Minnesota Public Safety Communications Funding Study

1. Minnesota Public Safety Communications Funding Study Prepared for: Interoperability Conference St. Cloud, MN April 15, 2014

2. Statute Requirement 2013 Legislation states: “The Statewide Radio Board shall study long-term funding strategies for statewide public safety communications including public and private funding options such as bonds, grants, public private partnerships, leverage of private capital funding sources such as vendor financing or higher degree of leveraging commercial assets, methods for covering the operational costs for sustainability, user fees, and local funding. The study must include a substantive assessment and evaluation of the funding strategies for and authorized uses of future ARMER system and 911 system needs and upgrades and capital and operating costs. The board shall report…Jan 15th, 2014.”

3. Process • Funding Study Work Group Formed • RFP developed by ECN Staff and Published • Federal Engineering awarded the contract to complete the Funding Study • November 2013 – Kickoff Meeting • First Draft of Study received by Work Group in January of 2014 • Final Report delivered to SRB Feb 11, 2014

4. Committee Members • Bill Mund Chair  Central Region—Fire—Greater MN • Cari Gerlicher, Chair Finance, State Agency, Greater MN • Commissioner Jeff Jelinski, Central Region, Greater MN • Commissioner Ron Antony, SWRRB, Greater MN • Dave Eischens, Motorola, not a voting member • Dewey Johnson, NERRB, Greater MN • Jill Rohret, MESB, Metro • Pete Eggimann, MESB (911), Metro • Judy Siggerud, Central, Greater MN • Mike Fink, Motorola—non voting member • Mukhtar Thakur, MNDOT state agency • Rick Juth, State agency, State Patrol • Scott Camps, NERRB, Greater MN • Rod Olson, MESB, City of Minneapolis, Metro • Tim Lee, MNDOT, • Tim Mohr, SCRRB, Greater MN • Tom Hanson, NWRRB, Greater MN • Troy Langlie, Central, Greater MN • ECN Staff

5. Basic Areas to Study • Current and long-term maintenance costs for the ARMER system—both state and local costs and funding strategies for each • Current and long-term funding for completing the NG911 system—both state and local costs and funding strategies for each • Assessment of the current 911 revenue stream as a resource for existing public safety projects and obligations

6. Basic Areas to Study • Identify costs that are not supported by the 911 fee • Outline funding obligations necessary to retire the 911 Revenue Bonds that funded the construction of the ARMER backbone • Outline potential long term funding strategies and alternatives • Assessment of funding alternatives and recommendations

7. Highlights of the Report • NG911, ARMER and FirstNet are the comprehensive Public Safety Communications Systems utilized in Minnesota • Public Safety agencies and users express true satisfaction with the ARMER and NG911 systems and these systems have demonstrated their reliability and functionality during large scale events and exercises

8. Highlights of the Report • The 911 fee is the only revenue source for the costs of building and maintaining the ARMER backbone, the 911 backbone, and the NG911 backbone • The 911 fee is the funding source for aid to counties for the PSAPs • The 911 fee is the funding source for the ARMER bonds to build the backbone

9. Highlights of the Report • Local governments that connect to the ARMER backbone system require local funding to build any enhancements they desire and maintenance to their equipment or enhancements • These costs are significant especially for the larger counties with major cities

10. Highlights of the Report • State agencies such as Departments of Corrections, Health, DNR, State Patrol and MNDOT must maintain their own enhancements out of their own operating budgets • These costs are significant especially for the Dept. of Corrections who has their own sub-system

11. Highlights of the Report • Significant Challenge to keeping the entire system—backbone and local enhancements upgraded which is important to maintain the effectiveness of the system • The decisions to upgrade must be well coordinated and planned with all local and state agencies • The SECB plays important role in this communication and decision making process

12. Highlights of the Report • NG911 project is not yet completed • This project will require continued funding through next 3-5 years • Decisions made regarding the 911 fee must consider the entire public safety communications portfolio as they are integrated communications systems • FirstNet costs are not yet known

13. Highlights of the Report • While the 911 fee funding mechanism is still strong the growth of subscribers is stagnant. • The fee can be raised to 95 cents and will need to over the next three years to just pay our current commitments and complete the NG911 project • Existing commitments leave no room for new expenses or large grant programs to assist local governments and state agencies to offset upgrade costs

14. Highlights of the Report • Examination of other state radio network funding does not yield any new ideas that Minnesota has not explored. • No other state funds radio networks with 911 fee • Partnership currently used in Minnesota is often envied

15. SECB Next Steps • SECB coordination with local government and state agency is paramount for any upgrade or substantial improvement • Appears to be a breakdown in communication from SECB members to the county or city administrators • For SECB to be affective the decisions voted upon must be supported

16. Thank You! Questions??