HomeMy WebLinkAboutResolutions - 2019-13 - Resoution supporting a ballot measure sponsored by RiverCom 911 entitled, “Renewal of Enhanced 911 Emergency Communication Systems and Facilities Sales and Use Tax.” - 6/18/2019City of East Wenatchee
Resolution 2019-13
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City of East Wenatchee, Washington
Resolution No. 2019-13
A Resolution of the City of East Wenatchee, Washington supporting a
ballot measure sponsored by RiverCom 911 entitled, “Renewal of
Enhanced 911 Emergency Communication Systems and Facilities
Sales and Use Tax.”
1. Alternate format.
1.1. Para leer este documento en otro formato (español, Braille,
leer en voz alta, etc.), póngase en contacto con el vendedor de la
ciudad al alternateformat@east-wenatchee.com, al (509) 884-9515
o al 713 (TTY).
1.2. To read this document in an alternate format (Spanish,
Braille, read aloud, etc.), please contact the City Clerk at
alternateformat@east-wenatchee.com, at (509) 884-9515, or at
713 (TTY).
2. Authority.
2.1. RCW 35A.13.020 and RCW 35A.13.190 authorize the City
Council to organize and regulate its internal affairs and to define
the powers, functions and duties of its officers and employees.
2.2. 42.17A.555 authorizes the City Council to Action to express
a collective decision to support or oppose a ballot proposition
3. Recitals.
3.1. Attached as Exhibit A is a RiverCom 911 Emergency
Communication Systems and Facilities Tax Information Sheet.
3.2. Attached as Exhibit B is a RiverCom 911 Emergency
Communication Systems and Facilities Talking Points.
3.3. The notice advertising the June 18, 2019 regular meeting of
the City of East Wenatchee City Council included the title and
number of the proposed ballot measure.
City of East Wenatchee
Resolution 2019-13
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3.4. Before this resolution was approved, each member of the
City Council was given approximately equal opportunity to
express his or her opinion regarding the ballot measure.
3.5. Likewise, before this resolution was approved, each member
of the public in attendance was given approximately equal
opportunity to express his or her opinion regarding the ballot
measure.
THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO
RESOLVE AS FOLLOWS:
4. The City supports the ballot measure. The City Council finds that it
is the best interest of the City to support RiverCom 911’s proposed
ballot measure. Passage of the ballot measure will benefit the
citizens of the City by providing funding for improvements and
upgrades of Enhanced 911 Emergency Communication Systems and
Facilities.
5. Ballot Measure. A copy of the ballot measure is attached as Exhibit &.
6. Severability. If a court of competent jurisdiction declares any
provision in this resolution to be contrary to law, such declaration
shall not affect the validity of the other provisions of this Resolution.
7. Effective date. This Resolution becomes effective immediately.
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 1
RiverCom 911
Emergency Communication Systems and Facilities Tax
Information Sheet
Updated: May 13, 2019
About RiverCom
RiverCom is a multi-jurisdictional designated Public Safety Answering Point (PSAP) that
provides emergency call-taking and dispatch services for law enforcement, fire districts and
departments, public and private ambulance services in Chelan and Douglas counties. Dispatch
operations are staffed twenty-four (24) hours a day, seven (7) days a week. RiverCom also
owns and operates a public safety radio communications system located at various radio site
facilities throughout Chelan and Douglas counties. RiverCom is organized as a municipal
corporation and as a separate legal entity under the laws of Washington State. The agency is
governed by the RiverCom Administrative Board.
RiverCom is one of 69 Public Safety Answering Points operating in Washington state.
RiverCom service area covers about 4,741 square miles.
RiverCom serves a population of about 120,000 fulltime residents (not including visitors).
In 2018, RiverCom responded to a total of nearly 96,917 calls, including 49,730 9-1-1
emergency calls for service.
RiverCom History
In 2004, Chelan County Douglas County, City of Wenatchee, and City of East Wenatchee, and
twenty-eight other public safety agencies regionalized emergency call-taking and dispatch
services and through an Interlocal Agreement, RiverCom was officially formed. The State E911
program provided the start-up funds for the call-taking portion of the operation. The founding
counties and cities entered into a bond agreement to fund the regionalized dispatch portion of
the operation. Where possible, equipment and hardware, radio transmission sites and licensing
were transferred to the ownership of the newly-formed RiverCom. In many cases, the remote
radio site infrastructure and equipment hardware were already obsolete or nearing the end of
their life cycles.
The RiverCom Administrative Board acknowledged and recognized an emergent need to
address the aging two-county radio system as the most likely single point of failure. The Board
authorized a comprehensive engineering study and, based on the results of the study,
subsequently implemented a graduated plan to bring radio sites and equipment up to
acceptable standards. After first exhausting available supplemental monies, RiverCom was
authorized by voters to collect the one-tenth of one percent sales and use tax revenue which
was used to further complete the project.
Exhibit A
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 2
Table 1: RiverCom’s Primary Funding Sources:
(not including radio site lease payments or account interest)
Revenue Type 2018 Actual Revenue % of Total Revenue
Agency Annual Assessment Fees 2,703,019 36.47%
E911 Phone Excise Tax 1,142,820 15.42%
State E911 Grants 253,733 3.42%
Emergency Communication Systems and Facilities Tax
(RCW 82.14.420) 3,278,389 44.23%
How is RiverCom primarily funded?
RiverCom is primary funded through a combination of Agency Annual Assessment Fees, E911
a portion of Phone Excise Tax monies, State E911 Grant monies and, to a lesser degree, radio
site lease payments and earned interest on account holdings.
Agency Annual Assessment Fees
The public safety agencies that contract with RiverCom for 9-1-1 services are
responsible for paying for all general operating expenses not otherwise covered by the
E911 Phone Tax, State E911 grants, account interest, or other encumbered resources.
The monies collected through Agency fees may not be used for any capital costs.
E911 Phone Excise Tax
E911 Phone Excise Tax is generated through payment of wireline, wireless, VOIP, and
pre-paid phone services. The $0.95 monthly tax is collected as follows:
$ 0.25 (25-cents) State level
$ 0.70 (70-cents) County level
This tax is paid by people in Chelan and Douglas counties through their monthly phone
bill or collected through a phone purchase. The tax is collected by the Department of
Revenue and, after holding back a 1% administrative fee, DOR sends 25-cents to the
State E911 general fund and 70-cents to the county in which it was collected. Each
respective county then deposits such monies into RiverCom’s account.
E911 Phone Excise Tax revenue can only be used for equipment and tasks directly
related to receiving a 911 call. This revenue may not be used for any hardware,
software, or systems related to the dispatch of information obtained from a 911 caller.
State E911 Grants
These grant monies come from a grant application and reimbursement process
administrated by the Emergency Management division of the Washington State Military
Department. A portion of grant monies comes from the E911 Phone Excise Tax allotted
to the State. The use of Grant monies is restricted. Monies can only be used for eligible
expenses as determined by the State and only for expenses that support the Enhanced
911 (E911) emergency communications network, database, and on-premise equipment
that is accessed by dialing 911 and that enables police, fire, medical, or other
emergency situations to a designated Public Safety Answering Point.
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 3
State E911 funding can be problematic because the revenue is not always stable and is
not always a guaranteed source of revenue. Historically, this source of revenue can be
impacted by State budget shortfalls, E911 fund sweeps by legislators for non-911
purposes, increased costs for state-wide 911 networks, and restricted expenditure
authority by the State’s Office of Financial Management in any given year. Over the past
few years, the State E911 program has significantly reduced the level of funding it once
provided for communications equipment, systems, and other operational costs which
has resulted in a greater level of fiscal responsibility placed at the local level.
Radio Site Lease Payments
RiverCom receives some revenue as compensation for space leased at its radio sites.
Lease revenues are received into an Equipment Replacement Account and used for
replacing equipment previously purchased with Agency Assessment Fees.
Emergency Communications Systems and Facilities Tax has paid for:
Capital improvement projects
Critical 911 and radio system equipment
Radio site development, infrastructure, equipment, and ongoing maintenance
Radio console equipment
IT infrastructure, equipment, and ongoing maintenance
E911 phone systems, equipment, auxiliary equipment, upgrades, and maintenance
Radio engineering services and consulting
Legal, contract development, and other related professional services (related to the radio
system)
Liability Insurance for remote radio sites and radio equipment
Project management and oversight, technical services and support
Radio system and equipment repairs and preventive maintenance for user agencies
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 4
What is the Tax?
RCW 82.14.420 provides the basis for a sales and use tax for emergency communication
systems and facilities. A county legislative authority may submit a proposition to county voters
and, if approved by a majority of persons voting, affix a sales and use tax at a rate equal to one-
tenth of one percent of sales or use tax.
In 2009, voters in both Chelan and Douglas counties approved RiverCom to receive the one-
tenth of one percent sales and use tax from 2010 through 2019. Collection of this revenue is
scheduled to sunset December 31, 2019.
This is not a new tax or tax increase.
RiverCom is asking for re-newal of the one-tenth of one percent sales and use tax allowed
under RCW 82.14.420.
The tax rate equals: $ 0.01 for every $ 10.00 selling price/value
$ 0.10 for every $ 100.00 selling price/value
$ 1.00 for every $1,000.00 selling price/value
The tax is collected from all persons, residents and visitors, who pay sales and use tax in
Chelan and Douglas counties. This method of tax collection allows for the cost to fund
emergency communications to be shared by all who use such services in RiverCom’s service
area.
What can these monies be used for?
Following RCW 82.14.420, monies received from this tax will be used solely for the purpose of
providing funds for costs associated with financing, design, acquisition, construction, equipping,
operating, maintaining, remodeling, repairing, reequipping, and improvement of emergency
communications systems and facilities.
Why reauthorization?
RiverCom utilizes this tax revenue to supplement funding for critical emergency communications
in Chelan and Douglas counties and to bridge restrictions placed on other revenue sources.
The revenue received through the one-tenth of one percent sales and use tax provides a source
of permanent, stable, and sustainable revenue for emergency communications systems and
facilities in Chelan and Douglas counties.
When RiverCom was first organized,
no funding mechanism was established
to pay for future radio systems, technologies, or equipment.
The one-tenth of one percent sales and use tax is the only permanent
funding solution available to RiverCom to pay for many of the
expenses related to its communication systems and facilities.
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 5
Projected Revenue?
Based on past trends, RiverCom estimates that it would receive about $2.5 – 4 million dollars
per year (for the next 5 years) if this tax is reauthorized.
The amount collected and received by RiverCom would fluctuate relative to the amount of sales
and use tax paid by consumers. If at any time consumer sales decreased, RiverCom would
realize a lesser tax amount.
How is this tax different from taxes collected under the Emergency
Communications Act?
The Emergency Communications Act applies only to law enforcement organizations and does
not include emergency communications infrastructure. RiverCom 911 is not a law enforcement
agency and is not eligible to collect such tax.
What is different this time?
This proposition does not have an ending or sunset clause.
Previous one-tenth of one percent tax revenue was primarily used for a Capital
Improvement Project, specifically a regional public safety 911 radio system upgrade and
expansion project. Moving forward, RiverCom would use the one-tenth of one percent
tax revenue as fully allowed under RCW 82.14.420.
Since 2009, several other counties in the State of Washington have successfully
received voter approval for the same tax, and without a sunset clause, including the
counties of Clallam, Cowlitz, Grant, Grays Harbor, Jefferson, Kitsap, Lincoln, Mason,
Pacific, Skagit, Thurston, and Whitman.
Alternative Funding Sources?
RiverCom could possibly secure a commercial loan or government bond to pay for needed 911
communication systems and facilities, although the cost to pay the principle and interest would
have to be supported and realized by RiverCom’s founding principle organizations: Chelan
County, Douglas County, City of Wenatchee, and City of East Wenatchee. Securing a loan or
bond as a source of long-term funding for 911 communications systems is not fiscally
sustainable. Radio and 911 communications technology, systems, and equipment are likely to
become obsolete, outdated, or reach the end of a life cycle prior to a loan or bond being paid
off.
The one-tenth of one percent tax provides RiverCom with a
consistent, stable source of revenue as an alternative to having to
continually rely on commercial loans and/or government bonds to
fund critical infrastructure, systems, and components to
maintain the 911 communications system.
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 6
How have previous monies been utilized?
The one-tenth of one percent tax revenue has provided RiverCom the means to upgrade and
expand the regional public safety 911 radio system throughout Chelan and Douglas counties.
The communication systems upgrades and expansion have replaced outdated systems,
technology, and equipment. When the one-tenth of one percent tax revenue was first approved
by voters in 2009, a large portion of RiverCom’s radio-control hardware was already out-dated,
and after running nearly non-stop for twelve years, the equipment was in imminent danger of
failing. Much of the radio hardware at remote radio sites that RiverCom inherited upon
consolidation had been purchased from 1979 to 1984, the equipment was more than 25 years
old and compromised public safety communications with law enforcement, fire services, and
emergency medical services and placed the failure of such communications at high risk,
creating serious safety issues for first responders in the field as well as for 911 callers in our
community. Some of the older “radio sites” were just sheds or shipping containers that were too
small and often inadequate for current requirements.
For the past several years, RiverCom has been in the process of upgrading and expanding the
radio system that first responders use to communicate. Existing and new radio sites have been
installed, upgraded, built-out, and “hardened” to public safety grade specifications. Hardened
sites, for example, include back-up power sources, and grounding to reduce potential damage
from lightning strikes and wildfire protections.
The one-tenth of one percent tax revenue provides an allowance
to fund facilities, equipment, and services
that RiverCom needs to provide essential and
critical emergency communications for first responders
and for people in Chelan and Douglas counties.
The one-tenth of one percent tax funding has also financially benefited nearly all public safety
agencies in the two-county system including law enforcement, fire agencies, and emergency
medical services. Starting in 2013, these agencies have received a total of ten percent of the
total revenue for the previous year to fund projects and equipment purchases related to
RiverCom’s 911 radio system.
Additionally, RiverCom has used surplus revenue to pay-down an existing bond for the
regionalization that created RiverCom. The bond is scheduled to be paid off in 2022.
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 7
How will the monies be used in the future?
Future revenue will be utilized according to a Funding Agreement approved by the RiverCom
Administrative Board. The Board is made-up of representatives from Chelan County, Douglas
County, City of Wenatchee, and City of East Wenatchee as well as other law enforcement, fire,
and EMS representatives. The Board will maintain the right to set an Annual Budget for the tax
revenue. All tax revenue will be maintained in a designated account.
The tax revenue will be used in accordance with RCW 82.14.420.
Ongoing and scheduled replacement, repair, maintenance, and service of emergency
communications systems, technology, equipment, and facilities
Installation and implementation of mandated technologies and new technologies
Capital Improvement Projects
Provide a long-term stable critical infrastructure communication sites and facilities
Continue to build-out and develop new and existing systems and technologies to
improve emergency communications
What will be the impact to RiverCom if the Communications Tax is not
renewed?
If this proposition is rejected by voters, RiverCom anticipates the following consequences and
outcomes:
RiverCom will lose about $3 million + per year of its overall annual budget.
With the loss of funding, RiverCom would have to regularly re-submit for the
authorization of the tax at a cost of $40,000 to $115,000 per ballot measure.
A greater and immediate financial burden will inevitably be placed on county and city law
enforcement agencies, fire service agencies, and emergency medical agencies
throughout Chelan and Douglas counties.
There would be no upgrades or improvements to the 9-11 radio system unless public
safety agencies agreed to pay for it.
Local law enforcement, fire agencies, and emergency medical agencies would no longer
receive a portion of tax monies to help pay for communication system radio equipment,
mobile pagers, or radio preventive maintenance at their agencies.
The services RiverCom provides are not self-supporting. RiverCom would have difficulty
funding extensive and new technological upgrades to its systems and equipment. In
some cases, it would not be able to meet technological expectations of end users.
The potential loss of two fulltime specialized positions dedicated to radio system
implementation, management, technical support and service who respond on an
everyday and emergency basis to ensure RiverCom’s radio system is operating on an
optimal basis.
RiverCom 911: Emergency Communications and Facilities Tax – Information Sheet – Page 8
When will the proposition be placed for election and what are the voting
requirements?
RiverCom has requested to place the proposition on the ballot for the Primary Election
on August 6, 2019. The proposition will be simultaneously run in both Chelan and
Douglas counties.
In order to pass, the ballot measure will need to be approved by a majority of persons
voting.
The measure will fail if it is not passed in both Chelan and Douglas counties.
The 2009 “RiverCom 911 Sales Tax Measure” provided the following election results (as
reported in the Wenatchee World, August 19, 2009):
Chelan County Yes 8,330 65.40%
No 4,401 34.60%
Douglas County Yes 3,742 62.00%
No 2,292 38.00%
RiverCom 911 - Emergency Communication Systems and Facilities Tax
A proposition to renew the tax will be on the August 6, 2019 ballot in both Chelan and Douglas counties.
TALKING POINTS
RENEWAL
• This is not a new tax or tax increase.
• The proposition is to renew existing funding at current levels.
• The tax is collected from all persons, residents and visitors, who pay sales and use tax in Chelan and Douglas
counties. This method of tax collection allows for the cost to fund emergency communications to be shared by all
who pay sales and use tax in RiverCom’s service area.
• The one-tenth of one percent sales tax equals $0.10 for every $100.00 selling price/value.
• In 2018, this tax revenue accounted for 44% of RiverCom’s total annual revenue.
• The purpose of the one-tenth of one percent sales and use tax is to provide a long-term stable funding solution for
essential emergency communications.
• Nearly all large and small public safety agencies in Chelan and Douglas counties also financially benefit from this
tax.
• Since the start of the tax collection in 2010, RiverCom has received $23,027,896 (as of 4/30/19)
• By the end of 2019, RiverCom projects that it will have expended about $17,000,000, primarily on capital
improvement projects to build-out and upgrade a regional public safety 911 radio system; nearly $900,000 has
been used for agency-specific communications projects and purchases through a Shared Funding Assistance
Program.
• Nearly all remaining monies are ear-marked and forecasted-out for current and short-term projects. About
$960,000 of that money is set-aside for the Shared Funding Assistance Program. All remaining monies are
committed and forecasted-out for current and future radio infrastructure projects and emergency communication
systems, equipment and services.
TECHNOLOGY
• When RiverCom was first organized, no funding mechanism was established to pay for most future radio
systems, technologies, or equipment.
Funding will go toward:
• Ongoing and scheduled replacement, repair, maintenance, and service of emergency communications systems,
technology, equipment, and facilities.
• Installation and implementation of mandated technology and new technologies.
• Build-out of new and existing systems and technologies to improve emergency communications.
• Funding new and evolving technology to meet expectations of the State E911 program, user agencies, and end
users of 911 systems.
CRITICAL INFRASTRUCTURE FACILITY AND OPERATIONS
• RiverCom provides essential emergency communications. It is a critical infrastructure facility and is the last in
operational standing in times of emergency.
• Must be able to respond to the growth of the community and keep pace with the needs of our citizens.
• RiverCom needs to plan for a future prime facility site to establish, secure, and stabilize a long-term solution to its
facility needs, to accommodate adequate and responsible staffing levels, to accommodate emergency
communications systems and equipment, to secure back-up communications, and to continue to build-out critical
radio communications infrastructure.
Exhibit B
Ballot Title for RiverCom 911
Renewal of Enhanced 911
Emergency Communication Systems and Facilities
Sales and Use Tax
The Douglas County Board of Commissioners adopted Resolution CE No. 19-27 concerning a
proposition to continue funding for regional E911 emergency communication systems and
facilities. This proposition renews the expiring one-tenth of one percent sales and use tax (10
cents per $100.00) to maintain funding for the costs associated with financing, design,
acquisition, construction, equipping, operation, maintaining, remodeling, repairing,
reequipping, and improvement of regional emergency communication systems and facilities,
consistent with RCW 82.14.420, and conditioned upon imposition of the same tax in Chelan
County. Should this proposition be approved?
YES ___ NO ____
Exhibit C