HomeMy WebLinkAboutResolutions - 2015.05.06 - 21922Chairperson, on behalf of the Finance Committee, I mo e adq0i-OThol the
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oing resolution.
MISCELLANEOUS RESOLUTION #15128 May 6, 2015
BY: Finance Committee, Thomas Middleton, Chairperson
IN RE: ESTABLISHMENT OF OAKLAND COUNTY 9-1-1 CHARGE RATE (FORMERLY TELEPHONE
OPERATING SURCHARGE) FOR THE PERIOD JULY 1, 2015 TO JUNE 30, 2016
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the County has created and now operates and maintains an interoperable public safety radio
communications system for over a decade for the benefit of its residents on behalf of and for local law
enforcement, fire, emergency medical services, hospitals, homeland security, and operating purposes
other than public safety; and
WHEREAS the County constructed this public safety radio communications system through a 9-1-1
charge (fee) on devices, as defined by the Emergency 9-1-1 Service Enabling Act, Michigan Public Act 32
of 1986, MCL §484.1101 et seq., as amended; and
WHEREAS the Michigan statutes requires that county boards of commissioners annually approve the
9-1-1 charge rate for the fiscal year period from July 1 through June 30 each year (including the period
under consideration in Oakland County of July 1,2015 through June 30, 2016); and
WHEREAS the State requires that a certified copy of the board of commissioners resolution be submitted
to the Michigan Public Services Commission no later than mid-May of each year covering the ensuing
July 1 through June 30 fiscal year; and
WHEREAS the County's 9-1-1 charge rate is $.20 per month per device as defined by Michigan statutes
and is well below the authorized limit established by State statute of $.42 per month per device; and
WHEREAS an attached Memorandum dated March 31, 2015 from the County Administration covering the
financial, programmatic, and capital status and needs of the Radio Communications Fund for the funding
period July 1, 2015 through June 30, 2016 has been prepared outlining in detail the business issues
involving the next several years' 9-1-1 charge rates; and
WHEREAS the attached memorandum also covers major capital projects anticipated to occur in FY-2016
through FY-2022 as mandated by evolving technology and obsolescence of existing radio
communications equipment, including replacement of radio consoles at the County's twenty-one Public
Safety Answering Points (PSAPs), the replacement of public safety responders' mobile and portable
radios, the replacement of older connectivity in the CLEMIS WAN, and the migration to a Next Generation
9-1-1 Emergency Services IP Network (ESInet) and associated call-processing equipment (CPE) at the
PSAPs; and
WHEREAS the attached memorandum has outlined an immediate need for an increase of the 9-1-1
charge rate of $.08, bringing the proposed total 9-1-1 charge rate of $.28 per month per device as defined
by Michigan statutes; and
WHEREAS the Budget Task Force and the CLEMIS Radio Communications Oversight Committee (such
membership of which includes law enforcement, fire, medical, administration and other representatives)
meeting held on March 31, 2015 unanimously agreed with the need for the $.08 increase in the 9-1-1
charge per month per device.
NOW THEREFORE BE IT RESOLVED that the County's Board of Commissioners hereby approves the
9-1-1 charge of $.28 per month per device as defined by Michigan statutes for the period July 1, 2015
through June 30, 2016.
BE IT FURTHER RESOLVED that a budget amendment is recommended to the Radio
Communications Fund for FY 2015, FY 2016, and FY 2017 to reflect increase in
9-1-1 charge rate:
Radio Communications Fund (#53600) FY2015
Revenues
53600-1080310-115150-630581 E911 Surcharge $350,000
53600-1080310-115150-665882 Planned Use of Balance ($350,000)
Total Revenues 0
FY2016 - FY 2017
$1,400,000
($1,400,000)
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FINANCE COMMITTEE VOTE:
Motion carried on a roll call vote with Woodward, Long, Zack and Quarles voting no.
oAKTAND-w
FROM: Bob Daddow
TO: Finance Committee
Radio Oversight Committee
Mike McCabe
Phil Bertolini
Laurie VanPelt
Jamie Hess
Jeff Werner
Pat Coates
Holly Conforti
Shawn Phelps kV'
•-"" •7›.
- 5\ 1 —
COUNTY MICHIGAN
L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
Robert J. Daddow
Special Projects Deputy County Executive
SUBJECT: Radio Project Status at December 31, 2014 and Proposal for 9-1-1 Charge,
Charge (e.g. Telephone Operating Surcharge) Rates for July 1, 2015 to
June 30, 2016
DATE: March 31, 2015
The State statutes associated with the "9-1-1 charge" (e.g. telephone operating surcharge)
require that County Board of Commissioners approve the fee on an annual basis for each
fiscal year ending June 30 — in this case, for the period from July 1, 2015 through June
30, 2016. The funding provides capital and operating support for the County's public
safety radio communications system operated on behalf of the County's Sheriff s Office,
local units of government's police, fire and emergency medical services, hospitals and
other related parties. The Board of Commissioners' resolution approving the telephone
operating surcharge must be submitted to the State no later than May 15, 2015 in order
that the surcharge can be placed on the telephone bills starting July 1, 2015.
Presently, Oakland County has a $.20 per wireline / wireless device as defined charged to
County users for the period July 1, 2014 through June 30, 2015. The surcharge rate has
remained unchanged for several years. In addition, the Radio Communications Fund
receives funding from a State distribution, tower fees from telephone companies and
other miscellaneous revenues. However, the principal revenue source for the Radio
Communications Fund is the 9-1-1 charge approved annually by the Board of
Commissioners in accordance with State statutes.
On a quarterly basis, the County administration issues a letter of transmittal covering the
quarterly operating results, financial statements and explanatory comments for the Radio
EXECUTIVE OFFICE BUILDING 41 WEST • 2100 PONTIAC LAKE RD DEPT 46 • WATERFORD MI 48328-0409 • (248) 858-1650 • FAX (248) 4y-9215
EMAIL: daddowr@oakgov.com
Communications Fund. No current, significant capital expenditures are in progress, but
several capital programs are contemplated in the near future as discussed herein. The
financial report for the CLEMIS Funds (including the Radio Communication Fund) for
the year ended September 30, 2014 was previously submitted to the Finance Committee.
The financial statements for the Radio Communication Fund for the quarter ended
December 31, 2014 are attached as Exhibit A.
This memorandum covers the financial status of the Radio Communications Fund and its
capital and operating needs for the next several years. Since the 9-1-1 charge (fee) is the
principal source of controllable revenue for the Fund, the sizing of the charge is critical
for the periods July 1, 2015 through June 30, 2016 and beyond in order to ensure that the
capital and operating needs of the Fund are met.
RADIO COVERAGE PROJECTS
At present, the radio communication system has 53 towers (County owned, locally owned
by governmental units within the County or leased space from private vendors), 1,834
mobile radios, 4,263 portable radios, and 190 control stations in use. Radio consoles are
located in 21 public safety dispatch centers (PSAPs) throughout Oakland County. There
are 14 hospital emergency rooms tied to the County's radio communication system and a
number of private ambulance companies as well. Some non-public safety units use the
County's radio system for a monthly operating fee.
The County's radio communication system has been fully operational for many years
with the last public safety agencies being brought on-line in the fall of 2010. Since that
time, the County has enhanced the radio communication coverage by constructing or
acquiring lease space on a dozen tower sites. No significant radio communication
coverage funding is presently required.
The County has a number of capital programs requiring funding in the coming years,
some of which are highly dependent on the number of dispatch centers operated at the
time that this equipment is needed. The County presently has 21 dispatch centers with a
substantial amount of CLEMIS-owned equipment. Given that the County cannot
determine just how many dispatch centers will remain at the time of the equipment
replacement, costs developed below must assume that all 21 dispatch centers will be fully
functional for the next several years.
Locally owned equipment exists in the dispatch center as well. The elimination of
dispatch centers in connection with the needed near-term replacement of equipment
would serve to substantially reduce the operating and capital needs contemplated relating
to the following programs cited as 'dispatch capital projects':
• Dispatch capital projects:
o Radio Consoles.
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o Computer-Aided Dispatch Project (marginal benefit if a dispatch center
were eliminated).
o Cell Site Enhancements.
o Communications — WAN Upgrade.
o NG-911 Project.
• Mobile / Portable Radios.
Radio Consoles
Because the County distributed the radio consoles in the dispatch centers circa 2003
through 2006, this 10 to 12 year old computer equipment is aging rapidly. Replacement
is planned for FY-2016 through FY-2017. While the County has yet to assemble an
estimated cost of the replacement of this equipment based upon a formal study or through
a request for information / proposal, the estimated cost could approach $5 million to $8
million, depending upon the number of dispatch centers remaining at the time of
replacement. The original deployment of consoles cost roughly $5 9 million for 31
dispatch centers. There are now 21 dispatch centers. Presently, there is only one active
discussion relating to the potential consolidation of a dispatch center within the County
expected to occur this summer.
The difficulty in calculating the amounts needed to be set aside for a console replacement
program involves several factors:
• Technology costs generally decline over time. The original consoles were
deployed from 2003 through 2006 — meaning they have been in use for 9 to 12
years. The radio consoles are not expected to last more than another year as the
County gears up for the conversion to the new equipment. Some benefits inure to
the County as dispatch centers are taken out of operation in that the equipment
can be retained for parts for continuing dispatch center operations. This delay has
benefitted the County in the delay of the console replacement project (originally
identified circa FY-2013).
• Some of the original project costs in 2003 to 2006 were likely one-time
installation and start-up costs not requiring replacement. The one-time costs
would have included the County's business issues with a radio vendor involving
installations and parts that failed, as well as other matters. These costs would
likely not recur in a future installation. There is no way of assessing how much of
the $5 9 million may have been related to these one-time installation costs.
• The consolidation of dispatch centers into the current facility of the Sheriff's
Office is reaching its capacity without moving the dispatch operations to another
site. While certainly a few smaller dispatch center operations (perhaps 3 to 5
smaller dispatch centers with lower volume) could be consolidated into the
Sheriff's operations, any sizable dispatch operations may be too large to
consolidate absent a change of venue or displacement of co-existing operations.
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There is no current plan to secure additional space in the Sheriffs Office dispatch
area to accommodate a larger dispatch center.
Presently, there are sufficient existing console parts to access most situations should
repairs be necessary given prior dispatch consolidations. There is no certainty as to how
much longer parts will be available. Once the dispatch centers start cutting over to the
new radio console equipment, or if several dispatch centers consider consolidating arising
from the costs associated with the NG-911 project, parts for the existing systems should
be adequate for the next year or a little longer.
At December 31, 2014, the unreserved equity-designated for projects includes $3.0
million set aside to address the radio console replacement, to be purchased and installed
across FY 2016 and FY 2017 with up to an additional $5.0 million needed in reserve to
complete the project depending on the number of dispatch centers.
Computer-Aided Dispatch Project
The County's computer-aided dispatch center equipment software for CLEMIS is being
re-written as the vendor-acquired software is no longer easily maintained and the
software licensing to maintain this equipment is very costly. The County started this
project in 2013 with an anticipated completion in FY-2016. The estimated cost of this
project was $3.5 million and is funded out of the Radio Communications Fund through
amounts set aside in equity. The project is expected to complete with a favorable
variance of approximately $1.0 million. Presently, the $450,000 set aside in equity is
sufficient to complete the project. The launch of the first pilot dispatch center was in
April 2014, with the remaining agencies to be completed in calendar year 2015.
Only a marginal benefit would inure to the Radio Communications Fund in the event that
a dispatch center consolidates with a surrounding center relating to this project.
Cell Site Enhancements
The County has evaluated radio coverage and in areas with weak coverage, additional
cell site are implemented. As of this date, the necessary equipment for identified
locations has been purchased, and the County has set aside $400,000 for use toward the
construction and installation of the remaining sites.
Communications - WAN Upgrade
The County's vendor for network communications to various radio towers have plans to
retired the existing T1 and ISDN network infrastructure at the end of December 31, 2016.
At that time, the County would have to invest in either connectivity to the towers or
secure communication lines with an annual cost The County has set aside $576,000 for
the cost to migrate to the new network. In addition, the County has included the net
projected cost in future operating projections necessary to fund the communications
conversion from Tls and ISDN lines.
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NG-911 Project Needs
In 2009-2010, the County supplemented the cost to acquire new call-taking equipment
(NG-911 Project) on behalf of the local public safety dispatch centers. Unlike older
telephony-based call-taking equipment, NG-911 systems are IP-based software-driven
systems (similar to computers) and can be expected to have a shorter useful life that
earlier systems before requiring a technology refresh. It is therefore anticipated that the
call-taking equipment at the 21 local dispatch centers will need to be replaced in the
2016-2018 timeframe.
Additionally, the County needs to prepare for the establishment of a local NG-911 ESInet
(Emergency Services IP network) through either a leased commercial network or the
enhancement/expansion of the present OakNET fiber, as the present 911 network
provider gradually migrates away from the legacy copper-wire trunks. The NG-911
ESInet is a substantially enhanced, secure network from the current County OAKNet
system in use today.
CLEMIS and IT staff, in conjunction with a contracted consultant, have developed a
Request for Proposal (RFP) for the ESInet as a managed network compliant with national
standards for capacity, redundancy and security, with two Tier 3 data centers. The request
for proposal also includes replacement of the call-processing equipment (CPE) at the 21
dispatch centers within the County. The current CPE at the PSAF's reaches end of life in
2016, and many dispatch centers are already having difficulty obtaining
replacement/repair parts.
The NG-911 CPE will be networked to reduce costs and promote efficiencies, including:
• Providing additional network security and enhancing the redundancy of dispatch
centers over the current network configuration in the event that a dispatch center
is taken off-line.
• The multi-media needs relating to changing technology is rapidly outdating the
existing network infrastructure. In-field photographs, video connectivity to
facilities such as schools and other facilities by dispatchers, On-Star data
communications, and location siting are critical needs of an enhanced system.
Presently, residents are abandoning their home land-lines in favor of cell phones —
effectively complicating the ability to locate individuals who are incapable of
communicating location.
The present federal standard only requires the cell phones today to be accurate
2/3rds of the time within 100 meters — in a subdivision and inside a home this
complicates rapidly responding to 911 resident needs. The network would
provide the latitude and longitude more accurately than the current system which
requires the dispatcher to 're-bid' (e.g. call for the physical location of the cell
phone within the above federal standards).
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• In the future, the network would facilitate the capturing of "Z-values" — or, height
for use in apartment and commercial complexes when similar situations calls are
made by a resident who is incapable of communicating a specific location.
CLEMIS hired a radio consultant and has requested that the consultant provide very high
level, budgetary estimate of costs based upon similar counties. The preliminary cost
estimates include start-up costs of $4.0 million plus annual recurring operating costs of
$12.6 million over a five-year period, for a total estimated cost of ownership of
$16,812,070. Presently, for the County's portion, funding has not been reserved for the
capital equipment of $2.5 million and the operational needs of $6.9 million. Traditionally
dispatch centers have born the cost of CPE replacement with local funds, and a method of
cost sharing with locals is being explored.
Recently, a request for proposal has been issued and vendor proposals will be received in
May 13, 2015 with an expected selection in July enabling CLEMIS to create a more
accurate project cost, timing and nature of service delivery (hosted by a vendor or owned
by the County). Depending upon the number of dispatch centers, it is likely that the
project will take a year to 18 months to complete.
Mobile / Portable Radios
Last year, County administration was notified that the radio communications vendor will
no longer support the mobile and portable radios at the end of calendar 2017. The
County's radio communications system is the life-blood of public safety
communications. Having portable and mobile units not supported by the underlying
vendor could be problematic (of course, an assessment of this matter would have to be
made circa 2016 / 2017 to determine if the hardware truly needs replacement).
However, even as the radio communications vendor will no longer support the radios, the
County has assumed the operations and maintenance of the system and the radios will
still have practical, useful life well beyond 2017. The County understands that the new
mobile / portable radios will continue to be able to be used on the backroom equipment
located at Information Technology.
While the County administration has been notified that the radios will be end-of-life at
the end of 2017, history would suggest that few governmental units (unlike the County)
set money aside for the replacement equipment. As such, as the end-of-life date closes
in, governments seek federal / state assistance and / or bring pressure on the vendor to
delay the actual end-of-life date. While the County cannot be assured of a delay in the
future, County's maintenance efforts, ability to use the equipment beyond 2017 and the
potential delay of the actual end-of-life date suggests that the actual replacement period
would be from 2018 to 2022.
At this time and assuming that a future assessment would require replacement, the
aggregate original cost of the mobile and portable radios as of December 31, 2014 was
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$17.36 million. The County has restricted equity relating to depreciation in the amount
of $13.2 million as of December 31, 2014, but needs to continue to set aside additional
funds of perhaps another$7 million over the next 5 to 7 years to ensure that there is
sufficient available resources to replace the mobile and portable radios beginning in FY-
2018 through anticipated completion in FY-2022.
Based on current cash flow projections it is estimated that fund will experience a cash
shortage by $3 4 million beginning in FY 2019 and continue to escalate in future fiscal
years due to the additional capital needs projected through FY-2022 at the current $.20
per month 9-1-1 surcharge and absent other capital considerations.
Because the County has been informed that the portable and mobile radios will be at the
end-of-life at the end of calendar 2017, the depreciation schedules were adjusted to
reflect that all of this equipment would be fully depreciated no later than December 31,
2017. Purchases of future portable and mobile radios currently in use will be measured
against the knowledge that they may have to be replaced over 5 years; such efforts should
result is some capital savings over the next several years.
SUMMARY OF EQUITY AND PROJECTS' RESERVES
The ending equity has been classified as 'unrestricted' in Exhibit A as of December 31,
2014. The components of the Radio Communications Fund equity follow:
• Depreciation. Funding of depreciation: $13.2 million has been set aside
currently in equity to be used towards future capital projects generally considered
to be the replacement of the mobile and portable units in the past. The amount
necessary to cover the mobile and portable replacements is short between $5.0
million to $6.8 million for the future capital needs through FY-2022 depending
upon events affecting the Fund. The difference will need to be accumulated over
the next half dozen years to meet future capital needs.
• Computer-Aided Dispatch (CAD). The CAD software implementation:
$3,500,000, less costs incurred of $2,192,404 for a net remaining amount of
$1,307,596. The project is expected to complete with a favorable variance of
approximately $1 0 million by the end of first quarter of FY 2016.
• Radio Console Replacement. $3,000,000 for equipment replacement beginning
in FY-2016. With existing funding levels of $.20 per month per line an additional
$5,000,000 for this need until the amount reaches $8.0 million (or a better
estimate is obtained).
• Total Equity. Total equity for the Radio Communications Fund is $17,788,706
as of December 31, 2014 ($17,507,596 in designated for projects with the
remaining amount in unrestricted equity).
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The radio console and NG-911 projects will likely require the use of the reserves
originally set aside for replacement of the portable and mobile radios; such project will
start in FY-2018 and likely not finish until FY-2022. Given the delay in this portable and
mobile radio replacement effort, it should give the County the time frame necessary to
replace the presently reserved amounts to be used for the radio consoles and NG-911
(depending upon the number of dispatch centers requiring replacement) before the funds
are needed for this project.
REVENUE / OPERATING ANALYSIS
The County operations are largely funded from two sources: 9-1-1 charges (e.g. fees and
formerly called 'telephone operating surcharge') imposed on County residents and
businesses at $.20 per communication device per month, as defined. In addition, there is
a companion State-wide fee charged to all State residents and allocated back to the
counties on a set funding formula. Only the County-imposed 9-1-1 charges (fees) can be
adjusted by the Board of Commissioners for the period ending June 30, 2015.
The annual amount of the surcharge revenue for the year ended September 30, 2014 was
$5,223,248, received from the State and County 9-1-1 charges (fees). The two
components are: State 9-1-1 charges (fees) of $1,780,436 and County 9-1-1 charges
(fees) of $3,442,812. At $.20 per device, the calculated annual dollar benefit of a penny
on the fees is $172,141 (rounded = $175,000).
The quarter ended December 31, 2014 reflected surcharge revenues of $1,309,494 against
an operating budget for the quarter of $1,300,000 - for favorable variance of $9,494. The
favorable variance can be attributable to more aggressive collections by the State on
stores selling prepaid telephone cards. However, it is expected that 9-1-1surcharge
revenues will continue to fluctuate such that the fund would incur unfavorable variances
in the future due to consumers moving away from contracts to prepaid services. Prepaid
services are not presently subject to local surcharge but included in the state surcharge
(although the State has entertained discussions have occurred to do so from time to time).
Over the last several years, the County's radio shop relied heavily (and to a lesser extent
in recent years) on outside consultants to assist in maintaining the County's radio
equipment. During the past several years, the County invested in County-employee
training such that the reliance on outside consultants and repair shops could be avoided.
In late FY-2012, the radio shop now is responsible for maintenance; such reliance on in-
house efforts should help in controlling this operating cost. In addition, it will assist the
County in extending the useful life of the present equipment if necessary later on in the
decade.
The County's Radio Communications Fund has financially assisted local units when
dispatch centers were consolidated. The assistance involves the acquisition of equipment
and software, technical consulting support, networking, movement of equipment and
similar costs eligible under State statutes to be charged against the operating surcharge
revenues. In addition the County has recently provided an incentive of $50,000 to local
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units of government in return for the local unit's agreement to permanently dissolve its
dispatch (with the local unit funding the entire stand-up if they chose to restore it) and the
return of all equipment to the County (both County-owned and locally acquired).
The County's return on a dispatch center consolidating will be to avoid future equipment
replacement costs that are presently anticipated in the above projected capital needs and
now, the on-going NG-9-1-1 operating costs. It would also reduce the local unit
operating costs relating to the future NG-911 system. At present, only one small dispatch
center is considering consolidation. The County will continue to fmancially assist and
incent the local units when a dispatch center consolidation is under consideration — either
with the Sheriff's Office or between local dispatch centers.
In December 2012, the State imposed new minimum qualifications on dispatch personnel
that may be difficult for the smaller dispatch centers to honor, particularly when
temporary duty police officers are used as dispatchers. While there would be no
immediate need to consolidate as the local units grapple with these new standards, it is
highly likely that the smaller dispatch centers, facing sanctions from the State, may
choose to consolidate dispatch centers with surrounding communities or the Sheriff's
Office. The smaller dispatch centers may be struggling to comply with these standards.
Failing to comply with these state standards could expose the local units to the litigation
costs.
The FY-2014 operating statements indicated an operating loss is being incurred for the
Radio Fund of $5.7 million; however, this loss was primarily due to the non-cash
depreciation expense (essentially this amount would largely be related to the funding of
depreciation set aside in a reserve within equity as noted above). The depreciation
expense is a non-cash transaction based on the capital costs of equipment acquired in
prior years. No outstanding long-term debt has been issued against these assets.
Essentially, the cash funding of a portion of the deprecation expense should assist in
future capital needs of the Radio Fund.
The quarter ended December 31, 2014 had an operating loss of $1,054,000; however,
depreciation charged for the quarter was $1,414,000. The amount of positive cash flow
arising from the funding of depreciation (estimated at $360,000 for the quarter -
$1,414,000 less $1,054,000). The overall 'positive' cash flow may have declined but it is
still providing resources to be set aside for future capital needs.
OPERATING SURCHARGE FOR JULY 1, 2015 TO JUNE 30, 2016
The County's three-year operating budgets for the Radio Communications Fund are
based on the $.20 per device per month, as defined, as the principal revenue source for
the FY-2015 through FY-2017 budgets adopted by the Board of Commissioners. The
operating budgets reflect a 'planned use of equity' annually of $3 4 million for FY 2015,
$3.0 million for FY 2016, and $3.0 million for FY 2017. The actual operations for first
quarter of FY-2015 are slightly unfavorable than the adopted budget. The 'planned use
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of equity' should still provide a positive cash flow as the depreciation expense for these
periods exceed the operating losses.
In addition, the anticipated surcharge revenue expected to be received may appear
sufficient for near term providing no capital projects are initiated, but will not cover
future estimated capital and operational costs described in the above projects. An
increase in funding is required. If the 9-1-1 surcharge is not increased then the fund can
expect an estimated cash shortage of $3.4 million beginning in FY-2019 and continue to
increase significantly through FY- 2022. Thus, the current 9-1-1 rate of $.20 will need to
be adjusted based on current projections of future capital needs such that an increase in
the rate of $.08 would be considered adequate for the proposed 9-1-1 surcharge (e.g.
Telephone Operating Surcharge) for July 1, 2015 to June 30, 2016 and until such time as
the County can firm up the radio console equipment and NG-911 costs.
Attached are several documents as follows:
• Exhibit A — Radio Communication Fund — Financial Statements and Schedules
for the Quarter Ended December 31, 2014. This letter of transmittal is the normal
quarterly financial statements submitted to the Radio Oversight Committee and
other CLEMIS members reflecting the balance sheet, income statement and other
schedules along with explanation relating to the operations.
• Exhibit B — Ten-year forecast of the balance sheet status, income statement and
statement of cash flow based on the assumptions as noted in this letter of
transmittal including an $.08 increase in 9-1-1 charge (fee) effective July 1, 2015
and another increase of $.10 in 9-1-1 charge (fee) effective July 1, 2016. As
noted and with these increases and based on the capital costs needed for 21
dispatch centers, the amount results in a marginal cash balance of under $1.0
million as of September 30, 2022.
• Exhibit C- Estimated Start-Up and On-going Costs. This exhibit identifies the
nature of the operating and capital costs to be incurred through the anticipated 9-
1-1 charge (fee) increases noted in Exhibit B and those that would be the start-up
and on-going local dispatch cost responsibility by dispatch center.
RADIO OVERSIGHT COMMITTEE
On March 31, 2015 a Radio Oversight Committee was held to discuss the 9-1-1 charg
(fee) proposal as noted above at an $.08 per month per line, as defined, increase over the
$.20 per month current level effective July 1, 2015 (for FY-2016). In addition but limited
by a general lack of specific information on cost and timing of the projects is an
anticipated additional $.10 per month per line, as defined, that may be needed to fully
fund the exiting level of dispatch centers and the projected cost noted effective on July 1,
2016 (for FY-2017). When the timing and costs are known for the radio console and
NG-911 project later on this calendar year, the projected 9-1-1 charge (fee) as of July 1,
2016 will be communicated as part of the quarterly CLEMIS financial reports.
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SUMMARY
Given the above discussions and the financial status of the Radio Communications Fund
as of December 31, 2014, the 9-1-1 charge (fee) rate of $.20 is adequate to address
operating and capital needs over the period July 1, 2015 through June 30, 2016 assuming
no significant capital needs. However, the $.20 rate is not adequate for the capital and
operational needs of the Radio Communications Fund for the FY-2016 through FY-2022
given the radio console, NG-911 and other lesser projects capital needs.
Since the State statutes require the County administration and Board of Commissioners to
review the adequacy of the 9-1-1 charge (fee) annually and the capital program covers an
extended period, it has been determined that a rate increase of $.08 is necessary
beginning July 1, 2015. Additional financial analysis will be conducted as refined costs
are known for use in determining future rate amounts particularly as the radio console
and NG-911 costs are finalized over the next year and the number of dispatch centers
remaining for replacement are known.
Assuming no reduction of dispatch centers (presently at 21 dispatch centers), a radio
console cost of approximately $8 million and the NG-9-1-1 capital and operating costs
specified previously, an additional $.10 per month surcharge (bringing the total to $.38
per month) would be required starting July 1, 2016 in order to cover these capital costs,
fund the replacement of the portable and mobile radios and other nominal capital costs.
The Board of Commissioners has authority only up to $.42 per month per line as defined
with any amounts above this level being required to be approved by a vote of the
residents.
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COUNTY MICHIGAN
EXHIBIT A
L BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
Robert J. Daddow
Special Projects Deputy County Executive
TO:
FROM:
Radio Oversight Committee
Jamie Hess
Jeff Werner
Pat Coates
Steve Murphy
Holly Conforti
Shawn Phelps
Bob Daddow
SUBJECT: Radio Communication Fund — Financial Statements and Schedules
For The Quarter Ended December 31, 2014
DATE: March 27, 2015
This letter of transmittal covers the financial statements as of and for the quarter ended
December 31, 2014 for the Radio Communications Fund. The following financial
statements are attached:
• Statement of Net Assets (Exhibit A). This statement provides the assets,
liabilities and net assets (e.g., equity) of the Radio Communications Fund.
• Statement of Revenues, Expenses, and Changes in Net Assets (Exhibit A-1). This
statement compares the adopted budget to actual operating results.
• Operating Transfers In and Out (Exhibits A-2 and A-3) - the operating transfers in
and out to the General, CLEMIS Operating and Information Technology Funds
represent a cost reimbursement for the administrative and other support of the
radio communications system and operations as herein explained and the Fund's
cost reimbursements from other funds for services and equipment provided.
• Brief Explanations (Exhibit A-4) — a set of explanations of operating budget to
actual variances included in the financial statements and schedules above.
The Radio Communications Fund has a number of planned projects as outlined in a
memorandum to the Finance Committee dated March 25, 2014. This memorandum was
issued in connection with the annual Board approval of the telephone operating surcharge
(fee) required of State statutes. The Board of Commissioners approved the extension of
the $.20 per communication line per month, as defined, for the period July 1, 2014 to
June 30, 2015. The Radio Communication operating budgets for FY-2015 and beyond,
EXECUTIVE OFFICE BUILDING 41 WEST • 2100 PONTIAC LAKE RD DEPT 409 • WATERFORD MI 48328-0409 • (248) 858-1650 • FAX (24W-9215
EMAIL: daddowr@oakgov.com
based on $.20 telephone operating surcharge (fee), has been determined to be insufficient
to address the Fund's operations, maintenance and capital needs.
The County is presently in the planning phase associated with the telephone operating
surcharge (fee) for the period July 1, 2015 to June 30, 2016. This fee will require the
Board of Commissioners' approval prior to the mid-May 2015 due date for submission of
the statutory State report. A separate telephone operating surcharge memorandum is in
the process of being completed that will outline the operating, maintenance and capital
needs, including a proposed surcharge fee for the 2016 fiscal period. It is anticipated that
the fee proposal will be reviewed by the County Executive's Budget Task Force and
Radio Communications Oversight Committee prior to submission to the Finance
Committee meeting to be held in mid-April 2015.
At present, the radio communication system has 53 towers (County owned, locally owned
by governmental units within the County or leased space from private vendors), 1,834
mobile radios and 4,263 portable radios in use. Radio consoles are located in 21 public
safety dispatch centers (PSAPs) throughout Oakland County. There are 14 hospital
emergency rooms tied to the County's radio communication system and a number of
private ambulance companies as well. Some non-public safety units use the County's
radio system for a monthly operating fee.
Summary comments on the major projects anticipated in the next half dozen years
requiring funding (which will be outlined in the March 2015 memorandum in more
detail) follow:
• Radio Consoles: because the County distributed the radio consoles located in the
dispatch centers first (circa 2003 through roughly 2006), this equipment is aging
rapidly. Replacement is planned for FY 2016 through FY 2017. While the
County has yet to assemble an estimated cost of the replacement of this
equipment based upon a faunal study, the cost could approach $6 million to $8
million, depending upon the number of dispatch centers remaining in Oalcland
County at the time of replacement. The original deployment of consoles cost
roughly $5.9 million for 31 dispatch centers. There are now 21 dispatch centers.
Presently, there is only one dispatch center considering consolidation in the
County.
At December 31, 2014, the unreserved equity-designated for projects includes
$3.0 million set aside to address the console replacement anticipated to be
purchased and installed in FY 2016. Additional reserves of up to $5 million will
be needed for the installations in FY-2017 depending upon the number of dispatch
centers still in operation at that time.
• Mobile / Portable Radios: last year, County administration was notified that the
radio communications vendor will no longer support the mobile and portable
radios at the end of calendar 2017. While the County administration has been
notified that the radios will be end-of-life, history would suggest that few
2 15
governmental units (unlike the County) set money aside for replacement
equipment. As such, as the end-of-life date closes in, governments seek federal /
state assistance and / or bring pressure on the vendor to delay the actual end-of-
life date. While the County cannot be assured of a delay in the future, the
County's maintenance efforts, ability to use the equipment beyond 2017 and the
potential delay of the actual end-of-life date suggests that the actual replacement
period would be delayed, potentially to well beyond FY-2018.
At September 30, 2014, the aggregate original cost of the mobile and portable
radios was $17.36 million. The County has restricted equity relating to
depreciation in the amount of $13.2 million as of December 31, 2014, but needs
to continue to set aside additional funds of $6.8 million over the next 4 to 5 years
to ensure that there are sufficient available resources to replace the mobile and
portable radios beginning in FY 2018 through anticipated completion (perhaps
FY-2022).
• Computer-aided Dispatch Project: the County's computer-aided dispatch
center equipment software for CLEMIS is being re-written as the vendor-acquired
software is no longer easily maintained. The software licensing to maintain this
equipment is very costly. The County started this project in FY-2013 with an
anticipated completion in FY-2016. The estimated cost of this project was $3.5
million, but it is expected to complete with a favorable variance of approximately
$1.0 million. In addition, $450,000 will be set aside and considered a sufficient
amount to complete the project by FY-2016. Any unexpended equity currently
reserved for this project will be reallocated to other projects when the computer-
aided dispatch project is fully completed.
• NG-911 Project Needs: in FY-2009-2010, the County acquired new call-taking
equipment (NG-911 Project) on behalf of the local public safety dispatch centers.
Unlike older telephony-based call-taking equipment, NG-911 systems are IP-
based software-driven systems and can be expected to have a shorter useful life
that earlier systems before requiring a technology refresh. It is therefore
anticipated that the call-taking equipment at the 21 local PSAPs will need to be
replaced in the FY-2016-2018 timeframe. Additionally, the County needs to
prepare for the establishment of a local NG-911 ESInet (Emergency Services IP
network) through either a leased commercial network or the
enhancement/expansion of the present OakNET fiber, as the present 911 network
provider gradually migrates away from the legacy copper-wire trunks.
Radio Communications and Information Technology staff has begun a needs
analysis for call-taking equipment and an NG-911 ESInet so that costs can be
quantified in FY-2015. With the assistance of an outside consultant, a request for
proposal has been prepared and will be released shortly; such proposals will assist
the County in understanding the ultimate cost of this project. Presently, the Fund
has set no amounts aside for these capital needs. The project cost and funding
3
16
needs will be considered in the coming months with the assessment of the
operating surcharge starting on July 1, 2015.
Comments concerning the financial information follow:
• The Fund has approximately $17.1 million in cash, investments and receivables,
net of liabilities and excluding prepaid expenses and inventories at December 31,
2014 ($16.8 million at December 31, 2013).
• The ending equity has been classified as 'unrestricted' in Exhibit A as of
December 31, 2014. The components of the Radio Communications Fund equity
are as follows:
• Funding of depreciation: $13,200,000 has been set aside currently in equity to
be used towards future capital projects. The amount is short by between $4.0
million to $6 8 million for the future capital needs through FY-2020
depending upon events affecting the Fund (consolidation of dispatch centers
for example) between now and then. The difference will need to be
accumulated over the next half dozen years to meet future capital needs.
• PSAP software implementation: $3,500,000 less costs incurred of $2,192,404
for a net remaining amount of $1,307,596.
• Console replacement - $3,000,000 for equipment replacement beginning in
FY-2016. Anticipating setting aside an additional $5,000,000 for this need
until the amount reaches $8 0 million (or a better estimate is obtained).
• Total unrestricted equity for the Radio Communications Fund is $17,788,706
($17,507,596 designated for projects with the remaining amount in
unrestricted equity).
The County received a letter, along with instructions, to perform an audit of the 9-1-1
operations in accordance with State statutes. This is the first such time a request was
made by the State. The requirements outlined in the letter was determined to be
impossible to complete and the County, along with other local units, has been working
with the Michigan State Police to address the proper requirements of an audit of the 9-1-1
operations relying on telephone charges (e.g. operating surcharges) in the future. The
State has yet to complete the revised audit instructions and no Fund audit is expected in
the near future.
Should there be any questions concerning the above, please contact me.
4
17
County of Oakland
Radio Communications Fund
Statement of Net Assets EXHIBIT A
December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents
Accrued interest on investment
Due from other governments
Accounts receivable
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Capital projects in progress
Tower rights
Equipment
Structures
Less accumulated depreciation
Total capital assets (net of accumulated depreciation)
Total assets
LIABILITIES
Current liabilities:
Vouchers payable
Accounts payable
Due to municipalities
Def6rred revenue
Total current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted-designated for projects
Unrestricted
Total net assets
$ 16,156,803.36
96,683.09
19,633.16
1,411,399.59
506,756.20
228,555.14
18,419,830.54
1,360,432.97
8,585,770.20
26,340,523.30
12,953,932.08
(22,544,197.07)
26,696,461.48
45,116,292.02
142,375.76
127,066.09
133,771.95
227,911.01
631,124.81
631,124.81
26,696,461.48
17,507,595.64
281,110.09
$ 44,485,167.21
18
County of Oakland
Radio Communications Fund
Statement of Revenues, Expenses, and Changes in Net Assets
For the Three Months Ended December 31, 2014
EXHIBIT A-1
2015
Amended Percent of
Budget Revenue Allotment
Year to Date
Favorable
Percent of (Unfavorable)
Actual Revenue Variance
Operating revenues:
E 911 Surcharge - Radio system
Antenna site management
Leased equipment
Parts and accessories
Outside agencies
Productive labor
Miscellaneous
Total operating revenue
$ 5,200,000.00 86.94% $ 1,300,000.00 $ 1,309,493.99
325,000.00 5.43% 81,250.00 75,058.84
230,000.00 3.85% 57,500.00 56,933.90
150,000.00 2.51% 37,500.00 56,984.28
70,000.00 1.17% 17,500.00 16,148.04
6,000.00 0.10% 1,500.00 2,409.00
0.00% - 5.50
5,981,000.00 100.00% 1,495,250.00 1,517,033.55
86.32% $
4.95%
3.75%
3.76%
1.06%
0.16%
0.00%
100.00%
9,493.99
(6,191.16)
(566.10)
19,484.28
(1,351.96)
909.00
5.50
21,783.55
Operating expenses:
Salaries 649,527.00 10.86% 162,381.75 148,699.80 9.80% 13,681.95
Fringe benefits
Contractual services:
Communications
Contracted services
Electrical service
Equipment maintenance
Freight and express
Indirect costs
Laundry and cleaning
Membership, dues
Personal mileage
Printing
Professional services
Rebillable services
Software rental lease purchase
Software support maintenance
Special projects
Tower charges
Travel and conference
Workshops and meeting
Total contractual services
371,849.00
225,000.00
100,000.00
315,000.00
8,500.00
196,000.00
700.00
1,000.00
3,500.00
500.00
800,000.00
500.00
30,000.00
40,000.00
390,000.00
22,500.00
100.00
2,133,300.00
6.22% 92,962.25
3.76% 56,250.00
0.00%
1.67% 25,000.00
5.27% 78,750.00
0.14% 2,125.00
3.28% 49,000.00
0.01% 175.00
0.02% 250.00
0.06% 875.00
0.01% 125.00
13.38% 200,000.00
0.01% 125.00
0.50% 7,500.00
0.00%
0.67% 10,000.00
6.52% 97,500.00
0.38% 5,625.00
0.00% 25.00
35.67% 533,325.00
84,706.59 5,58%
65,406.86
5,285.30
15,625.60
66,280.12
1,199.33
36,944.00
126.16
846.16
178,382.88
4,897.24
59,726.00
9,832.17
98,725.53
543,277.35
8,255.66
(9,156.86)
(5,285.30)
9,374.40
12,469.88
925.67
12,056.00
48.84
250.00
28.84
125.00
21,617.12
(4,772.24)
(52,226.00)
(9,832.17)
10,000.00
(1,225.53)
5,625.00
25.00
(9,952.35)
4.31%
0.35%
1.03%
4.37%
0.08%
2.44%
0.01%
0.00%
0.06%
0.00%
11.76%
0.32%
3.94%
0.65%
0.00%
6.51%
0.00%
0.00%
35.81%
Commodities:
Dry goods and clothing
Expendable equipment expense
Metered postage
Office supplies
Parts and accessories
Shop supplies
Small tools
Total commodities
1,900.00
100,000.00
126.00
5,000.00
200,000.00
12,000.00
5,000.00
324,026.00
475.00
25,000.00
31.50
1,250.00
50,000.00
3,000.00
1,250.00
81,006.50
7,379.40
6.66
682.00
51,696.49
8,971.60
5,125.68
73,861,83
475.00
17,620.60
24.84
568.00
(1,696.49)
(5,971.60)
(3,875.68)
7,144.67
0.03%
1.67%
0.00%
0.08%
3.34%
0.20%
0.08%
6.42%
0.00%
0.49%
0.00%
0.04%
3.41%
0.59%
0.34%
4.87%
Depreciation:
Equipment, structures and tower rights 3,912,925.00 65.42% 978,231.25
Total depreciation 3,912,925.00 65.42% 978,231.25
1,414,414.50 93.24% (436,183.25)
1,414,414.50 93.24% (436,183.25)
Internal services:
Building space allocation
Info Tech CLEMIS
Info Tech Development
Info Tech Operations
Info Tech Managed Print Svcs
Insurance Fund
Maintenance Department Charges
Motor Pool Fuel Charges
Motor Pool
Telephone Communications
Total internal services
Total operating expense
Operating income (loss)
25,472.00
1,201,000.00
208,657.00
2,547.00
16,540.00
35,000.00
9,411.00
26,466.00
31,408.00
1,556,501.00
8,948,128.00
(2,967,128.00)
0.43%
20.08%
0.00%
3.49%
0.04%
0.28%
0.59%
0.16%
0.44%
0.53%
26.02%
149.61%
-49.61%
6,368.00
300,250.00
52,164.25
636.75
4,135.00
8,750.00
2,352.75
6,616.50
7,852.00
389,125.25
2,237,032.00
(741,782.00)
6,368.01
217,393.53
317.00
55,644.00
199.76
660.72
6,747.30
2,872.20
8,169.65
7,623.46
305,995.63
2,570,955.70
(1,053,922.15)
0.42%
14.33%
0.02%
3.67%
0.01%
0.04%
0.44%
0.19%
0,54%
0.50%
20.17%
169.47%
-69.47%
(0.01)
82,856.47
(317.00)
(3,479.75)
436.99
3,474.28
2,002,70
(519.45)
(1,553.15)
228.54
83,129.62
(333,923.70)
(312,140.15)
19
County of Oakland
Radio Communications Fund
Statement of Revenues, Expenses, and Changes in Net Assets
For the Three Months Ended December 31, 2014
2015
Amended Percent of
Budget Revenue Allotment
Year to Date
Favorable
Percent of (Unfavorable)
Actual Revenue Variance
Nonoperating revenues (expenses):
Planned use of fund balance 3,249,728.00
Income from investments 180,000.00
Total nonoperating revenues (expenses) 3,429,728.00
Income (loss) before transfer 462,600.00
Transfers in 23,400,00
Transfers out (486,000.00)
Change in net assets -
Total net assets - beginning
Total net assets - ending
54.33% 812,432.00
3.01% 45,000.00 33,360.91
57.34% 857,432.00 33,360.91
7.73% 115,650.00 (1,020,561.24)
0.39% 5,850.00 7,900.00
-8.13% (121,500.00) (121,500.00)
0.00% $ (1,134,161.24)
45,619,328,45
$ 44,485,167.21
0,00% (812,432.00)
2.20% (11,639.09)
2.20% (824,071.09)
-67.27% (1,136,211.24)
0.52% 2,050.00
-8.01%
-74.76% $ (1,134,161.24)
20
Description Amount
RA:PARgpq.lmv.NIQATION-4.;.iFp:NR5.0:09
..0441.00i7 ,:irt FscaI ,,•Yea20-1:0
EXHIBIT A-2
Transfer from the General Fund approved on Resolution 14-200 $ 7,800.00
for court security radios.
Transfer of the remaining balance approved on Resolution 14-017 100.00
for radios on the prisoner transportation bus.
Total $ 7,900.00
21
Description Amount
EXHIBIT A-3
Budgeted Operating Transfer from Radio fund to Info Tech fund for
1st quarter FY 2015 OakNet operation costs.
Budgeted Operating Transfer from Radio Communications fund to
CLEMIS fund for 1st quarter FY 2015 administrative support
Budgeted Operating Transfer from Radio Communications fund to
Info Tech fund for 1st quarter FY 2015 Help Desk support
59,000.00
50,000.00
12,500.00
Total $ 121,500.00
22
EXHIBIT A-4
RADIO COMMUNICATIONS FUND 53600
Fiscal Year 2015 — 1st Quarter
Brief Explanation of "Actuals"
Following are some comments regarding Radio Communications fund's 1st quarter Fiscal Year
2015 financial statements.
STATEMENT OF NET ASSETS
• Radio Communications fund reports all monetary assets as Cash. Available cash is invested
and managed by the Treasurer as a pool. The Treasurer's Office allocates interest earned to
the participating funds on a monthly basis.
• Due from other governments is the amount due from municipalities for leased equipment.
• Accounts receivable includes $1,292,000 for accrued E-911 operational surcharge revenue
which is paid to the County quarterly. The remaining balance is rent due from antenna site
co-locators and amounts due from non-governmental external users for leased equipment.
• Inventories are parts and accessories used to maintain customer equipment and the radio
system; including equipment purchased for the completion of the radio system.
• Prepaid items are rent paid in advance per the lease agreements for co-location of radio
system equipment and advanced maintenance contract payments.
• Effective FY 2002, the Radio Communications fund was classified as an Enterprise Fund
with a capitalization threshold for equipment of $5,000. The 821 Milz radio system was
fully operational on July 1, 2010 and all related asset expenditures for equipment and radio
tower structures were originally capitalized with a ten-year life. The useful-lives for all
portable and mobile radios were updated in Fiscal Year 2014 to end in 2017, when this
equipment will no longer be supported.
• Tower rights are the County's rights to co-locate equipment on towers constructed by the
Radio fund on land owned by various municipalities. Ownership of the towers was
transferred to the municipalities upon completion of construction in 2010 in exchange for
ongoing rights to place radio equipment on those towers.
• Vouchers payable and Accounts payable are accrued first quarter expenses and prior year's
over-payments by E911 surcharge filers.
• Due to municipalities is the City of Novi's share of lease payments for co-locators on Novi's
antenna site.
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
Revenues:
• The Board of Commissioners Resolution 14-071 maintained the E-911 surcharge rate of
$0.20 for the period covering July 1, 2014 through June 30, 2015. The revenue reported for
this quarter is approximately one fourth of the annual budget.
Prepared by: Y. Tipton — Fiscal Services 23
RADIO COMMUNICATIONS FUND 53600
Fiscal Year 2015 — 1st Quarter
Brief Explanation of "Actuals"
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (Cont'd)
• Antenna site management revenue, which is for telecommunications companies that have
contracted with Oakland County to place equipment on county-owned towers, is slightly
unfavorable. A portion of this unfavorable variance is for one company that was not billed in
Fiscal Year 2014 and Fiscal Year 2015. Oakland County's Corporation Counsel is working
with this organization to resolve pending contract issues.
• Parts and accessories revenue is higher than budget due to increased repair requests.
Expenses:
• Salary variance is favorable due to lower than anticipated overtime, on-call hours and
unfilled positions.
• Communications cost is unfavorable due to additional connectivity costs for several cell
tower sites not included in budget preparation.
• Contracted services are for leased space at the Oakland County International Airport.
• Equipment repairs and maintenance expense is for maintenance and repairs on the Radio
fund's communications equipment.
• Indirect cost expense is based on the County's Indirect Cost allocation. It includes Human
Resources, Payroll, Treasurer, Accounting, and Budgeting and Administrative services.
• Professional services expense is for costs relating to the CAD Upgrade project and for an
Oracle Migration Readiness Assessment (OMRA). All expenses related to the CAD project
are recognized in Radio fund, while CLEMIS fund capitalizes those costs and receives
contributed capital.
• Software rental, lease purchase is unfavorable due to necessity of software purchases after
the budget process was complete.
• Software support maintenance is for Oracle software maintenance.
• Special projects expense is favorable due to the timing of projects. The budget for this line
item is for costs associated with tower painting.
• Tower charges represent our payment for tower rental agreements.
• Travel and conference expense is favorable due to timing of expenditures and cost-cutting
efforts.
• Dry goods and clothing is favorable due to cost-cutting measures.
• Expendable equipment is for equipment that falls under the threshold of a capitalized asset.
• Depreciation is unfavorable due to the reduction of useful-lives for all portable and mobile
radios.
• Internal service expense is favorable (overall) based on actual usage that falls below
budgeted expectations.
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (Cont'd)
Operating Revenues and Expenses:
Prepared by: Y. Tipton —Fiscal Services 24
RADIO COMMUNICATIONS FUND 53600
Fiscal Year 2015 — 1st Quarter
Brief Explanation of "Actuals"
• Planned use of fund balance represents the amount that is an offset to total revenue to balance
Radio fund's fiscal year 2015 budget per Fiscal Services management.
• Income from investments represents the portion of income from cash managed and allocated
by the Treasurer's Office to Radio fund. The deficit indicates a lower than anticipated
monthly cash balance.
• Transfers in includes: $7,800 from the General fund approved on Resolution 14-200 for court
security radios and the remaining balance of $100 approved on Resolution 14-017 for
prisoner transportation bus radios.
• Transfers out includes $50,000 for administrative support provided by the CLEMIS fund,
$12,500 for Help Desk support provided by the Information Technology fund and $59,000 to
the Information Technology fund for OakNet operation costs.
Prepared by: Y. Tipton — Fiscal Services 25
19,298,538.00 17,811,069.00 19,010,805.18 13,648 081.11 11,835846.72 10,939,115.73 10,245,075.75 8,530,554.84 5,752.481.44 2,899,125.18 47,812,657.00 49,235,509.00 49,685,509.00 56,525,239.00 60,816,239.00 64,101,239.00 67,101,239,00 71,101,239,00 76,101,239.00 81,101,239.00 15 408,591.00 21,129,783.00 26 827 441.00 33 019,488.00 39 775,231.00 45 050 060.00 50 126,710.00 55,057,560,00 58,640,067.00 62.512,310.00 32,404,066.00 28,105,726.00 22,858,068.00 23 505 751.00 21 041 008.00 19 051,179.00 16,974 529.00 16,043 679.00 17,461,17200 18,588,929.00 51,702,604.00 45,916,795.00 41,868,873.18 37,153,832.11 32,876,554.72 29,990,294.73 27 219,604.75 24,574,233.84 23,213,653.44 21,488,057.18 51 331 928.00 45,619,328.00 41,415.137.00 36,572,832.70 32,274,488.79 29,380,000.31 26,600,418.30 23,953,661.95 22,585,649.61 20,851,94227 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 610,294 42 19,051,179.00 10,328,821.31 619 18645 16,974,529.00 9,625,889.30 620,571.88 16,043,679.00 7,909,982.95 628,003.83 17,461,172.00 5,124,477.61 636,114.91 18,588,929.00 2,263,013.27 50,020.00 59,238.00 59,238.00 59,238.00 59,238.00 43,744.00 145,074.00 0.00 0.00 133,772.00 0.00 0.00 133,772.00 0.00 0.00 133,772.00 0.00 0.00 133,772.00 0.00 370,676.00 297,467.00 453,736.18 580 999.41 602,065.92 32,404,066.00 18,927,862.00 28,105,726.00 17,513,602.00 22,858,068.00 18,557,069.00 23,505,751.00 13,067,081.70 21,041,008.00 11,233,480.79 59,238.00 417,284.42 0.00 133,772.00 0.00 59,238.00 0.00 133,772.00 0.00 59,238.00 0.00 133,772.00 0.00 59,238.00 434,993.83 0.00 133,772.00 0.00 59,238.00 443,104.91 0.00 133,772.00 0.00 426,176.45 427,561.88 131,838.00 104,457.00 260,726.18 387,989,41 409,055.92 Actual Actual Projected Projected Projected Projected Projected Projected Projected Projected FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 16,524,736.00 0.00 92375.00 1,738,817.00 99,032.00 0.00 0.00 551,301.00 192277.00 0.00 15,784,623,00 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,776.00 0.00 16,984,359.18 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,776.00 0.00 11,621,635.11 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,776.00 0.00 9,809,100.72 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,776.00 0.00 8,912,669.73 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,776.00 0.00 8,218,629.75 0.00 100,087.00 1,165,320.00 19,507,00 0.00 0.00 506,756.00 234,776.00 0.00 6,504,108.84 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,755.00 234,776.00 0.00 3,726,035.44 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,776.00 0.00 872,682.18 0.00 100,087.00 1,165,320.00 19,507.00 0.00 0.00 506,756.00 234,775.00 0.00 COUNTY OF OAKLAND EXHIBIT B RADIO COMMUNICATIONS FUND Statement of Net Assets ASSETS Current Assets: Cash - Operating Cash - Short-term Investments Accrued Interest Receivable Accounts Receivable Due from Municipalities Due from Road Commission Due from Other Funds Inventory at Cost Prepaid Expenses Deferred Charges Total Current Assets Property and Equipment at Cost Equipment & Capitalized Computer Software 2) Less: Accumulated Depreciation Property and Equipment-Net TOTAL ASSETS LIABILITIES AND FUND EQUITY Current Liabilities: Vouchers Payable Accounts Payable Other accrued liabilities - assets Due to Other Funds Due to Municipalities Deferred Income Total Current Liabilities Net Assets: Invested in Capital Assets Unrestricted 1) Total Net Assets formula check NOTES: 1) Unrestricted includes an amount for Unrestricted Designated for Projects as of fiscal year end. This amount is separate in reports provided to Management but reported as one under Unrestriced in the CAFR. 2) Includes Capital Asset Purchases of: FY15 $250,000 CAD Rewrite & 200,000 Cell Site Enhancements FY 16 $150,000 CAD Rewrite, $200,000 Cell Site Enhmts, $4,000,000 Console Upgrade, $2,636,920 ESINet Startup Costs (CC prorated portion) FY 17 $4,000,000 Console Upgrade & $291,000 WAN Upgrade FY 18 $3,000,000 Radio Replcmt and $285,000 WAN Upgrade, FY19 $3,000,000, FY20 $4,000,000, FY21 $5,000,000, FY22 $5,000,000 Radio Replacements 3) RFP for ESINet solution expected in May 2015 - analysis includes estimate and will be updated to reflect final costs in future surcharge analysis for FY16, 03/19/2014 Radio proforma 2015-2016 increase surcharge rate OVERSIGHT MTG-2 (2).xlsx 26
0 0 11,645,339 Detail of Unrestricted-Designated for Projects Equity: 911 IP Funding of Future Projects Radio Replacement CAD Upgrade Cell Site Enhancements Console/backbone replacement WAN Upgrade NG911 replacmUESINet Total Designated for Projects Unrestricted Total Unrestricted before addl surcharge 30,000 15,408,591 2,661,556 0 800,000 0 0 18,900,147 27,715 19,927,862 13,000,000 1,442627 0 3,003000 0 0 17,442,627 70,975 17,513,602 150,000 200,000 4,000,000 0 2,489,730 18,485,069 72,000 18,557,069 0 0 8,704,082 7,876,481 3,000,000 0 0 0 0 4,000,000 0 291,000 285,000 0 0 12,995,082 11,161,481 72,000 72,000 13,067,082 11,233,481 7,256,821 3,000,000 0 0 0 0 10,256,821 72,000 10,328,821 0 5,553,889 4,000,000 0 0 0 0 0 9,553,889 72,000 9,625,889 0 2,837,983 5,000,000 0 0 0 0 0 7,837,983 72,000 7,909,983 0 52,478 5,000,000 0 0 0 5,052,478 72,000 5,124,478 291,000 0 291,000 1,972,013 2,263,013 Actual FY 2013 Actual FY 2014 Projected FY 2015 Projected FY 2016 Projected FY 2017 Projected FY 2018 Projected FY 2019 Projected FY 2020 Projected FY 2021 Projected FY 2022 formula check 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Note: This does not represent actual cash outlays but represents the ending equity balance (redesignated) at the end of each fiscal year. Supplemental Notes: County 911 surcharge fees as of 9130114 Current DC 911 rate Est Number of Lines/Devices Additional .01 Rounded 3,442,812 $0.20 17,214,060 $172,140.60 $175,000.00 Impact of additonal surcharge revenue: Factor of $.08 increase 7/1115 - 6/30116 8 350,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 $10,150,000 Factor of 5.10 increase 7/1116 - 6/30/17 10 437,500 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000 910,937,500 350,000 1,837,500 3,150,000 3,150,000 3,150,000 3,150,000 3,150,000 3,150,000 $21,087,500 03119/2014 _Radio proforma 2015-2016 increase surcharge rate OVERSIGHT MTG-2 (2).xlsx 27
COUNTY OF OAKLAND RADIO COMMUNICATIONS FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS EXHIBIT B-1 Actual Actual Projected Projected FY 2013 FY 2014 FY 2015 (1 FY 2016 (2_ Projected Projected Projected Projected Projected Projected FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 OPERATING REVENUES: E-911 surcharge - Radio system Surcharge Increase begin 7-1-15 G) Leased equipment Antenna site management Outside agencies Parts and accessories Productive labor Miscellaneous Prior years adjustments Sale of equipment Reimbursement General $5,315,072.00 $5,223,248.00 $5,237,976.00 $350,000.00 231,599.00 220,263.00 227,736.00 336,602.00 291,306.00 300,235.00 67,604.00 64,592.00 64,592.00 298,859.00 232,421.00 227,937.00 10,144.00 11,748.00 9,636.00 98.00 600.00 54,526.00 26,640.00 175.00 $5,200,000.00 $1,837,500.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 $5,200,000.00 93,150,000.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 $5,200,000.00 $3,150,000.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 $5,200,000.00 $3,150,000.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 $5,200,000.00 $3,150,000.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 $5,200,000.00 $3,150,000.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 $5,200,000.00 $3,150,000.00 230,000.00 325,000.00 70,000.00 220,000.00 6,000.00 6,314,679.00 6,070,818.00 6,418,112.00 7,888,500.00 9,201,000.00 9,201,000.00 9,201,000.00 9,201,000.00 9,201,000.00 9,201,000.00 TOTAL OPERATING REVENUES OPERATING EXPENSES: SALARIES FRINGE BENEFITS CONTRACTUAL SERVICES: Auction Expense Communications A. Contracted Services Electrical Service Equipment Repairs & Maintenance Freight & Express Indirect Costs B. Laundry and cleaning Maintenance Contract Membership Dues Miscellaneous Periodicals, books, publications Personal Mileage Printing Professional Services Rebillable Services Software Rental Lease Purchases Software SupportIMaintenance F. Special Projects Tower Charges C. Training Related D. Transfers to Municipalities Travel & Conference Uncollectable Accounts Receivable Workshops & Meetings Adjust Prior Years TOTAL CONTRACTUAL SERVICES COMMODITIES: Disposal of Inventory Dry Goods & Clothing Expendable Equipment Expense Metered Postage Office Supplies Parts &Accessories Shop Supplies Small Tools 496,920.00 328,654.00 7.00 211,218.00 600.00 75,868.00 333,957.00 9,062.00 168,092.00 379.00 153,375.00 530.00 0.00 584.00 2,685.00 497.00 508,707.00 146,073.00 211,105.00 13,569.00 378,383.00 0.00 0.00 0.00 73,137.00 85.00 61,264.00 30.00 3,554.00 119,199.00 15,799.00 5,927.00 533,814.00 355,725.00 0.00 250,689.00 3,600.00 74,567.00 354,935.00 3,741.00 173,271.00 492.00 0.00 0.00 0.00 0,00 2,169,00 298.00 496,662.00 0.00 195,092.00 118.00 285.00 393,612.00 50,000.00 0.00 0.00 0.00 961,452.00 0.00 344,158.00 1.00 2,807.00 254,933.00 15,613.00 3,298.00 594,800.00 338,826.00 0.00 261,627.00 5,285.00 62,502.00 265,120.00 4,797.00 147,776.00 505.00 0.00 0.00 0.00 3,500.00 300.00 713,532.00 5,000.00 238,904.00 9,832.00 0.00 390,000.00 0.00 10,000.00 0.00 0.00 0.00 0.00 100,000.00 126.00 2,728.00 200,000.00 15,000.00 5,126.00 660,128.00 375,972.00 0.00 275,000.00 0.00 100,000.00 325,000.00 8,500.00 168,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000.00 500.00 30,000.00 1,324,742.30 4,0,000.00 434,392.00 75,000.00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000.00 126.00 5,000.00 200,000.00 12,000.00 5,000.00 665,534.00 378,075,00 0.00 400,000.00 0.00 100,000.00 325,000.00 8,500.00 .173,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000.00 500.00 30,000.00 1,348,587,90 40,000.00 477,831.00 75,000,00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000,00 126.00 5,000.00 200,000.00 12,000.00 5,000.00 665,534.00 378,075.00 0.00 400,000.00 0.00 100,000.00 325,000.00 8,500.00 178,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000.00 500.00 30,900.00 1,372,862.49 40,000.00 525,615.00 75,000.00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000.00 126.00 5,000.00 200,000.00 12,000.00 5,000.00 665,534.00 378,075.00 0.00 400,000.00 0.00 100,000.00 325,000.00 8,500.00 184,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000.00 500_00 30,000.00 1,397,574.01 40,000.00 578,176,00 75,000.00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000,00 126.00 5,000.00 200,000.00 12,000,00 5,000.00 665,534.00 378,075.00 0.00 400,000.00 0.00 100,000.00 325,000.00 8,500.00 189,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000.00 500.00 30,000.00 1,422,730.34 40,606.60 635,994.00 0.00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000.00 126.00 5,000.00 200,000.00 12,000.00 5,000.00 665,534.00 378,075.00 0.00 400,000.00 0.00 100,000.00 325,000.00 8,500.00 195,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000.00 500.00 30,000.00 1,422,730.M 40,000.00 699,593.00 0.00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000.00 126.00 5,000.00 200,000.00 12,000.00 5,000.00 665.534.00 378,075.00 0.00 400,000.00 0.00 100,000.00 325,000.00 8,500.00 201,000.00 700.00 0.00 1,000.00 0.00 3,500.00 500.00 500,000,00 500.00 30,000.00 1,422,730.34 40,000.00 769,552.00 0.00 0.00 22,500.00 0.00 100.00 0.00 1,900.00 100,000,00 126.00 5,000.00 200,000.00 12,000.00 5,000.00 2,287,828_00 2,960,933.00 2,118,680_00 3,309,434.30 3,506,718.90 3,583,777.49 3.667,050.01 3,680,024.34 3,749,623.34 3,825,582.34 TOTAL COMMODITIES 205,858.00 620,820.00 322,980.00 324,026.00 324,026.00 324,026.00 324,026.00 324,026.00 324,026.00 324,026.00 28
COUNTY OF OAKLAND RADIO COMMUNICATIONS FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS DEPRECIATION E. INTERNAL SERVICES: Maintenance Department Charges CLEMIS Development Into Tech - CLEMIS Info Tech - Development Info Tech - Operations Into Tech - Managed Print Services Mail Room Bldg. Space Cost Allocation Motor Pool Motor Pool Fuel Charges Convenience Copier Telephone Communications Insurance 7,485.00 0.00 328,256.00 19,732.00 226,489.00 0.00 24,278.00 20,546_00 6,462.00 157.00 28,589.00 13,183.00 22,430.00 0.00 1,035,964.00 18,063.00 223,276_00 754.00 0.00 28,133.00 32,306.00 10,743.00 22.00 31,089.00 15,573.00 26,989.00 146,216.00 723,358.00 1,268.00 222676,00 799.00 0.00 25,472.00 26,466.00 9,411.00 0.00 31,408.00 16,540.00 35,000.00 1,201,000,00 208,657.00 2,547.00 0.00 30,282.00 26,466.00 10,596.00 0.00 31,408.00 17,241.00 Projected FY 2017 6,755,743.00 35,000.00 208,657.00 2547.00 0.00 30,410.00 26,466.00 10,596.00 0.00 31,408.00 17,163.00 Projected FY 2018 5,274,829.00 208,657.00 2,547.00 0.00 30,410.00 26,466.00 10,596.00 0.00 31,408.00 17,163.00 Projected FY 2019 5,076,650.00 208,657.00 2,547.00 0.00 30,410.00 26,466.00 10,596.00 0.00 31,408.00 17,163.00 Projected FY 2020 4,930,850.00 208,657.00 2,547.00 0.00 30,410.00 26,466.00 10,596.00 9.00 31,408.00 17,163.00 Projected FY 2021 3,582,507.00 208,657.00 2,547.00 0.00 30,410.00 26,466.00 10,596.00 0.00 31,408.00 17,163.00 Projected FY 2022 2,872,243.00 208,657.00 2,547.00 0.00 30,410.00 26,466.00 10,596.00 0.00 31,408.00 17,163.00 Actual Actual Projected Projected FY 2013 FY 2014 FY 2015 (1 FY 2016 (2 5,554,530.00 5,721,191.00 5,697,658.00 6,192,047.00 1,201,000.00 1,201,000.00 35,000.90 35,000.00 35,000.00 35,000.00 35,000.00 1,201,000.00 1201,000.00 1,201,000.00 1,201,000.00 TOTAL INTERNAL SERVICES 675,177.00 1,418,353.00 1,230,503.00 1,563,197.00 1,563.247.00 1,563,247.00 1,563,247.00 1,563,247.00 1,563,247.00 1,563,247.00 TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES): Income from Investments Gain (Loss) on Select Equipment Interest Expense TOTAL NON-OPERATING REVENUES (EXPENSES) INCOME (LOSS) BEFORE OPERATING TRANSFERS Capital Contributions Operating Transfer Out Operating Transfer In NET INCOME (LOSS) NET ASSETS, BEGINNING NET ASSETS, ENDING Notes: 33,886.00 0.00 0.00 (3,200,402.00) 0.00 (1,147,145.00) 28,800.00 260,679.00 0.00 0.00 (5,279,390.00) 0.00 (486,000.00) 52,790.00 143,654.00 0.00 0.00 (3,741,681.00) 0.00 (486,000.00) 23,490.00 180,000.00 0.00 0.00 (4,356,304.30) 0.00 (486,000.00) 0.00 • 180,000.00 0.00 0.00 180,000.00 (3,812,343.90) 0.00 (486,000.00) 0.00 180,000.00 0.00 0.00 180,000.00 (2,408,488.49) 0.00 (486,000.00) 0.00 180,000.00 0.00 0.00 180,000.00 (2,293,582.01) 0.00 (486,000.00) 0.00 180,000.00 0.00 0.00 180,000.00 (2,160,756.34) 0.00 (486,000.00) 0.00 180,000.00 0.00 0.00 180,000.00 (882,012.34) 0.00 (486000.00) 0.00 180,000.00 0.00 0.00 180.000,00 (1,247,707.34) 0.00 (486,000.03) 0.00 9,548,967.00 11,610,887.00 10,303,447.00 12,424,804.30 13,193,343.90 11,789,488.49 11,674,582.01 11,541,756.34 10,263,012.34 10,628,707.34 (3,234,288.00) (5,540,069.00) (3,885,335.00) (4,536,304.30) (3,992.343.90) (2,588.488.49) (2,473,582.01) (2.340,756.34) (1,062,012.34) (1,427,707.34) 33,886.00 260,679.00 143,654.00 180,000.00 (4,318,747.00) (5,712,600.00) (4,204,191.00) (4,842,304.30) (4,298,343.90) (2,894,488.49) (2,779,582.01) (2,646,756.34) (1,368,012.34) (1,733,707.34) 55,650.675.00 51,331,928.00 45,619,328.00 41,415,137.00 36,572,832.70 32,274,488.79 29,380,000.31 26,600,418.30 23,953,661.95 22,585,649.61 $51,331,928.00 $45,619,328.00 $41,415,137.00 $36,572,832.70 $32,274,488.79 $29,380,000.31 $26,600,418.30 $23,953,661.95 $22,585,649.61 $20,851,942.27 (1 Based on 1st qtr FY15 YTD projections with the exception on increase in surcharge revenue line item (2 FY2016-FY2022 used FY 15-FY 17 Adopted Budget as base unless otherwise noted below to reflect anticipated future costs: A. Communications- T1s & ISDNs to be phased out and anticipate increase in costs of 5100K starting FY17 B. Indirect Costs - based on 3 year historical & inc 3% for future years C. Tower charges includes 10% inc starting FY16 for anticipated cell site enhancments D. Training includes $75K starting FY2016-FY2019 for new radio equipment and enhancements for radio techs E. Depreciation includes adjusmtments for : FY 15 $250,000 CAD Rewrite, $200,000 Cell Sites; FY16 $150K CAD Rewrite, $200,000 Cell Site Enhmt $4,000,000 Console Upgrade & $2,489,730 ES1Net Startup FY 17 $4M Console Upgrade, $291,000 WAN Upgrade; FY18 $3M Radio Replcritt and $285,000 WAN Upgrade, FY19 $3M, PY20 $4M, FY21 $5M, FY 22 $5M Radio Replacement F. Software Support/Maintenance includes ES1Net pro-rated estimate of 59% of CIC's portion of startup costs These are preliminary costs and RIP responses not expected until May 2015. G. Surcharge Increase 5.06 7/11-15-6/30116 and additional $.10 begin 711116 thru FY 2022 29
30 EXHIBIT 8-2 Projected FY 2020 $9,201,000.00 (5,943,985.91) (655,534.00) Projected FY 2022 $9,201,000.00 (6,082,819.26) (665,534.00) Projected FY 2021 $9,201,000.00 (6,007,539.40) (665,534.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 COUNTY OF OAKLAND RADIO COMMUNICATIONS FUND STATEMENT OF CASH FLOWS 2,469,206.00 762,981.00 1,968,592.18 1,783,005.93 2,784,465.61 2,694,569.01 2,611,960.03 2 591,479.09 2.527,926.60 2,452,646.74 0.00 0.00 23,490.00 0.00 0_00 0.00 0.00 0.00 0.90 0.00 0.00 0.00 (76,929.00) 000 000 0.00 0.00 0.00 (1,422,852,00) 0.00 000 0.00 0.00 0.00 (450,001100) 0.00 0.00 0.00 0.00 0.00 (6,839,73000) 0.00 0.00 0.00 0.00 0.00 (4,291,000.00) 0.00 0.00 0.00 0.00 0.00 (3,285,00000) 0.00 0.00 0.00 0.00 0.00 (4,000,000.00) 0.00 0.00 0.00 0.00 0.00 (5,600,000.00) 0.00 0,00 0.00 0.00 0.00 (5,000,000.00) 0.00 0.00 0.00 28,80000 (1,147,145.00) 0.00 0.00 0.00 0.00 0.00 52,790.00 (486,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 (486,000.00) 0.00 0.00 1100 0.00 0.00 _ 0.00 (486,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 (486,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 (486,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 (486,000.00) 0.00 0.00 000 0.00 0.00 0.00 (486,000.00) 0.00 0.00 0.00 COO 0.00 0.00 (486,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 (486,000.00) 0.00 0.00 0.00 0.00 0.00 (1,118,345.00) (433,210.00) (486000.00) (486,000.00) (486,000_00) (486,030.00) (486,000.00) (486,000.00) (486,000.00) (486,000.00) (76,929.00) (1,422,851.00) (426,511100) (6.839,730.00) (4.291,000.00) (3,285,000.00) (3,000,00000) (4,000,000.00) (5,000.000.00) (5,000,000.00 0.00 39,294.00 0.00 0.00 252,967.00 0.00 0.00 180,000.00 0.00 0.00 143,654.00 0.00 0.00 180,001100 0.00 0.00 180,000.00 0.00 0.00 180,000.00 0.00 0.00 180,000.00 0.00 0.00 180,000.00 0.00 0.30 180,000.00 0.00 39,294.00 1,313,221100 15,311,509.00 $16,624,735.00 252,967.00 143,654.00 180.000.00 (840,113.00) 1,199,736.18 15362 724.07) 16,624,736.00 15,784,623.00 18,984,35518 515,784,623.00 516,984,359.18 $11 621,635.11 150.000.00 180,00000 180,000.00 (1,714,520.91) (2,778.073.40) (2.853,353.26) 8,218,629.75 11504,108.84 3 726 035.44 $6,504,108.84 $3726 035.44 $872,682.18 180,000.00 (694,039.97) 8,912,669.73 $8218,629.75 180,000.00 180,000.00 (1,812,534.39) (896 430.99) 11,621,635.11 9,809,100.72 53809.100.72 58,912,669.73 (53,234,288.00) ($5,540,069.00) (83,885,335.00) ($4,538,304.30) ($3,992,343.90) ($2,588,488.49) ($2,473,582.01) ($2,340,756.34) ($1,052,012.34) ($1,427,707.34) 5,554,530.00 (47,260.30) 0.00 188,523.00 0.00 5,721,19100 79,525.00 0.00 573,497.00 0.00 5,697,658.00 0.00 0.00 0.00 0.00 6,192,047.00 0.00 0.00 0.00 0.00 6,755,743.00 0.00 0.00 0.00 0.00 (43,818.00) 5,910.00 31,495.00 (6,232.00) 4,604.00 15,742.00 44,545.00 (42,499.00) 9,218.00 (43,744.00) (11,302.00) (27,382,00) 0.00 0.00 0.00 0.00 0.00 156 269.18 0.00 0.00 000 0.00 0.00 127,263.23 0.00 0.00 0.00 0.00 0.00 21,066.51 5,274,829.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8228.50 5,076,650.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8892.04 4,930,850.00 aco 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,385.43 3,582,507.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 0.00 7,431.94 3,872,243.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 8,111.08 $2,489,266.00 $762,981.00 $1 968,592.18 91,783,005.93 $2,784,465.61 $2694,569,01 $2,611,960.03 52,591,479.09 $2 527,926.60 $2,452,646.74 Cash flows from operating activities Cash received from users Cash paid to suppliers Cash paid to employees Net cash provided by (used in) operating activities Cash flows from noncapftal financing activities Operating transfer in Operating transfer out Issuance of long-term debt Repayments on advances Interest paid on advances Interest paid on long-term debt Principal payment on longterm debt Net cash provided by (used in) noncapital financing activities Cash flows from capital and related financing activities Operating transfers in Operating transfers out Advances Proceeds on sale of fixed assets Acquisition of fixed assets Principal paid on capital leases Amount received on direct financing leases Interest paid on equipment contracts and capital leases Net cash provided by (used in) capital and related financing activities Cash flows from investing activities Purchases of investments Interest on investments Sale of Investments Net cash provided by (used in) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation expense (Increase) decrease in due from other governmental units (Increase) decrease in due from comp units (Increase) decrease in accounts receivable (Increase) decrease in due (corn other-funds (Increase) decrease in deferred charges (Increase) decrease in inventories and supplies (Increase) decrease in prepayments and other assets Increase (decrease) in vouchers payable Increase (decrease) in due to other funds Increase (decrease) in due to other governmental units Increase (decrease) in other awned liabilities Net cash provided by (used in) operating activities difference between cash flow from oper activities and reconciliation Notes: Cash Flow for capital asset purchases only represents actual capital outlays $7,888,500.00 $9,201,000.00 $9,201,000.00 (5,445,366.07) (5,751,000.39) (5,840,895.99) 1660 128.00) (665,534.00) 1665 534.00) $6,455,942.90 (3,489,816.00) (496,920.00) $6,723,840.00 (5,427,045.00) (533 814.00) $6,418,112.00 (3,854,711182) (594 800.001 Actual FY 2013 Actual FY 2014 Projected FY 2017 Projected FY 2015 Projected FY 2018 Projected FY 2016 Projected FY 2019 $9,201,000.00 (5,923,505.97) (665,534.00)
EXHIBIT C
Radio Oversight Meeting
1:30pm March 31, 2015
Estimated Start-Up Costs — One Time Charges
Oakland County hired a consultant to assist with the RFP efforts for the NG 911 / ESInet project. They
are experienced in these matters and were asked to provide an estimate of costs based on other
projects of this size and the latest, most complete information available today for our use for the E911
surcharge calculations needed. At this time, the total start-up cost is estimated to be $ 4,202,730.00
and we calculated the costs to both the local agency and the County based on the cost of the start-up of
the project.
The local PSAP's have always been responsible for purchasing their own hardware. To determine the
cost split between the local agency and the County, we used the start-up costs as a basis. The
breakdown was $1,713,000.00 or 41% of the total start-up cost was the local responsibility and
$2,489,730.00 Oakland County. The result was a percentage split of 41% of the total for local and 59%
of County which we used as the calculation percentage throughout the entire project. The following
describes the details of this split:
Cost to all PSAP's for their local hardware:
• Gateway (one located in each PSAP) 21 PSAP's @ $50,000 each
• Workstations (cost is per workstation) 85 Workstations @ $7,800 each
Cost to all PSAPS's 41% of total start-up
Cost to Oakland County (balance of total estimate)
• Data Centers (2)
• Hosted CPE (NG911)
• Managed ESInet
• Back Room Equipment
Cost to County 59% of total start-up
$ 1,713,000.00 (est.)
$ 2,489,730.00 (est.)
Total start-up costs; PSAP's (41%) and Oakland County (59%) $ 4,202,730.00 (est.)
31
Approximate Costs per PSAP (high level for budgetary purposes only, based on assumptions discussed) EXHIBIT C-1 Continuing 59% county and 41% PSAP cost share over first five years Annual Increase 1.80% One-Time Gateway Purchase (per PSAP) One-Time CPE Workstation Purchase (each) Gateway Annual Maint. (per PSAP) Workstation Annual Maint.(per workstation) ESInetiNG911 Annual PSAP Portion (per workstation) Agency CPE # Auburn Hills 4 Berkley 6 Birmingham 2 Bloomfield Hills• 1 Bloomfield Twp 4 Farmington Hills 5 Ferndale 2 Hazel Park 2 Madison Heights 3 Milford 2 Novi 4 Oak Park 2 Oakland Sheriff 17 Oxford 2 Rochester 2. Royal Oak 5 Southfield 6 Troy 5 Waterford 4 West Bloomfield 5 White Lake 2 TOTAL 85 $50,000 $7,800 $4,500 $1,200 -,$10,723 Year 1 $133,392 $172,838 $93,946 $74,223 $133,392 $153,115 $93,946 $93,946 $113,669 $93,946 $133,392 $93,946 $389,792 $93,946 $93,946 $153,115 $172,838 $153,115 $133,392 $153,115 $93,946 $2,820,958 $4,581.00 $1,221.60 $10,916.05 Year 2 $53,132 $77,407 $28,856 $16,719 $53,132 $65,269 $28,856 $28,856 $40,994 $28,856 $53,132 $28,856 $210,921 $28,856 $28,856 $65,269 $77,407 $65,269 $53,132 $65,269 $28,856 $1,127,901 $4,663.46 $1,243.59 $11,112.54 Year 3 $54,088 $78,800 $29,376 $17,020 $54,088 $66,444 $29,376 $29,376 $41,732 $29,376 $54,088 $29,376 $214,718 $29,376 $29,376 $66,444 $78,800 $66,444 $54,088 $66,444 $29,376 $1,148,203 $4,747.40 $1,265.97 $11,312.56 Year 4 $55,062 $80,219 $29,904 $17,326 $55,062 $67,640 $29,904 $29,904 $42,483 $29,904 $55,062 _$29,904 $218,583 $29,904 $29,904 $67,640 $80,219 $67,640 $55,062 $67,640 $29,904 $1,168,871 $4,832.85 $1,288.76 $11,516.19 Year 5 $56,053 $81,663 $30,443 $17,638 $56,053 $68,858 $30,443 $30,443 $43,248 $30,443 $56,053 $30,443 $222,517 $30,443 $30,443 $68,858 $81,663 $68,858 $56,053 $68,858 $30,443 $1,189,911 Total $351,726 $490,926 $212,525 $142,925 $351,726 $421,326 $212,525 $212,525 $282,126 $212,525 $351,726 $212,525 $1,256,530 $212,525 $212,525 $421,326 $490,926 $421,326 $351,726 $421,326 $212,525 $7,455,844 Oakland County Portion $3,814,472 $1,348,588 $1,372,862 $1,397,574 $1,422,730 $9,356,227 Total $6,635,430 $2,476,489 $2,521,066 $2,566,445 $2,612,641 $16,812,071 32
Resolution #15128 May 6, 2015
Moved by Middleton supported by Zack the resolution be adopted.
AYES: Gershenson, Gingell, Hoffman, Jackson, KowaII, Matis, McGillivray, Middleton, Spisz,
Taub, Weipert, Woodward, Zack, Bowman, Crawford, Fleming. (16)
NAYS: Long, Scott, Gosselin. (3)
A sufficient majority having voted in favor, the resolution was adopted.
Cti-e()
GERALD D. POISSON
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A(7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on May 6, 2015,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 6th day of May 2015.
Lisa Brown, Oakland County