REPORT TO COUNCIL
SUBJECT
Title
Authorize a Change Order Increasing the Agreement with Can/Am Technologies, Inc. by $133,660.36 to add Teller Online with Elavon Integration and Implementation Services for the Teller Implementation Project and Approve Budget Modification No. 18 in the Amount of $33,202 (F26-418)
Report
REPORT IN BRIEF
Approval is requested to authorize a change order to the Contract with Can/Am Technologies, Inc. (CanAm) of Lakewood, CO, for Teller Online with Elavon integration and implementation services adding $133,660.36, for a new purchase agreement total of $728,766.36. Approval is also requested for a Budget Modification in the amount of $33,202.
EXISTING POLICY
Pursuant to Chapter 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
Further, Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitation of bids or proposals would be impractical, unavailing or impossible.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by affirmative votes of at least four members to authorize the transfer of unused balances appropriated for one purpose or another, or to appropriate available revenue included in the budget.
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 administration activity that will not result in direct or indirect physical changes in the environment.
BACKGROUND AND DISCUSSION
The Teller Implementation Project is a central component of the City’s financial modernization strategy, intended to improve operational efficiency, financial controls, and customer service through upgraded payment processing technology. The Teller system was initially deployed to support in-person cashiering and payment processing at select locations, with integration to the City’s Oracle Fusion Cloud Enterprise Resource Planning (ERP) system. While Teller improved transaction management and reporting, the current configuration does not support online payment for most non-utility City invoices using credit cards or electronic payment methods. As demand for secure and convenient digital services has increased, this gap has become more significant.
Staff is requesting Council authorization to issue a change order with Can/Am Technologies, Inc. to implement Teller Online with Elavon payment processing integration and related implementation services. Teller Online is a web-based payment portal that will enable residents and customers to pay for a broad range of City invoices, tax payments and certain permit fees online by credit card or e-check. This enhancement expands online payment capabilities beyond the City’s existing utility billing platform and aligns with industry standards for digital service delivery.
Integration with Elavon will provide secure credit card processing and ensure compliance with Payment Card Industry (PCI) data security requirements. It will also support streamlined reconciliation of electronic payments within the City’s financial systems. The project is structured to leverage existing investments in the Teller system and Oracle Fusion ERP, minimizing operational disruption.
Implementation will be coordinated between Finance, Information Technology, Public Safety and customer service teams and will include:
• Configuration of the online portal to support multiple invoice types and payment scenarios.
• Secure, PCI-compliant credit card processing.
• Staff training, business process updates, and public communication to support adoption.
The City’s Software as a Service (SaaS) Agreement and Statement of Work with Can/Am Technologies, Inc. expressly allow for future enhancements and integrations as business needs evolve. The proposed change order is consistent with those provisions and with the City’s procurement and contract administration requirements, which require a documented business need, available funding, and alignment with adopted technology strategies.
Although a competitive process is generally required for contracts exceeding $100,000, the Municipal Code provides exemptions when competition would be impractical, including when integration with an existing proprietary system is required. Because the Teller system is proprietary and already integrated with the City’s ERP environment, engaging with a different vendor would increase risk, cost, and complexity. Additionally, delaying implementation would postpone operational efficiencies and continued expansion of digital payment options. It could also increase future costs and prolong reliance on less efficient payment methods.
The proposed change order with Can/Am Technologies, Inc. for Teller Online with Elavon Integration and Implementation Services will increase the agreement amount by $133,660.36, for a new not-to-exceed total of $728,766.36. The change order includes:
• $66,471 for implementation services; and
• $67,189.36 for ongoing operating costs associated with the online payment platform.
FISCAL IMPACT
Budget for the implementation and year one of service for Teller Online with Elavon Integration is available in Fund 7027 - Technology and Communications Services Fund under Program 15200 - Information Technology Services and Support, Attachment 2. Funding for subsequent years will be incorporated as part of future budget cycles. Information Technology Services are funded through transfers from other funds via internal service charges.
Budget Modification No. 18 has been prepared to appropriate $33,202 from Fund 7027 - Technology and Communications Fund for the Teller implementation project.
Budget Modification No. 18
FY 2025/26
|
|
Current |
Increase/ Decrease |
Revised |
|
Technology and Communication Services Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 837300 - Teller Online |
$100,459 |
$33,202 |
$133,661 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Technology and Communications Reserve |
$2,758,417 |
($33,202) |
$2,725,215 |
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:
- Approve the change order to the software as a service agreement with Can/Am Technologies, Inc. in substantially the same form as Attachment 1 to the report to increase the agreement amount by $133,660.36 for a new not to exceed total of $728,766.36;
- Authorize the City Manager to execute the change order when all necessary conditions have been met;
- Authorize the City Manager to amend the agreement, and to increase compensation subject to budget availability, need, and negotiated pricing; and
- Approve Budget Modification No. 18 in the amount of $33,202.
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, Finance
Reviewed by: Kathleen Boutté Foster, Director, Information Technology
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Teller Implementation - Proposal 2025-2
2. 837300 Budget Project Summary