REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Service Agreement with Lyngsoe Systems, Inc. for Repair, Maintenance, and Subscription Services for the Automated Materials Handling System at Central Park Library
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On November 21, 2017, Council approved the execution of the agreement with Lyngsoe Systems, Inc. (Lyngsoe) (Attachment 2) to provide an automated materials handling system (AMHS) for the Central Park Library. The AMHS is a specialized system that automates the sorting and check-in of library materials and includes two self-return kiosks for patrons, a staff-operated induction station for manually inputting items into the system, a conveyor system, and nine automated sorters. The agreement also covered software subscriptions, as-needed equipment repairs, and maintenance services to support the system.
The agreement with Lyngsoe resulted from staff leveraging a competitive Request for Proposals (RFP) process conducted in 2016 by the Sacramento Public Library. This procurement was authorized under Santa Clara City Code Section 2.105.290 (Purchase from public agencies), which has since been amended and renumbered to Section 2.105.270.
The purchase and installation of the AMHS were funded as part of a Capital Improvement Program (CIP) project, and included an agreement for five years of service and maintenance.
The service agreement for the AMHS expired on June 30, 2023. The initial term of the agreement included a one-year warranty term after equipment installation, which was subsequently followed by a five-year maintenance period that ended on June 23, 2024.
DISCUSSION
Staff is seeking City Council authorization to execute Amendment No. 1 to the agreement with Lyngsoe. This amendment will retroactively align the term with the initial warranty and maintenance period and extend the term by an additional five years through June 23, 2029. The purchasing division manager has determined that Lyngsoe is the only vendor that provides maintenance services to the particular AMHS installed in the library. Accordingly, the maintenance and support services for the AMHS is exempt from the procurement solicitation process. This extension will ensure continuity of critical maintenance services and the software subscription required for the operation of the AMHS.
The proposed amendment will increase the not-to-exceed compensation by $87,515.00 to cover five years of maintenance and support services for a revised not-to-exceed maximum compensation of $412,246.95.
In addition, staff recommends that the City Manager or designee be authorized to negotiate and execute additional amendments if needed to increase the not-to-exceed compensation by $21,878.75 (from $412,246.95 to $434.125.70) to cover any unexpected repairs or services over the revised term. This additional authorization is equivalent to 25% of the five-year maintenance costs of $87,515.00.
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(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The cost to extend the service agreement for five years is as follows:
• Year 8 (June 24, 2024 - June 23, 2025) $16,370.00
• Year 9 (June 24, 2025 - June 23, 2026) $16,910.00
• Year 10 (June 24, 2026 - June 23, 2027) $17,475.00
• Year 11 (June 24, 2027 - June 23, 2028) $18,070.00
• Year 12 (June 24, 2028 - June 23, 2029) $18,690.00
Total cost for ongoing maintenance for years 8-12 $87,515.00
Funding for this service agreement is included in the Library Department’s General Fund operating budget.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 1 to the Agreement with Lyngsoe Systems, Inc. for the automated materials handling system at the Central Library, including repair, maintenance and software subscription services, to extend the term through June 23, 2029 and increase the maximum compensation by $87,515.00 for a revised not-to-exceed maximum compensation amount of $412,246.95, subject to the appropriation of funds and the review and approval as to form by the City Attorney.
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement with Lyngsoe Systems, Inc. and negotiate and execute amendments to (a) add or delete services consistent with the scope of services and (b) increase the maximum compensation by an additional $21,878.75 for a total aggregate maximum compensation not to exceed $434,125.70 for the extended term, subject to the appropriation of funds, and in a final form approved by the City Attorney.
Staff
Reviewed by: Patty Wong, City Librarian
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Amendment No. 1 to Original Agreement with Lyngsoe Systems
2. Lyngsoe, Inc. Automated Material Handling System Central Park Library Performance of Services Agreement