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SR-506-003-06 (17) Council Meeting: September 14, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Recision of Council approval to purchase an Advanced Traffic Management System for the downtown area from Econolite and authorize the purchase from Siemens Introduction This staff report recommends that the City Council amend the past approval of the purchase of a central traffic signal control system from Econolite Control Products, Inc. (Econolite), and instead authorize its purchase from Siemens Energy and Automation, Inc. (Siemens). Background On September 9, 2003, the Council approved the purchase of an Advanced Traffic Management System (ATMS) from Econolite, the sole software vendor who could provide a complete solution for the City?s specific needs for remote control of traffic signals, for $260,000, excluding contingency. At the time, Econolite was offering the icons system in partnership with Siemens. Siemens developed the system software ? with Econolite providing technical support - to be fully compatible with Econolite?s ASC/2 traffic signal controller (the city?s principal signal controller). Under the partnership agreement, Econolite marketed the system and provided operational support, while Siemens provided software support and software maintenance. During the City?s contract negotiations with Econolite, the partnership terminated. As a result of the termination agreement, Econolite and Siemens can each market their version of the system, modifying and enhancing it as they see fit. Discussion Shortly after execution of the Econolite/Siemens termination agreement, contract negotiations with Econolite were suspended in order to evaluate the City?s options presented by the agreement. Staff determined that it would be prudent to solicit from Siemens for a proposal for their i2TMS system (their version of icons). Since six months had passed since the Council approved purchase of the icons ATMS, a Request for Proposal (RFP) for the ATMS was published. One additional vendor replied, but that proposal did not meet the City?s specifications. Since the icons system and the i2TMS system are virtually alike at this time, the two companies were evaluated for their ability to provide operational support, system development and upgrades. Based on these criteria, Siemens has the clear advantage. As the software developers, Siemens? personnel are the most familiar with the system and thus the most able to continue to support and enhance it. Budget/Financial Impact Funds for the purchase are available in account C01040701.589000. Recommendations It is recommended that the Council authorize the City Manager to negotiate and execute a contract with Siemens Energy and Automation, Inc. in the amount of $211,807 (including 10% contingency) for the purchase of the i2 TMS system for the 53 intersections located in the downtown area. It is also recommended that the Council rescind the authorization granted on September 9, 2003, to purchase a similar system from Econolite Control Products, Inc. Prepared By: Suzanne Frick, Director of Planning and Community Development Lucy Dyke, Transportation Planning Manager Gerald Tom, Transportation Engineer David Yeskel, Systems Analyst