REPORT TO COUNCIL
SUBJECT
Title
Award two Contracts and Authorize the Issuance of a Purchase Agreement to Catalyst Consulting Group for the Implementation of Salesforce Constituent Relationship Management (CRM) System, Licensing, and Maintenance and Support (F25-215)
Report
REPORT IN BRIEF
Approval is requested to take the following actions to approve two contracts to implement a new CRM system:
- Award a contract to Catalyst Consulting Group of Chicago, IL for the implementation of a replacement CRM system and CRM mobile application with a not-to-exceed amount of $800,945;
- Authorize the issuance of a purchase agreement for up to ten years in the amount not-to-exceed $2,562,000 to Catalyst Consulting Group for licensing of Salesforce Public Sector Solutions CRM System within the Government Cloud and Bucher-Suter licensing for telephony integration to the CRM (the licensing fee will be paid on an annual basis);
- Award a contract to Catalyst Consulting Group for up to ten years with a not-to-exceed amount of $369,000 for maintenance and support of the Salesforce Public Sector Solutions CRM System, Mobile Application, and Bucher-Suter telephony integration system;
- Delegate authority to the City Manager to approve a 10% contingency for the project with a not-to-exceed amount of $80,095;
- Delegate authority to the City Manager to amend these agreements for purchases of additional licenses and services, subject to budget availability and if pricing and services remain acceptable; and
- Authorize the City Manager to execute the contracts when all necessary conditions have been met.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals best value process, unless otherwise exempt from the competitive bidding process. City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organization or administrative activity that will not result in direct or indirect physical changes in the environment.
BACKGROUND AND DISCUSSION
The CRM system currently used by the City no longer meets standards for usability or integration with work order/other systems and does not provide a mobile application or satisfactory mobile experience. This has resulted in complaints from residents and staff, inadequate reporting capabilities, inaccurate mapping (GIS) functionality, and challenges in efficiently resolving requests. On April 9th, 2025, Council dropped Study Issue ITD 23-01 Access Sunnyvale Customer Relationship Management System Upgrade to include access designed for Mobile Apps (via RTC 24-0429) and authorized the City to move forward with the RFP process to procure and implement a new CRM.
On March 6, 2025, the City issued a Request for Proposals (RFP) F25-215 for the purchase and implementation of a new CRM system that included a mobile application. The City received nine proposals on April 22, 2025, which were evaluated by staff from Information Technology, Public Safety, Finance, and the Office of the City Manager. After reviewing the proposals, the team conducted interviews with four proposers, went through system demonstrations, and conducted reference checks. The team selected Salesforce Public Sector Solutions offered by Catalyst Consulting Group to replace the City’s current CRM system and to build/maintain a mobile application for the City’s CRM. As a part of the 10-year license contract term, the first five years of subscription costs remain flat.
This solution includes the purchase of Salesforce CRM system licenses, an interface (Bucher-Suter telephony integration licenses) with the Cisco telephony system, project implementation, and ongoing maintenance and support for up to ten years. Details of the implementation process are included in the draft contract in Attachment 1.
In anticipation of replacing the CRM system, the City issued a Request for Qualified Vendors Services (Request# 2026-08-07-0001) in July 2024 for project implementation and change management services. Information Technology Department staff evaluated seven proposals and selected three for in-depth presentations and reference checks. Based on their depth of experience in municipal CRM project management and implementation, resource expertise, and direct experience with the proposed solution, BerryDunn was selected. A contract in the amount of $208,120 will be awarded under the City Manager’s authority.
FISCAL IMPACT
CRM implementation and operating costs funding is available in Fund 7027 - Technology and Communications Services Fund under Project 837280 - CRM Implementation. The project includes both implementation and operating costs over twenty years, and these costs are also included in the Technology and Communications Fund financial plan. There are several optional services/functionalities included in the contracts with license and support costs identified. If all the options are selected, there will be a need to request additional funding as part of the City’s budget process during the upcoming Operating Budget cycle. Information Technology is funded through transfers from other funds in the form of internal service charges.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract to Catalyst Consulting Group of Chicago, IL for the implementation of a replacement CRM system and CRM mobile application with a not-to-exceed amount of $800,945 (Attachment 1);
- Authorize the issuance of a purchase agreement for up to ten years in the amount not-to-exceed $2,562,000 to Catalyst Consulting Group for annual licensing of Salesforce Public Sector Solutions CRM System within the Government Cloud and Bucher-Suter licensing for telephony integration to the CRM (the licensing fee will be paid on an annual basis);
- Award contract to Catalyst Consulting Group for up to ten years with a not-to-exceed amount of $369,000 for maintenance and support of the Salesforce Public Sector Solutions CRM System, Mobile Application, and Bucher-Suter telephony integration system (Attachment 2);
- Delegate authority to the City Manager to approve a 10% contingency for the project with a not-to-exceed amount of $80,095;
- Delegate authority to the City Manager to amend these agreements for purchases of additional licenses and services subject to budget availability, and if providing pricing and services remain acceptable; and
- Authorize the City Manager to execute the contracts when all necessary conditions have been met.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Kathleen Boutté Foster, Chief Information Officer
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Consultant Services Agreement - Implementation
2. Draft Consultant Services Agreement - Maintenance and Support