Page 2 Approval of purchase order with Motorola Solutions for 800 MHz "Hot Red" Radio Promotion August 12, 2015 Page 2 The individual obligations for the ongoing maintenance cost of the System Backbone (consoles and equipment), as approved by the Governance Committee, for each of the cities and Orange County Fire Authority are determined by the number of radios that each of the partnering agencies operate on the System. Costs for the radios that operate under contract with the Orange County Sheriff's Department are allocated to the city for which the services are contracted. The City has 45 radios which are allocated for use through the contract with OCSD. Because of the upgrades to the 800 MHz system, all of these radios need to be upgraded or replaced. The County has identified seven radios to be upgraded and 38 to be replaced for a total of 45 radios. The replacement radios have been identified by the County of Orange and the specific models are manufactured by Motorola. Because of the number of radios requiring replacement system-wide, Motorola Solutions is offering a one-time promotion of 50% off the list price, referred to as the "Hot Red" promotion, for all participating agencies that purchase these radios by the end of 2015. The total estimate for the City of Rancho Santa Margarita to replace and upgrade all of our 45 allocated radios is $236,050. This pricing estimate includes the "Hot Red" promotion cost which is based on the purchase of 15 of the 38 radios identified for replacement. If the City does not purchase and receive delivery of the radios designated for the "Hot Red" promotion by the end of 2015, the City will not receive the discount, and the total cost of the radios will be approximately $103,000 higher that than the estimated total cost of $236,050. The radio cost under the "Hot Red" promotion was originally estimated at $102,943. In order to meet the deadlines to qualify for the Motorola discount, the amount necessary to purchase the discounted radios was included in the FY 2015/16 Budget approved on June 10, 2015. The City still has an obligation to purchase the remaining radios by the end of2017. The estimated cost of the remaining 30 radios is estimated at $133,107. The City's Procurement Code generally requires competitive formal bidding for purchases greater than $30,000. However, these bidding requirements and procedures set forth in Sections 3.07.050 and 3.07.060 of the RSMMC (Procurement Code) may be waived, at the discretion of the Purchasing Officer or City Council, when any of the exemptions listed in Section 3.07.070 apply. In this case, Motorola Solutions is considered a sole source vendor, offering a singular-type product necessary to match existing equipment, and exemptions 1, 2, 6 and 11 of Section 3.07.070 apply. Section 3.07.070 (1) provides for an exemption "when goods and supplies, equipment, or nonprofessional services are of a unique, sole source nature because of their quality, durability, availability, or fitness for a particular use and are available only from one source." Only Motorola manufactures the radio specified by the County of Orange for use with the existing 800 MHz system. Section 3.07.070 (2) provides for an exemption "when the goods and supplies, equipment or nonprofessional services are proprietary." The particular technology for the 800 MHz system is proprietary, and only specific radios are compatible with the system. I 070781.1
Page 3 Approval of purchase order with Motorola Solutions for 800 MHz "Hot Red" Radio Promotion August 12, 2015 Page 3 Section 3.07.070 (6) provides for an exemption "when in the opinion of the Purchasing Officer a specific make, model, or brand is necessary to match existing city goods and supplies or equipment or to facilitate the continuity of effective maintenance and support." As indicated, the proposed purchase is for radios that have been pre-selected by the County of Orange for use with the existing 800 MHz system. Section 3.07.070 (11) provides for an exemption "when goods and supplies, equipment, or nonprofessional services are for information technology, computer hardware, software, or related equipment and device". The proposed purchase is for communications technology equipment. The City has a current balance of $17,610 within the Structural Fire Fund Entitlement fund. This fund was established in July 1999 as an outcome of the Equity Study. It is used to monitor and track funds allocated for service enhancements within over-funded Structural Fire Fund (SFF) communities in accordance with the First Amendment to the Amended Joint Powers Agreement (JPA). Previously, the Board of Directors would periodically review the year-end savings for possible allocation to this fund. However, the ratification of the Second Amendment to the JPA established a new methodology for compensating over-funded SFF members; therefore, no additional transfers to this fund are anticipated. The balance is not expected to increase in the future other than a very small interest allocation each year. Because the funds from this source may only be used for fire and EMS-related services and equipment, the City may opt to use these funds toward the purchase of these radios that facilitate communication among emergency and public safety providers. Staff is recommending that these funds be used for this purpose, and therefore, made a request to the Orange County Fire Authority (OCFA) to use these funds towards this purchase of the 800 MHz radios. OCFA has indicated that this is an approved use of the funds. Alternatives There are no feasible alternatives, as the City has committed to the cost to extend the life of the 800 MHz CCCS, and in order for the City to utilize the system, the radios must be replaced or upgraded, as necessary, to be compatible with the upgraded technology. Fiscal Impact The Motorola Solutions Purchase Order #527 is $1 03,804.52; the FY 2015/16 approved budget allocated $102,943. The difference can be absorbed within the current approved budget and by utilizing OCFA Structural Fire Fund Entitlement funds. In FY 2016-17, the City will need to budget for and allocate an additional $133,107 for the purchase of the remaining required radios. It is important to note that the City had previously anticipated the use of reserve funds towards the costs of the radios; however, the City was able to budget this radio purchase within the FY 2015/16 General Fund operation budget without the use of reserves. 1070781.1
Page 4 Approval of purchase order with Motorola Solutions for 800 MHz "Hot Red" Radio Promotion August 12, 2015 Page 4 Attachments A. Purchase Order #527 for $103,804.52 effective FY 2015/16. I 070781.1
PURCHASE ORDER Page 5 City of Rancho Santa Margarita 22112 El Paseo Rancho Santa Margarita, CA 92688 (949)635-1800 FAX (949) 635-1840 VENDOR MOTOROLA SOLUTIONS 6450 SEQUENCE DRIVE SAN DIEGO, CA 92121 08/05/2015 VENDOR NO.: 177 SHIP TO CITY HALL CITY OF RANCHO SANTA MARGARITA 22112 EL PASEO RANCHO SNTA MARGARITA, CA 92688 SHIP VIA: F.O.B.: TERMS: N30 EXP. DATE: 06/30/2016 DESCRIPTION: 800 MHZ RADIOS ORDERED BY: LINDA BROWN P.O. TYPE: Regular REO. NO.: ACCT. NO.: QUANTITY DESCRIPTION UNIT PRICE TOTAL COST 13.000 2.000 1.000 1.000 M25URS9PW1 N Mobile Hot Red Radio M30URS9PW1 N Motorcycle Hot Red Radi Sales Tax 8% Shipping 6,266.5000 6,884.5000 7,618.6800 952.3400 81,464.50 13,769.00 7,618.68 952.34 TOTAL: $ 103,804.52 100-170-826.000 Equipment- Police 800MHz radios (15) 103,804.52 NOTE: Per Quote #0805155HRRRSM Pricing per Orange County Price Book Agreement #MA-060-15011560 Pricing includes Orange County 2015 Hot Red Receiver Promotional Discount Radios must be ordered prior to October 31,2015 and ship prior to December 31, 2015 to be eligible for promotion. ACKNOWLEDGEMENT AND ACCEPTANCE, CITY HEREBY OFFEERS TO PURCHASE FROM SELLER THE GOODS AND SUPPLIES, SERVICES, EQUIPMENT, MATERIALS, AND/OR PRODUCTS SPECIFIED IN THIS PURCHASE ORDER, AND VENDOR DESIRES TO ACCEPT THIS OFFER, SUBJECT TO THE ATTACHED TERMS AND CONDITIONS. SELLER ACKNOWLEDGES AND AGREES THAT THIS PURCHASE ORDER IS SUBJECT TO ALL OF THE ATTACHED TERMS AND CONDITIONS, COLLECTIVELY (THE "CONTRACT"). City of Rancho Santa Margarita By: ------------,-- Jennifer M. Cervantez, City Manager/Purchasing Officer
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MOTOROLA Page 7 Motorola Solutions 6450 Sequence Drive San Diego, Ca 9212 1 Attention: Kim Caplan Phone: 858-442-3979 Kim.Caplan@Motorola.com Quote: 0805155HRRRSM PREPARED FOR: COMPANY Stefanie Turner City of Rancho Santa Margarita Eq uipment Details and Pricing Q!L Model Description List OC Price Book MOBILE HOT RED RECEIVER RADIO HOT RED RECEIVER GREEN RADIO MOB ILE 13 M25URS9PW I N 13 G51 13 G806 13 GA00805 13 G444 13 G851 13 W969 13 G361 13 G67 13 G335 13 W22 13 BI8 13 W599 13 GA0011 15 13 GA0 111 3AA 13 GA05100AA HOT RED RECEIVER RED RADIO MOBILE 13 M25URS9PWI N 13 G51 13 G806 13 G36 1 13 G88 13 G444 13 G67 13 G335 13 G90 13 Bl8 13 GA0 111 7AA 13 GA05100AA APX6500 700/800 MHZ MID POWER MOBILE 10-35 WATT $ 12,533.00 $8,397.11 ADD: SMARTZONE OPERATION ADD: ASTRO DIGITAL CAJ OPERATION ADD: APX 07 CONTROL HEAD ADD: CONTROL HEAD SOFfWARE ADD: AES/DES-XLIDES-OFB ENCRYPTION ADD:MULTI-KEY ADD:P25 TRUNKJNG ADD: REMOTE MOUNT MID POWER ADD: ANT 1/4 WAVE 762-870 MHZ ADD: PALM MICROPHONE ADD: AUXILIARY SPKR 7.5 WATT ADD: 8 MODE DIRECT ENTRY ADD: DUAL RADIO STACKABLE MID POWER TRUNNION ENH: DUAL RADIO OPERATION (PRIMARY RADIO) DEL NO SFS-STD WARRANTY APPLIES APX6500 700/800 MHZ MID POWER MOBILE 10-35 WATT ADD: SMARTZONE OPERATION ADD: ASTRO DIGITAL CAl OPERATION ADD:P25 TRUNKJNG ADD: NO CONTROL HEAD NEEDED ADD: CONTROL HEAD SOFrWARE ADD: REMOTE MOUNT MID POWER ADD: ANT 1/4 WAVE 762-870 MHZ ADD: NO MICROPHONE NEEDED ADD: AUXILIARY SPKR 7.5 WATT ENH: DUAL RADIO OPERATION (SECONDARY RADIO) DEL: NO SFS-STD WARRANTY APPLIES $6,266.50 $8 1,464.50 MOTORCYCLE HOT RED RECEIVER RADIO HOT RED RECEIVER GREEN RADIO MOTORCYCLE M30URS9PW I N APX7500 700/800 MHZ MID POWER MOBILE 10-35 WATT $ 13,769.00 $9,225.23 ADD SMARTZONE OPERATION ADD: ASTRO DIG ITAL CAl OPERATION ADD: APX 07 CONTROL HEAD ADD:P25 TRUNKING ADD: AES/DES-XLIDES-OFB ENCRYPTION ADD:MUL TI-KEY ADD: CONTROL HEAD SOFfWARE ADD: REMOTE MOUNT MID POWER ADD:ANT 1/4 WAVE 762-870 MHZ ADD: AUXILIARY SPKR 7.5 WATT ADD: DUAL RADIO STACKABLE MID POWER TRUNNION ADD: APX MOTORCYCLE CH SFWR ADD: NO MTRCYCLE ENCL NEEDED APEX ADD: DUAL RADIO AUDIO COMBINER ENH DUAL RADIO OPERATION (PRIMARY RADIO) ADD: NO MICROPHONE NEEDED DEL: NO SFS-STD WARRANTY APPLIES G51 G806 GA00805 G36 1 G85 1 W969 G444 G67 G335 Bl8 GA001 11 5 G l38 W620 GA0 111 6 GA01 11 3AA G90 GA05100AA HOT RED RECEIVER RED RADIO MOTORCYCLE M25URS9PW I N G51 G806 G361 G88 G444 G67 G335 G90 GA0 111 7 G l42 GA05 100AA APX6500 700/800 MHZ MID POWER MOBILE 10-35 WATT ADD: SMARTZONE OPERATION ADD: ASTRO DIGITAL CAl OPERATION ADD:P25 TRUNKING ADD: NO CONTROL HEAD NEEDED ADD: CONTROL HEAD SOFfWARE ADD: REMOTE MOUNT MID POWER ADD: ANT 1/4 WAVE 762-870 MHZ ADD NO MICROPHONE NEEDED ENH: DUAL RAD IO OPERATION (SECONDARY RAD IO) ADD: NO SPEAKER NEEDED DEL: NO SFS-STD WARRANTY APPLIES $6,884.50 $ 13,769.00
ADD IT IONAL MOTORCYCYLE PA RTS HI835A HKN6 169B HMNI090 8 MODE DIRECT ENTRY CABLE, REMOTE MOUNT, 5M ADD: PALM MICROPHONE Page 8 Pricing per Orange County Price Book Agreement # MA-060-1 50 11560 Pricing Includes Orange County 20 15 Hot Red Receiver Promotional Discount Radios must be ordered prior to October 31, 201 5 and ship prior to December 3 1, 20 15 to be eli gibl e for Promotion QUOTE TERMS AND CONDITIONS : SUBTOTAL TAXES SH[J>P!NG $103,804.52 $95,233.50 $7,6 18.68 $952.34 I) Quotes are exclusive of all installation and programming charges( unl ess expressly stated ) and all applicable taxes. 2) Purchaser will be responsible fo r shipping costs, whi ch wi ll be added to the invoice. 3) Prices quoted are valid for thirty(30) days from the date of this quote. 4) Unless otherwise stated, pay ment will be due within thirty days after in voice. 5) The informat io n provided in this quote is provided for budgetary purposes onl y, and does not constitute an offer to sell or li cense any Motorola product.