MEMORANDUM VILLAGE OF NORTHBROOK
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1 MEMORANDUM VILLAGE OF NORTHBROOK POLICE DEPARTMENT TO: RICHARD A. NAHRSTADT, VILLAGE MANAGER FROM: JASON BATALDEN, INTERNAL SERVICES ADMINISTRATOR DATE: December 8, 2015 SUBJECT: STARCOM AGREEMENT In light of existing federal legislation that allows the Federal Communications Commission (FCC) to take back radio frequencies that many public safety agencies utilize and requires a switch to an 800MHz frequency, the Village must decide whether to build and maintain their own completely new radio network, partner with other communities to build and maintain a new network or join an existing private network. This legislation takes effect in 2021 and will require Northbrook to be responsible for the cost of building, maintaining and managing its own public safety radio network on a compatible frequency. While Northbrook is a member of NORCOM, a local public safety radio consortium, staff has explored our options and determined that the cost associated with constructing an entirely new network is prohibitive, whether as a sole owner or as a joint venture with other communities. At this time, many of the current members of NORCOM are moving towards utilizing the Starcom21 system, a public-private partnership of Motorola and The State of Illinois. Starcom21 is the official, statewide public safety radio network of Illinois. Starcom21 is a Project 25 (P25) compliant 700/800 MHz IP-based radio system with over 270 radio tower sites. Motorola Solutions, Inc. of Schaumburg, IL has built and manages this system throughout the state under the governance of a board of system users. In addition, Motorola has been awarded a contract through the State of Illinois to offer these products and services. By choosing to partner with Motorola, our personnel will utilize StarCom21 s existing 700/800 MHz trunked radio network. The Starcom21 system would allow us access to the various Illinois mutual aid resources that already exist on the StarCom21 network. StarCom21 utilizes infrastructure already built by Motorola for use by the Illinois State Police, other state agencies and several other local and county users. While we would not need to invest in significant infrastructure, we would have to purchase compatible portable radios as well as control stations for the dispatch center. This option is convenient in that there is no major infrastructure to buy, build and maintain and Motorola would be our provider of public safety radio communications services going forward. While we would lose local ownership over communications operations and be dependent on the Starcom21 system for our network infrastructure, radio network management is not a business the Village is staffed to conduct. Currently, we outsource our radio network maintenance and equipment repair. Previously, the StarCom21 infrastructure was not prevalent in our area. However the pending loss of the T-Band frequencies is spurring rapid network expansion. Recently Motorola won the Lake County contract to build their radio infrastructure across that region. Obviously, as we are a Lake County Page 1
2 neighbor, this has improved our Starcom21 radio network coverage. Additional towers have been built in communities to support our coverage such as Highwood and Vernon Hills. Glenview has also recently signed a contract to move over to the Starcom21 network. Geographically, we are surrounded by Starcom21 coverage and the StarCom21 frequency, as shown by live testing, is now able to provide the dependable reception we have been seeking. Not only can we confidently replace our existing system without installing additional infrastructure, but we will benefit from superior digital audio quality and network maintenance. By switching over to the Starcom21 radio network, the Village will also Gain interoperability with Northwest Central Dispatch agencies, Cook County Sheriff, Lake County Sheriff, the Illinois State Police as well as our own Fire Department from one radio. Be able to roam out of the Village limits without loss of communication when conducting investigations, pursuing offenders, or transporting prisoners. Expand number of channels available to investigators and other talk groups. Increase officer safety with GPS capabilities in newer model radios. Take advantage of system redundancy by using the coverage of Lake county sites, in the event of a Northbrook specific network outage. Smooth large capital investments related to site improvement and equipment upgrades. Avoid costs of managing, upgrading and monitoring our own network. Northbrook will receive 24/7 network support, 10 years of hardware/software/network upgrades, and fixed airtime rates. Eliminate the escalating costs of copper phone lines that currently connect the dispatch center to our receiver sites. Motorola Solutions, Inc. has proposed a 10-year agreement with a project cost of $2,338,676. The total project cost is estimated at $2,454,457, after including required costs available outside of Motorola. Attached (Appendix 1) is a detailed project cost analysis over the term of the agreement, illustrating the difference between contracting with Motorola for Starcom21 radio network services and maintaining our own radio network. The Starcom21 option compares to an estimated cost of $4,573,552 to build, and maintain our own network and infrastructure. Motorola has offered interest free financing for four years on the capital costs. As such, equipment costs have been spread over the first four years, while maintenance/upgrades, airtime and connection costs will be billed as-we-go over the ten year agreement. At this time, we are projecting a 10-year savings of $2,119,095. The primary driver of these savings are the decommissioning of our current copper radio lines that connect our system to its receiver sites. These costs currently exceed $110,000 per year and are expected to grow exponentially, as the telecommunications industry seeks to phase out this technology. There are options to reduce the cost of copper lines in our current scenario, such as transitioning to microwave signal communications, but the full costs of these copper lines are included in the comparison. Moreover, our current portable radios are reaching the end of their projected useful lives and our dispatch consoles will be due for replacement as they approach the manufacturer s end of life in The savings also do not reflect any Page 2
3 staff costs for time spent managing or troubleshooting the current system or implementing and maintaining a new radio network. Chart 1. FY 17 FY 18 FY 19 FY 20 FY Total CSA 318, , , ,829-1,275,316 SUA 69,256 69,256 69,256 69, , ,560 Airtime 37,080 37,080 37,080 37, , ,800 Total Motorola 425, , , , ,016 2,338,676 Proposal T1 Connection 9,826 9,826 9,826 9,826 58,956 98,260 Other ,521 17,521 Grand Total 434, , , , ,493 2,454,457 This project is not currently budgeted. However, the project has received initial approval through the Capital Improvement Plan process and the first invoice will be budgeted and received in FY 16/17. Chart 1 above details the costs for the agreements we will enter into with Motorola. The Communications System Agreement (CSA) covers the equipment purchase. The System User Agreement covers the lifecycle maintenance and upgrades. The Airtime and Connectivity costs cover the subscriber (radio) and network connection fees. The other category is for portable radio maintenance outside the 5-year warranty. As you can see, turning over the maintenance of our radio network would not only allow for the modernization of our radio technology and increased inter-operability, it would remove staff from the business of radio network operations. The timing also fortunately aligns itself with inevitable capital equipment replacement projects - we have intentionally delayed portable radio replacements, in light of the possible transition to the Starcom21 network. For these reasons, staff recommends that the Village approve agreements in the amount of $2,338,676 over the next 10 years and a first year cost of $434,991 due May 1, 2016 with Motorola Solutions, Inc. to join the Starcom21 state-wide radio network and purchase the required equipment and services. Motorola Solutions, Inc. is the sole source for these product and services. Staff will be present at the Board of Trustees meeting on December 8, 2015, should any questions arise. Page 3
4 Resolution (ID # 3314) BE IT RESOLVED by the President and Board of Trustees of the Village of Northbrook, County of Cook and State of Illinois, THAT: A Resolution Approving Equipment, Service, Financing and User Agreements with Motorola Solutions, Inc. For StarCom21 Radio System Equipment and Service is hereby adopted, as follows: Section 1. Recitals. The Village currently is a member of NORCOM, a local public safety radio consortium. The Federal Communication Commission ( FCC ) is requiring that public safety agencies return the portion of the public radio spectrum used by NORCOM s existing equipment to the private sector. Converting NORCOM s infrastructure to a system that is compliant with the FCC s requirements would require a large investment in equipment and staff time. Starcom21 is the official, statewide public safety radio network of Illinois ( Network ). The Network is a Project 25 (P25) compliant 700/800 MHz IP-based radio system with over 270 radio tower sites. Motorola Solutions, Inc. of Schaumburg, IL ( Vendor ) has built and manages the Network throughout Illinois pursuant to a master contract with the State of Illinois. Communities that participate in the Network have access to the Vendor s existing 700/800 MHz trunked radio network. Joining the Network would allow the Village to access numerous Illinois mutual aid resources as the Network is used by the Illinois State Police, other state agencies, and several other local and county public safety agencies. The Village s Police Department staff has recommended purchasing portable radios and dispatch consoles that are compatible with the Starcom21 system for the purpose of integrating the Village s public safety radio communications into the Network pursuant to those certain Communications System Agreement, Equipment Lease-Purchase Agreement, Software User Agreement, and Starcom21 User Agreement provided by the Vendor (collectively, the Agreements ). The Agreements will allow the Village to purchase seventy-five Networkcompliant portable radios and five Network-compliant dispatch consoles, all of which will be delivered, configured, installed, maintained, repaired, and replaced by the Vendor pursuant to the Agreements. The Agreements allow the Village to pay for this equipment and services over a four year period with zero-percent interest, resulting in a not to exceed annual expenditure of $434,991. The Village s FY Capital Improvement Plan provides funds for the ongoing maintenance of the Village s public safety communications network. The President and Board of Trustees intend to appropriate this funding in the FY 2016/17 Approved Annual Budget, Account No (E911), as the first invoice will be received in that fiscal year. Page 1
5 The Village President and the Board of Trustees of have determined that it is in the best interests of the Village and its residents to enter into the Agreements with the Vendor. Section 2. Approval of Agreements. Manager. The Agreements are hereby approved in a form acceptable to the Village Section 3. Authorization. The Village President and the Village Clerk shall be and are hereby authorized and directed to execute the Agreements. Scheduled: 12/8/2015 ATTEST: Village President Village Clerk Page 2
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