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HomeMy WebLinkAboutResolutions - No. 2016-92RESOLUTION NO. 2016-92 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR THE PURCHASE OF FIVE DISPATCH CONSOLES WITH MOTOROLA, INC., OF SCHAUMBURG, ILLINOIS, AND APPROVE AND EXECUTE A SEVEN- YEAR MAINTENANCE SERVICE AGREEMENT; APPROVING DEBT FINANCING WITH HOLMAN CAPITAL CORPORATION, OF RANCHO SANTA MARGARITA; AUTHORIZING THE CITY MANAGER AND DEPUTY CITY MANAGER TO EXECUTE ALL NECESSARY FINANCING DOCUMENTS; AND FURTHER APPROPRIATING FUNDS WHEREAS, the Lodi Police Department purchased and installed five Motorola, Inc., Centracom Gold Elite radio dispatch consoles in the Police Building in 2004, which have been constantly powered on and in use for the last 12 years; and WHEREAS, Motorola, Inc., discontinued the Gold Elite consoles in September 2011 and will end all factory support in 2018; and WHEREAS, the Lodi Police Department recommends replacing all five consoles with new Motorola MCC 7500s, which will provide dispatchers with state-of-the-art equipment; and WHEREAS, Motorola, Inc., will perform the installation of the equipment and will work directly with Lodi Police Department on implementation; and WHEREAS, the Police Department has elected to purchase a seven-year maintenance service agreement through Motorola, Inc., which will provide on-site maintenance, services, and supplies for the equipment, the cost of which is included in the General Fund operating budget for a total amount of $184,967.83; and WHEREAS, to pursue a lower cost of financing and to ensure compliance with the City's Debt Management Policy, a Request for Proposals for debt financing was issued on April 14, 2016, with a response deadline of April 27, 2016; and WHEREAS, six responses were received from local financial lending institutions, and a review of the subsequent responses in accordance with the City's Debt Management Policy resulted in the selection and recommendation of a seven-year debt financing with Holman Capital Corporation at an interest rate of 2.08 percent; and WHEREAS, the proposed term minimizes total interest costs while providing a reasonable period of time to repay the debt without adversely affecting City cash reserves. Total estimated annual payments of approximately $86,540 will be paid from AB 1913 grant funds. Total interest over the life of the financing is $43,393.28; and WHEREAS, General Fund and AB 1913 funding is appropriated in the Fiscal Year 2016/17 budget and all future fiscal year appropriations will be included during the budget process. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize and approve the following: 1. The City Manager is authorized and directed to execute a contract for the purchase of five dispatch consoles with Motorola, Inc., of Schaumburg, Illinois, and 2. Debt financing with Holman Capital Corporation, of Rancho Santa Margarita, California, in the amount of $562,387; and 3. The City Manager is authorized and directed to execute a seven-year maintenance service agreement with Motorola, Inc., in the amount of $184,967.83; and 4. The City Manager and Deputy City Manager is authorized and directed to execute all necessary financing documents. BE IT FURTHER RESOLVED that funds be appropriated in the amount of $562,387 for this purchase. Dated: June 15, 2016 I hereby certify that Resolution No. 2016-92 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 15, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None , -'Y �NIFER . FERRAIOLO City Clerk 2016-92