Presentation Transcript

1. Agenda Item 3: BayWEBBOOM Negotiations Report

   Emily Harrison BayRICS Director September 29, 2011
2. Recommendations Defer final action on the BOOM agreement until JPA retains legal counsel to review agreement Approve proposed negotiation positions on backhaul, roaming, billing and invoicingand system expansion Require TAC approval of system design before BOOM agreement becomes effective Approve policy position that FCC action on 700MHZ spectrum or lease that would jeopardize BayWEB be considered a force majeure event Confirm BayRICS fiduciary responsibilities to JPA member jurisdictions
3. Motorola Option 2 Summary No Minimum User Commitment Motorola pays all site remediation = $23.58M No fixed user fee after year 1 - fee driven from the commercial competitive market No roaming within the Polygon JPA is responsible for negotiating and entering into roaming agreements if necessary for roaming outside the polygon Motorola will work with the JPA and Verizon on the technical details of outside polygon roaming Enhanced public safety features made available for additional fees
4. August 22, 2011 BayRICS Meeting JPA Board Conditions on Motorola Option 2: 1) A draft BOOM agreement could be finalized by the end of September 2011 and later executed within the tenants of the JPA agreement; 2) Although the JPA does not have the authority to commit real estate, the JPA will make best efforts in assisting Motorola with negotiation of access agreements with the partner agencies; 3) Connection costs will be part of remediation; 4) If backhaul costs are not free, the issue of backhaul costs will return to the board for consideration;. 5) Provided the JPA gets a PSST waiver, the JPA will make best efforts to make spectrum available;
5. Agreement Points Public access system would be addressed in a separate BOOM Individual site agreements between Motorola and site owners FCC action which impacted spectrum lease would be “force majeure” Annual rate change review process by JPA TAC approval required for system acceptance Throughout the document, replaced ability for Motorola to take unilateral action to cooperative processes
6. Issues Two issues very difficult to resolve: Responsibility for invoicing and billing Roaming
7. Invoicing and Billing BOOM Team’s Original Position on Invoicing and Billing: “The proposal that the Authority will assume the role for billing and invoicing users of the system is not compatible with the Authority’s decision to adopt a business model in which Motorola has freedom to price options according to market.  It also is impractical from a customer service standpoint since all questions and concerns about service will have to be directed to Motorola.  Finally, the JPA has no infrastructure to assume such a responsibility and never intended to do so. ”
8. Roaming BOOM Teams Original Position on Roaming: Going into the negotiations, the BOOM Team understood “no roaming within the polygon” to mean that the system would be robust enough to not require roaming, and proposed confirming this in the BOOM
9. Compromise Through negotiations, the BOOM Negotiations Team believed a compromise had been reached on these two key issues, which involved give and take on both issues.
10. Compromise Motorola would assume responsibility for invoicing and billing; Motorola would investigate incorporating fees as determined appropriate by the JPA in its billing. Motorola and the Authority would initiate an evaluation period to determine whether system coverage would be robust enough to eliminate the need for roaming The parties would jointly explore other measures to improve coverage--additional sites, in-building boosters, improvements to user devices--before adopting roaming Motorola would develop a roaming agreement with Verizon and include roaming charges in user bills System users would be responsible for all roaming charges outside the polygon. Motorola would track data on system deficiencies, including the need for roaming inside the polygon.
11. Motorola’sPosition Motorola representatives subsequently indicated that their management would not accept the agreement that had been reached: “There does remain the issue of invoicing and billing. Having reviewed the invoicing and billing requirements you proposed with our management as we committed we would do, we are unable to accept the JPA's proposal to bill user entities directly for both user fees and any potential roaming . . .”
12. Motorola’s Position “Motorola is not able or willing to provide Verizon billing for any roaming services that may be required by end users at any time during the term of the agreement.” Dropped calls and other performance issues would be tracked but remediation would not be guaranteed. No disagreement that roaming outside the polygon would be a user expense; BOOM Team asked Motorola to work with Verizon to enable that roaming and include on the billing.
13. Motorola’sConcerns Motorola Concerns: BOOM Team “discounts or fails to mention the significant concessions and headway Motorola has made with the negotiation team in the BOOM agreement negotiations” “Despite the significant financial exposure and risk caused by the JPA’s delay, Motorola has continued to invest in this program and to move forward to adhere to the NTIA timeline.” “JPA Boom Negotiation Team is now reintroducing issues that have been settled and closed during the negotiation process” Roaming and backhaul were “very specifically delineated as responsibilities of the JPA”
14. Recommendations Defer final action on the BOOM agreement until JPA retains legal counsel to review agreement Approve proposed negotiation positions on backhaul, roaming, billing and invoicing and system expansion Require TAC approval of system design before BOOM agreement becomes effective Approve policy position that FCC action on 700MHZ spectrum or lease that would jeopardize BayWEB be considered a force majeure event Confirm BayRICS fiduciary responsibilities to JPA member jurisdictions