Federal Way council approves $2.76M contract to replace aging financial system with Tyler ERP
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Summary
Council voted to award an enterprise ERP contract to Tyler Technologies not to exceed $2,758,316 (including $326,480 contingency) to replace the Eden system, citing sunsetting support in March 2027 and projected efficiency gains; staff outlined an 18‑ to 21‑month implementation with staged go‑lives.
City staff recommended and the council approved a contract with Tyler Technologies to replace the city’s legacy Eden financial system, which vendor notices will sunset in March 2027. The council approved the award on Dec. 2 after a multi‑department selection process and demonstrations that included two finalists.
IT Director Thomas Fitchner and Finance Director Steve Groome explained that the city issued an RFP to six vendors, narrowed to two finalists for full demos and scoring. Staff recommended Tyler based on functionality, government experience, integration capability and lower projected city staff hours for implementation. The recommended package includes financials and human‑resources/payroll modules implemented in two staggered 12‑month phases; financials would go live about a year after a January start, and payroll later in 2027.
Finance presented cost figures: an initial one‑time implementation cost (~$796,000 as shown to council), ongoing annual licensing and support estimated at roughly $268,000 in year one, a five‑year total near $2.7 million (the contract includes a 15% contingency). In open session Councilmember Hong Tran moved to award the contract “not to exceed $2,758,316 including $326,480 as contingency funds” and authorize the mayor to execute project agreements; the motion was seconded and approved by the council.
Councilors and staff discussed implementation risk, project‑management support (staff plan to retain an external project management firm), the impact on staff workloads during a budget year, and the city’s goal to reduce manual processes and paper timesheets. Staff emphasized that the implementation will require city staff participation and that the procurement included language to replace vendor personnel assigned to the project if performance problems arise.
Several councilors asked whether the new system could produce public‑facing budget dashboards and drill‑down reports; finance said the city opted to pursue an optional “open finance” dashboard module and expects improved public reporting. Staff also said the city intends to seek to keep unused contingency funds as part of fund balance at project close.
Vote: Council approved the award in open session after the motion; the contract authorization directs the mayor to sign implementation agreements and related documents.
