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Resolution 2019-31008 RESOLUTION NO. 2019-31008 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FINAL NEGOTIATED MATERIAL TERMS OF THE AGREEMENT WITH AXON ENTERPRISE, INC., PURSUANT TO RESOLUTION 2019-30884, FOR THE PURCHASE OF OFFICER SAFETY PLAN SUBSCRIPTIONS INCLUDING: BODY-WORN CAMERAS, CONDUCTED ELECTRICAL WEAPONS, A VIDEO EVIDENCE MANAGEMENT AND DISTRIBUTION PLATFORM, INTERVIEW ROOM HARDWARE AND SOFTWARE, AND RELATED PRODUCTS AND SERVICES FROM AXON ENTERPRISE, INC., AS SET FORTH IN EXHIBIT "A" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO FINALIZE THE AGREEMENT WITH AXON ENTERPRISE, INC., INCORPORATING THE TERMS NEGOTIATED HEREIN; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AGREEMENT WITH AXON ENTERPRISE, INC. WHEREAS, the City previously identified Axon Enterprise, Inc., ("Axon") as a manufacturer of point-of-view (body-worn) cameras and provider of a hosted digital evidence storage system with the ability to collect, transfer, manage, retrieve and share the digital evidence captured by the body-worn cameras and other equipment; and WHEREAS, the City of Miami Beach Police Department ("Department"), as part of its normal public safety operations, utilizes body-worn cameras ("BWC") and conducted energy weapons equipment in conducting its routine law enforcement operations; and WHEREAS, the Department has successfully utilized conducted energy weapons for approximately eighteen (18) years; and WHEREAS, the Department successfully utilizes interview room recording hardware and software, cloud data storage and distribution platform, artificial intelligence video redaction tools, on-line and virtual reality training, compliance and auditing tools; and WHEREAS, the Department began a program to evaluate the deployment and use of BWCs to further the City's interest in preventing criminal activities, pursuant to Resolution 2014-28746; and WHEREAS, the City's Code Compliance Department, Parking Department, Building Department, and Fire Department utilize BWCs for their daily business operations; and WHEREAS, the City executed a one-year Agreement that authorized four (4) one-year renewals with Axon (formerly Taser International, Inc.) on September 30, 2014, which will expire on September 29, 2019; and WHEREAS, the City seeks to continue receiving the products and services provided by Axon, which will permit all five (5) City departments to continue utilizing the above- referenced BWC products and services in the furtherance of the City's strategic objectives; and WHEREAS, the Department has conducted market research to identify those products and services capable of integrating BWC, conducted energy weapons, equipment, interview room recording hardware and software, digital evidence management platform, cloud data storage and distribution platform, artificial intelligence video redaction tools, on-line and virtual reality training, compliance and auditing tools; and WHEREAS, the City has determined that Axon's technology, services and equipment will allow the seamless integration of those products and services currently utilized and required for the City's daily operations; and WHEREAS, the City has determined that its public safety needs, multi-department equipment compatibility, and real-time logistics would be best met by standardizing purchases with Axon brand products and services; and WHEREAS, the City Commission previously approved Resolution No. 2019-30884, which accepted the City Manager's recommendation, and approved the negotiation and execution of an agreement with Axon for the purchase of those products and services including: BWCs, conducted energy weapons, a video evidence management and distribution platform, interview room hardware and software, and related equipment and services; and WHEREAS, as directed by the Mayor and City Commission, those terms and conditions agreed upon during negotiations with Axon Enterprise, Inc. were presented to the Mayor and City Commission for consideration at the September 25, 2019 City Commission meeting. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approves the final negotiated material terms of the agreement with Axon Enterprise, Inc., pursuant to Resolution 2019-30884, for the purchase of officer safety plan subscriptions including: body-worn cameras, conducted electrical weapons, a video evidence management and distribution platform, interview room hardware and software, and related products and services from Axon Enterprise, Inc., as set forth in Exhibit "A" to the Commission Memorandum accompanying this Resolution; authorizing the City Manager and City Attorney to finalize the agreement with Axon Enterprise, Inc., incorporating the terms negotiated herein; and further authorizing the City Manager and City Clerk to execute the final negotiated agreement with Axon Enterprise, Inc. PASSED AND ADOPTED this 25th day of September 2019. ATTEST: Dan Gelber, Mayor ?-2S, l a,3 1, Rafael E. Granado, City Cler .ilk 4. VI B APP re DASTO E \�. ..........'Sj � .; F e. • NGUAGE \''.. of • •.0 e XECUTION , '773D/f 5 ORATED)-yr7.1>fi'l:- ...:1'; ...,attorney ate yAr +1-/261 ?, Resolutions - R7 F MAMI BEA H COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 25, 2019 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FINAL NEGOTIATED MATERIAL TERMS OF THE AGREEMENT WITH AXON ENTERPRISE, INC, PURSUANT TO RESOLUTION 2019-30884, FOR THE PURCHASE OF OFFICER SAFETY PLAN SUBSCRIPTIONS INCLUDING: BODY-WORN CAMERAS, CONDUCTED ELECTRICAL WEAPONS, A VIDEO EVIDENCE MANAGEMENT AND DISTRIBUTION PLATFORM, INTERVIEW ROOM HARDWARE AND SOFTWARE, AND RELATED PRODUCTS AND SERVICES FROM AXON ENTERPRISE, INC, AS SET FORTH IN EXHIBIT "A" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO FINALIZE THE AGREEMENT WITH AXON ENTERPRISE, INC., INCORPORATING THE TERMS NEGOTIATED HEREIN; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AGREEMENT WITH AXON ENTERPRISE, INC. RECOMMENDATION I have reviewed the final negotiated terms and pricing. In doing so, I am pleased to report that the Administration has negotiated a total of $1,063,222 in savings from the original proposal submitted by Axon. However, notwithstanding the substantial cost savings negotiated, it is important to note that the proposed systems are important for a number of reasons. Safety The Taser conducted electrical weapon (CEW) provides officers with a non-lethal option to be utilized on offending subjects. CEWs also reduce the risk of potential harm to bystanders through the use of a less-than-lethal option for our officers. The new Taser 7 CEW included in the proposed agreement also provide officers with increased controls and flexibility through Page 640 of 680 ability to be deployed at closer range that prior models. The proposed agreement also provides enhanced training with significantly more scenario-based training that has been proven to be more effective in enhancing effectiveness and safety for all involved. Automation The services provided in the proposed agreement significantly automate major portions of the back-end processing currently required when using body-worn cameras. The automation provided will result in officers being able to get back out on the street quicker, as well as the ability of supervisors to more effectively manage use of the body-worn cameras. Community Engagement The proposed agreement also provides a community engagement tool that allows residents and visitors to easily upload video footage of any situation that can later be processed by police officers. Other Benefits Further synergies have been instituted through the use of Axon Evidence with the use of the Axon Evidence Interview Room solution. This component of the technology allows the subsequent aggregation of investigative interviews to be directly ingested, categorized, and correlated to a specific criminal case whereby allowing a seamless repository of all of the digital evidence as it pertains to each case. There are many other aspects of the subscription service that have been identified by the leadership in the police department that would provide better officer safety, management, and transparency for the officers in the department. Costs On a per officer basis, the cost for the bundle for the CEW, the body-worn camera and the related equipment and services (holsters, storage, etc.) is approximately $173 per month. This represent a savings of approximately 13% off of list price. The research conducted by staff indicates that this is the best cost offered to any other public agency to date. Additionally, Axon has offered significant discounts for the other products and services required for the system. After all discounts, the total cost for the five (5) of the agreement for all city departments (Policy, Code Compliance, Parking, Fire and Building Departments) is $5,310,775. Notwithstanding, negotiated savings, this is a significant investment in the security of our officers and other staff, and in the transparency of city operations costing an estimate of $1,062,155 per year. However, because Fiscal Year 2020 budgets have been finalized, Axon has agreed defer a portion of the payments for years 1 and 2 until years 4 and 5 to allow the City to plan for this investment. Axon is doing this solely at its risk as the agreement contains a non- appropriation clause which allows early termination if funds are not available, as well as a termination for convenience that allows the City to terminate at any time. Based on the foregoing, I recommend that the Mayor and City Commission of the City of Miami Beach, Florida, adopt the Resolution approving the final negotiated material terms of the agreement with Axon Enterprise, Inc, pursuant to Resolution 2019-30884, for the purchase of officer safety plan subscriptions including: body-worn cameras, conducted electrical weapons, a video evidence management and distribution platform, interview room hardware and software, and related products and services from Axon Enterprise, Inc, as set forth in Exhibit "a" to the commission memorandum accompanying this resolution; authorizing the City Manager and City Attorney to finalize the agreement with Axon Enterprise, Inc., incorporating the terms negotiated herein; and further authorizing the City Manager and City Clerk to execute the final negotiated Page 641 of 680 agreement with Axon Enterprise, Inc. ANALYSIS Beginning in April 2014, the Miami Beach Police Department began a pilot program to evaluate the deployment and use of body-worn cameras (see Resolution 2014-28746). Initially, the pilot program involved gradual deployment of body-worn cameras as policy and procedures were developed and training was conducted. Several other City Departments, including Code Compliance, Parking, Building, and Fire, also began to deploy body-worn cameras at the same time. Testing and evaluation of products and vendors done at the time resulted in the selection of Taser International to provide body camera products and services. They were uniquely positioned to provide a capable, reliable, and scalable camera solution as well as cloud-based storage and redaction system. In addition, Evidence.com video storage eliminated the need to expand in-house enterprise data storage, at a significant cost savings to the City. A one-year phased agreement with four (4) one-year renewals was executed. This contract and all renewals have now run to conclusion and will expire on September 30, 2019. In 2017, Taser International was rebranded and is now called Axon Enterprise, Inc., ("Axon"). Their business model has since evolved from basically selling devices to a service-oriented model where they offer comprehensive subscription plans, called Officer Safety Plans, which include body-worn cameras, conducted electrical weapons, docks, replacement cartridges, interview room recording hardware and software, the Evidence.com cloud data storage and distribution platform, artificial intelligence video redaction tools, on-line and virtual reality training, compliance and auditing tools, automatic hardware upgrades, and a comprehensive warranty and return policy. In addition, they offer products and services a la carte for departments that do not need full plans. Furthermore, the conducted electrical weapon (CEW) offered by Axon is the industry standard in that sphere, along with the City's long- standing use of the product over the course of approximately eighteen years (18)years of service. The most important technological development in the body-worn cameras field has been the evolution of the Evidence.com digital evidence management platform. This platform, which started as relatively basic cloud storage, has become a highly-developed ecosystem for uploading, categorizing, sharing, and managing the vast amounts of data generated by the Police Department's now full deployment of cameras. Evidence.com has been continually upgraded and enhanced with innovative tools that allow integrated redaction, categorizing, and automatic purging of records pursuant to records retention guidelines. Thanks to adoption by the Miami- Dade County State Attorney's Office, we are also able to directly share video and other evidence with prosecutors from within the platform, eliminating the need to download large amounts of data to physical media. This level of platform sophistication is unique to Axon and unprecedented in the marketplace. Market research has revealed that there is no single vendor able to provide the integration available in the Axon ecosystem. Although there are products in the market that are able to perform individual tasks as described in the previous paragraphs, it would take great resources, time, effort and coordination to make all of them work together in a seamless manner. Changing from our current provider would require all new equipment to be purchased and significant administrative, infrastructure, and training resources to be expended in each of the five (5) City Departments (Police Fire, Code, Building and Parking) utilizing Axon products. Further, Axon Evidence is the principle platform used by the Miami-Dade State Attorney's Office whereby evidence is directly shared with prosecutors in furtherance of criminal cases. Page 642 of 680 Therefore, on July 17, 2019, the Commission adopted Resolution 2019-30884, approving negotiations with Axon Enterprise, Inc., with the direction that the Administration return to Commission with the negotiated agreement prior for review. The attached term sheet includes the final negotiated material terms and pricing that would constitute the agreement between the City and Axon. Applicable Area Citywide Is this a Resident Right to Does this item utilize G.O. Know item? Bond Funds? Yes No Legislative Tracking Police ATTACHMENTS: Description D Exhibit A-Axon Negotiations Term Sheet Page 643 of 680 City c f Miami Beach ' " e i on Enterprise ' Term of Agreement 5-Year term (no renewal periods);Termination for Convenience:The City may terminate this Agreement,for any or no cause, upon thirty(30)days written notice to Axon. Products and Services See Exhibit A(Products and Services Deliverables) Payment Schedule/Final See Exhibit A(Products and Services Deliverables) Pricing Negotiated Savings $1,063,222.10(All Departments) Warranty and Hardware Limited Warranty.Axon warrants its law enforcement hardware is Replacement Program free from defects in workmanship and materials for 1 year from the date of Agency's receipt,except for Signal Sidearm,which Axon warrants for 30 months from the date of Agency's receipt.Axon warrants its accessories for 90-days from date of Agency's receipt. Expended conducted energy weapon ("CEW") cartridges are deemed to have operated properly. Extended warranties run from expiration of the 1-year hardware limited warranty through the extended warranty term. Non-Axon manufactured products are not covered by Axon's warranty.Agency should contact the manufacturer for support of non-Axon manufactured products. Service Level Agreement This Service Level Agreement (SLA) is a policy governing the use of the (Evidence.Com) Evidence.comTM Service Offerings(Service Offerings) under the MSPA. 1. Definitions. "Downtime" are periods of time, measured in minutes, in which the Service Offering is Unavailable to the Agency.Downtime does not include Scheduled Downtime and does not include Unavailability of the Service Offering due to limitations described in Exclusions. "Incident" a period of time in which the Agency experiences Downtime. "Maximum Available Minutes"is the total accumulated minutes during a Service Month for the Service Offering. "Monthly Uptime Percentage" is (Maximum Available Minutes - Downtime) / Maximum Available Minutes* 100. "Scheduled Downtime" are periods of time, measured in minutes, in which the Service Offering is unavailable to the Agency and in which the period of time falls within scheduled routine maintenance or planned maintenance timeframes. "Service Month" is a calendar month at Coordinated Universal Time (UTC). "Unavailable" and "Unavailability" is when the Service Offering does not allow for the upload of evidence files,viewing of evidence files or interactive login by an end-user. Page 644 of 680 2. 2 Service Level Objective.Axon will use commercially reasonable efforts to make the Service Offerings available 99.99%of the time. 3. 3 Guaranteed Service Level and Credits.If Axon fails to make the Service Offering available to the defined Monthly Uptime Percentage availability levels,the Agency may be entitled to Service Credits.Service Credits are awarded as days of Service Offering usage added to the end of the Service Offerings subscription term at no charge to the Agency. Monthly Uptime Percentage Service Credit in Days Less than 99.9% 3 Less than 99.0% 7 4. 4 Requesting Service Credits. In order for Axon to consider a claim for Service Credits, the Agency must submit the claim to Axon's customer support, including all information necessary for Axon to validate the claim, including but not limited to: (i) a detailed description of the Incident;(ii)information regarding the time and duration of the Incident; (iii)the number and location(s) of affected users (if applicable); and (iv) descriptions of your attempts to resolve the Incident at the time of occurrence. 4.1 Axon must receive the claim within one month of the end of the month in which the Incident that is the subject of the claim occurred. For example, if the Incident occurred on February 12th,Axon must receive the claim and all required information by March 31st. 4.2 Axon will evaluate all information reasonably available to Axon and make a good faith determination of whether a Service Credit is owed. Axon will use commercially reasonable efforts to process claims during the subsequent month and within forty five(45)days of receipt.The Agency must be in compliance with all Axon agreements in order to be eligible for a Service Credit. If Axon determines that a Service Credit is owed to the Agency, Axon will apply the Service Credit to the end of the Agency's Service Offering subscription term. Service Credits may not be exchanged for or converted to monetary amounts. 5. 5 Service Maintenance.Maintenance will take place according to Axon's prevailing Maintenance Schedule, which may be found at: https://www.axon.com/trust/maintenance. Maintenance periods may periodically result in the Service Offerings being Unavailable to the Agency. Downtime falling within Scheduled Routine or Planned maintenance is Scheduled Downtime and is not eligible for Service Credits Emergency maintenance may have less than a 24-hour notification period. Emergency maintenance may be performed at any time, with or without notice as deemed necessary by Axon.Emergency maintenance falling outside Scheduled Routine or Planned maintenance is eligible for Service Credits 6. 6 Exclusions. The Service Commitment does not apply to any unavailability,suspension or termination of the Service Offerings, or any Page 645 of 680 other Evidence.com performance issues:(a)caused by factors outside of Axon's reasonable control,including any force majeure event,terrorism, sabotage, virus attacks, or Internet access or related problems beyond the demarcation point of the Service Offerings (including Domain Name Server issues outside Axon's direct control); (b) that result from any actions or inactions of the Agency or any third party; (c)that result from the Agency's communication delays, including wrong, bad or missing data, improperly formatted, organized or transmitted data received, or any other data issues related to the communication or data received from or through the Agency; (d) that result from Agency equipment, software or other technology and/or third party equipment,software or other technology(other than third party equipment within Axon's direct control); (e)that result from any maintenance as provided for pursuant to this SLA; or (f) arising from Axon's suspension and termination of Agency's right to use the Service Offerings in accordance with this Agreement. Page 646 of 680 Exhibit A: Products and Services Deliverables _..... _... Parking Piro Police Officers Police Non-laser Code Compliance Budding OSP 7t Bundle Police OSP 7+Bundle Police Unlimited•Software Unlimited•Software New to Police Only Poke Only Police Code Compliance(48),Code Compliance(48), Fire Department(15), Fire Department(15), Department De n[Yen Department Yea'O-5 Department Year I Department Years 2-5 Parking(54)Year 1 Parking(54)Years 2-5 Budding(43)Year l Building(43)Year 2.5 (398) (398) 'ii Hardware Taser7 Handle Upgrade Yes No No No No No No No Taser7 Holster Upgrade Yes Na No No No NO No No Straining cartridges per Yes Yes Yes No No No No No No year/handle Duty Cartridges Yes Yes As Needed No No Inert Training Cartridges Yes Yes No No No No No No No BatteryPer handleie20% Yes Yes NA No No No No No No spares) Handle Spares Yes net NA No No No No No No Taser7Dock(1 per 100 Yes Yes NA No No No No No No Handles) Oculus Go Yes Yes NA No No NO No No No Halt Suit Yes Yes NA No No No No No No Target Yes Yes NA No No No No No No Body Worn Camera Upgrade Yes 2.5 Yrs,5 Yrs Yes MEI= 11211 ® Yen No Axon Dock(Cameras) Upgrade Yes 2.5 Yrs,5Yrs Yes Yes Yes 2.5 Yrs,5 Yrs Yes No Camera Mounts(2 per Upgrade Yes 2.5 Yrs,5 Yrs Yes Yes Yes 2.5 Yrs,5 Yrs a i No mea) Axon Signal Sidearm Yes Yes 2.5 Yrs No No No No No No Unlimited Storage No Yes Yes Yen =WM= 1:12= Pf!I No No Ala Crt Axon Storage NA NA NA NA NA NA NA -®, Taser 75 year warranty Yes Yes Yes No No No No No No Online Officer Training Yes Yes Yes No No No No No No Instructor Training(4 Instructor,1 Master Yes Yes Yes No No No No No No Instructor) Virtual Training Yes Yes Yes No NO No No No No 40 GB Per User?Party i..s yes Yes Yes Yes Yes Yes No No Storage Pro License Per User .. Yes Yes Yes Yes Yes Yes ®® Technology Assurance Plan Yes Yes Yes Yes Yes Yes No No ' (Camera) Technology Assurance Plan Yes Yes Yes Yes Yes Yes No No (Docks) Axon Aware Yes Yes Yes Yes Yes No NO No No Axon Aware+ Yes Yes Yes Yes Yes No No No NO Axon Auto Tagging Yes Yes Yes Yes Yes No No No No Axon Performance Yes Yes Yes Yes Yes No No No No Axon Redaction Assistant Yes Yes Yes Yes Yes No No No No Axon Citizen forYeS Yes Yes Yes Yes No No No No Communities "^E, 93 Yes Yes Yes NA NA No No No No Yes Yes NA NA No No No NO Interview Room Touch Upgrade Yes No No No No No No Panels Interview Room Touch yes Yes Yes NA NA No No No No Panels Warranty Awn Ate.Pilots Licenses Yes Yes Yes NA NA No No No No Internal Affairs Yes Yes NA NA NO No. No No Evideice:corn Pro Licenses(8) No Yes Yes NA NA No No No No Ord Body Camera(8) Yes Yes Years 2.5 and 5 NA NA No No No No Dock ll) Yes Yes Years 2.5 ands NA NA No No No No 30 G8 Storage/User Yes Yes NA NA No No No No Technology Assurance Plan yes Yes Yes NA NA No No No No (Camera)(8) Technology Assurance Plan yes Yes Yes NA NA No No No No (Docks)))) Awn Accelerate Passes(U. for use among Yes Yes Yes Yes Yes I Yes Yes Yes Yes ,depatiynents! 0ts Poke te.3 CadtF,.vi%..<a..,. .a:il„ .... Year 1 $ 436,254 16 S 48,699.70 $ 44,999.54 $ 10,839.00 $ 19,999.75 Year 2 $ 623,975.88 S 56,568.86 $ 71,736.48 $ 10,839.00 $ 32,930.69 Year 3 $ 869,454.32 $ 56,568.86 $ 71,736.48 $ 10,839.00 5 32,930.69 Year 4 $ 1,088,394.12 $ 56,568.86 $ 71,736.48 $ 10,839.00 $ 32,930.69 Year 5 $1,479,858.96 $ 56,568.86 $ 71,736.48 $ 10,839.00 $ 32,930.69 Total 5 Years $4,497,937.44 $ 274,975.14 $ 331,945=46 $ 54,195.00 $ 151,722.51 Citywide Grand Total $5,310.775.55 Page 647 of 680