55A - RESO - 800 MHZ SYS - Laserfiche WebLink

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Resolution Related to 800 MHz System Partnership Costs May 19, 2015 Page 2 On May 5, 2015, the City Council approved an agreement amendment with the County of Orange for the operation, maintenance and financial management of the 800 MHz system, renewing our commitment to the system. In addition, Council approved a lease- purchase agreement with Motorola to fund necessary radio equipment upgrades. Partnership Costs Partnership costs, allocated by the total number of radio's in each agency's inventory as provided to the County, are distributed to all law, fire, public works and lifeguard agencies that utilize the 800 MHz system. The 800 MHz radio infrastructure equipment that is at or near its end of life will be replaced with a newer version. Specifically, 565+ Quantar radio base stations countywide will be replaced with new GTR8000 models that comply with the "Next Generation" radio system. In addition, ancillary equipment at 25 radio sites will be replaced by fiscal year 2016 -17. The City's costs (Partnership Costs), for participating in the Next Generation systems, payable over the following three fiscal years are as follows: FY 2015 -16 - $227,713; FY 2016 -17 - $613,451; and FY 2017 -18 - $1,412,872, totaling $2,254,036. The proposed agreement with Holman Capital will provide the funding necessary to fulfill the City's commitment for the first two years of the 800 MHz backbone upgrade costs. Third -year (FY 2017 -18) Partnership Costs in the amount of $1,412,872 will be funded as part of a future financing agreement in order to minimize long term interest expenses. Financing of Proiect The 800 MHz project consists of equipment and non - equipment items. Equipment related items include Console and Portable Radio equipment along with Hot Red Radio's. These items were funded by a Motorola lease- purchase agreement approved by the City Council on May 5, 2015. Non - equipment items consist of system backbone Partnership Share costs, installation and programing for the above - referenced equipment. Recommendation is made for the City to enter into a finance agreement with Holman, for an amount not to exceed $1,125,086 (principal and interest costs) and a ten year term, for the purpose of financing the non - equipment costs of the project noted on Table A below. Holman has agreed to delay the first payment until July 1, 2016. Payments for this ten year agreement will be spread over nine years, $125,009.48 per year, for a total of $1,125,086. 55A -2