The City’s existing 800 MHz radio system is nearing the end of its serviceable life and is due for replacement. In addition to providing critical radio communications for public safety and other City departments, a new radio system designed to digital P25 standards will enable the City to achieve interoperability with Yellowstone County’s radio system and other radio systems in the region. Additionally, the City’s current 9-1-1 telephone system is at an age where maintenance and service will become problematic. The general public’s use of technology devices has placed a demand on public safety communications to be able to accept and process the text and video that can be transmitted from cellular phones and computers. A new 9-1-1 telephone system designed to NextGen911 standards will allow the City to respond to the emerging technologies in the communications market. Lastly, a new digital logging recorder is necessary to preserve public safety telephone and radio traffic. The City advertised for bids on a Communications Suite to include a digital P25 radio system, a NextGen911 telephone system and a digital logging recorder.  Three bids were received.  Two bidders submitted bids for the entire Communications Suite (radio/9-1-1 telephone/recorder): Cassidian Communications ($2,147,000), and EF Johnson Incorporated ($1,888,000). One bidder elected to bid only the 9-1-1 Telephone component: Qwest Communications ($415,231).  Two bids were determined to be non-responsive to sections of the bid document.  Cassidian Communications met or exceeded all specifications outlined in the bid document.

The Council may: Award the contract for the P25 Digital Radio, NG9-1-1 Telephone System, and Digital Logging Recorder; or Reject all bids for P25 Digital Radio System, NG9-1-1 Telephone System, and Digital Logging Recorder.

The new radio and communication systems will cost $2,213,000, including interest, with payments over three years. Following is a breakdown of relevant costs per system.

	FY 12	FY13	FY 14	Total
911 System	168,364	155,645	103,763	427,772
Radio System	702,636	649,555	433,037	1,785,228
Total Payments	871,000	805,200	536,800	2,213,000

 
The 911 system will be paid for using 911 Fund revenues. Reserves from the Radio Fund will be used to reduce radio assessments to departments in all three years. The anticipated money from the landfill methane gas sales of $200,000 per year is used to reduce years FY 13 and 14 payments. Staff is recommending that the methane gas money be used to help purchase the radio system. Following is a breakdown of the remaining amount in payments.

	FY 12	FY 13	FY 14	Total
Public Safety Fund Payments	96,944	83,690	46,466	227,100
Other Departments	76,292	65,865	36,571	178,728
Total Payments	173,236	149,555	83,037	405,828

The Police Chief and the Fire Chief have agreed to reduce other expenditures in order to help pay for the new radio system from their existing budgets.

Staff recommends that Council award the contract to Cassidian Communications, Inc. for $2,147,000.