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Home My WebLink AboutCC 03-17-2026 Item No. 5 Tyler Technologies for new ERP sytem_Supplemental ReportCC 3-17-2026 #5 Tyler Technologies for new ERP system Supplemental Report INNOVATION TECHNOLOGY DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3311 CUPERTINO.GOV CITY COUNCIL STAFF REPORT SUPPLEMENTAL 1 Meeting: March 17, 2026 Agenda Item #5 Subject Award of Agreement to Tyler Technologies, Inc., for the two-year implementation of a new Enterprise Resource Planning (ERP) system in the amount of $1,785,144, along with three additional years of SaaS maintenance and support totaling $775,956, for a not-to-exceed total of $2,561,100; Authorize the City Manager to extend the Contract annually for up to five additional years at an annual escalation rate of 3%, for a total not-to-exceed of $1,424,907, provided pricing and services remain acceptable. Recommended Action Approve a five-year agreement with Tyler Technologies, Inc., for the Tyler ERP system for a total not-to-exceed amount of $2,561,100; Authorize the City Manager to execute the Contract with Tyler Technologies when all conditions have been met; and Authorize the City Manager to extend the Contract annually for up to five additional years at an annual escalation rate of 3%, for a total not-to-exceed of $1,424,907, provided pricing and services remain acceptable. Background: This supplemental report provides additional clariffcation in response to questions regarding the proposed Tyler Enterprise ERP implementation, including potential system overlap, integration considerations, and opportunities for consolidation of existing software systems. An important clariffcation is that Tyler Enterprise ERP is modular. Each Tyler module is licensed and priced separately, and purchasing the ERP platform does not automatically include all available Tyler modules. As a result, each city’s Tyler deployment is unique and reflects the speciffc modules selected during implementation. One of the concerns that stafi heard — ensuring that new systems are not layered on top of old ones — is valid. The purpose of this transition is modernization and consolidation, not duplication. That said, some specialized systems will likely remain because they provide depth that ERP modules do not. Stafi will continue reffning the system inventory and identifying consolidation opportunities as part of the implementation. Staff’s responses to questions received from council members are shown in italics. Q1: Which of the City’s current standalone software systems may become redundant with the Tyler ERP implementation? Stafi response: The primary system that will be replaced is the City’s current contract management platform (Cobblestone). Tyler’s Contract Management module will replace this system and is expected to reduce ongoing costs. The City currently pays approximately $37,000 annually for Cobblestone. Tyler’s contract module is estimated at approximately $3,500 annually after a one-time implementation cost, resulting in an estimated annual savings of approximately $33,500. Other systems such as NeoGov, OpenGov, and NextRequest serve specialized purposes that are not fully replicated by Tyler ERP modules. NeoGov (Recruitment and Onboarding) Tyler offers HR and recruiting modules; however, NeoGov provides more robust recruitment functionality including civil service exam scoring, eligibility lists, ranking registers, Equal Employment Opportunity reporting, compliance tracking, detailed recruitment analytics, automated job postings, and a modern applicant experience. For these reasons, the City plans to retain NeoGov during the initial ERP implementation. NeoGov’s current annual cost is approximately $26,116. Public Records Act Request (PRAR) Systems (Logikcull and NextRequest) Logikcull is used primarily as a backend tool for litigation-focused eDiscovery and to process high volumes of records, including emails and other documents from server searches, for public records requests. NextRequest manages the City’s public-facing records request portal, allowing the public to submit requests and the City to receive, track, and process them from start to finish . ERP systems generally do not replace dedicated PRAR management platforms capable of supporting compliance requirements. While Tyler offers document management and records capabilities, Laserfiche remains the City’s official system of record and records management was not within the scope of the ERP implementation project. OpenGov (Budget Transparency and Engagement) Tyler does offer transparency tools, but OpenGov provides advanced budget visualization and community engagement features. A comparison of the two platforms: Tyler OpenFinance OpenGov Orientation Data-centric & analytics- oriented; great for internal transparency and custom dashboards Process-centric; combines budget planning, citizen transparency, and public engagement in one cloud platform Public Transparency Not inherently built as a public transparency portal; requires heavy configuration Easier to publish and share government finances with the public without heavy configuration Annual Cost $16,000 (ongoing) + $5,600 one-time $74,500 annually Current OpenGov usage includes: budget building after data upload, departmental budget proposal submission, Administrative Services dashboard reports for the Audit Committee, and Open Town Hall for community engagement. OpenGov's use will need to be reevaluated once Tyler Budget is implemented. Q2: Will the ERP replace Accela or ProjectDox? Stafi response: Accela (Permitting) Tyler has Community Development modules; however, migrating permitting systems is highly complex and is not currently within the scope of this ERP implementation. Accela remains a best- of-breed system for land use and permitting at this time. Replacing Accela with Tyler would efiectively double the implementation and maintenance costs and add multiple years to the overall project timeline. The intent is not to "double pay." Systems will be phased out where the ERP can genuinely absorb functionality without degrading service levels. Q3: How will operational systems such as fleet and asset management integrate with the ERP? Stafi response: The implementation plan includes integration between Cityworks and Tyler to ensure operational asset management data flows into ffnancial records. Integration through Application Programming Interfaces (APIs) will support asset lifecycle tracking, depreciation schedules, retirement and disposal records, and will reduce duplicate data entry across systems. Q4: Are integration costs included in the ERP investment? Staff response: Yes. The proposed ERP implementation costs include APIs and extraction utilities to integrate with Cityworks, Business License systems, NeoGov, Accela, ActiveNet, OpenGov, and Laserfiche. Q5: How will the City ensure staff adopt the new system and eliminate legacy processes? Staff response: Change management is a core focus of this implementation. The City has identified a dedicated Change Manager (Greg Card) to support the transition. Key efforts include: •Augmented staffing during the implementation phase •Formal training plans for all impacted staff •Business process redesign to replace legacy habits (e.g., Excel-based project tracking) •Executive sponsorship to drive adoption from the top down ERP projects fail when organizations do not change behavior. This implementation is intentionally planned to address that risk. Q5: Data Migration — Legacy Financial Data (Logos.Net) How much of the implementation cost is dedicated to cleaning up old data before it moves to the new system? Staff response: The estimated cost for data conversion is approximately $30,000, which will cover data mapping, validation, and cleanup activities as part of the migration process. This effort will ensure that records are properly aligned with the new system’s data structure and that any inconsistencies or outdated fields are addressed. In addition, the process will include a review of existing records to confirm that only data still within the applicable retention period is migrated, ensuring compliance with the City’s records retention policies. Q5: Will Tyler replace SimpliGov workflow automation? Staff response: The Tyler platform includes native workflow automation capabilities that will likely allow the City to replace many existing SimpliGov workflows related to Finance and HR internal approval processes. However, SimpliGov would still be necessary for: •Digital workflows that do not involve Finance or HR •Workflows requiring integration with Laserfiche, Microsoft Power Platform, Cityworks, or GIS Additionally, Tyler's workflow automation tools are not as sophisticated or flexible as SimpliGov. Transition feasibility will depend on workflow complexity. Tyler's workflow functionality is also limited to internal processes — public-facing forms and digital workflows cannot be replaced by Tyler. Attachments Provided with Original Staff Report: A – Draft Agreement B – CC Resolution No. 25-007