Agenda Item Wording:
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Conduct the second of two Public Hearings to amend the Measure N Spending Plan to appropriate $45,100 for the FY 2022/23 and $18,200 for FY 2023/24 to address cost increases related to patrol vehicle purchases and upfitting; and renew the five-year contract with Axon Enterprise Inc., totaling $1,738,749.49 and appropriate $128,112 for FY 2023/24.
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Deadline for Action: 6/19/2023
Submitting Department: Police Department
Contact Name and Phone Number: Chief Jason Salazar, ext. 4215, jason.salazar@visalia.city <mailto:jason.salazar@visalia.city> ; Captain Dan Ford, ext. XXX, Daniel.ford@visalia.city <mailto:Daniel.ford@visalia.city> ; Financial Analyst Liz Ybarra, ext.4250, liz.ybarra@visalia.city <mailto:liz.ybarra@visalia.city>
Department Recommendation:
Conduct the second of two Public Hearings to amend the Measure N Spending Plan to appropriate $45,100 for the FY 2022/23 and $18,200 for FY 2023/24 to address cost increases related to patrol vehicle purchases and upfitting; and renew the five-year contract with Axon Enterprise Inc., to fund the Body-Worn Camera (BWC) Program, totaling $1,738,749.49 and appropriate $128,112 for FY 2023/24.
Upon completion of the Public Hearing:
• Appropriate $45,100 for FY 2022/23 and $18,200 for FY 2023/24, from the Measure N (141) Fund to address cost increases related to patrol vehicle purchases and upfitting.
• Authorize the City Manager to execute an agreement with Axon Enterprise Inc. in the amount of $1,738,749.49 for a term of five (5) years, and appropriate $128,112 for FY 2023/24 from the Measure N (141) Fund.
Summary:
Measure N, the ½ cent sales tax that began April 1, 2017, requires the City to conduct two Public Hearings before amending the 2023/24 Spending plan to fund vehicle purchases for 2022/23 and 2023/24 totaling $63,300; and renewing the contract with Axon Enterprise Inc. to fund the BWC Program. The cost of renewal for the BWC program is $1,738,749.49, spread out over five years, and requiring an additional appropriation of $128,112 for FY 2023/24.
On May 1, 2023, City Council voted unanimously to allow City Staff to initiate the Measure N amendment process to increase the budget for the vehicle purchases related to Measure N positions and to renew the contract with Axon Enterprise Inc. This renewed contract would require an additional appropriation of $128,112 for FY 2023/24.
On May 18, 2023, City Staff met with the Measure N Committee and presented these two amendments, including a detailed summary of items being requested, the anticipated budget for each item, and why the cost had increased for each item. Upon being presented with each option, the committee was provided with an opportunity for comments. Upon accepting the motion, the committee recommended approving both the increased appropriations related to Measure N vehicle purchases, and renewing the contract with Axon Enterprise Inc.
Background Discussion:
The Measure N 10-year plan outlines the personnel to be funded. This includes equipment for each new position. These positions are added during the two-year budget along with the equipment which includes vehicles. In FY 21/22 a Police Officer position was included in the budget and during that time staff was unable to locate any vendors to purchase a patrol vehicle due to low inventory as a result of pandemic shutdowns and a microchip shortage. This vehicle was rolled into the FY 22/23 budget which includes another new officer/vehicle bringing the total to two (2) vehicles for this current fiscal year. In addition, next year’s (FY 23/24) budget includes another position and vehicle. Due to vehicle shortages and high inflation, the vehicle cost and equipment to upfit the vehicle (radios, lights, MDT’s, etc.) has increased significantly. For example, the total cost of a new patrol vehicle in FY 20/21 was $57,277 ($36,918 vehicle + $20,359 vehicle upfit) compared to the City’s last purchase in October 2022 of $75,464 ($50,459 vehicle + $25,005 vehicle upfit). This represents an overall cost increase of 31.75%.
In order to purchase these vehicles, staff is requesting an additional $63,300 from Measure N to cover the cost of these three vehicles and allocate funding at $80,000 for all Measure N vehicles moving forward.
|
Fund |
CIP |
Qty |
Unit Cost |
Budget |
Budget Available |
FY |
|
141 |
VH0214 |
1 |
$80,000 |
$56,000 |
($24,000) |
21/22 |
|
141 |
VH0253 |
1 |
$80,000 |
$58,900 |
($21,100) |
22/23 |
|
141 |
VH0253 |
1 |
$80,000 |
$61,800 |
($18,200) |
23/24 |
|
Funds Needed |
($63,300) |
|
The Department is also requesting to renew the five-year contract with Axon Enterprise Inc. in the amount of $1,738,750 for the BWC program. The Department began their BWC Program in 2018 and will reach the end of the current contract on June 30, 2023. The new five-year BWC contract will be more than the current contract which means the annual budget for the BWC will need to be increased as well.
The new contract increase is due to several factors. First, the base price of Axon services has grown significantly (estimated at over $250,000) since the deployment of the Department’s first contract in 2018. Second, the new contract requires an annual increase of four percent in years two through five as opposed to the previous fixed rate. This is an additional $61,053. Third, Axon now bundles their Officer Safety Plan (OSP) packages differently than the previous contract. Through the Department’s review, staff have selected the most basic and cost-efficient bundle offered by Axon and included additional options for approval.
The Department selected The Officer Safety Plan 7, which includes the following:
• Axon Body-Worn Camera
• BWC Docking Stations
• Technology Certification Assurance Plan
• Taser 7
• Taser Certification Bundle
• Taser 7 Docking Stations
• Axon Signal Sidearm
• Axon Standards
• Axon Respond
In addition to the Officer Safety Plan 7, the Department also selected the following options to improve and support the BWC program, Department training, and digital evidence and criminal investigations:
• Axon Migrate (no additional cost)
• Axon Investigate Pro (no additional cost)
• Axon Air (no additional cost)
• Axon Performance
• Axon Virtual Reality (includes Technology Certification Assurance Plan)
The table below reflects the costs associated with the Officer Safety Plan 7 and proposed options.
|
Table 1 |
|
Axon Officer Safety Plan - Basic Bundle with requested addition of VR and Performance |
|
Package Options |
List Price |
Net Price |
Qty |
Term |
Subtotal |
Tax |
Total |
|
OSP Plan 7 |
$183.07 |
$170.13 |
130 |
60 |
$1,327,014 |
$59,796.86 |
$1,386,801.86 |
|
VR Headset TAP Bundle |
$41.38 |
$41.38 |
2 |
60 |
$4,965.60 |
$369.70 |
$5,335.30 |
|
VR Tablet TAP Bundle |
$23.39 |
$23.39 |
2 |
60 |
$2,806.80 |
$210.60 |
$3,017.40 |
|
VR Controller Kit |
$2,434.69 |
$2,789.38 |
2 |
|
$5,578.76 |
$474.20 |
$6,052.96 |
|
Performance License |
$9 |
$8.33 |
130 |
60 |
$64,935 |
- |
$64,935 |
|
VR User License |
$20 |
$20 |
130 |
60 |
$156,000 |
|
156,000 |
|
VR User License-Additional |
$21.70 |
$17.36 |
25 |
60 |
$26,040 |
- |
$26,040 |
|
Basic License |
$15 |
$13 |
15 |
60 |
$11,700 |
- |
$11,700 |
|
Pro License |
$39.00 |
$33.80 |
23 |
60 |
$46,644 |
|
$46,644 |
|
Standards Implementation** |
$30,000 |
$29,952 |
1 |
|
$29,952 |
|
$29,952 |
|
Total |
$60,851.36 |
$1,736,487.52 |
**A discount was provided in this contract through negotiations to offset this cost.
The no cost items listed below in table 2, have a value of $95,205 and will only cost the City taxes on the equipment of $2,261.97 if purchased with the items listed in table 1 above.
|
Table 2 |
|
No Cost Additional Items for Table 2 |
|
Package Options |
List Price |
Net Price |
Qty |
Term |
Subtotal |
Tax |
Total |
|
VR Headset |
$1,935 |
$1,935 |
6 |
|
$11,610 |
$986 |
$12,596 |
|
Extra Left-Handed Holster |
$91.25 |
$27.79 |
2 |
|
$182.50 |
$15.51 |
$198.01 |
|
Extra Right-Handed Holster |
$91.25 |
$91.25 |
2 |
|
$182.50 |
$15.51 |
$198.01 |
|
Taser Target Frame |
$85.55 |
$85.55 |
4 |
|
$342.20 |
$29.09 |
$371.09 |
|
Taser Conductive Target |
$171.05 |
$171.05 |
4 |
|
$684.20 |
$58.16 |
$742.36 |
|
Axon Camera Bundle |
$749 |
$27.79 |
130 |
|
$3,612.70 |
$307.70 |
$3,919.77 |
|
Axon Investigate License |
$250 |
$250 |
3 |
60 |
$45,000 |
- |
$45,000 |
|
Axon Air Data License |
$32.55 |
$32.55 |
10 |
60 |
$21,330 |
- |
$21,330 |
|
Axon Migrate Channel Service |
$10,000 |
$10,000 |
1 |
|
$10,000 |
$850 |
$10,850 |
|
Total |
$2,261.97 |
$95,205.24 |
Fiscal Impact:
As indicated in the table below, staff request an additional appropriation of $45,100 in FY 22/23 and $18,200 in FY 23/24 to address a $63,300 budget shortfall for the purchase of three patrol vehicles.
|
Fund |
CIP |
Qty |
Unit Cost |
Budget |
Budget Available |
FY |
|
141 |
VH0214 |
1 |
$80,000 |
$56,000 |
($24,000.00) |
21/22 |
|
141 |
VH0253 |
1 |
$80,000 |
$58,900 |
($21,100.00) |
22/23A |
|
141 |
VH0253 |
1 |
$80,000 |
$61,800 |
($18,200.00) |
23/24 |
|
Funds Needed |
($63,300.00) |
|
Body-Worn Camera
As indicated in the Table below, staff requests a total allocation of $1,738,750 with payment schedule described below:
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Total |
|
Equipment & Services |
$301,599 |
$326,687 |
$337,608 |
$348,965 |
$360,777 |
$1,675,636 |
|
Tax |
$13,513 |
$11,693 |
$12,152 |
$12,630 |
$13,126 |
$63,114 |
|
Total |
$315,112 |
$338,380 |
$349,760 |
$361,595 |
$373,904 |
$1,738,750 |
Staff is requesting an additional appropriation of $128,112 for FY 23/24.
Prior Council Action: June 5, 2023 - City Staff presented the first of two Public Hearings May 1, 2023 - Council approved Staff to enter into the Measure N Process. June 18, 2018 - Council awarded $815,618 for BWC program with Axon Enterprise
Other: Measure N Committee reviewed and recommended approval of both items.
Alternatives: Deny the recommended motion.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to appropriate $45,100 for FY 2022/23 and $18,200 for FY 2023/24 from the Measure N (141) Fund to address cost increases associated with vehicle purchases; and authorize the City Manager to execute an agreement with Axon Enterprise Inc. in the amount of $1,738,749.49 for a term of five (5) years and appropriate $128,112 for FY 2023/24 from the Measure N (141) Fund.
end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Attachment A: June 5, 2023, Staff Report (File Number 23-0214/Public Hearing Number 2) Attachment B: May 1, 2023, Staff Report (File Number 23-0148/Agenda Number 2) Attachment C: Axon Enterprise Contract