ORDER NO. 29438 APPROVE PROPOSED 2006 BUDGET FOR KERR EMERGENCY 9-1-1 NETWORK Came to be heard this the 24th day of October, 2005, with a motion made by Commissioner Baldwin, seconded by Commissioner Letz. The Court unanimously approved by vote of 4-0-0 to: Approve the Proposed 2006 Budget for the Kerr Emergency 9-1-1 Network. l.a ~~~~~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Bill Amerine OFFICE: Ken 911 MEETING DATE: October 24, 2005 TIME PREFERRED: 9:15 SUBJECT: Consider, discuss and approval of Proposed 2006 Budget for Kerr Emergency 9-1-1 Network. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Bill Amerine ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: 5:00 P.M, previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. ,Kerr Emergeacy q~ii Network ~ ,., ise ;_ ; ~~{ -~' _` ~. _ `,, Subject: Proposed 2006 Budget Kerr Emergency 9-1-1 Network Administrative Offices 819 Water Street, STE 270 Kerrville, Texas 78028 (830)792-5911 October 5, 2005 1. Net Income 2006: $372,010.08 based on a conservative increase of 1.92% over 2005's income. 2. 200 Payroll expenses a. 210: Salazies. Salazies received COLA increases averaging 2.79% in the 2006 budget. Overall this line item decreased from $131,800.00 budgeted in 2005 to $110,800.00 proposed in 2006. A personnel change; the resignation of a full-time employee is the largest contributing factor in this decrease. Our current salary levels have our 9-1-1 staff salaries in the bottom 22% of all Texas 911 districts. b. 211: Overtime Wages. Decreased from $2,028.00 budgeted in 2005 to $1,410.00 (translates to 100 overtime hours) proposed in 2006. Based on rural addressing maintenance completion and other work-load projections, the amount proposed will be sufficient to cover 2006 overtime contingencies. o. 212: Payroll Taxes: A small decrease reflected in the 2006 budget based on the overall salary overhead mentioned above. d. 213: Medical Insurance Expenses: A small increase (1.5% per employee increase) is reflected in the 2006 budget. Overall decrease in this line item: Three vs. four full-time employees. (Source: KCAD/TAC). e. 214: TCDRS Expense Company (Retirement Plan/Benefit): A small decrease reflected in the 2006 budget based on staff change mentioned above. f 215: TCDRS SDB Expense Company (Survivor's Death Benefit): Line item added in mid-2004. This is survivor's death benefit for all employees. The amount is the total expense for all employees for 2006. g. 220: Contract Labor: A small decrease from $1,760.00 budgeted in 2005 to $1,150.00 (translates into 100 contract labor hours) proposed in 2006. h. 225: Texas Workforce Commission (Unemployment Insurance). No Change 230: Excess vacation payout. Line item allovv-s for excess vacation payout at the end of 2006 if and only if the district's workload prevents employees from using their allotted vacation time. This is a contingency item. District policy will typically manage vacation so that it is used and not banked year-to-year. 3. 300 Operations (PSAP) a. 310: Communications Ops. This line item is based on a standing contract between the City of Kerrville and Ken 9-1-1. This contract will be renegotiated in 2006 to cover floor space lease and utility reimbursement. Dispatcher training will be funded as requested and required to certify new dispatchers. b. 320: Wireless Phase I. New line item for 2006. Expected provider charges from Sprint, Nextel, Verizon, Cellular One and Five Staz Wireless. All five carriers use a different cost recovery methodology for determining this charge. Pending significant technology advances and until which time the FCC & CSEC change funding methods for this service, Kerr 911 can expect to have this annual overhead each yeaz beyond 2006. c. 330: Wireless Phase II. New line item for 2006. Administratively moved from 2005 budget line item 380: Intrado -Phase II Wireless. All current wireless carrier one-time non-recurring Phase II fees have already been paid. This fee covers a phase II service contract with Intrado. This amount includes aone-time engineering fee of $9,000.00 and a monthly reoccurring fee of $1,200.00. This line item will therefore decrease by $9,000.00 in subsequent years. d. 340: Valor DB/MSAG Tariff. New line item for 2006. Valor has notified Kerr 911 that they will be filing this tariff with the PUC in the neaz future. This taziff will cover the DB/MSAG validation service Valor performs on their data prior to sending it to our local PSAP database. The monthly recurring fee is tentatively (the tariff is not filed/approved yet) based on a 4 cent charge per active "911 capable" phone line. e. 350: Service Provider Chazges. No Change. This line item addresses all telephony cost associated with the 9-1-1 PSAP operation. f 355: Language Line. Based on per-use-charges. No change in proposed 2006 budget. g. 360: Pager Service. This line items covers the expense for 2 administrative 24x7x365 PSAP support pagers used by Kerr 911 staff members. h. 370: PSAP Repairs & Maintenance. A decrease from $4,000.00 budgeted in 2005 to $1,000.00 proposed in 2006. Most, if not all, PSAP repairs will be covered under the warrantees associated with our new PSAP equipment. 4. 400 Direct Services a. 410: Office Supplies: Based on usage trends this line item has been increased by $500.00 for 2006. b. 412: Office Equipment and Repairs: Based on 2005 usage trends and relative newness of most CPU's, servers, printers, plotters, and copiers this line item has been decreased from $2,500.00 budgeted in 2005 to $1,500.00 proposed in 2006. c. 420: Liability Insurance: No change -actual cost will not be available until we accomplish a new liability assessment for 2006. d. 430: Professional Development: A decrease from $3,000.00 in 2005 to $1,000.00 in 2006. Forecasted usage; System Administrator training for 1 staff member, GIS and 911 conferences, and book-keeping refreshers for office manager. e. 440: Rent: Three percent increase forecasted. E 445: Utilities: Amount changed to zero. All utilities covered in rent overhead. g. 450: Professional Fees: Item increased by $1,000.00 in 2006. Items included in this line-item are legal, audit, accounting & CPA fees. h. 460: Postage & Delivery: Based on usage trends this line item has been increased by $250.00 for 2006. i. 470: Vehicle Expense: Amount changed to zero. Last district vehicle sold in 2005. j. 476: Vehicle Insurance: Amount changed to zero. Last district vehicle sold in 2005. k. 480: Office Maintenance & Repairs: Decreased from $3,000.00 budgeted in 2005 to $00.00 proposed in 2006. We have no maintenance/repair overhead under current lease. 1. 490: Bank Service Charges: No Change. 5. 500 Miscellaneous a. 510: Awards & Honorariums. No Change. b. 520: Dues & Subscriptions. No Change. c. 530: Public Education & Advertising: Increased from $1,500.00 in 2005 to $3,830.00 in 2006. d. 540: Local Meetings: Amount changed to zero. e. 550: Telecommunications: No Change. Costs associated with KPD, SO, Kerr County, DPS and Kerr 9-1-1 administrative telephony services. f 560: Sundry: Decrease from $2,500.00 budgeted in 2005 to $1,000.00 proposed in 2006. 570: Texas 911 Alliance Meetings: Increase from $1,200.00 in 2005 to $1,300.00 in 2006. 6. 600: Discretionary Communications: a. 610: VFD Pager Services. Decreased from $3,500.00 to $2,310.00. Decrease based on actual cost of service from Advantage Telecommunications. b. 620: VFD Radio Repeater Services. No Change. 7. 700: PSAP Equipment Replacement: a. 710: Monthly operating funds transfers to capital funds account. Intent: Build cash reserves for PSAP equipment upgrade in 2011. Capital Considerations: Other than interest-growth, we transferred monies in excess of $100,000.00 to the capital cash fund from capital CD to ensure a positive balance after all PSAP upgrade expenses aze paid. PSAP upgrade will likely cost $200,000.00 to $225,000.00. Capital cash account grew by $144,915.12 in 2005 from nominal interest, scheduled PSAP Equipment Replacement transfers and excess operating/CD fund transfers. Additionally this package includes a 2006 capital budget for your review and approval. This budget includes all income and expenses associated with this account. The primazy source of revenue is from "planned" operating funds transfers, 9-1-1 sign sales cost-recovery, and surplus equipment disposal. 9-1-1 Emergency Service Fee The Texas Health and Safety Code -Chapter 772.314 (d): The board shall set the amount of the fee each year as part of t)ze annual budget. For the 2006 budget, Kerr 911 will retain the current 9-1-1 Emergency Service Fee of 6 of the basic rate for phone service. However, we believe in the 2007 budget after all wireless costs are stable that we will be able reduce the emergency service fee. This reduction is required by the Texas Health and Safety Code 772.314 (e): In imposing the fee, the board shall attempt to match the district's revenue to its operating expenditures and to provide reasonable reserves for contingencies and for the purchase and installation of 9-1-1 emergency service equipment. If the revenue generated by the fee exceeds the amount of money needed to fund the district, the board by resolution shall reduce the rate of the fee to an amount adequate to fund the district or suspend the imposition of the fee. Accomplishments in 2005: 1. County wide addressing maintenance/clean up effort completed (citizens still need to do their part, i.e., appropriate signageJ Total 2003-2005 physical addressing costs to 9-1-1 public funds $436,360.12 2. PSAP Upgrade (all CPE, UPS, telephony equipment and software). Total 2005 cost to 9- 1-1 public funds $200,000.00 to $225,000.00. 3. Initiated Wireless Phase I and II service requests. 4. Continued efforts to cut costs and save funds toward capital improvements for the 9-1-1 Network. Vision for 2006: 1. Complete Kerr 9-1-1 MSAG, establish landline and wireless ESNs in PSAP and distribute MSAG to LECs. 2. Enhanced Mapped ALI capability for the PSAP. 3. Enhance 9-1-1 WEB Site Content. 4. Establishing VoIP 9-1-1 service contracts. 5. Continued 9-1-1 sign sales. 6. Enhanced 9-1-1 public education. Conclusions & Recommendations: 1. The 2006 proposal is anon-deficit balanced budget. 2. This budget more than adequately addresses the expected operating needs of our district and it includes much needed technical upgrades of the Public Safety Answering Point (Call Center Equipment and Software) and progress towards phase 1 & II wireless compliance. 3. Our district's vision and public-funds stewardship is based firmly in the state and local government codes, guided by conservative spending and liberal savings policies. From 2003 through the end of 2005, over $270,391.53 has been set aside for network upgrades. 4. Approve budget as proposed. Respectfully submitted by, Bill Amerine Executive Director, Kerr Emergency 9-1-1 Network Kerr Emergency 911 Network 2006 Opr. Budget -Draft 100 -Revenue 101-Loca1911 Service 105-Wireless Emergency Income 120-Interest Income 225, 700.00 135,455.00 3,845 00 230, 038.49 138,052.77 3,918.82 4338.49 1 92% 2597.77 1.92% 73.82 1.92% 7010.08 1.92% Total 100 -Revenue 200 • Payroll Expense Total 200 • Payroll Expense 300 • Operations (PSAP) Total 300 • Operations (PSAP) 365,000.00 372,010 08 365,000.00 372,010.08 7010.08 1.92% 210 • Salary 211 • Overtime Wages 212 • Payroll Taxes 213 • Medical Insurance Expense 214 • TCORS Expense Company 215 - TCDRS SDB Expense Company 220 • Contract Labor 225 • Texas Workforce Commission 230 -Excess Vacation Payout 310 • Communications Operations 320 -Wireless Phase I 330 -Wireless Phase II - Intrado 340 -Valor DB/MSAG Tarriff 350 • Service Provider Charges 355 • Language Line 360 -Pager Service 370 •PSAP Repairs & Maintenance 136,493.00 13180000 - 11tl;8.QO,QO (21000.00) -15.93% 4,000.00 2 080 00 1,410.Of3 (670.00) -32.21 10,935.00 10 600 00 $,747.00; (1853.00) -17 48% 18,975.00 19 650 72 1~,~21,32' (4229.40) -21.52% 9,700.00 9226.00 7,77.35; (1518.65) -16.46% 369.04 197 70 296 55 98.85 50.00% 2,00000 176000 ~- 1,1500Q (610.00) -34.66% 500.00 500 00 ...... ..... ~at30,00 ............................ .......................... 0.00 0.00% 0.00 1,082 00 ~i10.00;i (582.00) -53.79% 182,972.04 176,896.42 146,.~r.12,~1: (30364.21) -1716% 36,000.00 36,000 00 18,t700,00 (18000.00) -50.00% 0.00 0 00 54,400.00! 5400D.00 0.00 12 400 00 ! ...:... ....... 24,t~Q,q~, ................................ ................................ 11600.00 93.55% 0.00 ...... ...... 0 00 .............................. ............................... 12ROO,OQ!i 12000.00 28,800.00 28 800 00 - ...... 78,$00.001; ................................. D.00 0.00% 00.00 ...... ....... ...... 50000 ............................... . ................................. ............................... ;:.50000!; .00 .00% 32 00 4 32 40 0.00 500.00 4,000 00 9.,flQC(,Qp' (3000.00) -75.00% 65,800.00 81732.00 ., 11$$i$~~.#)t~} 56600.00 69.25% 10/12/2005 Kerr Emergency 911 Network 2006 Opr. Budget -Draft 400 • Direct Services Total 400 ~ Direct Services 500 • Miscellaneous Total 500 • Miscellaneous 600 -Discretionary Communications Total 600 -Discretionary Communications 700 - PSAP Equipment Repacement Account 410 • Office Supplies 412 • Office Equipment $ Repairs 420 ~ Liability Insurance 430 • Professional Development 440 • Rent 445 • Utilities 450 ~ Professional Fees 460 • Postage 8 Delivery 470 ~ Vehicle Expense 478 • Vehicle Insurance 480 • Office Maintenance & Repairs 490 • Bank Service Charges 510 520 530 540 550 560 570 • Awards & Honorariums • Dues 8 Subscriptions • Public Education & Advertising • Local Meetings • Telecommunications • Sundry -Texas 911 Alliance Meetings 610 ~ VFD Pager Service 620 •VFD Radio Repeater Service 710 -Monthly OF to CF Transfer 3,500.00 ........ 2,500 00 d' ............................. 3QOO,SQ~O~ 500.00 20.00% 3,000.00 2,500 00 ........ 1,Fa.00.0p. ............................... (1000.00) -40.00% 4,000 00 ....... ........ 4,000 00 :~ .............................. ............................ 4il00,04 0.00 0.00% 1,500.00 3 000 00 ...,.... 1,~pO Ate; ... .......................... (1500.00) -50.00% 1,372.00 ........ ...... ....... 15 000 00 - ............................. ............................ ........................ 3x;',1"G$.(3(Z' 304.00 5.36% 7,500.00 5 OOD OD :~ : 1y.00# (5000.00) -100.00% 9,000.00 9 000 00 ~ ........ ...... ........ 10,tHI0.00:_ .......................... .............................. ........................... 1000.00 11 11 400.00 ...... ....... 500 00 ' ....................... . ............................ I!750 #!0 250.00 50.00% 250.00 500 00 : (),(30~ (500.00) -1D0.00% 375.00 375 00 O,OOs (375.00) -100.00% 2,500.00 ~ 3,000 00 '~ 0,00:' (3D00 00) -100.00% 40.00 4000 4000':: 0.00 0.00% 53,437.00 45,415.00 ~SaQ~$.~tQ. (7321.00) -16.12% 100.00 100 00 'i ........ ........ ........ ........ 300 00!' ............................ .............................. ............................. ........................ . 0.00 0.00% 250.00 ......... 400 00 d ........ .............................. +1#IO,RQ'. ............................ 0.00 0.00% 500.00 1,500 00 3,&0,00; 2330.00 155.33% 250.00 250 00 0.00: (250.00) -100.00% 10,000.00 10 000 00 1t?,O~O.Q(f; 0.00 0.00% 1,000.00 2,500 00 1,(MIO,tIO;, (1500.00) -60.00% 0.00 1,200 00 1 1,540,U0:, 300.00 25.00% 12,100.00 15,950.00 :. 15,8.30,00': 880.00 5.52% 3,500 00 3 500 00 2,3$0,00: (1190.00) -34.00% 9,900.00 9 900 00 9,00,04' 0.00 0.00% 13,400.00 13,400.00 0.00 (1190.00) -8.88% (10000.00) -33.33% 10/12/2005 Total 700 - PSAP Equipment Repacement Account Annual Budget Totals Net Income Projected Budget Surplus/Deficit 2004 to 2005 Kerr Emergency 911 Network 2006 Opr. Budget -Draft 0.00 30,000.00 327,7os.oa 363,393.42 355,130.00 365, 000.00 (1,606.58) 10/12/2005 (10000.00) 8604.79 7010.08 .............. -33 33% 2.37%. ... :.. .; 1 92% Kerr Emergency 911 Network 2006 Cap. Budget Worksheet DRAFT .............................. ................... 2006 Budget Worksheet {Capital Cash 7038987{ Capital Expenses - 800 Total Capital Expense - 800 Capital Income - 900 Total Capital Income - 900 801 - NRC's for Phase One Wireless 803 -Office Computer Upgrade 804 -Sign Materials 901 -Sign Sales (Recovery) 902 -Equipment Replacement Fund Transfers 903 -Surplus Equipment Sales 2006 Starting Capital Balance 2006 Net Capital Expenses 2006 Net Capital Income Projected End-of-2006 Capital Balance 200fi Proposed :I $7,500.00 $1, 500.00 $10, 000.00 E19,000.00 $9,000.00 $20,000.00 $500.00 $29,500.00 $50,391.53 $19,000.00 529,500.00 $60,891.53 Comments Non-Recurring Charges for setting up Phase I Wireless Service Upgrade Offlce Managers Workstatior Sign Blanks and Vinyl 90% Recovery (Pln It is likely we'll transfer additional surplus operating funds before EOY OfflcelPSAP Surplus Assests ~-~ X111@1'~~Ilt'~t ~, i-'"-`-'~ q-i-I Netwotk~t +. ~. j _. , ~.. ~z_. , - _.', Kerr Emergency 9-1-1 Network Administrative Offices 819 Water Street, STE 270 Kerrville, Texas 78028 (830)792-5911 Subject: 2006 Budget - Phase I Cost Estimates October 5, 2005 To provision Wireless Phase I service, Kerr 911 will establish service contracts with each of the wireless providers providing service in our area. They are Sprint, Nextel, Verizon, Cellular One, and Five Star Wireless. 2. There is NO state or federal mandated cost recovery methodology for this service. Therefore, Kerr 911 will attempt to negotiate contracts that are consistent and fair across all of our wireless carriers. 3. Cost Estimates by cazrier: a. Sprint uses acustomer-base method with a monthly (MRC) per customer fee of 14.5 cents. There is also anon-recurring (NRC) fee of 25 cents per customer (service set up fee). As of September Sprints customer base in our jurisdiction was 11,608. This translates to a NRC of $2,902.00 and a MRC of $1,683.16. Therefore 2006 estimated cost for Sprint Wireless Phase I is $23,099.92. In years 2007 and beyond their annual cost estimate is $20,197.92. b. Nextel has recently merged with Sprint. Their representative has stated that they will likely adopt the Sprint cost recovery method for Phase I costs. With that being said, Nextel currently has a customer base of 100 in our jurisdiction. This translates to a NRC of $25.00 and a MRC of $14.50. Therefore 2006 estimated cost for Nextel Wireless Phase I is $199.00. In years 2007 and beyond their annual cost estimate will be merged with Sprint's. c. Verizon uses a per cell tower/circuit cost recovery methodology. Verizon supports 5 towers in our jurisdiction and we estimate two trunk line circuits will be required. There will be a NRC of $100.00 per tower (service set up fee). There will be a MRC of $39.00 per trunk line. There will also be a MRC of $65.00 per tower. Therefore 2006 estimated cost for Verizon Wireless Phase I is $5,336.00. In years 2007 and beyond their annual cost estimate is $4,836.00. WEA/792-5911/2006 Budget Summary - Phase I Cost Estimatesll0/5/2005 10:14 AM d. Cellular One (Concho Communications) is proposing a circuit based cost recovery. They are currently negotiating with the COGS in this area. Their representative provided the following estimates. However, Kerr 911 has not received to per circuit cost estimates to validate these figures. Cellular One proposes a NRC of $3,800.00 (service set up fee) and a NRC of 1,200.00. Therefore 2006 estimated cost for Cellular One Wireless Phase I is $18,200.00. In years 2007 and beyond their annual cost estimate is $14,400.00. e. Five Star Wireless has not providing any cost recovery methodologies for us to consider for our budgeting process. I've spoken to the senior network engineer as well as their GM. Requests for customer, circuit and tower counts have not been answered. Therefore, we are budgeting a nominal contingency amount of $7,165.08 for the 2006 budget. 4. 2006 Totals: Overall Phase I cost is estimated at $54,000.00. 2007 and beyond: With the Five Star Wireless unknowns still at issue, overall Phase I cost is estimated at $46,798.00. WEA/792-5911/2006 Budget Summarv - Phase I Cost Estimatesll0/5/2005 10:14 AM Kerr EmerOency 9-1-1 NeNrork 2006 Drag BWget Payroll Expenses 702425