AGENDA REPORT. Meeting Date: September 5, 2017 Item Number: E 14

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1 Meeting Date: September 5, 2017 Item Number: E 14 To: From: Subject: AGENDA REPORT Honorable Mayor & City Council Chad Lynn, Assistant Director of Public Works Genevieve Row, Parking Services Manager Michael Hensley, Senior Management Analyst AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND SENTRY CONTROL SYSTEMS, INC. FOR THE PURCHASE, INSTALLATION, CUSTOMIZATION, AND IMPLEMENTATION OF A TURN-KEY PARKING ACCESS AND REVENUE CONTROL SYSTEM (PARCS) FOR THE PARKING FACILITES IN CITY AUTHORIZATION OF A PURCHASE ORDER TO SENTRY CONTROL SYSTEMS INC. IN THE AMOUNT OF $2,487,300 Attachments: 1. Amendment No. 3 RECOMMENDATION Staff recommends that City Council move to approve the third amendment to the agreement between the City of Beverly Hills and Sentry Control Systems, Inc., for the purchase, installation, customization, and implementation of a turn-key parking access and revenue control system (PARCS) for all City operated parking facilities. Staff also recommends that City Council move to approve a purchase order to Sentry Control Systems, Inc. for $2,487,300. INTRODUCTION The City entered into an agreement with Sentry Control Systems, Inc. in December of 2007 for the replacement of the existing Parking Access and Revenue Control System (PARCS). The PARCS system is the parking equipment used at parking facilities for the management of parking services and collection of parking fees. This includes the gate arms, ticket dispensers, cash registers, pay-on-foot stations, validation machines, monthly parking keycards and other related hardware and software used to provide these services Page 1 of4

2 Meeting Date: September 5, 2017 and operate the parking facilities. space monitoring technology. In addition, the PARCS system provided options for The City s current PARCS parking operations service provider is Sentry Control Systems, Inc., the regional, authorized equipment, service provider and dealer of the Skidata Parking System. The City s current agreement for the equipment purchase, preventative maintenance and ongoing repair services started on October 15, 2008, and was amended in 2009 and The expected life of the equipment is seven to ten years from the time of installation in With continued maintenance, repairs and upgrades, it is expected this life could be extended up to an additional five years. The City will need to amend the current agreement to increase the consideration and extend the length of the agreement. The additional consideration will provide funds to maintain, repair and upgrade the existing software and hardware to extend the life of the equipment and ensure continued operations. As part of this agreement, staff has pre negotiated the costs and services associated with upgrades and expansions such as space counting/monitoring, implementation of a parking operations center, pay-on-foot stations and the ongoing preventative maintenance associated with these services. DISCUSSION Staff is recommending carrying out the following work upon approval of Amendment No. 3 to this Agreement. Continuance of Preventative Maintenance services; Expanding Space Counting/Monitoring to Beverly Drive, 345 and 438 N Beverly Drive (William Sonoma and Crate & Barrel), 461 N Bedford Drive and 450 N Crescent Drive; Implementation of a Parking Operations Center to assist with centralized customer service and management of the PARC s system in all of the City operated garages; Expanding Pay-on-Foot Services to additional facilities, as desired. Through June 30, 2017, Sentry Control Systems Inc. has completed the following work related to this agreement: Page 2 of 4

3 Meeting Date: September 5, 2017 Location Completed 345 Beverly Drive 438 Beverly Drive and Cannon Drive 216 S Beverly Drive 461 N Bedford Drive 9510 Brighton Way 321 S La Cienega Boulevard 450 Rexford Drive (Civic Center) rd Street 485 Beverly Drive- SM1 485 Rodeo Drive- SM2 485 Canon Drive- SM3 485 Bedford Drive- SM4 485 Roxbury Drive- SM5 Scheduled for FY N Camden Drive 221 N Crescent Drive 333 N Crescent Drive 9361 Dayton Way 450 N Crescent Drive Space MonitoringlCounting SystemlOperations Center Operations Center-450 Crescent Drive Pay on Foot Stations Location Number Per Facility La Cienega Drive rd Street 1 440N Camden Drive N Crescent Drive N Crescent Drive Dayton Way I 241 N Canon Drive & /242 N Beverly Drive (Public Gardens - Montage) N Crescent 11 Alternatives Although staff recommends the approval of this third amendment, City Council may choose other courses of action, including the following: Direct staff to return with an amendment to the current agreement with a reduced scope of work to cover only existing equipment maintenance and service needs Page 3 of4

4 Meeting Date: September 5, 2017 o Staff does not recommend this course of action, as it provides ongoing work, services and revenues to the service provider without locking in the value of future known and/or anticipated purchases o The equipment and services that are part of the current proposed amendment are expanding the use of infrastructure already in place and paid for by the City and integrated with the City s current PARCS equipment o If City Council is not interested in extending the life of the current equipment and is interested in replacing/recapitalizing the parking system within the next 1-3 years, staff would recommend executing an amendment with a reduced scope of work. Direct staff to return before City Council with a new agreement for current and/or expanded services and products instead of executing a third amendment to the existing agreement o Staff does not recommend this course of action, as the current agreement contains terms and services negotiated using documents prepared by industry consultants for the complete replacement of a PARCS system o By executing the terms for these additional services the City continues to realize the benefits of the existing agreements terms and conditions Not execute an amendment to this agreement nor enter into a new agreement o This course of action would result in an acceleration of the deterioration of the PARCS system and would severely limit the City s ability to maintain a fully functional parking system o Maintenance and repairs would be limited to only those services which could be executed under staff and the City Manager s authority, which would not be able to provide even the basic levels of service necessary to keep a system of this scope and magnitude operating properly o As the system s functionality is reduced, revenue losses related to both shrink and an inability to collect funds due to malfunctioning systems would occur o This would prevent the expansion of any additional services, such as space counting/monitoring and the pay-on-foot stations FISCAL IMPACT The total not-to-exceed amount of the proposed Third Amendment to the agreement with Sentry Control Systems, Inc. is $2,487,300. The total value of this not-to-exceed amount is currently budgeted or represented in the projected budget for both the Operating Budget for the Parking Services Programs (Program Series ) and the Capital Improvement Budget (Project #0785 Parking Revenue Control System Upgrade and #0786 Parking Program Upgrade and Improvements) through The PARCS system provides all revenue collection and processing for the parking budget. Rhoads Approved By Council will be advised if agreement s not signed by Page 4 of 4 Tuesday, September 5, 2017 / /// // ñ //

5 Attachment 1

6 AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY Of BEVERLY HILLS AND SENTRY CONTROL SYSTEMS, INC. FOR THE PURCHASE, INSTALLATION, CUSTOMIZATION, AND IMPLEMENTATION Of A TURN KEY PARKING ACCESS AND REVENUE CONTROL SYSTEM (PARCS) FOR THE PARKING FACILITIES IN CITY NAME Of CONTRACTOR: RESPONSIBLE PRINCIPAL OF CONTRACTOR: CONTRACTORS ADDRESS: CITY S ADDRESS: Sentry Control Systems, LLC Frank Flanagan, Managing Director 6611 Odessa Avenue Van Nuys, California City of Beverly Hills 345 Foothill Road Beverly Hills, CA Attention: Shana Epstein, Director of Public Works COMMENCEMENT DATE: December 27, 2007 TERMINATION DATE: October 31, 2018, unless extended pursuant to Section 3 of the Agreement CONSIDERATION: Original Agreement: Not to exceed $2,130, Amendment No. 1: No consideration Amendment Amendment No. 2: Not to exceed $2,964, Amendment No. 3: Not to exceed $2,487, Total not to exceed: $7,581,375.00, as more fully described in Exhibit B B I \ v2 doc

7 AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY Of BEVERLY HILLS AND SENTRY CONTROL SYSTEMS, INC. FOR THE PURCHASE, INSTALLATION, CUSTOMIZATION, AND IMPLEMENTATION OF A TURN-KEY PARKING ACCESS AND REVENUE CONTROL SYSTEM (PARCS) FOR THE PARKING FACILITIES IN CITY This Amendment No. 3 is to that certain Agreement between the City of Beverly Hills (hereinafter called CITY ), and Sentry Control Systems, Inc. (hereinafter called CONTRACTOR ) dated December 27, 2007 and identified as Contract No as amended by Amendment No. 1, dated May 30, 2008, Agreement No , as amended by Amendment No. 2, dated September 10, 2013, Agreement No ( Agreement ). RECITALS A. CITY and CONTRACTOR entered into an agreement for the Parking Access and Revenue Control System (PARCS) for all CITY-owned parking facilities, which was previously amended. B. CITY and CONTRACTOR desire to further amend the Agreement to extend the termination date, amend the consideration, and add a prevailing wage provision. NOW, THEREFORE, the parties agree as follows: cover page. Section 1. Section 2. The TERMINATION DATE shall be amended as set forth on the Section 3, Time of Performance shall be amended as follows: Section 3. Time of Performance. CONTRACTOR shall commence the Services upon receipt of a written notice to proceed from CITY, and shall diligently prosecute and perform the Services until all Services described in Exhibit A are completed to CITY s full satisfaction and in accordance with Section It is understood by the parties that the System will be installed at CITY parking garages in phases and pursuant to the installation schedule set forth in Exhibit D. CONTRACTOR shall diligently work to meet said time-line or such other time-line as determined by the CITY s Project Administrator. CONTRACTOR shall complete the performance of services by the Termination Date set forth 807g5-000l\ v2doc 2

8 above and in conformance with Project timelines established by the City Manager or his designee. The City Manager or his designee may extend the Time of Performance in writing for two additional one year terms or such other term not to exceed two years pursuant to the same terms and conditions of this Agreement. page. as follows: Section 3. Section 4. The CONSIDERATION shall be amended as set forth on the cover Section 25, Prevailing Wages, shall be added to the Agreement Section 25. Prevailing Wages. CITY and CONTRACTOR acknowledge that this project is a public work pursuant to the California Labor Code to which prevailing wages apply. CONTRACTOR shall comply in all respects with all applicable provisions of the Labor Code, including those set forth in Exhibit J, attached hereto and incorporated herein by this reference. Section 5. Attachment ito Exhibit B-i of the Agreement entitled Payment Procedures, Terms and Pricing for Existing PARCS pay on Foot (Preventative Maintenance/Repairs) System shall be amended as attached hereto and incorporated herein. Section 6. Attachment 1 to Exhibit 8-2, Compensation & Hourly Rates, shall be amended as attached hereto and incorporated herein. Section 7. Except as amended by this Amendment and previous amendments, the remaining provisions of this Agreement shall remain in full force and effect. California. EXECUTED the day of,20, at Beverly Hills, CITY OF BEVERLY HILLS A Municipal Corporation LILI BOSSE Mayor of the City of Beverly Hills B I \2 I 00089v2 doc 3

9 ATTEST: BYRON POPE City Clerk CONTRACTOR: Sentry Control Systems, LLC FRANK FLANAGAN Managing Director LISA FLANAGAN CFO [Signatures continue] BO7$5OOO I \2 I 000$9v2 doc 4

10 APPROVED AS TO FORM: APPROVED AS TO CONTENT: LAURENCE S. WIENER City Attorney MAHDI ALUZRI City Manager SHANA EPSTEIN Director of Public Works CHAD LYNN Assistant Director of Public Works SHARON L HEUREUX DRESSEL Interim Risk Manager BO785OOO I \2 I 00089v2doc 5

11 ATTACHMENT 1 TO EXHIBIT B-I PAYMENT PROCEDURES, TERMS AND PRICING FOR EXISTING PARCS PAY ON FOOT (PREVENTATIVE MAINTENANCE/REPAIRS) SYSTEM 1. Pricing Summaries In no event shall CONTRACTOR charge CITY more than the following amounts: A. PRICING SUMMARY FOR OPTIONAL PAY ON FOOT UPGRADE SERVICES Preventative Garage Equipment Labor Maintenance Not to Exceed Not to Exceed Not to Exceed 461 N. Bedford, B.H. $ 198, $ 56, $ 4, N. Beverly Drive and 438 N Canon Drive $ 395, $ 23, $ 9, N. Beverly Blvd, BH $ 133, $ 54, $ 3,185, S. Beverly Blvd. B.H. $ 111, $ 20,00000 $ 2, Brighton $ 146, $ 42, $ 3, N. Camden $ 143, $ 54, $ 3, N. Crescent $ 191,940,00 $ 23, $ 4, N. Crescent Drive and 9363 Dayton Way $ 132,094,00 $ 46, $ 3, N. Rexford, and 370 Civic Center Drive $ 154, $ 59, $ 3, S. La Cienega Blvd, B.H. $ 74, $ 23, $ 1, Cashiering Phase 1 $ (46,701.00)* Phase 2 $ 117, Phase 3 $ 102, Spare Parts $ (1,605.00) Demo equipment $ 54, Not to Exceed: $1,908, $400, $40, $2,308, (Equipment & Labor) *Credit if exit cashiering (including spare parts) is expected and equipment is returned. a. Such pricing shall include 3 years of warranty coverage (no additional cost) b. Such pricing shall include 2 years of preventative maintenance services as described in Exhibit H c. Pricing for Preventative Maintenance services for years 3-5 of the Agreement is not to exceed $40,000 per year, payable on a monthly basis and based on the pricing summary set forth in Attachment 1 to Exhibit 3-2, paragraph II. This fee shall be reduced by 3% to $38,800 per year if paid upon commencement of the Agreement and on the same date on an annual basis for the duration of the Agreement. d, Warranty coverage and preventative maintenance shall survive term of Agreement. e. Total Price for Facility may be subject to prevailing wage requirements. Prevailing wage charges will be included in the individual project order, as needed. B \21000$9v2 doc 6

12 B. PRICING SUMMARY FOR OPTIONAL PARKING SPACE MONITORING SYSTEM ( INDECT ) SERVICES Per Space # of Per Space for Price for Clear Total Price for Carpark Spaces Contoured Ceiling Facility North Beverly 287 $ $ 136,325,00 $ $ 129, South Beverly 233 $ $ 110, $ $ 104, Beverly-Canon 408 $ $ 193, $ $ 183, Brighton 249 $ $ 118, $ 450,00 $ 112, Camden 364 $ 475,00 $ 172, $ $ 163, Bedford 471 $ $ 223, $ $ 211, Rexford 530 $ $ 251, $ $ 238, Public Gardens 640 $ $ 304, $ $ 288, Third Street 549 $ $ 260, $ $ 247, La Cienega 319 $ $ 151, $ $ 143, Crescent North 515 $ $ 244, $ $ 231, Crescent South 713 $ $ 338, $ $ 320, Annenberg 481 $ $ 228, $ $ 216, Dayton 221 $ $ 104, $ $ 99, North Beverly SM-i 72 $ $ 34, $ $ 32, North Rodeo SM-2 69 $ $ 32, $ $ 31, North Camden SM-3 72 $ $ 34, $ $ 32, North Bedford SM-4 71 $ $ 33, $ $ 31, North Roxbury SM-S 113 $ $ 53, $ $ 50, Total for all facilities $ 3,029, $2,869, A. Per Space includes: Hardware, Software, and Installation, Training, 5 years of warranty and Preventative Maintenance and Full System Commissioning. B. Total Price for Facility may be subject to prevailing wage requirements. Prevailing wage charges will be included in the individual project order, as needed. B I \2 I 00089v2doc 7

13 Saturday ATTACHMENT I TO EXHIBIT 3-2 COMPENSATION & HOURLY RATES In addition to the Payment Procedures and Terms set forth in Exhibit B-i, the following rates apply to this Amendment No. 3: fee for Preventative Maintenance for all existing facilities and equipment shall not exceed One Hundred Seventy Five Thousand Dollars ($175,000) per year payable on a monthly basis,. This fee shall be reduced by 3% to Not to Exceed One Hundred Sixty Nine Thousand Seven Hundred fifty Dollars ($169,750) per year if paid on an annual basis. HOURLY RATES Regular Working Hours Service (as defined in Exhibit H) Systems Engineer Service: $ first half-hour; $ per hour thereafter billed in half hour increments of $62.00 $ for the first hour; $ per hour thereafter billed in half hour increments of $97.50 Emergency Service: Monday 2 times regular (as defined in Exhibit H) service or systems engineer rates (2 hour minimum charge); Sunday & 2.0 times regular service or systems engineer rates (two hour minimum charge) Optional Work: Each engagement shall be set forth in writing in an Individual Project Order ( IPO) to be approved by CITY in writing before any work, billing, or demand for payment will be initiated. Each IPO shall contain an estimated cost for the project along with a not to exceed amount which shall include all labor, materials and expenses. If the scope of the engagement changes at the request of CITY or the cost of the engagement will exceed the not to exceed amount set forth in the IPO, then prior to continuing to perform services, CONTRACTOR and the City Manager or his designee on behalf of CITY shall execute a written amendment to the IPO. B \2 I00089v2doc 8

14 EXHIBIT J TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS CONTRACTOR acknowledges that the project as defined in this Agreement between CONTRACTOR and CITY, to which this Agreement to Comply with California Labor Law Requirements is attached and incorporated by reference, is a public work as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code ( Chapter 1 ), and that this Agreement is subject to (a) Chapter 1, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the Director of Industrial Relations ( DIR ) implementing such statutes. CONTRACTOR shall perform all work on the project as a public work. CONTRACTOR shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above. CONTRACTOR shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section , and has provided proof of registration to CITY prior to the effective date of this Agreement. CONTRACTOR shall not perform work with any subcontractor that is not registered with DIR pursuant to Section CONTRACTOR and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If CONTRACTOR or any subcontractor cease to be registered with DIR at any time during the duration of the project, CONTRACTOR shall immediately notify CITY. Pursuant to Labor Code Section , CONTRACTOR s services are subject to compliance monitoring and enforcement by DIR. CONTRACTOR shall post job site notices, as prescribed by DIR regulations. Pursuant to Labor Code Section , copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. CONTRACTOR acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and CONTRACTOR shall post such rates at each job site covered by this Agreement. CONTRACTOR shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. CONTRACTOR shall, as a penalty to the CITY, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by CONTRACTOR or by any subcontractor. B07$5-0001\ v2doc 9

15 CONTRACTOR shall comply with and be bound by the provisions of Labor Code Section 1776, which requires CONTRACTOR and each subcontractor to (1) keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the CITY of the location of the records. CONTRACTOR shall comply with and be bound by the provisions of Labor Code Sections , and and California Administrative Code title 2, section 200 el seq. concerning the employment of apprentices on public works projects. CONTRACTOR shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, CONTRACTOR shall provide CITY with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, CONTRACTOR and each of its subcontractors shall stibmit to the CITY a verified statement of the journeyman and apprentice hours performed under this Agreement. CONTRACTOR acknowledges that eight hours labor constitutes a legal day s work. CONTRACTOR shall comply with and be bound by Labor Code Section CONTRACTOR shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. CONTRACTOR shall, as a penalty to the CITY, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by CONTRACTOR or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of CONTRACTOR in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, CONTRACTOR hereby certifies as follows: I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. For every subcontractor who will perform work on the project, CONTRACTOR shall be responsible for such subcontractor s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and CONTRACTOR shall include in the written contract between it and each subcontractor a copy of those statutory provisions and a requirement that each B \2 I 00089v2doc 10

16 subcontractor shall comply with those statutory provisions. CONTRACTOR shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. CONTRACTOR shall diligently take corrective action to halt or rectify any failure. To the maximum extent permitted by law, CONTRACTOR shall indemnify, hold harmless and defend (at CONTRACTOR s expense with counsel reasonably acceptable to the CITY) the CITY, its officials, officers, employees, agents and independent CONTRACTORs serving in the role of CITY officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including CONTRACTOR, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys fees, and other related costs and expenses. All duties of CONTRACTOR under this Section shall survive termination of the Agreement. B \2 I 00089v2doc 11