55C - RESO - 800 MHZ COMMUNICATION SYS

Home Browse Search

Resolution Related to 800 MHz System Partnership Costs June 6, 2017 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 radios 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 is being 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 are being replaced during 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 - $1,411,978, totaling $2,253,142. The previous agreement with Holman Capital provided the funding necessary to fulfill the City's commitment for the first two years of the 800 MHz backbone upgrade costs (FY 2015-16 and FY 2016-17). Third -year (FY 2017-18) Partnership Costs in the amount of $1,411,978 (gross amount before contract contingency) will be funded as part of this proposed financing agreement. This was done separately in order to minimize long term interest expenses and for the County of Orange to properly determine the final project cost amount allocable to the City of Santa Ana Financing of Project The 800 MHz project consists of equipment and non -equipment items. Equipment related items include base station radios, antennas, software, and servers. 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 Capital, for an amount not to exceed $1,652,015.04 (principal and interest costs) for an eight- year term, for the purpose of financing the costs of the project noted on Table A below. Holman has agreed to delay the first payment until August 13, 2017. Payments for this eight-year agreement will be spread over eight years, $206,501.88 per year ($51,625.47 — quarterly), for a total of $1,652,015.04. 55C-2