HomeMy WebLinkAboutOctober 26, 1993• r.
A G E N D A
ARCADIA CITY COUNCIL
OCTOBER 26, 1993
5:30 P.M.
ROLL CALL: Council Members Fasching, Harbicht, Lojeski,
Margett and Ciraulo
ORAL
1. Discussion and direction regarding letter from Santa
Anita Race Track
2. Information regarding lease- purchase of communication
consoles
3. Discussion of Public Information Plan
ADJOURN to 7:00 p.m., November 2, 1993
err+ *00f 9 Vemolkandum
Daft ___..October.26, 1993_
TO. Mayor and City Council
FROM: Gerald R. Gardner, Fire Chief
SUBJFCT: Recommendation for Lease or Purchase of 9 -1 -1
Communications' Consoles in FY 93 -94.
Background
The Fire Department Communications Center is scheduled to
replace the 9 -1 -1 dispatch consoles and related electronic
equipment in the 1994 -95 Capital Improvement Program.
Funding in the amount of $282,150 has been programmed for
this project in the Equipment Replacement Fund; which
includes replacement of all outdated components, modules,
speakers, alarms, -recorders and related electronic
equipment. This is original equipment installed when the
9 -1 -1 center was constructed in 1983. Repair parts are no
longer available for the existing equipment and the
consoles need to be replaced to minimize failure and
accommodate current needs.
In early 1994, the State of California will be providing
and installing new 9 -1 -1 telephones and all new computer
swi tching gear in the consoles. in addition the city's
computer aided dispatch equipment is also scheduled for
installation in early 1994. Immediately thereafter in July
of 1994 the existing 9 -1 -1 consoles are scheduled for
replacement. If this schedule is followed the new
telephones and CAD Equipment will then require removal from
the old consoles and reinstalled into the new consoles at
city expense.
in an effort to minimize disruption of service within the
9 -1 -1 center as well as eliminate redundant effort, it is
vital that all three projects be coordinated. Staff has
worked with Pacific Telephone Company, the CAD System
Contractor and Motorola Incorporated in an effort to
coordinate all installations as part of the 9 -1 -1 console
replacement project.
Recommendation
To facilitate this request, it is recommended that the
9 -1 -1 Consoles scheduled for FY 94 -95 be moved up
approximately six (6) months to FY 93 -94 in an effort to
coordinate all work into a manageable program; which will
minimize disruption within the 9 -1 -1 Center.
LASER IMAGED
Page 2
October 26, 1993
RE: 9 -1 -1 Communications' Consoles
M
To facilitate procurement of the consoles, Motorola Inc has
proposed either an outright purchase on the County Contract
or a lease /purchase agreement with the Motorola Corperation
carrying the lease.
Advantages of Lease /Purchase
1. In the event that Council does not wish to move the
funding up to conserve capital. A lease /purchase
agreement will enable the 9 -1 -1 Consoles to be
procured in FY 93 -94 with the first lease payment
deferred to FY 94 -95.
2. With the exception of dictaphone recording
equipment, current motorola pricing will be protected
in the event the county contract increases.
3. Lease purchase may actually provide a cost savings due
to the interest paid compared to interest earned on
capital funds.
4. Most importantly, installation of the new consoles can
be coordinated with the CAD System and New 9 -1 -1
telephone equipment to minimize disruption within the
Emergency Communications Center; as well as minimize
the impact on service to the community.
Disadvantages of Lease /Purchase
1. Although Motorola is quoting county contract pricing,
the Lease agreement is negotiated and the bidding
process would be waived.
2. The dictaphone recording equipment is not provided by
Motorola and will require procurement with payment
upon delivery ($29,866.49).
3. A cost savings may or may not materialize depending on
actual interest earned over the three to five year
lease period compared to interest charged.
Council Direction
It is staffs recommendation to procure the 9 -1 -1 Consoles
and recording equipment as soon as possible in an effort to
coordinate installation with the CAD System and new
telephone equipment. This can be accomplished by one of
two methods.
M
Page 3
October 26, 1993
RE: 9 -1 -1 Communications' Consoles
E5
1. Move the 9 -1 -1 Communications project up from FY 94-
95 to FY 93 -94 and authorize staff to proceed with the
procurement of the 9 -1 -1 consoles and recording
equipment. This method will require expenditure of
funds prior to FY 94 -95, as originally programmed.
2. Direct staff to prepare a .Lease /Purchase Agreement as
approved by the City Attorney with Motorola, Inc. in
the amount of $241,563.11 with either 3 or 5 annual
lease payments; $83,898 for 3 years or $52,834 for
5 years commencing in FY 1994 -95. Upon final payment
the city will own all equipment. Dictaphone recording
equipment will need to be procured separately at a
cost of $29,866.49.
Donald R. Du
GRG/mr
*Consoles
r4h, City Manager
LEASE OPTIONS
CITY OF ARCADIA
ARCADIA FIRE CONSOLE SYSTEMS
♦ All lease packages have been negotiated for three (3), five (5) and seven (7) year
terms with payments made annually.
♦ First annual payment to be made upon completion of system installation
♦ All interest rates have been approved and locked -in for 60 days based on the console
system quotation of $241,563.11
OPTION 1
3 YEAR LEASE
Nominal Annual Interest: 4.20%
Finance Amount: $241,563.11
Annual Payments: $ 83,898.00
OPTION 2
5 YEAR LEASE
Nominal Annual Interest: 4.60%
Finance Amount: $241,563.11
Annual Payments: $ 52,834.00
OPTION 3
7 YEAR LEASE
Nominal Annual Interest: 4.980
Finance Amount: $241.563.11
Annual Payments: $ 39,850.00
Nov. 5 1993
This offering is available to the City of Arcadia until 4tUP 44r 1.993 and is contingent
upon the purchase of the entire system quoted. Any variations or deletions from the
proposal will require a liew lease package from Motorola.