Title
MOTION TO RATIFY THE CITY MANAGER'S APPROVAL OF AMENDMENT # 9 THROUGH 13 WITH TYLER TECHNOLOGIES, INC. FOR THE ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM, INCREASING THE COST OF THE AGREEMENT BY $454,900 FOR ADDITIONAL SERVICES AND TO ALSO INCREASE THE ANNUAL SAAS LICENSING FEES BY $4,881.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines a Request for Proposal as “A written solicitation for competitive sealed proposals with the title, date and hour of the public opening designated. A request for proposals shall include, but is not limited to, general information, functional or general specifications, a statement of work, proposal instruction and evaluation criteria. All requests for proposals shall state the relative importance of price and any other evaluation criteria. The city may engage in competitive negotiations with responsible proposers determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of and conformance to the solicitation requirements. Proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining the best and final offer.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(A) states, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement Officer to cost more than $25,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states, "All sealed competitive solicitations as defined in §35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
- Chapter 35.28 of the City’s Code of Ordinances is titled “CHANGE ORDERS.”
- Chapter 35.28(B) states that “Notwithstanding the provisions of division (A), the City Manager is not authorized to approve a change order without authorization of the City Commission where the initial purchase required the City Commission’s approval and where the sum of all change orders issued under the contract exceeds 5% of the original contract amount or $25,000.
- Pursuant to Section 35.29(F) "City Commission notification" of the City's Code of Ordinances, "The City Manager, or his or her designee, shall notify the Commission, in writing, at least three months in advance of the expiration, renewal, automatic renewal or extension date, and shall provide a copy of the contract or agreement and a vendor performance report card for the contract or agreement to the City Commission."
SUMMARY EXPLANATION AND BACKGROUND:
1. On June 6, 2018, the City Commission authorized the advertisement of TS-17-04-B "ERP System Software and Implementation", which was advertised on June 7, 2018.
2. The purpose of this solicitation was to provide an innovative and effective solution to meet the City’s needs for an Enterprise Resource Planning (ERP) system.
3. On January 16, 2019, the City Commission approved the findings and recommendation of the evaluation committee and awarded the Enterprise Resource Planning (ERP) portion of RFP # TS-17-04-B "ERP System Software and Implementation" to Tyler Technologies, Inc., and directed the City Manager to negotiate a contract for services.
4. On April 17, 2019, pursuant to the award of TS-17-04-B "ERP System Software and Implementation," the City Commission approved the negotiated contract with Tyler Technologies, Inc., for an initial three year period from May 1, 2019 through April 30, 2022, for an amount not to exceed $7,260,596:
|
Contract |
SaaS |
One-Time |
Total |
|
Year |
Licensing Fees |
Estimated Fees |
Estimated Fees |
|
1 |
$ 899,389.00 |
$ 1,784,464.00 |
$ 2,683,853.00 |
|
2 |
$ 1,279,181.00 |
$ 828,788.00 |
$ 2,107,969.00 |
|
3 |
$ 1,367,956.00 |
$ 1,100,818.00 |
$ 2,468,774.00 |
|
Total |
$ 3,546,526.00 |
$ 3,714,070.00 |
$ 7,260,596.00 |
The agreement automatically renews for additional one year renewal terms at the then-current SaaS Fees unless terminated in writing by either party at least sixty days prior to the end of the then-current renewal term.
5. In addition to the SaaS Licensing Fees, the agreement also addressed the following one time fees for implementation and other services:
|
|
One-Time |
|
Description |
Estimated Fees |
|
Implementation / Other Services |
$ 2,639,400 |
|
Conversion Costs |
$ 258,250 |
|
3rd Party Hardware, Software and Services |
$ 14,630 |
|
Travel Expenses |
$ 801,790 |
|
Total Estimated One Time Fees |
$ 3,714,070 |
The amounts above were estimated fees and are billed based on actual costs incurred. In the event that the actual costs exceed the estimated amounts, a change order would need to be processed.
6. The agreement included the five following phases with the estimated implementation timelines:
Phase 1 - Financials (May 2019 - May 2020)
Phase 2 - Utility Billing & Collections (August 2019 - August 2020)
Phase 3 - Human Capital Management and Payroll (May 2020 - April 2021)
Phase 4 - Energov Community Development (May 2020 - May 2021)
Phase 5 - Enterprise Asset Management (February 2021 - January 2022)
7. On March 2, 2022, the City Commission approved amendment # 8 with Tyler Technologies, Inc. for the Enterprise Resource Planning (ERP) System, increasing the current term of the agreement by $115,323.33 for the additional implementation services needed and to approve the department’s recommendation to renew the agreement for an additional one year period. Below is a summary of the previous change orders up to amendment # 8 and the adjustments to the Annual SaaS Licensing Fees:
|
|
|
|
|
|
|
|
SaaS Licensing |
One-Time |
Total |
Annual SaaS |
|
Description |
Fees (Year 1-3) |
Estimated Fees |
Estimated Fees |
Licensing Fees |
|
Original Agreement |
$3,546,526.00 |
$3,714,070.00 |
$7,260,596.00 |
$1,367,956.00 |
|
Amendment 1 |
N/A |
($500.00) |
($500.00) |
N/A |
|
Amendment 2 |
($44,992.50) |
N/A |
($44,992.50) |
($17,997.00) |
|
Amendment 3 |
N/A |
($19,100.00) |
($19,100.00) |
N/A |
|
Positive Pay Change |
N/A |
$10,000.00 |
$10,000.00 |
N/A |
|
Amendment 4 |
$40,000.00 |
$5,300.00 |
$45,300.00 |
$40,000.00 |
|
Amendment 5 |
N/A |
N/A |
N/A |
N/A |
|
Amendment 6 |
N/A |
N/A |
N/A |
N/A |
|
Amendment 7 |
N/A |
N/A |
N/A |
($33,217.00) |
|
Amendment 8 |
$6,123.33 |
$109,200.00 |
$115,323.33 |
$73,480.00 |
|
Total |
$3,547,656.83 |
$3,818,970.00 |
$7,366,626.83 |
$1,430,222.00 |
|
|
|
|
|
|
|
Total Change |
$1,130.83 |
$104,900.00 |
$106,030.83 |
$62,266.00 |
8. Since Amendment # 8, the City Manager has approved the following change orders/amendments:
|
|
|
|
|
|
|
|
|
SaaS Licensing |
One-Time |
Total |
SaaS Licensing |
Annual SaaS |
|
Description |
Fees (Year 1-3) |
Estimated Fees |
Estimated Fees |
Fees (Year 4) |
Licensing Fees |
|
Agmt. as of Amnd. 8 |
$3,547,656.83 |
$3,818,970.00 |
$7,366,626.83 |
$1,430,222.00 |
$1,430,222.00 |
|
Amendment 9 |
N/A |
$24,550.00 |
$24,550.00 |
N/A |
N/A |
|
Amendment 10 |
N/A |
N/A |
N/A |
($19,000.00) |
($19,000.00) |
|
Amendment 11 |
N/A |
N/A |
N/A |
$11,940.50 |
$23,881.00 |
|
Amendment 12 |
N/A |
$208,600.00 |
$208,600.00 |
N/A |
N/A |
|
Amendment 13 |
N/A |
$221,750.00 |
$221,750.00 |
N/A |
N/A |
|
Total |
$3,547,656.83 |
$4,273,870.00 |
$7,821,526.83 |
$1,423,162.50 |
$1,435,103.00 |
|
|
|
|
|
|
|
|
Total Change |
N/A |
$454,900.00 |
$454,900.00 |
($7,059.50) |
$4,881.00 |
Details relating to the Change Orders/Amendments listed in the table above are listed below.
9. On July 12, 2022, the City and Tyler Technologies approved the 9th Change Order/Amendment for Phase 3 "Human Capital Management and Payroll" to extend the go-live date for Phase 3 to October 1, 2022, which decreased the cost of the contract by $146,900 for one-time implementation costs that were no longer anticipated to be utilized, and also increased the cost of the contract for additional days of implementation services by $171,450, for a net increase to the contract in the amount of $24,550.
10. On July 12, 2022, the City and Tyler Technologies also approved the 10th Change Order/Amendment which removed "EnerGov Interactive Voice Response (IVR)" from the agreement, reducing the annual SaaS Licensing Fees by $19,000, commencing on May 1, 2022.
11. On September 27, 2022, the City approved Sales Quote #2022-356630-G8P9B5 to add 13 additional licenses for EnerGov, which increases the annual SaaS Licensing Fees by $23,881. The prorated increase for the period through April 30th, 2022 would be $11,940.50. On July 5, 2023, the City and Tyler Technologies approved the 11th Change Order/Amendment, memorializing the approval of Sales Quote #2022-356630-G8P9B5.
12. On November 17, 2022, the City and Tyler Technologies approved the 12th Change Order/Amendment for Phase 3 "Human Capital Management and Payroll" to extend the go-live date for Phase 3 to December 16, 2022, which increased the cost of the contract by $7,000 for document conversion services, and also increased the cost of the contract for additional days of implementation services and travel costs by $201,600, for a net increase to the contract in the amount of $208,600.
13. On May 3, 2023, the City and Tyler Technologies approved the 13th Change Order/Amendment for Phase 3 "Human Capital Management and Payroll" to extend the go-live date for Phase 3 to June 31, 2023, which provided for a credit in the amount of $15,000 for implementation services and also increased the cost of the contract for additional days of implementation services and travel costs by $236,750, for a net increase to the contract in the amount of $221,750.
14. Recommend City Commission to ratify the City Manager's approval of Amendment # 9 through 13 with Tyler Technologies, Inc. for the Enterprise Resource Planning (ERP) System, increasing the cost of the agreement by $454,900 for additional implementation services and to also increase the annual SaaS Licensing Fees by $4,881.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $454,900 for the additional implementation services and $4,881 increase to the annual SaaS Licensing Fees.
b) Amount budgeted for this item in Account No: $380,000 in account 320-513-2002-668010-0000-000-0000-00651 (ERP) and $74,900 in account 001-513-2002-664051-0000-000-0000- (Software) will be available after the carry over of funds from FY 2022-23.
c) Source of funding for difference, if not fully budgeted: Not applicable.
d) 5 year projection of the operational cost of the project: The change orders listed in this agenda item include the go-live date for the phase 3 (the final phase of the project) was June 31, 2023 and the implementation services covers on-site and hybrid post go-live support through August 2023, which shall complete the implementation portion of this agreement. The annual SaaS Licensing Fee for the renewal period of May 1, 2023 through April 30, 2024 would be $1,435,103. The agreement will renew automatically for additional one year renewal terms at the then-current SaaS Fees unless terminated in writing by either party at least sixty days prior to the end of the then-current renewal term.
e) Detail of additional staff requirements: Not applicable at this time.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.