HomeMy WebLinkAboutItem 21 - Online Debit, Credit Card & Electronic Fund Transfer ACH Merchant Payment Processing ServicesFinance and Management Services
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Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 2, 2023
TOPIC: Online Debit and Credit Card and Electronic Fund Transfer Automated Clearing
House (ACH) Merchant Payment Processing Services
AGENDA TITLE
Approve Amendment to Agreement with TSYS Merchant Solutions, LLC DBA Global
Payments, Inc. for Online Debit and Credit Card and Electronic Fund Transfer
Automated Clearing House (ACH) Merchant Payment Processing Services, Support
and Maintenance, and Purchase of Point -of -Sale Payment Terminals for a New
Agreement Amount Not to Exceed $2,022,400
RECOMMENDED ACTION
Authorize the City Manager to execute a second amendment to the agreement with
TSYS Merchant Solutions, LLC, doing business as Global Payments, Inc., for online
debit and credit card payment processing, electronic fund transfer Automated Clearing
House ("ACH") payment processing, support and maintenance, and purchase of
payment terminals. The amendment includes a base contract increase in the amount of
$4,000 and general contingency increase in the amount of $120,000, for a new
agreement amount not to exceed $2,022,400. The not to exceed amount includes a
general contingency of $362,400 over the maximum life of the agreement. The
amendment adds a base term commencing May 2, 2023 and expiring December 31,
2025, with provision for two renewal options (a three-year and a one-year), subject to
non -substantive changes approved by the City Manager and City Attorney.
DISCUSSION
On December 6, 2022, the City Council approved a renewal agreement with TSYS
Merchant Solutions, LLC, DBA Global Payments Direct, Inc. ("TSYS"), to support the
City's Europay, MasterCard, and Visa ("EMV") Chip and PIN cashiering software and
hardware upgrades to improve the security of debit and credit payment transactions for
Santa Ana residents and customers. Now, City staff would like to propose a contract
amendment to support new system integrations for various City agencies and to provide
added payment services.
The City uses TSYS for all walk-in credit card payments made at City facilities, including
City Hall cashiering counters, Police Department Traffic and Records Divisions, and the
Santa Ana Zoo. TSYS will also provide an e-Commerce gateway transaction integration
Online Debit & Credit Card and Electronic Fund Transfer Automated Clearing House
(ACH) Merchant Payment Processing Services
May 2, 2023
Page 2
for the EMV Chip and PIN cashiering software and hardware upgrade. The proposed
contract amendment would provide more payment options and fewer restrictions for
other City agencies currently undergoing information system enhancements and
upgrades. Modernization projects in process include the following: the Santa Ana Zoo's
new ticketing system; the new Land Management System used by the Planning and
Building Agency and Public Works Agency; the new parks reservation management
system; and the new rental registry system.
Staff recommends the approval of a second amendment to agreement with TSYS to
expand the scope of payment processing services to include online debit and credit
card and electronic fund transfer (ACH) payment processing services. To provide more
payment options and fewer restrictions for the departments going through system
upgrades, the proposed second agreement includes contingency options for additional
systems to integrate into TSYS' merchant processing and gateway services.
Finance staff would like to streamline all online debit and credit and electronic fund
transfer (ACH) payment transactions. TSYS (aka Global Payments/OpenEdge) has
unique institutional knowledge of the City's payment processing systems and is a
leading provider of merchant processing payment technology and software solutions.
The alternative to using TSYS could necessitate significant cost to implement an
equivalent third -party merchant payment processing service for new software and
integration. Therefore, staff recommends the approval of the proposed amendment to
provide convenient payment processing services for the new systems noted above.
FISCAL IMPACT
Funding for the agreement is budgeted in various departmental Contract Services
Professional accounts (No. Various-62300), allocated based upon use of the services.
Proposed budgets for future fiscal years will include contract funding, as summarized
below.
Accountin
Accounting
Annual
g Unit -
Fund
Unit -
Support
Contracted
Rate
Maximum
FY
Account
Descri
Accounting
& Maint.
Amount
Increase
Amount
No.
ption
No.
(Contg.)
Description
Various-
Contract
2022-23
Various
Services
$5,000
$199,500
$41,325
$245,825
62300
Professional
Various-
Contract
2023-24
Various
Services
$5,000
$195,500
$45,325
$245,825
62300
Professional
Online Debit & Credit Card and Electronic Fund Transfer Automated Clearing House
(ACH) Merchant Payment Processing Services
May 2, 2023
Page 3
Various-
Contract
2024-25
62300
Various
Services
$5,000
$200,000
$46,000
$251,000
Professional
Various-
Contract
2025-26
62300
Various
Services
$5,000
$210,000
$47,500
$262,500
Professional
Various-
Contract
2026-27
62300
Various
Services
$5,000
$220,000
$49,000
$274,000
Professional
Various-
Contract
2027-28
Various
Services
$5,000
$230,000
$50,500
$285,500
62300
Professional
Various-
Contract
2028-29
62300
Various
Services
$5,000
$240,000
$52,000
$297,000
Professional
Various-
Contract
2029-30
62300
Various
Services
$5,000
$125,000
$30,750
$160,750
Professional
Subtotal:
Subtotal:
Subtotal:
Grand
Total:
$40,000
$1,620,000
$362,400
$2,022,400
EXHIBIT(S)
1. Second Amendment to Agreement with TSYS Merchant Solutions, LLC DBA
Global Payments, Inc.
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Kristine Ridge, City Manager
DocuSign Envelope ID: F0854AOF-6DO9-4FOA-9FF8-7BO43E39218A EXHIBIT 1
SECOND AMENDMENT TO RENEWAL AGREEMENT WITH
TSYS MERCHANT SOLUTIONS, LLC dba GLOBAL PAYMENTS, INC.
THIS SECOND AMENDMENT to the above -referenced agreement is made and entered into on
this 2nd day of May 2023, by and between TSYS Merchant Solutions, LLC, dba Global Payments,
Inc. & Its Subsidiaries, a Georgia corporation ("Consultant"), and the City of Santa Ana, a charter
city and municipal corporation organized and existing under the Constitution and laws of the State of
California ("City").
RECITALS
A. On December 6, 2022, the City and Consultant entered into a Renewal Agreement (A-2022-
233) for debit and credit card merchant processing services, including gateway transaction
integration and support services through December 31, 2025, with options to extend the term.
The Agreement is current and in effect.
B. On December 20, 2022, the parties entered into a First Amendment to the Renewal Agreement
(A-2022-251) relating to card services terms & conditions for government entities ("First
Amendment").
C. The Parties now wish to further amend the Renewal Agreement to expand the scope of
services for various City departments and increase the overall compensation in light of the
increased services provided by the Consultant.
D. The parties also wish to amend the Compensation for the Renewal Agreement to cover
equipment purchases.
The Parties therefore agree:
Section 1, Scope of Services, is hereby amended as follows:
Consultant shall provide City with the option right for Consultant to provide on-line debit and
credit card and electronic fund transfer Automated Clearing House (ACH) merchant processing
together with associated on-line gateway transaction integration and support services for the
City's Clariti Land Management System; the City's CivicPlus CivicRec Parks and Recreation
Reservation System; the City's Centaman Zoo Ticketing System; the City's 3Di Systems
Rental Registry Fee Program; and provision of services contemplated by the Renewal
Agreement, as amended, to additional City departments, per the Change Order Contingency
sections, detailed below. Consultant shall also sell to City point of sale (POS) payment
terminal equipment, necessary for purposes of cashiering for City departments, including but
not limited to, the City's Centaman Zoo Ticketing System.
2. Section 2, Compensation, is hereby amended as follows:
City agrees to pay, and Consultant agrees to accept as total payment for its services for City,
the rates and charges identified in the Merchant Application. Said compensation shall also
include costs for equipment purchases and these services by including an increase in the base
contract amount of $4,000 in Fiscal Year 2022-23. The contingency amount shall be increased
Page 1 of 3
DocuSign Envelope ID: F0854AOF-6D09-4FOA-9FF8-7B043E39218A
by a total amount not to exceed $363,000 during said agreement's term; allocated at $12,000
per fiscal year period for Fiscal Years 2022-23 and 2029-30, and allocated at $16,000 per fiscal
period for Fiscal Years 2023-24 through 2028-29, to cover the cost of said optional expanded
services for a combined maximum amount of $2,022,400, which sum shall constitute the
Maximum Contract Compensation Cap.
a. The breakdown of these expendable funds by fiscal year shall be as set forth in the
Contract Expenditure Table shown below:
Contract Expenditure Table
Fiscal Year
Support &
Maintenance
Amount
Base Contract
Amount
Contingency
Amount
Maximum Contract
Amount
FY 2022-23
$5,000
$199,500
$41,325
$245,825
FY 2023-24
$5,000
$195,500
$45,325
$245,825
FY 2024-25
$5,000
$200,000
$46,000
$251,000
FY 2025-26
$5,000
$210,000
$47,500
$262,500
FY 2026-27
$5,000
$220,000
$49,000
$274,000
FY 2027-28
$5,000
$230,000
$50,500
$285,500
FY 2028-29
$5,000
$240,000
$52,000
$297,000
FY 2029-30
$5,000
$125,000
$30,750
$160,750
$40,000
$1,620,000
$362,400
$2,022,400
b. Change Order Contingency: During the term of this Agreement, City may
request optional services of Consultant at mutually agreed -upon scope and fees.
Change Order
No extra work or services may be undertaken unless a written "Change Order"
is first given by the Contract Officer or his/her designee, to Consultant,
incorporating therein any material change in the scope, fees and/or
administration of this Agreement proposed by City, in accordance with the
Additional Work or Services provisions of this Agreement. A Change Order
cannot amend this Agreement but serves to obtain different or additional
services.
2. Additional Work or Services
(a) Extra Work or Services
Page 2 of 3
DocuSign Envelope ID: F0854AOF-6DO9-4FOA-9FF8-7BO43E39218A
City shall have the right at any time during the performance of the work
or services set forth in this Agreement, without invalidating said
Agreement or any amendments thereto, to elect to exercise any existing
option specified in the Scope of Services for extra work or services or
to order extra work or services directly related to the general scope of
services, including third party integrations to allow City fullest access
to agreed -to services and support, or to change the time or manner of
delivery of any work or services pursuant to a duly executed Change
Order or to expend previously appropriated, but unspent contingency
funds authorized to be carried forward by the Executive Director of
Finance and Management Services to cover expenses for work or
services agreed to by the parties but exceeding any annual City fiscal
year compensation amount cap initially specified under the
Compensation provisions of this Agreement or thereby make changes
by altering, adding to or deducting from said work or services.
3. Except as modified by this Second Amendment, all terms and conditions of the Renewal
Agreement, as amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment the date and year
first above written.
CITY OF SANTA ANA
KRISTINE RIDGE
City Manager
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
John M. Funk
Chief Assistant City Attorney
RECOMMENDED FOR APPROVAL:
k&"
Kathryn Downs (Apr 18, 202313:56 PDT)
Kathryn Downs, CPA
Executive Director,
Finance and Management Services Agency
ATTEST:
Jennifer L. Hall
City Clerk
CONSULTANT
FD
DocuSigned by:
Av .Q L. QUO. SB
By: avi Green
Title: Corporate Secretary
Page 3 of 3
DocuSign
Certificate Of Completion
Envelope Id: F0854AOF6D094FOA9FF87B043E39218A Status: Completed
Subject: Complete with DocuSign: City of Santa Ana - 2nd Amendment
Source Envelope:
Document Pages: 3 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Michelle Sweeney
AutoNav: Enabled MSweeney@tsys.com
Envelopeld Stamping: Enabled IP Address: 66.219.222.130
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
Record Tracking
Status: Original Holder: Michelle Sweeney Location: DocuSign
4/14/2023 3:11:43 PM MSweeney@tsys.com
Signer Events Signature Timestamp
D...Sign1d by:
David L. Green Sent: 4/14/2023 3:13:57 PM
david.green@globalpay.com G Viewed: 4/18/2023 12:55:47 PM
Secretary e858729n465E467... Signed: 4/18/2023 12:55:54 PM
Global Payments Inc.
Security Level: Email, Account Authentication Signature Adoption: Pre -selected Style
(None) Using IP Address: 195.167.25.240
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Sam Baldwin
T Sent: 4/18/2023 12:55:55 PM
sbaldwin@tsys.com 1
ED
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Carl Van LaethemT Sent: 4/18/2023 12:55:56 PM
carl.vanlaethem@globalpay.com COP
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
TMSMerchantLegalRequestCOPIED Sent: 4/18/2023 12:55:56 PM
tmsmerchantlegalrequests@tsys.com
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events
Signature
Timestamp
Notary Events
Signature
Timestamp
Envelope Summary Events
Status
Timestamps
Envelope Sent
Hashed/Encrypted
4/14/2023 3:13:57 PM
Certified Delivered
Security Checked
4/18/2023 12:55:47 PM
Signing Complete
Security Checked
4/18/2023 12:55:54 PM
Completed
Security Checked
4/18/2023 12:55:56 PM
Payment Events
Status
Timestamps
3-29-2023 Final Second Amendment TSYS-
GP (270269.1) - CAO and Vendor Signed
Final Audit Report 2023-04-18
Created: 2023-04-18
By: Kristin Andrade (kandrade@santa-ana.org)
Status: Signed
Transaction ID: CBJCHBCAABAA8iESyduNWJsOxfQHHWyy_1l6vKdLE7JU
"3-29-2023_Final _Second Amendment_TSYS-GP (270269.1) -
CAO and Vendor Signed" History
Document created by Kristin Andrade (kandrade@santa-ana.org)
2023-04-18 - 8:52:03 PM GMT- IP address: 98.153.69.210
Document emailed to Kathryn Downs (kdowns@santa-ana.org) for signature
2023-04-18 - 8:52:20 PM GMT
Email viewed by Kathryn Downs (kdowns@santa-ana.org)
2023-04-18 - 8:56:16 PM GMT- IP address: 98.153.69.210
G Document e-signed by Kathryn Downs (kdowns@santa-ana.org)
Signature Date: 2023-04-18 - 8:56:37 PM GMT - Time Source: server- IP address: 98.153.69.210
Agreement completed.
2023-04-18 - 8:56:37 PM GMT
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