Consideration and Approval of Contract: Approve the Software Agreement with Emphasys Computer Solutions, Inc. in the amount of $363,406.00, plus the current local tax rate for Elite Cloud Migration.
 

1. Approve the five-year Software Agreement with Emphasys Computer Solutions, Inc. (Emphasys) for implementation and software maintenance in the amount of $363,406.00, plus the current local tax rate; and
2. Authorize the City Manager to execute all necessary documents.

The City of Flagstaff is requesting approval to enter into a Software Agreement with Emphasys to transition our current on-premises Elite system to a cloud-hosted environment. Elite is a mission-critical software solution that supports the Flagstaff Housing Authority (FHA) operations, and moving it to the cloud will significantly improve performance, security, and reliability.

Currently, the Elite system is hosted on City-owned infrastructure, which requires considerable IT staff resources for maintenance, updates, and troubleshooting. This model presents challenges in scalability, uptime, and disaster recovery. By moving to a vendor-hosted cloud environment, the City will benefit from improved system availability, more frequent and seamless updates, stronger security protections aligned with industry standards, and reduced dependence on internal infrastructure.

This transition aligns with the City’s broader IT modernization strategy to reduce risk, improve service delivery, and leverage cloud-based solutions where feasible. Approval of this contract will ensure that Elite remains a stable, secure, and sustainable platform for City operations into the future.

Project Name: Elite Cloud Migration
Cost: $74,618 for current fiscal year; $288,788 for the remaining 5 year contract for a total of $363,406 
Account Number Budgeted:
001-01-014-0041-1-4231 - $12,000 for Cloud Implementation
FHA GL Accounts
10-000-419091 - $15,654.50
20-000-419091 - $15,654.50
30-000-419091 - $15,654.50
50-000-419091 - $15,654.50
FY Budgeted Amount: $74,618, plus current local tax rate
Grant Funded: No
Funding Source: General Fund $12,000, Flagstaff Housing Authority $62,618
 

None

1. Approve the purchase; or
2. Do not approve the purchase and do not proceed with the migration.

The City of Flagstaff has relied on the Elite system by Emphasys for many years to manage critical services for some of our most vulnerable citizens. While the software has been essential to our operations, its current on-premises implementation has proven increasingly problematic. City IT staff have had to devote substantial time and effort to address recurring technical issues, maintain system performance, and manage updates and patches. This has strained internal resources and limited our ability to focus on higher-value initiatives.

In addition to the technical challenges, hosting Elite in our own data center places the full responsibility for system security, disaster recovery, and data protection on the City. Given the sensitivity of the information stored in Elite, this creates ongoing risk. By transitioning to a vendor-hosted cloud environment, we will offload the responsibility of day-to-day system support and security to Emphasys, who can apply dedicated expertise, advanced safeguards, and more frequent updates than the City can provide in-house.

This move will not only alleviate the recurring technical burdens we currently face but will also enhance our security posture, ensuring that the personal data of those we serve is protected at the highest level possible.

Supports Chapter XIII - Neighborhoods, Housing, & Urban Conservation

None

Software supports the 10-year housing plan.

Application Modernization