Report to Mayor and City Council
Tuesday, May 07, 2019
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 3 TO CONTRACT SERVICES AGREEMENT WITH ELECTROSONIC, INC., AND ADOPTION OF RESOLUTION NO. 19-096 TO INCREASE THE FY 2018/19 BUDGET FOR CONTRACTUAL SERVICES FOR MAINTENANCE, PROGRAMMING, EQUIPMENT REPAIRS AND REPLACEMENT FOR THE AUDIO VISUAL SYSTEM SERVING THE COUNCIL CHAMBERS (CITY COUNCIL)
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I. SUMMARY
The City has utilized Electrosonic, Inc. (“Electrosonic”) for over ten years for onsite service and repairs to audio-visual equipment serving the City Council Chambers. Due to the increased number of work order requests for the AV Room and to implement live broadcasting capabilities at the Community Center, the funds budgeted for this current fiscal year have been depleted. Staff is requesting that the City Council approve a contract amendment and budget resolution authorizing additional funding of $25,928.55. Note that a portion of the expended funds are offset by the 1% PEG (Public, Educational and Governmental) fund as outlined below.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE the bidding requirements of the Carson Municipal Code (CMC) pursuant to CMC Section 2611(e) (“Sole Source Purchasing”).
2. APPROVE Amendment No. 3 to the Contract Services Agreement 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 increase the contract sum by $25,928.55 to authorize additional on-call services,
3. AUTHORIZE the Mayor to execute the same upon approval as to form by the City Attorney.
4. ADOPT Resolution No. 19-096, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE FY 2018/19 BUDGET IN THE GENERAL FUND.”
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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 has been handling all the programming aspects of the audio-visual equipment serving the City Council Chambers for over 10 years. Because of this long-term relationship and specialized software programming, staff believes Electrosonic is uniquely capable of providing maintenance, repairs, support and programing to this equipment. Electrosonic has written much of the software code used by this equipment and is a sole source concerning the software code. Accordingly, staff requests waiver of the bidding requirements of the City’s purchasing ordinance on the basis of the “sole source” exception, CMC Section 2611(e), in connection with the proposed contract amendment, which would increase the contract sum by $25,928.55 to authorize additional on-call services.
Staff is in the process of developing the designs to upgrade the existing AV equipment at the Community Center to allow live broadcasting remotely. This consists of having Electrosonic produce drawings (as the previous vendor did not provide the City with any drawings) and updating the equipment as necessary.
Funds in the PEG Account are limited to certain uses, such as payment for the on-call services specified in the Electrosonic contract, as amended through Amendment No. 2 (Exhibits 2-4) related to the audio-visual equipment used for the Council Chambers. The other (non on-call) professional services specified in the contract are to be funded from the General Fund, and are limited to $22,500 annually (“Professional Services”).
Although the proposed funding increase is for on-call services only, the proposed budget resolution provides for allocation of $5,625 from the General Fund, and the remaining $20,303.55 from the PEG account. This is necessary because the funding for the on-call services and the Professional Services was authorized under the same purchase order. Although the annual limit for Professional Services has not been exceeded, there is insufficient funding remaining on the purchase order to pay this outstanding amount because the funding has been expended to pay for the higher-than-anticipated amount of on-call services.
V. FISCAL IMPACT
Should the City Council approve staff’s recommendation, $5,625 will be allocated to Account No. 101-50-520-101-6004 from the General Fund balance, and $20,303.55 will need to be allocated to account 247-50-520-101-8003 from the 1% PEG Fund balance, which is estimated to be $520,783.32.
VI. EXHIBITS
1. Proposed Amendment No. 3 to Contract Services Agreement with Electrosonic, Inc.
2. Amendment No. 2 to Contract Services Agreement with Electrosonic, Inc.
3. Amendment No. 1 to Contract Services Agreement with Electrosonic, Inc.
4. Contract Services Agreement with Electrosonic, Inc.
5. Resolution No. 19-096.
Prepared by: Kevin Kennedy, Information Technology Manager