Fiscal Note
The proposed resolution authorizes the execution of a contract with Tyler Technologies, Inc. to move the City's ERP system (Munis) to the cloud and to continue support and maintenance of the system for one year. The contract also includes four one-year renewals after the initial term. Anticipated start date of the contract is April 1, 2026. The initial contract term cost ($1,038,072) and professional services costs related to the migration of the system to the cloud ($33,000) are available in Information Technology's 2026 Adopted Capital Budget (Enterprise Business Systems, program #12418). Costs in subsequent years will be included in future budgets. No additional appropriation required.
Title
Authorizing a non-competitive contract between the City of Madison and Tyler Technologies, Inc. to execute the contracts for cloud licensing, professional services to execute the migration of the City’s ERP Software system, MUNIS, to the cloud and continued support and maintenance services for one year, with 4 one-year renewals.
Body
WHEREAS, Tyler Technologies, Inc. is the provider of the City’s Enterprise Financial and Business Processing System, MUNIS, acquired in 2010 after a competitive selection process, and includes the following software modules currently in-use: General Ledger, Accounts Payable, Accounts Receivable, General Billing and Purchasing, Payroll, HR Management, Capital and Operating Budgeting, Content Management, Utility Billing, Cashiering, Role Dashboards and Audit Trails, Treasury Management, Employee and Vendor Self Service; and
WHEREAS, as a next step in the City’s ongoing modernization of technology business solutions, moving to Tyler’s Cloud platform will provide benefits of reduced hardware and infrastructure maintenance, ensure the City is on the most current releases with less interruption of services, increase system security and improve access to staff working at job sites; and
WHEREAS, as with most software of this nature, the manufacturer, Tyler Technologies, Inc. is the sole source provider of support, maintenance and professional services of this platform. The initial term cost is $1,038,072, with future years at a negotiated cost not to exceed a 5.5% yearly increase, and professional services for migrating to the cloud at a one-time cost of $33,000; and
WHEREAS, under sec. 4.26(4)(b), of the Madison General Ordinances if the aggregate amount of the fee for services exceeds $75,000 and the contract was not subject to a competitive bidding process, the contract shall meet one of the other requirements of sec. 4.26(4)(a) and be approved by the Common Council; and
WHEREAS, the Tyler Technologies Cloud Platform has been in use since 2015, an RFP will not be issued to renew the software and maintenance because only Tyler Technologies, Inc. can support and maintain their proprietary software. Therefore, the proposed contract with Tyler Technologies, Inc. meets the exception to the bidding process in section 4.26(4)(a)2 which states "The service required is available from only one person or firm”;
NOW, THEREFORE BE IT RESOLVED, that the Mayor and City Clerk are authorized to execute the initial one-year contract with four, one-year renewals for the City’s Enterprise Financial and Business Processing System, MUNIS, cloud contract and professional services contract to migrate to the cloud with Tyler Technologies, Inc.; and
BE IT FURTHER RESOLVED, that the Finance Director or designee is authorized to execute system upgrades, module additions and maintenance renewals or contracts with Tyler Technologies, Inc., on a recurring basis for the useful life of the software pending availability of funds in the budget and in a form approved by the City Attorney.