Transcript Presenters & Agenda - California Public

Harris Corporation
Overview
PSPC
Harris: How to Fund Your LMR System
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Presenters & Agenda
• Harris Inc. Overview:
– Rick Polehonka – Sales Manager
• Funding Strategies & Sources:
– Lee Connor – Grant Funding Manager
• Payment Terms & Financing Solutions:
– Ed Clemente – Finance Manager Bids & Proposals
• PNC Finance Overview:
– Russ Munson – PNC Finance
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Company overview
• International communications and information technology
company headquartered in Melbourne, Florida serving
government and commercial markets
– Publicly listed on NYSE (ticker: HRS)
– Approximately $6 billion annual revenue
– More than 16,000 employees located in 50 countries around the world
• Significant intellectual property and technology portfolio
– Workforce includes nearly 7,000 engineers and scientists
• Leader in design, deployment and operation of highly-reliable,
secure communications systems and information networks
for voice, data, imaging and video
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Diverse served markets
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RF Communications
Tactical Communications
U.S. Department
of Defense
International
• Tactical radio products and integrated systems
Public Safety &
Professional
Communications
• JTRS-approved; delivering the JTRS promise today
• Full range of Land Mobile Radio
products
• Leading the transformation from narrowband to
wideband networking
• Integrated IP-based
communications systems
• Tactical ISR products and applications
• Advanced 4G/LTE broadband
communications systems
• Communications Security products
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Financing Solutions for your
Investment in a Public Safety Network
May 2011
Lee Connor – Grant Funding Program
Manager
Ed Clemente – Finance Manager Bids &
Proposals
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Agenda
• Grant Funding Update
• Funding Strategies
• Harris Corporation Grant Funding Support
• Payment Terms /Financing Solutions
– Milestone Payments
– Leasing
– Public Private Partnerships (PPPs)
• Next Steps – Discussion/Questions
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Funding Update
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Topics
• 2011 SAFECOM:
Guidance on Emergency Communication Grants
• Grant Funding Update
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SAFECOM
http://www.safecomprogram.gov/SAFECOM/grant/default.htm
• The purpose of the FY 2011
SAFECOM Guidance is to provide
guidance to grantees on:
– Emergency communications activities that
can be funded through Federal grants
– Technical standards that facilitate
interoperability
– Recommendations for planning,
coordinating, and implementing
emergency communications projects
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SAFECOM:
http://www.safecomprogram.gov/SAFECOM/grant/default.htm
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2011 SAFECOM Guidance
• Narrowband Mandate
– “In the FY 2011 SAFECOM Guidance, grantees are
encouraged to allocate grant funds to plan and implement
activities that will ensure compliance with the Federal
Communications Commission (FCC) narrowband
mandate by the January 1, 2013, deadline.” (pg 4)
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2011 SAFECOM Guidance
• Consider Regional, Multi-Jurisdictional, Multi-Disciplinary
Projects
– Improve emergency communications across jurisdictions (e.g.,
across States, counties)
– Enables communication across jurisdictions, between disciplines,
and among all levels of government
– Expands coverage to unserved or underserved areas within or
beyond a region
– Links disparate systems
– Connects local systems and responders to regional or statewide
systems
“Regional projects (intra-State and/or inter-State projects that include more than one jurisdiction)
should promote wide area interoperability and not create new barriers between responders inside
and outside of the region. For example, grant funding should not advance a “proprietary-based
project” when an equivalent “open standards” solution exists”
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2011 SAFECOM Guidance
• Consider Broadband and Emerging Technologies
– Grantees should consider investments in broadband
planning and technologies* in order to continue to
move their jurisdiction toward greater interoperability
nationwide
*The FCC has advised grantees to ensure that investments in wireless broadband
networks are compliant with 3 GPP-Release 8 of the Long-Term Evolution (LTE)
standard, and have required grantees to provide information on how the investment
will achieve interoperability with other public safety networks, including a statement on
whether the interface is compliant with 3 GPP-Release 8 of the LTE standard.
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2011 SAFECOM Guidance
• Eligible Activities:
–
–
–
–
Planning
Training
Exercises
Equipment
Authorized Equipment List (AEL):
https://www.rkb.us/mel.cfm?subtypeid=549
• Conversion to Narrowband Equipment
– Replacing non-narrowband compliant equipment
– Acquiring/upgrading additional tower sites needed to comply with
narrowband conversion
– Reprogramming existing equipment to comply with narrowband
conversion
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SAFECOM Summary
• Acknowledges Narrowbanding Deadline
• Encouraging funding agencies to “allocate grant funds”
to narrowbanding projects
• Focus on regional interoperability projects
• Standard based & emerging technology solutions
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FY11 GRANT FUNDING
UPDATE
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FY 2011 Grant Update
• Budgets delayed – grants delayed
• Overall decrease in DHS & DOJ grants
• DHS grant consolidation
• Earmarks removed
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Grants for
Communications Equipment
Dept of Homeland Security (DHS)
Health & Human Services (HHS)
• Homeland Security Grant Program
-- State Homeland Security Program (SHSP)
-- Urban Area Security Initiative (USAI)
-- Operation Stonegarden Grants (OPSG)
-- Metropolitan Medical Response System (MMRS)
-- Citizen Corp Program (CCP)
• Hospital Preparedness Program
• Pandemic Influenza Preparedness and Response
• Rural Health Care Outreach Program
• Small Rural Hospital Improvement Program
Dept of Justice (DOJ)
• Infrastructure Protection Program
-- Transit Security Grant Program (TSGP)
-- Port Security Grant Program (PSGP)
-- Intercity Bus Security Grant Program (IBSGP)
-- Buffer Zone Protection Program (BZPP)
-- Freight Rail Security Grant Program (FRSGP)
• Preparedness Grants
-- Interoperability Emergency Communications Grant Program (IECGP)
-- Emergency Management Performance Grants (EMPG)
-- Emergency Operations Center Grant Program (EOCGP)
-- Regional Catastrophic Preparedness Grant Program (RCPGP)
-- REAL ID Systems Integration and Data Verification Grant Program
-- Assistance to Firefighters Program (AFG)
DOE
DOT
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FAA
19
FTA
TSA
• Community Oriented Policing Services (COPS)
-- Secure Our Schools
-- Tribal Resources Grant Program
-- Law Enforcement Technology
-- COPS Meth
• Byrne Memorial Grant Program (JAG)
-- Discretionary
-- Competitive
-- Formula
Dept of Agriculture (USDA)
• Broadband Grants and Loan Programs
• Distance Learning /Telemedicine Grants
ED
BIA
DOI
Major Communications Grants
FY2011 President’s Budget
Homeland Security Grant Programs
FY2011
President's
Budget
FY2010
FY2011
CR
April 2011
%
Budget Agreement Change
FY2012
President's
Budget
State Homeland Security Program
$842,000,000
$1,050,000,000
$890,000,000
$725,000,000
-19%
$1,000,000,000
Urban Area Security Initiative
$832,000,000
$1,100,000,000
$887,000,000
$725,000,000
-18%
$920,000,000
Operation Stonegarden Grant Program
$60,000,000
$0
$60,000,000
$55,000,000
-8%
$50,000,000
Metropolitan Medical Response System
$39,300,000
$0
$41,000,000
$35,000,000
-15%
$0
Citizen Corp Program
$12,400,000
$0
$13,000,000
$10,000,000
-23%
$13,000,000
$1,785,700,000
$2,150,000,000
• Awards made annually
• 36 month period of
performance
• Awarded to the State: SAA
• 80% Passed through to locals
• Grant guidance changes year
to year
$1,891,000,000 $1,550,000,000
-18% $1,983,000,000
• Allowable expenditures:
–
–
–
–
–
Planning
Overtime for Orange alert
Equipment
Training, Exercise
M&A
http://www.fema.gov/government/grant/hsgp/index.shtm
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Major Communications Grants
FY2011 President’s Budget
Preparedness Grant Program
FY2010
FY2011
President's
Budget
FY2011
CR
Port Security Grant Program
Transit Security Grant Program
Buffer Zone Protection Program
TSGP: Freight Rail Security Grant Program
TSGP: Intercity Passenger Rail (Amtrak)
TSGP: Intercity Bus Security Grant Program
TSGP: Trucking Security Program
Infrastructure Total
$288,000,000
$253,000,000
$48,000,000
$15,000,000
$20,000,000
$11,520,000
$0
$635,520,000
$300,000,000
$300,000,000
$50,000,000
$0
$0
$0
$0
$650,000,000
$300,000,000
$300,000,000
$50,000,000
$0
$0
$0
$0
$650,000,000
• Funded yearly
• 2- 3 yr period of performance
• Funds flow to fiduciary agents,
specific entities
• Matching requirements
• PSGP & TSGP received $300M
ARRA funds
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April 2011
Budget
Agreement
$250,000,000
$250,000,000
$0
$0
$0
$10,000,000
$0
$510,000,000
% Change
FY2012
President's
Budget
-17% $300,000,000
-17% $300,000,000
-100% $50,000,000
0%
$0
0%
$0
$0
$0
$0
-22% $650,000,000
• Allowable expenditures:
–
–
–
–
–
Planning
Equipment
Training
Exercise
M&A
http://www.fema.gov/government/grant/index.shtm
Major Communications Grants
FY2011 President’s Budget
Preparedness Grant Program
FY2010
FY2011
President's
Budget
FY2011
CR
April 2011
Budget
Agreement
Emergency Management Performance Grants
$329,800,000 $345,000,000 $340,000,000 $340,000,000
Assistance to Firefighters Grant
$560,000,000 $305,000,000 $405,000,000 $405,000,000
Emergency Operations Center Grant Program
$57,600,000
$0 $60,000,000 $15,000,000
Interoperable Emergency Communications Grant Program
$48,000,000
$0 $50,000,000
$0
Driver’s License Security Grant Program
$48,000,000
$0 $35,000,000
$0
Regional Catastrophic Preparedness Grant Program
$33,600,000
$0
$0
$0
UASI Nonprofit Security Grant Program
$19,000,000
$0
$0
$0
Tribal Homeland Security Grant Program
$10,000,000
$0
$0
$0
Various Preparedness Programs $1,106,000,000 $650,000,000
$890,000,000
$760,000,000
• AFG: Regional Communications
Project:
April 2011:
“Charlotte, NC accepted $2.1M
& approved a MOU with the
City of Gastonia related to the
regional communications grant”
http://www.fema.gov/firegrants/index.shtm
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%
Change
FY2012
President's
Budget
0% $345,000,000
0% $305,000,000
-75%
$0
-100%
$0
-100%
$0
0%
$0
0%
$0
0%
$0
-15% $650,000,000
• EOC
– FY10: $47M directed funding/
$10M competitive
– FY11: $15M competitive only!
• Consolidation of grant programs
– IECGP, Driver License,
RCPGP…
http://www.fema.gov/government/grant/eoc/index.shtm
Major Communications Grants
FY2011 President’s Budget
Byrne JAG Grants - Formula
$511,000,000
FY2011
President's
Budget
$512,000,000
$519,000,000
$480,000,000
Byrne JAG Grants - Discretionary*
$179,000,000
$0
$185,000,000
$0
-100%
$0
Byrne JAG Grants - Competitive
Byrne Criminal Justice Innovation Grant
$30,000,000
$30,000,000
$40,000,000
$0
-100%
$25,000,000
$20,000,000
$40,000,000
$40,000,000
$0
-100%
$20,000,000
Indian Assistance
$50,000,000
$25,000,000
$25,000,000
$40,000,000
$170,233,000
$0
$170,000,000
$0
$16,000,000
$16,000,000
$16,000,000
$13,000,000
-19%
$10,000,000
$976,233,000
$623,000,000
$995,000,000
$533,000,000
-46%
$574,000,000
DOJ
COPS Technology Grant*
COPS Secure Our Schools (SOS)
FY2010
JAG Programs
April 2011
%
Budget Agreement Change
COPS Programs
http://www.ojp.usdoj.gov/BJA/grant/jag.html
Harris: How to Fund Your LMR System
FY2011
CR
23
-8%
FY2012
President's
Budget
$519,000,000
60%
$0
-100%
$0
COPS SOS
Now OPEN!
Deadlines:
May 25th & June 8th
http://www.cops.usdoj.gov/Default.asp?Item=46
HHS & ED Grants
Hospital Preparedness Program (HPP)
$390,000,000
FY2011
President's
Budget
$390,000,000
Public Health Emergency Preparedness (PHEP)
$688,000,000
$1,078,000,000
Health & Human Services (HHS)
FY2010
$390,000,000
$390,000,000
0%
FY2012
President's
Budget
$353,400,000
$714,800,000
$714,843,000
$764,800,000
7%
$643,264,000
$1,104,800,000
$1,104,843,000
$1,154,800,000
5%
$996,664,000
FY2011
CR
• Interoperability communications is a priority
• Focus on Health IT projects
April 2011
%
Budget Agreement Change
PHEP Now OPEN!
Deadline: June 17th
http://www.cdc.gov/phpr/coopagreement.htm#phep_ca
Department of Education Grant Programs
Emergency Management for Higher Education (EMHE)
Readiness & Emergency Management for Schools (REMS)
FY2010
FY2011
President's
Budget
FY2011
CR*
April 2011
Budget
Agreement
$29,000,000 $29,000,000 $29,000,000
$9,000,000 $9,000,000 $9,000,000
$0 -100%
$9,000,000
0%
$29,000,000
$9,000,000
$38,000,000 $38,000,000 $38,000,000
$9,000,000
$38,000,000
• Focus on the four phases of emergency management:
– Prevention-Mitigation, Preparedness, Response, and Recovery
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FY2012
%
President's*
Change
Budget
-76%
Federal Transit Administration (FTA)
http://www.fta.dot.gov/funding/grants_financing_263.html
• FTA Overview
– 1 of 11 administrations within
U.S. DOT
– HQ in DC & 10 Regional
Offices
– Authorized thru SAFETEA-LU
(Safe, Accountable, Flexible,
Efficient Transportation Equity
Act: A Legacy for Users of
2005)
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– $10B combined formula &
discretionary grants
– Project Types:
• Buses
• Subways
• Light rail, commuter rail
• Streetcars, monorail
• Passenger ferry boats
• Inclined railways, people
movers
FUNDING YOUR
LMR SYSTEM
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Funding your LMR System
• Developing sound funding sources for a Land Mobile Radio
(LMR) system can be daunting. When approaching how to
fund your LMR system, it’s most effective when it
encompasses the entire life cycle of LMR.
• There are three main phases:
– Planning & Development
– Procurement & Installation
– Operations & Maintenance
• Each phase has a different funding profile or requirement.
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Fiscal Requirements
LMR: Fiscal Requirements
8 – 10 years Service of Life
Existing System
Fiscal Requirements
Planning &
Design
Procurement &
Installation
Operations & Maintenance
System Life Cycle
Source: Booz-Allen & Hamilton: Funding Strategies For Public Radio Communications (Oct 1998)
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Funding Sources
Planning
And Design
Federal
Procurement and
Installation
- Redirect Existing Financial
Resources
Operations and Maintenance
-Annual Appropriations
-Existing Financial Resources
-Federal Excise Tax
- Tower Space Leasing
-Asset Forfeiture
-Spectrum Lease Fees
State
- Redirect Existing Financial
Resources
-Right-of-Way Fees
Existing Financial Resources
-Utility Tax
- Tower Space Leasing
-Asset Forfeiture
-Surcharge Fees
-Federal Grants
Local
- Redirect Existing Financial
Resources
-Right-of-Way Fees
-Existing Financial Resources
-Utility Tax
-Tower Space Leasing
-Surcharge Fees
- Impact fees
-Asset Forfeiture
- Federal /State Grants
-Bonds
Source: Booz-Allen & Hamilton: Funding Strategies For Public Radio Communications (Oct 1998)
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Funding Strategies
• Planning and Design Phase
– Existing financial resources (CapEx/OpEx accounts)
Asset forfeiture
– PROS:
– Cons:
• No tax increases
• Funds can co directly to
Public Safety
Communications
• Excluded from budget
review
• There are intense
competition for funds
• They are not evenly
distributed
• May not provide adequate
revenue
Watonga, OK and purchase of portable radios
Feb 2011: The city approved the expenditure of $3,848 from the Drug Seizure Account to purchase
portable radios for the Police Department.
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Funding Strategies
• Installation and Procurement Phase
– The Federal government can leverage
• Annual appropriations
• Federal exercise tax
• Spectrum lease fees
– The State & Local governments can
• Issue bonds
• Impose right-of-way fees
• Utility tax/ surcharge fees
April 22, 2011: Lapeer County, MI
“The county approved the issuance of Capital Improvement Bonds in an amount not to exceed $14,475,000 for the purpose of
outdated analog radio equipment for Police, Fire and EMS with updated digital radio equipment and other equipment necessary
for the 911 Central Dispatch System to effectively provide and ensure 24x7 public safety communications service for citizens”
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Funding Strategies
• Operations and Maintenance Phase
– Federal, State and Local governments can
• Use existing financial resources
• Tower Leasing
• Impact Fees
• User Fees
Although cities
nationwide are
implementing
nonresident emergency
services fees, at least
10 states have outlawed
them.
States forbidding the fee
include:
Alabama, Arkansas,
Florida, Georgia,
Indiana, Louisiana,
Missouri, Oklahoma,
Pennsylvania and
Tennessee
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Funding Strategies
• Federal/State Grants
• Grant Pros
• Grant Cons
– Flexibility to create
programs
– Advances policy goals
– Encourages
coordination
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– Highly competitive with
no guarantee of award
– Have administrative
reporting requirements
– May require matching
funds
– May have political
hurtles
Funding Strategies
• When deploying a LMR systems focus on a multi-jurisdictional approach.
• WHY?
–
–
–
–
Allows leveraging economies of scale to reduce the cost to each participant.
Shared systems are developed as planned implementations
Management & control similar to other multi-agency or regional govt services
Costs can be equal share or prorated by relative population size, tax base,
geographic area or number of users
– Implementation financing based on proportional population or a percentage
of system infrastructure dedicated to each agency
– Operational & Maintenance financing based on number of users, numbers of
pieces of equipment, or actual system usage (airtime)
– Federal grants require a multi-jurisdictional, multi-agency approach
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Funding Strategies Conclusion
• It’s important to ensure fiscal requirements and sources for the life cycle
of the system.
• No matter what combination of funding sources, each agency must
develop funding strategies that provide sufficient revenue to support
each life cycle stage.
• Key stakeholders – senior level government officials, budget directors,
political representatives, and the public – need to be involved –
especially when the funding strategy is developed.
• The ability to secure funding to finance projects of this magnitude is one
of the greatest challenges facing Public Safety agencies
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Traditional Sources of Financing
• Grant Funding
• Bond issuance
• Extended Payment Terms during implementation
• Line up payment terms with Funding Stream
• Time Phased Implementation aligned with Funding
• Lease program (including tax exempt)
• Public Private Partnerships
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Payment Terms & Financing
Solutions
• Hurdles you may be facing:
– Partial Funding
– Budgetary Restraints
– Bonding Thresholds
• Aligning your Project Needs with available Funding
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Examples of Payment Flow
Land Mobile Radio System
A.
Payment Milestones ( 18 month project)
Item
Description
Value
Oct-11
6
Jan-12
9
Apr-12
12
Jul-12
15
$2,000,000 $2,000,000
1.2 Critical Design Review
$1,000,000
1.3 Hardware Staging
$2,000,000
$1,000,000 $1,000,000
1.4 Hardware Delivery
$2,000,000
$1,000,000
$1,000,000
1.5 Site Development / Site Improvements
$1,000,000
$500,000
$500,000
1.6 System Installation
$1,000,000
$1,000,000
1.7 Radio Delivery
$2,000,000
$1,000,000 $1,000,000
1.8 System Acceptance Testing
$1,000,000
$1,000,000
Oct-12
18
$1,000,000
$500,000
Monthly
Cummulative
$500,000
$2,000,000
$0 $1,000,000
$0 $1,000,000 $2,500,000
$12,500,000 $2,000,000 $2,000,000 $3,000,000 $3,000,000 $4,000,000 $6,500,000
$1,500,000 $2,000,000 $2,000,000
$500,000
$8,000,000 $10,000,000 $12,000,000 $12,500,000
Align Payments by Fiscal Year
By Fiscal Year
C.
Sep-11
5
1.1 Project Kickoff / Mobilization
1.9 Final System Acceptance
B.
Month ARO ( After Receipt of Contract)
May-11
Jun-11
Jul-11
Aug-11
1
2
3
4
Align Project Payments with Funding Stream
Propose project rollout into functioning
phases that align with annual budgets
Harris: How to Fund Your LMR System
$2,000,000
Phase 1
$4,000,000
38
+
$8,000,000
Phase 2
$4,000,000
+
Phase 3
$4,500,000
=
Total
$12,500,000
$2,500,000
Leasing Example
Lease Project Valued @ $12,500,000
5 Year Term
Rate
Monthly Payment ( in arrears)
Annual Payment ( in advance)
Amount
2.7% Fixed
2.5% fixed
$222,946
$2,515,646
3.25 Fixed
3.0% Fixed
$166,578
$1,803,616
3.5% Fixed
3.25% Fixed
$123,607
$1,268,695
7 Year Term
Monthly Payment ( in arrears)
Annual Payment ( in advance)
10 Year Term
Monthly Payment ( in arrears)
Annual Payment ( in advance)
* Indicative rates as of May 8, 2011
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Credit - Response Times
• Credit decisions are based on
– Type of borrower
– Credit Rating
– Transaction size
– Financial structure
– Existing exposure with the same customer
• The credit process starts with complete information
– Project scope
– Financial information
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Public Private Partnership ( PPP)
Venture ( LMR System) which is funded and operated through a
partnership of State and Private Company(ies).
Private Sector Consortium forms a Special Purpose Company to
build and maintain the asset.
A Building Contractor , Maintenance Company and Financial Firm.
Cons:
Pros:
• Technical Risk Lies with
• Available for Large Projects
Technical Experts
>$100M
• Capital Risk Lies with the
Financial Experts
• Extensive Terms and Conditions
• Service Risk Lies with the
Service Experts
• Long Term Relationship – 20 yrs
• Long Term Relationship – 20 yrs
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Project Financing Structure (PPP example)
Customer
Consortium
Partners/ single
company
Harris: How to Fund Your LMR System
Project
Company
Assets
Equity
Dividend
Senior Secured Debt
Debt Service
Build
Operations
3 Yr Build-out
15 Yr Operations &
Maintenance
Sub-Contractors
Sub-Contractors
42
Banks
Summary
• We at the Harris Corporation are willing to discuss Project Financing to
meet your needs. There are financing sources and payment methods
that we are able to discuss that may be available to meet your needs.
• Grant Funding Support is available
• Should you wish further information regarding the Project Financing
Options, Please feel free to contact us.
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Contact Information
• Contact your Harris team to learn more:
– Your Local Harris representative: www.harris.com
– Bank Financing/Leasing: Ed Clemente
([email protected])
– Grant Funding Program Office: Lee Connor
([email protected])
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Presented by:
Russ Munson, Vice President
Technology Finance Division
May 19, 2011
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PNC Financial Services Group
•
Headquartered in Pittsburgh, PA, with assets of $ 280 Billion PNC Financial Services is
the 5th largest commercial bank in the United States
•
PNC enjoys the strongest Tier 1 capitalization of any peer bank
•
Moody's, Standard & Poors and Fitch rates PNC at A3 or A+
•
PNC’s municipal leasing and public finance groups are leaders in financing for city, state
and county governments and non-profit agencies
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PNC Financial Services Group
•
Headquartered in Pittsburgh, PA, with assets of $ 280 Billion PNC Financial Services is
the 5th largest commercial bank in the United States
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PNC enjoys the strongest Tier 1 capitalization of any peer bank
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Moody's, Standard & Poors and Fitch rates PNC at A3 or A+
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PNC’s municipal leasing and public finance groups are leaders in financing for city, state
and county governments and non-profit agencies
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PNCEF – Russ Munson
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Vice President, PNCEF Equipment Finance, since 2005
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Located at West Region office
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19671 Beach Blvd, 3rd Floor
Huntington Beach, CA 92648
800 607 9830 ( Office )
714 267 7603 ( Mobile )
[email protected]
30+ year career: equipment finance & vendor financing programs
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Why PNC Equipment Finance?
• Strong balance sheet - deep pockets - low cost of funds
• Will fund $ 1.2 Billion in equipment financing for municipalities in 2011
• Flexible & customized deal structuring, with ability to respond quickly
• HARRIS program relationship since 2006
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Municipal Finance Nuts & Bolts
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Terms from 12 months to 15 years
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Payments can be structured: Monthly, Quarterly, Semi-Annually or Annually
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Commercial and municipal rates for transactions are matched “rate-to-risk”
and based on current cost of funds, transaction size, term, credit quality and
other factors:
– Tax-exempt rates for investment grade credits currently range from 1.5% to 3.9%
– Tax-exempt rates for non-investment grade credits currently range from 2% to 5%
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A municipal lease-purchase creates a series of annual appropriations (12
months at a time )
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Benefits to City, State & County
governments
• No down payment. 100% Financing preserves liquidity.
• No “debt”. Payments are based on annual appropriation.
• Offers an operating budget solution at a time of budget restraint.
• A fiscal management tool that addresses future budget
uncertainty
• Purchase at end of term for $1.00.
• Customized financing can be arranged to fit your unique
situation.
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TYPICAL TRANSACTION
( based on current costs )
Example Amount: - $ 5,000,000
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Term - 84 Months
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Structure – Municipal Lease Purchase
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Down payment – none
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Rate 2.7% fixed ( 7-years )
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Monthly Payment - $ 65,392
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End of term purchase - $ 1.00
Budget appropriation required, if purchased: $ 5,000,000
Annual budget appropriation, if financed:
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$ 784,711
PNCEF
Recent Tax Exempt Transactions
$ 28,000,000
$ 18,000,000
$ 2,434,685
$ 5,879,131
TAX-EXEMPT MUNI LEASE
TAX-EXEMPT MUNI LEASE
Energy Retrofit Project
TAX-EXEMPT LEASE
Scoreboard Controls
TAXABLE MUNI LEASE
University of Illinois
State of Maryland
Energy Project
State of Maryland
$ 8,400,000
$ 8,200,000
$ 11,300,000
$ 9,600,000
TAX-EXEMPT MUNI LEASE
TAX-EXEMPT MUNI LEASE
TAX-EXEMPT MUNI LEASE
TAX-EXEMPT MUNI LEASE
Hauling Equipment
City of San Antonio
Fire Trucks
California City
Fire Trucks & Equipment
Sacramento, Ca
$ 51,000,000
$ 24,000,000
$ 2,400,000
TAX-EXEMPT LEASE
Building Project
Cleveland State Univ.
TAX-EXEMPT MUNI
Commercial Vehicles
Maryland County
TAX-EXEMPT LEASE
Fire Safety Equipment
Reno, NV
Vehicles
City of Philadelphia
Energy Project
State of Colorado
$1,150,000
TAX-EXEMPT LEASE
Police Cars
Indiana
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