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HomeMy WebLinkAboutPO 6797: FUNDING OF THE FIVE-YEAR SOFTWARE SEVICE WITH TYLER TECHNOLOGIES P. O. No. 6797 08/30/19 sv ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS, ESTABLISHING A SINKING FUND FOR THE FUNDING OF THE FIVE-YEAR SOFTWARE SERVICE AGREEMENT WITH TYLER TECHNOLOGIES OF DALLAS, TEXAS FOR THE PURCHASE AND IMPLEMENTATION OF AN ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM AND MUNICIPAL COURT SYSTEM; PROVIDING FOR THE LEVYING AND COLLECTION OF A SUFFICIENT TAX TO PAY THE AGREED AMOUNT ON SUCH OBLIGATION; PLEDGING SUCH FOR 'THE PAYMENT OF SAID AMOUNT; CONTAINING OTHER INCIDENTAL AND RELATED MATTERS; PROVIDING A SEVERABILITY CLAUSE;REPEALING ALL CONFLICTING ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS,the City of Port Arthur, Texas (hereinafter referred to as the "City"), desires to purchase a five-year software service agreement with Tyler Technologies of Dallas, Texas, for the purchase and implementation of an Enterprise Resource Planning(ERP)System and Municipal Court System for the City,subject to the provisions of state law and the City's Code of Ordinances; and WHEREAS, it also is the desire of the City Council of the City of Port Arthur to replace the current Enterprise Resource Planning(ERP) System and Municipal Court System; and WHEREAS, on or about September 10, 2019, the City approved a Service Agreement with Tyler Technologies of Dallas, Texas, relative to the purchase and implementation of an Enterprise Resource Planning (ERP) System and Municipal Court System for the City; and WHEREAS,the term of that Service Agreement extends beyond the current(2018-2019) fiscal year, and terminates during the 2023-2024 fiscal year on September 30, 2024; and WHEREAS, Tyler Technologies of Dallas, Texas, and the City acknowledge that, pursuant to the provisions contained in Article XI, Sections 5 and 7 of the Texas Constitution,the City may not enter into unfunded debt, i.e., debt beyond the current fiscal year, for any purpose without creating a sinking fund of at least two percent (2%) of the amount of such debt for the payment of said debt; and WHEREAS,Tyler Technologies of Dallas,Texas,and the City further acknowledge at the time long-term debt is created, the City must provide for the assessment and collection on an annual basis of a sufficient sum of money for payments accruing during any subsequent budget year. NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That, all the above premises are hereby found to be true and correct and are hereby approved and incorporated into the body of this Ordinance as if copied in their entirety. Section 2. That, from and after the effective date of this Ordinance, the City's Chief Financial Officer is hereby directed to create and maintain, through September 30, 2024, unless said Software Agreement is terminated pursuant to its terms before such date, a Sinking Fund for the payment of the debt created by such Service Agreement. The Sinking Fund shall consist of two percent(2%)of the gross payment due and owing Tyler Technologies of Dallas,Texas through September 30, 2024, as reflected in Exhibit B of the Software Agreement. Section 3. That, the proceeds placed into the Sinking Fund, for the current fiscal year (2018-2019)and succeeding fiscal years shall be from the City's ad valorem tax and there shall be annually assessed and collected in due time, form and manner, a direct and continuing ad valorem tax on all taxable property within the corporate limits of the City at a rate from year to year,within the limitations prescribed by law, on each one hundred dollars' valuation of taxable property as will be sufficient to provide funds to satisfy any obligations under the Software Agreement during any budget year. Section 4. That, the City's Chief Financial Officer shall keep and maintain all records relating to the Sinking Fund and all such other related documentation and accounts, and is hereby authorized and instructed to maintain all funds necessary in the Sinking Fund to prevent the creation, at any time, of an unconstitutional debt in the terms, conditions, or administration of the Software Agreement. Section 5. That,all ordinances,orders or resolutions heretofore passed and adopted by the City Council of the City of Port Arthur, Texas, are hereby repealed to the extent that said ordinances, orders or resolutions, or parts thereof, are in conflict herewith. Section 6. That, if any section, article, paragraph, sentence, clause, phrase or word in this Ordinance is held invalid or unconstitutional by a court of competent jurisdiction,such holding shall not affect the validity of the remaining portions of this Ordinance; and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, and further declares that such remaining portions shall remain in full force and effect. Section 7. That, this Ordinance shall take effect and be in full force from and after its passage, as provided by state statute and the Code of Ordinances of the City of Port Arthur,Texas. READ, ADOPTED AND APPROVED on this 10th day of September A.D., 2019, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman"Bill" Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: 4PL,.g.., 1 Valecia R. izeno, City Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, Interim City Manager Kandy Daniel, Interim Director of Finance