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HomeMy WebLinkAbout7/30/2008 - STAFF REPORTS - 5.E. c V N � h ALM } e i Cg41F°"` City Council Staff_Renort DATE: July 30, 2008 NEW BUSINESS SUBJECT: APPROVE JOINING EASTERN RIVERSIDE COUNTY INTEROPERABILITY REGIONAL AUTHORITY (E.R.I.C.A.); APPOINT ONE MEMBER OF CITY COUNCIL; WAIVE CODE REQUIREMENTS TO ALLOW SOLE SOURCE FOR PROCUREMENT OF MOTOROLA RADIO SYSTEM; INTRODUCE 911 EMERGENCY COMMUNICATIONS OPT OUT FEE; AND SET FEE PUBLIC HEARING DATE FOR SEPTEMBER 03, 2008 FROM: David Ready, City Manager BY: Palm Springs Police Department SUMMARY The City's "two way" radio system, which includes Police dispatching, is approximately 18 years old and, as of July 1, 2009, the vendor, Motorola, indicated that they will no longer support our equipment. This system must be replaced and should be compliant with a P-25 interoperability system, per the State and Federal interoperability radio strategy. The City Managers, Police Chiefs and other public safety staff from the Cities of Cathedral City, Desert Hot Springs, Indio, Beaumont and Palm Springs have been working together to evaluate the feasibility of developing and operating an interoperable regional communications system, providing service to multiple jurisdictions in Eastern Riverside County- As a result of those meetings, staff from the different cities proposed a Joint Powers Agreement for the purpose of establishing a regional interoperable radio system. This radio communications system has the potential to serve other law enforcement and public safety agencies, as well as other local government services. The proposed governing JPA would operate an interoperable regional radio system which is scalable and flexible in its evolution and growth. The P-25 standards based 700/800 MHz trunked regional radio communications system would significantly advance effective and reliable radio communications for routine intra-agency operations, and enhance inter- Item No. 5 . E . City Council Staff Report July 30, 2008—Page 2 ERICA Radio Project agency coordination throughout the region and beyond, during mutual aid scenarios, catastrophic events and disasters. The City Councils of Indio, Cathedral City and Desert Hot Springs have already approved the JPA and have approved Motorola as the vendor for the radio infrastructure. Beaumont has come later to the ERICA process and their City Manager indicates that he will be submitting a proposal to their Council as soon as possible. RECOMMENDATION: 1. Approve the JPA agreement which authorizes the formation of a Joint Powers Authority (JPA) with the cities of Palm Springs, Cathedral City, Desert Hot Springs and Beaumont (if they vote to join) in a regional communications system known as Eastern Riverside County Interoperability Communications Authority (ERICA) and appoint one member of the City Council to serve as the City's representative on the JPA. 2. Waive the appropriate competitive requirements of the Municipal Code and authorize staff to negotiate a contract with Motorola, to be approved by Council, based upon their proposal for a cost of approximately $4 million to purchase equipment and integration services for the interoperable P-25 radio system, in conjunction with a contract for the backbone system with the City of Indio or ERICA for a cost not to exceed $1,444,000. 3. Introduce an Ordinance establishing the 911 Emergency Communications Opt-Out Fee and schedule a Public Hearing for September 3, 2008, to adopt the fee. 4. Authorize staff to explore funding alternatives for the Motorola proposal and the ERICA Joint Powers Authority and report back to the City Council for Consideration. 5. Authorize the City Manager to execute all necessary JPA documents. STAFF ANALYSIS: Perhaps the most the most critical weakness in public safety operations, both regionally and nationally, has been the inability of public safety agencies to communicate with each other operationally in the field. Locally, allied agencies are on different radio bands, such as Indio PD and the Fire Department on VHF high band, California Highway Patrol on VHF low band, Cathedral City PD and Desert Hot Springs PD on 800 MHz conventional and Palm Springs PD and Riverside County Sheriffs Department on 800 MHz trunked systems, which are incompatible due to proprietary software. This is typical across the County and the State. In order to begin solving the interoperable communications challenge for public safety, the Federal Government established compatibility standards for all public safety radio systems and equipment, mandating manufacturers to produce a non-proprietary 000022 City Council Staff Report July 30, 2008--Page 3 ERICA Radio Project hardware and software system which meets the new P-25 standards. These all new systems are digital, with computerized operating systems, greatly enhancing the ability to link regional systems together across the State and the Nation. The Cities of Palm Springs and Indio currently have older radio systems which require replacement for their public safety, and which will soon not be supported by the manufacturers. Hence, Palm Springs must begin replacing its Police Radio system within the next 12 months. Although the Riverside County Sheriff's Department is in the process of replacing its radio system, they are doing so in a phased approach. It is estimated that it will take from three to five years for their new system to be complete, with the Coachella Valley being in the later phases. At that time, they likely will be able to accommodate other law enforcement agencies on their system, but the individual jurisdiction costs toward their $149 million Motorola contract is unknown at this time. However, as our proposed plan is also with Motorola, at a minimum, we will ultimately have valley wide interoperability with the County Sheriffs Department. Hence, an opportunity has been created for the five cities to join together to create a regional radio system which is inclusive to all public safety and local government services, with the potential to provide interoperable radio system services to other "client agencies." By sharing costs and having greater control over how the system is operated and what service levels are available to users, members of the proposed JPA will have a regional system sooner and, again, have the capability to link to other regional systems, including the new Riverside County system, when it becomes available, thus expanding geographically the useful footprint of interoperable communications. Under this proposal, each JPA member would equally share the costs of the radio system infrastructure, which has been engineered and quoted in a proposal by Motorola. The system is a P-25 compliant 800 MHz trunked system with two simulcast repeater sites at Edom Hill and Indio Hills. There will be a main controller for the system at the City of Indio and two sub-controllers at Cathedral City and Palm Springs. Each City will have the ability to dispatch independently of the other Cities and operate autonomously, should the need arise due to catastrophic failure or operational needs. Independently, each City member would be responsible to purchase and install the radio equipment, such as dispatcher consoles, mobile and portable radios, and other hardware on their own. As these items must be integrated into the shared infrastructure, the JPA will set configuration standards and user protocols. Project management for the JPA would be provided by a director or consultant, which would be a recurring shared cost. Each Member City would provide an Elected Official as a Board Member to the JPA. Motorola provided proposals for both a shared backbone system, as well as individual quotes to each of the four cities. As part of our due diligence process, the staff work group from the Cities agreed to contract with an outside consulting firm for a "value- 0 a 0 6 a 3 City Council Staff Report July 30, 2008- Page 4 ERICA Radio Project engineering study" of the Motorola proposal to determine its technical appropriateness to fulfill the requirements of ERICA, and to opine on the proposed cost to determine industry pricing norms and standards. The consultant chosen was Alta Consulting, of Bellevue, Washington, who indicated that the hardware price proposed by Motorola was reasonable and similar to what other government contracts have been, and that the costs reflected a 20% to 50% discount, which is typical for government proposals. They also felt that the annual maintenance charges were an integral part of this type of system and should be budgeted for each year. Additionally, Alta Consulting Services was requested to consider the utility of Motorola as a single source procurement and assess the proposed ERICA costs vs costs for a Palm Springs stand alone radio system. They concluded that the regional solution was favored as the best option for interoperability and that the costs for Palm Springs to purchase a stand alone system could be an additional $900,000 to $1 million. (Cite: Alta Consulting Services' Final Draft Report on ERICA dated June 23, 2008, page 13.) Further, Dr. Henry Richter, of the Richter Group, did an assessment in April 2007 and his report indicated that our current system should be replaced, as parts are no longer available or becoming difficult to procure. 911 Emergency Opt-Out Ordinance As part of the long term Capital Improvement Program for the Police Department, the City began planning for the cost to replace our radio communications system. Hence, the City Council initially adopted an Emergency Response Fee Ordinance in 2004. This was an enabling ordinance that provided the Council with authorization to adopt a fee. In 2005, the City Council adopted a modest monthly fee that was intended to recover a portion of the costs that the City incurs in the implementation of an emergency response program and service. Both the Ordinance and the fee were modeled after similar programs in other municipal jurisdictions. To date, the fund has approximately $1 million accumulated to be used toward the capital cost of the new system. Moreover, the fee is expected to generate approximately $380,000 in the new fiscal year. However, recent appellate court decisions have found that fee programs similar to the City's are not fees consistent with the provisions of Proposition 218. The appellate courts have found that a fee must be based on use of the emergency response program and not simply on access to the system. Although the California Supreme Court has not ruled on the issue, out of an abundance of caution, the City Attorney has recommended that the City Council adopt a program that clearly provides that fee will be charged on those that actually use the system and that the fee be structured to ensure that users will only pay for the fair cost of the service. The proposed amended 000024 City Council Staff Report July 30, 2008—Page 5 ERICA Radio Project and restated Ordinance is modeled after a new Ordinance adopted by the City of Ventura. This Ordinance Amendment clarifies that telephone subscribers have two payment options: a "flat" monthly charge or a "per-use" charge. If a subscriber opts for the "per-use" charge, the subscriber will only be billed for calls for emergency service made from the subscriber's telephone line. The City Attorney believes that this approach will help make it clear that a subscriber will only be billed for the program the subscriber enrolls in and the cost will only be for the actual use of the system. It will be a program that is predicated on choice rather than mandate and will be more clearly identified as a true fee, consistent with the judicial guidance under Proposition 218. The Ordinance also makes it clear that service costs above the amount necessary to provide service to those who pay for the service, including the costs associated to provide service to lifeline customers, will be borne by the City. The Ordinance also clarifies that the City is providing enhanced emergency response service beyond the minimum required under state law. The Ordinance is structured in an "amended and restated" format to make it easier for the City Council, the public, telephone subscribers, and service providers to read the entire Ordinance program and not just its Amendments. We believe that this approach helps ensure that all affected and interested persons will be better able to understand the full import and context of the Ordinance as amended. Below is a summary of the three options to be considered, Alternative P Regional Communications System, discussed above, is the staff recommendation. ALTERNATIVE I: REGIONAL COMMUNICATIONS SYSTEM A regionally based coordinated communication system operating under a JPA which complies with the federal mandate of being interoperable will enable us to respond successfully to the consequences of any type of disaster. The federal government mandated that all broadcasting networks vacate certain blocks of 700-800 MHz frequencies by January 2009, so all first responder agencies could migrate to those frequencies in order to ensure interoperability and reliability of all communication needs during the times of man-made and/or natural disasters. A JPA will allow cities to join together to create a separate legal entity to manage a common purpose, provide substantial flexibility on structuring a JPA agreement, and allow for shared resources and combine services for greater efficiencies. A Joint Powers Agreement will encompass the cities of Indio, Palm Springs, Cathedral City, and Desert Hot Springs. The JPA will have a board of directors consisting of an elected official from each city, and a tactical advisory committee (TAC), the city manager from each city. The Board would meet at least once a year and be the governing body for the JPA. The TAC would be the operational arm of the JPA. The JPA would allow other cities, public agencies, Tribes, and school districts to participate in ERICA. The capacity of ERICA would be approximately 10,000 radios at any given time. ooaa�a City Council Staff Report July 30, 2008-- Page 6 ERICA Radio Project ERICA would have an enterprise aspect, renting user space to other first responder agencies, as well as third party agencies, e.g., school districts, public works, and transportation systems. ERICA would charge its member agencies a set amount for maintenance, and would charge its non-members an enhanced user fee on a per-radio basis. The total estimated cost for this alternative is approximately $4,824,380. ALTERNATIVE II: PURCHASE A STAND-ALONE PALM SPRINGS SYSTEM This alternative was considered by Alta Consulting. They concluded that it would be more expensive initially and it would not allow for income through adding users. It would also be more difficult to coordinate the system with neighboring agencies and reduce the footprint of interoperability. ALTERNATIVE III: JOIN THE NEW RIVERSIDE COUNTY SYSTEM Under this alternative, the City would subscribe to the new county system as a user. The estimated completion date was originally planned for the end of 2010 but, given its phased approach and the urgency of replacing our current system, staff believes that waiting two to five years would be problematic. Further, the new county system is being designed for use by police and fire only. Public Works and the Airport would have to purchase a separate system. The most recent cost estimate to the County for this system is $149,400,000, and it is unknown what they will charge users, such as Palm Springs, to join. FISCAL IMPACT: The estimated cost of the system is as follows: Start up Costs Recurring Expense 1. Infrastructure - $1,444,400 1. Annual ERICA (25% of total cost) Expenses $ 35,750 (25% of total cost) 2. Radio 2. Year 2 warranty $ 74,704 Equipment - $3,379,980 Year 3 warranty $ 78,438 Year 4 warranty $ 94,191 Total - $4,824,380 Year 5 warranty $117,771 3. ERICA Backbone (25% of total cost) Year 2 warranty $ 99,146 Year 3 warranty $104,104 Year 4 warranty $109,308 Year 5 warranty $114,350 aQad�e City Council Staff Report July 30, 2008— Page 7 ERICA Radio Project Upon finalization of the Contract prices, funding will be provided by the 911 emergency opt-out fee in addition to the General Fund, Airport Fund and Waste Water Treatment Fund, per their proportionate shares. David H. Ready, C er Attachment: Emergency Response Fee Ordinance O6Q6E, 7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING CHAPTER 3.39 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO THE EMERGENCY RESPONSE FEE ORDINANCE AND EMERGENCY RESPONSE FEE. City Attorney's Summary This Ordinance amends and restates Chapter 3.39 of the City's Municipal Code relating to the administration of the City's emergency response fee in conjunction with the City's emergency response fee ordinance. This Ordinance adopts revisions to the existing Ordinance to clarify that the fee is a charge that will be levied only on these who use the emergency response services of the City. The City Council of the City of Palm Springs ordains: SECTION 1. Chapter 3.39 of the Palm Springs Municipal Code is amended and restated to read: Chapter 3.39 Emergency Response Fee Sections 3.39.010 Title-Purpose 3,39,020 Definitions 3.39.030 Findings 3.39.040 Imposition of Emergency Response Fee 3.39.050 Exemptions 3.39.060 Annual Report and Records 3.39.070 Collection of Fee— Per Line Basis 3.39.075 Collection of Fee— Per Call Basis 3.39.076 Election to Pay Fee on Per-Call Basis 3.39.080 Emergency communications emergency response fund 3.39.090 Liability for fee 3.39.100 Registration, reporting and remitting 3.39.110 Interest and penalties 3.39.120 Failure to collect and report fee--Determination of fee by Finance Director. 3.39.130 Refunds 3.39.135 Failure to Pay Fee 598920.1 "Dons 3.39.140 Failure to pay fee--Administrative remedy 3.39.150 Administrative agreements 3.39.160 California Public Utilities Commission jurisdiction 3.39.010 Title--Purpose. (a) In order to ensure and improve the performance of the city's Emergency Communication System, the City must impose a fee. This Chapter shall be known as the "Emergency Response Fee Ordinance" and the user fee imposed herein shall be known as the "Emergency Response Fee." (b) The purpose of this Chapter is to establish a user fee that is directly related to the cost of providing the service to Telephone Subscribers who use the Emergency Communication System derive from the improvements to and operation of the Emergency Communication System that will be financed by fee revenues. (c) The Emergency Communication System provides a special and distinct benefit to those who use it because it enhances emergency response speeds and service delivery. While incidental benefits may accrue to the general public, the predominant benefit is received by those who use the system and for that reason those who receive this distinct and special benefit should fund and pay for such service and system. (d) The Emergency Response Fee is the most practical and equitable revenue mechanism to finance the acquisition, construction, installation, and maintenance of land, equipment, software, and facilities which are needed to provide an adequate and reliable Emergency Communication System under a single uniform management structure and to operate that Emergency Communication System. The fee is intended to recover no more revenue than the costs related to the use of the Emergency Communication System by nonexempt Telephone Subscribers and to apportion those costs fairly among those Telephone Subscribers who voluntarily decide to use the Emergency Communication System. (e) This user fee is to be charged only to persons who actually use the Emergency Communication System. In order to ensure user choice and equity, this Chapter permits Telephone Subscribers to choose between a per-line user fee and a per-call fee. In no circumstances will use of the Emergency Communication Center be made contingent upon a Telephone Subscriber's ability to pay a fee of any kind. The City shall subsidize from general fund revenues the cost of the Emergency Communication Center attributable to use of the system by persons who do not pay a fee. The City's decision to subsidize this service for the least wealthy members of the community is possible only because most service users will be required to fund the demand they place on the Emergency Communication Center and the subsidy for these members of society is not at variance with the Council's determination that those who make use of this system should fund the cost of that use- 2 589920.1 000099 (f) The fee imposed by this Chapter is intended to be imposed on the person who chooses to use the Emergency Communication Center. Charges are initially imposed on Telephone Subscribers because, in most instances, that person will have control over and responsibility for the use of the telephone from which 911 communication services are used. However, where a Telephone Subscriber demonstrates that another person made the decision to use the service, the liability to pay the fee created by this Chapter shall be borne by that other person. (g) The fee imposed by the provisions of this Chapter is intended solely to provide revenue for Eligible Project Costs and Eligible Operating Costs, as defined in this Chapter. Fee revenues shall be deposited by the Finance Director in the emergency response fund established pursuant to Section 3.39.080 of the Palm Springs Municipal Code. The provisions of this Chapter are not enacted for general revenue purposes. The moneys in the emergency response fund shall be used solely for the purposes set forth in this Chapter. 3.39.020 Definitions. Except where the context or particular provisions require otherwise, the following definitions shall govern the construction of this Chapter. "Access Line" means any connection from a customer location within the City to a provider of local telephone service offered to the public for compensation. Within the meaning of this Chapter, and without limitation, Access Lines include connections providing residential basic exchange service, business basic exchange service, PBX service (private branch exchange), foreign exchange service, VoIP service (Voice over Internet) and Centrex service. "Access Line" also includes, without limitation, a connection from a single mobile telephone to a commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations as that Section existed on October 1, 2002 and which has as its Place of Primary Use, as defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Section 124(8), a location within the City. Notwithstanding the foregoing, "Access Line," does not include any connection from a customer location within the City to a provider of local telephone service when for any reason a customer cannot use, or as demonstrated by the customer to the City's satisfaction the customer does not use for purposes of two-way voice telephony, that connection to reach the Emergency Communication Center. "Costs' means any costs incurred by the City to operate, repair or maintain the Emergency Communication Center, including but not limited to costs for personnel, planning, training, software and hardware maintenance and upgrades, facility maintenance and repair, depreciation, equipment replacement, technical infrastructure, and attorney's fees. "Costs" also includes any costs incurred by the City, including associated debt service expenses, associated with the installation, construction, acquisition or financing of any real or personal property that is part of Emergency Communication Center, or that houses any personnel or equipment necessary or useful to the operation of the Emergency Communication Center. 3 5M9201 000010 "Eligible Operating Costs" means the portion of Operating Costs attributable to the use of the Emergency Communication Center via Access Lines subject to the Fee and to the use of the Emergency Communication Centers from those who elect to be subject to the per- call Fee. Eligible Operating Costs shall not include costs attributable to use of the 911 Communications System via Access Lines that are exempted from the Fee by Section 3.39.050, or costs attributable to use of the Emergency Communication Center via communications services that are otherwise not subject to the Fee. "Eligible Project Costs" means the portion of Project Costs reflecting the benefit estimated to be provided by the project to Telephone Subscribers who are required to pay the fee imposed by the provisions of this Chapter on access lines and Trunk Lines subject to the fee. Eligible Project Costs shall not include Exempt Project Costs. "Emergency Communications Center" means a communications facility that is assigned the responsibility to receive 911 calls and other emergency response calls originating in a given area and, as appropriate, to dispatch public safety services or to extend, transfer, or relay 911 calls or other emergency response calls to appropriate public safety agencies. Within the meaning of this Chapter, and without limitation, Emergency Communications Center shall mean the city of Palm Springs emergency communications center or such other emergency communications center designated by the City to receive and dispatch 911 calls and other emergency response calls, including but limited to emergency communications center operated by a joint powers authority to which the City is a member. "Emergency Communication System" means an enhanced emergency telephone service which automatically connects a person dialing the digits 911 to an answering point established within the city and shall incorporate all aspects of the call delivery system, the call processing system, and the call dispatch system, including, but not limited to, selective routing, automatic number identification (ANI), automatic location and identification (ALI), computer aided dispatching systems (CAD), automatic vehicle locater systems (AVL), and wireless 911. References herein to the Emergency Communication System shall, for the purposes of this Chapter, include calls originating to emergency lines within the emergency communications center, including all aspects of the call delivery system, call processing system and call dispatch system relating to such calls. "Exempt Project Costs" means the portion of Project Costs reflecting the benefits estimated to be provided by the project to Telephone Subscribers who are exempted from the fee by Section 3.39.050 of this Chapter or are otherwise not required to pay any fee imposed by the provisions of this Chapter. "Fee" means the Emergency Response Fee imposed under the provisions of this Chapter and includes the per-month Fee and the per-call Fee. "Finance Director" means the Finance Director of the City or such other officer or employee designated by the City Manager of the City. 4 598920 1 000011. "Home Service Provider" has the meaning set forth in Section 124(5) of Title 4 of the United States Code. "Lifeline Service" means discounted telephone service available to eligible low- income residential customers. "Local Telephone Service" means access to a local telephone system, providing two-way telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of the local telephone system, whether or not the service uses transmission wires. "Local telephone service" shall also include any service (other than Mobile Telecommunication Service) provided via any technology that permits a person to access the Emergency Communication Center. This specifically includes, but is not limited to, Voice-Over-Internet Protocol services that currently exist or that may exist in the future. "Mobile Telecommunications Service" has the meaning set forth in Section 124(7) of Title 4 of the United States Code. "Operating Costs" means any costs to operate, repair or maintain the Emergency Communication System or backup Emergency Communication System, including but not limited to costs for personnel, planning, training, software and hardware maintenance and upgrades, facility maintenance and repair, depreciation equipment replacement, technical infrastructure, attorneys fees, and direct and indirect costs. "Place of Primary Use" has the meaning set forth in Section 124(8) of Title 4 of the United States Code. "Project Costs" means any costs of acquiring, refinancing and developing land on which to locate a Emergency Communication System facility or new backup Emergency Communication System facility, acquiring and installing computerized call delivery processing and dispatch equipment and software, and/or any other acquisition or construction necessary to house Emergency Communication System equipment and staff in a seismically safe and fireproof facility, including any debt service payments related thereto. "Service Location" means (i) with respect to an Access Line that is a mobile telephone or other device used to access Mobile Telecommunications Service, the Place of Primary Use of that Access Line, and (ii) with respect to any other Access Line, the premises of a Telephone Subscriber at which a working service point or primary station set provides the subscriber with basic exchange service. "Service Supplier" means (i) any person supplying Local Telephone Service, pursuant to authority granted by the California Public Utilities Commission, to any Telephone Subscriber at a Service Location within the City. Service Suppliers may include, without limitation, local exchange carriers, inter- exchange carriers, competitive access providers, cable television providers offering 5 588920 1 FY V T telecommunication services, and any other person offering direct connections between that person's premises and the premises of Telephone Subscribers and (ii) any Home Service Provider. "Telephone Corporation" shall have the same meaning as defined in Section 234 of the Public Utilities Code of the state of California or the most comparable successor definition. "Telephone Subscriber" means any person required to pay a fee imposed under the provisions of this Chapter. "Trunk Line" means a line between a Service Supplier's switching device and a private branch exchange, automatic call distributing system, or other similar device, at a Telephone Subscriber location. 3.39.030 Findings. (a) The Emergency Communication System provides immediate access to emergency services for Telephone Subscribers who wish to use the Emergency Communication System. Telephone Subscribers derive significant benefit from ongoing operation of the modernized integrated system, including without limitation emergency communications and dispatching operations for which the City is responsible. This improved Emergency Communication System has enhanced call delivery, call processing, and call dispatch and has provided for more speedy and reliable emergency services and response. Telephone subscribers will benefit from maintaining and upgrading the improved Emergency Communication System so it continues to operate at a state of the art level beyond the minimum standards which the State encourages local governments to provide and Telephone Subscribers will further benefit from maintaining the backup Emergency Communication System that can be immediately available and operational in the event of a failure at the Emergency Communications Center. A portion of the costs associated with operating, maintaining and upgrading the Emergency Communication System and facility and backup Emergency Communication System should be allocated among all Telephone Subscribers because Telephone Subscribers will receive this significant benefit. (b) Every Access Line can provide independent access to the Emergency Communication System and is normally used and controlled by the Telephone Subscriber with respect to that Access Line. Therefore, allocating costs, to Telephone Subscribers and among those Telephone Subscribers who do not choose to be charged on a per-call basis, on a per-line basis fairly distributes these costs according to the service Telephone Subscribers derive from use of an enhanced Emergency Communication System. (c) The concentration of a large number of Access Lines in a single location diminishes the likelihood that any given Access Line will be used to make a call to the 911 Communications System and reduces marginal benefit of improved access provided by each fi 588920.1 000 ®�� additional Access Line. Therefore, it is appropriate to place a cap on the number of Access Lines per account per Service Location on which the Fee is charged. (d) Telephone Subscribers who maintain Trunk Lines are more likely to generate calls to the 911 Communications System because they have more telephone users and for that reason derive more benefit, in terms of use of emergency communication service, from each Access Line than other Telephone Subscribers and should pay a higher Fee to reflect that likely greater use of the 911 Communications System. Based on information from the California Public Utilities Commission and the Federal Communications Commission, the City Council finds that, on average, a Trunk Line generates from five to ten times more telephone traffic than does a single Access Line. 3.39.040 Imposition of Emergency Response Fee. (a) There is hereby imposed an Emergency Communication System Service Fee on every Telephone Subscriber who uses the Emergency Communication Center. (b) The amount of the Fee shall be established from time to time by Resolution of the City Council, The Fee shall be paid either (i) on an unlimited usage, per-line basis or (ii) on a per-call basis, by each Telephone Subscriber, who uses the Emergency Communication Center. The Resolution may provide that the Fee be adjusted annually in proportion with the Consumer Price Index: All Urban Consumers for All Items for the Los Angeles-Riverside-Orange County Standard Metropolitan Statistical Area as reported by the United States Bureau of Labor Statistics or any successor to that index. The Resolution shall not establish the Fee at a rate higher than that which, in the reasonable judgment of the City Council, is necessary to fund anticipated Eligible Costs. (c) If paid on a per-line basis, only one monthly payment of the Fee shall be required for any Access Line notwithstanding that services of more than one Service Supplier are used in furnishing Local Telephone Service on that Access Line. Trunk lines shall pay a Fee equal to three (3) Access Lines, unless it can be demonstrated that the Trunk Line serves fewer than three (3)Access Lines. (d) Revenues generated by the Fee shall be deposited in and accounted for as the Emergency Communications System Fund pursuant to Section 3.39.080 and shall be used exclusively to pay Eligible Costs. (e) The Fee is imposed on Telephone Subscribers and collected from them by Service Suppliers because Telephone Subscribers are most likely to be the persons who use an Access Line to use the Emergency Communication Center. If a Telephone Subscriber can demonstrate that the use of the Emergency Communication Center from his or her Access Line was neither made nor authorized by the Telephone Subscriber, he or she shall be entitled to a refund of the per-call Fee upon the filing of a claim pursuant to Section 3.39.130 of this Chapter. Telephone Subscribers may opt out of the per-month Fee as provided in Section 3.39.076 of this Chapter. 7 5989201 3.39.050 Exemptions. Because the City elects as a matter of policy to fund the services of the 911 Communications Systems to these uses from other avenues of the City and does not wish to exceed its legal authority, nothing in this Section shall be construed as imposing a Fee upon the Access Lines of: (1) A Lifeline Service customer of a Service Supplier; (2) A Telephone Corporation; (3) Coin-operated telephones; (4) A nonprofit hospital which is exempt from federal income tax under Section 501(a) of the United States Code; (5) A nonprofit educational organization which is exempt from income tax under Section 501(a) of the United States Code; or (6) Any person when imposition of such fee upon that person would violate the Constitution of the United States, the Constitution of the state of California, or preemptive federal or state law. 3.39.060 Annual Report and Records. (a) No later than March 1st of each year, the Finance Director shall estimate the percentage of Access Lines that were subject to payment of the Emergency Response Fee during the immediate prior fiscal year. This percentage shall be identified as the percentage of Project Costs and Operating Costs that are Eligible Project Costs and Eligible Operating Costs for the following fiscal year. The Finance Director's report shall also identify the adjusted amount of the Fee established pursuant to subsection (b) of Section 3.39.040 that will be applied in the following calendar year. (b) No later than March 1st in each odd numbered year, the Finance Director will evaluate information from industry sources, regulatory bodies and city experience to determine whether the fee rates for Trunk Lines continue to reasonably reflect the increased estimated access to the Emergency Communication System provided to Trunk Line subscribers relative to Access Line subscribers. (c) It shall be the duty of every Service Supplier required to collect and remit to the City any Fee imposed by this Chapter to keep and preserve, for a period of three (3) years, all records necessary to determine the amount of Fee that Service Supplier was obliged to collect and remit to the City. The Finance Director shall have the right to inspect such records at all reasonable times. The Finance Director may periodically require an audit and/or review of any Service Supplier's supporting records. 8 588920,1 000015 3.39.070 Collection of Fee — Per Line Basis. (a) The Service Supplier shall collect the Fee from each Telephone Subscriber at the same time as, and along with, the collection of charges made in accordance with the regular billing practices of the Service Supplier, but in no circumstances less frequently than monthly. If the amount paid by a Telephone Subscriber is less than the full amount of the charges for the service and the Fee which has accrued for the billing period, a proportionate share of both the charges for service and the fee shall be deemed to have been paid. However, where a Telephone Subscriber pays the full amount of the charges but notifies the Service Supplier of a refusal to pay the Fee, in which case the Service Supplier may be relieved of the duty to collect the Fee pursuant to Section 3.39.135 of this Chapter- (b) The Service Supplier shall, upon notification by the City, reduce, terminate or suspend any Fee as to any Telephone Subscriber commencing with the first full billing period applicable to such Telephone Subscriber which occurs after the effective date of such notice. (c) Service Suppliers shall hold fee revenues in trust for the City and shall remit revenues to the Finance Director pursuant to Section 3.39.100 of this Chapter. (d) The duty to collect the Fee from a Telephone Subscriber shall commence with the beginning of the first regular billing period applicable to that Telephone Subscriber which begins on or after May 1 , 2008. Where a Telephone Subscriber is billed separately for distinct periods, the duty to collect shall arise separately for each billing period. (e) A Service Supplier, at its option, may assess upon Telephone Subscribers and retain for its awn use, a service charge of up to one-eighth (1/8) of one percent (1 %) of Emergency Communication System Service Fees actually collected by the Service Supplier and remitted to the City provided that the Service Supplier informs the City in writing of its election to do so before the fee is first assessed. 3.39.075 Collection of Fee—Per Call Basis. (a) If a Telephone Subscriber elects to pay the Fee on a per-call basis as provided in Section 3.39.076, the City shall notify the affected Service Suppliers of the election and the City shall be responsible to collect the Fee from each Telephone Subscriber from and after the first full billing cycle commencing after the City provides that notice. (b) The Finance Director is authorized and directed to establish billing and collection systems necessary to implement this Section. (c) The Finance Director is authorized and directed to establish guidelines allowing the reduction or waiver of per-call charges on a case-by-case basis when the public policy interests of the City would be served. These per-call charge reductions or waivers will include, but need not be limited to, i) "good Samaritan" calls made to summon emergency assistance for persons at a location other than the caller's residence or business, such as 9 58 qml o Yl®® calls reporting traffic accident or crime scene injuries, ii) multiple calls received for major emergency events such as major fires, ii)as provided in Subsection(e) of Section 3.39.040 of this Chapter, and iv) the per-call charge for the first call from an Access Line that has opted to pay on the per-call basis. Upon receiving a second 911 call from such Access Line, the City Manager shall offer to waive the per-call charge if the Access Line subscriber agrees to enroll in the per month program. 3.39.076 Election to Pay Fee on Per-Call Basis. (a) Each Telephone Subscriber may elect to pay the Fee on a per-call basis as provided in this Section. (b) Each Telephone Subscriber may elect to pay the Fee on a per-call basis by notifying the Finance Director in writing on a form provided by the City no later than sixty (60) days after the first effective date of this Chapter. Notification by any other method shall not be effective, except as provided in Subsection (c) below. (c) Each Telephone Subscriber may elect to pay the Fee on a per-call basis by notifying the Finance Director in writing on a form provided by the City within thirty (30) days after changing Service Suppliers or obtaining a new Access Line, or between May 1st and May 15`h of any year. Notification by any other method shall not be effective. (d) Each Telephone Subscriber may rescind an election to pay the Fee on a per-call basis at any time by notifying the Finance Director in writing on a form provided by the City, provided that any outstanding per-call Fees must be paid before the rescission is effective. (e) The Finance Director shall adopt the forms required by this Section. The forms shall include such information as may be deemed necessary by the City Attorney to facilitate lawful collection of Fees. The information required may include, at the Telephone Subscriber's option, credit card or other direct-billing information. (f) Service Suppliers shall notify Telephone Subscribers of their rights under this Section using information and procedures approved by the Finance Director. 3.39.080 Emergency communications emergency response fund. (a) The emergency communications emergency response fund is established to receive all monies collected pursuant to this Chapter, and any other monies transferred into the fund- (b) The fund shall be used only to pay for Eligible Costs, including without limitation: (1) For the payment of costs of acquiring, refinancing and developing land on which to locate a Emergency Communication System facility or new backup Emergency Communication System facility, acquiring and installing computerized call delivery processing and dispatch equipment and software, and/or any other acquisition or 10 5899201 000017 construction necessary to house Emergency Communication System equipment and staff in a seismically safe and fireproof facility or new backup facility, including any debt service payments related thereto; (2) For the payment of operating, repair and maintenance expenses for the Emergency Communication System and backup Emergency Communication System, including but not limited to costs for personnel, planning, training, software and hardware maintenance and upgrades, facility maintenance and repair, depreciation, equipment replacement, technical infrastructure, attorneys fees and direct and indirect overhead costs. (c) Expenditures from the fund shall be made upon the recommendation of the police chief and/or fire chief. Expenditures and encumbrances from this fund shall be subject to the budget and fiscal provisions of the city. 3.39.090 Liability for fee. (a) Any fee required to be paid by a Telephone Subscriber under the provisions of this Chapter shall be deemed a debt owed by the Telephone Subscriber to the city until it has been paid to the city, except that payment to a Service Supplier is sufficient to relieve the subscriber from further liability for the fee and except as provided in Subsection (e) of Section 3.39.0 0 of this Chapter- (b) Any fee required to be collected under the provisions of this Chapter on a per-line basis shall be deemed a debt owed to the city of Palm Springs by the Service Supplier required to collect and remit such fee. (c) Nothing in this section shall impose any duty on a Service Supplier to take any legal action to enforce the collection of the Fee. However, whenever a Service Supplier remits Fee proceeds to the City, the Service Supplier shall also provide the city with the name and address of any Telephone Subscriber who has failed to pay the Fee for a period of four or more billing periods and shall state the amount of such fee remaining unpaid. The Finance Director shall assume the responsibility to collect the amounts due for the stated periods, in which case the Finance Director shall notify the Telephone Subscriber that the Finance Director has assumed the responsibility to collect the Fee for the stated periods and may demand payment from the Telephone Subscriber. (d) Any person owing money to the city under the provisions of this Chapter shall be liable in an action brought in the name of the city for the recovery of such amount. 3.39.100 Registration, reporting and remitting. (a) Each Service Supplier providing local telephone service to Telephone Subscribers within the city to which this fee applies shall register with the Finance Director upon a form prescribed by the Finance Director and shall set forth the name 11 saaeai 000G:L under which the Service Supplier transacts or intends to transact business, and such other information as the Finance Director may require, including but not limited to information regarding the number Access Lines and Trunk Lines serving an area as a basis for calculation of the fee. The Service Supplier shall update such forms on a yearly basis with any changes as may be applicable. (b) Each Service Supplier shall, on or before the last working day of each month, make a return to the Finance Director, on forms provided by the Finance Director, stating the amount of fees collected by the Service Supplier during the preceding month. (For example, the amounts collected during September, 2004 will be due to the city no later than October 29, 2004). At the time the return is filed, the full amount of the fee collected shall be remitted to the Finance Director. Payments shall be made payable to the city of Palm Springs. The Finance Director may require further readily attainable information in the return. Returns and remittances are due immediately upon cessation of business for any reason. 3.39.110 Interest and penalties. (a) Fees required to be collected from a Telephone Subscriber which are not remitted to the Finance Director on or before the due date provided in this Chapter are delinquent. (b) Service Suppliers. Interest and penalties for delinquency in remittance of any fee not remitted shall be assessed as follows: (1) Any Service Supplier who fails to remit any fee imposed by this Chapter by the last working day of the month following the month being reported shall pay a penalty of ten percent of the amount of the fee. (2) If the Finance Director determines that the nonpayment of any remittance due hereunder is due to fraud, a penalty of one hundred percent (100%) of the amount of the fee shall be added thereto in addition to the penalty stated in subdivision (1) of this subsection- (3) In addition to the penalties imposed in this subsection, any Service Supplier who fails to remit any fee imposed by this Chapter, shall pay interest on the amount of the fee, exclusive of penalties, from the date on which the remittance first became delinquent until paid. Interest shall be paid at the rate of one percent (1%) per month, or fraction thereof. (c) Telephone Subscribers. Failure by a Telephone Subscriber to pay any fee herein imposed shall result in the following interest and penalties on the Telephone Subscriber: (1) Any Telephone Subscriber who fails to pay any fee imposed by this Chapter within one hundred twenty (120) days of the date of the receipt of notice of the 12 598920.1 000029 Q0029 amount of fee due from the Service Supplier shall pay a penalty of ten percent of the amount of the fee. (2) Any Telephone Subscriber who fails to pay any delinquent remittance within one hundred eighty (180) days after the date of the receipt of notice of the amount of fee due from the Service Supplier shall pay a second delinquency penalty of ten percent of the amount of the fee in addition to the ten percent penalty first imposed. (3) In addition to the penalties imposed in this subsection, any Telephone Subscriber who fails to pay any fee imposed by this Chapter, shall pay interest on the amount of the fee, exclusive of penalties, from the date on which the fee first became delinquent until paid plus an additional collection charge for each delinquent account in an amount to be determined by rules and regulations of the Finance Director. The Finance Director shall establish collection charges which reimburse the costs incurred by the city for collecting delinquent fees. Interest shall be paid at the rate of one percent (1%) per month, or fraction thereof. (4) The penalties, interest and collection charges imposed in this subsection shall not be collected by the Service Supplier, but shall be determined and collected by the city as set forth hereinafter. (5) Following nonpayment of the fee by any Telephone Subscriber, the Finance Director may proceed against the Telephone Subscriber pursuant to Section 3.39.140. In such case, the Telephone Subscriber shall be required to remit the payment and penalties assessed thereon directly to the Finance Director pursuant to Section 3.39.140. (d) Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the fee herein required to be paid. (e) Any penalty imposed on the Service Supplier or Telephone Subscriber pursuant to this Section may, in the sole discretion of the Finance Director, be waived by the Finance Director upon a showing of good cause for such waiver. 3.39.120 Failure to collect and report fee—Determination of fee by Finance Director. If any Service Supplier shall fail or refuse to collect any fee imposed by this Chapter and to make, within the time provided in this Chapter, any report and remittance of said fee or any portion thereof required by this Chapter, the Finance Director shall proceed in such manner as the Finance Director deems best to obtain facts and information on which to base an estimate of the fee due. As soon as the Finance Director is able to procure facts and information upon which to base the assessment of any fee imposed by this Chapter and payable by any Service Supplier who has failed or refused to collect the same and to make such report and remittance, the Finance Director shall proceed to determine and assess against such Service 13 000I920 ssa9sa i Supplier the fee, interest and penalties provided by this Chapter. In case such determination is made, the Finance Director shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the Service Supplier at its last known place of business. The Service Supplier may within ten (10) days after the serving or mailing of such notice make application in writing to the Finance Director for a hearing on the amount assessed. If application by the Service Supplier for a hearing is not made within the time prescribed, the fee, interest and penalties, if any, determined by the Finance Director shall become final and conclusive and immediately due and payable. If such application is made, the Finance Director shall give not less than five (5) days' written notice in the manner prescribed herein to the Service Supplier to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such fee, interest and penalties. At the hearing, the Service Supplier may appear and offer evidence why the specified fee, interest and penalties should not be so fixed. After the hearing, the Finance Director shall determine the proper fee to be remitted and shall thereafter give written notice to the Service Supplier in the manner prescribed herein of the determination and the amount of the fee, interest and penalties. The amount determined to be due shall be payable within fifteen (15) days. The decision of the Finance Director shall be final. 3.39.130 Refunds. (a) A Service Supplier may claim a refund or claim a credit against fees to be collected and remitted of the amount overpaid or paid more than once, or erroneously or illegally collected or received by filing a claim in accordance with Chapter 3.16 of the Palm Springs Municipal Code; provided, however, that neither a refund or a credit shall be allowed unless the amount of the fee so collected has either been refunded to the person entitled thereto or credited to the charges subsequently payable by such person to the Service Supplier. (b) A Telephone Subscriber may obtain a refund of fees overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in accordance with Chapter 3.16 of the Palm Springs Municipal Code, but only when the fee was paid by the Telephone Subscriber directly to the Finance Director, or when the Telephone Subscriber, having paid the fee to the Service Supplier, establishes to the satisfaction of the Finance Director that the Telephone Subscriber has been unable to obtain a refund from the Service Supplier who collected the fee. The city shall be solely responsible for administering refund claims arising out of the fact that the Telephone Subscriber, pursuant to Section 3.39.040(b), has paid in excess of thousand dollars in Emergency Response Fees during a single calendar year. 3.39.135 Failure to Pay Fee. (a) The Finance Director may assess a Telephone Subscriber for Fees owed by the Telephone Subscriber but not paid to the Service Supplier or to the City. 14 589910.1 Q[�Q Q�.il• (b) Whenever the Finance Director determines that a Telephone Subscriber has deliberately withheld the amount of the Fee owed from the amounts remitted to a Service Supplier, or that a Telephone Subscriber has refused to pay the amount of Fee to a Service Supplier, or whenever the Finance Director otherwise deems it in the best interest of the City, he or she may relieve a Service Supplier of the obligation to collect Fees due from certain named Telephone Subscribers for specified billing periods. (c) Service Suppliers shall inform the City of amounts which Telephone Subscribers have failed to pay, along with the names, service and mailing addresses, such other information as the Finance Director may request that is reasonably necessary to identify such Telephone Subscribers, and any reasons of the Telephone Subscribers refusing to pay the Fee imposed under this Section of which the Service Supplier has knowledge. Whenever a Telephone Subscriber has failed to pay Fee for two or more consecutive billing periods, the Finance Director may relieve the Service Supplier of the obligation to collect Fees due pursuant to Subsection (b) of this Section- (d) The Finance Director shall notify the Telephone Subscriber that he or she has assumed responsibility to collect the Fees due for stated periods and shall demand payment of such Fees from the Telephone Subscriber. The notice shall be served on the Telephone Subscriber by personal delivery or by deposit in the United States mail, postage prepaid, addressed to the Telephone Subscriber at the address to which billing was made by the Service Supplier or to his or her last address known to the Finance Director. If a Telephone Subscriber fails to remit the Fee to the Finance Director within fifteen (15) days from the date of the service of the notice, which shall be deemed to be the earlier of the second day after the date of mailing or the date of personal service, a penalty shall be imposed of twenty-five percent (25%) of the amount of the Fee set forth in the notice or five dollars ($5.00), whichever is greater. The penalty shall become payable as a required part of the Fee. 3,39.140 Failure to pay fee---Administrative remedy. Whenever the Finance Director determines that a Telephone Subscriber has deliberately withheld the amount of the fee owed by him for the amounts remitted to a Service Supplier or that a Telephone Subscriber has failed to pay the amount of the fee for a period of four or more billing periods, or whenever the Finance Director deems it in the best interest of the city, the director shall relieve the Service Supplier of the obligation to collect fees due under this Chapter from certain named service users for specified billing periods. The Finance Director shall notify the Telephone Subscriber that the Finance Director has assumed responsibility to collect the fees due for the stated periods and demand payment of such fees. The notice shall be served on the Telephone Subscriber personally or by United States mail, postage prepaid thereon, addressed to the Telephone Subscriber at the address to which billing was made by the Service Supplier, or, should the Telephone Subscriber have changed address, to the subscriber's last known address. If a Telephone Subscriber fails to remit the fee to the Finance Director within fifteen (15) days from the date of the service of the notice, which shall be the date of mailing if service is not accomplished in person, a penalty of one hundred percent (100%) of the amount of the fee set forth in the notice, but not less 15 000022 588920.1 than five dollars ($5.00), shall be imposed. The penalty shall become a part of the fee herein required to be paid. Such penalty shall be in addition to any other penalty imposed by this Chapter. 3.39.150 Administrative agreements. The Finance Director may make administrative agreements with Service Suppliers to vary the strict requirements of this Chapter so that collection of any fee imposed herein may be made in conformance with the billing procedures of a particular Service Supplier so long as the overall result of said agreements results in collection of the fee in conformance with the general purpose and scope of this Chapter. A copy of each agreement shall be on file and available for public examination in the Finance Director's office. 3.39.160 California Public Utilities Commission jurisdiction. Nothing contained in this Chapter is intended to conflict with applicable rules, regulations and tariffs of any Service Supplier subject to the jurisdiction of the California Public Utilities Commission. In the event of any conflict, the provisions of those rules, regulations and tariffs shall control. SECTION 2. If any Section, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining Sections, sentences, clauses, phrases, or portions of this Ordinance shall nonetheless remain in full force and effect. The City Council hereby declares that it would have adopted each Section, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more Sections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable. Portions of this Ordinance were originally adopted in 2004 as Ordinance No. 1659 and nothing herein should be construed as repealing or vacating such Ordinance except to the extent the provisions thereof have been amended as provided in this Ordinance. SECTION 3. The City Council further finds that the establishment of fees pursuant to this Ordinance is solely for the purpose of maintaining public services within existing service areas and is therefore exempt from environmental review under Public Resources Code Section 21080(b)(8) of the California Environmental Quality Act ("CEQA') and Section 15273 of Title 14 of the California Code of Regulations (the "State CEQA Guidelines"). Those Sections provide an exemption for the establishment or modification of charges by public agencies which the public agency finds are solely for the purpose of maintaining public services within existing service areas and that is the case here. In addition, because the establishment or modification of fees pursuant to this Ordinance comprises only minor changes to an existing set of fees and regulations and do not directly or indirectly result in physical impacts, it can be foreseen with certainty that no potential environmental impacts would result from its adoption. Therefore, this action is covered by the general rule pursuant to Section 15061(b)(3) of the State CEQA Guidelines that, where it can be seen with certainty that there is no possibility that the activity in question may 16 have a significant effect on the environment, the activity is not subject to CEQA. CEQA applies only to projects that have the potential for causing a significant effect on the environment. SECTION 4. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED AND ADOPTED THIS DAY OF 200& AYES: NOES: ABSTAIN: ABSENT: STEPHEN P. POUGNET, MAYOR ATTEST: APPROVED AS TO FORM James Thompson, City Clerk Douglas Holland, City Attorney 17 588920.1