Staff Report.TylerContract with attachments
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Assistant Town Manager, Town Attorney, and Information Technology Manager
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/06/2022 ITEM NO: 6
DATE: November 22, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Following Actions Related to the Tyler Technologies Contract:
a. Authorize the Town Manager to Execute a Second Amendment to the
Agreement with Tyler Technologies to Increase Compensation by $33,000
for a Total Contract Amount Not to Exceed $1,295,061; and
b. Authorize an Expenditure Budget Adjustment in the Amount of $33,000
from Available Information Technology Fund
RECOMMENDATION:
Authorize the Following Actions Related to the Tyler Technologies Contract:
a. Authorize the Town Manager to execute a second amendment to the agreement with Tyler
Technologies to increase compensation by $33,000 for a total contract amount not to
exceed $1,295,061; and
b. Authorize an expenditure budget adjustment in the amount of $33,000 from available
Information Technology Fund.
BACKGROUND:
The Town of Los Gatos issued a Request for Proposal (RFP) to solicit responses from qualified
firms offering proven, integrated solutions to replace the Town’s current CentralSquare
FinancePlus Enterprise Resource Planning system, specifically in the areas of Finance, Human
Resources, Payroll, and Miscellaneous Billing.
After the RFP submittal, Tyler Technologies provided a demonstration of their Tyler Munis
system both to the executive management staff and to particular Town staff power users. The
response to the RFP was reviewed by an inter-disciplinary Town team, evaluating the submittal
based on enhanced reporting capabilities, streamlined process workflows, and self-service
online services for residents, customers, and vendors.
PAGE 2 OF 3 SUBJECT: Authorize Actions Related to the Tyler Technologies Contract DATE: November 22, 2022
BACKGROUND (cont’d):
The reviewers also assessed the proposer’s demonstration of organizational, functional, and
technical capabilities, as well as the experience, expertise, and qualifications necessary to
provide a fully integrated and proven ERP solution to include both implementation and ongoing
maintenance and support. Based on staff’s overall assessment, it was decided to enter into an
agreement with Tyler Technologies. Council approved this agreement at their June 21,2022
Meeting.
A first amendment was executed on August 17, 2022 to add language to the insurance section
of the agreement at the Town Attorney’s request.
DISCUSSION:
Staff has been working with Tyler to start the implementation and is in the process of
completing various analysis on the current and future state of the new enterprise resource
planning system. During these early stages of implementation analysis, staff become aware
that our original quote only included limited summary data conversion from the legacy system.
Staff is requesting converting five-years of detailed general ledger and five-years of budget
historical conversion with this agreement amendment (Attachment 1). Typically, governments
convert none or very limited data during the new system implementation and use their legacy
system to obtain historical data. Due to significant instability of the existing system, staff
recommends that five years of historical data conversion is necessary to secure access to legacy
data, streamline the reporting process, and increase Town-wide efficiencies.
CONCLUSION:
Authorize the Following Actions Related to the Tyler Technologies Contract:
a. Authorize the Town Manager to Execute a Second Amendment to the Agreement with Tyler
Technologies to Increase Compensation by $33,000 for a Total Contract Amount Not to
Exceed $1,295,061; and
b. Authorize an Expenditure Budget Adjustment in the Amount of $33,000 from Available
Information Technology Fund.
FISCAL IMPACT:
Sufficient funds for this amendment are available in the Information Technology Fund. For this
reason, the Council is also being asked to approve an expenditure budget adjustment in the
amount of $33,000 to the Capital Program Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PAGE 3 OF 3 SUBJECT: Authorize Actions Related to the Tyler Technologies Contract DATE: November 22, 2022
Attachment:
1. 2nd Amendment to Tyler Technologies Agreement (Exhibit A Tyler Quote)
This Page Intentionally Left Blank
1 of
Tyler Technologies 2nd Amendment
AMENDMENT TO AGREEMENT
This AMENDMENT TO AGREEMENT is dated for identification this 6th day of December 2022 and amends that certain agreement for enterprise resource planning services dated June 30, 2022, made by and between the Town of Los Gatos, ("Town,") and Tyler Technologies, Inc.(“Consultant.”)
RECITALS
A.Town and Consultant entered into an enterprise resource planning Agreement on June 30,
2022, (“Agreement”), a copy of which is attached hereto and incorporated by reference as
Attachment 1 to this Amendment.
B.Town and Consultant amended the Agreement on August 16, 2022, a copy of which is
attached hereto and incorporated by reference as Attachment 2 to this Second
Amendment.
AMENDMENT
1.Compensation is being increased by $33,000 for a total contract amount not to exceed
$1,295,061.
2.All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.
Town of Los Gatos Approved as to Consent:
By: _______________________________ By:______________________________
Laurel Prevetti, Town Manager Robert Kennedy-Jensen
Group General Counsel
Tyler Technologies, Inc.
Department Approval:
_______________________________________
Gitta Ungvari
Finance Director
Approved as to Form: Attest:
______________________________ ______________________________
Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk
ATTACHMENT 1
2022-369029-G0F3B3 CONFIDENTIAL Page 1
Quoted By:Jennifer Wahlbrink
Quote Expiration:04/26/23
Quote Name:Town of Los Gatos-EERP-Detailed
GL History Conversion
Quote Description: 11-17-22 Town of Los Gatos, CA
v.3 5yr GL History Detail & BG
Hist. Conv.
Sales Quotation For:
Town of Los Gatos
110 E Main St Lbby
Los Gatos CA 95030-6945
Phone: +1 (408) 354-6828
Professional Services
Description Quantity Unit Price Ext Discount
Extended
Price Maintenance
Conversions – See Detailed Breakdown Below $ 33,000.00 $ 0.00
TOTAL $ 33,000.00 $ 0.00
Summary One Time Fees Recurring Fees
Total Tyler License Fees $ 0.00 $ 0.00
Total SaaS $ 0.00 $ 0.00
EXHIBIT A
2022-369029-G0F3B3 CONFIDENTIAL Page 2
Total Tyler Services $ 33,000.00 $ 0.00
Total Third-Party Hardware, Software, Services $ 0.00 $ 0.00
Summary Total $ 33,000.00 $ 0.00
Contract Total $ 33,000.00
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
Detailed Breakdown of Conversions (Included in Summary Total)
Description Qty Unit Price Unit Discount Extended Price
Accounting
AC - Budgets up to 3 years 2 $ 1,500.00 $ 0.00 $ 3,000.00
Professional Services
5yr Detailed GL History Conversion 1 $ 30,000.00 $ 0.00 $ 30,000.00
TOTAL $ 33,000.00
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")
2022-369029-G0F3B3 CONFIDENTIAL Page 3
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 option, and 50% upon Client
acceptance to load the converted data into Live/Production environment, by conversion option. Where conversions are quoted as
estimated, Tyler will invoice Client the actual services delivered on a time and materials basis.
•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
2022-369029-G0F3B3 CONFIDENTIAL Page 4
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 two (2) 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
Train-the-Trainer approach whereby the client designated attendees of the initial training can thereafter train the remaining users.