MEMORANDUM

TO: City Council

FROM: David J. Deutsch, City Manager

SUBJECT: Resolution R-69-08, Waiving bidding requirements for the purchase of Tax Billing software

DATE: October 3, 2008

In December 2007, the City purchased a general billing module from Tyler Technologies to complement the City’s existing financial software system. This module allows for the billing of miscellaneous items, such as reimbursement for lawn mowing when done by the City. At the time of purchase, staff was advised by the software provider that the general billing module could be used to bill businesses for personal property taxes. Unfortunately, after months of training, it has been determined that the general billing module cannot be used for billing business personal property taxes. However, the general billing module can and will be used for the billing of miscellaneous items as mentioned previously.

In recognition of this situation, the software provider, Tyler Technologies, has agreed to reduce the price of their property tax module from $22,000 to $11,000, which is a 50 percent reduction. Staff has contacted the Counties of Anne Arundel and Howard, both of whom currently use the tax module for billing purposes, and confirmed their satisfaction with the module. Initial costs for set up, implementation, training, and form design will add another $9,950, resulting in a grand total of $20,950 for the cost of the tax billing module. Funding of this purchase will be provided from the Reserve for Contingencies account under the Nondepartmental section of the General Fund.

The City expects to issue approximately 1,200 personal property tax bills to businesses in FY2009 and to receive nearly $1.8 million in business personal property taxes. The current billing process requires the manual entering of information to produce the property tax bill. The new module will allow for the downloading of information directly from a State file.

Staff recommends that Council waive bidding requirements for good cause shown, as allowed by Section 61(b) of the City Charter, for the purchase of tax billing software from Tyler Technologies in the amount of $20,950.

R-69-08

RESOLUTION

OF THE COUNCIL OF THE CITY OF BOWIE, MARYLAND
AUTHORIZING THE WAIVING OF BIDDING REQUIREMENTS BY
TWO-THIRDS VOTE TO PURCHASE PROPERTY TAX BILLING SOFTWARE

WHEREAS, the City of Bowie desires to further automate the issuance and collection of business personal property taxes; and,

WHEREAS, the City of Bowie issues more than 1,200 business personal property tax bills annually; and

WHEREAS, the City of Bowie expects to collect nearly $1.8 million in business personal property taxes during Fiscal Year 2009; and,

WHEREAS, Tyler Technologies was selected through a competitive bidding process as the City of Bowie’s financial software system provider; and,

WHEREAS, Tyler Technologies offers a tax billing module that is compatible with the City’s other financial applications; and,

WHEREAS, there are sufficient funds in the Reserve for Contingencies account for the purchase; and,

WHEREAS, it is in the best interest of the City of Bowie to issue a purchase order to Tyler Technologies in the amount of $20,950 to purchase the tax billing software module, including initial set up and training costs.

NOW, THEREFORE BE IT RESOLVED, by the Council of the City of Bowie, Maryland that for good cause shown the Council, by a two-thirds vote in accordance with Section 61(b) of the Charter, hereby waives bidding requirements; and

NOW, THEREFORE BE IT FURTHER RESOLVED, by the Council of the City of Bowie, Maryland, that the Council authorizes the City Manager to issue a purchase order to Tyler Technologies in the amount of $20,950.

INTRODUCED AND PASSED by the Council of the City of Bowie, Maryland at a Regular Meeting on October 6, 2008.

_________________________
G. Frederick Robinson, Mayor

ATTEST:

_________________________
Pamela A. Fleming, City Clerk