Los Angeles World Airports
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1 Los Angeles World Airports June 5, <'... ~.,LAX LAlOntarh., The HonorableClty Council of the City of Los Angeles City Hall- Room 395 Los Angeles, CA 90012, VillI Nllf,I, Clly pf LC>6A"g(lle.~ Reference: CF' c,c,, A;11 >nio 'It ViII~r~I&6$a, r,i~l"lr, ',Board of, Airport COlTufllu,;lnn"'T~ (<AI,ell>,,,'A, (,,;wson Pret1Mellt V,ileriA C, Vot,m;() \1100j"r,mldant ', This, is to hereby transmit for your information the Mayor 'approved City Administrative" Officer's report covering the consideration andapproval of the Second Amendment to Oontract DA~4471 with The Revenue Markets, Incorporated dba TRMI Systems' ', :,h1legratiqn' toconnnue services for Los Angeles World Airports.,',"",' ": Sincerely, ),»,n'llh A,' Mod"s n"herl D, lli-"i'lr Doy,ll'lIaht, 'Aon M, H"lI!M~'r FW1»ndn M, Torrc~,G\l (line Mar'I" Lhldsey ~xccutl"" Dlrnr;\c,r 'Christine lserl, Government Affairs Representative Government.Attalrs Division "'L()S Angeles World Airports Cf:ci Attaobments
2 TRANSMITTAL TO Gina Marie Lindsey, Executive Director Department of Airports DATE JUN 0 '42013 COUNCil FILE NO. FROM The Mayor COUNCIL DISTRICT f 11 Proposed Second Amendment to Contract No. DA-4471 with the Revenue Markets, Inc. dba TRMI Systems Integration to Extend the Term for Monitoring, Maintenance and Repair Services of the Traffic and Vehicle Identification System at Los Angeles International Airport Transmitted for further processing, including Council consideration. See the City Administrative Officer report, attached. ~ VAII~ ~ t.~ ~" MAS:AVM: t
3 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: May 29, 2013 CAO File No Council File No. Council District: 11 To: The Mayor From: Miguel A. Santana, City Administrative OffiC~ C.Ji- Reference: Communication from the Department of Airports ~ted March 22,2013; referred by the Mayor for report on March 22, 2013 Subject: PROPOSED SECOND AMENDMENT TO CONTRACT NO. DA~4471WITH THE REVENUE MARKETS, INC. DBA TRMI SYSTEMS INTEGRATION TO EXTEND THE TERM FOR MONITORING, MAINTENANCE AND REPAIR SERVICES OF THE TRAFFIC AND VEHICLE IDENTIFICATION SYSTEM AT LOS ANGELES INTERNATIONAL AIRPORT SUMMARY The Executive Director of the Department of Airports (Department) requests approval of a second amendment (Amendment) to Contract No. DA-4471 (Contract) with the Revenue Markets, Inc. dba TRMI Systems Integration (TRMI Systems). Through an existing contract, since 2010, the contractor has provided monitoring, maintenance and repair services for a Traffic and Automatic Vehicle Identification System (TRAVIS) at the Los Angeles International Airport (LAX). Approval of the proposed Amendment will extend the Contract term for one year and establish a new expiration date of June 30, There is no request to increase the contract budget The abovereferenced aspects of the Amendment, and this report, incorporate revised information received from the Department subsequent to the initial request submittal. Pursuant to Charter Section 373 and Los Angeles Administrative Code Section 10.5(b)2, Council approval of the Proposed Second Amendment is required because the cumulative contract term will exceed three years. Background The Board of Airport Commissioners (BOAC) awarded the initial Contract to TRMI Systems during a meeting on June 7, According to Department staff, four firms submitted responses to a Department issued Request for Proposals (RFP) which sought a replacement for a thenutilized Automatic Vehicle Identification (AVI) System at LAX. The AVI System was not able to track commercial vehicle activity over 9,500 daily trips and thus, staff reports, the Department did not receive additional annual revenue collection of approximately $5 million. The Contract was awarded for an amount not to exceed $1,972,850, for a one year term, with a one-year renewal option. According to Department staff, a major part of the TRAVIS installation was completed in January The system is used to register, track and monitor all commercial ground
4 CAO File No. PAGE transportation operators and the circuits of their permitted vehicles in and around the LAX Central Terminal Area. TRAVIS includes a series of electronic readers which detect and monitor transponders in commercial vehicles. The Department permits buses, limousines, passenger vans and taxi cabs to provide ground transportation services to and from LAX. The renewal option was exercised and a first amendment to Contract No. DA-4471 was approved by the BOAC. That action extended the Contract term through June 30, 2013 and increased the budget by $770,000, for a total budget in an amount notto exceed $2,742,850. Currently, the contractor TRMI Systems provides remote monitoring 24 hours a day, 365 days a year as well as 20 hours of emergency on-site support. Staff reports that routine monitoring and as-needed repairs ensure TRAVIS provides continuous operation and data collection. TRAVIS is configured to enhance the Department management of ground transportation operations through: Enabling customized reports Incorporating software enhancements and additional hardware Incorporating new indicator lights used by Airport Police Commercial Enforcement Unit and LAX Operations personnel to identify commercial vehicle violators Complies with State of California interoperability standards in the automated vehicle data collection industry Proposed Second Amendment to Contract DA-4471 with TRMI Systems Staff in the Department's Information Management Technology Group requested an Amendment to lengthen the Contract term by one additional year and thereby establish June 30, 2014 as a new expiration date. Approval of the proposed Amendment will allow staff to become familiar with the new technology and will provide the contractor who installed the system with a year (after installation) to ensure that TRAVIS Systems performs well and as expected. Staff is in the process of developing a RFP for on-going operations and maintenance for this non-proprietary system. Department staff anticipates it may take approximately months to develop and release a RFP, award and then execute a subsequent contract. No funds are requested for the proposed Amendment as sufficient resources remain in the Contract budget to fund the anticipated expenditures during the expanded term. Staff projects a balance of approximately $539,081 to be available on June 3D, 2013, at the beginning of the proposed Amendment. The funds will be used during to pay for: 1) annual maintenance, 2) moves, adds or changes of system equipment to support systems modifications, and 3) new and replacement transponders, to purchase and install in the permitted commercial vehicles. A budget overview of TRMI Systems Contract DA-4471 is presented below. Staff reports actual expenditures to date for design, installation and implementation of TRAVIS Systems. An estimated amount for the Contract's three-month cost for systems maintenance and repairs services is added to actual expenditures and that sum is deducted from the total contract budget. As shown, a balance of $539,081 is projected to be enough to fund the Contract term.
5 CAO File No. PAGE TMRI Systems Contract Budget Actual Expenditures $1,972,850. Original Contract DA-4471 $ 770,000. First Amendment $2,742,850. Budget, amount not-to-exceed $ $ 655,950 $1,009,028 $2,094,024 $ 109,745 $2,203, , to date Actual expenditures, to date Maintenance and repair, 3-months Expenditures to date, estimate Amendment - Projected Expenditures Overview - TRMI Systems Contract Budget $ 250,000 $ 125,000 $ 125,000 $ 500,000 Annual Maintenance Moves, Adds and Changes Additional Transponders Est. Expenditures for Proposed ( Amendment $2,742,850. Budget, amount not-to-exceed ( $2,203,769) Expenditures to date, estimate $ 539,081 June 30,2013, Balance Available $ 500,000) Estimated Expenditure $ 39,081 June 30, 2014, Estimated Balance Alternative to the Proposed Amendment Department staff explains that without a term extension, the Contract will expire June 30, Such action vastly reduces the amount of time in which Department staff has to become familiar with TRAVIS. The system would be less effective under Department oversight if staff was unable to implement essential business functions for TRAVIS. Reliance upon manual steps to perform functions is not an alternative the Department recommends. City Contract Compliance The proposed Amendment must be approved by the City Attorney as to form. TRMI Systems has an assigned Business Tax Registration Certificate number, has approved insurance documents on file with the Department in the terms and amounts requested and has submitted the Contractor Responsibility Program Pledge of Compliance. In addition, the Department of Public Works, Office of Contract Compliance has determined that TRMI Systems is in compliance with the provisions of the Equal Benefits Ordinance. Also, pursuant to the provisions of Charter Section 1022, staff has determined that the work specified in the proposed Amendment can be done more feasibly or economically by an independent contractor thank City employees. In accordance with the Contract, TRMI Systems is required to comply with the standard City contract provisions of the Affirmative Action Program, Child Support Obligations Ordinance, Contractor Responsibility Program and Living Wage Ordinance. Furthermore, the contractor is required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs as well as submit the Bidder Contributions, City Ethics Commission Form 55 and comply with its provisions prior to executing the Amendment. Staff in the Department Procurement Service division has reviewed this action, File No. 6169, and established a 10 percent combined MinoritylWomen Business Enterprise (W/MBE) level of
6 CAO File No, PAGE participation for this project. While TRMI Systems committed to a combined W/MBE participation level of 17.5 percent, staff reports the contractor, to date, has achieved a 19.3 percent participation level. As a continuing administrative and personnel related activity, this action is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2,f of the Los Angeles City CEQA Guidelines. Actions taken on this item by the BOAC will become final pursuant to Charter Section 373, "Long Term Contracts Approved by Council," and Administrative Code 10.5, "Limitation and Power to Make Contracts". City Council approval is required because approval of the proposed Amendment will result in the term exceeding three years for Contract DA RECOMMENDATIONS That the Mayor: 1. Approve, subject to approval of the City Attorney as to form, a proposed Second Amendment to Contract No. DA-4471 (Contract) with The Revenue Markets, Inc. dba TRMI Systems Integration (TRMI Systems), to extend the Contract term for one year and establish a new expiration date of June 30, 2014, without adding funds, to continue providing monitoring, maintenance and repair services for a Traffic and Automatic Vehicle Identification System (TRAVIS) at the Los Angeles International Airport (LAX), and 2. Return the request to the Board of Airport Commissioners for further processing, including Council consideration. FISCAL IMPACT STATEMENT Approval of the proposed Amendment between TRMI Systems and the Department of Airports will have no impact on the General Fund. Funding for the proposed Amendment has been requested in the Los Angeles World Airports Operating Budget, in LAx Cost Center IT Business Application Support Division, Commitment Item Contractual Services. Funding for subsequent years will be requested during the annual budget process. This project complies with the Department of Airports adopted Financial Policies. TIME LIMIT FOR COUNCIL ACTION Pursuant to Charter Section 373, "Long Term Contracts Approved by Council", and the Los Angeles Administrative code Section 10.5, "Limitation and Power to Make Contracts", unless the Council takes action disapproving a contract that is longer than three years within 60 days after submission to Council, the contract shal! be deemed approved. MA$:AVM:
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