SUBJECT/RECOMMENDATION:
Title
Approve Addendum to License and Services Agreements to Tyler Technologies, Inc. of Yarmouth, ME, for an additional amount not to exceed $443,855.44 for human capital management software licensing and professional services, for a new project total of $2,538,394.44, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Tyler’s Munis software was chosen to replace the City’s previous financial management software, Aptean’s Ross, after a thorough selection process which began in October 2015 and ended in March 2017. The agreement with Tyler Technologies was approved by Council on March 16th, 2017, and the implementation of the financial modules, or phase one, kicked off in May 2017.
In May 2018, the City went live on the following modules and services: accounting, general ledger, budget, accounts payable, cash management, contract management, fixed assets, project and grant accounting, procurement, accounts receivable, general billing, forms processing, content management, analytic and reporting, systems management, disaster recovery, and change management.
The following modules and services were listed as optional in the initial agreement and will be implemented as phase two of the project: employee payroll, pension payroll, employee self-service, and portions of human resources and talent management, recruiting.
Since 1998, the City has used Oracle’s PeopleSoft software for human resources management, payroll and pension payments, and related tax processing and reporting. The City can expect to realize several benefits in the switch from PeopleSoft to Munis including: increased efficiency with integrated financial and human resources payroll software and better ability to train and cross-train employees in one primary system instead of two.
The implementation for phase two, consisting of the above-listed elements, is projected to take 12 to 18 months.
The requested not-to-exceed amount for phase two includes all implementation expenses for licensing, professional services, travel, hardware, and a project contingency of 25% ($359,040.35 and a contingency of $84,815.09).
The Total-Cost-of-Ownership (TCO) for the first 5 years of Phase II is anticipated to be $72,914 for software maintenance. The TCO for the first 5 years will be $932,334.00 for all Phases of the Munis project. The ongoing cost of maintenance will be covered within the IT operating budget and a separate agenda item (PO) will be approved for the 5-year maintenance expenses.
APPROPRIATION CODE AND AMOUNT:
Funds are budgeted and available in the Finance CIP project cost codes 3557355-564300-94828 (computer software >$5,000) and 3557355-530100-94828 (professional services) for planned expenditures in the current fiscal year. Any implementation expenditures for future fiscal years will be budgeted in the same project. Maintenance and hardware expenses in out years will be budgeted in the IT Admin Services budget.