CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: May 13, 2009
SUBJECT/TITLE: Approval to Accept Rebanding Funds From Sprint/Nextel
TARGET ISSUE: N/A

STATEMENT OF ISSUE

Staff has been engaged in an FCC-mandated 800MHz reconfiguration process, which is intended to make frequencies currently used by the 800 MHz System available to Sprint/Nextel, make other replacement frequencies available to the City for operation of that system, and to reband the 800 MHz System to operate on those replacement frequencies. The reasonable costs of such rebanding are to be borne by Sprint/Nextel. Staff has reached agreement with Sprint/Nextel with respect to payment of such costs and is recommending approval of that settlement by the Commission. Staff is further requesting authorization for the City Manager, or her designee, to sign any agreements or other documents reasonably required to effect that settlement and to close the rebanding process.

RECOMMENDED ACTION

Option 1 – Approve the settlement with Sprint/Nextel in the amount of $2,941,165, authorize payment to SAIC, SGRPE and Motorola, and authorize the City Manager, or her designee, to execute all agreements and documents required to effect that settlement and to close the rebanding process.

FISCAL IMPACT

The settlement with Sprint/Nextel will result in a net positive monetary benefit to the City in the amount of $862,209.

Don DeLoach, Chief Information Systems Officer

Anita Favors Thompson, City Manager

For information, please contact: Don DeLoach 891-8402

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES

Pursuant to a mandate by the Federal Communications Commission ("FCC"), staff has been engaged in an 800 MHz Radio System reconfiguration process, which is intended to make frequencies currently used by the 800 MHz System available to Sprint/Nextel, to make other replacement frequencies available to the City for operation of that system, and to reband the 800 MHz System to operate on those replacement frequencies. The FCC has required Sprint/Nextel to bear the reasonable costs of rebanding the current system. This same process is going forward with respect to such systems operated by other licensees.

On December 12, 2007, the City Commission approved staff’s recommendation to combine the 800MHz Digital Upgrade Project with the FCC-mandated rebanding project. The combining of the two projects was intended to save the City and County, as owners of the 800MHz System, time and money. Rather than rebanding the existing analog system and then upgrading that system, the upgraded digital system is being initially configured to operate on the replacement frequencies.

Staff, assisted by its technical consultant Science Applications International Corporation ("SAIC") and special legal consultant Shulman, Rogers, Gandal, Pordy, and Ecker, PA. ("SRGPE"), has been working through the rebanding process, including negotiations with Sprint/Nextel regarding the reasonable cost of rebanding. As a result of this process, staff and Srpint/Nextel have agreed to a settlement with respect to costs that would have been incurred in rebanding the current 800 MHz System in the amount of $2,941,165. Some of that amount will be paid to the consultants and some will be paid to Motorola for equipment and services that will directly benefit the digital upgrade project. The net amount, approximately $1,437,016, will be divided between the owners, $864,209 to the City and $574,806 to the County.

Staff is recommending Commission approval of the settlement amount, authorization to make payments as required to the consultants and to Motorola, and authorization for the City Manager to execute all agreements and documents required to effect the settlement and to close the rebanding process.

CHARITABLE CONTRIBUTIONS

N/A.

OPTIONS

1. Approve the settlement with Sprint/Nextel in the amount of $2,941,165, authorize payment to SAIC, SGRPE and Motorola, and authorize the City Manager, or her designee, to execute all agreements and documents required to effect that settlement and to close the rebanding process.

Pros:
a. The owners of the 800MHz system will receive a net payment exceeding $1.4 million.
b. The Owners will receive new 800MHz frequencies sooner enabling the Digital Upgrade project to stay on track.

Cons:
a. By not proceeding with the settlement, the owners will incur additional costs that will not be reimburseable under the rebanding project, may receive less than is contemplated by the negotiated settlement, and will delay implementation of the upgraded digital system.

2. Provide Alternative direction to staff.

ATTACHMENTS/REFERENCES