REPORT TO THE CITY COUNCIL November 7, 2019 FROM: GREGORY A. BARFIELD, Director Department of Transportation BY: BRIAN BARR, Assistant Director Department of Transportation NOEL VILLAVERDE, IS Supervisor Department of Transportation SUBJECT ..Title Actions related to award of a service contract with DILAX Systems Inc., of Quebec, Canada, in the amount of $67,131 1. Affirm the City Manager's determination that DILAX Systems, Inc., is uniquely qualified to perform maintenance services for the Department of Transportation, FAX Division, Automatic Passenger Counter system (APC) 2. Affirm the City Manager's determination that DILAX Systems, Inc., is uniquely capable as defined by the Federal Transit Administration for sole-source non-competitive procurements, to perform maintenance services for the Department of Transportation's Automatic Passenger Counter system 3. Award a two-year maintenance service agreement DILAX Systems, Inc., of Quebec, Canada, in the amount of $67,131, with two one-year options ..Body RECOMMENDATION Staff recommends Council affirm the City Manager's determination that DILAX Systems, Inc. (DILAX) is uniquely qualified and uniquely capable to perform the services for the Department of Transportation, FAX Division Automatic Passenger Counter (APC) systems and award a service agreement with DILAX in the amount of $67,131 for a two-year maintenance service agreement, with two one-year options to extend, to support FAX fleet operations' software and equipment. EXECUTIVE SUMMARY FAX seeks to maintain the integrity of its APC systems that provides its fixed-route system passenger counts and enhanced data reporting. To achieve this goal, FAX requests to enter into an extended maintenance service agreement with DILAX. The service agreement will provide the continued maintenance support of the APCS proprietary system hardware and software, which can only be provided by the system manufacturer. The integrity of this system is critical to FAX receiving Federal Transit Authority (FTA) grant funding for operations. BACKGROUND In June 2011, the Council awarded a state-of-the-art APC to DILAX. This technology enables FAX to automate passenger counts on-board buses and allowed FAX to discontinue manual survey, which then enhances data collection for the National Transit Database (NTD) reporting. NTD also certified the FAX APC system, which is critical to receiving FTA grant funding. This maintenance service agreement is integral for maintaining hardware and software integrity and can only be sole-sourced from the manufacturer of the software, DILAX. Please note future maintenance services shall be evaluated against the timing of the FAX backend system evaluation and upgrade project where modules such as the current APC system will be assessed for future system compatibility. The contract is for two-years with two one-year options. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDING By definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable as Federal funds preclude the use of local preference. FISCAL IMPACT No General Fund dollars shall be used for this award. This project is funded through FTA 5307 grants as included in the department FY20 budget. Attachments: Uniquely Qualified Memorandum Agreement with Dilax