REPORT TO THE CITY COUNCIL
FROM: BRYON HORN, Director
Information Services Works Department
BY: DENNIS JONES, Systems & Applications Manager
Information Services Department
SUBJECT
Title
Approve Amendment Five (5) to the Software as a Service Agreement with Tyler Technologies, Inc., dated January 29, 2021, removing product modules, voiding outstanding invoices, and providing a future credit toward SaaS fees or product modules. No additional funding is requested.
Body
RECOMMENDATION
Staff is recommending the City Council approve Amendment 5 to the agreement with Tyler Technologies, Inc., (Tyler) which removes three modules from the original project agreement; human resources, payroll, and utility billing and voids outstanding invoices and provides a credit to be applied to future SaaS fees or additional product modules. No additional funding is requested.
EXECUTIVE SUMMARY
Amendment 5 allows the City to remove product modules for HR, payroll, and utility billing from the agreement that we no longer intend to use. It voids outstanding invoices for HR and Payroll implementation costs that the City incurred previously. It voids outstanding SaaS fees for the HR, Payroll, and Utility Billing modules that had not yet been paid. Lastly, it provides a credit of $150,000 over 3 years toward future SaaS fees or additional product modules.
BACKGROUND
On January 28, 2021, Council approved an agreement with Tyler Technologies. A first amendment was approved on April 29, 2021. On April 27, 2023, Council approved Amendments 2 & 3 to the agreement which reallocated project funds from unused services toward additional implementation hours and travel expenses. On 10/19/2023, Council approved Amendment 4 to the agreement reallocating funds within the project from unspent Software as a Service (SaaS) fees.
Implementation of Munis HR, Payroll, and Utility Billing was a part of the original agreement with Tyler. During the HR implementation phase, significant challenges were encountered in configuring the software to streamline and improve efficiency within the City’s required processes. Internal analysis with the City’s project and executive teams led to a decision to halt further implementation of HR, Payroll, and Utility Billing.
Although not required under the agreement, in the spirit of our partnership, and at the City’s request, Tyler is voiding outstanding invoices for incurred implementation and related SaaS fees for the modules that the City will not be using going forward. This amendment documents dropping the specific product modules and voiding outstanding invoices and SaaS fees.
In addition, Tyler will provide the City $150,000 credit toward future SaaS fees related to Financials or other ERP modules over the next three years.
ENVIRONMENTAL FINDINGS
The approval of this agreement is not a project for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference is not applicable as this is a change to an existing agreement.
FISCAL IMPACT
There is no additional cost as a result of this amendment to the agreement.
Attachments:
Amendment 5
Original Agreement and Amendments 1-4