Report to Mayor and City Council
Monday, November 28, 2016
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO SERVICE CONTRACT AGREEMENT WITH ELECTROSONIC, INC. FOR THE MAINTENANCE, SUPPORT & PROGRAMING FOR THE AUDIO VISUAL EQUIPMENT IN THE COUNCIL CHAMBERS AND AV ROOM, TO EXTEND THE TERM OF THE CONTRACT BY ONE YEAR; AND, CONSIDER ADOPTION OF RESOLUTION NO. 16-147 TO AMEND FY 2016/17 PUBLIC EDUCATION/GOVERNMENT BROADCASTING BUDGET AND APPROPRIATE $100,000.00 TO THE 1% PUBLIC, EDUCATIONAL, AND GOVERNMENTAL (PEG) ACCOUNT (CITY COUNCIL), TO PROVIDE FUNDING FOR SAID CONTRACT AMENDMENT (CITY COUNCIL)
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I. SUMMARY
The City utilizes Electrosonic, Inc. for onsite service labor for trouble-shooting and repairs to equipment located in the Council Chamber’s audio-visual room. The City currently has a service contract for calendar year 2016 with Electrosonic for an existing not-to-exceed amount of $120,220. The City Council is asked to consider extending the term of the existing $120,220 one-year service contract with Electrosonic, by adding another year’s service for calendar year 2017, for the same not-to-exceed amount of $120,220. The 2017 contract is for both regular maintenance services in exchange for a flat annual fee of $20,220, and for updating equipment on an “ad hoc” basis for an annual amount not-to-exceed $100,000.
II. RECOMMENDATION
Recommendation
CONSIDER the following actions:
1. WAIVE the bidding and proposal requirements otherwise required by the Carson Municipal Code (CMC) for this service contract, pursuant to the “sole source” exception provided by CMC Section 2604(a).
2. APPROVE the amendment to the existing contract with Electrosonic, Inc., for the maintenance and support of the audio equipment and programming of the audio and voting system for the Council Chambers, to extend the term of the contract by one year through calendar year 2017, for the additional amount of $120,220, and AUTHORIZE Mayor to execute the same upon approval as to form by the City Attorney.
3. WAIVE further reading and ADOPT Resolution No. 16-147, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE FY 2016/17 PUBLIC EDUCATION/GOVERNMENT BROADCASTING FUND BUDGET.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate and consistent with the requirements of the law.
IV. BACKGROUND
Electrosonic Services
The Information Technology Division has received a maintenance and support agreement renewal from Electrosonic, Inc. for the maintenance and support for the Council Chamber’s audio visual equipment and programming. (See Exhibit 2.) Electrosonic presently does all the programming of the current Crestron system (a proprietary software program language), all of the original audio visual equipment installations, and upgrades for the Council Chamber. Electrosonic and the City have a current services contract for the term of calendar year 2016. (See Exhibit 5.) Staff has prepared an amendment to the existing contract, to extend the services for another year to cover calendar year 2017, for the same not-to-exceed amount of $120,220. (See Exhibit 3.)
Electrosonic has been handling all the programming aspects of the system for 10 years. Because of this long-term relationship, staff believes Electrosonic is uniquely capable of providing maintenance, repairs, support and programing to this equipment. Staff represents that Electrosonic has written much of the software code used by this equipment and is a sole source of knowledge concerning the software code.
Staff believes that no other vendor is capable of servicing the equipment with the same level of current knowledge and experience. Staff asks that the City Council consider waiving the bidding proposal process as allowed under CMC 2604(a), which reads in part as follows: “The purchase of… services shall conform to the bidding and proposal requirements of this Chapter, unless [the] City Manager finds, with the concurrence of the City Council, that the… services are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source…” (Emphasis added).
If the City Council approves the $120,220.00 service contract amendment with Electrosonic, Inc., additional funding will be needed. The contract is for both regular maintenance services in exchange for a flat annual fee of $20,220.00, and for updating equipment on an “ad hoc” basis for an annual amount not-to-exceed $100,000.00.
We are asking City Council to consider adopting resolution no. 16-147 to amend FY 2016/17 Public Education/Government Broadcasting Fund Budget and appropriate $100,000.00 to the 1% PEG account. (See Exhibit 4.)
V. FISCAL IMPACT
Funding in the amount of $20,220 is included in the FY 2016/17 budget, account 01-50-615-006.
Funding, in the amount of $100,000.00 for updating equipment on an “ad hoc” basis, was not included in the FY 2016/17 budget; therefore, the funds will be added to the current budget by way of a budget amendment resolution (Exhibit No. 1). Upon City Council approval, $100,000.00 will be appropriated from the 1% PEG restricted revenue account 47-50-615-006-8003.
The estimated available PEG balance is $393,483.00.
VI. EXHIBITS
1. Yearend Summary - PEG Fee. (pg. 4)
2. Electrosonic, Inc. Renewal Proposal. (pgs. 5 - 19)
3. Contract Services Agreement Amendment No. 1 (2017) (pgs. 20 - 30)
4. Resolution No. 16-147. (pgs. 31 - 32)
5. Contract Services Agreement (2016). (pgs. 33 - 67)
Prepared by: Robert Eggleston, Information Technology Manager