R2022-79 Resolution Authorizing Approval to Renew Annual License and Support Agreement from Tyler Technologies, Inc for the MUNIS Enterprise Financial Software Suite

Home Browse Search

5/2/22, 12:44 PM Item Coversheet fl Information Technology DATE: 5/2/2022 MEMO: 2022-04 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: James Edwards,IT Director SUBJECT: Resolution Authorizing Approval to Renew Annual License and Support Agreement from Tyler Technologies,Inc for the MUNIS Enterprise Financial Software Suite. SUMMARY RECOMMENDATION: City staff recommends that City Council approve the attached resolution authorizing the City Manager to renew the annual Support and License Agreement with Tyler Technologies,Inc. MUNIS Division for software license and maintenance services for the period May 1,2022 to April 30,2023. BACKGROUND: This is the annual licensing and support agreement between the City of Decatur and Tyler Technologies,Inc.,MUNIS Division,for licensed use of the integrated software system that supports financial accounting,purchasing,payroll,personnel,budget preparation,inventory control,fixed assets,business licensing,general billing,accounts payable,human capital,and other transactions/functions,including reporting. The attached renewal quote extends the City's software license and maintenance agreement for an additional year. The agreement further grants the City rights to receive application updates,upgrades,and technical and operational support. The City IT Department has been diligently pursuing other options for the City's current ERP system and has found that moving from our current system will be very disruptive to our staff resources to the degree that outsourcing will be required to augment existing staff for 12-18 months. This software is expensive,I estimate that standing up a new ERP system for the City and accommodating all of the ERP processes we currently have in place will cost our tax payors between 2 and 2.5 million dollars. After a shift is made to another system,I estimate the ongoing maintenance on that solution to be nearly as much as we are paying now if not a bit more. Initial ongoing software maintenance industry standard cost is 15-20%of software capital. In my estimate above,the software cost itself will be between 1.2 million and 1.5 million and if we could negotiate on the lower side for maintenance using 15%,we are talking about annual costs for the ERP software to be between$180,000 and$225,000. It is rare however that an ERP solution would be as low 15%.... typically,software maintenance 18%. Information Technology is continuing to work with Tyler to reduce our annual license and maintenance costs for MUNIS. This year's renewal quote before discount is$195,293.54. The City was able to secure a reduction again on this year's license and maintenance invoice netting a savings to the City of$9,317.54 and reducing this year's licensing and support invoice to$185,976. I recommend we receive this discount again this year as a good faith effort from Tyler to continue working with us to reduce these costs going forward. BUDGET/TIME IMPLICATIONS: Credit for attached invoice is forthcoming and total will be reduced to$185,976 or less. This annual support expense in the amount of$185,976 is included in the 2022 Information Technology Department General Fund budget. ATTACHMENTS: Description Type Resolution Resolution Letter Maintenance Renewal Quote Backup Material https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?itemlD=3892 1/1