008 of 2004 - Budget amendment for Public Safety Communication Network. • 0 04-1
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SALT LAKE CITY ORDINANCE
No. 8 of 2004
(Amending Salt Lake City Ordinance No. 58 of 2003
which adopted the Final Budget of Salt Lake City,
including the employment staffing document,
for Fiscal Year 2003-2004)
AN ORDINANCE AMENDING SALT LAKE CITY ORDINANCE NO. 58 OF
2003 WHICH APPROVED, RATIFIED AND FINALIZED THE BUDGET OF SALT
LAKE CITY, UTAH, INCLUDING THE EMPLOYMENT STAFFING DOCUMENT,
FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 AND ENDING JUNE 30, 2004.
PREAMBLE
On August 12, 2003, the Salt Lake City Council approved, ratified and finalized
the budget of Salt Lake City, Utah, including the employment staffing document, for the
fiscal year beginning July 1, 2003 and ending June 30, 2004, in accordance with the
requirements of Section 118, Chapter 6, Title 10 of the Utah Code Annotated, and said
budget, including the employment staffing document, was approved by the Mayor of Salt
Lake City, Utah.
The City's Policy and Budget Director, acting as the City's Budget Officer,
prepared and filed with the City Recorder proposed amendments to said duly adopted
budget, including the amendments to the employment staffing document, copies of which
are attached hereto, for consideration by the City Council and inspection by the public.
All conditions precedent to amend said budget, including the employment staffing
document, have been accomplished.
Be it ordained by the City Council of Salt Lake City,Utah:
SECTION 1. Purpose. The purpose of this Ordinance is to amend the budget of
Salt Lake City, including the employment staffing document, as approved, ratified and
finalized by Salt Lake City Ordinance No. 58 of 2003.
SECTION 2. Adoption of Amendments. The budget amendments, including
amendments to the employment staffing document, attached hereto and made a part of
this Ordinance shall be, and the same hereby are adopted and incorporated into the budget
of Salt Lake City, Utah, including the employment staffing document, for the fiscal year
beginning July 1, 2003 and ending June 30, 2004, in accordance with the requirements of
Section 128, Chapter 6, Title 10, of the Utah Code Annotated.
SECTION 3. Certification to Utah State Auditor. The City's Policy and Budget
Director, acting as the City's Budget Officer, is authorized and directed to certify and file
a copy of said budget amendments, including amendments to the employment staffing
document, with the Utah State Auditor.
SECTION 4. Filing of copies of the Budget Amendments. The said Budget
Officer is authorized and directed to certify and file a copy of said budget amendments,
including amendments to the employment staffing document, in the office of said Budget
Officer and in the office of the City Recorder which amendments shall be available for
public inspection.
SECTION 5. Effective Date. This Ordinance shall take effect on its first
publication.
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Passed by the City Council of Salt Lake City, Utah, this 10th day of
February , 2004.
CHAIRPERSON
ATTEST:
Cam_
C IEF DEPUT T CORDER
Transmitted to the Mayr on February 11, 2004
Mayor's Action: Approved Vetoed
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ATTEST:
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CHIEF DEPUTY ITY CORDER z
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(SEAL)
Bill No. 8 of 2004.
Published: February 24, 2004 "'`""' .ems
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Salt Lake City Corporation
Management and Fiscal Note Worksheet
for
Budget Development and Budget Amendment
Police/Fire Departments 2003-2004
Department For Fiscal Year
Public Safety Communications Network FY04Emerg01
Initiative Name Initiative Number
Susi Kontgis/Mark Peck 535-6414/799-3201
Prepared By Phone Number
Emergency Initiative
Type of Initiative
Fiscal Impact of Proposed Change
2nd year of biennium Biennial Period
A. Revenue Impacted by Fund and Source: 1st Year 2nd Year 3rd Year
FY 2003-04 FY 2004-05 FY 2005-06
1.General Fund
Total $0 $0 \ $0
2. Internal Service Fund
Total $0 I $0 $0
3. Enterprise Fund
Total $0 I $0 I $0
4.Other Fund
83 Fund rent account at Pioneer Precinct(surplus cash of
$67,000)transfer to 83 Fund Public Safety Communications
Network(appropriation of fund balance) 0 0 0
Total $0 $0 $0
B. Expenditures Impacted by Fund and Source:
1.General Fund
Total $0 $0 $0
2. Internal Service Fund
Total $0 $0 I $0
3. Enterprise Fund
Total $0 I $0 I $0
4. Other Fund
83 Fund Balance of Rent project at Pioneer Precinct -67,000.00
83 Fund Contingency Accounts:
FY2000 -146,921.00
FY2001 -685.06
FY2002 -219,879.67
FY2003 -173,114.27
83 Fund Public Safety Communications Network 607,600.00
Total 0.00 $0 $0
C.Expenditure Impact Detail
1.Salaries and Wages
2. Employee Benefits
3.Operating and Maintenance Supply
4. Charges and Services and Contingency Accounts
5. Capital Outlay 607,600
6.Other(Specify)
$607,600 $0 $0
Budget Amendment Form1/12/200410:30 AM
Salt Lake City Corporation
Management and Fiscal Note Worksheet
for
Budget Development and Budget Amendment
D. Personnel Service Detail: FTE Grade/Step Amount
•
Budget Amendment Form1/12/200410:30 AM
•
E. Measured or measurable Impact on functions, structure and organization
F.Issue Discussion: A complete justification will contain a discussion of each of the elements mentioned below;criteria,condition,
effect,cause and recommendation.
Criteria is a definition of what is expected or what can be expected.it provides a basis for comparison without which analysis
cannot be effective. The criteria varies from issue to issue.In straightforward cases,it can be an ordinance or policy.In of
Condition is a description of current practices.It is the information to which the criteria is compared.
Effect is the difference,if any,between the condition and criteria.It is best described in terms of a dollar impact or a service level
impact.If an effect cannot be identified,there is no finding.
Cause is sometimes a difficult element to identify but is essential to a finding.it is simply identifying why the condition varies from
the criteria.Sometimes the answer is as simple as a change in policy or budget but often goes deeper into management
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Recommendation is made Iin a way that addresses the cause.By doing so,it is most likely to result in improving the condition to
be in line with the criteria.
This issue has been in -discussion for some time. An attached issue paper has been prepared
explaining the history, and provides a recommendation.
It should be noted that an application for a larger, citywide communication system was submitted to
the CIP Committee. The amount of funding was not approved by the committee because of its
size. This request is for a smaller portion of that larger request. Timing is also critical due to the
removal of the County system that we are currently using, and that we have a grant that will expire
March 31, 2004. Therefore, we cannot wait until the FY2005 budget appropriating process to
encumber these funds. The total cost of this project is $1,247,600. $640,000 will be funded from
a Federal grant in the Grant Operating Fund (72) cost center (72-20306)and the remaining
$607,600 will be funded from the Capital Improvement Fund.
The CIP contingency will have remaining $343,165.00
Issue: Public Safety Radio Communications
Policy
The City should build its own radio communication infrastructure to ensure adequate
control and fiscal stability of its communication network. A City-owned network will
allow City administrators to control costs while managing the network to ensure Salt
Lake City's public safety communication needs are the network's top priority.
Background
Salt Lake City has been wrestling with telecommunication needs since the early 1980's.
Issues associated with interoperability, which is the ability of multiple agencies to
communicate seamlessly, changing technology and the restructuring of federal regulations
have all increased the complexity of the telecommunication industry while creating new
challenges for local municipalities. Specifically, the Telecommunication Act of 1996
significantly changed the regulations governing the telecommunication industry and the
environment in which local municipalities must operate.
The federal government mandated that local governments must create a level playing
field for all telecommunication providers, and must not create barriers to entry for new
emerging companies. At the same time, the federal government was reallocating
spectrum, which is the frequency or bandwidth used by wireless technology to transmit
signals through space. This reallocation of spectrum, along with changing and emerging
new technologies, created pressure for municipalities and agencies providing public
safety services to implement 800 megahertz "trunking" systems and new communication
networks using state-of-the-art technology.
The FY1999 Salt Lake City budget included funding to install the infrastructure necessary
to upgrade the public safety communications system to 800 MHz technology, replacing
the 21-year old 150 and 460 MHz systems. Subsequently, radio and dispatch equipment
was acquired for the Police and Fire Departments in FY2000. In addition, the Police
Department has integrated mobile data technology in police vehicles, and the Fire
Department has almost completed the integration of mobile data technology in its
vehicles. These equipment upgrades have significantly modernized the communications
infrastructure for Salt Lake City's Police and Fire Departments; however, the voice radio
system remains the weakest link in the City's communication infrastructure.
Concurrent with the City's migration to 800 MHz communications, the State has been
working toward the development of statewide interoperable communications for the
benefit and use of public agencies. The 1997 legislative session created the Utah
Communications Agency Network (UCAN) to coordinate the development of system
standards and shared resources. Since UCAN's inception, their success has been mixed.
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Due to Salt Lake City's Olympic Winter Games, UCAN was successful in securing
millions of dollars worth of federal grant money to buy radios and build infrastructure;
however, since that time, the agency has not been able to operate without a deficit. UCAN
projected to operate at a loss of$672,826.97 in FY 2002-2003, but rather incurred a net
operating loss of$959.113.00. Similarly, UCAN's current budget, ending June 30, 2004,
projects an operating loss of$583,634, and the proposed budget for next year, FY 2004-
2005, is projecting a net operating loss of $353,918.64. UCAN plans to cover the net
operating losses from its federal grants received fund balance. This would reduce the
federal grant account fund balance from $2,978,481 to $2,454,416.
Initially, the State of Utah subsidized the development of the UCAN system by paying
$30 per month, per radio, for State agencies while local municipalities paid $17.50, per
month, per radio, for the same service. A current review of UCAN's budget reflects a
developing trend to eliminate State subsidies, and equalize the burden of financingthe
system to all users on the system. Below is UCAN's Service Rate Schedule from its
current budget which reflects the proposed cost per radio, per month, for UCAN
members. It should be noted, however, that there are several members like Salt Lake
County and Ogden City with contracts in place that cap the service rate for the upcoming
10 to 15 years. Therefore, the future burden of financing the maintenance of the system
will shift to those users that do not have contracts restricting how much UCAN can raise
service rates in the future.
Approved Approved Approved Approved
2002-2003 2003-2004 2004-2005 2005-2006
State and Federal Government $30 $30 $28 $26
Local Government& Others $17.50 $21 $22.50 $24
Search& Rescue $8.50 $10.50 $11.25 $12
Volunteer Fire $8.50 $10.50 $11.25 $12
Radio Programming Fee $8 $60/hour* $60/hour $60/hour
*$25 minimum
As the UCAN system was developing and being subsidized by the State of Utah, Salt
Lake City decided not to become part of this system for the following reasons: 1) The
City had concerns regarding control of the network and priority status. 2) The UCAN
network was being built, and was not operational until 2001. Salt Lake City's current
system was failing and the City had concerns about the length of time needed for the
UCAN system to become operational. 3) The cost of the monthly service fees. Salt Lake
City was concerned that the rate structure for UCAN's service fees was inadequate to
support the long-term cost and maintenance of the system, and that ultimately, Salt Lake
City would be subsidizing other users on the UCAN system.
UCAN is a quasi-governmental agency, overseen by an Executive Committee made up of
representatives from all over the State of Utah. If Salt Lake City joined the UCAN
network, Salt Lake City would need to negotiate with UCAN's board of directors to be
granted one voting membership on this board. It would require changing UCAN's by-
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laws to grant Salt Lake City this position and this authority. Although Salt Lake City
would be one of UCAN's largest members, one vote would not be sufficient to have any
decision making authority. Without adequate board representation or management
oversight, Salt Lake City would have no control over policies that affect service rate fees;
and consequently, Salt Lake City would not be able to control its own public safety costs
under this arrangement.
Due to the aforementioned concerns, Salt Lake City joined forces with Salt Lake County
and built a radio communication system that served the needs of both agencies, and was
completed approximately one year prior to the completion of the UCAN system. This
system interfaced with the UCAN system allowing the City and County police and fire
agencies to have access and control of their public safety communication systems, while •{
being able to communicate with UCAN users. This option also allowed the City and Salt
Lake County better control over the cost of providing public safety services. During the �4
Olympic Winter Games, when coordination over multi-agency jurisdictions was critical,
this system worked well.
In March of 2003, the Salt Lake County Council voted 5 to 4 to merge the County
Sheriff's office and the fire district's radio communication system with UCAN, a
development that will dismantle Salt Lake City's radio communication system. This
action forces Salt Lake City to either join the UCAN network or build its own radio
communication network.
Salt Lake City has been reviewing and evaluating its options for the past several months.
During this time, Governor Walker announced her Walker Works Program. The 1st
project associated with this initiative is to build a State-wide, interoperable,
telecommunication system utilizing a Motorola Omni-Link system. The Omni-Link
system will provide the ability to seamlessly integrate multiple telecommunication
systems. This initiative, if successful, could mitigate the need to join the UCAN network.
Based upon preliminary meetings with State officials, the City has learned that the State
of Utah will be applying for federal grants to secure the infrastructure necessary to
integrate all telecommunication systems into one integrated network. This initiative
appears to be part of the State of Utah's response to the threat of terrorism and its plan for
"Homeland Security."
Also during this time, the President of the United States signed the Fiscal Year 2004
Homeland Security Appropriations Act which will provide critical funding needed to
ensure the safety and security of our homeland. Through the Department of Homeland
Security's (DHS) Office for Domestic Preparedness (OPD), emergency prevention,
preparedness, and response personnel will receive over $4 billion in funding for items
related to homeland security. Interoperable telecommunication systems and planning
qualify for this type of grant funding.
As part of the public safety communication network analysis, the administration did an
initial review of the City's need for an emergency response radio communication system
and the timelines associated with the grant process. It appears that the first round of
funding authorized by Congress is not sufficient to ensure the likelihood that Salt Lake
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City could be successful in acquiring a zone controller, which is the necessary
infrastructure component that serves as the foundation or backbone of the radio
communication system. However, the next round of funding may be sufficient to
encourage the City to conduct a City-wide, emergency management telecommunication
system assessment in order to apply for funding when those grant monies become
available this spring or early summer.
Analysis
Salt Lake City has evaluated three options to meet the Police Department and Fire
Department public safety infrastructure needs. The costs for each option are not 100%
clear at this time. It is clear that the City has a need to communicate with other public
safety agencies on the VCAN system, and the Omni-Link will not be in place and
operational until July 2004, at the earliest. The cost for Salt Lake City's ability to
communicate with UCAN-members is the unknown factor. Although Salt Lake City has
requested that UCAN provide us with this information, it has not been provided and
UCAN asserts that the information is not readily available. Currently, this interoperable
communication link between Salt Lake City and UCAN members is provided at no
charge on a reciprocal basis.
This arrangement was worked out prior to the Olympic Winter Games because it was
apparent how critical the need was for multi-agency, jurisdictional coordination. This
need will still be critical once the existing system is dismantled. If UCAN members and
Salt Lake City Police and Fire Department officials can not efficiently and effectively
communicate once the existing radio communication system is dismantled, law
enforcement and public safety services along the Wasatch Front will be compromised.
The three public safety radio communication options Salt Lake City has evaluated are as
follows:
1) Salt Lake City Police and Fire Departments become part of the UCAN system.
2) Salt Lake City Police and Fire Departments buy the zone controller that Salt Lake
County currently owns, but that will be dismantled as the County migrates to the
UCAN system.
3) Salt Lake City Police and Fire Departments buy a new "Smartzone" controller
which has the ability to interface with Motorola's Omni-Link system.
Option #1
Option #1 is for Salt Lake City Police and Fire Departments to join the UCAN system.
UCAN has presented two proposals to Salt Lake City. The first, dated June 2003
proposes Salt Lake City would provide 10 frequencies, 1 10-channel, IR site (City Creek
site), and lease an additional site in downtown Salt Lake City for an estimated annual cost
of approximately $11,000. Combined, Salt Lake City was to be credited with
contributions to the system that equaled $787,000, including the $650,000 Police
Department grant. At the same time, UCAN placed a value on its service of$2,394,000.
UCAN's value is based upon 950 radios x $21.00 per month (current rate for service) x
120 months. However, this proposal has currently been replaced by UCAN's second
proposal.
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The second UCAN proposal dated August 14, 2003 takes into account the $650,000
Police Department grant, but no longer credits Salt Lake City for the site lease payments
required for the downtown site or the City Creek site, or the use of Salt Lake City's
frequencies, that have been reduced to five even though Salt Lake City would still be
expected to provide those items or services.
Under this proposal, UCAN would credit Salt Lake City $650,000 against UCAN's
contribution of $2,394,000. According to UCAN's calculations, Salt Lake City's
contribution is $1,744,000 less than UCAN's and therefore, Salt Lake City could pay
UCAN $1,744,000 in a lump sum contribution, or could amortize this amount over a ten
year period, beginning with the first annual payment being $174,400 and increasing by 2
percent every year for the next ten years. Either way, Salt Lake City would be able to have
950 radios using UCAN's system for a ten year period for a preset fee. If Salt Lake City
needed any additional radios on UCAN's system, Salt Lake City would need to add them
at current monthly service rates.
UCAN 's contribution(based upon 950 radios x $21.00 x120) $2,394,000
Salt Lake City's cash contribution $ 650,000
Difference owed by Salt Lake City $1,744,000
Ten year amortization schedule: _
Year one $ 174,400
Year two $ 177,880
Year three $ 181,445
Year four $ 185,074
Year five $ 188,776
Year six $ 192,551
Year seven $ 196,402 -Year eight $ 200,330
Year nine $ 204,337
Year ten $ 208,424
Ten Year Total of Payments to UCAN for Salt Lake City $1,909,619
Salt Lake City's Cash Contribution to UCAN $ 640,000
Salt Lake City's Estimated Lease Payments Downtown Site (10 years) $ 110,000
Total Cost for Public Safety(General Fund) $2,659,619
Option #2
Option-#2 is for Salt Lake City to purchase the County's existing zone controller from
Motorola using the $640,000 Police Department grant. This option allows the Police and
Fire Departments to handle radio communications as they are currently being handled.
Although this zone controller works and is functional, it has some system limitations,
which is why UCAN is replacing this zone controller with a new"Smartzone" controller.
This option will also require the City to purchase some additional equipment to install a
second repeater site to ensure adequate coverage for the City's public safety network.
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Although this option will allow the Police and Fire Departments to operate and
communicate as they do currently, UCAN may no longer allow the City to interface with
its system free of charge. If the City chooses to upgrade and integrate its radio
communication resources in the future, this zone controller may need to be exchanged for
a Smartzone controller as the County is currently doing. In addition, this zone controller
may not meet the technical specifications required to qualify for upcoming 2004
Homeland Security grant monies for implementing an interoperable telecommunication
system.
This option has the least fiscal impact to the City. The $640,000 Police Department grant
money will purchase the zone controller but the City will still need to put an additional
repeater site at Farnsworth to ensure adequate coverage for Police and Fire. That cost is 'I
estimated to be approximately$110,000 with an additional $75,000 for a microwave link,
or an ongoing lease fee of approximately$5,000 per year.
Salt Lake City's Cash Contribution to purchase County's zone controller $ 640,000
Equipment purchase for IR site at Farnsworth Peak $ 110,000
Lease payment for Farnsworth Peak site (10 years) $ 50,000
Total Cost for Public Safety(General Fund) $ 800,000
Option #3
Option #3 is for Salt Lake City to purchase a new Smartzone Controller which has the
ability to interface directly into the Omni-Link system, and could serve as the basis for a
total, City-wide integrated radio communication system in the future. This option allows
the Police and Fire Departments to handle radio communications as they are currently
being handled with the additional benefit of the most current hardware capabilities and
interface options being implemented by the State of Utah.
This option will still require the City to purchase some additional equipment to install a
second repeater site to ensure adequate coverage for the City's public safety network.
This option provides a 2 Site, 10 channel, public safety system, like option #2, without
the system limitations. The additional site would most likely need to be installed at
Farnsworth Peak in order to ensure adequate coverage for Police and Fire and would
require an annual lease payment of approximately $5,000 or $75,000 to purchase the
microwave link.
This option costs a little more than option #2 but does not invest money in dated
technology with limited capabilities for the near future. The Smartzone controller is the
technology currently being implemented in the UCAN merger and interfaces with the
Walker Works Program. Furthermore, this technology does meet technical standards
required for interoperable telecommunication system under the 2004 Homeland Security
Grant Program.
This option addresses Police and Fire's infrastructure needs for a radio communication
system once the County dismantles the existing communication infrastructure. It does not
integrate the City's other 800 MHz systems, owned by the Airport and Public Utility's,
but could serve as a system foundation if the City chose to implement a City-wide
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emergency management system that integrates all the City's telecommunication resources
in the future.
Smartzone Controller $1,137,600
IR site at Farnsworth Peak $ 110,000
Lease payment for Farnsworth Peak site (10 years) $ 50,000
Total Cost for Public Safety(General Fund) $1,297,600
Recommendation
The City should choose option #3 and build its own radio communication infrastructure
to ensure adequate control and fiscal stability of its communication network. A City-
owned network will allow City administrators to control costs while managing the
network to ensure Salt Lake City's public safety communication needs are the network's
top priority. \t
In addition, the City should conduct a City-wide emergency management communication
system assessment to determine if the City should integrate its radio communication
resources and apply for any of the 2004 Homeland Security grant monies available for
interoperable telecommunication systems.
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