To approve an expenditure for licensing Tyler Municipal Justice Suite hosting services for a three (3) year contract with six (6) automatic one-year renewals in the amount of $385,845 for the first term and the base estimated annual amount of $135,046 for the renewals from Tyler Technologies, Inc. for the City of Plano Municipal Court of Record; and authorizing the City Manager to execute all necessary documents. Approved

This award is to license the Tyler Municipal Justice Suite, moving court administration to a Software as a Service (SaaS) solution, replacing the legacy Incode system, which has reached end of life.

Numerous city departments utilize the system.  This SaaS arrangement will allow the city to discontinue the use of servers operated by the city, saving monetary expense and technology resources.  In addition, the SaaS solution will significantly lessen the likelihood of system and server failure resulting in the potential loss of information through hacks and potential ransomware attacks.

This migration will make an immediate, positive, and significant impact on the efficiency of a great many departments within the City of Plano that currently log into and access the legacy Incode software system.

Due to the copyright held by Tyler Technologies, Inc., this Expenditure qualifies for a sole source exemption under Chapter 252.022, Texas Local Government Code. 

The contract term is three (3) years with six (6) automatic renewals for the potential for a nine-year contract.  The first term will be billed annually at $128,615 for a total of $385,845.  If all renewals are exercised, the estimated total expenditure, including an estimated 5% annual increase beginning in the fourth year, will be $1,304,414.42.

If not approved, our current Tyler software system shall remain in effect and available to the Court, but subject to the currently frequent disruptions and failures we are experiencing as a result of the aging servers currently in use.  As more courts convert to the Tyler hosting software, those courts that have chosen to continue on their current path will do so at a substantially increased maintenance cost.  Thus we could expect our current annual maintenance cost of $158,820 to increase significantly.

If this Expenditure is approved, the Court may immediately take steps to convert to the Tyler SaaS hosting software system.

The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022 (a)(7)(A).

Funding for this item is available in the Municipal Court Technology Fund.  This contract, for licensing Tyler Municipal Justice Suite hosting services, has an initial term of three (3) years with six (6) automatic one-year renewals.  The total estimated amount to be spent under the contract is $1,304,414 ($128,615 in FY 2024-25 through FY 26-27 and a built in estimated 5% annual escalator for FY 2027-28 through FY 2032-33).

Approval of this contract aligns with the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.