HomeMy WebLinkAbout13 - BA-005 - 800 MHz Countywide Coordinated Communications SystemCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 13
August 12, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Fire Department
Tim Riley, Fire Chief, 644 -3101, triley @city.newport- beach.ca.us
SUBJECT: 800 MHz Countywide Coordinated Communications System
Cost Sharing Agreement
STATEMENT OF ISSUE:
During the past few months, the County of Orange, the 34 independent cities, and the
Orange County Fire Authority, have reached agreement on a backbone cost - sharing
proposal. The deal points of this agreement were approved by the 800 MHz Governance
Committee on April 24, the Orange County City Managers' Association on May 7, and the
Board of Supervisors on May 13. An amendment to the 800 MHz CCCS Joint Agreement
was recently negotiated by the City Managers' representatives and legal counsel, with
Board of Supervisors' approval authorized on June 24, 2003. This amendment is now
being presented to the 34 City Councils and the Orange County Fire Authority for
ratification.
RECOMMENDATION:
Approve the terms of the Amendment to the Joint Agreement for the Implementation and
Operation of the Orange County 800 MHz Countywide Coordinated Communications
System and authorize the Mayor and City Clerk to execute two copies of the Joint
Agreement Amendment for processing through the County Clerk of the Board.
Approve attached Budget Amendment transferring $140,496.00 from General Fund
Reserves into designated expenditure accounts in the Fire, Police and Public Works
Departments.
DISCUSSION:
In early 1996, the City of Newport Beach, as well as 30 other cities, the Orange County Fire
Authority (OCFA), and the County of Orange, executed the 800 MHz Joint Agreement for
the Implementation and Operation of the Orange County 800 MHz Countywide Coordinated
Communications System (CCCS). Section 15 of this Agreement called for the County,
Cities, and the Orange County Fire Authority to share in the cost of 800 MHz Backbone
System expenses effective January 1, 2000. It stated that prior to January 1, 1999, the
Governance Committee would specify the appropriate costs to be included in this cost -
sharing arrangement and the formula on how these costs would be distributed to the parties
to the Agreement. The implementation of backbone cost - sharing was delayed due to the
delay in the 800 MHz system implementation and the time needed to reach a resolution on
backbone cost - sharing negotiations. Agreement has now been reached on what costs are
to be included in this cost - sharing arrangement and how the costs are to be allocated based
on radio counts. The County will be absorbing an increased portion of these expenditures
as negotiated between the County and the Cities.
The implementation of the 800 MHz CCCS has provided enhanced capabilities to the public
safety and public works communities as well as significant interoperability. It is, however a
very complex system. With its implementation, the system has increased from 50 to 500
base stations, 3 computers to 33 computers, 10 radio sites to 24 radio sites, 8 -hour system
watch to 24 -hour system watch, and a tripling of microwave equipment. Considering the
magnitude of the total investment (the backbone radio system equipment currently totals
$21 million), the County, 34 cities, and the OCFA are being asked to jointly support the cost
of backbone operations. This support assures that this highly - complex, state -of- the -art
system is seamlessly maintained and technically supported.
Basic Elements of the Cost Sharing-Agreement
The attached amendment to the Joint Agreement outlines the policies for System
Modifications and Cost Sharing. In general, the key points are:
Beginning July 1, 2002, the cities and the OCFA will commence System Backbone
cost sharing payments. The costs will be allocated as:
1) FY 02 -03
a. County Share of Cost 51%
b. Cities' /OCFA Share of Cost49%
2) FY 03 -04
a. County Share of Cost 45.6%
b. Cities' /OCFA Share of Cost 54.4%
3) FY 04 -05 and thereafter
a. County Share of Cost 40.18%
b. Cities' /OCFA Share of Cost 59.82%
Said payments will be made quarterly.
• 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' /OCFA
FY 02 -03 share of the system backbone shared costs. Cities /OCFA will repay the
Development and Infrastructure Fund in five equal, annual payments without
incurring interest charges.
Following the close of a Fiscal Year, the Governance Committee will be presented
with a year -end report of the actual backbone operational costs. To the extent that
payments have been made that exceed actual costs, the County will refund said
amount to the Cities /OCFA in the same proportion that was used to create the
excess. In the event of a shortfall, each party shall be billed its pro -rata share as part
of the first quarter of the new fiscal year.
A few miscellaneous administrative provisions.
Funding Status /Funding Source:
The City has anticipated this cost sharing burden since the negotiations began in earnest
earlier this year. However, staff elected to refrain from establishing a budgeted amount until
after the negotiations were concluded and the Orange County City Manager's Association
endorsed the final language; thus providing an accurate and reliable dollar amount to work
with.
The City is required to contribute a proportionate amount of the Cities /OCFA share based
upon the number of radios used by the Cities /OCFA in the system. The County has
provided a spreadsheet that reflects the number of mobile and portable radios and control
stations operating on the 800 MHz CCCS by City department. This data was pulled from the
County's computerized database as each unit must have an identification number in order
to operate on the system. These inventories were then forwarded to each Police Chief, Fire
Chief and the OCFA for verification. The backbone cost - sharing obligation was then
calculated based on the verified radio counts and the cost allocation formulas reflected in
the deal points and now in the proposed Joint Agreement Amendment. The payments
beginning in FY 2003/2004 will include repayment of the FY 2002/2003 obligation over a
five -year period with no interest.
For the City of Newport Beach, the backbone cost - sharing expense for FY 2002/2003 totals
$140,496.00, with a breakdown as follows:
equals FY03 /04 Costs plus 20% of 02/03 Costs
Environmental Status:
Not applicable.
Backbone Costs
Payment*
# of
Radios
% of Total
FY 02 -03
$$ FY 03 -04
FY 03/04
TOTALS
647
100%
$
76,077
$ 125,281
$
140,496
Police
315
48.69%
$
37,039
$ 60,995
$
68,402
Fire /Lifeguards
150
23.18%
$
17,638
$ 29,045
$
32,573
Public Works
182
28.13%
$
21,400
$ 35,241
$
39,521
equals FY03 /04 Costs plus 20% of 02/03 Costs
Environmental Status:
Not applicable.
Attachments:
Attachment A: Amendment to Joint Agreement for the Implementation and Operation of the
Orange County 800 MHz Countywide Coordinated Communications System dated January
30, 1996.
Attachment B: 800 MHz Cost Allocation spreadsheet reflecting equipment counts and
backbone system costs by Agency.
Attachment C: Budget Amendment
Prepared and Submitted by
ATTACHMENT A
AMENDMENT
TO
JOINT AGREEMENT
FOR THE
IMPLEMENTATION AND OPERATION
OF THE
ORANGE COUNTY
800 MEGAHERTZ
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
the 800MHz Backbone System expenses, provides in material part: "the Governance Committee
shall specify the appropriate costs to be included in this cost sharing arrangement 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 forth.
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 may be needed from time -to -time to meet the changing
needs 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 be determined based
on the benefit to be derived by individual Participating Agencies.
The cost for any modification intended for the sole use and support of a single
Participating Agency shall be 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 Cost Sharing Beginning July 1, 2002
A. Effective Date/Percentage Share
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 percentage obligations for the cost of the System
Backbone in each applicable fiscal year.
15.3 Cities /OCFA Payment of FY 02 -03 Backbone Costs
A. County is authorized to transfer from the County's Site Development
and hifiastructure 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.
B. Each 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.
15.4 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 formula 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 Infrastucture 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
the Joint Agreement for the Implementation and Operation of the 800_
MHz CCCS (the "800 MHz CCCS Joint Agreement', none of the cost
elements covered thereunder shall be included in other service agreements
between the County of Orange and the Cities or OCFA.
15.7 No Change to Governance Structure
The Governance Committee structure set forth in Section 18 of the 800
MHz CCCS Joint Agreement, to oversee the cost of operations, projects
financed from the Site Development and Infrastructure Fund, and to set
policies regarding use of the System, is not changed by this Amendment.
15.8 New Users of CCCS
New users of the System shall be charged pursuant to the policy
established by the Governance Committee under Section 16 of the 800
MHz CCCS Joint Agreement.
15.9 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:
B. 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.
15.10 800 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 800 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 WiIEREOF, 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 ORANGE
Approved As to Form:
County Counsel
By
SIGNED AND
THIS WEC"
Dated: (a —,2q' a-5
Dated: G'Za e�3
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CITY OF NEWPORT BEACH
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Steven Bromberg, Mayor
LaVonne Harkless, City Clerk
APPROVED AS TO FORM:
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Robert H. Burnham, City Attorney
Dated:
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City of Newport Beach
BUDGET AMENDMENT
2003 -04
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from unappropriated fund balance
EXPLANATION:
NO. BA- 005
AMOUNT: $1ao,4s6.00
Increase in Budgetary Fund Balance
AND X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations for the City's share of the 800MHz Countywide Coordinated Communications
AL;L;UUN I INU tNTRY:
BUDGETARY FUND BALANCE
Fund Account
010 3605
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIAT IONS (3603)
Description
General Fund Fund Balance
Description
• ' • ce
Signed:
Signed:
Administrative
Approval::
City Council Approval: City Clerk
Director
Amount
Debit Credit
$140,496.00 `
Automatic
$68,402.00
$32,573.00
$39,521.00
,7-2c? -< ,?
Date
Date
Description
Division
Number
1820
Police -Support Services
Account
Number
8080
Services - Professional & Technical
Division
Number
2320
Fire - Operations
Account
Number
8080
Services - Professional & Technical
Division
Number
5050
Public Works - Administration
Account
Number
8080
Services - Professional & Technical
Division
Number
Account
Number
• ' • ce
Signed:
Signed:
Administrative
Approval::
City Council Approval: City Clerk
Director
Amount
Debit Credit
$140,496.00 `
Automatic
$68,402.00
$32,573.00
$39,521.00
,7-2c? -< ,?
Date
Date