HomeMy WebLinkAbout04 COUNTY 800 MHZ 08-04-03AGENDA REPORT
Agenda Item 4
Reviewed: ~
City Manager
Finance Director
MEETING DATE:
AUGUST 4, 2003
TO:
FROM:
SUBJECT:
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
WILLIAM A. HUSTON, CITY MANAGER ~
800 MHZ COST SHARING AGREEMENT
SUMMARY
An amendment to the 1996 800 MHz Communications System agreement is proposed
for allocating costs to maintain the backbone components of the system.
RECOMMENDATION
That 'the City Council approve an amendment to the Joint Agreement for the
Implementation and Operation of the 800 Megahertz (800 MHz) Countywide
Coordinated Communications System. To meet the obligations of the amendment, it is
also recommended that $50,379 be appropriated from the unappropriated General Fund
reserve and $3,040 from the unappropriated Water Fund reserve.
BACKGROUND
In 1996 the City of Tustin ("the City"), County and all other Orange County cities entered
into an agreement to jointly implement a new integrated police, public works and fire
communications system. All jurisdictions paid a proportionate share of the $100 million
system. It is completed and fully operational. The 1996 agreement included a provision
that at a later date the cities and County would negotiate an arrangement for sharing the
cost to maintain the 800 MHz system "backbone." The backbone system includes
components common to all agencies needed to operate the communications system.
This includes microwave equipment, computer systems, a 24-hour per day monitoring
system, etc. The backbone system cost $21 million.
The City has 148 radios in the Police Department and 98 radios in other departments
(Public Works, Water, etc.). These radios and the computer aided dispatch center in
the Police Department can only operate through the Countywide backbone system.
The backbone system also provides the interoperability feature which enables all
jurisdictions to communicate on common radio frequencies.
FISCAL IMPACT:
The City has budgeted $1.5 million in prior fiscal years to cover the cost to purchase
246 radios and the base stations. Based on the formula set forth in the amendment to
the 800 MHz agreement, the City's fiscal year 2003-04 share of backbone system
maintenance will be $53,419. The cost will be allocated to the General Fund and Water
Fund and adjusted in future fiscal years based on the formula contained in the
amendments to the 800 MHz agreement.
DISCUSSION
The 800 MHz Governance Committee (the Tustin City Manager is a member) which
provides oversight of the communications system had decided to delay the issue of
backbone system joint cost sharing until the 800 MHz system was fully implemented.
That allowed all involved jurisdictions to focus on the primary goal of installing the new
system and working through technical problems encountered due to the complexity of
the 800 MHz system. It is a highly complex, state-of-the-art system.
The proposed amendments to the agreement establish a formula for allocating among
jurisdictions the cost to annually operate and maintain the backbone system. The
backbone system is under the jurisdiction of the Orange County Sheriff's Department
Communications Division. The City contracts with the Communications Division to
maintain all City radios and radio dispatch equipment. Having one jurisdiction own,
operate and maintain the backbone system is more cost-effective and ensures security
of a highly sensitive communications system.
AMEND1Vn*.NT
TO
JOINT AGREEMENT
FOR ~
IMPLEMENTATION AND OPERATION
OF
ORANGE COUNTY
800 MEGAlt'ERTZ
COUNTYWIDE COORDINATED COMMUNICATIONS
SYSTEM
DATED JANUARY 30, 1996
WHEREAS, the parties hereto previously entered into that JOINT AGREEMENT FOR THE
IMPLEMENTATION AND OPERATION OF THE ORANGE COUNTY 800 MEGAHERTZ
COUNTYWIDE COORDINATED COMMUNICATIONS SYSTEM dated January 30, 1996
and fully executed April 24, 1996 (hereinafter referred to as "Joint Agreement"); and
WHEREAS, Section 15 of the Joint Agreement which addresses the issue of Cost Sharing for
thc 800M]-Iz Backbone System expenses, provides in material part: "the Governance Committee
shall ~pecify the appropriate costs to be included in this cost sharing an'angement and the
formula on how these costs shall be distributed to the Parties to the Agreement. This distribution
of costs shall be included as an amendment to this agreement after the mutual approval of the
Parties to the Agreement."; and
WHEREAS, the parties to the Joint Agreement have now reached consensus on the
appropriate costs and how these cost shall be distributed to the parties, and intend this document
to be the Amendment to the Joint Agreement in which that consensus is set fo~ch.
NOW, THEREFORE, the parties agree as follows:
.1. Delete Section 15 SYSTEM MODIFICATIONS AND COST SHARING located on
Page 13 of the Joint Agreement, and substitute the following in its place:
"15 SYSTEM MODIFICATIONS AND COST SHARING
15.1 System Modifications
System modifications ~ay be needed' from time-to-time to meet the changing
need~ of Participating Agencies,. System modifications, expansions or
enhancements will not be allowed without technical review by the County and
approval by the Governance COmmittee. System modifications recommended by
County and agreed to by the Governance Committee will then be forwarded to
Governing Authorities for approval, as. appropriate, and implemented by County.
Cost sharing of future System Backbone modifications shall bc determined based
On thc benefit to be derived by individual Participating Agencies.,
Thc cost for any modification intended for the sole use and support of a single
Participating Agency shall bc borne by that Participating Agency.
The cost for any modification intended to improve service for an identifiable
group of Participating Agencies in a local area or Net shall be shared by those
Participating Agencies in a manner agreeable to those Participating Agencies.
The cost-sharing formula for future System modifications involving all
Participating Agencies will be developed by the Governance Committee and
agreed to by the Governing Authorities.
15.2 Co~t Sl~aring Beginning July 1, 2002
A. Effective Date/Percentage Shar~
The Cities and Orange 'County Fire Authority (OCFA) will commence
System Backbone cost sharing payments as of July 1, 2002. The following
table represents the respective aggregate obligations for the cost of the
System Backbone expressed as a percentage of the total cost: ' '
1. FY 02-03
a. County's share of cost 51%
b. Cities'/OCFA's share of cost 49%
2. FY 03-04
a. County's share of cost 45.6%
b. Cities'/OCFA's share of cost 54.4%
3. FY 04-05 and thereafter
a, County's share of cost 40.18%
b. Cities'/OCFA's share of cost 59.82%
The individual obligations for the cost of the System Backbone, as
approved by the Governance Committee, for each of the Cities and OCFA
shall be determined by dividing the number of radios that each of the
Cities and the OCFA, respectively, are operating on the System by the
total number of radios that the Cities and OCFA are collectively operating
on the System. The resulting ratios shall each be multiplied by the
aggregate percentage obligations of the Cities and OCFA for each fiscal
year as set forth above. The resulting products shall be the Cities' and
OCFA's individual pementage obligations for the cost of the System
Backbone in each a~plicable fiscal year.
15.3 Cities/OCFA Payment of FY 02-03 Backbone Costs
15.4
County is authorized to transfer from the County's Site Development
and Infrastructure Fund to the County General Fund, an amount equal
to the Cities' and OCFA's FY 02-03 share of cost for System
Backbone operations. The purpose of this transfer is to finance Cities'
and OCFA's FY 02-03 share of the System Backbone costs and to
allow cities and OCFA to pay said costs over a period of time.
Furthermore, it allows the County to receive said amount'in its General
Fund as was budgeted for FY 02-03.
J~aeh city and OCFA will amortize its share of the FY 02-03 System
Backbone costs, interest free, over a period of 5 years, commencing
July 1, 2003, by paying back to County 20% of its share of the FY 02-
03 System Backbone cost each year thereafter for five years. Each
city and OCFA shall make this payment to County along with its
regular System Backbone cost-sharing expense payment for that
particular fiscal year.
Annual Payment
Commencing July 1, 2003, and continuing each year thereafter, each city
and OCFA will contribute 100% of its allocated share of the System
Backbone costs based on the fon~mla set forth in 15.2.A above. Said
payments shall be made on a quarterly basis in advance within thirty days
of billing.
15.5 New Site Development and Infrastructure Fund
The County will place the approximately $4.1 million currently in the
County's Site Development and Infrastructure Fund, less the amount
County is allowed to deduct from that fund pursuant to 15.3.A. above, into
a separate Site Development and Infrastructure Fund. This fund will be
controlled by the 800 MHz Governance Committee. Each project
financed from this fund will require prior 800 MHz Governance
Committee approval. Each expenditure from the Site Development and
Infrastructure Fund must be utilized for County's share of site
development and/or infrastructure costs. On June 30, 2008, any remaining
balance in the Site Development and Infrastructure Fund shall be
administratively transferred to the County General Fund without further
approval by the 800 MHz Governance Committee, cities or the OCFA.
15.6 Exclusive Backbone System Costs
Unless otherwise authorized by separate agreement or an amendment to
thc Joint A~fr, cnt for thc Implementation and Operation of the 800_-
MHz CCCS (thc "800 MHz CCCS Joint A~reement"), none of the cost
clements covered thereunder shall be included in other service agreements
between thc County of Orange and thc Cities or OCFA.
15,7 No Change to Governance Structure
15.8
15.9
15,10
Thc Govcmancc Committee sUucturc set forth in Section 18 of thc 800
MI-Ix CCCS Joint Agreement, to oversee thc cost of operations, projects
financed from thc Site Development and Infrastructure Fund, and to set
policies regarding usc of thc System, is not changed by this Amcndrncnt.
Ne~w Users of CCCS
New users of the System shall be charged pursuant to thc policy
established by the Govcmance Committee under Section 16 of thc 800
MHz CCCS Joint Agreement.
Budget/Year-End Settlement
A.
The System budget and allocation of expenses will be submitted for
approval to the Governance Committee ninety (90) days in advance of
each fiscal year and communicated to the Cities/OCFA for purposes of
including same in their budgets for the next fiscal year.
As soon as practicable following the end of each fiscal year, a final
accounting shall be performed to determine the actual cost of
backbone system operations, infrastructure and maintenance costs for
that fiscal year. Thereafter, to the extent there have been contributions
made by the county, each city, each participating agency and the
OCFA which exceed the actual cost of operations and maintenance,
the amount of said excess contributions shall be credited to each party
in the same proportion as was used to create the excess. In the event
of a shortfall, each party shall be billed its pro-rata share of the
shortfall, which shall be paid in the first quarter payment for the next
fiscal year following the fiscal year of the shortfall.
800 MHz CCCS Site Revenues
In the event County decides to generate revenues from the commercial,
non-governmental sector by leasing space at the County's radio sites, the
following shall apply:
A. The use of said radio sites shall not interfere with or degrade the
efficiency of the System.
B. The net revenues generated from such use shall be shared among the
parties to this 800 MHz CCCS Joint Agreement in the same proportion
as each party contributed to the maintenance and repair of the radio
site(s) for the fiscal year the revenue is generated, up to the amount of'
each party's contribution, for maintenance and repair of the base radio
site(s) from which the revenue is generated. All additional net
revenues shall go to the County.
15.11 Effective Date
The effective date of this Amendment to the $00 MHz CCCS Joint
Agreement shall be July 1, 2003."
2. All other provisions contained in the 800 MHz CCCS Joint Agreement shall remain
unchanged.
IN WITNESS WHER.EOF, the Parties hereto have set their hands and seals on the date set forth
. opposite their respective signatures on identical counterparts of this Amendment, each which
shall for all purposes be deemed an original thereof.
COUNTY OF OKANGE
Approved As to Fo.,s:
County Counsel
By fK,~-L.c~ ~ Dated:
SIGNED AND CERT1FI£Z ' ": :
THIS IX)C, UME#T I~$ S~ ~-~: .~.**: :$
DARLE~ 3, BLt'~
CITY OF:
A'FTEST:
By:
By:
City Clerk
Dated:
Approved As To Form:
City Attorney