TITLE
Recommendation to authorize City Manager, or designee, to execute an agreement, and all necessary documents including subsequent amendments, with Dell Marketing, LP (Dell), utilizing the approved Dell Master Purchase Agreement No. 28280, to purchase security system hardware for use at the Long Beach Airport, in a total amount not to exceed $575,000;
Authorize City Manager, or designee, to execute a lease-purchase agreement, and related financing documents, with Banc of America Public Capital Corp, of San Francisco, CA, for the financing of security system hardware, in an amount not to exceed $615,000 inclusive of principal, interest, and escrow fees, payable over a five-year period;
Increase appropriations in the Airport Fund Group in the Airport Department by $123,000, offset by funds available; and
Increase appropriations in the General Services Fund Group in the Technology and Innovation Department by $123,000, offset by a transfer from the Airport Fund Group. (District 5)
DISCUSSION
City Council approval is requested to execute an agreement to purchase security system hardware for use at the Long Beach Airport (Airport) utilizing the already approved Dell Master Purchase Agreement No. 28280 (Master Agreement), and execute a lease-purchase agreement through the City’s Master Lease Agreement (Lease Agreement) with Banc of America Public Capital Corp (BAPCC), for the financing of security system hardware for a five-year period.
Per federal regulations, the Airport is required to continuously maintain a 24-hour access control and identification media system (Access Control) to prevent unauthorized entry to the secured areas of the Airport. Access Control integrates a network of cameras, alarms, servers, gates, doors, and hardware to maintain non-stop monitoring of the Airport to identify and reduce existing or potential risks, threats, targets, and vulnerabilities.
The existing security system hardware associated with the Airport’s Access Control is in its sixth year of use and is no longer supported by its manufacturer, Dell. Repairs are expensive, and parts are becoming more challenging to procure. Additionally, the security system hardware’s capacity can no longer adequately support the increased needs of today’s more modern Access Control equipment such as cameras and software. Lastly, the existing security system hardware will be unable to support any additional cameras associated with the new Ticketing Lobby and Consolidated Baggage Claim facilities. Replacement of the security system hardware is a critical need for the Airport.
In collaboration with the Department of Technology and Innovation (TID) and the Department of Financial Management, the procurement and financing of new security system hardware has been identified through existing City contracts. The new security system hardware will be acquired from Dell, utilizing the Master Agreement, which was approved by the City Council on April 15, 2003.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on October 18, 2021, Business Services Bureau Manager Tara Mortensen on October 21, 2021, and by Budget Analysis Officer Greg Sorensen on October 27, 2021.
TIMING CONSIDERATIONS
City Council action is requested on November 16, 2021, to allow sufficient time to execute appropriate financing agreements and ensure timely replacement of the Airport’s security system hardware.
FISCAL IMPACT
The total cost to purchase the security system hardware will not exceed $575,000. The total amount of the lease-purchase agreement with Banc of America Public Capital Corp will not exceed $615,000, inclusive of principal, interest, and escrow fees. The lease payments will be made over the next five years and will not exceed $123,000 annually. The debt service payments will be issued by TID who is the holder of the Master Agreement. An appropriation increase of $123,000 is requested in the Airport Fund Group in the Airport Department, to transfer to TID, offset by funds available, for the first annual payment. An appropriation increase of $123,000 is requested in the General Services Fund Group in TID, offset by a transfer of funds from the Airport Department. Appropriation for future annual payments will be requested through 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.
BODY
[Enter Body Here]
Respectfully Submitted,
CYNTHIA GUIDRY
DIRECTOR, LONG BEACH AIRPORT
LEA D. ERIKSEN
DIRECTOR, TECHNOLOGY AND INNNOVATION
KEVIN RIPER
DIRECTOR, FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER