Funding
The public/private partnership for the Statewide Law Enforcement Radio System (SLERS) has a unique funding strategy. For providing the services in the contract, M/A-COM was paid a $40 million advance payment. In addition, the company receives the ongoing proceeds from a motor vehicle and vessel registration surcharge (approximately $15-$18 million annually) less certain stipulated expenses incurred by the State. This revenue stream to M/A-COM provides the system infrastructure (towers, antennas, system equipment, system maintenance, radio consoles for dispatch) and 800 MHz service.
In return for the conveyance of various State tower and tower site assets, M/A-COM extended $25.5 million in credits to the State for radios and accessories. In addition to these credits, M/A-COM provided credits equal to like-for-like replacements for 6,000 radios formerly used by the State.
The M/A-COM contract provides for revenue sharing in two ways:
- For the initial term of the contract (20 years), the State receives 15% of all net revenues received from third-party tenants on towers conveyed to M/A-COM from the State. After the initial term, the State receives 50% of all net revenues received from third-party tenants on towers conveyed to M/A-COM from the State for an additional 30 years.
- For any third-party subscribers of the radio system, the State receives 5% of the gross revenue.
Joint Task Force agencies must provide radios for their users and the remaining dispatch center facilities, equipment, and expenses. There is no charge to the Joint Task Force agencies for use of the system.