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3THE CITY OF PLEASANT LIVING To: From: Date: Subject: Background: OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM The Honorable Mayor & Members of the City Commission February 21,2017 Agenda Item No.:3 Steven Alexander, City Manager A Resolution authorizing the City Manager to purchase from Parker Systems a sole source distributor for T2 Systems Canada, Inc., f/k/a Digital Payment Technologies, Corp., a Canadian federal corporation authorized to transact business in the state of Florida, five (5) new model, Luke II, Parking Multi-Space Pay Stations. The City in 2010, via Resolution 230-10-13264 purchased 38, Luke I pay stations. Since then, the City has purchased an additional 15, Luke II machines, via Resolution 202-11-13516 and 185-15- 14524, respectively, which are the newest pay stations manufactured by T2 Systems Canada, Inc. Just recently, T2 Systems Canada announced "End of Support for the Luke I pay stations and will provide coverage for software and hardware until March 31, 2018. The company is citing "PCI compliance" (Payment Card Industry Security) which may be in jeopardy for the Luke 1 machines sold from 2009-2012. With the above mentioned and in anticipation of the retirement of the Luke I, the City of South Miami desires to purchase 5 Luke II automated parking pay stations from Parker Systems to retire 5 Luke I. Parker Systems maintains an exclusive, protected territory under contract with T2 Systems Canada, Inc; as such Parker Systems is the only distributor authorized to selt deliver and service T2 Systems Canada, Inc. products. The Luke II parking multi-space pay stations are the only pay stations that are compatible with the City's current parking IRIS management system, hence making these pay stations the only viable pay station available for purchase by City of South Miami. Furthermore, no other pay station can provide the services we need without replacing the entire pay station management system. Amount: Account: Attachments: Parker Systems through T2 Systems, has agreed to honor the prices provided to the City of Miami Beach from their RFP in 201l. Each new machine requires an additional regular operating cost of $35 per month, per machine, to operate the IRIS parking management software, which provides connectivity and reporting capabilities. For the upcoming fiscal year 2017-18, the City is anticipating purchasing a total of approximately 17 Luke II, in an effort to retire the remaining Luke I. An amount not to exceed $39,988. 301.1410.513.6430, Finance Operating Equipment, with a current balance of $50,000. Resolution for approval Parker Systems Quote T2 Systems Canada, Inc., f/k/a Digital Payment Technologies, Corp Sole Source Letter City of Miami Beach agreement, from RFP #46-10-11 1 RESOLUTION NO: _____ _ . 2 A Resolution authorizing the City Manager to purchase from Parker Systems a 3 sole source distributor for T2 Systems Canada, Inc., f/k/a Digital Payment 4 Technologies, Corp., a Canadian federal corporation authorized to transact business in 5 the State of Florida, five (5) new model, Luke II, Parking Multi-Space Pay Stations. 6 WHEREAS, the City of South Miami desires to purchase automated parking pay 7 stations from Parker Systems; and 8 WHEREAS, Parker Systems maintains an exclusive, protected territory under 9 contract with T2 Systems Canada, Inc; as such Parker Systems is the only distributor 10 authorized to sell, deliver and service T2 Systems Canada, Inc. products; and 11 WHEREAS, the Luke lis parking mUlti-space pay stations are the only pay stations 12 that are compatible with the City's current parking IRIS management system, hence 13 making the pay stations the only viable pay station available for purchase; and 14 WHEREAS, no other pay station can provide the services in questions without 15 replacing the entire pay station management system; and 16 WHEREAS, Parker Systems through T2 Systems, has agreed to honor the prices 17 provided to the City of Miami Beach from RFP #46-10-11; and 18 WHEREAS, each new machine provides for an additional regular operating cost 19 of $35 per month, per machine, to operate the EMS software which provides 20 connectivity and reporting capabilities; and 21 WHEREAS, these funds are allocated in account number 301-1410-513-6430, 22 Finance Operating Equipment Capital Improvement Fund within 2016/2017 fiscal year 23 budget with a current balance of $50,000. 24 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF 25 THE CITY OF SOUTH MIAMI, FLORIDA; 26 Section 1. The City Manager is authorized to purchase from Parker Systems a 27 sole source distributor for T2 Systems Canada, Inc., f/k/a Digital Payment Technologies, 28 Corp., a Canadian federal corporation authorized to transact business in the state of 29 Florida, five (5) new model, Luke II, Parking Multi-Space Pay Stations. The purchase will 30 made through a City of Miami Beach piggyback agreement, from RFP #46-10-11. 31 Section 2. Severability. If any section, clause, sentence, or phrase of this 32 resolution is for any reason held invalid or unconstitutional by a court of competent 33 jurisdiction, this holding shall not affect the validity of the remaining portions of this 34 resolution. 35 Section 3. This resolution shall become effective immediately upon adoption by 36 vote of the City Commission. 37 38 PASSED AND ADOPTED this __ day of ,2017 39 ATTEST: APPROVED: 40 41 42 CITY CLERK MAYOR 43 44 COMMISSION VOTE: 45 Mayor Stoddard: 46 READ AND APPROVED AS TO FORM, Vice Mayor Welsh: 47 LANGUAGE, LEGALITY AND Commissioner Harris: 48 EXECUTION THEREOF Commissioner Liebman: 49 Commissioner Edmond: 50 51 CITY ATTORN EY 52 PARKER SYSTEMS 1115 Bridgeway Blvd. Orlando, FL 32828 US Iynda@parkersystemsplace.com BILL TO Carlos Marenco City of South Miami 6130 Sunset Drive South Miami, FL 33143 ACTIVITY 900.0019 Luke 1I-100B 38 Key Solar/Coin/Bill/CreditiPrinter Includes: -880.0023 EnGenius WiFi Modem -115.0132 Bill Stacker (10) -115.0108 Coin Canister (10) SHIP TO Carlos Marenco City of South Miami 6130 Sunset Drive South Miami, FL 33143 BALANCE DUE INVOICE # 2016-2175 DATE 02/02/2017 DUE DATE 03/04/2017 TERMS Net 30 OTY RATE 5 7,997. 60 AMOUNT 39,988.00 $39,988.00 Feb 7, 2017 City of South Miami 6130 SW 72 St. South Miami, FL 33143 USA Alfredo Riverol Dear Mr. Riverol: 330-4321 Still Creek Drive Burnaby, BC V5C 6S7 Telephone 604-688-1959 Facsimile 604-687-4329 As a global leader in parking technology, T2 Systems (T2) offers high quality and reliable proprietary hardware and software products consisting of our LUKE, LUKE II and SHELBY pay stations, BOSS software, and EMS/Digital Iris management system. This letter is to inform you that the LUKE, LUKE II and SHELBY hardware, BOSS software, and EMS/Digital Iris management system are exclusive and proprietary of T2. T2 is the sole owner and manufacturer of the LUKE, LUKE II and SHELBY hardware, BOSS software, and EMS/Digital Iris management system. No other software or management system will support this hardware. In addition, this letter is to confirm that Parker Systems is the exclusive Resellerchannel for sale and support of these products and services in the state of Florida. If you have any further questions please feel free to inquire with your sales representative or contact me directly. Sincerely, Chris Chettle Chief Operating Officer chris.chettle@t2systems.com T2 Systems RESOLUTION NO. 2016-29423 A RESOLUTION OF 'THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHO~IZING THE CITY MANAGER TO EXECUTE, SUBSTANTIALLY IN THE; FORM ATTACHED TO THIS RESOLUTION, AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE CITY AND T2 SYSTEMS CANAQA, INC (T2 SYSTEMS) FORMERLY KNOWN AS DIGITAL PAYMENT TECHNOLOGIES· CORP. (DPT),' FOR PARKING PRODUCT$ AND ASSOCIATED INSTALLATION AND MAINTENANCE SEttYICES, DATED AUGUST 10, 2012; SAID AMENDMENT EXTENDING THE WARRANTY COVERAGE UNDER THE AGREEMENT FO~ THE REMAINING THREE (3) YEAR PERIOD, BASED UPON THE ESTABLISHED RATES UNDER THE AGREEMENT; AND FURTHER EXTENDING THE TERM OF THE AGREEMENT FOR AN ADDITIONAL THREE (3) YEAR PERIOD, COMMENCING ON AUGUST ii, 2016 AND EXPIRING ON' AUGUST 10, 2019, COTERMINOUS WITH THE EXTENDED WARRANTY TERM. . WHEREAS, on April 11, 2012, the Mayor and City Commis*,ion approved Resolution No. 2012-27891, relating to Request for Proposals (RFP) NQ. 46-10/11 for the purchase and installation of new multi-space pay stations for the City'~ on-street and off-street parking locations; authorizing the Administration to enter into n~9otiations with top ranked firm, Digital Payment Technologies Corp., a Canadian corporation eOPT'); and further authorizing the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, on August 10, 2012, the City and OPT executed ,n agreement pursuant to the RFP (the "Agreemenr); and . WHEREAS, 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; and ' WHEREAS, the Agreement further provided the City with an initi~1 two (2) year .manufacturer's warranty, with the option of extending the warranty coven,ge for the pay stations for an additional.five (5) years; and . WHEREAS, the initial term expired on August 9, 2014 and the term, including the extended warranty, were also extended for an additional two (2) year~, with a new expiration date of August 9,2016; and WHEREAS, the scope of the agreement related to the purchase of new multi- space pay stations has been completed and at this time the contractQr is providing extended maintenance and support to the existing equipment and real-tim,e connectivity services and access to reporting software; and WHEREAS, effective as of January 1, 2015, OPT was purchased ~y T2 Systems June 8,2016 T2 -Resolution Page 2 of2 Canada Inc., a Canadian corporation f'T2 Systems"). and OPT's corporate name was changed to T2 Systems; and WHEREAS, T2 Systems, a global leader in parking technology, offers high quality and reliable proprietary hardware and software products, con,isting of their Digital Luke II pay stations, BOSS software, and Digital Iris management ~ystem; and WHEREAS, the Digital Luke 1/ BOSS software, and Digital Iri$ management system used by the City are exclusive and proprietary of T2 Systems an~ may only be supported by T2 Systems; and WHEREAS, the City would be best served by exercising the remaining 'additional three (3) year extended warranty period provided for in the Agreement, at the pre- negotiated current rates, and concurrently extending the term of the Agr~ement so that the City may continue to receive connectivity and support services for the pay station system at the current rates, without the need to replace the entire system,· NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYQR AND CITY . COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve Amendment No. 1 to the Agreement betwe~n the City and T2 Systems Canada. Inc. (12 systems) formerly known as Digital Payment Technologies Corp .• for parking products and associated installation ang maintenance services, dated August 10, 2012; said amendment extending the warr~nty coverage under the Agreement for the remaining three (3) year period, ba§ed upon the established rates under the Agreement; and further extending the term of the Agreement for an additional three (3) year period, commencing on August 11, 2016 and expiring on August 10. 2019, coterminous with the extended warranty ter",. PASSED and ADOPTED this J day of 'Jt,,1It!-2016. ATTEST: We ore committed 10 providing excellenl public selVice ond sofety 10 0/1 who live, work, ond ploy in our vi COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving And Authorizing The City Manager To Execute, Substantially III The Form Attached To This Resolution, Amendment No. 1 To The Agreement Between The City And T2 Systems Canada, Inc (T2 Systems) Formerly Known As Digital Payment Technologies Corp. (OPT), For Parking Products And Associated Installation And Maintenance Services, Dated Augu,st 10, 2012; Said Amendment Extending The Warranty Coverage Under The Agreement For Th, Remaining Three (3) Year Period, Based Upon The Established Rates Under The Agreement; And Further Extending The Term Of The Agreement For An Additional Three (3) Year Period, Commencing On August 11,2016 And Expiring On August 10, 2019, Coterminous With The Extended Warranty Tenn. Key Intended Outcome Supported: Streamline the delivery of services through all departments. Supporting Data (SuNeys, Environmental Scan, etc,):. The City has a total of 4,9;36 metered spaces in parking lots and 3,888 on-street metered spaces. .. Item Summary/Recommendation: On August 10, 2012, the City entered into an agreement with Digital Payment Technplogles Corp. ("OPT") pursuant to the Mayor and Commissions award of 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 end off-street parking locations. The 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 sale discretion and approval of the City .. The initial term explr~d August 9, 2014 and was extended for an additional two (2) years with a new expiration of August 9, 2016. Additionally, OPT, a Canadian corporation was purchased by T2 Systems Canada Inc., a Canadian corporation as of January 1, 2015; therefore, all references to OPT throughout the Agreement shall be replaced with T2 Systems Canada Inc., a Canadian corporation ("T2 Systems") . • The scope of the agreement related to the purchase of new multi-space pay stations has been completed. At this time, the contractor is providing extended maintenance and support to the existing equipment. Additionally, they are providing real-time connectivity services and acces~ to reporting software. The City would be best served by continuing services by the current provider since it is not feasible to replace the entire system. To this end, an Amendment to the Agreement is necessary in order to extend the current agreement. AdminIstration Recommendation: Ado~t the Resolution. , Financial Information: Source of Amount / _.J Funds: 1 428,200 V ' 180 -0462-000325 ~ ~l 2 282,000 '\I 480-0463-000325, ~ 3 OSPI Total 710,200 Financial Impact Summary: . , . I Saul Frances City Clerk's Office Legislative Tracking: Si n-Offs: Department Director . SF KGB T:IAGENDA\2016\June\Parklng\T2Amend1-sum.doClC MIAMI BEACH ~ccount I'-' l/' AGENDA ITEM DATE MIAMI BEACH City of Miami Beach. 1700 Conventron Center Drive. Miami Beach. florida 33139. www.mtamlbeachfl.gov TO: FROM: DATE: COMMISSION MEMORANDUM Mayor Philip levine and Members of the City Commission Jimmy L. Morales, City Manager ~ /--.ft-. June 8, 2016 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHO~IZING THE CITY MANAGER TO EXECUTE, SUBSTANTIALLY IN THE FORM ATTACHED TO THIS RESOLUTION. AMENDMENT NO.1 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. DATED AUGUST 10, 2012: SAID AMENDMENT EXTENDING THE WARRANTY COVERAGE UNDER THE AGREEMENT FOR THE REMAINING THREE (3) YEAR Pt;RIOD. BASED UPON THE ESTABLISHED RATES UNDElf THE AGREEMENT: AND FURTHER EXTENDING THE TERM OF THE AGREEMENT FOR AN ADDITIONAL THREE (3) YEAR P~RIOD. COMMENCING ON AUGUST 11, 2016 AND EXPIRING ON AUGUST 10, 2019, COTERMINOUS WITH THE EXTENDED WAR~ANTY TERM. . ADMINISTRATION RECOMMENDATION Approve Amendment No. 1 to the Agreement between the City of Miami f3each and T2 Systems Canada Inc. for parking products and associated installation an~ maintenance services. BACKGROUND AND ANALYSIS On April 11, 2012, the Mayor and City Commission approved Resolution No. 2012- 27891, relating to Request for Proposals (RFP) No. 46-10111 for the purchase and installation of new multi-space pay stations for the City's on-street parking locations; authorizing the Administration to enter into negotiations with top rank~d firm, Digital Payment Technologies Corp. ("OPT"); and further authorizing the Mayor and City Clerk to execute an agreement upon completion of successful negotif;ltions by the Administration. On August 10, 2012, the City entered into an agreement with OPT, pursuant to the RFP for the purchase and installation of new multi-space pay stations for the City's on-street and off-street parking locations. June8,2016 T2 -Amendment No. 1 Page2of3 T2 Systems (T2) , 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. More specific details around the proprietary nature of these products include: . • • • • • • The Digital Iris SaaS (Software as a Service) connecting all Digital Luke II pay stations is developed and hosted by T2 systems. No other software or management system other than Iris will support the Digital Luke II hardware. Firmware required to maintain PCI compliance on the Digital Luke II pay station may only be developed and supported by T2. Specific components in the pay station, such as the printer an(1 its firmware, have been designed with a third party to only work with the Digital Luke II pay station and may only be sourced through T2. . Any attempt to change out any component within the Digit~1 Luke II pay station would void the existing CSAlUL listing. The Digital Luke II pay station will only support rates and configuration settings provided by T2's BOSS configuration software. The Digital Luke II pay station has a unique industrial design that is only manufactured and supplied by T2. . The term of the Agreement was for a period of two (2) years which coul(1 be extended for a further period by the parties in writing subject to the sole discretion and approval of the City. The initial term expired August 9,2014 and was extended for an additional two (2) years, including the corresponding extended warranty with a new expiration of August 9,2016. The Agreement further provided the City with an additional two (2) year manufacturer's warranty, with the option of extending the maintenance and warranty for the pay stations for an additional five (5) years. ' The scope of the agreement related to the purchase of new multi-space pay stations has been completed. At this time, the contractor is providing extended maintenance and support to the existing eqUipment. Additionally, they are provi(1ing real-time connectivity services and access to reporting software. Additionally, OPT, a Canadian corporation was purchased by T2 System~ Canada Inc., a Canadian corporation as of January 1, 2015; therefore, all references to OPT throughout the Agreement shall be replaced with T2 Systems Canada Ino., a Canadian corporation ("T2 Systems"). The City would be best served by continuing services by the current provider since it is not feasible to replace the entire system. To this end, an Amendment to t~e Agreement is necessary in order to extend the current. agreement. We Cl9 committed 10 provldill9 excellelll publIC s(oMce and $O!e~·/O aU \""'0 live. wolk, and plO}' in our vibronl, trapiCOl, hi$lOIiC c:ommunily. June 8.2016 T2 -Amendment No. 1 Page 30f3 Therefore, the Administration recommends executing an Amendment to the Agreement, extending the term of the Agreement and the extended warranty period for an additional period of three years, commencing on August 11, 2016 and expiring on August 10, 2019. Please note T2 is agreeable to the extension of the existing agreement under the same terms and, conditions. RECOMMENDATION It is recommended that the Mayor and CitY Commission approve Amendment No. 1 to the agreement between the City of Miami Beach and T2 Systems Canada Inc., substa~y in the form attached hereto as Exhibit A. JLM/K~SF T:\AGENOAI2016IJunelParklng\T2Amend1.MEMO.docx Exhibit A -Proposed Amendment No. 1 We ore commltfed 10 providlny ~Ko:ellenl public service and t.Ofe~· 10 all who live. work. ond ploy in our vtbionl. 'ropiCal. hlslOtlC commllnity. AMENDMENT NO.1 TO AGREEMENT FOR PARKING PRODUCTS AND ASSOCIATED INSTALLATION AND MAINTENANCE SERVICES This Amendme",t No.1 (the "AmendmentD) to the Agreement for parking products and associated installation and maintenance~i~ dated August 10, 2012 (the "Agreement") is made and entered into this 2.2dayof (J 2016, by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws of the State of Florida (hereinafter referred to as the "CityD) and T2 SYSTEMS CANADA, INC. a Canadian corporation, authorized to do business in the state of Florida (T2 Systems) formerly known as Digital Payment Technologies Cerp., a Canadian corperation (OPT), and hereby amend the Agreement as follows: RECITALS WHEREAS, on April 11, 2012, the Mayor and City Commission approved Resolution No. 2012-27891, relating to Request for Propesals (RFP) No. 46-10/11 fer the purchase and installation of new multi-space pay stations for the City's on-street and off-~treet parking locations; authorizing the Administratien to enter into negotiations with top ranked firm, Digital Payment Technolegies Corp., a Canadian corporation ("OPT"); and further alJthorizing the Mayer and City Clerk to, execute an agreement upon cempletion of successful n~gotlations by the Administration; and . WHEREAS, on August 10, 2012, the City and OPT executed an agreement pursuant to the RFP (the "Agreement"); and .' " WHEREAS, 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; and WHEREAS, the Agreement further provided the City with an initial two (2) year manufacturer's warranty, with the optien ef extending the warranty coverage fer ttte pay statien system for an additional five (5) years; and WHEREAS, the initial term expired on August 9, 2014 and the term, including the extended warranty ceverage, were extended for an additional two (2) years, with a new expiration of August 9, 2016; and WHEREAS, effective as of January 1, 2015, OPT was purchased by T2 Systems Canada Inc;, a Canadian corporation ("T2 Systems") and OPT's corporate name was changed to T2 Systems and; and WHEREAS, the City has decided to exercise its eption to extend the wammty coverage for years five (5) through seven (7) of the Agreement; and WHEREAS, on June 8,2016, the Mayor and City Commission adopted Resolution No. 2016-29423 , approving and authorizing the City Manager to execute this Amendment, extending "the warranty coverage, based upon the current rates set forth in the Agreement. and further extending the term of the Agreement for an additional three years, commenCing on August 11. 2016 and expiring on August 10, 2019, coterminous with the extended warranty term. .... J 1 .. NOW, THEREFORE, for and in consideration of the conditions and covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. the parties hereto agree as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated herein as part of this Amendment. 2. MODIFICATIONS. The Agreement is hereby modified as follows: A. All references to Digital Payment Technologies Corp .• a Canadian corporation ("OPT") throughout the Agreement shall be replaced with T2 Systems qanada Inc., a Canadian corporation ("T2 Systems"). B. The Term of the Agreement (including the extended warranty coverElge, as more particularly set forth in Exhibit A to the Agreement) is hereby ext~nded for an additional period of three (3) years, commencing on August 11. 2016 and expiring on August 10, 2019. 3. RATIFICATION. Except as amended herein. all other terms and conditions of the Agreement shall remain unchanged and in full force and effect. In the event there is a conflict betweefl the provisions of this Amendment and the Agreement, the provisions of this Amendment shall govern. IN WITNESS WHEREOF: the City and T2 Systems have caused this Amendment to be executed by their respective and duly authorized officers the day and year first hereinabove written. T2 SYSTEMS CANADA, INC. Jimmy l. Attest: Ra T:IAGENDA\2016Vune\Parking\T2Amend1-AMEND.docx