms software or forms, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms.
ThinPrint Terms. Your use of Tyler Forms software and forms is subject to the End User License Agreement terms for ThinPrint Engine, ThinPrint License Server, and Connected Gateway found here: https://www.thinprint.com/en/legal-notes/eula/ . By signing a Tyler Agreement or Order Form, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms.
06/25/2024 C12 8 of 15
EXHIBIT 4
2 3.This Amendment shall be governed by and construed in accordance with the terms and conditions of the Agreement.
4.Except as expressly indicated in this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the dates set forth below.
Tyler Technologies, Inc. City of Vista, California
By: By:
Name: Name:
Title: Title:
Date: Date:
APPROVED
Walter C. Chung
20240610152651
06/25/2024 C12 9 of 15
Exhibit 1
1 Exhibit 1
Investment Summary
The following Investment Summary details the software, products, and services to be delivered by us to you under the Agreement. This Investment Summary is effective as of the Effective Date, despite any expiration date in the Investment Summary that may have lapsed as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. In the event of conflict between the Agreement and terms in the Comments section of this Investment Summary, the language in the Agreement will prevail.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
06/25/2024 C12 10 of 15
2023-418918-T7Q3W4 Page 1
Quoted By:Karen Grosset
Quote Expiration:11/25/24
Quote Name:City of Vista - ERP - SaaS
Quote Description: SaaS
Saas Term 1.00
Sales Quotation For:Shipping Address:
City of Vista
200 Civic Center Dr
Vista CA 92084-6275
Tyler SaaS and Related Services
Description Qty Imp. Hours Annual Fee
Financial Management
Accounting/GL/BG/AP 1 0 $ 83,475.00
Capital Assets 1 0 $ 25,253.00
Contract Management 1 0 $ 6,614.00
Project & Grant Accounting 1 0 $ 18,988.00
Purchase Orders 1 0 $ 25,042.00
Human Resources Management
Employee Access Migration 1 0 $ 3,843.00
Employee Expense Reimbursement 1 0 $ 4,743.00
Employee Self Service 1 0 $ 0.00
HR Management 1 0 $ 8,032.00
Payroll 1 0 $ 12,103.00
Revenue Management
Accounts Receivable 1 0 $ 22,954.00
Cashiering 1 0 $ 14,295.00
General Billing 1 0 $ 10,436.00
06/25/2024 C12 11 of 15
2023-418918-T7Q3W4 Page 2
Content Management
Content Manager Core Access 1 0 $ 19,217.00
Data Insights
Role Tailored Dashboard 1 0 $ 10,569.00
Tyler Reporting Services ( Microsoft SQL Server )1 0 $ 22,464.00 Additional
Enterprise ERP Office 1 0 $ 17,216.00
Enterprise Forms Processing (including Common Form Set)1 0 $ 14,493.00 Recurring Services
Data Access Services 1 0 $ 3,000.00
TOTAL 0 $ 322,737.00
Professional Services
Description Quantity Unit Price Ext Discount Extended Price Maintenance Project Planning Services 1 $ 16,137.00 $ 0.00 $ 16,137.00 $ 0.00 Upgrade Assistance: Remote 1 $ 9,600.00 $ 9,600.00 $ 0.00 $ 0.00 TOTAL $ 16,137.00 $ 0.00
Summary One Time Fees Recurring Fees
Total Tyler License Fees $ 0.00 $ 0.00
Total SaaS $ 0.00 $ 322,737.00
Total Tyler Services $ 16,137.00 $ 0.00
Total Third-Party Hardware, Software, Services $ 0.00 $ 0.00 Summary Total $ 16,137.00 $ 322,737.00
Contract Total $ 338,874.00
06/25/2024 C12 12 of 15
2023-418918-T7Q3W4 Page 3
Unless otherwise indicated in the contract or amendment thereto, pricing for optional items will be held For six (6) months from the Quote date or the Effective Date of the Contract, whichever is later.
Customer Approval:Date:
Print Name:P.O.#:
All Primary values quoted in US Dollars
Comments
Client agrees that items in this sales quotation are, upon Client's signature or approval of same, hereby added to the existing agreement ("Agreement") between the parties and subject to its terms. Additionally, payment for said items, as applicable but subject to any listed assumptions herein, shall conform to the following terms:
•License fees for Tyler and third party software are invoiced upon the earlier of (i) deliver of the license key or (ii) when Tyler makes such software available for download by the Client;
•Fees for hardware are invoiced upon delivery;
•Fees for year one of hardware maintenance are invoiced upon delivery of the hardware; •Annual Maintenance and Support fees, SaaS fees, Hosting fees, and Subscription fees are first payable when Tyler makes the software available for download by the Client (for Maintenance) or on the first day of the month following the date this quotation was signed (for SaaS, Hosting, and Subscription), and any such fees are prorated to align with the applicable term under the Agreement, with renewals invoiced annually thereafter in accord with the Agreement.
•Fees for services included in this sales quotation shall be invoiced as indicated below. •Implementation and other professional services fees shall be invoiced as delivered. •Fixed-fee Business Process Consulting services shall be invoiced 50% upon delivery of the Best Practice Recommendations, by module, and 50% upon delivery of custom desktop procedures, by module. •Fixed-fee conversions are invoiced 50% upon initial delivery of the converted data, by conversion module, and 50% upon Client 06/25/2024 C12 13 of 15
2023-418918-T7Q3W4 Page 4
acceptance to load the converted data into Live/Production environment, by conversion module. •Except as otherwise provided, other fixed price services are invoiced upon complete delivery of the service. For the avoidance of doubt, where "Project Planning Services" are provided, payment shall be invoiced upon delivery of the Implementation Planning document.
Dedicated Project Management services, if any, will be invoiced monthly in arrears, beginning on the first day of the month immediately following initiation of project planning.
•If Client has purchased any change management services, those services will be invoiced in accordance with the Agreement. •Notwithstanding anything to the contrary stated above, the following payment terms shall apply to services fees specifically for migrations: Tyler will invoice Client 50% of any Migration Fees listed above upon Client approval of the product suite migration schedule. The remaining 50%, by line item, will be billed upon the go-live of the applicable product suite. Tyler will invoice Client for any Project Management Fees listed above upon the go-live of the first product suite. Unless otherwise indicated on this Sales quotation, annual services will be invoiced in advance, for annual terms commencing on the date this sales quotation is signed by the Client. If listed annual service(s) is an addition to the same service presently existing under the Agreement, the first term of the added annual service will be prorated to expire coterminous with the existing annual term for the service, with renewals to occur as indicated in the Agreement.
•Expenses associated with onsite services are invoiced as incurred.
Tyler's quote contains estimates of the amount of services needed, based on our preliminary understanding of the scope, level of engagement, and timeline as defined in the Statement of Work (SOW) for your project. The actual amount of services required may vary, based on these factors.
Tyler's pricing is based on the scope of proposed products and services contracted from Tyler. Should portions of the scope of products or services be altered by the Client, Tyler reserves the right to adjust prices for the remaining scope accordingly.
Unless otherwise noted, prices submitted in the quote do not include travel expenses incurred in accordance with Tyler's then-current Business Travel Policy.
Tyler's prices do not include applicable local, city or federal sales, use excise, personal property or other similar taxes or duties, which you are responsible for determining and remitting. Installations are completed remotely but can be done onsite upon request at an additional cost.
In the event Client cancels services less than four (4) weeks in advance, Client is liable to Tyler for (i) all non-refundable expenses incurred by Tyler on Client's behalf; and (ii) daily fees associated with the cancelled services if Tyler is unable to re-assign its personnel.
The Implementation Hours included in this quote assume a work split effort of 70% Client and 30% Tyler.
Implementation Hours are scheduled and delivered in four (4) or eight (8) hour increments.
Tyler provides onsite training for a maximum of 12 people per class. In the event that more than 12 users wish to participate in a training class or more than one occurrence of a class is needed, Tyler will either provide additional days at then-current rates for training or Tyler will utilize a 06/25/2024 C12 14 of 15
2023-418918-T7Q3W4 Page 5
Train-the-Trainer approach whereby the client designated attendees of the initial training can thereafter train the remaining users.
The SaaS fees for product that are not named users are based on 100 concurrent users. Should the number of concurrent users be exceeded, Tyler reserves the right to re-negotiate the SaaS fees based upon any resulting changes in the pricing categories.
Financial library includes: 1 A/P check, 1 EFT/ACH, 1 Purchase order, 1099M, 1099INT, 1099S, and 1099G.
General Billing library includes: standard invoice, standard statement, standard general billing receipt and standard miscellaneous receipt.
Project Management includes project planning, kickoff meeting, status calls, task monitoring, verification and transition to support.
Tyler's form library prices are based on the actual form quantities listed, and assume the forms will be provided according to the standard Enterprise ERP form template. Any forms in addition to the quoted amounts and types, including custom forms or forms that otherwise require custom programming, are subject to an additional fee. Please also note that use of the Tyler Forms functionality requires the use of approved printers as well. You may contact Tyler's support team for the most current list of approved printers. Any forms included in this quote are based on the standard form templates provided. Custom forms, additional forms and any custom programming are subject to additional fees not included in this quote. The additional fees would be quoted at the time of request, generally during the implementation of the forms. Please note that the form solution provided requires the use of approved printers. You may contact Tyler's support team for the most current list of approved printers.
Upgrade PM Assistance: Includes 3 days of PM services per month. PM services include delivery and management of upgrade project plan, internal coordination of Tyler resources, and scheduled bi-weekly status calls to review the upgrade project. Upgrade PM Assistance does not include training or access to a Tyler Subject Matter Expert, as such, enrollment in PACE is strongly recommended to complement this service.
Without additional services, clients are responsible for developing and executing upgrade test scenarios as well as conducting internal training for staff. Minimum service duration is 4 months, and clients may choose to extend this service by purchasing additional months (3 days per) at the then-current price.
Your rights, and the rights of any of your end users, to use Tyler’s Access applications are subject to the Terms of Services, available at https://www.tylertech.com/terms/tyler-access-applications-migration-terms . By signing this sales quotation, or accessing, installing, or using any of the Tyler solutions listed at the linked terms, you certify that you have reviewed, understand, and agree to said terms.
Data Access Services
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