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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of $282,150 has been programmed for this project in the Equipment Replacement Fund; which includes replacement of all outdated components, modules, speakers, alarms, -recorders and related electronic equipment.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.