Item Coversheet

Resolutions - R7  E




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:June  5, 2019
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN RECOMMENDATION OF THE CITY MANAGER (AS SET FORTH IN THE CITY COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION) AND WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY AND T2 SYSTEMS CANADA, INC (T2 SYSTEMS) FORMERLY KNOWN AS DIGITAL PAYMENT TECHNOLOGIES CORP. (DPT), FOR PARKING PRODUCTS AND ASSOCIATED INSTALLATION AND MAINTENANCE SERVICES; SAID AMENDMENT EXTENDING THE TERM OF THE AGREEMENT AND THE WARRANTY COVERAGE FOR AN ADDITIONAL THREE (3) YEAR PERIOD, COMMENCING ON AUGUST 11, 2019, WITH AN ADDITIONAL RENEWAL OPTION OF TWO (2) YEARS BASED UPON THE ESTABLISHED RATES UNDER THE AGREEMENT; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL AGREEMENT.


RECOMMENDATION

The City Manager recommends that the Mayor and City Commission waive the formal competitive bidding requirement, by a 5/7ths vote, as permitted under Section 2-367(e) of the City Code, as being in the best interest of the City.


ANALYSIS

On April 11, 2012, the Mayor and City Commission adopted Resolution No. 2012-27891, authorizing the Mayor and City Clerk to execute an agreement with Digital Payment Technologies Corporation (DTP), upon completion of successful negotiations by the Administration, pursuant to Request for Proposals (RFP) No. 46-10/11 for the purchase and installation of new multi-space pay stations for the City’s on-street and off-street parking locations.

 

On August 10, 2012, the City and DPT executed an agreement pursuant to the RFP (the “Agreement”).

 

The initial term of the Agreement was for a period of two (2) years, which could be extended for a further period by the parties in writing, subject to the sole discretion and approval of the City. The Agreement further provided the City with an initial two (2) year manufacturer’s warranty, with the option of extending the warranty coverage for the pay stations for an additional five (5) years.

 

The initial term expired on August 9, 2014 and the term, including the extended warranty coverage, were extended for an additional two (2) years, with a new expiration of August 9, 2016.

 

On January 1, 2015, DPT was purchased by T2 Systems Canada Inc., a Canadian corporation (“T2 Systems”), and DPT’s corporate name was changed to T2 Systems.

 

On June 8, 2016, the Mayor and City Commission adopted Resolution No. 2016-29423, approving and authorizing the City Manager to execute Amendment No. 1 to the Agreement, extending the warranty coverage and further extending the term of the Agreement for an additional three years, expiring on August 10, 2019.

 

The scope of the Agreement related to the purchase of new multi-space pay stations is complete and the contractor is currently only providing extended maintenance and support to the existing equipment and real-time connectivity services and access to reporting software.

 

T2 Systems, a global leader in parking technology, offers high quality and reliable proprietary hardware and software products, consisting of their Digital Luke II pay stations, BOSS software, and Digital Iris management system. The Digital Luke II BOSS software, and Digital Iris management system used by the City are exclusive and proprietary of T2 Systems and may only be supported by T2 Systems.

 

The City currently operates 743 Luke II Pay stations. The useful life of parking pay stations is up to 15 years. Since these were installed at the end of 2012, they still have a remaining useful life of eight (8) years. Seeking competitive bidding for this service would require the complete replacement of all the pay stations which represented a substantial capital investment.

 

In order to take advantage of the full useful life of the parking pay stations, it is in the City’s best interest to extend the current agreement with T2 Systems for an additional three (3) year, with a two (2) year renewal option, to receive connectivity and support services at the same rates, terms and conditions of the current agreement.


CONCLUSION

The City Manager recommends approving the resolution, and waiving by 5/7th vote, the formal competitive bidding requirement, finding such waiver to be in the best interest of the City, and approving, in substantial form, Amendment No. 2 to the Agreement between the City and T2 Systems Canada, Inc (T2 Systems) formerly known as Digital Payment Technologies Corp. (DPT), for parking products and associated installation and maintenance services; said amendment extending the term of the Agreement and the warranty coverage for an additional three (3) year period, commencing on August 11, 2019, with an additional renewal option of two (2) years, based upon the established rates under the Agreement; and further authorize the City Manager to execute the final Amendment.
Legislative Tracking
Parking

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