Title
Resolution to Approve an Amendment to the City’s Agreement with Tyler Technologies, Inc. for 5-year Software Support and Maintenance of the City’s New World ERP Financial Software FY2026-FY2030 ($373,469.07)
Memorandum
Attached for your review and action is a resolution amending the City’s agreement with Tyler Technologies to provide for 5 additional years of software support and maintenance for the New World ERP Financial Software for FY2026-FY2030 in the amount of $343,469.07, including a contingency not to exceed $30,000.00, for a total of $373,469.07. New World is used for budgeting, invoicing, accounts payable, financial tracking and reporting.
New World ERP Financial Software has been instrumental in allowing business units to systematically manage and control spending. The system allows for monthly reporting and workflow routing for approvals of accounts payable invoices, accounts receivable, purchases, etc. The budgeting software has allowed employees, administration, and management to track, process, manage, and review the City’s budget from the beginning of the budget planning process through the approval of the new budget. It is also an integral element of the City’s daily financial operations, and essential to the annual audit process. It is imperative to maintain the agreement with Tyler Technologies to receive application updates and maintain support.
Cost Breakdown:
-FY2026: $64,693.97
-FY2027: $66,634.79
-FY2028: $68,633.83
-FY2029: $70,692.85
-FY2030: $72,813.63
-Contingency: $30,000
Total: $373,469.07
Tyler Technologies complies with the requirements of the City’s Non-discrimination and Living Wage Ordinances.
Budget/Fiscal Impact: This expenditure is planned and budgeted in the approved FY2026 Information Technology Services Unit budget and will be budgeted for in the FY2027-FY2030 Information Technology Services Fund Budget. There are no additional funds being requested.
Staff
Prepared by: Jake Chase, IT Applications Delivery and Enterprise BI Manager
Reviewed by: Joshua Baron, Director, Information Technologies Service Unit
Reviewed by: Kim Hoenerhoff, Financial Analyst
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City entered into an Agreement with New World Systems Corp. to provide the New World ERP Financial Software on December 16, 2009;
Whereas, The City of Ann Arbor has seen significant improvement in data management, financial services and budget control since the implementation of New World ERP Financial Software;
Whereas, Tyler Technologies complies with the requirements of the City’s Non-discrimination and Living Wage Ordinances; and
Whereas, Sufficient funding for the 5-year software support and maintenance fee for the City’s Financial System is available in the FY2026 Information Technology Services Unit budget and will be budgeted in subsequent fiscal years;
RESOLVED, That City Council approve the attached “Support Amendment 2” with Tyler Technologies to agree that Tyler will provide 5-years of annual support and maintenance of New World ERP Financial Software in an amount not to exceed $373,469.07; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution including execution of any authorized renewals, changes, or amendments that do not exceed the amounts authorized herein, and termination of the agreement upon its terms if deemed necessary.