REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 to the Master Product and Services Agreement with Hexagon Safety & Infrastructure to Extend the Computer Aided Dispatch System Contract Term to November 30, 2024 at No Additional Cost
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Public Safety 9-1-1 Dispatch Center relies on a Computer Aided Dispatch (CAD) system to initiate calls for service, dispatch Police and Fire personnel and maintain the status of responding public safety units. The Police Records Unit relies on a Records Management System (RMS) to file police reports, maintain accurate records of law enforcement documents and submit required data to the Department of Justice.
In June 2016, the City Council approved $3 million in funding for the CAD and RMS Upgrade project as part of the 2016/17 Adopted Capital Improvement Program Budget. On October 10, 2017, after an extensive and rigorous procurement process, Hexagon Safety & Infrastructure (Hexagon) was approved by City Council (Item #13.B6) to deliver the software, related service and materials, maintenance agreement, customer service and warranty most appropriately meeting the project deliverables identified by the City of Santa Clara for an integrated CAD and RMS solution.
Staff negotiated a six-year Master Product and Services Agreement (Master Agreement) through October 11, 2023, with a one-time cost of $2,092,335 for CAD/MPS and WebRMS software, project management, training and a one-year warranty. The warranty included maintenance costs for the first year of the contract. The contract also allowed for additional options items not to exceed $2,472,425. The Capital Improvement Project budget covered the cost for DELTAWRX services and the one-time implementation costs for the CAD/MPS and WebRMS systems.
The original Hexagon Maintenance Contract details the annual costs to support CAD functionality through terms of the Master Agreement with a one-year extended warranty and cost inflator not to exceed four percent each year through the balance of the Maintenance Contract. The reoccurring costs, such as annual maintenance and software upgrades, have been paid for from the Police Department’s operating budget.
On November 5, 2018, the City of Santa Clara went live with the CAD portion of the project, which included all new Mobile Data Computers with stronger wireless infrastructure in police vehicles. The RMS portion of this project was not implemented consecutively. As a result, on November 19, 2019, 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.
The terms of the Master Agreement as Amended detailed the one-time costs and Maintenance Contract highlighted the annual maintenance expenses as follows after the above actions:
|
Fiscal Year |
Description |
Original Cost including WebRMS |
Cost Detailed in Amendment No. 1 without WebRMS |
|
2017/18 |
One-time costs |
$1,046,168 |
$1,046,168 |
|
2018/19 |
One-time costs through cutover |
$1,046,168 |
$1,055,076* |
|
2019/20 |
Annual maintenance |
$422,172 |
0** |
|
2020/21 |
Annual maintenance |
$438,004 |
$283,343 |
|
2021/22 |
Annual maintenance |
$454,430 |
$293,968 |
|
2022/23 |
Annual maintenance |
$471,471 |
$304,992 |
|
2023/24 |
Annual maintenance |
$489,151 |
$316,429 |
|
|
TOTAL |
$4,367,564 |
$3,299,976 |
*$8,908 increase due to change order following agreement execution
** Year 1 maintenance services were provided to the City at no cost. In addition, a $273,102 credit was applied in Year 1
DISCUSSION
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.
The Master Agreement as Amended expires on October 11, 2023. Amendment No. 1 grants the City Year 1 maintenance services at no cost and expires in coordination with the Master Agreement. Due to mutual obligations in the Maintenance Contract, the City and Hexagon would like to amend the Master Agreement and Amendment No. 1 with Amendment No. 2 to synchronize with the Maintenance Contract expiration of November 30, 2024.
The annual maintenance costs are included in the Police Department’s Operating Budget subject to the appropriation of funds and are paid on/around December 1 each year. Year 5 of the existing maintenance agreement will cover December 1, 2023 through November 30, 2024 at a cost of $316,429.
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
There is no fiscal impact to this action. Approval of this recommendation simply synchronizes the Master Agreement and Maintenance Contract through November 30, 2024. The services provided in the contract are funded in the General Fund.
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
Approve and authorize the City Manager to execute Amendment No. 2 to the Master Product and Services Agreement with Hexagon Safety & Infrastructure dated October 12, 2017 to extend the contract term at no additional cost in a final form approved by the City Attorney.
Staff
Reviewed by: Pat Nikolai, Chief of Police
Approved by: Jōvan Grogan, City Manager
ATTACHMENTS
1. Amendment No. 1 of the Master Agreement approved by City Council on November 19, 2019 (RTC 19-1253)
2. Amendment No. 2 to the Master Product and Services Agreement