Sparks City Council Meeting 11/10/2014 2:00:00 PM

    Monday, November 10, 2014 2:00 PM
    Council Chambers, Legislative Bldg., 745 4th St., Sparks

General Business: 9.3

Title: Consideration and possible approval for the Fire and Police Departments to purchase portable radios from Dailey-Wells Communications Inc., and accessory equipment from other vendors, in the total combined amount of $444,703.70.
Petitioner/Presenter: Tom Garrison, Fire Chief/Tom Garrison, Fire Chief
Recommendation: 1. I move to approve the Fire and Police Departments to purchase portable radios from Dailey-Wells Communications Inc., and accessory equipment from other vendors, in the total combined amount of $444,703.70. 2. I move to approve the use of the General Fund Contingency budget to purchase portable radios to be used by the Police and Fire Departments for public safety purposes, by transferring budget appropriations totaling $444,703.70 to the appropriate expenditure accounts as recommeded by the City Manager.
Financial Impact: These expenditures were not anticipated and thus were not specifically included in the current FY ’15 budget. As such, it is the City Manager’s recommendation to utilize the City’s Contingency budget within the General Fund for this unplanned expenditure. The Contingency Budget within the General Fund was established at $1,000,000.00 for FY ’15. Additionally, a corresponding transfer-in from the City’s Vehicle Fund was established in the FY ’15 budget in case the General Fund resources were insufficient to pay for Contingency eligible expenditures. However, the FY ’15 General Fund beginning fund balance (which is the ending fund balance from FY ’14 that is carried over into FY ’15) is expected to be higher than what was included in the FY ’15 budget by $573,802 (according to preliminary, unaudited results). Thus, staff recommends utilizing the additional fund balance that was carried over from FY ’14 into FY ’15 rather than the transfer from the Motor Vehicle Fund to pay for this particular need. According to NRS 354.598005(5)(c), the Contingency budget may be utilized by having City Council approve the transfer of budget appropriations from the General Fund Contingency budget to the appropriate expenditure accounts as recommended by the City Manager. As such, the City Manager is recommending that Council approve a budget transfer from the General Fund Contingency budget in the amount of $444,703.70, of which $209,693.70 will be transferred to the Fire Department, and $235,010.00 will be transferred to the Police Department. If approved, the General Fund Contingency budget will be left with a balance of $555,296.30 that may be used for other unforeseen needs during FY ’15. In addition to approval of the actual purchase, a separate motion is required for approval to utilize the General Fund Contingency budget.
Total Costs: $444,703.70
Fund: General Fund    Account: 603455
Program: Emergency Services (100401)
Amount: $209,693.70    Budget Status: Budget Exists
Fund: General Fund    Account: 603455
Program: Patrol - Uniformed Patrol (091344)
Amount: $235,010.00    Budget Status: Budget Exists
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

In 2011, the Police and Fire Departments replaced obsolete portable radios utilizing a combination of grant, general fund and E911 funds.  The replacement portable radios were purchased through Dailey-Wells Communications, Inc.  Approximately six months ago, these radios began having catastrophic failures at an alarming rate.  These failures not only pose a safety issue for personnel, they also impact effective emergency ground operations.  The repair costs are approximately $700.00 per radio and have shown to not fully solve the issues.  Based on the performance of their radios, Dailey-Wells has offered to “buy-back” the P7200 series radios at a reduced rate with the purchase of the new Harris XG-75 portable radio. The purchase of new portable radios will enhance both Departments’ ability to communicate effectively and regionally, and the new portable radios are compliant with current and proposed Federal regulations regarding interoperability capabilities. Dailey-Wells is the sole provider for the portable radios for the Harris EDACS system utilized by Washoe County.  In addition, additional accessory equipment will be purchased to support the new XG-75 radio.



Background:

In 2011, the Sparks Fire and Police Departments identified problems with their emergency communications and interoperability equipment.  The inventory of mobile and portable radios at that time had become increasingly obsolete – inoperable with many of the regional frequencies, non-compliant with current and forthcoming standards of the Federal Communications Commission (FCC), and irreparable due to both the age of the equipment and lack of support from the manufacturer.  Replacement of the radios was necessary to ensure communications on emergency incidents, as well as to prepare for upgrades to the Washoe County Regional Communications System (WCRCS).

 

To address this issue, each department secured funding to replace their fleet of portable (handheld) and mobile 800 MHz radios.  The Fire Department used a combination of funds within their budget plus a FEMA Assistance to Firefighters grant to replace the equipment.  This combination of funding resulted in the purchase of 23 Harris P7270 portable radios from department funding, and 60 from the AFG grant.  The Police Department used funding from the City’s fleet and equipment replacement fund and financial assistance from the Washoe County E911 Committee.  This combination of funding resulted in the purchase of 125 portable radios from the City’s fleet fund, and 37 radios acquired through E911.

 

At the time of purchase the manufacturer marketed the P7270 radio as their first-line Public Safety dual-band (700/800 MHz) radio.  Another feature of importance was the fact that the radios were software upgradable to meet future changes to the WCRCS system, such as P-25 and OpenSky technology.  Although each department knew these upgrades would have fiscal impacts in the future, as additional software and licenses would need to be purchased for these new features, this was the best technology offered at that time.  It should also be noted that only Harris radios were considered, as the regional system is proprietary in nature.  The vendor for Harris radios is Dailey-Wells Communications, Inc.

 

Approximately six months ago, the Fire and Police departments recognized that this model of portable radio began having a large number of failures, all requiring factory repair.  These failures included the failure to transmit, the failure to receive, and poor audio quality.   In the Fire Department for example, 17 of the 83 radios have been returned to the factory for repair, a failure rate of approximately 20%.  To compound matters, factory repair did not guarantee that failures would be corrected, as 2 of the 17 radios within the Fire Department have been returned to the factory multiple times.  All radios came with a 2 year warranty, which has since expired.

 

Similar failure statistics have been experienced in the Police Department. The Police Department has experienced an approximate 25% failure rate with the portable radios, with several radios being returned to the manufacture multiple times.  The radios not covered by warranty cost over $700.00 each to repair with no guarantee they will not fail again.  The Police Department is currently several thousand dollars over the allotted budget for radio repairs due to the failure rate of the portable radios.

 

The failure of the P7270 is not just a Sparks issue, as over 700 radios of this model were purchased by other agencies in the region and have experienced the same problems.  This situation resulted in the Regional Communication Coordinator for the WCRCS, Shawn Taylor, to enter into negotiations with Harris and Dailey-Wells.  A trade-in program was offered, where agencies could trade-in their P7270 portable radio for a trade-in credit, which would be applied toward the purchase of the company’s current radio model – the XG-75.  It should be noted that this trade-in amount ($2,368.41) is equal to 82.9% of the original purchase price of the P7270 ($2,856.01), and also that a 26% discount will also be given on the new XG-75 radio.  Because of new technology and included features, the XG-75’s total purchase price, with trade-in and discount, would be $2,375.00.  Additional accessories, such as extra batteries, chargers, and headsets would necessitate additional purchases.

 

The replacement XG-75 radio would come featured to meet current requirements as well as future changes to the WCRCS including: 700/800 MHz, OTAP (Over the Air Reprogramming), P25 Personality Lock, Direct Frequency Entry, P25 OTAR (Over the Air Re-Keying), P25 Phase 2 TDMA, 256-AES Encryption, Provoice, Link Layer Authentication and ability to operate in P25T, OpenSky and EDACS trunking systems.  These are all features that both departments anticipated as future funding needs as described the paragraphs above.



Analysis:

Reliable communications are essential not only to effective emergency ground operations, but also to ensure personnel safety.  Portable radios are considered an essential part of police and firefighter protective gear, and unreliable portable radios place all first responders at risk.

 

Since October 7, 1999, the City of Sparks has been a member of a regional 800 MHz radio system, the WCRCS – Washoe County Regional Communication System (refer to Agreement #A2612 – Sparks City Clerk’s Office).  This in an EDACS (Enhanced Digital Access Communications System) provided by Harris Communications.  This is a proprietary system representing a patent, copyright, or secret process owned by Harris Communications.  For all portable, mobile, and base-station radios to inter-operate with the County’s EDACS network, they must utilize the same proprietary protocols.

 

Per this agreement, section 15 - Purchase of WCRCS Compatible Equipment:

15.1 – Each participating agency agrees to meet WCRCS 800 MHz radio specifications, including brands and models when appropriate, for associated equipment used to interconnect to the WCRCS as defined within Request for Proposal No. 2063-98, Regional 800 MHz Trunked Radio System, issued by Washoe County on February 11, 1998.

15.2 – Participating agencies agree to comply with the specifications of radio system related equipment orders as defined within Request for Proposal No. 2063-98, Regional 800 MHz Trunked Radio System, issued by Washoe County on February 11, 1998.

15.3 – Associated equipment may be purchased through the County of Washoe to insure compatibility and favored pricing.

 

Because this is a proprietary system, and per the referred inter-local agreement requirements, the City of Sparks procurement and RFP procedures are not applicable.  This is allowed per NRS 332.115, subsection 3 and 4, which allows for the addition of equipment to an existing system of equipment that “by reason of the training of the personnel or of an inventory of replacement parts maintained by the local government are compatible with existing equipment.”  Currently Dailey-Wells Communications is the only manufacturer’s representative assigned by Harris Communications to sell EDACS equipment to participants in the county’s EDACS network (see attached document DWC Sole Source Washoe).  Participants are given a contractually agreed upon discount of at least 25% for all purchases of Harris Communication equipment for use with the proprietary EDACS 800 MHz regional communication system.  In this case, an additional trade-in value is included based on the above described issues.

 

The purchase of additional accessory equipment will be from multiple vendors that don’t necessarily meet the purchasing requirements for direct Council approval or formal bid process.  These additional vendors are listed below for each department:

 

Fire Department accessory equipment includes:

  • Honeywell/GTS - batteries and chargers - $15,079.00
  • Sierra Electronics - speaker mics and headsets - $10,695.00

 

Police Department accessory equipment includes:

  • Honeywell/GTS - batteries and chargers - $19,300.00
  • Tactical Command Industries – reconfigure SWAT headsets - $1,960.00


Alternatives:
  1. City Council could chose not to accept the radio replacement plan.
  2. City Council could chose to accept the radio replacement plan, but direct Staff to find other funding sources instead of the General Fund Contingency budget.


Recommended Motion:
  1. I move to approve the Fire and Police Departments to purchase portable radios from Dailey-Wells Communications Inc., and accessory equipment from other vendors, in the total combined amount of $444,703.70.
  2. I move to approve the use of the General Fund Contingency budget to purchase portable radios to be used by the Police and Fire departments for public safety purposes, by transferring budget appropriations totaling $444,703.70 to the appropriate expenditure accounts as recommended by the City Manager.


Attached Files:
     Dailey-Wells Sole Source.pdf
     Police Dept Radio Replacement Expense Sheet.pdf
     Fire Dept Radio Replacement Expense Sheet.pdf
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