HomeMy WebLinkAbout2015-022 -Ten Year Financing Agreement with Holman Capital CorporationLAR/05/19/15
RESOLUTION NO. 2015 -022
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
AUTHORIZING THE CITY MANAGER OR EXECUTIVE DIRECTOR OF
FINANCE TO ENTER INTO A TEN YEAR FINANCING AGREEMENT WITH
HOLMAN CAPITAL CORPORATION FOR FINANCING OF THE CITY'S
PORTION OF THE 800 MHZ COUNTYWIDE COORDINATED
COMMUNICATIONS SYSTEM BACKBONE UPGRADE FOR P25
COMPLIANCE, EXECUTE AN ESCROW AGREEMENT, AND ANY
ASSURANCES AND /OR DOCUMENTS REQUIRED FOR SAID AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. In 1995, a Joint Powers Authority was formed in Orange County to
collectively implement the 800 MHz Countywide Coordinated
Communications System.
B. In November 2001, the City of Santa Ana joined the 800 MHz
Countywide Coordinated Communications System. The system
allows all member agencies in Orange County to transmit on
multiple radio channels simultaneously during routine daily activities
and provides both tactical and dispatch channels; as well as the
ability to monitor and speak with all member agencies in the County
via a County -wide frequency (Red Channel).
C. The member cities' equipment and the system backbone have
reached the end of their useful life. In addition, the FCC is requiring
users to upgrade to a P25 compliant system. As a result, the 800
MHz Countywide Coordinated Communications System is
undergoing a comprehensive upgrade of the system and equipment
to modernize the system and to operate a system which will be P25
compliant.
D. The upgrade of the system and equipment will be completed by the
member agencies, including the City of Santa Ana, by the end of
fiscal year 2018.
E. The City of Santa Ana, in conjunction with the other member
agencies of the 800 MHz Countywide Coordinated Communication
System, has determined that there is a true and real need for the
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upgrade of the system backbone so that the City of Santa Ana can
operate a P25 compliant 800 MHz system and have the capability
to monitor and talk with all other agencies in the County should
there be a natural disaster, terrorist event, or need for mutual aid.
F. The City of Santa Ana's share of the backbone and /or system
upgrade and cost for purchase of P25 compliant equipment was
estimated by the County of Orange (lead agency for the joint
powers agreement) to be $8,055,506.00 over the next three years.
G. 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 will be 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 will be replaced by fiscal year 2016 -17.
H. 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 - $1,412,872, totaling $2,254,036. The financing
agreement with Holman Capital Corporation will provide the funding
necessary to fulfill the City's commitment for the first two years of
the 800 MHz backbone upgrade costs, along with the
programming, installation and contract contingency at an amount
not to exceed $1,125,086 (principal and interest costs).
The City of Santa Ana has determined that the financing agreement
with Holman Capital Corporation for the City's portion or
partnership costs of the 800 MHz Countywide Coordinated
Communication System backbone (i.e. "Next Generation" radio
system) upgrade is in the best interest of the City of Santa Ana.
Section 2. NOW THEREFORE, BE IT RESOLVED AND ORDERED that the
City Council of the City of Santa Ana does hereby authorize the City Manager or
Executive Director of Finance to enter into a ten (10) year financing agreement with
Holman Capital Corporation for the City's portion of the 800 MHz Countywide
Coordinated Communication System backbone system upgrade along with the
programming, installation and contract contingency; enter into an escrow agreement
with Holman Capital Corporation as part of the financing agreement through American
River Bank, and execute any documents and /or make any assurances that are
necessary for the execution of the agreements.
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Section 3. If any surcharge or fee, section, subsection, sentence, clause,
phrase or word of this Resolution is for any reason held to be invalid by a court of
competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Resolution. The City Council hereby declares that it would have passed
and adopted this Resolution, and each and all provisions hereof, irrespective of the fact
that one or more provisions may be declared invalid.
Section 4. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 19th day of May, 2015.
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
Laura A. Rossini
Senior Assistant City Attorney
AYES: Councilmembers: Amezcua, Benavides, Martinez Pulido, Reyna
Sarmiento, Tinaiero (7)
NOES: Councilmembers: None (0)
ABSTAIN:
Councilmembers:
None
(0)
NOT PRESENT:
Councilmembers:
None
(0)
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Resolution No. 2015 -022 to be the original resolution adopted by the City
Council of the City of Santa Ana on May 19, 2015.
Date: 5/
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Clerk the Council
City of Santa Ana