HomeMy WebLinkAboutIR 8873INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8873
To the Mayor and Members of the City Council Date: September 18, 2007
Page 1
SUBJECT: Consideration of the Tarrant County 9 -1 -1 District Budget for
FY2007- 2008
Please find attached a copy of the Tarrant County 9 -1 -1 District Operating Budget for Fiscal
Year 2007 -08 and a Resolution for consideration and approval at the City Council meeting on
September 25, 2007.
Mr. Greg Petrey, Executive Director of the Tarrant County 9 -1 -1 District, will be available to
respond to any questions at Pre - Council on September 18, 2007, and again on September 25,
2007, at your regular Council Meeting.
Staff recommends the City Council approve the attached Resolution and District Budget. If you
have any qu ns, please contact Joe Paniagua at 817 - 392 -6191.
C rl s sw I
Ci nag
ISSUED BY THE CITY MANAGER
C IT Y S El-'rCr-
FORT'VVORTH, TX
FORT WORTH, TEXAS
Prepared
Greg Petrey, Executive Director
Tal rant bounty 9- - District,
1
ir ;�;�Iir 111i,
Executive Summary
This year's budget process was very unique for several reasons. First, wireless revenues continue
to grow at an accelerated rate. Wireless service fee revenue now represents over 68% of total
income. Ironically, wireless 9-1-1 call volume for the month of June 2007, was 68.97%,
In 094 aff rol M 0 1 H
Third, the District is implementing a Continuity • Operations (COOP) Plan to facilitate Continuity of
Government in case of natural or man-made disaster. We have budgeted $100,000 to provide
back-up computer and contingency operations to support our member entities,
001§0111110FERM •
The establishment of the Tarrant County 9 -1 -1 District was authorized by the State Legislature and
ratified by voters in 1985 for the purpose of implementing and maintaining an Enhanced 9-1-1
emergency call network for residents of the District. Service was established in August 1987.
District boundaries include all of Tarrant County, all areas outside Tarrant County included in the
corporate limits of a member city, plus DFW Airport and the City of Irving.
District Management
As defined in the legislation, the District is governed by a Board of Managers, who appoints an
Executive Director. Current board members and their appointing authority include:
2
An excess of revenues over expenditures in 2006-2007 will result in an increase in reserve funds
• just over $2,000,000 by the end • the fiscal year September 30, 2007. It is estimated that
revenues will exceed expenditures in 2007-2008 by $557,000, leaving an estimated $11.3 million
remaining in reserve funds at the close of the year.
Currently, a push is underway among the larger districts in the state to implement "Next
Generation" 9-1-1 (NG9-1-1) services, which recognizes the growing number of callers, both
residential and commercial, that have switched their phone service completely to internet-based
services. The first phase of this project, the verification database and emergency services routing
database are scheduled for completion early next year.
Limitations of the current network and database platforms were exposed when wireless callers
were added to the 9-1-1 network over the past 15 years. The communications industry (both
wireline and wireless) is moving rapidly from circuit switched technology to Voice over Internet
AM Protocol (VoIP). It is widely accepted that the existing circuit switched network and database of
static ALI and selective routing records will not be able to support VoIP.
A next generation Request for Information (RFI) has been issued by the districts in Texas, acting
jointly as The Texas 9-1-1 Alliance, and a Request for Proposal (RFP) for services will follow. It is
anticipated that the Next Generation program will not impact the Tarrant County 9-1 -1 District
budget until the 2008-09 fiscal year. It is also anticipated that upgrades to answering center
equipment will not begin following the completion of the current upgrades until the 2009-2010 fiscal
year,
3
During the past three fiscal years, the landline revenues have declined at a rate of about 1% per
year, most likely the result of conversion by customers to wireless-only service, partially offset by
the overall healthy economic growth of most areas of the District. The 2004-2005 year, however,
saw more dramatic decreases in landline revenues, obviously the result of more substantial
movement
• voice over net services. This decline appears to be stabilizing,
Wireless revenues continue to experience a healthy increase, and this trend is projected into the
future. Whereas wireless surcharges seem relatively new, having been adopted in 1997, for the
past five years they have surpassed landline revenues and the margin between the two forms of
revenue continues to increase.
The Federal Communications Commission has taken an activist approach to voice over net
companies, and has ordered them to be 9-1-1 compatible. The National Emergency Number
Association will continue to monitor events and represent public safety in hearings and meetings
with commissioners, and push for revenue recovery from voice over net companies. How much
and when this recovery might be expected is subject to speculation at this time. In 2006, Vonage
began remitting service fees. Other carriers are expected to begin collecting and remitting fees in
the near future.
Revenues
$750.000
$-100,000
$650,000
$600,000
$550,000
$500,000
$450000
$400,000
$350,000
$300.000
$250,000
$200,000
$150,00o
$100,000
$50,000
M
MAN
June 30, 2005 to June 30, 2007
11
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o
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and"
4
Expenditures
The 2002 upgrade program has been completed at all centers with the exception of Arlington and
Fort Worth, The two largest answering points have been deferred pending resolution of operability
issues involving automated call distributor (ACD's). This deferred installation accounts for about
$3,000,000 of the District's reserve fund.
Salary costs for 2006-2007 were lower than budgeted, due to a vacancy that remains unfilled and
a decrease in health insurance premium.
Anticipated software purchases have again been deferred until software problems are rectified by
AT&T or the call center equipment provider.
The following are highlights for expenditures for the 2007-08 fiscal year:
An allowance of 4% for merit raises is included, based upon recommendations by District
compensation consultant.
Expenditures for "Enhancements" include adds, moves and changes for our member
cities PSAP's and the addition of an experimental regional back-up PSAP.
5
2006-2007
2006-2007
2007-2008
BUDGET
ESTIMATED
BUDGET
Revenue
$10,244,305
$11,406,628
$11,8397734
Expenditures
Personal Services
$1,577580
$1,392,213
$1,673,932
Supplies/Materials
$91,900
$86,220
$157,315
Furniture/Equipment
$61,000
$57,522
$356,650
Services/Rentals
$8,502,009
$7,579,479
$9,094,581
Total Expenditures
$10,232.4892
$9,115.4=34
$11282,478
Operating Surplus (Deficit)
$11.816
$2,291,194
$557,256
5
a compensation consultant. In addition to the compensation "bands" that were originally
developed, the consultant provides an annual recommendation for adjustment to the bands and
overall allowance for merit increases, based upon recent market data.
For the 2007-08 fiscal year, the consultant recommends an adjustment to the pay bands within th'?
compensation schedule of 2% and an overall allowance for merit raises of 4%,
The District selected Principal as its health benefits provider for the July 1, 2007 - June 30, 2008
timeframe. The selection of a plan which increases employee deductibles allows the District to
reduce total premiums by about 1 .5%. Overall employee insurance increased by about 3% due to
increases in dental and vision coverage.
5110
Salaries
$1,221,198
5120
Health Insurance
$254,207
5130
Retirement Benefits
$168,622
5132
Medicare
$18,527
5133
Social Security
$1,378
5150
Worker's Comp
$10,000
Total Personal Services
$1,673,932
Supplies and Materials
Expenditures in this budget category provide for purchase of expendable office supplies, postage,
software, and reference materials.
5210
Office Supplies (Other Supplies)
$32,000
5220
Printing
$4,200
5230
Postage
$2,400
5240
Maps and Materials - Data
$12,315
5250
Software
$1061400
Total Supplies and Materials
$157,315
Furniture and Equipment
Office equipment funding includes replacement equipment, such as PC's, a server, firewall, printer,
scanner, blackberry's and COOP plan hardware. The replacement of many computer related items
have been delayed unt'livve move into our new headquarters.
Expansions and upgrades to GIS hardware are funded in the amount of $95,000,
5310 Office Furniture $2.2,600
5311 PSAP Furniture $4,000
5320 Office rEquipment $330350
5321 PSAAP Eawpment $0
Total Furniture and $356650
I
Services and Rentals
r
Legal services will not increase from the current year. The District retains legal services from Jim
Hobson, Washington, for filing and interface with the FCC. In addition, the District utilizes Mike
Torril of Vinson and Elkins, for negotiation with service providers, both wireless and landline, and
for contractual discussions. The districts who are members of the Texas 9-1-1 Alliance share the
cost of Richard Muscat for representation in Austin. Locally, the firm of Taylor, Olson, Adkins,
Sralla, and Elam provides advisory services to the director and the board.
"Other services" includes all consultant agreements and services. Language Line, which the
District subscribes to for and on behalf of all PSAP entities, allows call-takers to transfer
non-English-speaking callers to an appropriate interpreter.
The District has also agreed to participate in a program with the Tarrant Appraisal District to
participate in a product called Pictometry, which enhances the capabilities of aerial photography to
provide a better, more useful product for public safety. The District's portion of the costs for
2007-2008 will be $125,000, and it is included in "Other Services."
The District also purchases data files and comparisons from the telco under the "Other Services"
category, as well as consulting services ranging from political advisory services to network
services.
• I I i I ili Ili I' I I I I I'! Mililiffli'l 1111 ; I I • I I � 1� i 11 i A 1 A
Expenditures under Utilities, 9-1 -1 Service, include monthly recurring charges for existing custom
premise equipment and services. 9-1-1 Enhancements provides for additional upgrades and
installations to be funded during the 2007-2008 year, and Wireless Costs provides funding for
monthly recurring charges for wireless 9-1-1 service from three wireless companies.
5411
Legal
80,000
5412
Professional Audit
8,000
5414
Equipment Maintenance
14,890
5415
Contract & Other Services
735,748
5416
Professional Development/Training
64,930
5418
Building Improvements — Repairs
164,720
5419
Building Utilities
103,600
Total Contractual Services
$1,171,888
5421
Office Lease
$110;997
5422
Equipment Lease
$3,562
Total Lease Payments
$114,559
5431 Auto Allowance $51,000
5432 Travel/Restaurant $98,700
Total Travel and Auto $149,700
5441 Professional Memberships $6.689
5442 Sudan ri0ions $11,016
Tic al Mem!,7,erships and Subscriptions $"-"705
5451
Office Telephone
$24,000
5452
9-1-1 Telephone Service
$4,334,000
5453
9-1-1 Enhancements
$2,211,000
5454
PS 9-1-1 Service
$19,800
5456
Wireless 9 -1 -1 Service
$741,517
Total Utilities
$7,330,317
5460 Insurance $62,712
Total Insurance $62,712
5472 Pub. Ed. Prod ucts/Services $73,610
5473 Pub. Ed. Printing $77,590
5474 Pub, Ed. Activities $96,500
Total Advertising $247,700
Total Expenses $11,282,478
Reserve Gain (Loss) $557,256
M
District fund balances are divided into two "funds." The first is a "Contingency Reserve Funcm
which allows for meeting unanticipated needs and is set at $500,000. 1
The second reserve category is "Reserve for Enhancements which provides for investment in the
next generation of system improvements. While the cost of the next generation is unknown at this
time, it is essential to the future of 9-1-1 service in the District to prepare for the non-recurring costs
that are likely to begin within the next three to four years. Given completion of the current upgrade
program, the reserves for enhancement should be adequate.
Projected Fund Balance, September 30, 2006 $10,743,074
Projected surplus (deficit), 2006-2007 $557,256
Projected Fund Balance, September 30, 2007 $11,300,33#
Required Reserve $500,000
2008-2009 ($744,821)
2009-2010 (Next generation upgrade, Phase 1) $4,057,935
2010-2011 (Next generation upgrade, Phase 2) $4,144,951
2011-2012 (Next generation upgrade, Phase 3) $4,239,929
2012-2013 $0
Unrestricted Reserve Fund Balance ($897,663)
I
ZEO��� t =i
MAINTAIN Tarrant County 9-1-1 District high profile in state and national arenas in order to
provide a voice to member entities in matters affecting 9-1-1 call delivery.
Continue to provide comment on all PLIC and FCC proceedings affecting this District and
its constituents.
Staff monitors regulatory proceedings and during the FY07 performance period were
instrumental in providing comments that were filed • a collaborative basis through
the Texas 9-1-1 Alliance at the FCC, PUC, and CSEC in matters related to VolP,
wireless, and NG9-1-1. Staff also provided expertise in support of exparte meetings
the Alliance's federal regulatory advocate had with FCC staff and chairman Martin.
Z Continue leadership roles in industry associations and committees.
✓ Wanda McCarley,. President — APCO International.
✓ Richard Atkins, NENA Standards and NG9-1-1 Committees.
v' Bill Home, NENA Standards, ESIF and NG9- 1-1 Committees.
✓ Kevin Kleck, NENA Standards and NG9-1-1 Committees.
✓ Greg Petrey, Secretary and Webmaster— Texas 9-1-1 Alliance.
✓ Yui Skulpoonkitti, North Texas GIS Coordinating Council and Tarrant County
College GIS Advisory Board.
✓ Alisa Simmons, NENA Public Education Committee.
1 Continue to provide expert testimony to State and Federal Legislative bodies, as needed.
Staff monitors legislative proceedings and during the FY07 performance period were
instrumental in drafting comments and expertise in support of legislative contacts
made by the District's legislative advocate. Staff involvement in industry association
committees also provided opportunities to provide District input on filings made by
NENA and APCO at the national level.
FdTfm-r rn-et
eliminate down time due to service interruptions.
Z Test contingency plan at least annually.
The contingency plan has been reviewed and updated as needed, A "table top'' test
of the contingency plan has also been completed. A full scale test will be planned in
FY 2008 in con unction with the Tarrant County Local Emergency Planning
Cornmittee's joint disaster exercise,
1 imple ment, test and evaluate trial ``regional" back-up s ite(s),
The District is currently negotiating with the County for IVVO sites for Regional back-up
PSAP's. The District has also made a proposal to the City of North Richland Hills for
a site for a NE Regional back-up PSAP,
4, Test all existing back-up sites at least once.
A111 endsting back-tjp sites have been or vid/ be tested by the end of t.he fiszcal year
N
5 Continue evaluation and preparation for next generation system.
The District is participating in all available forums to prepare for the next generation
of9-1-1systems. The Technicall0perations Advisory Committee was formed in
2005 to assist in this process. A Next Generation 9-1-1 working group was formed
late 2006 to further evaluate NG9-1-1 equipment and services. I
MAINTAIN strong outreach programs to educate public, public officials, and PSAP
personnel on 9-1-1 related issues.
Maintain and expand District website with public information as well as secure sites for
PSAPs and Providers.
Our website is now maintained by district staff and updates are now provided on a
timelier basis. The PSAP and Telco portions of the site will be expanded in the near
future. A complete redesign of the website is being planned.
2. Publish and expand District Newsletter at least quarterly.
The district newsletter was published three times this year.
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4. Evaluate and implement an expanded training program utilizing; internal, external and
contract trainers.
A Our entire training program is currently under review.
ry
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5. Explore the use of on-line training and/or training video/CD.
This option of training is still under review.
& Maintain media interest in public recognition of telecommunicators and civilian "heroes"
provide total coverage of all events.
Once again, the District had a local child presented a national award for quick actio
which saved a parents'life. Alisa Simmons monitors all media activity and acts as
the district PIO. I
HEM=
Continue to monitor database on a daily basis and report findings monthly.
Bill Home, district Database Manager, monitors, the database on a daily basis and
publishes a °'snapshot" on the Dishnict website,
2, Continue to encourage submission of 911 B error report forms by PSAP personnel.
Strong emphasis: has been placed on error reporting.
3, Maintain on-going emphasis in reducing Record Not Found database returns.
Unhortunate/y, with the introduction of new technologies such as VoIP and new
wireless carders, total P.,`II have actual incrreased. District staff conifinues to
nryoniltor toral FRNIF qiuefies and adc ss hn-d-,'Widual situations.
4. Continue effo-fts to 'clean' f[he dala-base of unnecessary rec.� -r s and dupliCates.
111711111 X11 211 1111
I
5. Implement VDI3/E:RDI3 to enhance the routing and location accuracy on 9-1-1 calls frorr
users of Internet phone services (VoIP).
IMPROVE the quality of location data from wireless phone providers for callers utilizing
wireless devices to summon emergency assistance through 9-1-1.
Continue Phase 11 wireless testing.
Document.
Provide individual report to each wireless carrier.
Publish report on this testing (print and website),
RaM-i one i i # �te-atxfteoortett
2. Continually "retest" to validate original data and report findings.
Batch two of wireless testing is ongoing and shows improvement in accuracy.
12
M
i TZT41 M • WA n EWE I I rq M
Continue to provide comment • all PUC and FCC proceedings affecting this District and
its constituents. File comments • the NPRIVI to the FCC to assure that wireless
accuracy requirements are increased to reflect the growing number of 9-1-1 calls from
wireless phones.
Z Continue leadership roles in industry associations and committees.
• Wanda McCarley, Immediate Past-President — APCO International
• Richard Atkins, NENA Standards and NG9-1-1 Committees
• Bill Horne, NENA Standards, ESIF and NG9-1-1 Committees
Kevin Kleck, NENA Standards and NG9-1-1 Committees
* Greg Petrey, Secretary and Webmaster — Texas 9-1 -1 Alliance
* Yui Skulpoonkitti, North Texas GIS Coordinating Council and Tarrant County
College GIS Advisory Board
* Alisa Simmons, NENA Public Education Committee
Tery MUMMA or enifire • r
eliminate down time due to service interruptions.
2. Test contingency plan at least annually.
MUM=
4 Test all existing back-up sites at least once.
5 Continue evaluation and preparation for next generation system by continuing Technical
Operations Advisory Committee meetings each quarter and the NG9-1-1 Working Grou�
meetings every 6 months,
MAINTAIN strong outreach programs to educate public, public officials, and PSAP
personnel on 9-1-1 related issues,
Maintain and expand District website with public infornn-ation as well as secure sites foor
PSAPs and Providers.
2, Publish and expand District Newsletter at least quarterly.
1 Publish an Annual Report, of District activities and accomplishments.
W
4. Evaluate and implement an expanded training program utilizing internal. external and
contract trainers.
6. Maintain media interest in public recognition of telecommunicators and civilian "heroes" to
provide total coverage of all events.
7. Continue the "Road Show"wireless training program to assure all call-takers are provided
hands on training for wireless location accuracy.
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OPIUM= i
W I 1111��
1 Continue efforts to "clean" the database of unnecessary records and duplicates.
Implement VDB/ERDB to enhance the routing and location accuracy on 9-1-1 calls from
users
• Internet phone services (VoIP).
wireless devices to summon emergency assistance through 9-1-1.
Continue Phase 11 wireless testing.
• Document.
• Provide individual report to each wireless carrier.
Publish report on this testing (print and website).
IMPROVE the quality of ALI data from VoIP phones for callers utilizing telephone service
through the public INTERNET.
Continue VolP testing.
Document.
Publish report on this testing (print and website)-
Provide better training material for call takers-
2, Continually "retest" to validate original data and report findings,
E
411m, Tarrant County 9-1-1 District
Five-Year Funding Projection
REVENUES
Wireline Service Fee
Wireless Service Fee
Rent
Interest Income
Total Income
EXPENDITURES
Salaries
Health Insurance
Retirement Benefits
Medicare
Social Security
Worker's Comp
Personal Services
Office Supplies (Other Supplies)
Printing
Postage
Maps and Materials - Data
Software
Supplies and Materials
Office Furniture
PSAP Furniture
Office Equipment
PSAP Equipment
Office Lease months)
Equipment Lease
Lease Payments
$3,350,534
$3,317,029
$3,283,858
$3,251,020
$3,218,510
$8,083,188
$8,325,684
$8,575,454
$8,832,718
$9,097,699
$6,012
$0
$0
$0
$0
$400,000
$400,000
$400,000
$400,000
$400,000
$1,221,198
$1,270,046
$1,320,848
$1,373,682
$1,428,629
$254,207
$292,338
$336,189
$386,617
$444,610
$168,622
$175367
$182,382
$189,677
$197,264
$18,527
$19,268
$20,039
$20,840
$21,674
$1,378
$1,433
$1,490
$1,550
$1,612
$10,000
$10,400
$10,816
$11,249
$11,699
$1,673,932
$1,768,852
$1,871,763
$1,983,615
$2,105,487
$32,000
$32,960
$33,949
$34,967
$36,016
$4,200
$4,326
$4,456
$41589
$4,727
$2,400
$2,472
$2,546
$2,623
$2,701
$12,315
$12,684
$13,065
$13,457
$13,861
$106,400
$109,592
$112,880
$116,266
$1191754
$157,315
$162,034
$166,895
$171,902
$177,059
$22,600
$23,278
$23,976
$24,696
$25,436
$4,000
$4,120
$4,244
$4,371
$4,502
$330,050
$239,952
$247,151
$254,565
$262,202
_$0
$0
$0
$0
$0
$356,650
$267,350
$275,371
$283,632
$292,141
$80,000
$82,400
$845872
$87,418
$90,041
$8,000
$8,240
$8,487
$8,742
$9,004
$14,890
$15,337
$15,797
$16,271
$16,759
$735,748
$757,820
$780,555
$803972
$828.091
$64,9330
566,878
$6804
$70,951
$73,079
$164,720
$40,000
$41,200
$42,436
$43,709
$103,600
3106,708
$109,909
$113,207
$116,603
$1.171,888
$1,077,383
$1,109,705
$1,142,996
$1,177;286
$': 10,997
$0
$0
$0
$0
$ 1 , 1
5
5
$3,F3 9
$1779
-
$,�)_892
Q
7154,9,
$114559
$ 1,64 9
$3 7 79
$31 8 9 2
5, G-Mr-119
2(y,"'18, f _m"l-
15
Auto Allowance
$51,000
s51.000
S51.000
$51�000
$51.000
Travel/Restaurant
$98,700
$101,661
$104,711
$107,852
$111,088
Travel and Auto
$148.700
$152.861
$155,711
$158.852
$162D88
Professional Memberships
$6.689
G6.890
$7.086
G7.309
$7,529
Subscriptions
Memberships and Subscriptions
$17.705
$18.238
$18.783
$10.347
Q19.827
Office Telephone
$24.000
$24.720
$25462
$26.225
$27.012
9-1'1 Telephone Service
$4.334.000
$4.464.020
$4.587.041
$4.735.879
G4.877.055
9-1-1 Enhancements
$2.211.000
$2.277.330
$7.000.000
$7.000.000
$7.000.000
PS9-1-1 Service
$18.800
$20394
$21.006
$21.630
$22.285
Wireless Q'1-1 Sem|on
$741,517
$741,517
$741 517
$741,517
$741,517
Total Utilities
$7.330.317
$7.527.881
$12.385.925
$12.525.257
$12.868.789
Insurance
|nmunmnoa
$62.712
$64.593
$66.531
$68.527
$70.583
Pub. Ed. Products/Services
$73.610
$75.818
$78.083
S80.436
$82.849
Pub. Ed. Printing
$77.590
$79,918
$82.315
$84.785
$87.328
Pub. Ed. Activities
$96,500
$99,395
$102,377
$105,448
$108,612
Advertising
$247,700
$255,131
$262,785
$270,668
$278,789
Total Expenses s11.282.478 S11.297.891 $16.317,248 %18,628,688 $10,958137
Reserve Gain (Loss) $557,256 $744,821 ($4;057,9351 ($4,1449510 ($4239929)
Estimated Ending Fund Balance s11.300330 S12.045,151 $7,987216 $3,842,265 ($397�663)
A Resolution
NO.
APPROVING THE FISCAL YEAR 2007-08 TARRANT COUNTY 9-1-1
DISTRICT BUDGET
WHEREAS, the Tarrant County 911 Emergency Assistance District Board of Managers
has approved the attached Budget and recommends that the City of Fort Worth approve
the same for the Fiscal Year beginning October 1, 2007, for the purposes set forth in the
Budget; and,
111 11 Jill.
111
WHEREAS, it is anticipated that no City tax revenues nor an increased monthly per line
fee from Fort Worth telephone customers will be required to carry out the District's
functions in the coming year;
BE IT FURTHER RESOLVED that this resolution shall take effect immediately
upon its passage.
J�11 �il i'll l � ill lill,
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erry or re" VPO