~ ~ S/aog/• a y ~. a COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND ELEVEN COPIES OF THIS REQUEST AND r DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: ~~~~ ~Q~(~.~ OFFICE: . MEETING DATE: ~~r~~~r~~~~ TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) C~~uud~~ ~~ ~.~-~ao ~'rrzl`~~,,n.~ eu-~f~ ~h-- ~~ o EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON): NAME OF PERSON ADDRESSING THE COURT: ~[/X-~ ESTIMATED LENGTH OF PRESENTATION: , ~ /112~~ ~ IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter S51 and 552, Government Code, is as follows: 5:00 P.M. on the Tuesday prior to the meeting. THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court, Court Order No. 25722. .; Tyler Teehnologles, Inc. The Soltware Group bivision 1" ~ t ! e r wo rk.r. ~ _ Y F ----------------._ . __ .. _ _------- _ -- -- ------ --- - --------- -_. --- - -- 65001nternational Parkway, Suite 2000 Plano, TX 75093 Tel: 972-713-3770 Fax: 972713-3 7 77 www.tyler•t5q.com November 18, 2005 Judge Pat Tinley Kerr County Judge 700 Main Street County Courthouse, Room 118 Kerrville, TX 78028 Dear Judge Tinley: I have enclosed a copy of the contract for the new Odyssey Judicial, Orion Collections, and InVision Financials software and hardware that Kerr County recently purchased from The Software Group. My staff will be in touch with the appropriate office(s) soon to schedule the installation and training. Thank you for the confidence you have placed in The Software Group. We appreciate the business you have given us and look forward in continuing our service with you in the future. - Sin y, ../" `/ Smith Pres' nt Enclosure ,~ .. Teens and Conditions 1. Deftnitlons (a Equipment The computer hardware. inducting the cerrtrel processing unit on w~ich Software is installed, and arty other Tyler supplied peripheral egwpment d the bcation d software astaNation. (b) Software. Arrtyry Software product Ncersed ro Client by Tyler under a separate agreement fa wNch Tyler fifers fts Chard Sdtiaare Update end Cfient Support S~oftyy~ may include meardUrre rea~aad code (obJed code~wrNiften idn~a ynL language, on any media, source code d Nstlrg, and any improvements, rtrodficahas, enhancemens, charges a updates to such code a I'rshngs provided b Client by Tyler. (c) System. The Equipment and the Software that are defined in 1(a} and 1(b) above. a)Th /preement is effective iron the C.o~rarlarrcertrent Date and shat oontkare fa an initial term d sun months. After the nrdN tamr, tlris Agreement sha0 remain face d tlr~ agreement uu~on m'netypadays (~)yi~ written~notice to the other party. 3. EUglbNlly far Service AgraemsM (a) Software s ekgrble fa indusfon under this Agreement immediately upon tylefs 'rstallaNon d Software, exphaNar d Tyler's Software warranty, or exp'vabon d an exiting Tyler Software Update and Client Support Service Agreement (b) Service ands this Agreement a contingent upon: (1) The Software being unmaddied and properly maintainred al the latest Tyler revsbn. (and prerequisite sofwarre as s~pedfied by Tyler. ~~~ contguredon (3) AN Software being covered by Software wanaMy or by this Agnrertrent, 'd such coverage is avaNeble are licensed after the Commencement Date d this Agreement may be subject to additional charge(s) for coverage under Nis Agreement +. Service Reaponafbilitles of T Fa the charges stated herein, T sh~l provide the fdbwing Software Update and Client Support services: (a) Software updates, and enhancements ro Ne covered Software made generally evadable by Tyler to ds Clients during the term d Nis Agreement shall be anp ash u ~ ases on Tylers standard media. Software updates and (t) Program modifications requked due ro legislative charges. (2) Program charges required to use Tyler's standard forms. (3) Fixes to reported software problems. (4) General enhancements to covered Software, which Tyler deems to be included in the standard system. (b) Improvements and revisions ro reference manuals a documentation made generaNy avar7able by Tyler to its Clients during Ote tens d this agreement, (c) Rarrde dtagrwstiw d problems wiN covered Software. (d) Periodic review d autstandirg enharrcenrent requests and bug reports. (e) Telephone assistance, telephone number(s)) wiN be provided to the Client. CContact ro enable commrxr~atiorr with a Tyler SpeclaMst during the hags d 8:30 AM to 5:110 PM. bcal Dallas. Texas Nine, Monday Neagh Frday, exclusive d Tyler holidays. Tyler wNl use reasonable efforts ro respond to the Client Canted cell wiNin four woddrg hours assisting with: (1) Idanirfying, verifying, and resohdrg problems in the Software. (2) Identifying and v~~ng problems wiN tie Equipment used in camertian with tie Software. (3) InsFallation d Software releases. 5. Services Not Included (a) No on-site Software Updates a CIieM Support services are included under Nrs Agneertrent Any on-site service requested by tie Client a requked due ro software charges, operating system upgrades, trakrirg, a other assistance wNl ba provided at Tyler's percaN rates and terns Then in effect (b) Services nd covered by Nis Agreemed krdude, but are nd limited to, fa0ure d Equipment, fagure d non-Tyler supplied software, (ar7ure d Software caused by non-Tyler PProvided hardware, failure d Software due to Equipment operation, catastrophe, tauN, a rregtigance d Client, operation anon, improper use a misuse of the System a any part thered, a any other causes beyond Ne control of Tyler and occurring without Ne tautt a negligence of Tyler. 0. Responaibllities of CIIeM (a) Client agrees ro appoint a System Administrate to be responsible fa the overall operebon d the System and individual Product Administrator(s) ro be responsible for Ure•operatlon d each product Identified on the face d this agrcertrant ro furrctrort as the primary tooted between Cfrent and Tyler. (D) Chant adcrrowledoes aN Software charges, improvements, enhancements a updates {and each .Onem) provide) b Tylerare subject to tie same Ucerse Agreement under which Client obtained a license ro the Software, including aN teens end corditlons tiered, and Client agrees ro abide by such Lkrerrse Agreement. (c) CNent agrees ro maintain the Software to the latest revisan level. (d) Client agrees ro provide adequate training to its employees end further agrees ro assign ro the use of the system only those employees who have received adequate training. (e) Client aaggreel ro Blow remote access by Tyler for purposes of software support irrdudkrg VPN access. 7. Charges (a) Chagas wiN be irndced each Quarter in advance and wiN be payable on the first day d the quarkdy service pedod fa which the Tyler imroice is rerMered. ~ (b) Chagas for the preparation of each release wNl be imaiced at such time as ~~ the release k prepared at Tyler's then curtent release charge. ((c)) C do not inrdrde any tax or ottta govemment~ impositions inducting, vvklrout~imdaNon, sties and use tax. AN such oos4 if any, shall be invoiced separately to chant and diets shah pay the same. 8. Llmitatlon of LtabOfty and Wirrarrty (a) Tyler's IfabiNty for damages arising out d a in connectbn with this Agreement wfihether based on a theory d contract a ror4 inducting negi'ggence and strict IiabilNy, shah be limited to tlra total charges yard a payable dudng one (1) year underthis Agreemant (b) No action arising out d a in connection with this Aggreement whether based on a theory d contred a tort, including negligence artd strict liability, may be lxoughl w ktstihded by elttier parry more than two (2) years after the cause of action accrues. (c) In no evert shah Tyler be liable ro Client fa (i) Indrect, remote, inddental, speaal, exemplary, pumtive a r~rrseeqquantial d , (r) damages due to carrses beyond the reasonable control d Tyler or (i damages resulting from bss d use d the System a any pert thereof, knee a damage ro Client source date, loss d revenue a desNrchon, a bss d maledals provkfed to Tyler by client (d) THE RIGHTS AND REMEDIES OF CLIENT SET FORTH HEREIN ARE EXCLUSIVE AND IN LIEU OF ANY AND ALL OTHER RIGHTS AVAILABLE AT LAW OR IN EOUITY. Tyler DISCLAIMS ALL WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR OR INTENDED PURPOSE. 9. General (a) Crient recognizes Net T ter invests carsiderable time and expenses in train gg Tyler empbyees. Should Client directly a indirectly contract wiN a hire any Tinyler employee, CNent shall unmediatety p to Tyler four (4 montlu salary fa each amp ee tired a contracted wiN and Tyler shah be en~ to any other rtwd'ficetbn or amendment ro Nis agreement as shah be equitable under the dreumstarrces. (b) N etther party negl~ds, fails a refuses ro perform arty of its oblh~'ggations under Ns Agreement, and such farlrxe continues for a period d iwenry (~0) days after wdNen ratite hereof, Nte otlrar party shall have the rght to discartinue performance and the right ro tertnmate Nis Agreement (c) This Agreemard supersedes all prior Software Update and Client Support service agreements and undersfandrngs between the padres with respect to any services covered by Nis Agreement, and may rat be changed except by written 1nISiNment signed by both parties Unless specrficalty pertruCed harem to Ne contrary and may nd be terminated except by written notice. (d) Il is expressly understood and agreed Nat N etther party, on any occasion fails ro perform any lens d Nis Agreement, and the other party does not enforce that term, the failure ro rsrrforoe on that occason shall not prevent errforcement on anotlteroccasion. aa~~ yle sr'cetacdiliNryrsatfhe address set below. arges hereunder shall take (i) This Agreement shah be veined, interpreted and erdorced in accordance wrN the laws d the State d Texas. 10. Entlrety of Agreement and Amendments. (a)This Service Agreement contains alt of the representations, wartanties, and promises of the parties relating ro the subject maser tiered, whether oral a written, and supersedes aN mpresentatias, wananties, and promises of the parties relating ro the sutgect matter hereof wtrich predate this Service Agreement (b)This Service Agreement may only be amended, modified a changed by wdNen instrument signed by both parties hereto. Tyler Technologies, Ina. l The Sonware Group Division • 8500 Intema5onal Parkway, Suite 2000 • Plano, Texas 75093 ~'Yltr 7eahnulagies. ]nc, C~SptJ tr'- ~ •;, ~ ~ , f'-~s kwr~y, 5uit~ %C~~~ ~lati~, T~x~~ 7~a~}?~3 ~hanA ~t7~:7t3.~77fii fit+ ~ ;? 77„.S'f~ r~ April 17, 2008 Dear Clients, Please excuse the long letter, but I feel the impact of House Bill 1010 on your offices and Orion is very important and warrants a thorough review. I would like to thank you for attending the House Bill 1010 discussions we recently hosted. During the discussions, we covered the history of certified imports, reviewed the 2007 certified import process, discussed the impact of HB 1010, and talked about Release 11 and the 2008 plan. If you did not make one of those meetings we encourage you to review the documents we have provided along with this letter, and feel free to call us with any questions. As you know, HB 1010 has shifted the burden of shared properties to the Tax Office. This new burden can be very different from Tax Office to Tax Office and can take on varying degrees of intensity. We foresee several challenges as we make the system changes required for the legislation. In 1998 when the "Shared Property" concept was implemented, it entailed a huge amount of legwork on behalf of the Appraisal Districts, at least those that had properties that crossed CAD boundaries. This work included matching all properties with names, legal descriptions, property structure, and then an account number that would facilitate the electronic transfer of information between offices. Even in CADs not using the electronic transfer of information, there were processes in place to move the data from CAD to CAD. Now that each tax office will be receiving property information from each respective CAD, it creates a need for electronic conversions that were not previously in place. Since there can be delinquent taxes related to the properties in question we believe it becomes imperative to ensure the data from the different CADS align. While the CADS had matching processes in place, there is nothing to ensure the matching ID number is available to the tax offices. This will cause each office with a new conversion to go through some process (if you elect to) to acquire the new matching ID/criteria. I believe the presentation we showed during the discussions and provided in attached form illustrates this. The additional electronic conversions on top of all the software changes to accommodate the legislation highlight an issue we feel needs to be addressed in order to have the next tax cycle move as smoothly as possible. That issue is the process and responsibility related to the electronic conversion of appraisal/ assessment information from the CAD to the Tax Office. From the inception of the CADs in 1982, there has been the need to transfer data from the CAD to the Tax Office. When the data comes from a "different system" or a "third party" the process is a conversion. We have traditionally called those "Certified Conversions." . Orion Collections' predecessor was Automated Tax Collections (ATC), and as a company we always processed the "Certified Conversions" making sure all the data was converted, matched and balanced. There were charges for this service. ATC clients had varying needs for these conversions because often the data came from ATC's sister product ACRD and therefore data was in a similar format and was a) either directly available (i.e., a shared system) orb) was transferred from ACAD's similar file structures. Those that did not have ACRD had a conversion and paid for this additional service. The conversion process was never popular because of the additional costs and because it took special coordination between the Tax Office, the CAD, and us. To this day, all vendors have some sort of conversion process for third-party imports, and depending on the makeup of their clients, this cost is covered by various means. When Orion came along we "tried" to address this unpopular process by building a conversion process within Orion. The idea was to save the client with third-party conversions and get us out of that business, allowing us to focus on software and not data conversions. What we actually accomplished was a process that does a pretty good job of mapping and moving the data from one system to another, but at the same time we shifted the burden of dealing with data exceptions, data matching, and data analysis to the Tax Office. Often the Tax Office is not trained, equipped, or does not have the personnel to deal with data analysis and manipulation. The result was that those issues came back to us, and we ended up dealing with the conversions much like in the past and not getting paid for the service. Not only were we involved, but since both the Tax Office and Tyler were involved, the responsibilities related to tasks became blurred. As implied previously, we believe HB 1010 will exaggerate the concerns of the existing "Certified Conversion" process. With all the changes related to HB 1010 and the fact that there will be numerous additional conversions in 2008, we feel we must take a new course related to "Certified Conversions." For this year, Tyler will take over the third-party import process. We have dedicated over 1,600 hours to improve the existing certified import, supplement, and ownership transfer processes. HB 1010 updates will also require at least 1,000 additional hours. Converting data from multiple dissimilar systems is a complex process, yet our goal is to improve the process and investigate ways that might allow the conversion process to move back to the end users in the future. Orion's original maintenance rates were based on ATC maintenance rates and since have been adjusted for Orion's new features and support requirements. The additional work of providing for all certified conversions and now HB 1010 conversions is not budgeted in our support numbers. Incorporating these costs into the normal maintenance rates across the board does not seem to be the fair approach when only certain counties have conversions from third parties and only certain counties have new HB1010 processes. We therefore defined a number of additional services each tax office could have Tyler provide. With regard to the budget process/timing, we understand this is a change and a concern. To mitigate these concerns we a) are announcing these costs now before your 2008/2009 budget process, b) do not foresee these costs being invoiced until the fourth quarter of 2008 when most offices start a new budget year, and c) can accept payment in January 2009 for those offices with a budget year that begins in January. Please reference attached for detailed billing information on the third-party import processes and services we will provide related to "Certified Conversions" and HB 1010 preparations. Some of the services we believe you may need or may have interest in include: • Training shared sites on supplement process updates • Set up additional calculations on shared sites • Matching and updating CAD IDs • New third-party file layouts • Supplemental processing If any of this information in this letter or our attached packets is not clear, please feel free to contact Michael Morrison, Mitchell Spence, or myself. We will work with your office to determine the best path to have the next tax cycle move as smoothly as possible. Sincerely, ~"'" Jim Adams Vice President, Appraisal & Tax Solutions Tyler -Plano r ~E O 0 x ., .. ...*.. KERR COUNTY ATTORNEY REX EMERSON COUNTY COURTHOUSE, SUITE BA-lO3 7OO MAIN STREET KERRVILLE, TEXAS 78028 April 29, 2008 Tim Adams Vice President, Appraisal and Tax Solutions Tyler Technologies 6500 International Parkway, Suite 2000 Plano, Texas 75093 RE: April 17, 2008 Client Memorandum Dear Mr. Adams: The Kerr County Tax Assessor, Diane Bolin forwarded your April 17a' memorandum with several concerns and I must admit I am confused. Your memorandum repeatedly discusses software modifications that Tyler has made to respond to legislative changes. The memorandum specifically discusses Tyler "several challenges as we(Tyler) make changes required for the legislation." The process appears to include Tyler's voluntary assumption of the third-party import process "for this year" with an expressed intent to "investigate ways that might allow the conversion process to move back to the end users in the future." You then state that the additional work of providing for the HB 1010 conversions is not budgeted in our support. I respectfully disagree. Based on the information available to me it appears that paragraph 4 of our Tyler Industries contract states: " For the charges stated herein, Tyler shall provide the following Software Update and Client Services:... Software updates and enhancements include: 1) Program modifications required due to legislative changes. " Tyler's Services Not Included paragraph does not contain any exclusions for legislative changes that may be onerous or time consuming. It is Kerr County's position that the County in good faith purchased a program under your contract that seems to clearly state in contradiction to your assertion, that it is Tyler's duty and burden to provide legislative driven software updates under the existing Client Support and Software Update Services Agreement approved in 2007. There does not appear to be any contractual foundation to Tyler's proposed additional legislative update charges. MAIN NUMBER (830) 792-2220 HOT CHECKS (830) 792-2221 F,ax (830) 792-2228 Website: http://wwwco.kerr.tx.us/attorney I look forward to your assistance in timely resolving this issue. Yours truly, Rex Emerson Cc: Diane Bolin Commissioners Court John Trolinger