CC SR 20260505 G - Tyler Munis Amendment 2
CITY COUNCIL MEETING DATE: 05/05/2026
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider approving Amendment No. 2 to the Contract Services Agreement with Tyler
Technologies, Inc. for the City’s financial services software.
RECOMMENDED COUNCIL ACTION:
(1) Approve Amendment No. 2 to the Contract Services Agreement with Tyler
Technologies, Inc. (Tyler) in the amount of $64,300 for ongoing Software as a
Service (SaaS) system, extend the term for one year through June 30, 2027,
increase the total not-to-exceed amount to $790,300, and authorize a 10%
contingency to execute change orders during the one-year term (not to exceed
$6,240) for additional support as needed; and,
(2) Authorize the Mayor and City Clerk to execute Amendment No. 2 to the Contract
Services Agreement in forms approved by the City Attorney.
FISCAL IMPACT: Extending the Contract Services Agreement for an additional year
will result in a cost of approximately $64,300, which is included in the
FY 2026-27 Budget Assumptions. The total not-to-exceed contract
sum, which originated in 2016, will not exceed $790,300.
Amount Budgeted: $65,000
Additional Appropriation: N/A
Account Number(s): 101-400-1470-5201 ($65,000)
[General Fund – Information Technology Data – Repairs and
Maintenance]
101-400-2999-5201 ($6,250)
[General Fund – Non-Departmental – Repairs and Maintenance]
VR
ORIGINATED BY: James O'Neill, Senior Administrative Analyst JO
REVIEWED BY: Vina Ramos, Director of Finance VR
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Amendment No. 2 to the Contract Services Agreement with Tyler (page A-1)
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B. Tyler Proposal for SaaS fees for an additional year (page B-1)
C. Agreement and Amendment No. 1 for Contract Services with Tyler (FY2026-017-
01) (Linked)
BACKGROUND:
Tyler Munis SaaS is the City’s core financial system and the primary platform used by the
Finance Department to record and manage financial transactions. It is a cloud -based
enterprise system that supports the accounting general ledger, purchasing, accounts
payable, billing, human resources, payroll, and reporting. The system also strengthens
internal controls by standardizing workflows, maintaining audit trails, and ensuring proper
authorization of transactions.
On June 6, 2016, the City Council approved the Contract Services Agreement
(Agreement) with Tyler for five years to provide SaaS services for the City’s financial
services software and hosting the Tyler software for an amount not to exceed $420,460,
including financial implementation costs.
On February 1, 2017, the City and Tyler executed a change order to remove the fixed
assets, eProcurement, project and grant accounting annual licenses, and implementation
services, while adding annual licensing and implementation services for Human
Resources management and payroll, resulting in a net increase of approximately $78,800
and a revised not-to-exceed Contract Sum of approximately $499,300.
On May 31, 2017 and June 14, 2018, the City and Tyler entered into additional change
orders to reduce the contract amount for unused data conversion services and add
additional data conversion services for payroll, resulting in a net savings of $5,700 and a
revised Contract Sum of approximately $493,600.
On August 3, 2021, the City Council authorized Amendment No. 1 to the Agreement
(Attachment C), reducing the Contract Sum by approximately $73,500 for unused
implementation services and exercising the option of the original Agreement to extend
the term by the initial five-year term extension, ending on June 30, 2026. The five-year
extension increased the Contract Sum by $306,000, for a total Contract Sum of
approximately $726,000, which represented an annual cost of services of $61,200 for
those five years.
The current term is set to expire June 30, 2026, and staff is recommending exercising the
one-year extension option.
DISCUSSION:
Tyler is an industry standard, serving over 14,200 clients, including each of the 25 largest
cities and 22 of the 25 largest counties in the United States. Since the City’s conversion
from the prior financial software system to the Tyler software and SaaS hosting services
in 2016, the system has been an essential tool for the City’s daily operations and
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operations efficiency. The system has improved the City’s internal control process,
financial oversight, and transparency in City spending and is used by City staff for payroll,
processing revenue and expenditures, and financial reporting.
The original Agreement provides for subsequent additional one-year terms, and Tyler has
provided a quote to extend the current services provided through June 30, 2027. The
current proposal from Tyler is approximately $64,300, which represents an increase of
5% over the annual cost of services from five years ago (approximately $61,200).
Over the past decade, enterprise Software-as-a-Service (SaaS) subscription costs have
typically risen by 8%-10% annually, significantly exceeding general inflation, with some
vendors implementing higher increases of 15 to 25 % at contract renewal. As such, a 5%
increase over 2021 pricing reflects a much lower increase than marke t indicators would
suggest.
Additionally, given the modest pricing increase proposed by Tyler, extending the current
Agreement with Tyler would avoid likely additional set up and start-up costs of
implementation of an alternative system , disruptions to daily operations and processes,
and would require considerable resources to implement, including the tasks of data
migration and training of staff in all departments.
The original authorization included a contingency of an additional 10% of the contract
amount for unforeseeable situations that might be needed, such as system adjustments
and additional support to address City needs not currently anticipated. Although such
additional expenses have been rare to date, Staff is recommending the authorization of
a contingency amount of $6,240, or 10% of the annual costs for FY 2026-27, to allow
Staff to quickly authorize Tyler to provided additional services should they be deemed
necessary.
CONCLUSION:
The City Council is being asked to exercise the additional one-year extension option
provided by the Agreement and authorize the Mayor to sign Amendment No. 2 to, in a
form approved by the City Attorney, to continue providing SaaS services and hosting the
City’s Tyler software for financial services until June 30, 2027.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1. Do not approve Amendment No. 2 with Tyler, directing Staff to issue a Request
for Proposals for financial services software.
2. Take other action, as deemed appropriate.
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2026-591092-Q4W0Q2 CONFIDENTIAL Page 1
Quoted By:Karen Grosset
Quote Expiration:07/29/26
Quote Name:City of Rancho Palos Verdes -
ERP - Contract Renewal
Saas Term 1.00
Sales Quotation For:Shipping Address:
RANCHO PALOS VERDES, CA CITY OF City of Rancho Palos Verdes
ATTN: ACCOUNTS PAYABLE 30940 Hawthorne Blvd
RANCHO PALOS VERDES CA 90275 Rancho Palos Verdes CA 90275-5351
Tyler SaaS and Related Services
Description Qty Imp. Hours Annual Fee
Financial Management
Accounting/GL/BG/AP 1 0 $ 9,521.40
Cash Management 1 0 $ 2,276.40
Purchasing 1 0 $ 5,919.90
Human Resources Management
Human Resources & Talent Management 1 0 $ 6,375.60
Payroll w/ESS 1 0 $ 13,328.70
Data Insights
Enterprise Analytics and Reporting 1 0 $ 8,467.20
•• •••• •• • • •• t}!e~~l!ies
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TOTAL 0 $ 64,243.20
Summary One Time Fees Recurring Fees
Total Tyler License Fees $ 0.00 $ 0.00
Total SaaS $ 0.00 $ 64,243.20
Total Tyler Services $ 0.00 $ 0.00
Total Third-Party Hardware, Software, Services $ 0.00 $ 0.00
Summary Total $ 0.00 $ 64,243.20
Client’s purchase of the items listed above is subject to the Comments below
Unless otherwise indicated in the contract or amendment thereto, pricing for optional items will be held
All Primary values quoted in US Dollars
Comments
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factors.
Tyler's pricing is based on the scope of proposed products and services contracted from Tyler. Should portions of the scope of products or
services be altered by the Client, Tyler reserves the right to adjust prices for the remaining scope accordingly.
Travel Policy.
responsible for determining and remitting. Installations are completed remotely but can be done onsite upon request at an additional cost.
Tyler on Client's behalf; and (ii) daily fees associated with the cancelled services if Tyler is unable to re-assign its personnel.
Implementation Hours are scheduled and delivered in four (4) or eight (8) hour increments.
Tyler provides onsite training for a maximum of 12 people per class. In the event that more than 12 users wish to participate in a training class or
more than one occurrence of a class is needed, Tyler will either provide additional days at then-current rates for training or Tyler will utilize a
Train-the-Trainer approach whereby the client designated attendees of the initial training can thereafter train the remaining users.
$5,000 per TB.
Manager is restricted to use with Tyler applications only. If Client wishes to use Content Manager software with non-Tyler applications,
Client must purchase or upgrade to Content Manager Enterprise Edition.
Enterprise ERP form template. Any forms in addition to the quoted amounts and types, including custom forms or forms that otherwise
require custom programming, are subject to an additional fee. Please also note that use of the Tyler Forms functionality requires the use of
approved printers as well. You may contact Tyler's support team for the most current list of approved printers. Any forms included in this
quote are based on the standard form templates provided. Custom forms, additional forms and any custom programming are subject to
additional fees not included in this quote. The additional fees would be quoted at the time of request, generally during the implementation
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the most current list of approved printers.
General Billing library includes: standard invoice, standard statement, standard general billing receipt and standard miscellaneous receipt.
Personnel Actions Forms Library includes: standard Personnel Action form - New and standard Personnel Action Form - Change.
Payroll library includes: standard PR check, standard direct deposit, standard vendor from payroll check, standard vendor from payroll
direct deposit, W2, W2c, ACA 1095B, ACA 1095C and 1099 R.
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