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OK so it was probably dismissed in favor of trunking but it still lists the same frequencies.....
No, the wording of the letter does not in any way indicate the planned use of encryption. To further that, the mention of "phase 1" and "phase 2" do not mean they are going to use a P25 Phase 1 or P25 Phase 2 system. The word phase has many different contexts, as does the word secure.
I really don't understand why they are hell bent on running with their own systems, vs using the state system. Do they really have that many employee's/radios to make it more cost effective?
Cost effectiveness is never the sole factor when new systems are built, there are many folks out there who does not like sharing infrastructure and like to own their own toys.