TO: Mayor and Commissioners
FROM: Terrence R. Moore, ICMA-CM
THROUGH: Missie Barletto, Public Works Director
DATE: March 5, 2024
Title
APPROVAL OF RESOLUTION NO. 44-24 TO AWARD AN AGREEMENT TO T2 SYSTEMS, INC. FOR PARKING MANAGEMENT SYSTEMS AND RELATED EQUIPMENT, SUPPLIES, AND SERVICES UTILIZING A CITY STANDARD APPROVAL IN THE AMOUNT OF $625,575; AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS NECESSARY TO EFFECTUATE THIS AGREEMENT; AND FOR OTHER PURPOSES.
Body
Recommended Action:
Recommendation
Motion to approve Resolution No. 44-24 to award an Agreement to T2 Systems, Inc. for Parking Management Systems and Related Equipment, Supplies, and Services utilizing a City Standard Approval in the amount of $625,575.
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Background:
On December 6, 2016, the City Commission approved Agreement RFP 2016-057L with T2 Systems, Inc. (T2C) for Multi-Space Smart Parking Meters. The project scope included implementing new multi-space parking meters (meters) to provide users with the latest, state-of-the art technology in meters to enhance the overall parking experience. The implementation of these meters allows motorists to pay by cash or with credit card at the meter or via mobile application. Most of the City’s previous meters only accepted coins, and time extensions could only be done at the meter.
The initial project scope included the purchase and installation of 58 meters downtown and along the beach. Additional services, such as software upgrades, warranty, support services, and monthly communication fees were also included. Communication fees consist of back-end software, including real-time credit card processing, alarming, and reporting; wireless service for data transmission; couponing to allow for discounts; and an Application Program Interface (API) to allow for integration with third-party providers such as mobile applications (i.e. Parkmobile) and parking enforcement software. The initial term of the agreement was one (1) year, with the option to renew for five (5) additional one-year periods.
Throughout the course of the agreement, $832,604.61 has been invested in the project, resulting in the purchase and installation of 91 meters, additional hardware (extra bill counters, etc.), software upgrades, warranty, support services, and monthly communication fees. The meters and back-end software that allow for integration with mobile applications and third-party providers are proprietary to T2. Procuring services from a vendor other than T2C would require removal of existing meters and replacement with new meters, in addition to reconfiguring additional services and back-end software. This would result in a loss of the substantial investment the City has made with the current meters. Additionally, T2C has established and maintained an upstanding business relationship with the City. For these reasons, T2C has been established as the City Standard for meters and related equipment, supplies, and services.
Based upon the existing 91 multi-space meters, the cost for one (1) year of warranty is $450/meter. This one-time annual payment amounts to $38,675. The cost for monthly communication and subscription fees is $70/meter monthly. This monthly payment amounts to $6,370 ($76,440 annually). A contingency allowance of $20,000 for the initial term and $10,000 for each renewal term is also requested for additional services as needed.
The contact value is as follows:
|
Contract Value |
|
Initial Term |
March 5, 2024 - March 4, 2026 |
$250,230 |
|
Renewal Term 1 |
March 5, 2026 - March 4, 2027 |
$125,115 |
|
Renewal Term 2 |
March 5, 2027 - March 4, 2028 |
$125,115 |
|
Renewal Term 3 |
March 5, 2028 - March 4, 2029 |
$125,115 |
|
TOTAL |
$625,575 |
Attachments:
1. Agreement CS2024-018
2. Exhibit A to CS 2024-018
3. Exhibit B to CS 2024-018
4. Resolution No. 44-24
5. Exhibit A to Resolution No. 44-24
6. Legal Review Checklist
This motion is in accordance with the City of Delray Beach Code of Ordinances, Chapter 36, Section 36.02.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source:
Funding is available from account 001-45-150-545.46-15 (Repair and Maintenance Service Equipment Maintenance).
Timing of Request:
This request is time-sensitive to avoid a lapse in services of the multi-space parking meters.