Why isn’t local contract going to U.S. firm?

It comes down to significant savings for niche product, city staff tells council members

A Yuma councilman questioned why staff recommended that the city award a contract to a Canadian firm, rather than an American company. The discussion took place during Tuesday’s work session.

The consent agenda item called for authorizing City Administrator Greg Wilkinson to renew a software maintenance agreement for a term of five years at an estimated cost of $111,600 to be paid in advance to Radio IP Software from Quebec, Canada.

To comply with Arizona Criminal Justice Information System rules, law enforcement mobile data computers used in the field require that a Virtual Private Network be used, a staff report explained. Radio IP Software is the software developer and manufacturer of the VPN software used on the city’s public safety software system. Staff have been using Radio IP since the city implemented the system in January 2011.

Councilman Edward Thomas asked if there wasn’t a company in the U.S., specifically Arizona, that could do the work. Kathy Fernandez, information technology chief, noted that the Radio IP software is proprietary and no other vendor can provide maintenance.

The software is “very unique” and very few vendors manufacture the product or provide service, Fernandez added.

Wilkinson explained only two software vendors have a product that could do what the city needs. If the city went with someone new, it would mean a “significant undertaking ... almost starting over,” he said.

The report notes that the city is required to meet specific software and hardware criteria to maintain regulatory compliance as prescribed by ACJIS. The state’s portal to the FBI Criminal Justice Information System, ACJIS provides law enforcement agencies the ability to look up criminal history, warrants and other information on persons, vehicles, etc.

ACJIS provides information to help Yuma Public Safety personnel make decisions for officer and community safety and is an in-

tegral part of Yuma Public Safety operational process, the report states.

Thomas asked whether the city had done a comparison between vendors. Fernandez noted that the original agreement had been approved in 2011 and a comparison might have been done then, but that was before she joined the city.

However, she added, it came down to the significant cost savings that came with renewing the contract for a five-year term, which represents a 20 percent savings over the original contract cost of $139,500. The city anticipates a savings of $92,000 over the five-year term of the contract versus renewing the contract yearly.

The council unanimously voted to approve the contract renewal.

Funding for this software maintenance agreement will come from the Yuma Regional Communications System operating budget. All regional public safety agencies provide funding to YRCS through the payment of fees. The city has budgeted $120,000. There is no grant funding available for this contract.

YRCS was established in 2006 to ensure a coordinated, effective and efficient interoperable radio communications system for the benefit of all public safety agencies, including law enforcement, fire, emergency medical rescue and other services provided by the various agencies within Yuma County.

In other action, Councilwoman Leslie McClendon asked why staff recommended that the city reject all three bids received for graphic decals on all fleet vehicles.

A staff report noted that all three vendors did not provide or complete the required information requested in the solicitation. “The city’s best interest is not to award the Graphic Vehicle Decals solicitation at this time,” it said.

McClendon questioned whether the vendors were dictating the specifications. Robin Wilson, the city’s purchasing contracts manager, said that wasn’t the case. She explained that city staff decided to change the specifications so vendors could supply the product by the inch.

The city will hold a prebid conference during which vendors will learn how to do it this way and “hopefully come back with a successful product.”

The city code permits the council to reject all bids received in response to a solicitation “if it is determined by the Council that such action is taken in the best interests of the City.”

The council unanimously agreed to reject all bids.

On Wednesday, staff introduced an ordinance that would amend portion of the city code addressing alcoholic beverages by updating the liquor license categories to mirror those of the Arizona Department of Liquor Licenses and Control and increase the city’s special event liquor license application fee to cover actual costs incurred through the process.

A staff report noted that the city must amend the city’s liquor license categories to stay current with state law.

The current fee to process a special event liquor license is $20. However, processing the license includes staff time from various departments such as the police and fire departments, Community Development, Risk Management, Business Licensing and the City Clerk’s Office. The $20 application fee is insufficient to cover the time and efforts of staff costs, the report states. The proposed ordinance amends the special event liquor license application fee to $50.

The ordinance does not amend the current city annual license fee, the report added.