TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Eddie Covarrubias, Community Services Director
DATE: May 29, 2026
SUBJECT: APPROVAL OF SERVICE AGREEMENT WITH LYNGSOE
SYSTEMS
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
Inviting and Relevant City Facilities
BACKGROUND
The Library has utilized a Radio Frequency Identification (RFID) system since 2018. This system allows staff to check books in and out at a much quicker rate, allows patrons to use the self-checkout machine which reduces patrons’ wait time while freeing up staff time to complete other duties, shortens the time it takes staff to locate and organize the collection within the stacks, and increases door security with gates that transmit an instant alert and identification of items that have not been checked out.
In April 2017, staff issued a Request for Proposals (RFP) to procure a RFID system. In October 2017, the City Council awarded the contract for the RFID system to MK Solutions. The equipment was installed in Summer 2018. The City has continued to work with MK Solutions ever since.
DISCUSSION
In January 2026, staff were informed that Lyngsoe Systems had acquired all of the MK Solutions assets, including service agreements and employees. In February 2026, staff were provided a copy of the draft service agreement for calendar year 2026 with Lyngsoe Systems.
Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
Staff recommends moving forward with Lyngsoe for one main reason: libraries generally do not switch vendors because such a switch would require the need to purchase new equipment as not all software are compatible with the RFID pads, self-checkout machines, etc. New equipment is costly; when the project was awarded at the City Council meeting in October 2017, the total estimated cost was $55,000.
Additionally, staff were informed by the vendor that the useful life of the equipment is 10+ years. Given that the equipment was installed in Summer 2018, the equipment has at least two (2) additional years of expected useful life.
As such, staff recommend that the City Council approve the Service Agreement with Lyngsoe Systems for a term not to exceed two (2) years through December 31, 2027.
FISCAL IMPACT & PROCUREMENT REVIEW
The ongoing annual costs for the software and hardware are around $4,000 a year. The costs for calendar year 2026 were included in the FY 2025-26 budget. The costs for calendar year 2027 are included in the draft FY 2026- 27 budget.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve the Service Agreement with Lyngsoe Systems for a term not to exceed two (2) years. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Service Agreement with Lyngsoe Systems for a term not to exceed two (2) years through December 31, 2027, and authorize the City Manager to execute said agreement.”
ATTACHMENTS
1. Service Agreement with Lyngsoe Systems