REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize City Manager to Negotiate and Execute Amendment No. 3 to the Master Product and Services Agreement and Related Orders with Hexagon Safety & Infrastructure for the Computer Aided Dispatch System
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In June 2016, the City Council approved $3 million in funding for the City of Santa Clara’s Computer Aided Dispatch (CAD) and Records Management System (RMS) Upgrade project as part of the Fiscal Year 2016/17 Adopted Capital Improvement Program Budget. Hexagon Safety & Infrastructure (Hexagon) was selected as the vendor to deliver the software, related service and materials, maintenance agreement, customer service and warranty, most appropriately meeting the project deliverables identified by the City for an integrated CAD and RMS solution.
Staff negotiated a six-year Master Product and Services Agreement (Master Agreement) with Hexagon with an expiration date of October 11, 2023, at a one-time cost of $2,092,335 for CAD/MPS and WebRMS software, project management, training, and a one-year warranty (under Orders 1 and 2); additional contract options allowed for a not to exceed amount of $2,472,425.
On November 5, 2018, the City went live with the CAD portion of the project. The RMS portion of this project was not implemented consecutively. On November 19, 2019, the City Council approved Amendment No. 1 to the Master Agreement (RTC 19-1253; Agreement dated December 12, 2019), which severed the RMS project from the scope of the Master Agreement and provided the City with associated credits towards maintenance costs. Maintenance services are under Order 2 (Maintenance Contract) made pursuant to and governed by the Master Agreement. The Maintenance Contract is set to end on November 30, 2024. The City later implemented an alternative RMS solution with Mark43 on September 1, 2021.
On August 29, 2023, the City Council approved Amendment No. 2 to the Master Agreement (RTC 23-848; Agreement dated September 13, 2023) which modified the Maintenance Contract at no cost and synchronized the Master Agreement and the Maintenance Contract to both expire on the same date of November 30, 2024.
DISCUSSION
Master Agreement and Maintenance Contract (Order 3)
The Master Agreement and the Maintenance Contract are set to expire on November 30, 2024. Hexagon CAD is a suite of industry-leading incident management software that features complete, integrated capabilities for call handling and dispatching, intelligent mapping, field communications, data reporting and analysis, and application integration. CAD enhances the quality and availability of critical information, providing a common operating picture for intelligent response.
Staff is seeking City Council approval to (a) negotiate and execute Amendment No. 3 to extend the term of the Master Agreement for five additional years and (b) to execute Order 3 to renew the maintenance and support services for five additional years, both ending on November 30, 2029.
CAD 9.4 2H2023 Upgrade (Order 4)
The City of Santa Clara’s Public Safety 9-1-1 Dispatch Center has not received a major update to the Hexagon CAD system since it went live on November 5, 2018. An update was originally planned for 2020. However, the pandemic and insufficient staffing levels in the Communications Center delayed the upgrade. While staffing levels in the Communications Center remain critically low, a Communications Center Operations Manager was hired in mid-June and will be working with the Human Resources Department to implement a comprehensive recruitment and training plan for the nine (9) Public Safety Dispatcher vacancies. The upgrade “Go live” timeline will depend on staffing levels in the Communications Center.
The City’s current Hexagon CAD environment operates on Microsoft Windows Server 2016 and Microsoft SQL Server 2016. Mainstream support originally ended in January 2022 and July 2021, respectively. The extended end of support date is January 2027 and July 2026, respectively. Staff is requesting Council authorization to execute Order 4 pursuant to the terms of the Master Agreement to update the Hexagon CAD system to CAD 9.4 2H2023 version. An important outcome of the CAD 9.4 2H2023 upgrade will be refreshing the Windows Server and SQL Server to current versions.
This update is expected to deliver several customer-driven improvements to multiple products in the suite to enhance the quality and availability of critical information, providing a common operating picture for intelligent response, including:
• integrated capabilities for call-handling and dispatching
• enhanced mapping
• field communications
• data reporting and analysis
• application integration
• added functionality including interface for Fire Station alerting
• updates to the Racial and Identifying Profiling Act interface
The installation of the upgraded version of CAD will take place with dedicated Hexagon representatives to install and test the products, update servers, train City stakeholders (Information Technology Department and Dispatch Center personnel), address defects (if any) in software configuration prior to going live with I/CAD 9.4, and assist with any issues that may arise following the cutover. The cost for this upgrade is $166,935. The Police Department’s CAD/RMS System Replacement Capital Improvement Project has a balance of $178,429 which has been earmarked for this upgrade, among other related projects.
Scheduling of Hexagon’s services will occur upon receipt of the executed Statement of Work for Services for 2H2023 Update for I/CAD 9.4 (Attachment 3) receipt of a purchase order from the City and coordination with the Communications Center Operations Manager.
Total Compensation
The terms of the original Master Agreement detailed the one-time costs through cutover totaling $2,101,244.
Since Fiscal Year 2019/20, the Maintenance Contract within the Master Agreement has been in effect with $1,198,732 paid to Hexagon for these services. The annual maintenance costs are included in the Police Department’s operating budget and are paid on/around December 1 each year. The current Maintenance Contract expires on November 30, 2024.
Staff has negotiated two items with Hexagon, 1) Amendment No. 3 to the Master Agreement to extend maintenance and support services, and obtain other related services as required, through November 30, 2029, at a cost of $1,675,014 over five years and 2) a new Order under the terms of the Master Agreement to upgrade CAD to I/CAD 9.4 2H2023 totaling $166,935. These projects include a $200,000 contingency, bringing the current request for approval from Council to $2,041,949; the total not-to-exceed cost, including previously paid items, is $5,341,925, subject to the appropriation of funds and approval as to form by the City Attorney. While the general business terms including pricing, as described herein, have been settled upon by the parties, the language of the Amendment including its attachments (Orders 3 and 4) has not yet been finalized, necessitating the grant of authority to negotiate and execute the Amendment.
The total compensation of the Master Agreement, including all Orders, is provided in Table 1.
Table 1
|
Fiscal Year |
Description |
Total |
|
2017/18 |
One-time costs (Order 1) |
$1,046,168 |
|
2018/19 |
One-time costs through cutover (Order 1) |
$1,055,076 |
|
2019/20 |
Annual maintenance (Order 2) |
No Cost * |
|
2020/21 |
Annual maintenance (Order 2) |
$283,343 |
|
2021/22 |
Annual maintenance (Order 2) |
$293,968 |
|
2022/23 |
Annual maintenance (Order 2) |
$304,992 |
|
2023/24 |
Annual maintenance (Order 2) |
$316,429 |
|
Total (Years 2017 - 2024) |
$3,299,976 |
|
|
|
|
|
|
|
|
|
2024/25 |
Maintenance (12/1/24 - 11/30/25) (Order 3) |
$303,124 |
|
2025/26 |
Maintenance (12/1/25 - 11/30/26) (Order 3) |
$318,289 |
|
2026/27 |
Maintenance (12/1/26 - 11/30/27) (Order 3) |
$334,209 |
|
2027/28 |
Maintenance (12/1/27 - 11/30/28) (Order 3) |
$350,919 |
|
2028/29 |
Maintenance (12/1/28 - 11/30/29) (Order 3) |
$368,473 |
|
2024/25 |
CAD 9.4 2H2023 Upgrade (Order 4) |
$166,935 |
|
|
Contingency |
$200,000 |
|
Total (Years 2024 - 2029) |
$2,041,949 |
|
Grand Total (since 2017) |
$5,341,925 |
*On November 19, 2019, the City Council approved Amendment No. 1 to the Master Agreement which, among other things, severed the RMS project from the scope of the Agreement and provided the City with associated credits towards Maintenance Costs applied in Year 1, valued at $273,102.
ENVIRONMENTAL REVIEW
This 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)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
With City Council approval, two distinct funds will be utilized to pay for the expenses associated with this staff recommendation. The Hexagon I/CAD 9.4 upgrade ($166,935) will be paid utilizing available funding in the CAD/RMS System Replacement Improvement Project, whereas the annual maintenance expenses ($1,675,014 over five years) is budgeted in the Police Department’s annual operating budget. Should it be necessary to spend any of the $200,000 contingency funds available to support either aspect of this staff recommendation, the respective account(s) will be utilized to pay for the associated expenses.
COORDINATION
This report has been coordinated with the Finance Department, City Attorney’s Office and Police Department.
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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to negotiate and execute Amendment No. 3 to Master Product and Services Agreement (Master Agreement) with Hexagon Safety & Infrastructure to extend the term through November 30, 2029, and execute Orders pursuant to the terms of the Master Agreement to upgrade the Computer Aided Dispatch System to I/CAD 9.4 2H2023 and renew the maintenance and support services with a total not-to-exceed amount of $5,341,925, subject to the appropriation of funds and approval as to form by the City Attorney.
Staff
Reviewed by: Pat Nikolai, Chief of Police
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Amendment No. 1 of the Master Agreement approved by City Council on November 19, 2019 (RTC 19-1253; Agreement dated December 12, 2019)
2. Amendment No. 2 to the Master Product and Services Agreement approved by City Council on August 29, 2023 (RTC 23-848; Agreement dated September 13, 2023)
3. Amendment No. 3 to the Master Product and Services Agreement to include Orders/Exhibits to the Master Agreement for Maintenance Services and I/CAD 9.4 2H2023 Upgrade project