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01-08-2002 - Award of Bid #1001-B; Upgrade of the City Data & Voice Microwave SystemCity of 44�est Covina Memorandum January 8, 2002 TO: FROM: SUBJECT: Andrew G. Pasmant, City Manager and City Council J. T. Keating Interim Communications Director AGENDA ITEM NO. C-4c DATE 1/8/02 ®PRINTED ON RECYCLED PAPER AWARD OF BID # 1001-11; UPGRADE OF THE CITY DATA AND VOICE MICROWAVE SYSTEM SUMMARY: This report recommends that Bid # 1001-B for the upgrade of the City's Data and Voice Microwave system (CIP Project GP02409), be awarded to Telcom Communications of Oxnard, CA, the lowest responsive bidder, and that a separate purchase order be issued for the spare parts recommended by the equipment manufacturer. BACKGROUND: The upgrade of the City's data and voice microwave system, which links together all four of the City's remote radio sites serving public safety, public works,, and other City Hall Departments, was among the list of Capital Improvement Projects (CIP) approved by the City Council for this fiscal year. Purchased and installed in 1980, and modified in 1990, the system'sprimary path, which is between City Hall and BKK, is being operated at full capacity and must be expanded to make room for other applications of the overall system, such as providing an additional voice channel for both Police and Fire, interconnecting traffic signal' controllers installed throughout the City with the City Hall master control, interconnecting Community Services facilities to the City's data network, and providing for remote .radio control of irrigation equipment at Parks and Maintenance Districts. Additionally the interface equipments at the two satellite sites (i.e. atop 100 North Citrus and the Industry Hills water tanks) which link the various radio systems to the microwave, have been continually failing and need to be replaced so as not io jeopardize public safety radio communications. DISCUSSION: Upon approval of the CIP budget, a communications engineering consultant was hired and the required specifications were developed. A Request For Bids (RFB) was issued on November 14, 2001 and the RFB was sent to 7 prospective bidders. Only 4 potential bidders attended the mandatory pre -bid conference held on November 28, 2001, and at the bid opening on December 21, 2001, the following 2 bids were received: Vendor Total Cost * Telcom, Inc. $ 114,999.00 Oxnard, CA Full Spectrum Communications $ 143,961.76 Fullerton, CA Both quotes calculated the sales tax at 8%, the rate in effect as of_the bid due date; however it has increased to 8.25% effective January 1, 2002. Telcom's total price, adjustedzfor the additional .25% sales tax is $115,198.24. Full Spectrum's adjusted price is $144,259.88. Additionally, the RFB requested each bidder to include pricing for specific spare parts items to be considered as "optional items" with the cost of such to be separate from the total cost shown here. Bids .Evaluated. Both bids were evaluated by staff and the consultant. Telcom's bid meets all requirements and offers the lower cost of the two. Full Spectrum's bid does not include the required information for the equipment being offered, nor does it include a listing of references as required. Thus both staff and the consultant recommend that the bid be awarded to TelCom and that Full Spectrum's bid be set as as non -responsive. Included with the specific items listed as "Optional" items were spare circuit boards/ parts for the microwave system recommended by the equipment manufacturer. Telcom Inc. has offered the components at a total additional cost (including the applicable 8.25% sales tax) of $13,692.01. Staff has verified that it would be approximately 15% more expensive to purchase these components directly from the manufacturer, and further, by issuing a Purchase Order separate from the primary bid, Telcom will save approximately $560 in performance bond costs and will pass such savings on to the City. FISCAL IMPACT: This CIP project was funded at $135,000, and the overall. costs of the project are expected to be within that amount, as itemized below: Bid award (Inc]. sales tax adjusted for 8.25%) $ 115,198.24 Separate P. O. for spare boards/parts 13;692.01 Consultant's fee 4,000.00 Total cost $ 132,890.25 The project was to be funded from the Equipment Replacement Account. However, since the upgrade facilitates the system's use for other applications, as described above, a percentage of the overall. cost may be apportioned to those funds which support such applications, provided such funding is available. A review of the applicable restricted funds indicates $1.6,900 may be appropriated from the.Gas.Tax Fund (GT Fund # 124). RECOMMENDATION: It is recommended that the City Council a. Approve the award of Bid k I001-B for the upgrade of the City's data and voice microwave system to Telcom, Inc., of Oxnard, CA. for a total price (including the adjusted sales tax) of $115,198.24; b. Authorize. staff to issue a purchase _order in the amount of $13,692.01 to Telcom, Inc. for spare microwave. system parts; and c. Appropriate $16,900 from GT Fund # 124 to Account # 124-320-3278-7160 to fund a portion of the project'. Prepared by: J. T. Keating Interim Communications Director &% we n A`pproved by: Artie / fields Acting Finance Director 2