REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order and Award an Installation Contract for Closed Circuit Television Cameras (F17-103 and F17-121), and Approve Budget Modification No. 49 in the Amount of $500,000 to Appropriate Grant Funding Contingent Upon Council Approval of the FY 2017/18 Recommended Budget
Report
REPORT IN BRIEF
Approval is requested (1) to authorize the issuance of a purchase order to Control Tech West, Inc. of Temecula, CA in the amount of $191,503 (including sales tax) for the purchase of 50 Closed Circuit Television (CCTV) Cameras associated with the City’s Intelligent Transportation System (ITS) projects; (2) to award a contract to St. Francis Electric, LLC of San Leandro, CA in the amount of $146,010 (base bid plus two additive alternates) to install 26 of the cameras, with an approximate 12% contract contingency in the amount of $17,481; and (3) for Budget Modification No. 49 to appropriate $500,000 in Measure B Vehicle Registration Fee (VRF) Funds to fund expenditures incurred and accelerate project funding programmed for FY 2017/18.
EXISTING POLICY
Chapter 2.08 of the Sunnyvale Municipal Code requires Council approval for transactions greater than $100,000. Pursuant to Sunnyvale Municipal Code section 2.08.120, the City may negotiate bid pricing in the event only one bid is received in response to a bid solicitation, subject to the awarding authority’s acceptance.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
In February 2016, Council awarded a contract in the amount of $518,577 to Control Tech West Inc. to deploy a citywide Advanced Adaptive Traffic Management System (AATMS) following a pilot project at the SR237/Mathilda Interchange (RTC No. 15-1078). The project was funded with a combination of Transportation Impact Fee (TIF) revenue and a $250,000 contribution from Google. At the time of contract award, staff identified other features such as the CCTV system that would be considered in subsequent budget cycles.
In August 2016, the City entered into a funding agreement with the Santa Clara Valley Transportation Authority (VTA) in order to receive $500,000 in Vehicle Registration Fee funds to implement the CCTV system enhancement to the AATMS. These funds allow the City to install the CCTV units and auxiliary communications devices for data collection at various locations throughout the City. Sunnyvale was selected for the grant award through a competitive process and no local matching funds are required.
With elements of the AATMS project already being deployed and the grant funds awarded, staff mistakenly thought that the grant funds for the CCTV system had been appropriated and procured the equipment in several transactions. Proceeding with the procurements as discussed below allowed for the timely completion of the AATMS.
In February 2017, an Invitation for Bids (IFB) was issued to procure 50 CCTV cameras. One bid in the amount of $191,503 ($176,500 for the cameras and $15,003 in sales tax) was received from Control Tech West.
In April 2017, another IFB was issued to install a portion of the cameras. The bid was structured as a base bid to install 18 cameras, and two bid alternates for additional installation locations (Alternate A included 6 locations and Alternate B include 2 locations). One (base) bid was received from St. Francis Electric in the amount of $125,900. Additive Alternate A totaled $40,400 and Alternate B totaled $12,500. The bid exceeds the engineer’s estimate of $96,000, which consists of the base bid plus Alternate A.
In the event the City receives only one bid in response to a solicitation, Sunnyvale Municipal Code section 2.08.120 authorizes the Purchasing Officer to request pricing data to determine whether the pricing is reasonable and negotiate a lower price. Purchasing staff contacted both Control Tech West and St. Francis Electric for the respective response to the two IFBs. Control Tech West has declined to reduce their pricing for the 50 CCTV cameras, while St. Francis Electric offered a 18% discount. The revised bid summary for the St. Francis Electric bid is contained in Attachment 2.
FISCAL IMPACT
Funding for this project was included in the FY 2017/18 Recommended Budget. Budget Modification No. 49, accelerates the appropriation of these funds to FY 2016/17 to recognize grant revenues and fund the contracts included in this report. This budget modification is contingent upon the adoption of the FY 2017/18 Recommended Budget.
Budget Modification No. 49
FY 2016/2017
Current Increase/ Revised
(Decrease)
Capital Projects Fund/ General
Asset Sub-Fund
Revenues
VTA Measure B Vehicle Registration $0 $500,000 $500,000
Fee Intelligent Transportation Program
Expenditures
FY 2017/18 - Project 832450 $500,000 ($500,000) $0
ATMS Upgrades, Data
Collection and Display
Enhancements
FY 2016/17 - Project 832450 $0 $500,000 $500,000
ATMS Upgrades, Data
Collection and Display
Enhancements
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Authorize the City Manager to issue a purchase order, in substantially the same form as Attachment 1 to the report and in the amount of $191,503 ($176,500 for the cameras and sales tax in the amount of $15,003) to Control Tech West Inc.; 2) Accept the reduced bid pricing offered by St. Francis Electric and award an installation contract, in substantially the same form as Attachment 2 to the report and in the amount of $146,010, to St. Francis Electric and authorize the City Manager to execute the contract when all necessary conditions have been met; 3) Approve contract contingency in the amount of $17,481 for the installation contract with St. Francis Electric in order to utilize available VRF funding; and 4) Approve Budget Modification No. 49 to appropriate $500,000 in VTA Measure B VRF Funding contingent on Council approval of the FY 2017/18 Recommended Budget.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Manuel Pineda, Director of Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Draft Purchase Order
2. Bid Summary
3. Draft Installation Contract