2023-28 Tyler Techonologies - Amendment 3 - HR & Finance SoftwareMEMORANDUM ta Qa�&a
DATE: August 16, 2023
TO: Monika Radeva, Acting City Manager
FROM: Caludia Martinez, Finance Director
RE: Tyler Technologies Amendment 3 - Finance & HR Software Services FY 2023-28
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authoritv to execute this agreement is based unon:
Jr L Approved by City Council on August 1, 2023 - Consent 4
F-1_ City Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
Department Director's or Manager's signing authority provided under the City's
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
❑_ Bid F-1. RFP F-1 RFQ E_ 3 written informal bids
QSole Source 1:1 Select Source Cooperative Procurement
Reauestina department shall check and attach the items below as auurouriate:
F-1_ Agreement payment will be charged to Account No.:
❑✓J Agreement term: Start Date 09/01 /2023 End Date 08/31 /2028
Amount of Agreement, Amendment, Change Order, etc.: $ 51 1,885
REMINDER; Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
W]
NOTE;
LJ_
Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: On File LF exp 2024 (LM) Date: 8/16/2023
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form
required pursuant FPPC regulation 18701(2)
Business License No. LIC-0110988 Expires: 7/31 /2024
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
700 is
Amendment to Contract ID# 2013-0142
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••'• •• tyler
• technologies
AMENDMENT
This amendment ("Amendment") is effective as of the date of signature of the last party to sign as
indicated below ("Amendment Effective Date"), by and between Tyler Technologies, Inc. with offices at
One Tyler Drive, Yarmouth, Maine 04096 ("Tyler") and the City of La Quinta, California, with offices at
78495 Calle Tampico, La Quinta, California 92253 ("Client").
WHEREAS, Tyler and the Client are parties to an agreement dated July 24, 2013 ("Agreement"); and
WHEREAS, the Term of the Agreement expires August 31, 2023 ("Expiration Date");
THEREFORE, in consideration of the mutual covenants contained herein, Tyler and the Client agree as
follows.
1. The following Tyler Software as a Service (SaaS) are hereby removed from the Agreement as of
August 31, 2023:
• Payroll Electronic Interface
As of such date, Client's right to access the above -listed software is terminated, as are Tyler's
obligations to maintain, support, host and update such software.
Client's annual SaaS fees payment obligation commencing August 31, 2023, is hereby reduced,
and reflected in the renewal amounts listed below with respect to the removal of the above -
listed software.
2. SaaS Term. The term of the Agreement is hereby renewed for one (1) year commencing on the
day following the Expiration Date (the "Renewal Term"). After the completion of the Renewal
Term, the Agreement will renew automatically for additional one (1) year terms at our then -current
SaaS Fees unless terminated in writing by either party at least sixty (60) days prior to the end of the
then -current term. We will provide you notice of any increase in SaaS Fees no less than sixty (60)
days prior to the commencement of the renewal term.
3. SaaS Fees. SaaS Fees shall be prorated from September 1, 2023, through June 30, 2024, in the
amount of $77,558.00 and will be invoiced upon the Amendment Effective Date. Thereafter
SaaS Fees for the Renewal Term (7/1— 6/30 of each year) are $93,070.00. SaaS Fees are invoiced
annually in advance, beginning on the commencement date of the Renewal Term. Subsequent
annual SaaS Fees are invoiced annually in advance, beginning on the anniversary of the initial
invoice date.
4. Users. The SaaS fees may be based on an unlimited number of users.
••., tyler
Amendment to Contract ID# 2013-0142
5. This Amendment shall be governed by and construed in accordance with the terms and
conditions of the Agreement.
6. All other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, persons having been duly authorized and empowered to enter into this
Amendment hereunto executed this Amendment effective as of the date last set forth below.
Tyler Technologies, Inc.
�
By: 1
Name: Rob Kennedy -Jensen
Title: Group General Counsel
Date: August 15, 2023
City of La Quinta, CA
By:
Name: Gil Villalpando
Title: Acting City Manager
Date: August 16, 2023
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
tyler
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CONSENT CALENDAR ITEM NO. 4
City of La Quinta
CITY COUNCIL MEETING: August 1, 2023
STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 3 TO SOFTWARE AS A SERVICE
AGREEMENT WITH TYLER TECHNOLOGIES INC. FOR FINANCE AND HUMAN
RESOURCES SOFTWARE SERVICES
RECOMMENDATION
Approve Amendment No. 3 to Software as a Service Agreement with Tyler
Technologies Inc. for Finance and Human Resources software services.
EXECUTIVE SUMMARY
• In July 2013, the City entered into a five-year agreement with Tyler Technologies
Inc. (Tyler) for finance and human resources software services, which is an
integral part of the City's daily operations and is used by all departments.
• In September 2018, Amendment No. 1 was executed, extending the agreement
for another five-year term through August 31, 2023.
• In October 2021, Amendment No. 2 was executed, for the addition of Tyler
Energov permitting and business license software.
• Amendment No. 3 provides a five-year extension expiring August 31, 2028.
FISCAL IMPACT
Funds for year one, of the proposed five-year term extension, are budgeted in the fiscal
year (FY) 2023/24 Information Technology Fund, Software Licenses (502-0000-60301).
Amendment No. 3 provides a five-year extension at $93,070 annually. The total cost for
the five-year term is estimated to be $465,350; with an additional 10% contingency
bringing the total to $511,885.
BACKGROUND/ANALYSIS
In July 2013, following a thorough Request for Proposals and selection process, Tyler
Technologies cloud based hosted software was selected as the City's finance and
human resources software platform. The 2013 contract term was for five years with an
option to extend for five additional years. In September 2018, Amendment No. 1 was
executed, extending the agreement for another five-year term through August 31, 2023.
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Amendment No. 2, executed in February 2022, added Tyler Energov permitting and
business license software, which was approved in October 2021 following a Request for
Proposals selection process.
The City uses Tyler Incode as its financial software to process accounts payables,
accounts receivables, purchase orders, general ledger accounting, payroll, capital
project accounting, fixed assets, budgeting, and bank/investment reconciliations. The
human resources department utilizes the system to onboard and track employment,
including benefits. The Design and Development department will use the system for
permitting, business licensing, GIS integration, and economic data reporting.
The initial five-year agreement expires in August 2023. Staff has reviewed the contract
and conducted an internal assessment and determined that the Payroll Electronic
Interface will be removed as the City currently does not have the need for a payroll
electronic time clock module.
Amendment No. 3 provides a five-year extension for an estimated annual cost of
$93,070, including a 10% contingency to account for potential annual increases or
should the City decide to add additional services. The term of the amendment
commences on September 1, 2023, and expires on August 31, 2028, automatically
renewing for additional one-year terms at current fees, unless terminated in writing. The
contract can be terminated in writing at any time without a termination penalty
contingent upon a 60-day written notice.
ALTERNATIVES
Council may elect not to approve Amendment No. 3. This is not recommended as this
software is an integral part of the City's daily operations and is used by all departments.
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, City Manager
Attachment 1: Tyler Technologies Amendment to Software as a Service Agreement
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