REPORT TO COUNCIL
SUBJECT
Title
Authorization to Proceed with the Silicon Valley Regional Communication System (SVRCS) Memorandum of Understanding
Report
BACKGROUND
In October 2012 (RTC 12-232), Council authorized the Department of Public Safety (DPS) to proceed with a new citywide radio system deployment in partnership with the Silicon Valley Regional Interoperability Authority (SVRIA). Sunnyvale's participation in SVRIA was approved by Council in March 2010 (RTC 10-054). SVRIA managed the infrastructure purchase, using grant funds to complete the first three stages of the system build-out from October 2012 to present. DPS utilized budgeted funds and awarded grants to purchase the subscriber equipment necessary to operate on the new infrastructure. The cities of Sunnyvale and Santa Clara transitioned to the new infrastructure in December 2014.
Since the initial planning for the system started several years ago, there have been many options discussed on how to complete the infrastructure build-out of the Silicon Valley Regional Communications System (SVRCS) with diminishing grant funds. Options for bonds, ballot measures, financing and direct payment have been presented to the elected officials that comprise the SVRIA Board of Directors (SVRIA Board). The costs for the alternative methods were shared with the SVRIA participants and it was determined that a direct agency payment model is the most acceptable. On April 13, 2015, the SVRIA Board approved the final version of the system build-out Memorandum of Understanding (MOU), including the infrastructure shared costs and the annual SVRIA maintenance.
The MOU was developed in collaboration with all of the participating agencies legal departments and provides flexibility for future expansion of participation to equitably share costs. The MOU also provides protection from members leaving the system causing significant cost increases to the remaining participants.
The cost sharing methodology was established based on the number of users from each participating agency. Recently, SVRIA and the Valley Transit Authority (VTA) came to agreement on VTA becoming a member of the Joint Powers Authority. This new membership greatly reduced the costs to the remaining participants with the additional 2,000 users applied to the system calculations.
The completion of the SVRCS will allow Santa Clara county police, fire and emergency medical personnel to operate within San Francisco, San Mateo, Alameda and Contra Costa Counties where they have completed implementation of similar systems. The development of interoperable systems has been a long-time goal of the bay area in preparation for disaster or major incident response.
EXISTING POLICY
GOAL SN-2: Effective Disaster Preparedness
Ensure that the City, its community members, business, faith-based organizations, community organizations and special needs populations are prepared to effectively respond and recover from major disasters and emergencies.
Policy SN-2.5: Provide emergency radio or other communication devices for coordination of emergency response and the capability to communicate with outside agencies and community members.
GOAL SN-3: Safe and Secure City
Ensure a safe and secure environment for people and property in the community by providing effective public safety response and prevention and education services.
GOAL SN-7: Effective Emergency Communication Services
Provide emergency communications services.
ENVIRONMENTAL REVIEW
This activity does not require environmental review because it can be seen with certainty that there is no possibility that it may have a significant effect on the environment (CEQA Guideline 15061 (b)(3)).
DISCUSSION
Sunnyvale has actively participated in the development and planning of the SVRCS since 2010 which led to a Request for Proposal in November 2011. After reviewing the responding vendor solutions, Motorola was selected as the contractor for the project in September 2012. Since 2012, four stages of the project have been initiated through available Urban Area Security Initiative (UASI) and State Homeland Security Grant Program (SHSGP) funding. Due to the small amounts being received each year, it would take a significant number of years to complete the infrastructure build-out of the project.
SVRIA will continue to apply grant funding to the project to reduce the participant costs as appropriate. SVRIA is proposing a three-year payment program for the completion of the infrastructure. This provides flexibility in adding participants and recognizing contract savings throughout the process to potentially reduce the final payment. The proposed amounts include a significant contingency based upon the experience of other regionally developed systems. SVRIA has utilized the expertise of several independent contractors to evaluate the estimated costs and the existing contract to ensure all aspects of the system build are accounted for in the final design.
In the initial stage, SVRIA negotiated favorable pricing for infrastructure which reduced costs to participants for subscriber equipment. Within the contract, a clause was included to allow SVRIA to negotiate large or multi-stage purchases with Motorola to obtain additional savings. Once the MOU's are established, SVRIA will begin negotiations with Motorola over the final system build-out costs which are currently estimated based on existing contract incentives. Additional savings may be realized in these negotiations.
FISCAL IMPACT
The total cost to the City for completion of the SVRIA infrastructure will be $1.3 million over three years, with the first payment coming in FY 2015/16. Funding for the deployment of the SVRIA system is provided from the budgets of both the Information Technology Department and DPS. Staff is proposing to combine the funding in one location, the Technology and Communication Services Sub-Fund in the General Services Fund, and make the contribution to SVRIA over three years from that Fund. The total currently budgeted over twenty years from all sources is approximately $11.3 million. It is anticipated that the partnership with SVRIA will ultimately reduce the total cost to the City to about $9.3 million over twenty years. Therefore, this expense can be absorbed by the Fund through the use of reserves. If approved, staff will incorporate this change into the FY 2015/16 Adopted Budget, and include an appropriation to make the first payment. It is important to note that there are many different components of this system and that additional expenses may come forward at a later date; however, it is anticipated that even in that event, the system will cost less than currently planned over the long term.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute the Memorandum of Understanding with the Silicon Valley Regional Interoperability Authority to complete the Regional Communications System build-out.
Staff
Prepared by: Jeffrey Hunter, Captain
Reviewed by: Frank Grgurina, Director, Public Safety
Reviewed by: David Jensen, Director, Information Technology
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. SVRCS MOU Final
2. SVRIA Board of Directors