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E. The City of Santa Ana, in conjunction with the other member <br />agencies of the 800 MHz Countywide Coordinated Communication <br />System, has determined that there is a true and real need for the <br />upgrade of the system backbone so that the City of Santa Ana can <br />operate a P25 compliant 800 MHz system and have the capability to <br />monitor and talk with all other agencies in the County should there <br />be a natural disaster, terrorist event, or need for mutual aid. <br />F. The City of Santa Ana's share of the backbone and/or system <br />upgrade and cost for purchase of P25 compliant equipment was <br />estimated by the County of Orange (lead agency for the joint powers <br />agreement) to be $8,055,506.00 over the three year fiscal period for <br />2015-16, 2016-17 and 2017-18. This amount also includes <br />contingencies, document fees and interest. <br />G. Partnership costs, allocated by the total number of radios in each <br />agency's inventory as provided to the County, are distributed to all <br />law enforcement, fire, public works and lifeguard agencies that utilize <br />the 800 MHz system. The 800 MHz radio infrastructure equipment <br />that is at or near its end of life will be replaced with a newer version. <br />Specifically, 565+ Quantar radio base stations countywide will be <br />replaced with new GTR8000 models that comply with the "Next <br />Generation" radio system. The replacement of ancillary equipment <br />at 25 radio sites began in FY 2016-17 and will continue into FY 2017- <br />18. <br />H. The City adopted Resolution 2015-022, authorizing the ten year <br />financing agreement with Holman Capital on May 19, 2015. The <br />terms of the financing agreement with Holman Capital Corporation <br />provided the funding necessary to fulfill the City's commitment for the <br />first two fiscal years of the 800 MHz backbone upgrade costs, along <br />with the programming, installation and contract contingency at an <br />amount not to exceed $1,125,086 (principal and interest costs). <br />The City's costs (Partnership Costs), for participating in the Next <br />Generation systems, for the third year fiscal period is as follows: FY <br />2017-18 - $1,652,015.04. The financing agreement with Holman <br />Capital Corporation will provide the funding necessary to fulfill the <br />City's commitment for the 800 MHz backbone upgrade costs, along <br />with the programming and contract contingency (principal and <br />interest costs). <br />Resolution No. 2017 -XXX <br />Page 2 of 4 <br />55C-6 <br />