Staff recommends that City Council approve the Agreement with PreCise MRM to continue with the Automatic Vehicle Location (AVL) system for three years with two one-year options to renew by mutual agreement.

Public Works has a large fleet of active vehicle assets that are critical to many of the City's core services.  In FY17, Public Works procured an AVL system in order to better protect and utilize these vehicle assets. Subsequently, the Parks and Planning Departments, as well as the Building Division purchased AVL equipment through the Agreement and utilize the AVL software.  AVL allows for tracking vehicles individually and collecting and reporting data on their location, history, speed, safety, and other diagnostics.  The AVL system enables staff to track and manage assigned work along with an array of parameters such as fuel consumption, de-icer product, snowplow activity, and driving behavior.  AVL gives supervisors a real-time look at how and where equipment is allocated, how it is being used, and its status.  AVL systems have the potential to save the City significant time and money. Data collected from the AVL hardware in vehicles can help the City correct and improve unsafe driving habits and inappropriate use of City vehicles.  AVL can also provide information to refute groundless claims against the City regarding vehicle accidents.

The procurement in FY17 was competed through the Request for Proposals (RFP) process and MarshallGIS was selected.  MarshallGIS was purchased by PreCise MRM and both the equipment and the software have performed well for the City. The current Agreement is expiring and because the current AVL system has met the City's needs and purchasing all new hardware would be costly, staff desires to continue utilizing the vendor as a sole source purchase.  The pricing was negotiated and compared with other AVL systems.  Staff found the pricing to be similar to other systems and the City will be able to avoid the one-time costs that it would have with a new vendor. PreCise MRM's software is a cost-effective proven solution that offers enhanced customer service and accurate and real-time operational data analysis through live map displays and dashboards.

City Council may:

• Approve the Agreement with PreCise MRM; or,
• Not approve the Agreement.  If not approved, City staff would not be able to view any AVL information on vehicles with installed AVL equipment or purchase additional AVL equipment for its fleet.

The City has already invested in AVL hardware; thus, the primary cost under the Agreement is for the annual software subscription.  The subscription price is $204 per vehicle per year which is the same price the City has been paying for the previous five years.  The breakout for the annual costs at current equipment levels is as follows:

Department or Division	Annual Cost
Building Division	$2,652.00
Parks Department	$4,692.00
Planning Department	$1,632.00
Public Works Department	$22,236.00
Total	$31,212.00

The hardware costs for AVL have increased substantially in the past five years and the new equipment prices in the Agreement are approximately double what the prices were five years ago.  To add AVL to a new vehicle, the upfront equipment cost is $125 for a standard vehicle.  The Building Division, Parks Department, Planning Department, and Public Works Department have included the costs for AVL in their FY22 operating and maintenance budgets.