Marc Mondell, Assistant City Manager

Brian Graves, IT Manager

Adopt a resolution authorizing the City Manager to execute a maintenance agreement with Tyler Technologies, Inc.

The City of Rocklin (City) has contracted with Tyler Technologies, Inc. since December of 2004 to provide and maintain the City’s Finance/Payroll/Human Resources software system (Munis). Munis is a vital component of the City’s operations providing staff with the ability to manage the citywide budget, track expenditures and revenues, pay and create invoices, process payroll and payroll-related items for all employees, and produce financial and operational reports. The annual maintenance agreement is due for renewal and is necessary to obtain support and keep Munis functioning.

Tyler Technologies has built in a 5% annual fee increase to their maintenance program. The City has negotiated to have this fee increase waived for the first two years of the 5 year agreement.

This agreement locks in pricing for the maintenance program, but still allows the City to terminate the agreement with or without cause before the 5 year term expires. As stated in Section G item 4, “Either party may terminate this Agreement for any reason by providing the other party with written notice of termination by January 15 of any contract year.”  Since the City pays the annual maintenance fee up front, the City will be refunded pro-rated maintenance fees if service is canceled mid-year for cause.

The total cost of this software maintenance agreement for the 5 year term will not exceed $443,000.   

A breakdown of the software maintenance annual payments is below for reference:

Year 1 (FY 20/21): $83,403.14 (Standard 5% annual fee increase waived)
Year 2 (FY 21/22): $83,403.14 (Standard 5% annual fee increase waived)
Year 3 (FY 22/23): $83,403.14 + 5% = $87,573.30
Year 4 (FY 23/24): $87,573.30 + 5% = $91,951.97
Year 5 (FY 24/25): $91,951.97 + 5% = $96,549.57

Total Maintenance Agreement:  $443,000 (rounded up from $442,881.12)

If this item is approved by Council, the City Manager will also be authorized to approve up to $5,000 annually for training related travel expenses.  Therefore, the total fiscal impact of this Contract is $468,000 over the 5 year term. 

The FY 2019/20 expense associated with entering this agreement is within the current budget and the ongoing expenses will be included in future budgets presented to Council for approval.