Explanation
The City Auditor originally entered into a Professional Services Agreement with Tyler Technologies, Inc., for the Purchase and Installation, Maintenance, and Support of City Financial Management System. The contract was authorized by Ordinance No. 1077-2013 and passed by the Columbus City Council on May 20, 2013.
The contract included annual renewal provisions for hosting, maintenance, and support for the Dynamics AX system manufactured by Microsoft with services provided through its partner Tyler Technologies, Inc. The most recent contract modification and renewal was authorized by Ordinance No. 0718-2020 and passed by Columbus City Council 4/20/2020.
Emergency Justification: The City’s Auditor Office and Finance Department have started the process to migrate from DAX 2012 to Dynamics 365 for Finance and Operations. Due to COVID-19 related delays and unavailability of necessary resources during the City of Columbus State of Emergency, go-live of D365 has been moved from 8/30/2020 to 12/31/2020. Tyler support is being extended an additional quarter to ensure continuation of support and hosting of the city’s financial management system until D365 is implemented and has successfully completed post go-live support period. A separate ordinance will be submitted for D365 COVID-19 related expenditures.
Ordinance No. 0718-2020 authorized extension of the contract through 3/31/2021 and provided funding through 12/31/2020. This legislation authorizes the City Auditor to fund the contract authorized by Ordinance no. 0718-2020 for the first quarter of 2021 (January 1 - March 31, 2021) to cover hosting services until transition to D365 is complete. The contract with Tyler includes a provision for the City to exercise an early opt out option from the hosting agreement with 60 days’ notice. The original contract with Tyler also provided for additional quarterly pricing extensions and this extension is necessary to ensure a seamless transition to D365 while continuing support and hosting of the city's financial management system, Dynamics AX and in accordance with the existing contracts with Tyler Technologies, Inc. The cost for the AX hosting and support extension for the period January 1 - March 31, 2021, per the contract terms are estimated as follows:
Dynamics Fees 2021
AX Hosting (Jan 1 - Mar 31, 2021) $ 264,688.00
TIE & AX Support (Jan 1 - Mar 31, 2021) $ 20,169.00
Total through 3/31/2021 $284,857.00
Title
To authorize the City Auditor to modify the contracts with Tyler Technologies and provide funding for the support, hosting, and maintenance of Dynamics AX for the period January 1 - March 31, 2021; to authorize the transfer and expenditure of up to $284,857.00 from the City Auditor’s operating fund for a total expenditure of $284,857.00; and to declare an emergency ($284,857.00).
Body
WHEREAS, it is necessary for the City Auditor to modify the contracts to increase funding with Tyler Technologies, Inc. to continue yearly maintenance, hosting, and support services for Dynamics AX for the City of Columbus necessary for 2020 operations; and
WHEREAS, it is necessary to authorize the expenditure of up to $284,857.00; and
WHEREAS, the COVID-19 pandemic has resulted in project delays as a result of actions taken to facilitate compliance with COVID-19 public health measures, and therefore, project expenses that were not planned or budgeted; and
WHEREAS, it has become necessary to extend the D365 implementation, which requires additional hosting services with Tyler Technologies to address delays caused by the COVID-19 public health emergency; and
WHEREAS, such expenditure of funds has not been previously accounted for in the 2020 Budget to fund this additional quarter of service required after the COVID-19 induced delays;
WHEREAS, an emergency exists in the usual daily operations of the City Auditor’s Office in that it is immediately necessary to authorize the City Auditor to modify existing contracts with Tyler Technologies and authorize additional maintenance, hosting, and support services related to Dynamics AX, thereby preserving the public health, peace, safety, and welfare;
NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized to modify the contract to extend support, hosting, and maintenance of Dynamics AX with Tyler Technologies Inc. for the period January 1 - March 31, 2021 due to unbudgeted delays to its D365 upgrade project caused by COVID-19 responses and compliance with stay at home orders during a public health emergency.
SECTION 2. That the sum of $284,857.00 is hereby authorized to be expended from the General Fund per the attachment to this ordinance.
SECTION 3. That the transfer of $200,000.00, or so much thereof as may be needed, is hereby authorized between object classes within the City Auditor’s budget in the General Fund, per the account codes in the attachment to this ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby authorized for expenditure and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding contract or contract associated with the expenditure of the funds.
SECTION 6. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this resolution is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.