Daniels County presses for legal review after state-Motorola deal raises ownership, loan questions

Daniels County commissioners on April 21 delayed finalizing paperwork tied to a discounted radio dispatch console deal after a consultant and state officials described overlapping contracts that may leave the county exposed.

The issue centers on a package of Motorola MCC dispatch consoles the state offered to repurpose and upgrade for several counties at a steep discount. County representatives learned the state27s interlocal agreement describes the Department of Justice (DOJ) or state as the owner of certain console components so the state can legally cover future software and system upgrades under the statewide SUA, while the county27s purchase/financing paperwork with Motorola treats the county as purchaser and loan obligor.

"We need our attorney to look at this," County Attorney Logan Olsen said, urging a written review of both the Motorola financing documents and the state interlocal agreement before any signature. Commissioners raised a specific concern: if Daniels County encumbers the upgraded consoles as collateral for a Motorola loan and concurrently signs an agreement saying the state owns some elements, the county could face unintended loan or warranty consequences.

A consultant who assisted the county, identified in the meeting as Brian (Red Tail), and Motorola representatives laid out the numbers and the rationale for the language. According to participants, the original state-owned consoles were several years old and, when sent to Motorola for repurposing, required upgrades. Motorola credited part of the list price (state trade-in/credit) and the result produced an approximate net cost of roughly $76,000 for two consoles after credits and discounts. County participants confirmed Daniels County would finance the remaining balance.

A state official on the line, identified as Mike, told commissioners the state had written the interlocal to enable the SUA-funded upgrade and to allow the state to include console maintenance in its future upgrade cycles. He also said the state would accept written change requests and that the county should involve its attorney. "If there's something specific the county wants changed, put it in writing and we can start that process," Mike said during the call.

Commissioners asked that the county attorney set a follow-up call with Motorola and the state's legal staff (DOJ general counsel was suggested in the meeting) so all parties could align on whether the county27s loan collateral and the state27s ownership language are compatible and whether Motorola would treat a signed interlocal as a loan-acceleration trigger. The county emphasized it must avoid exposing taxpayers to accelerated loan payments or a loss of collateral.

Next steps agreed in the meeting included: the county attorney27s immediate review of both the Motorola financing documents and the draft interlocal agreement; a joint conference call among Daniels County, Motorola and the state attorney27s office to resolve language; and written requests from the county to the state for any desired contract modifications. Participants said the county would not sign the interlocal until those questions were resolved.

The commissioners recorded requests to document the county27s concerns in writing and to secure written confirmation from Motorola that any state ownership language would not create an immediate default or acceleration of the Motorola loan. The meeting closed this segment with a plan to reconvene via scheduled calls.

What comes next: Daniels County will have its attorney review the contracts and coordinate the proposed tri-party call. Commissioners said they want written clarifications before authorizing any county signatures that could affect loan collateral or warranty rights.