HomeMy WebLinkAboutContract 41910-A1 CITY sECRETARY _
CONTRACT NO. . -
AMENDMENT NO. 1 TO
CITY SECRETARY CONTRACT NO. 41910
SYSTEM PURCHASE AGREEMENT
BETWEEN CITY OF FORT WORTH
AND
MOTOROLA SOLUTIONS INC.
This Amendment No. 1 ("Amendment") to City Secretary Contract No. 41910 System Purchase
Agreement ("Agreement"), is made and entered into by and between the City of Fort Worth (the "City"), a
home rule municipal corporation situated in portions of Tarrant, Denton, and Wise Counties, Texas acting
by and through Susan Alanis, its duly authorized Assistant City Manager, and Motorola Solutions Inc.,
("Consultant"), acting by and through Dan Delaney its duly authorized MSSI Vice President, collectively
referred to as the"Parties."
RECITALS
The following provisions are true and correct and form the basis of this Amendment:
WHEREAS, on or about June 14, 2011, the parties entered into a System Purchase Agreement
("Agreement") to purchase a P25 Radio Communication System. The Agreement is a public document
on file in the City's Secretary Office and referenced as City Secretary Contract No. 41910; and
WHEREAS, the Parties wish to amend the agreement to incorporate changes agreed to during the
Design Review and in accordance with the Agreement, to modify pricing structure, system description,
scope of services, acceptance testing, equipment, LTE services, and other items as deemed necessary
and agreed to by the Parties.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the City and Consultant agree as follows:
1.
The agreement shall be modified to incorporate changes agreed by the Parties during the Design
Review set forth herein and in the following Change Order 1, which is attached hereto or incorporated by
reference and hereby made part of this Agreement. The agreed changes include the addition of the
following new exhibits:
1. Change Order 1 Section 7A Pricing Summary
2. Change Order 1 Exhibit G Performance Summary
3. Change Order 1 Section 5C Coverage Acceptance Test Plan
The agreed changes also include replacing in their entirety the original System Description,
Coverage Maps, Statement of Work, Training, Coverage ATP Sections, LTE Addendum and Equipment
List Exhibits with the following documents:
4. Change Order 1 Section 2 System Description
5. Change Order 1 Section 2A Coverage Maps
6. Change Order 1 Section 3 Statement of Work
7. Change Order 1 Section 3A Training
8. Change Order 1 Section 5 Coverage Acceptance Test Plan
9. Change Order 1 Section 5A Coverage Acceptance Test Plan
j OFFICIAL RECORD
CITY SECRETARY
" : 45 IN
FT. WORTH, Tx
10. Change Order 1 Section 5B Coverage Acceptance Test Plan
11. Change Order 1 Section 10 LTE Addendum
12. Change Order 1 Exhibit H Equipment List
All Exhibits referred to in items 1-12 of Section 1 of this Amendment are attached hereto,
incorporated herein and made a part of the Agreement for all purposes.
2.
All other provisions of the Agreement that are not expressly amended herein shall remain in full
force and effect.
Executed on this the 7-3 day of 2012.
CITY OF FORT WORTH: MOTOROLA SOLUT NS I
<5�L�By: By;
an Alanis
sistant City Manager
Date: l'2� foil m
ate:
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APPROVED AS TO FORM AND LEGALITY:
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Assist t City Attorney
Contract Authorization:
M&C: G-17303
Date Approved: June 14, 2011
CFW/Motorola
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Amendment No.I to CSC No. 41910
NLw,e 2 of OFFICIAL RECORD'
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CITY SECRETARY
�, FT. WORTH, TX
MOTOROLA SOLUTIONS CHANGE ORDER
Change Order No. 1
Date: March 1, 2012
Project Name: Fort Worth P25 Upgrade Project-TX-101192A
Customer Name: City of Fort Worth
Customer Project Mgr: Alan Girton
The purpose of this Change Order is to:
Incorporate the changes agreed to by the Parties during the Design Review. The agreed changes include
the addition of the following new exhibits:
1. Change Order 1 Section 7A Pricing Summary
2. Change Order 1 Exhibit G Performance Schedule
3. Change Order 1 Section 5C Coverage Acceptance Test Plan
The agreed changes also include replacing in their entirety the original System Description, Coverage Maps,
Statement of Work, Training, Coverage ATP Sections, LTE Addendum, and Equipment List Exhibits with the
following documents:
4. Change Order 1 Section 2 System Description
5. Change Order 1 Section 2A Coverage Maps
6. Change Order 1 Section 3 Statement of Work
7. Change Order 1 Section 3ATraining
8. Change Order 1 Section 5 Coverage Acceptance Test Plan
9. Change Order 1 Section 5A Coverage Acceptance Test Plan
10. Change Order 1 Section 5B Coverage Acceptance Test Plan
11. Change Order 1 Section 10 LTE Addendum
12. Change Order 1 Exhibit H Equipment List
Contract# City of Fort Worth: Contract 41910 Contract Date: 6/23/11
Motorola Solutions Contract: 11-11006/DL
In accordance with the terms and conditions of the contract identified above between The City of Fort
Worth and Motorola Solutions, Inc.,the following changes are approved:
Contract Price Adjustments
Original Contract Value: $39,345,641.55
Previous Change Order amounts for Change Order numbers
O
Jl N/A
This Change Order: $3,199,342.79 credit for future added
equipment or services
New Contract Value: $39,345,641.55
Completion Date Adjustments
Original Completion Date: 12/31/2014
Current Completion Date prior to this Change Order: 12/31/2014
New Completion Date: 2/28/2015
Fort Worth P25 Upgrade Page 1 of 3
Project
rrro'iOROLA SOLUTIONS CHANGE ORDER
Changes and Additions to the System Purchase Agreement SPA Exhibits:
The following Exhibits are attached to this Change Order and are incorporated by this reference into the
Contract as new Exhibits:
1. Change Order 1 Section 7A Pricing Summary dated March 1, 2012
2. Change Order 1 Exhibit G Performance Schedule dated March 1, 2012
3. Change Order 1 Section 5C Coverage Acceptance Test Plan dated March 1, 2012
In addition, the original System Description, Coverage Maps, Statement of Work, Training, Coverage ATP
Sections, LTE Addendum, and Equipment List Exhibits are replaced in their entirety with the following
documents, which are attached to this Change Order and incorporated by this reference:
4. Change Order 1 Section 2 System Description dated March 1, 2012
5. Change Order 1 Section 2A Coverage Maps dated March 1, 2012
6. Change Order 1 Section 3 Statement of Work dated March 1, 2012
7. Change Order 1 Section 3ATraining dated March 1. 2012
8. Change Order 1 Section 5 Coverage Acceptance Test Plan dated March 1. 2012
9. Change Order 1 Section 5A Coverage Acceptance Test Plan dated March 1, 2012
10. Change Order 1 Section 5B Coverage Acceptance Test Plan dated March 1, 2012
11. Change Order 1 Section 10 LTE Addendum dated March 1. 2012
12. Change Order 1 Exhibit H Equipment List dated March 1 2012
Changes in Equipment:
Various changes in equipment are identified in detail in the following-documents: Change Order 1 Section
7A Pricing Summary, Change Order 1 Section 2 System Description, Change Order 1 Section 3 Statement
of Work, and Change Order 1 Exhibit H Equipment List.
Changes in Services:
Various changes in services are identified in detail in the following documents: Change Order 1 Section 3
Statement of Work, Change Order 1 Section 10 LTE Addendum, and Change Order 1 Section 3A Training.
Schedule Changes:
Schedule changes are updated in this Change Order 1 document, in Change Order 1 Section 3 Statement of
Work, and the Change Order 1 Exhibit G Performance Schedule.
Pricing Changes:
As a result of this Change Order, the total identified equipment and services has been reduced by the amount
of$3,199,342.79. The Total Contract Price will not change as a result of this Change Order, but the amount
of$3,199,342.79 will be held as a credit solely to offset the price of additional equipment and services that
will be added pursuant to future change orders. This credit amount is calculated to allow the City to retain the
original system discount of$4,952,275.57, based upon the original system purchase.
Warranty Changes:
The Warranty Period for each subscriber ordered and delivered in calendar year 2011 will be for a period of
two (2)years after the subscriber is programmed, but in no event longer than thirty(30) months after
shipment of the subscriber.
Customer Responsibilities:
Customer responsibility changes are identified in the updated Change Order 1 Section 3 Statement of Work.
Fort Worth P25 Upgrade Page 2 of 3
Project
Afft MOTOROLA SOLUTIONS CHANGE ORDER
Payment Schedule Changes:
There are no changes to the Payment Schedule.
Unless amended above, all other terms and conditions of the Contract shall remain in full force. If there
are any inconsistencies between the provisions of this Change Order and the provisions of the Contract,
the provisions of the Change Order will prevail.
IN WITNESS WHEREOF the parties have ecuted this Change Order as of the last date signed below.
Reviewed by: Date:
M t ola roject M ager
Reviewed by: Date:
City of Fort o rolect Manager
MOTOROLA SOLLITIO / CITY OF FORT WORTH
By.
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OFFICIAL RECORD]
CITY SECRETARY
FT WORTH, TX '
Fort Worth P25 Upgrade Page 3 of 3
Project
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1ATE: 6/14/2011 REFERENCE NO.: G-17303 LOG NAME: 13TAX
NOTES 11
:ODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
.OBJECT: Approve One-Time Exception to the Financial Management Policy Statements to Allow the Use
of Debt Structures Involving Balloon Payments for the Sole Purpose of Financing the Upgrade
to the City's Public Safety and Public Works Radio Communications System Via Tax Notes,
Adopt Ordinance Authorizing Issuance of Tax Notes in the Principal Amount of$43,050,000.00,
Approving the Sale of the Notes to JP Morgan Chase, Providing for the Levy, Assessment and
Collection of a Tax Sufficient to Pay the Interest on Said Notes, Create a Sinking Fund for the
Payment of the Principal Thereof and Ordaining Other Matters Related Thereto, Authorize
Execution of a System Purchase Agreement in the Amount Not to Exceed $39,345,641.55 with
Motorola Solutions, Inc., for Equipment and Professional Services Using a Houston-Galveston
Area Contract, and Authorize Execution of Amendment No. 2 to City Secretary Contract No.
40264 with Buford Goff&Associates to Provide Engineering and Quality Assurance Services in
the Amount Not to Exceed $2,900,000.00
IECOMMENDATION:
It is recommended that the City Council
1. Approve a one-time exception to the Financial Management Policy Statements to
allow the use of debt structures involving balloon payments for the sole purpose of
financing the upgrade to the City's Public Safety and Public Works radio
communications system via Tax Notes;
2. Adopt the attached ordinance authorizing the issuance of Tax Notes in the
principal amount of$43,050,000.00, approving the sale of the notes to JP Morgan
Chase; providing for the levy, assessment and collection of a tax sufficient to pay the
interest on said notes and to create a sinking fund for the payment of the principal
thereof and ordaining other matters related thereto;
3. Authorize execution of a system purchase agreement in the amount not to
exceed $39,345,641.55 with Motorola Solutions, Inc., for equipment and
professional services using Houston-Galveston Area Contract number RA01-08; and
4. Authorize execution of Amendment No. 2 to City Secretary Contract No. 40264
with Buford Goff&Associates to provide engineering and quality assurance services
in the amount not to exceed $2,900,000.00.
)ISCUSSION:
If approved, this M&C will approve a one-time exception to the Financial
Management Policy Statements (FMPS) regarding debt structures with balloon
payments, authorize the issuance and sale of Tax Notes to JP Morgan Chase in
order to fund the project to upgrade the City's public safety and public works radio
communications system instead of using the lease-purchase agreement previously
approved, and authorize the execution of the related purchase and services
agreements.
The FM PS, adopted by the City Council on December 14, 2010, prohibits balloon
debt repayment schedules which consist of low annual payments and one large
payment of the balance due at the end of the term. However, due to a unique
combination of circumstances, including rare market conditions, financing
restrictions, and the urgency of the project to ensure continued maximum public
safety, staff is seeking a one-time exception to the policy for the sole purpose of
funding this long-term project via Tax Notes which have a maximum life of seven
years. The principal pay-down schedule would mirror a standard 10-year issue for
the first six years, thus avoiding the spirit of typical balloon-payment financing. It is
anticipated that the Tax Notes will be refunded prior to final maturity to accomplish
proper amortization periods.
On May 17, 2011, (M&C P-11234 revised) the City Council approved the acquisition
of hardware, software and services to upgrade the City's public safety and public
works radio communications system. On this same M&C, the staff recommendation
was to fund this project via a lease-purchase agreement with Motorola. On today's
Agenda is M&C G-17302 for separate consideration as staffs recommendation to
rescind that authorization and repeal the related ordinances. Because of current
market conditions, the City can finance this project quickly via Tax Notes, resulting in
a projected savings of approximately $500,000.00 annually over the lease-purchase
cost. Although the method of financing is transferring from lease-purchase to
financed purchase, the General Fund will continue to be the source of repayment.
The upgrade to a current generation digital system will more effectively meet the
requirements of first responders, and fulfills state and federal objectives for
interoperability amongst the region's similar agencies. This system will replace the
City's current system acquired in 1992, which is no longer supported by the
manufacturer.
On September 16, 2008, M&C C-23055 was approved, authorizing Buford Goff and
Associates, Inc., (BGA) to perform an assessment of the public safety radio system.
In March 2009, BGA presented a report that key components of the system had
reached end of their life expectancy, were no longer supported by the manufacturer
and could suffer failures when taxed by emergencies and increased traffic. In light of
these factors, the City was encouraged to act as soon as possible.
On May 18, 2010, City Council approved M&C C-24221 authorizing BGA to develop
a master plan for the City to upgrade its radio systems, and negotiate a
competitively-priced agreement with the City's communications provider, Motorola
Solutions, Inc. The master plan reinforced the urgency of the 2009 study. Given the
current fragile state of the system, increasing service outages, the unavailability of
replacement parts, and the financial challenges the City is facing, the Master Plan
attempted to balance these factors and ensure a stable, reliable and secure
communications infrastructure for Police, Fire, Water, Transportation and Public
Works, Parks and Community Service and other City departments.
On June 15, 2010, M&C C-24272 was approved to authorize the acquisition of the
Project 25 (P25) standard master switch, or the core, of a current generation radio
system along with one small site to operate as a potential backup to the existing
system. The plan proposed by BGA and Motorola Solutions, Inc., builds upon the
installation of this master switch and the initial site.
Because of the magnitude of this project, the full build-out and migration is expected
to require almost 48 months to complete. Assuming contract execution in July 2011,
the project would be scheduled for completion in the first quarter of 2015.
The total cost of the project is estimated not to exceed $53,000,000.00. This total
includes $39,345,641.55 for hardware, software and services acquired through the
System Purchase Agreement with Motorola Solutions, Inc.; $2,900,000.00 for
engineering, consulting, and other professional services from BGA through March
2015; and additional costs for project management and site construction. Additional
M&Cs will be submitted to the City Council for approval of these other project costs
as necessary.
Staff recommends execution of the System Purchase Agreement with Motorola
Solutions. Under this agreement, the system implemented will include expanded
coverage areas, specifically in west Fort Worth and at Texas Motor Speedway, and
it will provide additional security features which will help prevent unauthorized
monitoring of public safety communications transmissions. Public works personnel
will also utlize a segment of this system, and if a significant event occurs, public
safety personnel will have access to the public works portion as well. Ongoing
support capabilities will be enhanced through 7x24 monitoring and dispatch by
Motorola's network operations center.
Staff also recommends execution of Amendment No. 2 to City Secretary Contract
No. 40264 with Buford Goff&Associates for the provision of engineering, consulting
and other professional services through March 2015. These services will include
detailed work regarding system design reviews, frequency licensing, acceptance
testing and other critical program functions.
Staff is continuing to explore cooperative measures with other agencies for potential
cost sharing and joint participation. This project is structured in such a way to enable
such measures if they are realized in the future. It is anticipated that the Crime
Control and Prevention District (CCPD) will transfer funds, at a future date via M&C,
to offset a portion of the total cost and provide a funding source for the Fiscal Year
2012 debt service payment. Additionally, it is anticipated that the City Manger's
Proposed Budget will include General Fund debt service transfers beginning in
Fiscal Year 2013.
PRICE ANALYSIS - The HGAC contract offers fixed discounts ranging from five
percent to 25 percent, which remain unchanged from the previous purchase
Agreement approved by City Council on March 18, 2008, M&C P-10750. Staff
reviewed the pricing and determined it to be fair and reasonable.
COOPERATIVE PURCHASE - State law provides that a local government
purchasing an item under a cooperative purchasing Agreement satisfies any state
law requiring that the local government seek competitive bids for purchase of the
item. The Houston-Galveston Area Council contract was competitively bid to
increase and simplify the purchasing power of government entities.
M/WBE - Buford Goff and Associates, Inc., agrees to maintain its initial M/WBE
commitment of five percent that it made on the original agreement and extend and
maintain that same M/WBE commitment of five percent to this Amendment No. 2.
Therefore Buford Goff and Associates, Inc., remains in compliance with the City's M/
WBE Ordinance and attests to its commitment by its signature on the Acceptance of
Previous M/WBE Commitment form executed by an authorized representative of its
company. A waiver of the goal for M/WBE subcontracting requirements for Motorola
Solutions, Inc., was approved by the M/WBE Office because the purchase of goods
or services is from sources where subcontracting or supplier opportunities are
negligible.
:ISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds will be available
upon completion of the sale, closing and delivery of approximately $43,050,000.00
City of Fort Worth, Texas, Tax Notes, Series 2011.
The Financial Management Services Director also certifies that funds will be
available to make the debt service payments on these obligations, and funds will be
available in the General Fund, as appropriated, to satisfy the City's obligations.
TO Fund/Account/Centers FROM Fund/Account/Centers
submitted for City Manager's Karen Montgomery (6222)
)ffice by:
)riginating Department Head: Lena Ellis (8517)
Wditional Information Contact: James Mauldin (2438)
►TTACHMENTS
note ord draft 060611.doc