TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35488 with Geotab USA, Inc., of Las Vegas, NV, for the purchase of vehicle telematics software, hardware, and installation services, to increase the annual contract amount by $500,000 to $670,620, and authorize a 10 percent contingency of $67,062, for a revised total annual contract amount not to exceed $737,682; and
Increase appropriation in the Fleet Services Fund Group in the Financial Management Department by $392,682, offset by funds available generated by revenue collected from user departments through the Fleet Memorandum of Understanding (MOU). (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 35488 with Geotab USA, Inc. (Geotab), to increase the annual contract amount to $737,682, to continue and expand the provision of vehicle telematics software, hardware, and installation services for the City of Long Beach’s (City) vehicles. The Fleet Services Bureau (Fleet) manages the telematics system that is installed on City vehicles needed to capture important operating and usage data. Geotab provides the software for the City’s vehicle telematics system, which is currently installed on 702 vehicles, totaling 32 percent of the City’s fleet.
Modern telematics systems such as Geotab are critical tools for optimal fleet management. Geotab allows for real-time data collection, which enables accurate and timely fleet maintenance, asset management and opportunities for safer driving and accident reduction. The existing contract was awarded by the City Council as part of its adoption of RES 20-0009 on January 14, 2020, for two years, with the option to renew for seven additional one-year periods. The original contract amount was $170,762 plus a 10 percent contingency of $17,076 in year one, and an annual amount of $170,620 for monitoring service in year two, for a total contract amount not to exceed $358,458 over a two-year period, with the option to renew the contract for seven additional one-year periods at an annual amount of $170,620. The City is currently in the fourth year of the contract.
The number of units equipped with Geotab has increased since the contract was originally awarded, with an additional 960 City vehicles requiring installation of telematics devices, increasing the total equipped to over 1,600 City vehicles. The additional installations and new annual service obligations necessitate an increase in purchasing authority above the original amount authorized by the City Council. Fleet staff analyzed costs and expenditures for the monthly telematics software support, hardware and installation services and projects the $737,682 in annual spending will be sufficient for the remainder of the contract term.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on August 23, 2023, Purchasing Agent Michelle Wilson on August 22,2023, and by Revenue Management Officer Geraldine Alejo on August 31, 2023.
SUSTAINABILITY
Fleet telematics systems that combine GPS telematic data can help reduce emissions and costs by improving operational efficiency through reduced idling, better routing, and lower speeds.
TIMING CONSIDERATIONS
City Council action is requested on September 19, 2023, to ensure there is no interruption to services.
FISCAL IMPACT
The requested amendment will increase the annual contract with Geotab USA, Inc., by $500,000 for a revised total annual contract amount not to exceed $737,682, including a 10 percent contingency of $67,062. The total contract amount for a nine-year contract term will not exceed $4,955,170. An appropriation increase of $392,682 is requested in the Fleet Services Fund Group in the Financial Management Department, offset by funds available generated from charges to departments and collected as part of the Fleet Services Memorandum of Understanding (MOU). If needed, the Financial Management Department will request subsequent years’ appropriation as part of the annual budget process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER