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Wabasha County votes to terminate Tyler Technologies contract after stalled implementation and disputed charges
Summary
After months of delayed implementation and poor customer service, the Wabasha County Board of Commissioners voted to terminate its contract with Tyler Technologies. County staff said roughly $330,000 has been paid; an invoice lists about $118,600 in completed work and staff is seeking an itemized breakdown and possible refund of SaaS fees.
Wabasha County commissioners voted to terminate the county’s contract with Tyler Technologies on a motion from the board, citing chronic delays, poor customer service and disputed charges for services the county says it has not received.
Assessors and auditor-treasurer staff told the board they signed a five-year contract with Tyler in 2022 to replace legacy tax and assessment software but have not yet received access to the new system. The staff representative said the county has paid roughly $330,000 to Tyler to date; Tyler’s invoice lists about $118,600 in work completed, leaving roughly $211,000 in charges that county staff are contesting and seeking clarification on.
“We still are not on the software at all,” the assessor’s office presenter said, describing repeated delays in data transfer, incorrect tax and valuation statements and recurring fixes that did not solve the underlying problems. The presenter asked the board for consensus to notify Tyler to stop incurring additional charges and for authorization to pursue a refund of SaaS fees the county regards as improperly charged without system access.
County staff said they had sent a letter asking Tyler to cease activities that would incur further charges and had requested a detailed, itemized breakdown of how the vendor calculated its fees. County counsel outlined a likely next step of issuing a demand letter, setting a deadline for response and, if necessary, pursuing civil action to resolve a contract dispute in court.
“First step is a demand letter,” county counsel said, describing a process of reviewing the itemized invoice, contesting portions of the bill and, if unresolved, initiating civil litigation.
Board members noted other Minnesota counties have faced cost overruns and implementation problems with the vendor, and some counties have canceled contracts; staff said some counties received full refunds while others are pursuing legal remedies. Staff also told the board it has identified alternative vendors that, based on preliminary outreach, could reduce long-term costs by an estimated 58% compared with Tyler’s pricing.
The board approved a motion to terminate the contract and directed staff to keep the board informed as they pursue next steps, which could include a demand for refunds and a replacement vendor recommendation. The board’s motion passed by voice vote.
Next steps: staff will seek a detailed accounting from Tyler, consider a demand letter and deadline for response, and continue to evaluate replacement vendors and timelines for a new procurement or implementation.
