CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Sole Source Procurement 26-224, Tyler PACE and Tyler Assist Basic, to Tyler Technologies, Inc. (Tyler) for an amount not to exceed $100,851.07 and for a one-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Traci Marrocco, Interim Director of Finance
BACKGROUND:
The City Manager awarded Contract 24-106 to Tyler Technologies, Inc. (Tyler) in January 2024 for a one-year term from January 1, 2024, to December 1, 2024. The City Manager awarded Contract 25-125 to Tyler Technologies, Inc. in May 2025 for a one-year term from June 1, 2025, to May 31, 2026.
Tyler developed the PACE and Assist programs to provide clients with a higher level of support than the standard technical assistance included with the annual software license. While standard technical support is intended to address day-to-day issues, these programs provide enhanced consulting services for implementation, training, configuration, and software enhancements. Staff began using the PACE program in 2019, which includes 160 hours of consulting services to support training and enhancements to software modules. The Tyler Assist Basic program, which the City began using in January 2025, includes 150 consulting hours to support the implementation of new permits and licenses and provide general and advanced training for staff using the Tyler Enterprise Permitting & Licensing (EPL) software.
Tyler Technologies, Inc. amended the contract term to align the start dates of its services under a single contract, consistent with Governmental Accounting Standards Board (GASB) best practices.
DISCUSSION:
To date, the Tyler Assist contract has been used to help staff with several issues, including, but not limited to, training to create custom reports, modifying automation to change permit and license statuses automatically, creating custom forms for the special events application, enhancing City’s GIS integration with EPL, improving the resident experience and explaining the credit card refund process in EPL.
The Tyler Assist Basic program includes 150 consulting hours, client services, and account management to support EPL training, configuration, reporting, and application improvements. The program is available to Finance, TED, and Community Services, with most consulting hours used by TED.
The Tyler PACE award includes 160 implementation and training hours, a dedicated project manager and five passes to the annual Tyler Connect conference. The implementation hours are shared across the Finance, Human Resources, and IT Departments.
Staff have identified this purchase as a sole source because the Tyler PACE and Tyler Assist programs are facilitated by Tyler, the software developer. The programs give access to enhanced user training and software development, which cannot be reproduced by an outside vendor. A sole source letter from the software developer is attached.
If the City does not purchase the Assist and PACE programs, staff could still request consulting services, consultant hours, and investment assessments; however, these services would be charged at the standard rates rather than the discounted rates available through the programs. For Assist, this would result in approximately $9,349 in additional costs for an equivalent number of consulting hours. Under PACE, consulting services would cost $1,800 per day compared to the reduced rate of $926 per day. Additionally, without either program, the City would have limited access to development staff, implementers, and developers for training, configuration support, investment assessments, and assistance with resolving issues.
The term of the contract is one year from June 1, 2026 to May 31, 2027.
FISCAL IMPACT:
CIP #: N/A
Tyler PACE and Tyler Assist are expensed to the Other Professional Services accounts listed below. The 2026 budget included $54,500 for Tyler PACE services, and $40,000 for Tyler Assist services, for a total of $94,500. Although the award amount does exceed the budgeted amount for these services by $6,351.07, staff does anticipate this award can be accommodated within the 2026 budget due to under spending in other areas. Staff will continue to monitor the budget and make adjustments as needed to support this award.
|
Account Number |
Fund Description |
Total Budget Amount |
|
15101100-531309 |
General Fund |
$61,980 |
|
30261100-531309 |
General Fund |
$55,000 |