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HomeMy WebLinkAboutCC RESO 2016-140RESOLUTION NO. 2016 — 140 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO AND THE CITY OF NATIONAL CITY FOR PAYMENT OF THE NEXT GENERATION REGIONAL COMMUNICATION SYSTEM INFRASTRUCTURE COSTS TOTALING $1,270,762.58 WITHOUT INTEREST, WITH TEN ANNUAL PAYMENTS IN THE AMOUNT OF $147,379.98 (INTEREST RATE OF 2.79%). WHEREAS, on March 7, 1995, the County of San Diego and local governments, including National City, entered into an Agreement regarding implementation, governance, cost, and method of funding a regional radio system to provide communication services to public safety and public service agencies operating in San Diego County and Imperial County; and WHEREAS, The County's Regional Communications System (RCS) replaced the participating public service and public safety agencies' existing radio communication systems throughout San Diego and Imperial counties with what was at the time a modern, trunked radio system; and WHEREAS, the County's Regional Communications System (RCS) has helped sustain communications among the region's public safety and public service agencies for emergency and disaster response communications, and is operated by the County Sheriffs Department with financial contributions from RCS parties; and WHEREAS, the 1995 RCS Agreement outlined three basic fiscal components to RCS Party participation and use of the RCS: (1) contribution to the construction of the RCS "backbone", (2) monthly operating charges, and (3) each RCS Party's own equipment and certain infrastructure costs; and WHEREAS, the 1995 RCS Agreement also established a RCS Board of Directors to make recommendations to the County Board of Supervisors, who have the ultimate fiscal and operational control over the RCS; and WHEREAS, on May 5, 2009, (Minute Order No. 2), on recommendation of the RCS Board of Directors, the County Board of Supervisors approved the extension of the RCS Agreement to March 31, 2013; and WHEREAS, on August 7, 2012, (Minute Order No. 1), again on recommendation of the RCS Board of Directors, the County Board of Supervisors approved the extension of the 1995 RCS Agreement to March 31, 2016 in order to allow sufficient time to transition to a new or "next generation" ("NextGen RCS") replacement regional communication system and to develop a new participating agency agreement governing the new system; and WHEREAS, the transition from the existing RCS to the NextGen RCS was to be implemented and facilitated by a NextGen RCS Agreement and would occur over the course of approximately five years; and WHEREAS, the Next Generation Regional Communications System (NextGen RCS) Agreement was approved by the San Diego County Board of Supervisors on December 3, 2013; and stir Resolution No. 2016 — 140 Page Two WHEREAS, the NextGen RCS Agreement establishes participation in the sharing of NextGen RCS Shared Backbone Infrastructure costs and NextGen RCS governance; and WHEREAS, the NextGen RCS will replace, modernize, and update the RCS and shall provide effective and reliable voice radio communications for routine intra- and inter- agency operations as well as inter -agency communications throughout the region during mutual aid and disaster operations; and WHEREAS, the NextGen RCS will include the following subsystems: a new trunked voice system, new microwave backhaul network, and a conventional voice system; and WHEREAS, on February 18, 2014, the City Council approved the NextGen RCS Agreement (Resolution # 2014-20), which estimated the cost for National City to join the NextGen RCS at $1,750,444; and WHEREAS, by approving this Agreement, National City and the other signing Parties authorized the County to amend Exhibit C — Estimated RCS NextGen System Cost to reflect the final system costs, without further approval by the Parties; and WHEREAS, the National City Police, Fire, Public Works, and Engineering Departments depended on the old RCS for mobile and portable radio communication; and WHEREAS, in an effort to reduce National City's costs for the new NextGen RCS, staff evaluated the number of radios that were necessary; and WHEREAS, as a result of this analysis, the City's Public Works/Engineering Department no longer use RCS portable or mobile radios, but rather, cellular phones to communicate; thereby reducing the cost to National City WHEREAS, pursuant to the NextGen RCS Agreement, the County agreed to purchase a NextGen RCS, and the Parties agreed to share the infrastructure costs by reimbursing the County through payment agreements; and WHEREAS, by entering into the NextGen RCS Agreement, all participating Parties authorized the County to amend Exhibit "C" (Estimated RCS NextGen System Cost) to reflect the final system costs in accordance with the cost apportionment method described in Section 11, without further approval by the Parties; and WHEREAS, the County awarded a contract for the NextGen RCS to Motorola Solutions Inc., for a total cost of $70,065,207; and WHEREAS, based on the total Motorola contract amount, the County provided final system costs and updated financing information to all NextGen RCS Parties, with National City's share in the amount of $1,270,762.58; and WHEREAS, on February 2, 2016, the Board of Supervisors authorized the Clerk of the Board to execute payment agreements with the NextGen RCS Parties on behalf of the County; and Resolution No. 2016 — 140 Page Three WHEREAS, all participating RCS agencies, including National City, had a choice to finance the full cost or pay the total in full; and WHEREAS, both funding options were considered during FY 17 budget development; and WHEREAS, the main issue discussed at that time was the projected deficit with planned use of Fund Balance for both FY 17 and FY 18; and WHEREAS, as a result of the discussion, staff budgeted, and the City Council approved, an annual payment; and WHEREAS, staff is recommending City Council finance the amount to preserve National City's current cash; and WHEREAS, if approved by the City Council, beginning on June 1, 2017, and each year thereafter for ten (10) years at an annual interest rate of 2.79%, National City would agree to pay an annual principle and interest payment of $147,379.98; and WHEREAS, the annual payments are separate from the monthly operating fees that will continue through June 30, 2026; and WHEREAS, although National City will be making payments over a 10 year period, the projected life span of the system is 20 years; and WHEREAS, there is no penalty for early pay off should funds become available to do so and/or should the City Council direct staff to do so; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Agreement between the County of San Diego and the City of National City National City for payment of NextGen RCS infrastructure costs over a ten (10) year period at an annual interest rate of 2.79%, costing the City $203,037.22 in interest, with payments in the amount of $147,379.98 beginning June 1, 2017. PASSED and ADOPTED this 6th day of Septemb= +016. °--------------___ Michael R. Dalla, Cj+Cy Clerk on Morrison, Mayor PROVED AST• OI 61434 f, dia Ga. tua S City Atto • Passed and adopted by the Council of the City of National City, California, on September 6, 2016 by the following vote, to -wit: Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California N .47/ City Cl rk of the City f National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2016-140 of the City of National City, California, passed and adopted by the Council of said City on September 6, 2016. City Clerk of the City of National City, California By: Deputy