SR 10-24-2017 3D
City Council Report
City Council Meeting: October 24, 2017
Agenda Item: 3.D
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Resource Recovery & Recycling
Subject: Global Positioning System (GPS) Software Application and Airtime
Recommended Action
Staff recommends that the City Council authorize the Purchasing Services Manager to
issue a purchase order with GPS Insight, LLC, an Arizona-based company, for vehicle
location tracking for the Resource, Recovery & Recycling Division, in the amount not to
exceed $50,000 for one year, with 2-additional 1-year renewal options on the same
terms and conditions. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.080(d) and is for a total amount
not to exceed $150,000. This will result in a new three-year service agreement, with
future year funding contingent on Council budget approval.
Executive Summary
The Resource Recovery & Recycling (RRR) Division of the Public Works Department
has utilized Global Positioning System (GPS) technology for vehicle location tracking
since 2009. Staff recommends a new purchase order for a service agreement with GPS
Insight, LLC, to continue to provide a GPS web-based software application to ensure
continuity of service and software compatibility with the units installed in RRR vehicles
as well as ongoing maintenance of the units. Staff anticipates issuing a new RFP for
GPS technology prior to the end of the proposed three-year agreement. The current
purchase order with GPS Insight, LLC expired and the vendor is being paid on a month-
to-month basis. The new purchase order would be an exception to the competitive
bidding process pursuant to SMMC Section 2.24.080(d), as the software application
was developed by GPS Insight, LLC and is copyrighted, patented and only available
from the vendor. The new service agreement is for a total amount not to exceed
$150,000, to cover the monthly service cost for RRR GPS units as well as future GPS
purchases, installations and replacements.
Background
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In January 2009, the City issued a Request for Proposals (RFP) for the purchase of 64
Global Positioning Systems (GPS) units and a full-feature web-based software
application that included vehicle location updates every two minutes, unlimited airtime
communication, mapping services and the ability to export data via PDF or Excel
format. Staff has used the GPS units to verify service routes, monitor vehicle location,
confirm that services such as street sweeping have been rendered, as well as to
provide up-to-date positioning of the vehicles in case of an emergency. In addition, the
units have also aided with public records requests as well as accident investigations by
verifying if RRR vehicles were present at alleged accident locations. The service
agreement was for a two-year period with up to three one-year renewal options, for a
total cost of $226,105.48 over a five-year period, and was paid for using annual
purchase orders.
In May 2014, RRR requested an additional three-year service agreement. The vendor
offered the City favorable terms, with the monthly service cost decreasing from $40.00
per unit to $37.95, and the cost to purchase new units decreasing from $400.00 to
$375.00. The overall cost during this timeframe totaled $97,095.76.
In FY 2016-17, the vendor updated all of the City's Second Generation (2G) GPS units
to Fourth Generation (4G) at its own expense, underlining its ongoing commitment to
the City. The 2G system had become obsolete and the new 4G units have the ability to
send and receive greater amounts of data, thus increasing the system’s efficiency. The
previous purchase orders were approved under the Purchasing Manager’s authority and
did not require Council authority until this fiscal year.
In March 2017, RRR again reached out to the vendor for updated pricing for a possible
new three-year term due to the potential costs and service downtime of replacing the
existing GPS units on the RRR vehicles. The vendor proposed a decrease in the
monthly service cost: from $37.95 to $32.95 per unit; and the purchase price from
$375.00 to $275.00 per unit. The new monthly service cost also includes an upgrade
that includes providing RRR with vehicle location updates every 30 seconds instead of
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every two minutes. RRR is currently paying the vendor on a month-to-month basis until
a new purchase order is approved.
Discussion
The RRR Division of the Public Works Department dispatches over 70 vehicles daily.
The vehicles are used to collect the city’s trash, recycling and organics. RRR uses GPS
primarily to verify service routes, monitor vehicle location, confirm that services such as
street sweeping have been rendered, and to provide up-to-date positioning of the
vehicles in case of an emergency. The current GPS system also contains additional
features such as vehicle diagnostic reports, which provide information that includes
engine data, fuel efficiency and battery life; daily vehicle location and history; and
vehicle stop and idle reports, which indicate if a unit has been stopped for longer than 5
minutes.
Continuing to utilize GPS Insight, LLC units would allow RRR to continue monitoring
their vehicles with no interruption in service.
Vendor Selection
Staff recommends GPS Insight, LLC to provide a Global Positioning System (GPS)
web-based software application that includes continuous airtime as an exception to the
competitive process basis pursuant to SMMC Section 2.24.080(d). The web-based
software application was developed by GPS Insight, LLC and is copyrighted, patented,
or otherwise only available from the vendor. Staff will continue to monitor the GPS
market and anticipates issuing a new RFP prior to the end of the proposed three-year
agreement.
Financial Impacts and Budget Actions
The purchase order to be awarded to GPS Insight, LLC is for an amount not to exceed
$150,000. Funds of $50,000 are available in the FY 2017-18 budget in the Public Works
Department. The purchase order will be charged to account 27441.533120. Future year
funding is contingent on Council budget approval.
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Prepared By: James Keezell, Administrator
Approved
Forwarded to Council
Attachments:
A. GPS Oaks Initiative Disclosure Form
REFERENCE:
A COPY OF THIS STAFF REPORT
IS ALSO IN LEGISLATIVE FILE
NUMBER 101‐003‐04‐03