TITLE
Recommendation to adopt Specification No. ITB TI18-064 and award a contract to Platt Security Systems, Inc., of Signal Hill, CA, for the purchase and delivery of Razberi intelligent surveillance appliances, for a total amount not to exceed $240,000;
Authorize City Manager, or designee, to execute a lease-purchase agreement and related financing documents with Banc of America Public Capital Corp, for the financing of network camera components, in an amount not to exceed $270,000, including escrow fees, principal and interest, payable over a five-year period; and
Increase appropriations in the General Services Fund (IS 385) in the Technology and Innovation Department (TI) by $240,000, offset by the proceeds of the lease-purchase financing. (Citywide)
DISCUSSION
On April 6, 2017, the Technology and Innovation Department (TI) transmitted a memorandum to the Mayor and City Council that outlined the Network Camera Program. The City’s Genetec and closed-circuit camera system has been implemented over a ten-year period, and over the past few years, camera and telecommunication component aging has led to outages and an increased need for routine repair and maintenance. The City’s current camera recorders in the field (installed on traffic signals or in communication closets) are outdated, unreliable, and are not compatible with the current version of the Genetec system. Therefore, City Council approval is requested to enter into a contract with Platt Security Systems, for the purchase and delivery of Razberi intelligent surveillance appliances. These Razberi units are designed to store video footage from surveillance cameras, meet the latest software system requirements, and will be compatible with the current and future versions of the Genetec system. This Network Camera Program purchase was included in the equipment category of the critical technology infrastructure needs presentation to the City Council on December 5, 2017.
The bid was advertised in the Long Beach Press-Telegram on January 27, 2018, and 2,688 potential bidders specializing in technology hardware/software and services were notified of the bid opportunity. Of those bidders, 31 downloaded the bid via the City’s electronic bid system. The bid document was also made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 22 local, minority, and women-owned business groups. Five bids were received on February 21, 2018. Of those five bidders, none were Minority-owned Business Enterprises (MBEs), none were Women-owned Business Enterprises (WBEs), two were certified Small Business Enterprises (SBEs), and none were Long Beach businesses (Local). Platt Security Systems, Inc., of Signal Hill, CA (a SBE), was the lowest responsible bidder.
City Council approval is also requested to execute a five-year lease-purchase agreement, through the City’s Master Lease Agreement with Banc of America Public Capital Corp, for the financing of network camera components in an amount not to exceed $270,000 including escrow fees, principal and interest, payable over a five-year period. The lease payments and/or combined lifecycle costs will be $54,000 per year.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, 191 Long Beach vendors were notified to submit bids, of which two downloaded and none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 29, 2018 and by Budget Analysis Officer Julissa José-Murray on April 11, 2018.
TIMING CONSIDERATIONS
City Council action is requested on May 1, 2018, to ensure the network video recorders can be installed without service interruptions.
FISCAL IMPACT
The total cost of the purchase and delivery of the Razberi intelligent surveillance appliances will not exceed $240,000. The total amount of the lease-purchase agreement with Banc of America Public Capital Corp will not exceed $270,000, which includes principal, interest, and fees. Appropriation for the purchase and delivery of the Razberi appliances in the amount of $240,000 is unbudgeted, and an appropriation increase in the General Services Fund (IS 385) in the Technology and Innovation Department (TI) is requested.
The lease payments will be made throughout the next five years and will not exceed $54,000 per year. The FY 18 portion of the lease payment (debt service), inclusive of escrow fees are projected at $18,000. It is anticipated that there is sufficient appropriation in the General Services Fund (IS 385) in the Technology and Innovation Department (TI) to funds these costs in FY 18. If the combined costs of debt service related to critical technology infrastructure investments exceeds current appropriation a budget adjustment may need to be requested at year-end offset by charges to user departments and funds. This funding plan is consistent with the plan detailed in the December 5, 2017 critical technology infrastructure needs presentation to the City Council. The debt service costs for future years will be incorporated into the FY 19 General Services Fund budget and charged out to user departments, which is also consistent with the critical technology infrastructure needs funding plan. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Lea Eriksen
INTERIM DIRECTOR OF TECHNOLOGY AND INNOVATION
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER