HomeMy WebLinkAboutAgenda Report - August 7, 2019 C-09AGENDA ITEM c-q
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AGENDA TITLE:
MEETING DATE: August 7,2019
PREPARED BY: Deputy City Manager
Adopt Resolution Ratifying Expenditures to Date and Approving the City Manager's
Decision to Enter into an Agreement for Enterprise Resource Program Software as
a Service from Tyler Technologies, lnc., of Plano, Texas in the Amount Not to
Exceed $699,584 Over the Three-Year Term With Automatic Annual Renewals
Thereafter
RECOMMENDED ACTION Adopt resolution ratifying expenditures to date and approving the
City Manager's decision to enter into an agreement for enterprise
resource program (ERP) software as a service (SaaS) from Tyler
Technologies, lnc., of Plano, Texas in the amount not to exceed
$699,584 over the three- year term with automatic annual renewals
thereafter.
BACKGROUND INFORMATION: ln August 2013, the City of Lodi purchased Tyler Technologies
MUNIS software as its primary Enterprise Resource Program to
conduct dayto-day operations. The City has been utilizing MUNIS
ever since. Tlre original decision when purchasing MUNIS was to operate the software on premise with
City lT staff as support. ln light of recent events in April and May of 2019, the City Manager authorized
implementation of a SaaS solution that the City and Tyler Technologies have been mutually working to
fully implement ever since.
By moving to SaaS, the City leverages the disaster recovery capabilities of Tyler and the advanced cyber
security setup already in place at Tyler. The disaster recovery services were tested in April as the City
had to rebuild its locally hosted ERP solution in a cloud based (SaaS) environment. Tyler's disaster
recovery unit worked with City lT staff to restore critical services almost immediately and peripheral
services in very short time. Had the City been operating under a SaaS model prior to the network
incident, ERP functionality would not have been lost meaning a substantially reduced impact to City
operations and public service delivery. Recent network incidents have forced staff to revisit the
ownership model for software. Full local redundancy and backup capability is cost prohibitive.
ln addition to greater frontline security and enhanced disaster recovery features the City will be better
positioned to leverage all features of the ERP. The City initially purchased numerous modules from Tyler
but activated those modules gradually as lT staff resources were available to work with operating
departments on implementation. Given limited lT resources, some modules were never implemented
that can have substantial operational benefit. Under the ownership model in order to implement a
module, an lT staff person and a department must become an expert on the features in module. Tyler
has multiple implementation and support specialists already trained on each of the complex and nuanced
modules offered. Staff anticipates gaining some operational efficiencies City wide by launching additional
APPROVED
Stephen uer, City Manager
Adopt resolution authorizing City Manager to purchase enterprise resource program (ERP) software as a service (SaaS) from
Tyler Technologies, lnc., of Plano, TX in the amount not to exceed $685,009 over the three year term with automatic annual
renewals thereafter
July 17,2019
Page 2 o1 2
modules. ln turn, lT staff will gain capacity as existing resources dedicated to Tyler can be repurposed to
other services.
An analysis of SaaS costs versus returning to a locally hosted option are shown below. ln summary,
even with additionalfeatures, the total cost for SaaS averages approximately $90,000 more each year
than the locally hosted option over the initial three-year term. Of the difference, 911,775 annually is for
additional training available to all departments on the use of MUNIS that was not purchased.
FiscalYear Vendor Hosted On Premise Difference
2019-20 $245,578 $141,549 $97.229
2020-21 $238,778 $148,628 $90,1 50
2021-22 $238,778 $156,060 $82,718
Total Over Three Years $723.134 $446,237 $276,897
FISCAL IMPACT The annual Munis software maintenance cost is included in the FY
2019120 Annual Budget within the General Fund and as part of the
Cost of Services transfers from effected non-General Fund
departments. Subsequent fiscal year budgets will also include the
above stated costs.
FUNDING AVAILABLE FY 2019/20 lnformation Technology Operating Budget
10020400.72499
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Andrew Keys
Deputy City Manager/lnternal Services Director
RESOLUTION NO. 2019-155
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
THE CITY MANAGER'S DECISION TO MOVE TO A SOFTWARE
AS A SERVICE RELATIONSHIP FOR UTILIZATION OF TYLER'S
MUNIS SOFTWARE; RATIFYING EXPENDITURES TO DATE;
AND FURTHER AUTHOR¡ZING THE CITY MANAGER TO
EXECUTE A THREE.YEAR SOFTWARE AS A SERVICE
AGREEMENT WITH TYLER TECHNOLOGIES, INC., OF PLANO,
TEXAS, WITH AUTOMATIC ANNUAL RENEWALS
WHEREAS, a modern, secure and sophisticated Enterprise Resource Program (ERP) is
essential to conducting day-to-day City business and providing adequate control over financial
and other information; and
WHEREAS, full local redundancy and backup capabilities are cost prohibitive; and
WHEREAS, by adopting a Software as a Service (SaaS) model, the City leverages
expertise in cyber security and disaster recovery capabilities; and
WHEREAS, SaaS will better position the City to utilize the full breadth of services and
modules offered with the ERP package; and
WHEREAS, it is in the City's best interest to continue the SaaS relationship with
Tyler Technologies, lnc., of Plano, Texas, as approved by the City Manager in May 2019.
NOW, THEREFORE BE lT RESOLVED that the Lodi City Council does hereby:
1. Approve the City Manager's decision to move to a SaaS relationship for utilization of
Tyler's MUNIS software; and
2. Ratify all expenditures to date related to the transition to a SaaS relationship with
Tyler for utilization of MUNIS software; and
3. Authorize the City Manager to execute a contract with Tyler Technologies, lnc., of
Plano, Texas, in an amount not to exceed $699,584 for three years, with automatic
annual renewals thereafter.
Dated: August 7,2019
I hereby certify that Resolution No. 2019-155 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held August7,2019, by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Kuehne, Nakanishi, and Mayor Chandler
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Mounce
ABSTAIN: COUNCIL MEMBERS - None
NNI
201 9-1 55
Clerk
. FERRAIOLO