HomeMy WebLinkAboutMINUTES - 07132004 - C.123 TO: BOARD OF SUPERVISORS CONTRA
FROM: Tom Whittington �;''!' ;. COSTA
Chief Information Officer ° COUNTY
DATE: JULY 13, 2004
SUBJECT: Digital Microwave Public Safety Communications System Debt Service
SPECIFIC REQUEST{S}OR RECOMMENDATION{S}&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Chief Information Officer or designee to execute an
amendment to the February 25, 1997 lease agreement between the County and Pacific Bell
Mobile Services (now Cingular Wireless)for the digital microwave Public Safety
Communications System, modifying the lease/purchase terms and conditions which reduces
the lease/purchase amount from $4,024,085 to $3,413,955.
AUTHORIZE payment in the amount of$2,400,000 to Cingular Wireless for the first
installment on the debt service for the digital microwave Public Safety Communications
System.
FISCAL IMPACT:
The modified agreement will save the County $500,000 over 10 years. After the initial
payment of$2,400,000, the County will owe an annual amount of$112,562 for the period of
July, 2005 through July, 2013. This amount will be recovered through user fees. The initial
payment of$2,400,000 has been reserved in a General Fund designation for this purpose.
CONTINUED ON ATTACHMENT: X YES SIGNATURE; rf'
COMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENDATION OF BOARD COM E
--'APPROVE OTHER
SIGNATURE{S}:Q:��
ACTION OF BOAR � ` ' ' "s :` APPROVED AS RECOMMENDED
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
` UNANIMOUS{ABSENT '%'. } TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Tam Whittington 3-'1264 r . y
CC: DoIT ATTESTED .R -e�: y ,-7.08 :
County Administrator
Auditor-Controller JOHN SWEETEN,CLERK OF
THE BOARD OF SUPERVISORS
AND CO"TY ADMINISTRATOR
27`PUTY
REASONS FOR RECOMMENDATION AND BACKGROUND:
On February 12, 1997 the County approved a Microwave Relocation Agreement with Pacific
Bell Mobile Services (now Cingular) effective 2/25/97 to replace the County's analog
microwave system with a digital system. The project was estimated to cost $6,387,438 with
the County responsible for$4,024,086. The County's portion is currently a 10-year interest-
free lease/purchase obligation that starts when the project is completed.
The project completed in May, 2004 and the County has accumulated $2,400,000 in a fund
designated for the debt repayment. lasing these funds, DoIT was able to renegotiate the lease
agreement by reducing the lease/payment obligation from $4,024,086 to $3,413,956 by
making a single payment and then financing the remaining balance over 10 years interest free.
This saves the County over$600,000 during the 10-year term.
CONSEQUENCES OF NEGATIVE ACTION:
If this agreement is not approved, the saving will not be achieved and the existing $4,024,086
obligation will still exist.