SR - - PURCHASE OF PUBLIC SAFETY RADIO EQUIPMENT1. SUBJECT
Approve lease for the purchase of equipment related to participation in the 800 Megahertz
Countywide Coordinated Communication System (CCCS) for Public Safety.
2. SUMMARY
Lease Agreement for the City of Orange's Public Safety equipment commitment regarding the
Next Generation Countywide 800 MHz Coordinated Communication System which will be
operational in Fiscal Year 2017 -18.
13. RECOMMENDED ACTION
1. Approve the purchase of Public Safety radio equipment in the amount of $3,500,118.76
from Motorola Solutions, Inc. (Motorola).
2. Approve the attached Lease Agreement with Motorola with quarterly payments of
$119,647.26 for seven years (28 total payments) to finance the purchase.
3. Authorize the appropriation of $420,000 from the Proposition 172 Sales Tax Fund (120)
unreserved fund balance to expenditure account 120.0201.56510.20223.
14. FISCAL IMPACT
The total cost of the 800 MHz CCCS radio equipment over the life of the lease, including
interest, is $3,850,123.32.
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community
a. Provide staffing and resources to deliver services that ensure public safety.
2. Be a fiscally healthy community
d. Effectively manage and develop City assets.
16. GENERAL PLAN IMPLEMENTATION
Public Safety Goal 8.0:
Emphasize emergency preparedness within City Hall and throughout the community.
Policy 8.3: Coordinate emergency response and preparedness planning with other cities and
public agencies in the region.
7 DISCUSSION and BACKGROUND
Since 1996, the Sheriff - Coroner Department has operated and maintained the 800 MHz CCCS
which provides centralized, interoperable voice radio communications for the County and its 34
cities, including all public safety and public service agencies, as well as a number of private,
state, and federal agencies that provide support to the above agencies and/or have relevant
communications requirements. This Countywide system allows all police, fire, public works and
marine safety agencies in Orange County to share a common radio system, yet still provide
agencies their own unique dispatch and tactical channel in addition to seamless inoperability
throughout the County. The original 800 MHz CCCS was estimated to have a useful life through
2015, but on -going maintenance efforts have extended the life of the system to 2018.
To ensure the CCCS continues to operate into the future, the planning for the new system called
the "Next Generation" 800 MHz CCCS began over six years ago. The purpose of the Next
Generation CCCS is to continue to provide the same high -level of interoperable communications
to the Public Safety and Public Works agencies in Orange County for the next 15 years.
On March 10, 2015, the City Council approved an Amendment to the Joint Agreement with the
County of Orange for the continued operation, maintenance and financial management of the 800
MHz CCCS. All 34 Orange County cities also approved the same agreement.
The County has partnered with Motorola to convert to the Next Generation system. The
conversion to the new system includes a systematic plan including replacement of three main
components; the backbone equipment, subscriber equipment and dispatch consoles. The Joint
Agreement requires the financial participation of all 34 cities as well as the County and
participating agencies. The goal is to have all member agencies have the required upgraded radio
equipment in place for the communication system conversion in 2018. New equipment and
system upgrades are necessary and will ensure the interoperable voice radio communication for
all member cities and Orange County for the next 15- years.
ITEM 2 12/13/16
The City of Orange's commitment and costs consist of three components: (1) "partnership cost"
for our portion of the overall backbone system; (2) the replacement of dispatch console at OPD;
and (3) upgrade of the City's public safety radios. The total City of Orange financial
commitment for communication system, is as follows:
1) City's share of the countywide backbone system for $1.4 million utilizing the
Proposition 172 sales tax fund (Prop 172 fund) which is designated for public safety use
(approved by City Council on March 10, 2015);
2) Police Department's dispatch center for $797,080 utilizing the Federal Asset Forfeiture
Fund (approved on September 13, 2016); and,
3) New compatible radio equipment for $3.5 million utilizing the Prop 172 fund, paid over a
seven year period (being considered with this report).
The City Council is being asked to consider the purchase of radios as part of the County's
upgrade of its 800 MHz Radio system. The radio equipment upgrades consist of approximately
533 new radios which includes encrypted radios for fire and police vehicles, as well as handheld
radios, and 100 existing unencrypted radios that only require a software upgrade to be used by
Public Works. The cost to upgrade radios versus purchasing new ones is substantially less, due
to staff efforts to maximize the number of radios that are being upgraded. The total price of the
new radios and upgrades is $3,500,118.76.
Due to the size of the purchase, staff is recommending financing the purchase of the radios
through a lease agreement with Motorola. Title and ownership of the radios would then pass to
the City at the end of the lease. Our recommendation includes a down payment of $500,000 and
quarterly lease payments of $119,647.26 over a seven -year period (28 payments in total). The
interest rate on this lease is 3.11 %. The down payment and lease payments will come from the
Prop 172 fund. After the recommended appropriation of unreserved fund balance of $420,000,
sufficient funding will be available to cover the down payment and first two lease payments.
Based on analysis of the fund over the length of the lease, it is projected that sufficient revenues
will be available to make the lease payments as well as make the final installment on the
countywide system. The total cost for the radio equipment over the seven year lease, with total
interest of $350,004.56, is $3,850,123.32. For the previous countywide radio communication
system, the City financed the backbone and radios in conjunction with the County over a ten -year
period and paid for the financing through the Prop 172 fund.
8. ATTACHMENTS
Motorola Quote 120616OPDFD
Lease Agreement with Motorola
ITEM 3 12/13/16