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Resolution Related to 800 MHz System Partnership Costs <br />May 19, 2015 <br />Page 3 <br />TABLE A <br />Fiscal Year <br />Principal <br />Interest <br />Total (P &I) <br />FY 2015 -16 Partnership Costs <br />227,713 <br />40,569 <br />268,282 <br />FY 2016 -17 Partnership Costs <br />613,451 <br />109,291 <br />722,742 <br />FY 2017 -18 Partnership Costs* <br />0 <br />0 <br />0 <br />Programming and Installation <br />93,790 <br />16,709 <br />110,499 <br />Contingency <br />20,000 <br />3,563 <br />23,563 <br />954,954 <br />1 170,132 <br />1 1,125,086 <br />'Note: -rhe FY 2017 -18 Partnership Costs of $1,412,872 will be funded as part of a separate future <br />financing agreement to minimize long term interest expenses. <br />Proposals related to non - equipment costs were requested from Motorola, Holman and the <br />County of Orange. The County preliminary advised the term of the lease would be for a fixed <br />time period of fifteen years. The time period of the lease would be greater than the useful life of <br />the equipment and would bind the City to higher borrowing costs (interest expense) as result of <br />extending the term farther than the term proposed by Holman. Motorola advised it was unable to <br />provide the City an option to fund non - equipment components of the project. Analysis of <br />Holman's proposal disclosed a flexible and cost - effective option, specifically the first debt service <br />payment would not be due until July 2016 and quarterly payments will become due thereafter. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #1, Community Safety; Objective #2 <br />(Broaden communications, information sharing and community awareness of public safety <br />activities). <br />FISCAL IMPACT <br />Total agreement amount is $1,125,086. Funds for the balance of the lease beginning in fiscal - <br />year 2016 -17 thru fiscal year 2024 -25, in the amount of $125,009.48 (annual payment which <br />represents four quarterly payments totaling $31,252.37 each) will be budgeted on an annual and <br />allocated basis in the following funds and accounts: <br />• Police Department for the amount of $106,362.35 (account no. 01114465- 67200) <br />Planning and Building Agency for the amount of $6,382.58 (account no. 01116500- 67200) <br />55A -3 <br />