Title
AN EMERGENCY ORDINANCE AUTHORIZING THE LEASING OF CERTAIN EQUIPMENT AND THE EXECUTION AND DELIVERY BY THE CITY OF A LEASE PURCHASE AGREEMENT AND OTHER FINANCING DOCUMENTS IN CONNECTION THEREWITH; SETTING FORTH PARAMETERS AND RESTRICTIONS WITH RESPECT TO THE FINANCING; RATIFYING ACTION PREVIOUSLY TAKEN CONCERNING THE REFERENCED TRANSACTIONS; AND PROVIDING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY.
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Summary and Background Information:
The Police Department is requesting Council approval of the Motorola Radio Lease Emergency Ordinance #2363 allowing the department and city to take advantage of a significant cost savings to procure police handheld radios.
The lease is a 5-year lease agreement with an option to purchase. The police department is planning on executing the option to purchase the radios once the terms of the lease agreement have been meet.
Background
In 2023, Motorola will no longer support their “AN” model of the APX handheld radios for First Responders. CCPD has 105 “AN” models and needs to replace 80 radios by 2023.
Why the need for an emergency ordinance?
Entering into the lease agreement in 2021 will allow the city to lock into today’s prices which will save approximately 14-19% of the cost of the radios verses if the city re-appropriated funds into the 2022 radio budget to purchase the radios. The saving range is $54,320-$72,880 (This is the cost increase without the lease agreement if purchased in 2022/2023).
Why didn’t the police department submit a request to re-appropriate funds in October 2021 for the 2021 budget?
Due to the supply chains issues, Motorola could not guarantee the delivery of 80 radios by December 31, 2021 in order to meet the city’s procurement policy requirements. The estimated date to receive 80 radios was February/March 2022 timeframe.
Breakdown of cost saving:
1. The cost of one radio = $4,633 per Motorola’s quote received on October 4, 2021 ($4,633 x 80 = $370,640).
2. The benefi...
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