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HomeMy WebLinkAboutR2002-025RESOUTtON NO. Z4d;P A RESOLUTION APPROVING THE FISCAL YEAR 2003 FINANCIAL PLAN (BUDGET) OF THE DENCO AREA 9-1-1 DISTRICT, PURSUANT TO TEXAS HEALTH & SAFETY CODE §772.309 AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of thc City of Denton has been presented thc 2003 Draft Financial Plan (Budget) of the Denco Area 9-1-1 District for approval, in accordance with Tex. Health & Safety Code §772.309 (Vemun 1999) as amended; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council of the City of Denton hereby approves thc 2003 fiscal year Draft Financial Plan (Budget) of thc Dcnco Area 9-I-1 District attached to this Resolution. SECTION 2. That this Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /~-Lday of ~.~ ,2002. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ~' DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2003 FINANCIAL PLAN SECTION 1 PREFACE DENCO-AREA 9-II DISTRICT 1'.~ I · ' P.O. Box 29.3058, Lewi~ill~, Texas 75029-3058PhoneFFTY: 972-22t:0911 FAX: 972-420-0709 Webpag~:- wwW.denco.org Date:.' . June 6, 2002 , · .... · ' ' ' Subject: Denc0 Area 911 District Fiscal Year 2003 Financial Plan . Enclosed is the "draft'; copy of the Denco Area 9-1-~1 District Fiscal YEar 2003 Fi'nancial Plan for your jurisdictionls'c0nsideration. Chapter 772.300, Texas Health and Safety Code'i requires emergency communication districts to send a. draff budget to,participating jurisdibtions seeking comments. Afte'r a 45-day review and comment period, the district s board of managers will consider approval of a. finalbudge~t. · ' , · ~' . ~ ,' ' ' . . · Even tl~o~gh itis not'required for your governing body te vote on thebudget, the Denco board . requests that ydu-review the budget and provide feedback pdor,to the August 8, 2002'district board of managers"meeting. At. that time the board will approve a final budget.for tis'cai year 2003. which begins October I 2002. If them-is no change from the, draft budget the district'will notify its ' m~mbers that the budget is appr, oved. If there is a change, thedist'rict will re(~uest each jurisdiction ko ~onsider the final budget and a'copy of that budget will be Sent to members. ., ' A copy of the approval process and the Sta`te legislation that applies to t~e'Denco Area 9-1-1 District is included Under. Section "5" in the enclosed financial plan. . ' ' ~.~ '' You.will find'that the proposed financial plan includes additional services provided by the district, su~;h as additional training and,equipment service. Also'included is the replacement of two new · public safety answering point (PSAP)'controller switches. These new switches will replace older' technology and are designed.to better balance the ceil'volume at the district's eleven 921-1 · .' answering pointm ' . .. , ' . ' - ' - Phase Ii Enhanced Wireless 9~1-1 Sei'vice is also included in this financial plan. Denco should be 6perational with Phase II service for I~oth VoiceStream and Sp~int PCS Wireless carriers pdor to ti~e' end 'of this current fiscal year. The distdct is in the process,of planning for the deployment o{ approximate location of 9-1-1 callers using a wii'eless telepho,,e. . " .. - The Denco Area 9~1-1 District is here 'to serve its participating jurisdictions., The district s mission is to assist its member jurisdictions respond,to police."fl~e and medical emergen,,cy calls by providing · an efficient, effective enhanced 9,r1-1 emergency telecommunications system. It c0ntinues'to' ' pro~;ide more services each year atthe same service fee rate since its beginning in r1987. ' ' Please call On any'bOard me~nber O1: the distri''c't staff if yOu have any comments Or questiOns '. Concerning .this proposed budget. The distdct s executive director. Mike Pedigo, would welcome ~he opportunity'to make a presentation to your governing'body ~egarding this budget or any ot~er'Den(~o related matter. ' · . ' - , - ' Again ~hanl~s.~su.,?,,~e Denco Area 9-1-'~ District. adan Jeffersp.~'.;,/./' . . , ' . , '. - Chairman,:Bdar. d'(~f'Managers, . , .... 1075 Princeton Street. Lewisville, Texas 75067 To: Date: D.ENCO ,'AREA 9,. 1: 'I-DISTRICT P.O. Box 293056, Lewisville, Texas 75029-3058 Phone/I-PC: 972-221-0911 .*' FAX: 972-420-0709. Webpage: www.denco.org Denbo Area 91.1 District Pa~icipating ;Jurisdictions June 6, 2002 Su6ject: .. Denco Area 911' District Fiscal Yeai: 2003 Financial' Plan The Denco Area 9-.1-1 District's Board of Managers, atit~ June 6, 2002 regular meeting, approved the "Draft". Dence Area 9-1-1 District Fiscal Year 2003 Financial .Plan. 'The 76th Texas'Legtslature passed' House Bill 1984. which defined the budgetapprovar process for Cl'i'apter 772:300 series emergency communication districts~ The.following documents'are included, in Section V. the Appendix of this financial plan, defining, the budget appro~/al process: A copy of'the Denco Area 9-'1-1 District.Missi0n,.Values and Goals Statement. A copy.of the section in. House Bill 1984 ii'at per~ai~]s te budget approval. A copy'ofa resolution approved by theDenco Area 9-1-1.District Board.of' Managers defining p'rocedures fee consideration and approval of a budget. A'copy of Texas Health and Safety Code, Chapter772.300; the statute under which Denco operates. Denco's draft financial Plan provides'for the Continued provision-0f Stare-of-the- art enhanced 9-1-1 services at the same' rate that Denc0 has collected from district..residents since its inception in 1987. The emergency serv ce fee, c6ilected by the telephone service providers is $0.27' per month for.residential, 0.71 per month for business Service andS1.13 per month for PBX. trunks. This fee is equal.to three percent of the 1987 base telephone rate. Denco continues to provide excellent services .to its member jurisdictions at'one of the lowest rates in the ~tate., In additionto the. eme~gency'serviqefee collected by',local telephone service providers, the. State of Texas Collects $0.50 per.month, per wireless telephone, Those fees are remitted to the state. The'state then sends aiportion of the wireless fund to Denco based on'the district's percent of,the total population of Texas. Included in the fiscal year. 2003 budget,are the,following 'projects: The purchase and installation of two new'ECS 1000 PSAP Controller Switches. These switches are the, backboneto the 9-1-1 network. They share the-load of all 9-1-1 calls routedte Denco Public Safety Answering Points (PSAP). The transition of the 9-1;;1 databases to a new. more robust and redundant'database platf0rm~ The new platfbrm will house both wireless and wireline databases. 1075 Princeton Street. Lewisville. Texas 75067 o Financial Plan Letter Page Two The configuration and deployment of.a back-up 9-1-1 'network that is more diverse and more redundant than the current.back-up system.- The completion of Phase II.enhanced 9-1-1 wireless services. This enhancement will assist telecommunicators.i~ locating wireless 9-1-1 callers. The district has' set aside funds for the rlast severalr years foe Phase II services The fiscal year 2003 direct services budget includes 1,000,00Ofor non-recurring expenditures for the purchase of these enhanced wireless services. The addition of new training programsdesigned to meet the special training needs of PSAPsacross the district. The Denco Area 9-1-1 District Board.of Managers and staff continue to work to provide its member jurisdictions.the best-enhanced .9-1-1 .services availabl~ at one of the lowest rates in Texas. The district' appreciatesthe, professionalism, cooperation and support of.the dispatchers and emergency response agencies that make the 9-1-1 systems successful. If. at any time,' you have.any q aestions or would like additional information, pleasedo not hesitate.to call me at (972) 221-0911. . Thanks'for your continued support of the Denco Area 9-1-1 District. Mike Pedig0 Executive Director DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2003 FINANCIAL PLAN SECTION 2 DISTRICT OVERVIEW DENCO AREA 0-1-1 DISTRICT DISTRICT OVERVIEW Backqround Information What is E9-1-17 Enhanced Nine-One-One (E9-1-1) is a single, easy-to-remember number used when reporting emergencies to fire, police and emergency medical service providers. The E9-1-1 system, operational in the Denco Area 9-1-1 District, is designed to automatically route any 9-1-1 call, placed from a telephone instrument (including wireless) within the district's geographical boundaries, to the proper public safety answering point (PSAP) responsible for dispatching emergency services to the caller. 9-1-1 Terminology 9-1-1. Nine-one-one. An easy-to-remember, easy-to-dial three-digit emergency telephone number developed to provide citizens a reliable, fast and convenient way to access fire, police, or medical service providers in the event of an emergency. District. Denco Area 9-1-1 District. The entity that provides enhanced 9-1-1 service in Denton County. A board of managers appointed by participating jurisdictions governs the district. The district serves Denton County and that portion of Carrollton in Dallas County. E9-1-1. Enhanced 9-1-1. The system that is operational in Denton County providing SR, ANI and ALI (defined below). GIS. Geographic Information Systems. The technology used to develop the mapped display of Denton County. PSAP. Public Safety Answering Point. The location ofthe equipment used to answer 9-1-1 emergency calls. The following are the twelve (12) PSAPs that are currently capable of answering 9-1-1 calls in the Denco Area 9-1-1 District: District Overview Page 2 of 8 June 3, 2002 City of Carrollton Police Department City of Denton Police Department Denton County Shedfrs Office Town of Flower Mound Police Depadment City of Highland Village Police Department City of Roanoke Police Department City of Lake Dallas Police Department City of Lewisville Police Department City of The Colony Police Department University of North Texas Police Department Texas Woman's University Police Department Denco Backup and Training PSAP SR. Selective Routing. The system that provides automatic routing of 9-1-1 calls based on the caller's location to the appropriate PSAP. The caller is not required to determine which public safety agency to call. ANI. Automatic Number Identification. The feature that provides the caller's telephone number on a console at the PSAP. ALI. Automatic Location Identification. The feature that provides the caller's name and address on a computer monitor at the PSAP. Database. The information accompanying a 9-1-1 call atthe PSAP. The information provided is the caller's name, address and telephone number, as well as the emergency service providers designated to respond to the caller's address. Public Safety Telecommunicator. The individual answering the 9-1-1 calls; trained to communicate with persons seeking emergency assistance and with agencies and individuals providing such assistance. Phase I. The Federal Communication Commission (FCC) mandate to the wireless telephone industry and 9-1-1 requiring the proper routing of wireless 9-1-1 calls to PSAPs and the provision of the callers' ANI to the telecommunicators. Phase II. The feature that provides the approximate geographic location of wireless callers, in addition to the FCC's Phase I enhancements. District Overview Page 3 of 8 June 3, 2002 IWS. Integrated Workstation. The computerized 9-1-1 answering equipment provided by Denco. The equipment has the capacity to include dispatcher tools in addition to the 9-1-1 function, such as computer-aided dispatch, paging, mapping, etc. Denco has 52 integrated workstations at its 12 PSAPS. Benefits of E9-1-1 The E9-1-1 system has enhanced the ability of emergency service providers to save the lives and property of citizens in the Denco Area 9-1-1 District. Some of the direct benefits of the emergency communications system provided by Denco are the following: Only one three-digit number to remember in an emergency situation. The 9-1-1 call is muted to the proper agency responsible for dispatching help to the caller. Trained telecommunicators answer 9-1-1 calls. (In the Denco Area 9-1-1 District, telecommunicators are trained to provide emergency medical dispatch, thus reducing response time for medical emergencies.) Telecommunicators have the equipment and training necessary to communicate with hearing/speech impaired callers. The caller's name, address and telephone number, as well as the proper fire, police and emergency medical service designated to respond to the caller's address, is automatically provided to the telecommunicator, thus reducing total response time. In the event the caller is unable to speak, the telecommunicator has the ability to dispatch help to the caller's location that is provided by the E9-1-1 system. ANI/ALI information provides a means to control and reduce prank calls. The public education programs associated with E9-1-1 promote citizen awareness and involvement with emergency service providers. The E9-1-1 system enhances local government's ability to meet the ever-growing public expectation of emergency services created by popular television programming. The E9-1-1 system is designed to allow PS^Ps the ability to directly transfer a caller to another public safety agency or poison control center. The E9-1-1 system will identify calls from wireless phones, advising the telecommunicator to ask proper questions to determine the location of the emergency. Phase I provides the caller's telephone number so that the telecommunicator has the ability to reconnect if the call is terminated. Phase II will provide additional location information to telecommunicators. District Overview Page 4 of 8 June 3, 2002 The system has the ability to identify telephone companies serving 9-1-1 callers, thus streamlining the process for reconciling routing and database errors. Structure of the Denco Area 9-1-1 Distdct Legislation During its 1985 legislative session, the 69th Texas Legislature passed Article 1432e Section 772, Texas Health and Safety Code), Emergency Telephone Number Act, which provided for the creation, administration, expansion, funding and dissolution of emergency communication districts in certain counties in Texas. The Emergency Telephone Number Act is the legislation under which the Denco Area 9-1-1 District operates. Purpose Section 772.302, Texas Health and Safety Code states the purpose of the Act to be the following: To establish the number 9-1-1 as the primary emergency telephone number for use by certain local governments in this state and to encourage units of local governments and combinations of those units of local government to develop and improve emergency communication procedures and facilities in a manner that will make possible the quick response to any person calling the telephone number 9-1-1 seeking police, fire, medical, rescue and other emergency services. Creation of Denco Area 9-1-1 District On August 8, 1987, Denton County held a special election to confirm the creation of the Emergency Communication District of Denton County and authorize a 9-1-1 emergency service fee, not to exceed three (3%) percent of the base rate of the principal service supplier per service year per month, to be charged by the district for the purpose of establishing E9-1-1 in Denton County. By a margin of 13,086 to 3,024, the voters favored the creation of the emergency communication district. After the special election, the city 0 District Overview Page 5 of 8 June 6, 2002 and county governing bodies within Denton County passed resolutions of participation. The resolutions stated that the city or county would become a participating jurisdiction in the district pursuant to the provisions of the Emergency Telephone Number Act. The participating jurisdictions of the district are the following: Argyle Hackberry Little Elm Aubrey Hebron Marshall Creek Bartonville Hickory Creek Northlake Carrollton Highland Village Oak Point Clark Justin Pilot Point Copper Canyon Krugerville Ponder Corinth Krum Roanoke Corral City Lake Dallas Sanger Cross Roads Lakewood Village Shady Shores Denton Lewisville The Colony Double Oak Lincoln Park Trophy Club Flower Mound Unincorporated Denton County On December 8, 1987, the district's board of managers ordered the levy and collection of the emergency fee to commence with the January 1988 billing cycle. The board ordered the service fee, collected by the telephone companies, to be charged at a rate of three 3%) percent of the base rate of GTE Southwest. The emergency service fee for basic levels.of telephone service charged to customers in the district was capped at $.27 for residential customers, $.71 for business Customers and $1.13 for trunks. (The same cap remains in effect today.) On June 28, 1988, the board of managers named the Emergency Communications District of Denton County, Denco Area 9-1-1 District. District Overview Page 6 of 8 June 6, 2002 Structure Board of Managers. The board of managers is the governing body for the Denco Area 9-1-1 District. The county, participating cities and the Denton County Fire Chiefs Association appoint the board. The current board of managers is made up of the following members: Board Member Mr. Harlan Jefferson, Chairman Mayor Olive Stephens, Vice Chairman Mr, Al Brown, Secretary Mr. Jack Miller, Denton Chief Bruce Vamer, Carrollton Mr. Melvin Willis Represents Participating Cities Participating Cities Denton County Commissioners Court Denton County Commissioners Court Fire Chiefs Association Verizon, Advisory Board members serve staggered two-year terms and are eligible for reappointment. The Emergency Telephone Number Act states "the board shall manage, control and administer the district. The board may adopt rules for the operation of the district." The legislation also allows the board to appoint a director of communications for the district who serves as its general manager. The director, with approval from the board, provides for the service necessary to carry out the purposes of the Emergency Telephone Number Act. The Denco Area 9-1-1 District's staff is responsible for performing all the duties that may be required for the district to accomplish its mission within the framework provided by the board. The "Draft" Denco Area 9-1-1 District Fiscal Year 2003 Financial Plan provides for eleven full time staff members that provide the planning, operations and maintenance functions for the district. The organizational structure of the district includes three direct service program areas that serve the 9-1-1 PSAPs and emergency t I District Overview Page 7 of 8 June 3, 2002 service providers within the district. Included in the organizational chart are names of staff members in each program area. I Patty Cross Public Education/ Training Manager I Sandy Arnesen Public Education/ Training Secretary Board Managers I MikePedigoExecutiveDirectorCarlaFlowersBusinessManagerMarkPayne9-1-1SystemsManagerI Glint Cranford9-1-1 SystemsTechnicianDavidConnelInformationSystemsManager District Overview Page 8 of 8 June 3, 2002 The distdct will provide the most reliable, efficient, cost-effective andValue2: proven state-of-the-art technologies available at the lowest service fee rate possible. Goals The Denco Area 9-1-1 District has the following goals that support its endeavor to camj out its mission. Goal 1: To provide the policy, direction and control mechanisms necessary to assure that the Denco Area 9-1-1 District accomplishes its mission within the financial resources provided. Goal 2: To manage the Denco Area 9-1-1 District in an objective, efficient, effective and responsive manner. Goal 3: To increase public awareness of 9:1-1 issues and promote the proper use of the 9-1-1 system. Goal 4: To provide training programs which enable Public Safety Answering Point (PSAP) personnel to effectively use the 9-1-1 system. Goal 5: To provide and maintain a dependable, state-of-the-art enhanced 9-1-1 network. Goal 6: To assure that PS^Ps have the most accurate, reliable and useable data at all times. DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2003 FINANCIAL PLAN SECTION 3 FINANCIAL PLAN SUMMARY SUMMARY OF COST CLASSIFICATIONS DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2003 FINANCIAL PLAN SUMMARY Strategic Overview Fiscal Year 2002 The terrorist acts of September 11,2001, had a profound impact on the strategic direction of 9-1-1 administrative agencies across Amedca. It heightened their awareness to the need for moro effective and roliable 9-1-1 services and the throat to the security of the 9-1-1 systems. Because of this '~vake-up-call", the Denco Area 9-1-1 Distdct decided to re-examine its existing strategy and to take a new look at its purpose for existence. In December 2001, the Denco Area 9-1-1 Distdct Board of Managers began evaluating the district's mission statement and in April 2002, approved a new mission, values and goals statement. The provious mission statement was adopted in 1992. The district was in its 15th year, it had matured, and it was now time to reevaluate the emergency communications needs in Denton County and provide focus for its rosources in futuro years. The district plans to roview its mission statement at least every five years in the futuro. A copy of the mission, values and goals statement is included in Section 5 of this financial plan. As of September 11th, the Denco Area 9-1-1 District had already begun evaluating its network and was developing a Request for Proposal (RFP) for network and database services. The RFP had been in the planning stages for two years to coincide with the termination of an existing agreement for those services. The RFP was issued on October 8, 2002 and the district has spent much of the current fiscal year evaluating the rosponse. Even though Denco was disappointed that only one telecommunications service provider rosponded to the document, the proposal was very thorough. The primary changes from the existing services that wero included in the network and database proposal were increases in redundancy and diversity to the 9-1-1 networks and a more advanced, robust and redundant database platform. The response proposed duplicating the existing network with a secondary selective routing tandem and a second back-up network between the telephone company switching offices and the duplicate tandem. Even though the proposed network is too costly and cannot be supported within the existing service fee rate structure, Denco is working with the carrier to develop an alternative plan that will provide the redundancy needed to assure continued service in the event of a disaster. FY2003 Budget Summary .doc Page I of 6 The district is moving forward with the transition to the proposed database services. The enhanced database plafform will provide two mated database storage systems, with one located in Texas and the other in California. All 9-1-1 answering points will have the ability to retdeve 9-1-1 location information from both sites. The new platform will also accommodate the retrieval of location information for wireless 9-1-1 calls. Denco is currently in the process of migrating its wireless database to the new system and will move the wireline database in fiscal year 2003. In October 2001, the Denco Area 9-1-1 District began maintaining all of the district's 9-1-1 systems. In past years, it has contracted these services with incumbent telephone companies and that arrangement had served the district well. With the constant change in technology and the desire of Denco to remain responsive to member jurisdiction needs, the district's board decided that Denco member jurisdictions would be better served by the district maintaining the 9-1-1 systems. Since taking over the maintenance of the systems, the district staff has replaced all fifty-three workstations and monitors at its 9-1-1 answering points. Staff has also installed wide-area network servers at all twelve public safety answering points (PSAPs), implemented an online training and communications network and deployed map display software at all workstations. The district also trained more than 150 telecommunicators from across the district in the use of these new systems. As the district implemented new computer hardware, software and network enhancements, it standardized the configuration at all PS^Ps. This standardization has continued to decrease the number of calls for service. Not only does the distdct respond to calls for service from its answering points in a timely manner, it also has procedures in place to do preventative maintenance on the equipment and test systems on a regular basis. The move to internal 9-1-1 systems management has proven to be more efficient and cost effective. In the past, contractors were required to respond within two hours of a call for service. Denco staff frequently responds by telephone within five minutes and often can resolve problems over the phone. Maintenance personnel also have the ability to obtain control of the 9-1-1 computers from a remote location, via the district's wide area network, and often resolve problem in less time by not having to drive to the PSAP. In addition to revising its mission statement, evaluating its network and database systems and implementing a maintenance program for the 9-1-1 systems during fiscal year 2002, the Denco Area 9-1-1 District will have accomplished by FY2003 Budget Summary .doc Page 2 of 6 September 30th other objectives that were planned for fiscal year 2002, including, but not limited to, the following: Added an additional call taker position at the supervisor's desk in the Denton County Sheriff's Office PSAP. Relocated the Roanoke, UNT and Lake Dallas PSAPs to new facilities. Publish its second annual report and quarterly issues of The Denco Update newsletter. Implement a wireless contingency routing network at three small cities that do not have around-the-clock staffing. If there is a system failure, 9- 1-1 calls will be routed to a PSAP over the wireless network. Other systems are in place for the remainder of the district. Begin the deployment of Phase II enhanced wireless 9-1-1 services. Plans are to complete the deployment with VoiceStream and Sprint PCS, and begin deployment with other wireless carders during the current fiscal year. Participate in a statewide wireless education campaign. Provide a computer based testing tool that will be used by all agencies when evaluating potential telecommunicators. Fiscal Year 2003 The Denco Area 9-1-1 Distdct has planned for five years for fiscal year 2003, which will deplete the majority of the reserve funds that it has been accumulating. The most visible and the most costly plans for the distdct during fiscal year 2003 include the deployment of Phase II enhanced wireless 9-1-1 services, the renewal of a network and database service agreement and the purchase and installation of two new PSAP equipment servers. Denco will begin deploying Phase II enhanced wireless services during fiscal year 2002, but expects the financial impact of the service to be during fiscal year 2003. The district has budgeted $1,000,000 during fiscal year 2003 for non- recurring costs associated with the deployment of Phase I1 services. The district has set these funds aside in a Designated Phase II Wireless account. Denco signed a seven-year agreement in 1995 with GTE (now Vedzon) for the purchase of selective routing and database services. At that time, the district moved to digital selective routing software that provided services not available previously. The digital platform was the first provided in Texas and the cost for the services were negotiated prior to a tariff.being approved by the Public Utility Commission of Texas (PUC). The PUC approved the agreement on an individual case basis. The cost for the services were fixed for the term of the agreement and not allowed to escalate with growth in the district. The contract expires in fiscal year 2003 and Denco will be required to pay the tadff rate for the services, increasing its annual costs by close to $300,000. FY2003 Budget Summary .doc Page 3 of 6 The distdct requested bids from vendors during the current year for the purchase of two new CML ECS '1000 PSAP Controller switches. The switches provide the intelligence for the fifty-three 9-1-1 call taker positions that Denco supports. Over the past five years, Verizon has maintained these switches for the district. Beginning next fiscal year, Denco will assume that function with the installation of the two new PSAP Controller switches. At the time of installation, Denco will program the switches with matching databases so that they will be consistent and more easily maintained. One switch will be located in Carrollton and serve the Carrollton, The Colony, Lewisville, Flower Mound and Highland Village PSAPs. The second switch will be located in Denton and serve the City of Denton, Denton County Sheriff's Department, Lake Dallas, Roanoke, UNT and TWU PSAPs. The existing-switch located in Carrollton will be relocated to the Denco facility and be used as a controller for the district's training PSAP and lab for research purposes. In addition, the district will be evaluating the potential of using it as a back-up server for PSAPs. It will require some upgrade, depending on the extent of its use. Denco has budgeted $510,000 in its fiscal year 2003 capital expenditure budget for the purchase and delivery of the two new switches and the relocation and upgrade of the existing switch. In addition to the projects discussed and the ongoing services Denco provides its member jurisdictions, fiscal year 2003 plans include the following: Actively participate in legislative and regulatory issues that might have an affect on the operations of the Denco Area 9-1-1 District. Conduct a public hearing that is required every three years regarding the continuation or dissolution of the emergency communication district. Continue with the development and distribution of a wireless 9-1-1 public awareness campaign. There are many misconceptions regarding the accuracy and reliability of enhanced wireless 9-1-1 services. Offer additional classes that provide state certification at the intermediate level for telecommunicators. Provide district-wide training that might assist PSAPs decrease the turnover of telecommunicators. Audit the 9-1-1 networks to assure that diverse and redundant voice and data paths are operational. Move wireline database to new platform. Implement new statistical gathering and reporting software. FY2003 Budget Summary .doc Page 4 of 6 Financial Overview Revenue Highlights Service fee revenue is expected to increase in fiscal year 2003 by 117,335. Projected interest earned for FY2003 is anticipated to be close to that of the current fiscal year. Interest revenue in fiscal year 2002 is expected to be lower than budgeted because of lower interest rates. Denco received a pre-paid maintenance refund this year of $148,417. The financial plan for 2003 projects a refund of $47,808. This lower refund accounts for the small increase in total revenue anticipated in fiscal year 2003. Denco expects to receive $61,044 for contract services provided to the county for addressing maintenance in unincorporated Denton County. Denco estimates a net increase of $16,767 in total revenues in FY 2003. Expenditure Highlights FY2003 Budg~Summa~ .doc Total Personnel expenditures ara proposed to increase by $101,605 in fiscal year 2003. Reasons for the increase include the following: The budget includes a four percent incraase in total salaries for existing personnel. Also included is the addition of a GPS Field Technician. This will be a new staff position rasponsible for the gathering of data to be included in the 9-1-1 database. This position will eliminate two contract personnel positions that have been included in the last two fiscal years. The software the district is using to gather GIS data is special purpose software that requiras advanced training that is not available to independent contract personnel. Also included in personnel cost is an incraase in health benefit costs. Due to the small number of its staff, the distdct expects a 50 pement increase in health benefits next fiscal year. The budget includes a 20 percent increase in the district's contribution to healthcara insurance benefits. Operations expenditures are expected to increase by $11,866 in fiscal year 2003. Most of the increase is included in office space/maintenance, insurance and costs ralated to the legislative session that begins in January 2003. Diract Service expenditures ara expected to incraase by $1,079,992. The major reasons, as explained earlier, ara the $1,000,000 that are set aside for the implementation of Phase II enhanced wireless 9-1-1 services and the $280,224 incraase in network and database services requirad by the new tariff rates. Capital expendituras ara expected to increase by $345,359. $568,000 of the total $580,000 capital budget is for the purchase of PSAP equipment. Included is the purchase of the two new ECS 1000 PSAP Controller switches and the upgrade to the existing switch. Page 5 of 6 Debt Service drops to zero. During fiscal year 2002, Denco will complete its five-year lease purchase agreement for the 9-1-1 equipment that it bought in 1997. The ending fund balance projected for the next five years provides a strong financial position for the district at the existing service fee rate. The Denco Area 9-1-1 District Board of Managers is committed to providing the best service available within the present day funding structure. FY2003 Budget Summary .doc Page 6 of 6 0 DENCO AREA 9-1-1 DISTRICT SUMMARY OF COST CLASIFICATIONS Personnel includes staff salary, deferred compensation, health care and retirement benefits. Also included are costs for state unemployment tax and employer's contribution to Medicare. Operations Includes overhead costs for ongoing 9-1-1 emergency network suppod services. Communications Includes telecommunication, printing/publishing and postage/shipping costs necessary for the distdct to disseminate information. Telecommunication costs includes local and long-distance office telephone and wireless service, internet, pager, and telephone equipment expense. Printing/Publishing includes all costs of outside printing, binding, collating, design, layout, photography, art work, and similar costs related to the preparation and publication of printed material such as letterhead, newsletter shells, envelopes, business cards and video presentations. Postaae/Shiopino includes all general and overnight postage, insurance, freight, delivery, meter rental and other related costs except when postage and shipping are included in the total purchase price of a specific item. Expendable Supplies includes the cost of routine expendable office supplies and commercially available software. Supplies also include the costs associated with service awards and meetings. Professional Services Includes the cost of legal fees, accounting services, independent audit and professional development cost for conference registration, tuition reimbursement, reimbursement paid to new employees as part of recruitment agreement, and staff training. Includes cost of all service, repair, support and maintenance incurred after initial purchase of furniture, fixtures, and equipment. summary of cost classifications.doc Page 1 of 4 Office Space/Maintenance Includes the cost of utilities, building services, maintenance and repair expense for office and training facility owned by district. Memberships/Subscriptions Includes individual and organizational memberships to professional organizations such as National Emergency Number Association (NENA), Association of Public Safety Communications Officials-International (APCO), and American Society for Training and Development (ASTD). Includes subscriptions to newspapers, periodicals, information services, technical support publications and the pumhase or rental of books, videos and recordings. Advertising Includes the cost of public service announcements, required legal notices, public meeting notices, solicitation for bids, job announcements, and other costs related to the media. Insurance Includes general liability, errors and omissions, property and workers compensation insurance required for the district board and staff. Also, includes property insurance for PSAP equipment owned by district not located at Denco facilities. Travel Includes out of district travel costs such as, but not limited to mileage reimbursement, airfare, food, lodging, local transportation, parking, telephone, etc. when such costs are reasonable and when they are incurred in conjunction with board and authorized staff travel out of the district. Also included is reimbursement for the use of personal vehicles on official business within the district. DIRECT SERVICES Includes all non-recurring and recurring costs attributed directly to the operations, maintenance, equipment, network and database required in the provision of 9-1-1 services. Does not include the cost for equipment purchased and owned by the district. Also included are direct costs for information system services, public education and training for telecommunicators. summary of cost classifications.doc Page 2 of 4 9-1-1 Systems Includes operations, service and direct maintenance costs required for Denco to maintain the 9-1-1 systems. Also included are non-recurring and monthly recurring costs for network and database services, language interpretation and other recurring services. Information Systems Includes operations, service and direct maintenance costs required to develop and distribute 9-1-1 GIS and other database information to public safety answering points and emergency response agencies. Included are costs for contract personnel, the pumhase of aerial photography files and the service and maintenance of hardware and software required to provide the data. Public Education Includes operating costs required for the development, pumhase and distribution of public information and education materials for special focus groups and district at large. Also includes costs for special functions such as National Telecommunicator Week recognition and 9-1-1 Day activities. Training Includes cost for materials, instructors, registration, etc., associated with meeting the training needs of 9-1-1 call takers. Also included are direct costs required for Denco to sponsor telecommunicators from across the district to the State of Texas annual awards and appreciation activities and recipients of the Dr. Allen Groff Emergency Medical Dispatch (EMD) Scholarship to the national EMD conference. CAPITAL EXPENDITURES Includes all capital expenditures for the purchase of fixed assets such as land, building, furniture and fixtures and equ!pment. Land Includes all costs associated with the purchase of land including purchase pdce, real estate commissions and all related professional fees. Building Includes all costs associated with the improvement, construction or purchase of building facilities. Includes all construction costs, professional fees and permits. summary of cost classifications.doc Page 3 of 4 Furniture and Fixtures Includes purchase pdce plus ail expenditures related to the shipping, freight, transportation and installation of fumiture and fixtures. Office Equipment Includes the cost of office equipment including the purchase price plus all expenditures connected with the acquisition and installation of the equipment. PSAP Equipment Includes the cost of computer and other PSAP equipment that is purchased by the district and carried as a fixed asset. DEBT SERVICE Includes principal, interest, and other payments directly related to the repayment of debt. summary of cost classifications.doc Page 4 of 4 DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2003 FINANCIAL PLAN SECTION 4 ANITClPATED REVENUES PROPOSED EXPENDITURES DENCO AREA 911 DISTRICT FINANCIAL PLAN Beginning of Year Fund Balance 1,483,949 Anticipated Revenues 9-1-1 Service Fee Revenue Interest Revenue Contract Services Revenue Miscellaneous Revenue (Expense) Total Anticipated Revenues 2,703,614 27,101 61,044 47.808 2,839,568 Proposed Expenditures Personnel Operations Direct Services Capital Expenditures Debt Service Total Proposed Expenditures Revenues Over (Under) Expenditures 833,271 136,263 2,360,751 580,000 3,9'10,285 1.070.717) End of Year Fund Balance FY2003 Financial Plan.xls,6/6/2002,1:30 PM 95.21% 0.95% 2.15% 1.68% 100.00% 21.31% 3.48% 60.37% 14.83% 0.00% 100.00% DENCO AREA 911 DISTRICT FINANCIAL PLAN Service Fee Revenue Vedzon SBC Spdnt CenturyTel Other Local Exchange Carriers (CLECs)Pdvate Switch Service FeesTelephoneCompanyAdministrative ChargesTelephoneCompanyUncollectibleChargesTelephoneCompanyAdjustments Net Wireline Service Fee Revenue Wireless Service Fee Revenue Total Service Fee Revenue Non Service Fee Revenue Interest Revenue Contract Service Revenue Miscellaneous Revenue (Expenses) Total Non Service Fee Revenue Total Revenue 930,052 157,704 34,897 59,021 192,826 5,398 12,000) 1,200) ooo) 1,351,697 2,703,614 27,101 61,044 47.808 135,953 2,839,568 FY2003 Financial Plan.x~s,6/6/2002,1:30 PM 32.75% 5.55% 1.23% 2.08% 6.79% 0.19% 0.42% 0.04% 47.60% 47.61% 95.21% 0.95% 2.15% J .68% 4.79% 100.00% DENCO AREA 911 DISTRICT FINANCIAL PLAN Personnel Expenditures Salaries Benefits Operations Expenditures Communications Telecommunications Printing Postage/Shipping Supplies Professional Services Legal Services Independent Audit Professional Development Other Professional Services Office Space/Maintenance Memberships/Subscriptions Advertising Insurance Travel Out of District In District Direct Service Expenditures 9-1-1 Systems Information Systems Public Education/Training Capital Expenditures Building Fumiture and Fixtures Office Equipment PSAP Equipment Debt Service Expenditures PSAP Equipment Debt Total Total Total Total Total 613,742 833,271 11,171 2,060 5,872 11,500 16,000 2,800 7,101 9,970 32,830 1,359 900 11,400 16,650 6.650 136,263 2,228,191 37,715 94.845 2,360,751 3,000 2,OOO 7,000 568.000 58O,0OO o 3,910,285 FY2003 Financial Plan.xls,6/6/2002,1:30 PM 15.70% 5.61% 21.31% 0.29% 0.05% 0.15% 0.29% 0.00% 0.41% 0.07% 0.18% 0.25% 0.84% 0.03% 0.02% 0.29% 0.43% 0.17% 3.48% 56.98% 0.96% 2.43% 60.37% 0.08% 0.05% 0.18% 14.53% 14.83% 0.00% 0.0O% 100.00% DENCO AREA 911 DISTRICT FINANCIAL PLAN Be~linning of Year Fund Balance $1,260,856 $1,483,949 $413,232 $513,875 $598,841 $654,718 Revenue Net Service Fee Revenue $2.586,279 .$2~703.6t4 $2,865,831 $3,037.781 $3,220.048 $3.413.251 Interest Revenue $27,101 $27,101 $10,331 $12.847 $14.971 $15.368 Miscellaneous Revenue (Expense) $61,044 $61,044 $61,044 $61.044 $61.044 $61.044 ontract Services Revenue $148.377 $47.808 ~0. ~)_ SD. ~ Total Revenue $2,822,801 $2,839,568 $2,937,206 $3,111,672 $3,296,063 $3,490,663 Expenditures Personnel $731,665 $833,271 $686.04~ $046.575 $1.014,557 $1.085.633 Dperations $124,397 $135,263 $142.013 $140.364 $155,331 $162.033 Direct Services $1.288,759 $2,360~751 $1,544,503 $1,662.767 $1.790.297 $1.927.826 CapEal Expenditures $234,641 $580,00{) $262,000 $267.000 $280,000 $280.000 Debt Service $228,245 $0 $0 $0 $0 $0 Total Expenditures $2,599,707 $3,910,285 $2,836,563 $3,026,706 $3,240,186 $3,456,492 Revenue over (Under) Expenditures $223,094 ($1,070,717] $t00,643 $84,966 $55,877 $34,171 End of Year Fund Balance $1.483.949 $413.232 $513.875 $598.841 $654.718 $688.889 F'(20Q3 Financial Plan.xls,6/6/20O2,1:30 PM 4 DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2003 FINANCIAL PLAN SECTION 5 APPENDIX MISSION STATEMENT HB 1984 RESOLUTIONS DISTRICT LEGISLATION DENCO AREA 9-1-1 DISTRICT Mission, Values and Goals Statement Mission The mission of the Denco Area 9-1-1 District is to assist its member jurisdictions respond to police, fire and medical emergency calls by providing an efficient, effective enhanced 9-1-1 emergency telecommunications system. Values The Denco Area 9-1-1 District pledges to uphold the following values: Value 1: Control of district operations is the responsibility of member jurisdictions and the board of managers. Value 2: The district will provide the most reliable, efficient, cost-effective and proven state-of-the-art technologies available at the lowest service fee rate possible. Goals The Denco Area 9-1-1 District has the following goals that support its endeavor to carry out its mission. Goal 1: To provide the policy, direction and control mechanisms necessary to assure that the Denco Area 9-1-1 District accomplishes its mission within the financial resoumes provided. Goal 2: To manage the Denco Area 9-1-1 District in an objective, efficient, effective and responsive manner. Goal 3: To increase public awareness of 9-1-1 issues and promote the proper use of the 9-1-1 system. Goal 4: To provide training programs which enable Public Safety Answering Point (PSAP) personnel to effectively use the 9-1-1 system. Goal 5: To provide and maintain a dependable, state-of-the-art enhanced 9-1-1 network. Goal 6: To assure that PSAPs have the most accurate, reliable and useable data at all times. H.B. No. 1984 AN ACT relating to the consolidation of emergency communication districts and to the approval of proposed budgets of certain emergency communication districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 771.001(3), Health and Safety Code, is amended to read as follows: 3) "Emergency communication district" means: A) a public agency or group of public agencies acting jointly that provided 9-1-1 service before September 1, 1987, or that had voted or contracted before that date to provide that service; or B) a district created under Subchapter B, C, [eF] D, or F, Chapter 772. SECTION 2. Sections 772.309(b), (c), and (d), Health and Safety Code, are amended to read as follows: b) The board shall submit a draft of the proposed budget to the qoverninq bodies of the participating jurisdictions not later than the 45th day before the date the boarcl adopts the budget. The participating jurisdictions shall review the proposed budget anti submit any comments regarding the budget to the board. c) If the governing body of a county, municipality, or other participating iurisdiction does not approve or disapprove the budget before the 61 st day after the date the body received the proposed budget for review, the budget is approved by operation of law. d) A revision of the budget must be approved in the same manner as the budget. budget legislation,doc Page 1 of 2 e) [(-c-)] As soon as practicable after the end of each district fiscal year, the director shall prepare and present to the board and to each participating jurisdiction in writing a sworn statement of all money received by the district and how the money was used during the preceding fiscal year. The report must show in detail the operations of the district for the fiscal year covered by the report. d)] The board shall have an independent financial audit of the distdct performed annually. budget legislation,doc Page 2 of 2 DENCO AREA 9-1-1 DISTRICT RESOLUTION DEFINING THE DENCO AREA 9-1-1 DISTRICT BUDGET APPROVAL POLICY WHEREAS, the Denco Area 9~1-1 District was created under Texas Health and Safety Code and the voters of Denton County to design, implement and operate a 9-1-1 system for all participating jurisdictions; and WHEREAS, the Board of Managers is appointed by participating jurisdictions to manage, control and administer the district; and WHEREAS, under the direction of the Board of Managers, the executive director prepares an annual budget that must be approved by the board, the commissioners court and the majodty of participating cities; NOW, THEREFORE BE IT RESOLVED BY THE DENCO AREA 9-t-1 DISTRICT BOARD OF MANAGERS THAT: 1. The Denco Area 9-1-1 District approved budget shall include specific revenue and expenditure projections by department. Budget departments as defined in district's annual audit include service fee revenue, interest revenue and miscellaneous revenue. Expenditure departments include personnel services, operations, direct services, capital outlay and debt service. The board, at its discretion, may add or delete budget departments. 2. The executive director shall submit to the Board of Managers requests for amendments, revisions or modifications to the district's annual budget that require an increase in any budget department's expenditures in excess of five percent of the total department budget. Any increase of expenditures in excess of the approved department budget, up to five percent, shall be offset by a decrease of an equal amount in another department budget. 3. Without limiting the Board of Managers authority under Section 772, Texas Health and Safety Code, the Board of Managers may approve amendments, revisions or modifications to the District's annual budget as deemed reasonable and necessary as long as such budget amendments, revisions or modifications do not require that the total expenditures budgeted exceed the amount previously approved and adopted by the Board of Managers, the Denton County Commissioners Court and the majority of participating cities' governing bodies. APPROVED and ADOPTED on this 6th day of April 2000. Chairman, Board of Managers Secretary, Board of Managers budget approval policy.doc Page I of 1 DENCO AREA 9-1-1 DISTRICT RESOLUTION DEFINING PROCEDURES FOR CONSIDERATION AND APPOVAL OF A BUDGET WHEREAS, Sections 772.309(b)&(c), Texas Health and Safety Code have been amended by the Texas Legislature to specify certain procedures for the consideration and approval of a budget by the Board and governing bodies of participating jurisdictions. NOW, THEREFORE BE IT RESOLVED BY THE DENCO AREA 9-1-1 DISTRICT BOARD OF MANAGERS: The Board's procedures for consideration and approval of a budget shall include the following: 1. Not later than the th45 day before the Board adopts a budget, the Executive Director on behalf of the Board will submit a draft of the proposed budget to each of the governing bodies of the participating jurisdictions, in a transmittal letter accompanying the draft of the proposed budget, the Executive Director will include a statement requesting that the governing bodies of each of the participating jurisdictions review the draft of the proposed budget and submit any comments to the Board prior to or on the date the budget is scheduled for consideration and adoption by the Board. 2. Once the Board adopts the budget, the Executive Director on behalf of the Board will within three days either 1 ) send a letter to each of the governing bodies of the participating jurisdictions stating that the Board adopted the proposed budget without any changes or 2) send a copy of the budget adopted by the Board and include in a letter the differences between the proposed and adopted budget. In the letter to the governing bodies of the participating jurisdictions, the Executive Director will include a statement requesting approval of the Board's adopted budget by the governing bodies of participating jurisdictions within sixty days of receipt. APPROVED and ADOPTED on this 2"d day of December 1999. Chairman, Board of Managers Secretary, Board of Managers Budget Approval Procedures.doc 'Page 1 of I 0 SUBCHAPTER D. EMERGENCY COMMUNICATION DISTRICTS: COUNTIES WITH POPULATION OVER 20,000 772.301. Short Title This subchapter may be cited as the Emergency Telephone Number Act. Acts 1989, 71st Leg, ch. 678, § 1, eft. Sept. 1, 1989. 772.302. Purpose It is the purpose of this subchapter to establish the number 9-1-1 as the primary emergency telephone number for use by certain local governments in this state and to encourage units of local government and combinations of those units to develop and improve emergency communication procedures and facilities in a manner that will make possible the quick response to any person calling the telephone number 9-1-1 seeking police, fire, medical, rescue, and other emergency services. To this purpose the legislature finds that: 1) it is in the public interest to shorten the time required for a citizen to request and receive emergency aid; 2) there exist thousands of different emergency telephone numbers throughout the state, and telephone exchange boundaries and central office service areas do not necessarily correspond to public safety and political boundaries; 3) a dominant part of the state's population is located in rapidly expanding metropolitan areas that generally cross the boundary lines of local jurisdictions and often extend into two or more counties; and 4) provision of a single, primary three-digit emergency number through which emergency services can be quickly and efficiently obtained would provide a significant contribution to law enforcement and other public safety efforts by making it less difficult to notify public safety personnel quickly. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.303. Definitions In this subchapter: 1) "Board" means the board of managers of a district. Health and Safety Code, Chapter 772.300 Page 1 of 16 2) "Director" means the director of communication for a district. 3) "District" means an emergency communication district created under this subchapter. Acts 1989, 71st Leg., ch:678, § 1, eft. Sept. 1, 1989. 772.304. Application of Subchapter a) This subchapter applies only to a county with a population of more than 20,000 or to a group of two or more contiguous counties each with a population of 20,000 or more in which an emergency communication district was created under Chapter 288, Acts of the 69th Legislature, Regular Session, 1985, before January 1, 1988, or to a public agency or group of public agencies that withdraws from participation in a regional plan under Section 771.058(d). b) This subchapter does not affect the authority of a public agency to operate under another law authorizing the creation of a district in which 9-1-1 service is provided. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 1405, § 32, eff. Sept. 1, 1999. 772.305. Additional Territory a) If a municipality that is part of a district annexes territory that is not part of the district, the annexed territory becomes part of the district. b) A public agency located in whole or part in a county adjoining the district, by resolution adopted by its governing body and approved by the board of the district, may become part of the district and subject to its benefits and requirements. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.306. Board of Managers a) A district is governed by a board of managers. b) If the most populous municipality in the district has a population of more than 140,000, the board consists of: 1) one member for each county in the district appointed by the commissioners court of each county; Health and Safety Code, Chapter 772.300 Page 2 of 16 2) two members appointed by the governing body of the most populous municipality in the district; 3) one member appointed by the governing body of the second 'most populous municipality in the district; 4) one member appointed as provided by this section to represent the other municipalities located in whole or part in the district; and 5) one member appointed by the principal service supplier. c) If Subsection (b) does not apply to a district, the board consists of: 1) the following members representing the county or counties in the district: A) if the district contains only one county, two members appointed by the commissioners court of the county; B) if the district originally contained only one county but contains more than one county when the appointment is made, two members appointed by the commissioners court of the county in which the district was originally located, and one member appointed by the commissioners court of each other county in the district; or C) if the district originally contained more than one county and the district contains more than one county when the appointment is made, one member appointed by the commissioners court of each county in the district; 2) two members appointed jointly by all the participating municipalities located in whole or part in the district; 3) one member appointed jointly by the volunteer fire departments operating wholly or partly in the district, with the appointment process coordinated by the county fire marshal or marshals of the county or counties in the district; and 4) one member appointed by the principal service supplier. d) The board member appointed by the principal service supplier is a nonvoting member. If the board is appointed under Subsection (c), the principal service supplier may waive its right to appoint the board member and designate another service supplier serving all or part of the district to make the appointment. e) The board member appointed under Subsection (b)(4) is appointed by the mayor's council established to administer urban development block grant funds, if one exists in the district. Otherwise, the member is appointed by the other Health and Safety Code, Chapter 772.300 Page 3 of 16 members of the board on the advice and recommendation of the governing bodies of all the municipalities represented by the member. f) The initial board members appointed by municipalities under Subsection c)(2) are appointed by all the municipalities located in whole or part in the district. g) Board members are appointed for staggered terms of two years, with as near as possible to one-half of the members' terms expiring each year. h) A board member may be removed from office at will by the entity that appointed the member. i) A vacancy on the board shall be filled for the remainder of the term in the manner provided for the original appointment to that position. j) Board members serve without compensation. The district shall pay all expenses necessarily incurred by the board in performing its functions under this subchapter. k) The board may appoint from among its membership a presiding officer and any other officers it considers necessary. I) The director or a board member may be appointed as secretary of the board. The board shall require the secretary to keep suitable records of all proceedings of each board meeting. After each meeting the presiding officer at the meeting shall read and sign the record and the secretary shall attest the record. m) Voting members of the board may meet in executive session in accordance with Chapter 551, Government Code. n) A majority of the voting members of the board constitutes a quorum. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 76, § 5.95(82), eft. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 638, § 15, eft. Sept. 1, 1995. 772.307. Powers and Duties of Board a) The board shall control and manage the district. b) The board may adopt rules for the operation of the district. Health and Safety Code, Chapter 772,300 Page 4 of 16 c) The board may contract with any public or private entity to carry out the purposes of this subchapter, including the operation of a 9-1-1 system. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.308. Director of District a) The board shall appoint a director of communication for the district and shall establish the directors compensation. The director must be qualified by training and experience for the position. b) The board may remove the director at any time. c) With the board's approval, the director may employ any experts, employees, or consultants that the director considers necessary to carry out the purposes of this subchapter. d) The director shall perform all duties that the board requires and shall supervise as general manager the operations of the district subject to any limitations prescribed by the board. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.309. Budget; Annual Report; Audit a) The director shall prepare under the direction of the board an annual budget for the district. To be effective, the budget must: 1) be approved by the board; 2) be presented to and approved by the commissioners court of each county in the district; 3) be presented to and approved by the governing body of the most populous municipality in the district, if that municipality has a population of more than 140,000; and 4) be presented to the governing body of each other participating jurisdiction and approved by a majority of those jurisdictions. b) The board shall submit a draft of the proposed budget to the governing bodies of the participating jurisdictions not later than the 45th day before the date the board adopts the budget. The participating jurisdictions shall review the proposed budget and submit any comments regarding the budget to the board. Health and Safety Code, Chapter 772.300 Page 5 of 16 c) If the governing body of a county, municipality, or other participating jurisdiction does not approve or disapprove the budget before the 61st day after the date the body received the proposed budget for review, the budget is approved by operation of law. d) A revision of the budget must be approved in the same manner as the budget. e) As soon as practicable after the end of each district fiscal year, the director shall prepare and present to the board and to each participating jurisdiction in writing a'sworn statement of all money received by the district and how the money was used during the preceding fiscal year. The report must show in detail the operations of the district for the fiscal year covered by the report. f) The board shall have an independent financial audit of the district performed annually. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 1406, § 2, eft. Aug. 30, 1999. 772.310. Establishment of 9-1-1 Service a) A district shall provide 9-1-1 service to each participating jurisdiction through one or a combination of the following methods and features: 1) the transfer method; 2) the relay method; 3) the dispatch method; 4) automatic number identification; 5) automatic location identification; 6) selective routing; or 7) any equivalent method. b) A d!strict shall provide 9-1-1 service using one or both of the following plans: 1) the district may design, implement, and operate a 9-1-1 system for each participating jurisdiction with the consent of the jurisdiction; or Health and Safely Code, Chapter 772.300 Page6of 16 2) the district may design, implement, and operate a 9-1-1 system for two or moro participating jurisdictions with the consent of each of those jurisdictions if a joint operation would be moro economically feasible than separate systems for each jurisdiction. c) Under either plan authorized by Subsection (b), the final plans for the particular system must have the approval of each participating jurisdiction covered by the system. d) The district shall recommend minimum standards for a 9-1-1 system. e) A service supplier involved in providing 9-1-1 service, a manufacturor of equipment used in providing 9-1-1 service, or an officer or employee of a service supplier involved in providing 9-1-1 service is not liable for any claim, damage, or loss arising from the provision of 9-1-1 service unless the act or omission proximately causing the claim, damage, or loss constitutes gross negligence, recklessness, or intentional misconduct. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 638, § 16, eft. Sept. 1, 1995. 772.311. Primary Emergency Telephone Number The digits 9-1-1 are the primary emergency telephone number in a district. A public safety agency whose services aro available through a 9-1-1 system may maintain a separate number or numbers for emergencies and shall maintain a separate number or numbers for nonemergency telephone calls. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.312. Transmitting Requests For Emergency Aid a) A 9-1-1 system established under this subchapter must be capable of transmitting requests for fire-fighting, law enfomement, ambulance, and medical services to a public safety agency or agencies that provide the requested service at the place from which the call originates. A 9-1-1 system may also provide for transmitting requests for other emergency services such as poison control, suicide prevention, and civil defense. b) A public safety answering point may transmit emergency rosponse requests to private safety entities. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.313. Powers of District Health and Safety Coda, Chapter 772.300 Page 7 of 16 a) The distdct is a body corporate and politic, exemising public and essential governmental functions and having all the powers necessary or convenient to carry out the purposes and provisions of this subchapter, including the capacity to sue or be sued. b) To fund the district, the district may apply for, accept, and receive federal, state, county, or municipal funds and private funds and may spend those funds for the purposes of this subchapter. The board shall determine the method and soumes of funding for the district. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.314. 9-1-1 Emergency Service Fee a) The board may impose a 9-1-1 emergency service fee on service users in the district. b) The fee may be imposed only on the base rate charge or its equivalent, excluding charges for coin-operated telephone equipment. The fee may not be imposed on more than 100 local exchange access lines or their equivalent for a single business entity at a single location, unless the lines ars used by residents of the location. The fee may also not be imposed on any line that the Advisory Commission on State Emergency Communications excluded from the definition of a local exchange access line or an equivalent local exchange access line pursuant to Section 771.063. If a business service user provides residential facilities, each line that terminates at a residential unit and that is a communication link equivalent to a residential local exchange access line shall be charged the 9-1-1 emergency service fee. The fee must have uniform application and must be imposed in each participating jurisdiction. c) The rate of the fee may not exceed six percent of the monthly base rate in a service year charged a service user by the principal service supplier in the participating jurisdiction. For purposes of this subsection, the jurisdiction of the county is the unincorporated area of the county. d) The board shall set the amount of the fee each year as part of the annual budget. The board shall notify each service supplier of a change in the amount of the fee not later than the 91 st day before the date the change takes effect. e) In imposing the fee, the board shall attempt to match the district's revenues to its operating expenditures and to provide reasonable reserves for contingencies and for the purchase and installation of 9-1-1 emergency service equipment. If the revenue generated by the fee exceeds the amount of money needed to fund the district, the board by resolution shall reduce the rate of the fee to an amount adequate to fund the district or suspend the imposition of the fee. If the board suspends the imposition of the fee, the board by resolution may Health and Safety Code, Chapter 772.300 Page 8 of 16 reinstitute the fee if money generated by the distdct is not adequate to fund the district. 0 In a public agency whose governing body at a later date votes to receive 9-1-1 service from the district, the fee is imposed beginning on the date specified by the board. The board may charge the incoming agency an additional amount of money to cover the initial cost of providing 9-1-1 service to that agency. The fee authorized to be charged in a district applies to new territory added to the district when the territory becomes part of the district. g) For the purposes of this section, the jurisdiction of the county is the unincorporated area of the county. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 936, § 14, eft. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1203, § 5, eft. June 18, 1999. 772.315. Collection of Fee a) Each billed service user is liable for the fee imposed under Section 772.314 until the fee is paid to the service supplier. The fee must be added to and stated separately in the service user's bill from the service supplier. The service supplier shall collect the fee at the same time as the service charge to the service user in accordance with the regular billing practice of the service supplier. A business service user that provides residential facilities and owns or leases a publicly or privately owned telephone switch used to provide telephone service to facility residents shall collect the 9-1-1 emergency service fee and transmit the fees monthly to the district. b) The amount collected by a service supplier from the fee is due monthly. The service supplier shall remit the amount collected in a calendar month to the district not later than the 60th day after the last day of the calendar month. With each payment the service supplier shall file a return in a form prescribed by the board. c) Both a service supplier and a business service user under Subsection (a) shall maintain records of the amount of fees it collects for at least two years after the date of collection. The board may require at the board's expense an annual audit of a service supplier's books and records or the books and records of a business service user described by Subsection (a) with respect to the collection and remittance of the fees. d) A business service user that does not collect and remit the 9-1-1 emergency service fee as required is subject to a civil cause of action under Subsection (g). A sworn affidavit by the district specifying the unremitted fees is Health and Safety Code, Chapter 772.300 Page 9 of 16 prima facie evidence that the fees were not remitted and of the amount of the unremitted fees. e) A service supplier is entitled to retain an administrative fee from the amount of fees it collects. The amount of the administrative fee is two pement of the amount of fees it collects under this section. f) A service supplier is not required to take any legal action to enforce the collection of the 9-1-1 emergency service fee. However, the service supplier shall provide the district with an annual certificate of delinquency that includes the amount of all delinquent fees and the name and address of each nonpaying service user. The certificate of delinquency is prima facie evidence that a fee included in the certificate is delinquent. A service user account is considered delinquent if the fee is not paid to the service supplier before the 31st day after the payment due date stated on the user's bill from the service supplier. g) The district may institute legal proceedings to collect fees not paid and may establish internal collection procedures and recover the cost of collection from the nonpaying service user. If the district prevails in legal proceedings instituted to collect a fee, the court may award the district court costs, attorney's fees, and interest in addition to other amounts recovered. A delinquent fee accrues interest at an annual rate of 12 percent beginning on the date the payment becomes due. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 936, § 15, eft. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 638, § 17, eft. Sept. 1, 1995. 772.316. District Depository a) The board shall select a depository for the distdct in the manner provided by law for the selection of a county depository. b) A depository selected by the board is the district's depository for two years after the date of its selection and until a successor depository is selected and qualified. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.317. Allowable Expenses Allowable operating expenses Of a district include all costs attributable to designing a 9-1-1 system and to all equipment and personnel necessary to establish and operate a public safety answering point and other related answering points that the board considers necessary. Health and Safety Code, Chapter 772.300 Page 10 of 16 Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.318. Number and Location Identification a) As part of computerized 9-1-1 service, a service supplier shall furnish current telephone numbers of subscribers and the addresses associated with the numbers on a call-by-call basis. b) A business service user that provides residential facilities and owns or leases a publicly or privately owned telephone switch used to provide telephone service to facility residents shall provide to those residential end users the same level of 9-1-1 service that a service supplier is required to provide under Subsection (a) to other residential end users in the district. c) Information furnished under this section is confidential and is not available for public inspection. d) A service supplier or business service user under Subsection (b) is not liable to a person who uses a 9-1-1 system created under this subchapter for the release to the district of the information specified in Subsections (a) and (b). Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 936, § 16, eft. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 638, § 18, eft. Sept. 1, 1995. 772.319. Public Review a) Periodically, the board shall solicit public comments and hold a public review hearing on the continuation of the district and the 9-1-1 emergency service fee. The first hearing shall be held three years after the date the order certifying the creation of the district is filed with the county clerks. Subsequent hearings shall be held three years after the date each order required by Subsection (d) is adopted. b) The board shall publish notice of the time and place of the hearing once a week for two consecutive weeks in a daily newspaper of general circulation published in the district. The first notice must be published not later than the 16th day before the date set for the hearing. c) At the hearing, the board shall also solicit comments on the participation of the distdct in the applicable regional plan for 9-1-1 service under Chapter 771. After the hearing, the board may choose to participate in the regional plan as 3rovided by that chapter. Heal. and Safe. Code, Chap~r 772.300 Page 11 of 16 d) After the hearing, the board shall adopt an order on the continuation or dissolution of the district and the 9-1-1 emergency service fee. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.320. Dissolution Procedures a) If a distdct is dissolved, 9-1-1 service must be discontinued on the date of the dissolution. The commissioners court of the county in which the district was located or, if the district contains more than one county, the commissioners courts of those counties acting jointly, shall assume the assets of the district and pay the district's debts. If the district's assets are insufficient to retire all existing debts of the district on the date of dissolution, the commissioners court or courts acting jointly shall continue to impose the 9-1-1 service fee, and each service supplier shall continue to collect the fee for the commissioners court or courts. Proceeds from the imposition of the fee after dissolution of the distdct may be used only to retire the outstanding debts of the district. b) The commissioners court or courts shall retire the district's debts to the extent practicable according to the terms of the instruments creating the debts and the terms of the orders and resolutions authorizing creation of the debts. c) The Commissioners court or courts by order may adopt the rules necessary to administer this section, Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.321. Issuance of Bonds The board may issue and sell bonds in the name of the district to finance: 1) the acquisition by any method of facilities, equipment, or supplies necessary for the district to begin providing 9-1-1 service to all participating jurisdictions; and 2) the installation of equipment necessary for the distdct to begin providing 9-1-1 service to all participating jurisdictions.. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.322. Repayment of Bonds The board may provide for the payment of the principal of and interest on the bonds by pledging all or any part of the district's revenues from the 9-1-1 emergency service fee or from other sources. Health and Safety Code, Chapter 772.300 Page 12 of 16 Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.323. Additional Security for Bonds a) The bonds may be additionally secured by a deed of trust or mortgage lien on part or all of the physical properties of the district and the rights appurtenant to those properties, vesting in the trustee power to sell the properties for payment of the indebtedness, power to operate the properties, and all other powers necessary for the further security of the bonds. b) The trust indenture, regardless of the existence of the deed of trust or mortgage lien on the properties, may include provisions prescribed by the board for the secudty of the bonds and the preservation of the trust estate and may make provisions for investment of funds of the district. c) A purchaser under a sale under the deed of trust or mortgage lien is the absolute owner of the properties and rights purchased and may maintain and operate them. Acts.1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.324. Form of Bonds a) A district may issue its bonds in various series or issues. b) Bonds may mature serially or otherwise not more than 25 years after their date of issue and shall bear interest at any rate permitted by state law. c) A district's bonds and interest coupons, if any, are investment securities under the terms of Chapter 8, Business & Commerce Code, may be issued registrable as to principal or as to both principal and interest, and may be made redeemable before maturity, at the option of the district, or contain a mandatory redemption provision. d) A district may issue its bonds in the form, denominations, and manner and under the terms, and the bonds shall be signed and executed, as provided by the board in the resolution or order authorizing their issuance. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.325. Provisions of Bonds a) In the orders or resolutions authorizing the issuance of bonds, including refunding bonds, the board may provide for the flow of funds and the establishment and maintenance of the interest and sinking fund, the reserve fund, and other funds and may make additional covenants with respect to the Health and Safety Code, Chapter 772.300 Page 13 of 16 bonds, the pledge revenues, and the operation and maintenance of any facilities the revenue of which is pledged. b) The orders or resolutions of the board authorizing the issuance of bonds may also prohibit the further issuance of bonds or other obligations payable from the pledged revenue or may reserve the right to issue additional bonds to be secured by a pledge of and payable from the revenue on a parity with or subordinate to the lien and pledge in support of the bonds being issued. c) The orders or resolutions of the board issuing bonds may contain other previsions and covenants as the board may determine. d) The board may adopt and have executed any other proceedings or instruments necessary and convenient in the issuance of bonds. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.326. Approval and Registration of Bonds a) Bonds issued by a district must be submitted to the attorney general for examination. b) If the attorney general finds that the bonds have been authorized in accordance with law, the attorney general shall approve them. On approval by the attorney general, the comptroller shall register the bonds. c) After the approval and registration of bonds, the bonds are incontestable in any court or other forum for any reason and are valid and binding obligations according to their terms for all purposes. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.327. Refunding Bonds a) A district may issue bonds to refund all or any part of its outstanding bonds, including matured but unpaid interest coupons. b) Refunding bonds shall mature serially or otherwise not more than 25 years after their date of issue and shall bear interest at any rate or rates permitted by state law. c) Refunding bonds may be payable from the same source as the bonds being refunded or from other sources. Health and Safety Code, Chapter 772,300 Page 14 of 16 d) The refunding bonds must be approved by the attorney general as provided by Section 772.326 and shall be registered by the comptroller on the surrender and cancellation of the bonds refunded. e) The orders or resolutions authorizing the issuance of the refunding bonds may provide that they be sold and the proceeds deposited in the place or places at which the bonds being refunded are payable, in which case the refunding bonds may be issued before the cancellation of the bonds being refunded. If refunding bonds are issued before cancellation of the other bonds, an amount sufficient to pay the principal of the bonds being refunded and interest on those bonds accruing to their maturity dates or to their option dates if the bonds have been duly called for payment before maturity according to their terms shall be deposited in the place or places at which the bonds being refunded are payable. The comptroller shall register the refunding bonds without the surrender and cancellation of bonds being refunded. f) A refunding may be accomplished in one or in several installment deliveries. Refunding bonds and their interest coupons are investment securities under Chapter 8, Business & Commerce Code. g) In lieu of the method set forth in Subsections (a)-(f), a district may refund bonds, notes, or other obligations as provided by the general laws of this state. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.328. Bonds as Investments and Security for Deposits a) District bonds are legal and authorized investments for: 1) a bank; 2) a savings bank; 3) a trust company; 4) a savings and loan association; 5) an insurance company; 6) 'a fiduciary; 7) a trustee; 8) a guardian; and Health and Safely Code, Chapter 772,300 Page 15 of 16 9) a sinking fund of a municipality, county, school district, and other political subdivision of the state and other public funds of the state and its agencies, including the permanent school fund. b) Distdct bonds are eligible to secure deposits of public funds of the state and municipalities, counties, school districts, and other political subdivisions of the state. The bonds are lawful and sufficient security for deposits to the extent of their value when accompanied by all unmatured coupons. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.329. Tax Status of Bonds Because a district created under this subchapter is a public entity performing an essential public function, bonds issued by the district, any transaction relating to the bonds, and profits made in the sale of the bonds are exempt from taxation by the state or by any municipality, county, special district, or other political subdivision of the state. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Health and Safety Code, Chapter 772,300 Page 16 of 16