PURPOSE

Staff is requesting that the Council approve the attached Joint Exercise of Powers Agreement (ICIS Agreement) to establish a Joint Powers Agency (JPA) in order to create the Interagency Communications Interoperability System (ICIS).

Staff is also requesting that the Council approve the Master Purchase Agreement for the ultra-high frequency (UHF) Smartzone communications system between the City and Motorola, Inc.

BACKGROUND

Seamless radio communications could allow safety personnel to respond more quickly. Police, fire and other public safety personnel do not have seamless radio communications when they cross jurisdictions within Los Angeles County. Instead, they must shift to other radio channels as they leave one area served by one jurisdiction�s radio system and enter another. However, there are many circumstances when seamless radio communications would be an advantage, including:

      �        Police pursuits

      �        Coordination of fire strike teams

      �        Incidents on public transportation

      �        Homeland security alerts

      �        Natural disasters

Although many cities use compatible technologies for their voice radio systems, most cover a very limited area. Many cities do not have common channels that would provide for radio operation over a wide area. An ICIS represents a coordinated effort (the �interagency� part of ICIS) to create a system that provides seamless voice radio operation across jurisdictional boundaries (the �interoperability� part of ICIS) for public safety personnel.

Burbank has been working with other cities, within an Interim JPA, to develop ICIS and to work towards a permanent JPA.  In 2002, Burbank had been working together with eight other cities to explore developing an ICIS: Beverly Hills, Culver City, El Segundo, Glendale, Montebello, Pasadena, Pomona and Torrance. These cities had compatible radio systems with each other, or planned to have compatible systems as they went ahead with internal system upgrades. Collectively, they could provide excellent seamless radio coverage throughout most of Los Angeles County.

Traditionally, Los Angeles County or the City of Los Angeles has attracted the lion�s share of any federal funding for communication system upgrades, of which ICIS would be an example. As the cities� staffs worked together, it became evident that they needed a formalized structure to effectively seek outside funding, as well as to provide each city an equal voice in the development of the system. On September 10, 2002, the Burbank City Council approved Burbank�s participation in an Interim Joint Powers Authority (Interim JPA) with the other cities.

Under the Interim JPA, Burbank and the cities have been pursuing several objectives:

      �        Creating a permanent joint powers authority

      �        Seeking and developing funding mechanisms

      �        Providing a plan for the management of ICIS

      �        Developing  a business plan

      �        Resolving technical and operational issues.

Participation in the Interim JPA has not bound or committed Burbank in any way to participate in a permanent joint powers authority or in any future ICIS project, unless and until the Council separately approves such participation. However, the ICIS development work has been promising enough to merit the formation of a permanent JPA.

BWP plans to upgrade the City�s radio system with or without ICIS.  Burbank�s radio system has two major parts: a microwave relay system and an ultra-high frequency (UHF) system, both supplied by Motorola, Inc (Motorola).  BWP replaced the microwave relay system in FY2002-03; the new system will have a useful life of at least 15 years.  The UHF system was installed 12 years ago and, except for individual radios, has not yet been replaced.

BWP has had in place a five-year plan, approved in 2002, that relies on extending the life of its existing UHF system for another two to five years (2005 to 2008) through aggressive preventive maintenance before reliability drops from its present high level. The most critical UHF system replacements, those for Police and Fire, should occur by the end of FY 2004-05. The UHF system should be replaced over the next five years because:

�        Even with excellent preventive maintenance, UHF radios and equipment will out or become very difficult and expensive to keep in service after five years. Motorola no longer supports the existing UHF radios; in the near future, parts will no longer be available.

�       

      The Federal Communications Commission wants future radios to operate on a narrower band. Although the City will not actually have to change its radios until 2013, spare parts for its existing radios will become hard to find after 2006, when manufacturers will no longer produce the current generation of wider band radios.

�       

�        Upgrading the UHF system would also allow the City to fold in ICIS capability.

At this time, it is unclear whether the non-safety services would continue to need radios, or whether radio phones (Nextel-type devices) would be more appropriate. The Police and Fire replacements would enable the City to delay having to make this decision, as the existing radio equipment for the safety services could be used as spares for the non-safety departments. Delay would work to the City�s advantage because technological advances in radio systems are continually lowering the cost curve, and reserves would continue to build up.

BWP will continue to use Motorola, Inc. radio equipment for its backbone and safety radio upgrades. Motorola continues to be the pre-eminent source for the backbone of municipal radio systems as well as for the high-end radios needed by police, fire and other safety personnel. BWP has been negotiating prices, terms and conditions with Motorola for the purchase of the backbone for the City�s new radio system, as well as for radios for police and fire.

ANALYSIS

ICIS is very compatible with Burbank�s own plans. Many of the radio system upgrades required for ICIS coincide with upgrades that BWP had been planning to do anyway:

      �        Make use of both digital and analog operation.

      �        Employ trunking to efficiently use channels that may otherwise go unused much of the time.

      �        Use simulcast technology with multiple transmitters so that one transmitter can fill in radio coverage where another cannot reach.

      �        Design system architecture capable of enhancement with future technologies, and expansion to meet future needs.

In Burbank�s case, having ICIS would be a further improvement of radio system capabilities. Achieving ICIS as part of a JPA would allow Burbank and other cities to benefit from wide area radio communications without having to independently construct the entire ICIS radio infrastructure. (Also see attached �How ICIS Works� illustration from page 11 of the ICIS JPA Business Plan.)

The legal authority is in place to enable the JPA. Pursuant to Section 6500 et seq. of the California Government Code, Burbank is empowered to execute agreements with other public agencies to jointly exercise powers commonly held by each of the contracting public agencies (�joint powers agreement�), as well as other powers applicable to joint powers agencies by law.

Main features of Agreement and JPA protect Burbank. The purpose of the Agreement is to create a permanent joint powers authority.

The JPA is to be governed by a Governance Board (Board):

      �        Each city shall have one representative, appointed by the City Manager, on the Board. 

      �        The Board shall conduct regular meetings at least monthly.

      �        All meetings of the Board shall be in accordance with the provisions of the Ralph M. Brown Act.

      �        A majority of Board members shall constitute a quorum for the transaction of business.  The affirmative vote of at least a majority of the members available in the quorum shall be required for any act of the Board other than adjournment. For the issuance of revenue bonds or the payment of surplus revenue to members, a two-thirds vote will be required.

      �        The Board shall appoint two standing committees to be known as the �ICIS Operations Committee� and the �ICIS Technical Committee.�  Each Committee shall have a Chair selected by the Board and a Vice Chair selected by the Committee, subject to the concurrence of the Board.  The ICIS Operations Committee members shall be comprised of first responding personnel.  The ICIS Technical Committee shall be comprised of radio communications personnel.

      �        Under no circumstance shall the Board enter into any contract or commit any act of omission that may result in a liability for any individual city, unless such city expressly agrees in writing to be bound by such contract or conduct.

      �        Licenses to frequencies shall remain primary to the member holding the license.

      �        The members shall participate ratably in the costs and benefits of ICIS, including any benefits that accrue from outside funding.

Pursuant to the authority of Section 6508.1 of the California Government Code, the debts, liabilities, or obligations of the JPA shall be solely the debts, liabilities and obligations of the JPA and not its members. However, if any bonds have been issued and remain outstanding, the members benefiting from the bonds cannot withdraw from the JPA until the bonds have been paid or adequate provision has been made for such payment. Absent this restriction, members may withdraw from the JPA with 90 days notice if they are not providing infrastructure to ICIS; with 12 months notice if they are (excepting Glendale, which would have to provide 24 months written notice). Article VI of the Agreement more fully discusses the withdrawal and termination provisions.

Joining ICIS would save about $1,100,000 in up-front costs, but could, depending on the level of member participation, cost $50,000 to $134,000 extra per year.  The City funds its radio and phone system capital improvements, operations and maintenance through Fund 535, an internal service fund. Each City Department contributes to Fund 535 in proportion to the percentage of the system it uses. In the case of radios, this percentage is determined by the percentage of radios and base stations. (In the case of phones, its determined by the number of lines.)

In 2002, the Council approved a $400,000 increase in the City Departments� contributions to the radio system, in order to more quickly build up Fund 535�s radio replacement reserves. Cash flow projections made in 2002 showed that this $400,000 increase should be adequate.

BWP has secured a firm price from Motorola. After extensive negotiations, BWP secured a firm price from Motorola of $6,851,253 for the engineered-and-installed cost of:

      �        Prime sites, remote sites, console upgrades and other backbone equipment for the City�s radio system

      �        Control stations and desksets, portable radios and mobile radios for police and fire

      �        Interface with ICIS

The attached copy of Motorola�s Pricing Summary provides greater detail.

If the City joins ICIS, it can upgrade its radio system more quickly and at less cost. Table 1 presents the updated cash flow of the radio replacement reserves if the City joins ICIS. The $6,851,253 price just discussed would be paid over two budget years.  In addition, there is an $85,000 cost of connecting the system via Glendale�s system.

As Table 1 shows, the radio replacement reserves by plan could handle the $6,851,253 purchase. There would still be funds remaining to upgrade the rest of the radio system over the three fiscal years immediately following the backbone and safety upgrades. Thereafter, the reserves continue to build to enable a future radio system replacement.

If the City does not join ICIS, it would upgrade its radio system less quickly and at more cost. Table 2 presents the updated cash flow of the radio replacement reserves if the City does not join ICIS. The $6,851,253 price just discussed would still be paid over two budget years.  However, the City would now need its own Master Controller in order to do any radio reprogramming or make other system changes; it could not make use of Glendale�s, as it could under ICIS. Instead of the $85,000 cost of connecting the system via Glendale�s system, there would be about a $1.2 million cost of the Master Controller (also spread over two years), resulting in a net cost increase of about $1.1 million.

As Table 2 shows, the radio replacement reserves by plan would just handle the additional cost, and would have to make a modest use of Fund 535 cash that is presently unrestricted. The City would have to delay upgrading the rest of the radio system for one year after the backbone and safety upgrades. Thereafter, the reserves would be sufficient to fund the non-safety radio replacements as well as provide for future replacements.

Ongoing costs of ICIS for the City range from $49,000 to $134,000 per year, depending on the level of participation and the method of determining ratable share. The Business Plan for the ICIS JPA included several estimates of the annual cost per member, depending on the number of agencies participating. In all cases, it was assumed that there was no outside funding. The most likely case will be the one in which the City pays less than $10,000 in FY2003-04, pays $84,000 in FY 2004-05, pays $126,000 in FY 2005-06, pays $134,000 in FY 2006-07, then pays only $49,000 in FY 2007-08. (Also refer to the attached ICIS Revenue and Expenditures Table from page 10 of the ICIS Business Plan.)

The ongoing costs of ICIS would be an expense outside Fund 535 as a General Fund expenditure on behalf of police and fire.

The City�s Executive Team endorses joining the ICIS JPA. At a recent Executive Team meeting, the City�s Executive Team, which includes those Executive Team members serving on the Fund 535 Executive Committee, endorsed having the Council approve the terms and provisions of the ICIS Agreement and approving the Master Purchase Agreement with Motorola.

FISCAL IMPACT STATEMENT

Joining ICIS has a positive impact on the Fund 535 radio replacement reserves. The City avoids an extra $1.1 million in radio system costs, and is able to replace all of its radio system by FY 2007-08.

Absent outside funding, joining ICIS will likely impact the General Fund by less than $10,000 in FY2003-04, $84,000 in FY 2004-05, $126,000 in FY 2005-06, $134,000 in FY 2006-07, then $49,000 in FY 2007-08.  

Approving the Master Purchase Agreement with Motorola would secure a firm price for backbone and safety radio system upgrades that are within the planned radio reserve funding.

RECOMMENDATION

Staff recommends that the Council approve the terms and provisions of the ICIS Agreement establishing a JPA to create the ICIS.

Staff also recommends that the Council approve the Master Purchase Agreement for the ultra-high frequency (UHF) Smartzone communications system between the City and Motorola, Inc.

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