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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 16, 2021 <br /> Action Agenda <br /> Item No. 8-b <br /> SUBJECT: Tyler Technologies Multi-Year Contract Addendum <br /> DEPARTMENT: Information Technologies (IT) <br /> and Human Resources (HR) <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Jim Northrup, 919-245-2276 <br /> Gary Donaldson, 919-245-2453 <br /> Brenda Bartholomew, 919-245-2551 <br /> PURPOSE: To review, approve and authorize the Manager to sign a five year software <br /> maintenance and support contract addendum (paid annually) with Tyler Technologies, Inc. <br /> BACKGROUND: Orange County first entered into an agreement with MUNIS, now known as <br /> Tyler Technologies, Inc., in December of 2002 as a means to update and enhance its legacy <br /> financial system. Since the original MUNIS contract, other modules were added and have <br /> effectively developed into a fully integrated set of business tools that have served to automate <br /> many business functions for the enterprise. These tools serve as service delivery keystones for <br /> both Finance and Administrative Services and Human Resources. <br /> Annual software maintenance and support costs are centralized under the Information <br /> Technologies (IT) Department and are typically renewed on an annual basis. This renewal <br /> process involves getting an annual quote from each of the more than one hundred vendors IT <br /> actively manages. The best rate is then negotiated for that particular year in order to prevent <br /> increases in maintenance costs. Decreasing agreement costs is always the goal. <br /> Often, vendors annually increase their price by a certain percent. This percent can vary widely <br /> from year to year and from vendor to vendor. Negotiating a multi-year contract is a means to <br /> decrease support costs for any given product or to at least keep costs predictable for future years. <br /> Again, decreasing agreement costs is always the goal. In recent years, an effort has been made <br /> to seek written contracts for all annual maintenance agreements and wherever possible negotiate <br /> multi-year agreements. Typically on new software acquisitions, IT assesses the value of multi- <br /> year support options and will build those costs into the initial purchase. Many new purchases see <br /> year one costs as a capital investment and year two and beyond are moved into the operational <br /> software maintenance budgetary line item. <br /> FINANCIAL IMPACT: Information Technologies works in concert with Finance and <br /> Administrative Services and the County Attorney's Office to ensure that all procurement statutes <br /> and best practices are followed. The contract addendum has been reviewed by the County <br />