1. AUTHORIZATION TO INCREASE PURCHASE ORDER NO WITH CALE AMERICA BY $82,000 FOR A TOTAL AMOUNT NOT TO EXCEED $156,995 FOR CALE WEB OFFICE FEES AND PURCHASE OF METER REPLACEMENT PARTS
City Council
May 19, 2017

2. Recommendation
Find that this action is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the General Rule that CEQA only applies to projects that may have an effect on the environment;
Authorize an increase to purchase order , with CALE America, for $82,000 for a total purchase order amount not to exceed $156,995 for CALE meter hosting services and purchase of meter replacement parts for FY Competitive bidding is not required pursuant to City Charter Section 1002(C), contracts for labor, materials, supplies or contract services available from only one vendor; and 

3. Recommendation
Authorize the City Manager to enter into a one year purchase order beginning FY 2018 with two additional one year options, with CALE America for meter hosting services, labor, and the “Partsmart” extended warranty program at an annual cost not to exceed $103,594 per year. The total amount of this purchase order if all options were exercised would be $310,782; and
Grant the proposed action an exemption from the Competitive Selection process pursuant to Pasadena Municipal Code Section (B) contracts for which the City’s best interests are served.

4. Background
The first CALE multi-space parking meters were installed in The parking meters have been purchased periodically since then and there are now 114 CALE pay-and-display multi-space meters currently in use throughout the City.
Original procurement included 5-year
warranty for parts/labor
Warranty on oldest meters expired during
FY 2017 which increased costs of repair
Older meters incurred more repairs as
they aged

5. Background
City’s best interests are served by acquiring meter parts in the current fiscal year to continue to provide maintenance for the continued operation of the parking meters
Purchase Order prepared at the beginning of FY 2017 did not anticipate the accelerated need for parts replacement and the ensuing increase in cost
Increasing the purchase order with CALE America by $82,000 in FY 2017 will provide for the needed meter parts
Procuring an extended meter warranty from CALE America would reduce and stabilize costs for replacement parts
The cost of the “Partsmart” extended warranty program is $40,594 per year, which includes $3,000 for labor costs

6. Background
Web hosting is a necessary component of smart meter operation through which credit cards may used at the meters.
The City currently contracts with CALE America for meter hosting services for $63,000 annually.
For FY 2018 to FY 2020, staff is recommending a one-year agreement with CALE America that combines the Partsmart and web hosting services, not to exceed $103,594, with two additional one-year options with the City Manager’s approval for a total amount of $310,782 for the three-year agreement if all options were exercised.

7. Council Policy Consideration
The proposed action is consistent with the City Council’s strategic plan goal to maintain fiscal responsibility and stability.

8. Fiscal Impact
The cost of this FY 2017 action is $82,000 to increase Purchase Order Funding will be utilized by existing FY 2017 approved budget appropriation and will be distributed as follows:
Funding will be included in the Department of Transportation’s operating budgets from FY 2018 to FY 2020.
Account
Amount
$10,000
$  2,000
$15,000
$  5,000
Total
$82,000