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HomeMy WebLinkAbout2017-024 - Eight Year Finance AgreementTB/05/24/17 RESOLUTION NO. 2017-024 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER OR EXECUTIVE DIRECTOR OF FINANCE TO ENTER INTO AN EIGHT YEAR FINANCING AGREEMENT WITH HOLMAN CAPITAL CORPORATION FOR FUNDING OF THE CITY'S PORTION OF ITS PARTNERSHIP COSTS FOR FY 2017-18 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 upgrade of the system backbone so that the City of Santa Ana can operate a P25 compliant 800 MHz system and have the Resolution No. 2017-024 Page 1 of 4 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 three year fiscal period for 2015-16, 2016-17 and 2017-18. This amount also includes contingencies, document fees and interest. 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 enforcement, 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. The replacement of ancillary equipment at 25 radio sites began in FY 2016-17 and will continue into FY 2017-18. H. The City adopted Resolution 2015-022, authorizing the ten year financing agreement with Holman Capital on May 19, 2015. The terms of the financing agreement with Holman Capital Corporation provided the funding necessary to fulfill the City's commitment for the first two fiscal 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). I. The City's costs (Partnership Costs), for participating in the Next Generation systems, for the third year fiscal period is as follows: FY 2017-18 - $1,652,015.04. The financing agreement with Holman Capital Corporation will provide the funding necessary to fulfill the City's commitment for the 800 MHz backbone upgrade costs, along with the programming and contract contingency (principal and interest costs). J. 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 an eight 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 Santa Cruz County Bank, and execute any documents and/or make any assurances that are necessary for the execution of the agreements. Resolution No. 2017-024 Page 2 of 4 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 6th day of June, 2017. APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: j vvp uysu �"' I v ` _- Tamara Bogosian Assistant City Attorney AYES: NOES: ABSTAIN NOT PRESENT Councilmembers Benavides, Martinez, Pulido, Solorio, Tinaiero Villegas (6) Councilmembers None (0) Councilmembers None (0) Councilmembers Sarmiento (1) Resolution No. 2017-024 Page 3 of 4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Resolution No.2017-024 to be the original resolution adopted by the City Council of the City of Santa Ana on June 6, 2017. Date: Maria D. Huizar Clerk of the Council City of Santa Ana Resolution No. 2017-024 Page 4 of 4