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City Council Regular
Meeting Date: 12/04/2018  
Subject:    Consider Approval of Purchase of Police/Fire Radios
From: Sharon Legg, Finance Director

City staff is seeking Council approval to purchase radios for police and fire.
The 2019 Budget includes funds for the purchase of radios for police and fire personnel.  The City would order the radios through Anoka County from Motorola Solutions, the sole provider of this product and also on the state purchasing contract. To achieve a higher trade in value on the old radios, the purchase needs to be placed before December 15.  The radios wouldn't arrive before the end of the year, however, so would be charged against the 2019 budget as planned. 

The radios being replaced will no longer be serviced after January 1, 2019.  They were bought in 2004, which has more than exceeded their life expectancy.  More importantly, the new radios will have the capability of communicating with encripted radios used by surrounding jurisdictions.  Most all of the other jusrisdictions have already purchased and are using the newer type of radio. 

In the budget, the financing of the radios was anticipated to be an internal loan, repaid with a tax levy over five years.  The first of the levies ($186,000) was included in the preliminary 2019 tax levy in the Capital Equipment Fund. Given the decreased amount of the purchase, the amount of the levy can be adjusted downward in the next four years.

The budget included $538,448 for police radios and $377,384 for fire radios.  The actual amount of the requested purchases are $540,325 for police and $165,585 for fire.  Fewer fire radios are being purchased than originally anticipated because some trucks will not have mounted radios in them.  Rather, personnel will rely on their handhelds.  Trade in allowances of $70,000 and $22,500 will reduce the purchase cost.  Of the total trade in allowance, $18,500 of it is due to the city ordering before December 15. 
Staff recommends the City Council approve:
1.  The purchase of radios for police/fire in the amount of $613,410 net of the trade in allowance.
2.  An internal loan to be repaid over five years in the amount of $613,410.

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