Report Prepared by: Cosmo Orduñez, Public Work Manager-Internal Services
Title
SUBJECT: Approval of Services Agreement with Hoffman Electronic Systems for Electronic Monitoring Services at City Owned-Facilities in the Annual Amount not to Exceed $26,394 for the Initial Contract Term Beginning July 1, 2025 Through June 30, 2027
REPORT IN BRIEF
Considers approving an agreement with Hoffman Electronic Systems, in the annual amount not to exceed $26,394 for the initial two-year term, for electronic monitoring services at city owned facilities.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Services Agreement with Hoffman Electronic Systems, in the annual amount not to exceed $26,394 annually during the initial contract term, for electronic monitoring services at City-owned facilities for a two (2) year period, with an option to renew for a maximum of three (3) additional one (1) year periods including a limit of 5% increase in compensation per renewal term; and,
B. Authorizing the City Manager to execute the necessary documents and sign future contract amendments to exercise the option(s) to renew, including a maximum of 5% increase in compensation per renewal term, through June 30, 2030.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200 et seq.
Services with an estimated value greater than $38,000.00 are made by written contract in accordance with Merced Municipal Code, Title 3 - Revenue and Finance, Chapter 3.04.
CITY COUNCIL PRIORITIES
As provided for in the Fiscal Year 2025-2026 Proposed Budget.
DISCUSSION
The Public Works Department recently invited proposals to provide electronic alarm monitoring services at approximately 112-City owned-facilities including, but not limited to the following: Storm Drain Pump Stations, Sanitary Sewer Lift Stations, Water Well Tanks, Wastewater Treatment Plant Facility, Merced Transportation Center, Ralph Shannon Parcade, City Public Works Corporation Yard, Purchasing Facility, Merced Bell Station, Central and South Police Stations, Merced Civic Center, Merced Regional Airport, Applegate Zoo, Rossetti-Ed-Zoo-Cation Center, Stephen Leonard and McNamara Recreation Centers, Merced Senior Community Center, and City Traffic Signal/Lighting Warehouse. Please see Attachment 1 for a detailed listing of specific locations and alarm types.
Hoffman was the only vendor to respond to our Request for Proposal. Their services
will include the monitoring of temperature sensors of highly sensitive computer electronic components, high/low water levels at storm drain pump basins to prevent the potential flooding of city streets after storm events, fire detection systems, as well as burglar intrusion alarms and video camera monitoring.
They have provided monitoring services to the majority of our facilities from years 2002 through 2009, and 2015 to present. They have the necessary facility and experience to perform this work and continue to meet the needs of the City. All their work is completed by in-house employees and not subcontractors. This is important in regard to security concerns due to the need to safeguard confidential information and granting access to secured locations.
The contract agreement will be for a period of two (2) years, commencing on July 1, 2025, and ending on June 30, 2027, will not exceed $26,394 annually. The City has the option to extend the terms of the agreement through future contract amendments for up three additional periods of one-year term, ending on June 30, 2030. Compensation during future renewal terms will be limited to a 5% increase per renewal term.
IMPACT ON CITY RESOURCES
The annual contract amount of $26,394, includes the growth of City-owned facilities of new sites totaling $2,448 annually.
Funding for this service has been included in the Fiscal Year 2025/2026 Proposed budget. All future years will be included in the budget process.
ATTACHMENTS
1. City Locations and Alarm Types
2. Hoffman Agreement