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a. Authorize the transfer of $4,410,000 from Capital Projects Fund 402 Appropriation Unit RMA014 to the NGEN Project Fund 405 Appropriation Unit EME002 in order to purchase end user radio equipment for County general fund departments; and
b. Authorize the Auditor / Controller to increase revenue and appropriations in NGEN Project Fund 405 Appropriation Unit EME002 by $4,608,973.
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RECOMMENDATION:
It is recommended that the Board of Supervisors' Budget Committee:
a. Authorize the transfer of $4,410,000 from Capital Projects Fund 402 Appropriation Unit RMA014 to the NGEN Project Fund 405 Appropriation Unit EME002 in order to purchase end user radio equipment for County general fund departments; and
b. Authorize the Auditor / Controller to increase revenue and appropriations in NGEN Project Fund 405 Appropriation Unit EME002 by $4,608,973.
SUMMARY/ DISCUSSION:
Since 2005, the County has been working with public safety and other affected agencies in the County to prepare to meet a mandate of the Federal Communications Commission (FCC) that requires radio system users to convert from "wideband" operation to narrowband mode or find other communications solutions. After an extensive evaluation process followed by negotiations with Harris Corporation, the highest scoring proposer, the Board of Supervisors approved a Radio System Purchase Agreement with Harris Corporation on December 7, 2010.
In order to receive discounts totaling $4,500,000, the Radio System Purchase Agreement with Harris included a commitment from the County to purchase user radios with a total cost of at least $7,210,000. At the time of approval of the Radio System Purchase Agreement, the Board approved Amendment #1 and Amendment #2 to the NGEN Financing Agreement which committed the City of Salinas and the City of Monterey to purchase at least $2,800,000 in radios to meet this minimum commitment with the County responsible for the remaining commitment of $4,410,000. Purchase or upgrade of radios is required as most radios currently in operation in the County are not capable of communicating on the NGEN digital trunked Radio System.
On October 11, 2011; the Board of Supervisors approved the funding of these end user equipment costs from the Capital Projects fund 402.
OTHER AGENCY INVOLVEMENT:
The project team has worked closely with the Capital Projects Executive Advisory Committee as well as the County Administrative Office - Budget and Analysis Division to develop the recommendation to use Capital Project Funds to purchase end user equipment required to meet the contractual commitment. These funds will be used to purchase or upgrade mobile and portable radios for general fund departments including Sheriff, Probation, Parks, District Attorney, and Health / Animal Control. Radios required for non-general fund departments will be purchased by those departments using funds available and will count towards the contractual commitment. The project team is continuing to work closely with these affected departments to ensure that an appropriate number of radios are purchased, that funds are available to program and install radios, and that the contract commitment is met.
The project team has also worked with the Auditor Controller to develop a SubFund within the NGEN Project Fund so that these funds designed for equipment for County departments are not comingled with funds to be used for the infrastructure that benefits the County and all participating agencies.
FINANCING:
To facilitate the purchase of end user equipment, the Department of Emergency Communications (ECD) requests that the Board of Supervisors approve the transfer of $4,410,000 in the Capital Projects Fund 402 that have been set aside for NGEN End User Equipment to the NGEN Project Fund and specifically to the sub fund created for the purchase of end user equipment. In addition, ECD requests that the Auditor Controller be authorized to increase revenue and appropriations in the NGEN Project Fund (Fund 405 Appropriation Unit EME002) by $4,608,973. This amount includes the $4,410,000 set aside in the Capital Projects Fund as well as $198,973 in County funds available from a prior project phase. The funds from a prior project phase have been transferred to the NGEN Project Fund but will be moved to the designated SubFund before equipment is purchased so that funds designated for County end user equipment are separated from the funds designated for project infrastructure that benefits all NGEN Participating Agencies. This item was presented to the Board of Supervisors Budget Committee on April 9, 2012 and the Budget Committee supports this recommendation.
Timing is of the essence in making these fund transfers as the infrastructure discount in the Radio System Purchase Agreement requires that the purchase minimum is met before June 30, 2012.
DeAnna Hilbrants Lynn Diebold
Administrative Manager Director
Emergency Communications Emergency Communications
831-769-8883 831-769-8880
Date 4/9/12 Date 4/9/12
Attachments:
120501BoardReportAttachment1NGENProjectActivities.doc
Amendment#1and#2toNGENFundingMOU.pdf
NGENFundingMOUSigned.pdf