DATE: May 16, 2023
TO: Mayor and City Council
FROM: Fire Chief
SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate And Execute an Agreement With Motorola For the Purchase of 105 Portable Radios in an Amount Not to Exceed $1,160,917
RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to: (1) execute an agreement with Motorola for the purchase of 105 Motorola Portable Radios for an amount not to exceed $1,160,917; and 2) appropriate $581,630 in Capital Improvement Project (CIP) funds for the purchase of one hundred and five (105) Motorola Portable Radios to provide a necessary system-wide upgrade for fire personnel.
SUMMARY
With consistent call volume and a 24-hour operation, the necessity for reliable and clear communication among fire personnel is essential. The purchase of the upgraded radios is necessary for the Hayward Fire Department (“HFD”) due to the age of the radios currently in use and the advancement of technology since the purchase of the current radio system. This sole-source purchase is essential, as it will allow HFD to continue compliance with the East Bay Regional Communications System (EBRCS) while allowing for a seamless transition from the current operating system to the new operating system, both of which utilize Motorola.
The City will purchase the 105 Motorola Portable Radios in year one of the agreement, rather than leasing the equipment over several years. By not leasing the equipment, the City will save $174,611 in interest payments over the terms of the agreement.
The City currently plans to use $379,287 from the FY 2023 budget, and $200,000 from the FY 2024 budget, for the purchase of the portable radios. As such, an additional $581,630 will need to be appropriated from the CIP fund for the purchase of the 105 portable radios.
BACKGROUND AND DISCUSSION
The current radio system, which has been utilized by HFD for the past 10 years on a 24-hour consistent basis, has reached the end of its intended lifecycle and an update is needed to ensure both the quality of communication and lack of interruption in services.
The HFD has a long-standing forward-thinking approach to the maintenance and continued success of the department, which includes planning for the necessary upgrades for all equipment used by personnel. In 2014, after the completion of previous radio purchases, a budgetary plan was reinstituted to account for the next department-wide radio purchase, scheduled to culminate in FY23. Unfortunately, due to increased supply chain issues and inflation, the cost of the necessary portable radio equipment has surpassed the planned budget allotment. While costs have increased beyond current means, the necessity of this purchase is essential to continue daily operations.
The purchase of the portable radios is crucial to the department, as reliable communication is paramount to the safety and success of all fire personnel. The Hayward Fire Department applied for the Assistance to Firefighters Grant Program to help with the additional cost of the radios (to supplement the price increase). Unfortunately, however, such grant funds were not awarded.
The purchase of the portable radios was originally planned to occur over several years, following the leasing of the equipment. However, given the current price of the equipment, purchasing of the equipment in year one of the agreement will save the City $174.611 in interest payments on leased equipment.
STRATEGIC ROADMAP
This project aligns with the strategic roadmap core priority 1 “Enhance Community Safety & Quality of Life,” as ensuring the full capacity of the emergency response system is a crucial element to public safety.
FISCAL IMPACT
The Motorola equipment that is currently in use, courtesy of the partnership with EBRCS, has a system maintenance agreement that is managed by EBRSC, therefore saving any unexpected system maintenance costs that may occur. The CIP budget has been accruing over the last ten (10) years to cover the purchase and cover some of the large cost burden of the contract. However, additional funds will be needed due to unexpected increases in the cost of the product. By securing the purchase now, we can complete the payment in full in July 2023.
An increase in budget appropriation in the amount of $581,630 in the Capital Projects – Governmental (Fund 405) is required to allow for the equipment to be purchased in full in July 2023. An increase in appropriation to the Capital Projects – Governmental Fund (Fund 405) will occur through a transfer from the General Fund (Fund 100).
Purchase of 105 Motorola Portable Radio Agreement
$1,160,917
FY 2023 Budget
$379,287
FY 2024 Budget
$200,000
Additional Appropriation Required
$581,630
SUSTAINABILITY FEATURES
The continued use of integrated communication systems by the same provider, Motorola, allows HFD to upgrade without having to pay for the purchase of adapters, modifiers, or alternate equipment.
PUBLIC CONTACT
No public contact is needed for this item.
NEXT STEPS
If Council adopts the resolution, staff will: 1) work with the City Manager to execute the agreement with Motorola; 2) Route the budget appropriation to the finance department; and 3) complete the purchase of Motorola Portable Radios. Once received, staff will distribute all required equipment to fire personnel and coordinate with EBRCS to onboard the system.
Prepared by: Lauren Dekas, Management Analyst
Recommended by: Garrett Contreras, Fire Chief
Approved by:
_________________________________
Kelly McAdoo, City Manager