Title
Staff Report for a City of San Leandro City Council Resolution to Authorize the City Manager to Execute a Consulting Services Agreement for $358,491.04 with Invengo Technology Corp for a Radio Frequency Identification (RFID) System to Manage the Circulation of Library Materials
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution authorizing the City Manager to execute an agreement with Invengo Technology Corp to install and configure a new RFID System for inventory control and security of the library’s collection. The contract is for $358,491.04.
BACKGROUND
The Electromagnetic (EM) and Barcode Inventory Control and Security System currently utilized by the Library Department is outdated. Advancements in technology, specifically the development of Radio Frequency Identification (RFID) Inventory Control and Security Systems, offer significant opportunities for providing excellent, comprehensive self-service options for Library customers and the efficient, secure circulation of library materials.
ANALYSIS
The library’s existing EM-based equipment (for example, security gates and Circulation Desk staff workstations) is failing and out of warranty. The equipment is expensive or difficult to repair due to age, poor condition, and the lack of a service contract. The RFID System project includes installing new equipment at every library and adding tags, essentially computer chips, to every item in the collection. The upgrade to an RFID inventory control and security system will provide significant benefits for library customers including a complete self-service solution, from checking out to returning library material, through the implementation of self-service stations at every library.
An RFID self-service station allows a customer to check out multiple items in one single transaction by simply scanning a library card and placing multiple RFID-tagged items on the machine pad. The machine instantaneously scans and checks out all items to the patron completing the transaction. The library patron can return items just as easily by using a self-service station at any library location and following the same process as used when checking items out. The goal is that 75% of Circulation transactions will be completely self-service.
In April 2019, the City issued a Request for Proposals (RFP) to seek qualified proposals for a RFID system and an Automated Materials Handling (AMH) machine. The City received highly qualified proposals from five companies in June 2019. The RFID Proposal Review Committee undertook a thorough evaluation of the five proposals over several months and selected Invengo Technology Corp based on its RFID technology, innovative approach to applying RFID technology in libraries, extensive and proven track record of success as demonstrated by a list of very satisfied new and long-term customers, and a genuine willingness and flexibility to provide customized solutions to best meet the Library’s requirements in a cost-effective manner.
PREVIOUS CITY COUNCIL ACTIONS
None.
LEGAL ANALYSIS
The City Attorney’s office reviewed and approved the Consulting Services Agreement.
FISCAL IMPACTS
The total one-time cost to install the RFID System is $358,491.04. This includes a combination of hardware, software configuration, supplies, and labor cost. San Leandro Public Library Foundation’s contribution to the project will be a one-time gift of $52,000.00.
The ongoing hardware and software maintenance, including hardware replacements, software upgrades, and labor will be $26,234 per year.
BUDGET AUTHORITY
The Finance Director has determined there are sufficient Fiscal Year 2020-21 funds in the following accounts for the initial costs as follows:
• 688-13-121-7410: $258,491.04
• 150-68-012-7410: $48,000.00
• San Leandro Public Library Foundation: $52,000.00
Future ongoing maintenance will be paid from fund 688-13-001-5310.
ATTACHMENTS TO THE STAFF REPORT
• Consulting Services Agreement between the City of San Leandro and Invengo Technology Corp.
PREPARED BY: Bill Sherwood, Library Manager, Library Services Department