Staff Report.TylerContract
PREPARED BY: Gitta Ungvari
Finance and Budget Manager
Reviewed by: Assistant Town Manager, Finance Director, 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: 6/21/2022 ITEM NO: 14
DATE: June 10, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Five-Year Agreement with Tyler
Technologies to Provide Enterprise Resource Planning (ERP) Software
Implementation and Ongoing Support for the Town of Los Gatos for
$1,147,328 plus a 10% contingency for a Total Agreement Amount Not to
Exceed $1,262,061
RECOMMENDATION:
Staff recommends that the Council authorize the Town Manager to execute a Five-Year
Agreement with Tyler Technologies to provide enterprise resource planning (ERP) software
implementation and ongoing support for the Town of Los Gatos for $1,147,328 plus a 10%
contingency for a total agreement amount not to exceed $1,262,061.
BACKGROUND:
The current ERP system was implemented in 2008 and has become outdated. Staff determined
that a modern system was required to meet the demands for advanced functionalities,
improved efficiencies, fiscal transparency, better customer service, and enhanced systems
integration all in a single platform. Staff initially engaged with the current software provider for
potential upgrade of the existing software. The current software provider CentralSquare
(formerly Sungard, Pentamation) was not able to provide an update for the current system due
to organizational restructuring from multiple acquisitions.
DISCUSSION:
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.
PAGE 2 OF 2 SUBJECT: Authorize the Town Manager to Execute an Agreement with Tyler Technologies to Provide ERP Software Implementation and Ongoing Maintenance Services for the Town of Los Gatos with Tyler Technologies DATE: June 21, 2022
DISCUSSION (continued):
The RFP was listed on the Town website and was sent to vendors who had reached out to staff
prior to the release of the RFP. These companies included WorkDay, Oracle, Tyler
Technologies, OpenGov, and CentralSquare.
The Town received only one proposal from Tyler Technologies. During the initial meetings with
WorkDay and Oracle, both companies commented that their solution was geared towards
significantly larger organizations. OpenGov only provided limited services and our current
provider did not submit a proposal with its most current software package.
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. 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.
The proposed ERP system would include the implementation of the following functional areas.
• Financial Management
• Human Capital Management
• Executive Time and Attendance and Advanced Scheduling
• Business Licenses
The various modules for each functional area will be implemented through a phased approach
spanning a two-year period as detailed in the Statement of Work (Attachment 1).
PAGE 3 OF 2 SUBJECT: Authorize the Town Manager to Execute an Agreement with Tyler Technologies to Provide ERP Software Implementation and Ongoing Maintenance Services for the Town of Los Gatos with Tyler Technologies DATE: June 21, 2022
DISCUSSION (continued):
The proposed ERP system will be SaaS based solution and meets all the following project
objectives:
• Consolidate information, link processes and functions, and eliminate separate
Departmental spreadsheets/Excel databases in favor of a single system that
integrates the Town’s financial and non-financial applications through a common
database;
• Streamline business processes to take advantage of best practices through
automation, integration, and enhanced workflows;
• Provide a user-friendly and intuitive user interface to promote system use and
productivity;
• Eliminate the need for redundant data entry;
• Eliminate the need for manual input when preparing the annual budget and financial
statements;
• Improve and/or provide necessary reports and reporting capabilities, and access to
data through inquiry or drilldown capabilities; and
• Provide interface capabilities with third-party systems.
Tyler Technologies currently has over 2,000 customers nationwide and over 150 in California.
Forty former CentralSquare customers have migrated over successfully to Tyler’s Munis
solution in California (Attachment 2). Staff also performed reference checks with other
surrounding municipalities who currently utilize the Tyler Munis solution and received positive
feedback. Based on staff’s overall assessment, it was decided to enter negotiations with Tyler
Technologies for the draft contract.
It should be noted that during contract discussions, there was one area of disagreement
between the parties. Tyler has proposed to indemnify the Town for claims “arising out of its
negligence or willful misconduct.” Staff did ask Tyler for a more general indemnification for any
personal injury or property damage claims arising out of its performance – regardless of
whether or not Tyler was negligent or engaged in willful misconduct. Tyler declined to make
that change, citing its needs to be consistent with other city contracts. While staff would have
preferred the Town’s language, given the totality of the product staff is recommending that the
Town accept Tyler’s proposed indemnification language.
PAGE 4 OF 2 SUBJECT: Authorize the Town Manager to Execute an Agreement with Tyler Technologies to Provide ERP Software Implementation and Ongoing Maintenance Services for the Town of Los Gatos with Tyler Technologies DATE: June 21, 2022
CONCLUSION:
Authorize the Town Manager to execute a five-year agreement with Tyler Technologies to
provide ERP software implementation and ongoing support services for the Town of Los Gatos
for $1,147,328 plus a 10% contingency for a total agreement amount not to exceed $1,262,061.
COORDINATION:
The preparation of the RFP, review of the proposal, and negotiation of the contract was
coordinated between the Town Manager’s Office (including IT), Finance Department, Human
Resources Department, and the Town Attorney’s Office.
FISCAL IMPACT:
Sufficient funds for the implementation including the first two years of the annual SaaS fees
and augmented staff cost are incorporated into the Town’s Proposed FY 2022/23 – FY 2027/28
Capital Program Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Agreement with Tyler Technologies to provide ERP Implementation and Ongoing
Maintenance and Support Services
2. Account Success Replacing CentralSquare.pdf