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Manhattan Beach council approves $3.4 million, 5-year cloud contract with Tyler Technologies
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Summary
The City Council voted 5-0 to approve a five-year SaaS agreement with Tyler Technologies for core finance, permitting and licensing systems with a not-to-exceed cost of $3.4 million; staff said technology fees and other offsets will cover a large portion of the annual cost.
The Manhattan Beach City Council voted unanimously Tuesday to approve a five-year software-as-a-service (SaaS) agreement with Tyler Technologies for enterprise resource planning, enterprise permitting and licensing and related systems, authorizing staff to spend up to $3,400,000 including contingency.
City IT Director Miguel Borrado told the council the cloud subscription will replace on-premises servers and centralize functions such as financials, payroll and permitting to improve reliability, cybersecurity and service delivery. Senior management analyst Tatiana Roshinova Feltakova said the contract includes four new modules and a negotiated transfer of implementation hours that reduces future hourly rates.
“The SaaS subscription enables the city to adopt the latest software features and technologies faster,” Tatiana Roshinova Feltakova said during the presentation. She said the vendor’s standard 5% annual uplift applies in years two through five and that some costs will be offset by the city’s technology fee revenue, which staff now projects could be about $600,000 annually in future years.
Council members questioned contingency sizing and the 5% uplift. Council member Charnay noted the city had negotiated labor-rate savings and other discounts; Borrado said staff had been negotiating with Tyler and retained some concessions, including an $88,000 transfer of implementation hours.
Council member Sherrillan moved approval of Resolution No. 26-25; the motion passed 5-0.
The contract now authorized will move forward as staff coordinates implementation timelines and service-level arrangements with Tyler. Staff said further details about phased rollout and any expected user impacts will be provided to council and the public as modules go live.
