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Page 2 of 4 <br />to accommodate regular, holiday, special event, and annual time-change schedules. Ongoing <br />management of the Galaxy System and the purchase of compatible components may only be performed <br />by an authorized dealer registered through Galaxy Control Systems of Walkersville, Maryland. Further, <br />the need for rapid response to diagnose and remedy access control and lock failures at City facilities is <br />critical to ensure security for City employees and property. <br />The City also utilizes a Schlage Quad Primus Master Key System (Primus System) for internal and external <br />door locks. The Primus System controls and tracks the issuance of physical keys to authorized individuals <br />and the installation of lock cylinders on individual doors. PWS also oversees on-call repair of door locks <br />and other hardware, rekeying, key duplication (including for vehicles and equipment), and twenty-four- <br />hour, three hundred sixty-five days per year mobile locksmith services. <br />In 2018, Lockworks Unlimited, Inc. (Lockworks) was awarded a multi-year contract for ongoing <br />management of the Galaxy and Primus systems and related services following a formal bid solicitation in <br />which they were the sole bidder. The agreement expires in September 2024. <br />ANALYSIS <br />Per section 2.67.4 (C)(1) of Article VII of Chapter 2 in the City’s Municipal Code, “[G]oods, materials, <br />equipment, supplies, and support services may be obtained by negotiated contract and without a <br />competitive bidding process, when the City Council determines that, due to the nature of the goods, <br />materials, supplies, equipment or support services: a competitive bidding process is not likely to serve the <br />best interests of the City or to result in the lowest price.” <br />As the original installer of the Galaxy and Primus Systems in Redwood City facilities, Lockworks’ <br />relationship with the City dates back almost 20 years. They have been the City’s only provider of these <br />services during this span and are the only authorized dealer of the Galaxy System in San Mateo County. <br />As a local business based in Redwood City, they can provide the rapid response times required when staff <br />encounters access control issues at City facilities. Lockworks also presents a unique value proposition, as <br />they are the only known Galaxy-authorized dealer that also provides locksmith services. Their <br />management of the Primus key system creates efficiencies by eliminating the need for City staff to <br />maintain an intricate network of cylinder profiles and physical keys with varying access levels issued to <br />City employees and the records management associated with this activity. <br />Conducting a competitive bidding process is unlikely to result in the lowest price, given that any potential <br />dealer outside of San Mateo County will present additional costs for travel time to Redwood City. They <br />would also be unable to provide locksmith services, requiring staff to manage two service providers, <br />resulting in extra expenses to coordinate services that Lockworks can provide in a shorter time by <br />performing both services in tandem when responding to service calls. Transitioning to another service <br />provider would also come with a service fee for turnover. <br />The City has negotiated with Lockworks to keep system management pricing for the first year of the <br />proposed agreement unchanged from the pricing initially agreed upon in the 2018 agreement, with a <br />6.K. - Page 2 of 18 <br />199