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APPROVE A MOTION TO AUTHORIZE A CONTRACT EXTENSION FOR FIRE AND SECURITY ALARM SYSTEM INSTALLATION, MONITORING, MAINTENANCE, REPAIR, INSPECTION, AND TESTING
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize the City Manager to execute a three-year extension to the Service Contract with Bay Alarm Company of Stockton, CA, in the amount of $1,365,041.16, for a new total not to exceed amount of $2,635,003.76 for Fire and Security Alarm System Installation, Monitoring, Maintenance, Repair, Inspection, and Testing.
3. Authorize an additional contingency of $350,000 for upgrades and expansions of new fire, camera, and security alarm systems anticipated throughout the life of the Service Contract.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
On July 16, 2019, by Motion No. 2019-07-16-1115, Council awarded a five-year Service Contract in the amount not to exceed $1,098,662.60 to Bay Alarm Company of Stockton, CA, for Fire and Security Alarm System Installation, Monitoring, Maintenance, Repair, Inspection, and Testing, Project No. OM-19-032. The Service Contract consolidated the City’s alarm services with six separate contractors and has since provided 99 alarm upgrades and expansions at various City facilities (Attachment A). The Service Contract is set to expire on June 30, 2024. The Service Contract allows for an extension if mutually agreed to in a written amendment.
Contracting with another company would require the removal of all leased Bay Alarm Company equipment and City payment of new, unanticipated equipment and installation fees.
Staff recommends approval of a three-year extension to the Service Contract with Bay Alarm Company of Stockton, CA, in the amount of $1,365,041.16, for a new total not to exceed amount of $2,635,003.76 (Attachment B). The Service Contract with Bay Alarm Company for Fire and Security Alarm System Installation, Monitoring, Maintenance, Repair, Inspection, and Testing would expire on June 30, 2027. The Service Contract will be funded by Public Works, Police, Fire, Community Services, Community Development, and Municipal Utilities Departments’ Operating Budgets.
DISCUSSION
Background
The City maintained 71 fire and security alarm systems at 48 locations by contracting with six separate vendors. On July 16, 2019, by Motion No. 2019-07-16-1115, Council awarded a five-year Service Contract in the amount not to exceed $1,098,662.60 to Bay Alarm Company of Stockton, CA, for Fire and Security Alarm System Installation, Monitoring, Maintenance, Repair, Inspection, and Testing, Project No. OM-19-032. This consolidated the services under one contract, improving operational efficiency and allowing for technological upgrades and expansions for 34 new alarm systems and six new camera systems.
The original service Contract included $275,000 for alarm upgrades and expansions anticipated during the five-year term of the contract. On December 17, 2020, the City Manager approved Contract Change Order (CCO) No. 1, in the amount of (-$28,700), to remove several monitored drinking water wells. On August 19, 2022, the City Manager approved CCO No. 2, in the amount of $200,000, for additional alarm upgrades and expansions anticipated for the remainder of the contract. Of the $475,000 expansions and upgrades budget, only $5,547.55 remains. The Service Contract is set to expire on June 30, 2024. Public Works has multiple pending requests for new and upgraded fire, camera, and security alarm systems at facilities operated by the Community Services and Municipal Utilities Departments.
Present Situation
Bay Alarm Company has provided 99 alarm upgrades and expansions at various City facilities (Attachment A). Due to rising vandalism and safety concerns, Public Works continues to receive requests from various departments for new and upgraded fire, camera, and security alarm systems and monitoring. Anticipated expansions include New City Hall, Northeast Community Center, Oak Park Senior Center, and several Municipal Utilities Department buildings.
There are two mobile camera units monitoring the construction site of the Northeast Community Center. The unavailability of funding for upgrades and expansions on the Service Contract resulted in Capital Improvement Program (CIP) staff paying for the installation and monitoring of the units outside of the Bay Alarm Company’s Service Contract. CIP staff have requested the extension to the Service Contract to include the management of the camera units in Fiscal Year (FY) 2024-25. There is sufficient funding in Project No. CL17024 for FY 2024-25 monitoring fees.
On December 8, 2023, the City advertised a Request for Proposals for Community Center Security Cameras, Project No. CR23005. On January 10, 2024, five proposals were received as follows:
• HCI Systems, Inc. (Sacramento, CA)
• Bay Alarm Company (Stockton, CA)
• Assured Technology, Inc. (Modesto, CA)
• Edgeworth Security (Pittsburgh, PA)
• IREX AI, Inc. (Murrieta, CA)
A Selection Committee comprised of Public Works, Information Technology, and Community Services Departments’ staff evaluated and ranked all proposals based on each firm’s experience, project approach, staff qualifications, and cost. Bay Alarm Company was selected to perform the installation and monitoring.
To maintain consolidated management of the City’s alarm and security systems, staff recommends adding the Community Center Security Cameras, Project No. CR23005, to the current Service Contract with Bay Alarm Company.
These two project transfers to the Service Contract would allow centralized management by Public Works of all Bay Alarm Company’s fire, camera, and security alarm systems and all requests for maintenance, repair, and invoicing. Public Works is requesting an additional contingency of $350,000 throughout the life of the Service Contract to accommodate anticipated fire, camera, and security alarm expansions at New City Hall, Northeast Community Center, Oak Park Senior Center, and several Municipal Utilities Department buildings.
Staff recommends Council approve a motion authorizing the City Manager to execute a three-year extension to the Service Contract with Bay Alarm Company of Stockton, CA, in the amount of $1,365,041.16, for a new total not to exceed amount of $2,635,003.76 (Attachment B).
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The City does not have the specialized equipment or the qualified staff available to perform the work required for this project.
2. The Service Contract can be extended if mutually agreed to in a written amendment. Bay Alarm Company has agreed to extend the Service Contract at the current monitoring rates.
3. The City has a critical need for uninterrupted fire, camera, and security alarm monitoring at all City facilities due to rising vandalism and security concerns.
4. Retaining the services of Bay Alarm Company would save the City the unanticipated high cost of purchase and installation of a new vendor’s equipment, which is in the City’s best interest.
5. Bay Alarm Company is a UL-certified company that specializes in requests requiring an experienced, qualified contractor who has successfully provided fire, camera, and security alarm system installation, monitoring, repair, and inspection.
FINANCIAL SUMMARY
The Service Contract is proposed to be funded at the set annual fees listed below and in accordance with the Scope of Work in the Service Contract.
THREE-YEAR TERM AMOUNT
July 1, 2024 - June 30, 2025 $444,915.72
July 1, 2025 - June 30, 2026 $285,062.72
July 1, 2026 - June 30, 2027 $285,062.72
Upgrades and Expansions $350,000.00
TOTAL $1,365,041.16
The Service Contract will be funded by Public Works, Police, Fire, Community Services, Community Development, and Municipal Utilities Departments’ Operating Budgets. Funding for repairs, upgrades, and expansions will be charged to the respective department(s) as needed.
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - List of Service Locations and Contract Costs
Attachment B - Standard Agreement Amendment No. 3