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INFORMATION UPDATE
I. 911 Phone Surcharge Increase
INFORMATION UPDATE
Attachment 1 – Pitkin 911 Surcharge Application
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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF THE ASPEN-PITKIN COUNTY
EMERGENCY TELEPHONE SERVICE AUTHORITY BOARD FOR AUTHORITY TO
INCREASE THE EMERGENCY TELEPHONE CHARGE
Applicant states:
Please consider this Application with attachments as application by the Aspen-Pitkin County
Emergency Telephone Service Authority Board ("Authority Board") to increase the emergency
telephone charge to $2.00 per month pursuant to C.R.S. §29-11 -102(2)(b). The Authority Board
is established by the Intergovernmental Agreement Concerning the Implementation of an
"Enhanced 9-1-1 Emergency Telephone Service” and is charged with maintaining the 9-1-1
system throughout Pitkin County and portions of Eagle and Gunnison Counties. The Authority
Board and the local governing body have determined that an increase in the emergency telephone
charge is necessary to provide adequate emergency telephone service to the residents of Pitkin
County and those portions of Eagle and Gunnison Counties and directed the application for an
increase be made to the Public Utilities Commission (Exhibit 1: E911 Board Minutes 2018July)
IDENTIFYING INFORMATION
The applicant (Authority Board) is an emergency telephone service authority formed pursuant to
an Intergovernmental Agreement (IGA) executed in February 1990 (Exhibit 2: Resolution and
Intergovernmental Agreement Concerning the Implementation of an "Enhanced 9-1-1
Emergency Telephone Service" creating the Authority Board and Rate of Charge, 1990 ), and
amended in August 1994, May 2009 and May 2014, by and between the following parties: Pitkin
County, City of Aspen, Town of Snowmass Village, and Town of Basalt, and the Special
Districts of Aspen Fire Protection District, Basalt and Rural Fire Protection District, Aspen
Ambulance District, Carbondale and Rural Fire Protection District, and Snowmass-Wildcat Fire
Protection District, each being a political subdivision and a governmental entity providing
services within Pitkin County, and identified areas of Eagle and Gunnison Counties, and is
responsible for administering the operation of the emergency telephone service program serving
the exchanges in those areas. The current amended IGA is included in this application (Exhibit
3).
OBJECTIVE
The objective of this request is to increase surcharge funding to enable a sustainable fund
balance for the next 10 years. The intent of the Authority Board is to fund dispatch operation at
an increased level and to support future capital needs to match the significant increase in service
levels and upcoming technology advancements required to transition to NG9-1-1.
Attachment 1 – Pitkin 911 Surcharge Application
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SUPPORTING INFORMATION
1. History: The Authority Board was created in 1990 and joined by an intergovernmental
agreement by all the public safety agencies (Pitkin County, City of Aspen, Towns of Snowmass
Village and Basalt, Fire Protection Districts of Aspen, Basalt, Snowmass Village and
Carbondale, and Aspen Ambulance District) that remain a part of the Authority Board. The
original surcharge of $0.50 was increased to $0.70 in 1994 (Exhibit 4: Resolution Establishing
the Rate of Charge for Emergency Telephone Service beginning in Calendar Year 1994) due to
increased costs associated with requisite upgrades in equipment and staffing, ongoing
maintenance, and Qwest imposed tariffs. In 2009, the Authority Board was approved for a
surcharge increase to $1.25 to be effective in 2010 (Exhibit 5: Resolution Establishing the Rate
of Charge for Emergency Telephone Service beginning in Calendar Year 2010). At that time the
Authority Board was predicting a decline in landline revenues and an increase in expenses,
including equipment upgrades, that provided the justification for the requested increase.
Over recent years this revenue has proven to continue to be volatile as personal use of phone
services has moved away from landlines to either cellular and VOIP services. The Authority
Board’s revenue at the current surcharge has varied from a high of $561,318 in 2011 to a low of
$508,181.39 in 2017 (Exhibit 6: E911 Revenues). The Authority Board is now collecting
approximately $500,000 in surcharge fees per year, all of which is annually contributed for
dispatching costs along with additional funds from the Authority Board’s fund balance.
2. Geographic Area Characteristics: According to the 2000 Census, Pitkin County's total
population was 14,872, with approximately forty-two percent (42%) of the population residing in
the incorporated municipalities and the other fifty-eight percent (58%) of the population residing
in unincorporated Pitkin County. In the 2010 Census the population grew to 17,148 (+15%), and
then in 2014 it was at 17,647 (+3%). More than 91 percent of Pitkin County is federal public
land and managed by the US Forest Service or the Bureau of Land Management.
The Authority Board serves all of Pitkin County and parts of Eagle and Gunnison Counties
(Exhibit 7: PSAP Boundary Map). The area includes two State Highways, 82 and 133 and
covers approximately 1,200 square miles. The PSAP boundary contains the City of Aspen, the
towns of Snowmass Village and Basalt, the communities of Woody Creek, Snowmass, Meredith,
and Redstone in Pitkin County; El Jebel in Eagle County and the Town of Marble in Gunnison
County.
Pitkin County is home to four ski areas: Aspen, Snowmass, Highlands and Buttermilk Mountain.
The physical attributes of Pitkin County make it a favorite spot for such outdoor activities as
skiing, hiking, summiting 14ers, fishing, boating, camping, rock climbing, rafting, and road and
mountain biking, to name a few. However, these same attributes present Pitkin County with
several unique challenges associated with the provision and coordination of emergency services.
The Summer of 2017 saw seven deaths in the wilderness areas we serve, visitors come
unprepared and ignorant to the challenges of backcountry recreation. These challenges have
necessitated the need for Pitkin County to maintain an upgraded and enhanced emergency
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telephone service, satellite phone and GPS device enhanced communications and better location
technologies. The upgrades, coupled with increasing costs, have created complex technology
solutions that require advanced support. The Authority Board has not been able to provide
funding requisite to support the technology improvements and services at the current surcharge
level necessitating the need for this proposed increase.
3. PSAP Agencies Served: The Pitkin County Regional Emergency Dispatch Center
("Dispatch") is the public safety answering point (PSAP) for all emergencies and provides
communication services to all emergency responders serving the Authority Board. Dispatch
answers 9-1-1 calls for and provides assistance to the Pitkin County Sheriff's Office, Aspen
Police Department, Snowmass Village Police Department, Basalt Police Department, four local
fire departments and districts, one ambulance district, mountain rescue and several miscellaneous
service agencies (County Road & Bridge, Airport, Coroner, Open Space and Trails; City of
Aspen Water, Streets and Parking, etc.) and the U.S. Forest Service. In 2009, the year of our last
increase, PCREDC answered 5,656 calls to 9-l-l, in 2017 we answered 11,144 (+97%). Also,
incidents dispatched went from 50,392 in 2010 (earliest full year data) to 71,448 in 2017
(+42%).
4. Population Served Characteristics: The communities of El Jebel (Eagle), Carbondale
and Glenwood Springs (Garfield) are situated on and around HWY 82 and serve as bedroom
communities for people who work in Aspen/Snowmass. In 2014 the number of jobs in Pitkin was
24,128 while the working-age population of the county was 15,000. The 9,000 extra jobs are
filled mostly by people who live in adjacent counties. The population of Pitkin county can
expand based on tourism and employee commuters into our county daily. The population of the
resort portion (Aspen and Snowmass Village) of our county fluctuates from about 9,000 in the
Fall and Spring to over 25,000 in the Winter and Summer. This is evidenced by the fact that The
Aspen Pitkin County Airport, located just outside the City of Aspen in Pitkin County, is
Colorado's third busiest airport after DIA and Co. Springs. Between the bedroom communities
and the tourists, there is a potential that over 24,000 people on any given Summer or Winter day
could use our emergency services or call 9-1-1 who do not pay into our budget. This gap was
also demonstrated on July 4th this Summer, when we sent an IPAWS message to just the Aspen
and Snowmass Village area that hit 29,795 devices.
5. Cost of Living Characteristics: A factor that cannot be ignored when talking about our
Valley and surrounding communities is the cost of living (COLA). A study released this month
(Exhibit 8) on income required to ‘survive’ in each County has Pitkin as the most expensive
County to live in the State, stating: In Colorado, the amount needed to be economically self-
sufficient also varies considerably by geographic location. For instance, the amount needed to
make ends meet for one adult and one preschooler varies from $13.97 per hour ($29,499
annually) in Baca County to $33.75 per hour ($71,274 annually) in Pitkin County, or from 179%
of the federal poverty guidelines to 433% of the federal poverty guidelines for a family of two.
Only our highest paid and longest tenured Supervisor comes close to this standard at
$33.05/hour. Also, the state COLA 2017 report’s comparison of school districts lists our three
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districts in the top 5 for cost of living in the state (Aspen (1), Roaring Fork which includes
Carbondale and Glenwood Springs (3) and Eagle which includes the Basalt schools (5)). Four of
the top ten highest cost of living cities with over 5,000 residents (Aspen (2), Carbondale (4),
Glenwood Springs (7), and Rifle (9)) are within our dispatcher’s living area. This has an adverse
affect on recruitment and retention as housing costs are the most difficult challenge to overcome
for new, as well as tenured, employees. We expect to have to raise wages significantly over the
next 10 years to attract and retain our workforce. These factors also have an inflative
consequence on our building lease, contracted labor, technology and building maintenance and
general operating expenses as everything simply costs more here.
6. Technology Changes: Along with our phone and dispatch volume increases, all dispatch
services are facing significant changes to 9-1-1 systems in the near future. The ‘Colorado State
of 9-1-1 Report’ (Exhibit 9) submitted to the Colorado State Legislature this summer offers
insight into our transition:
Next Generation 9-1-1 (NG9-1-1) is an Internet Protocol (IP) based delivery of 9-1-1 calls and
other information to a PSAP. Upgrading the existing (or, “legacy”) 9-1-1 system to NG9-1-1 has
many benefits, including the potential to make the system more resilient and flexible, allowing
for dynamically rerouting 9-1-1 calls when necessary, and potentially opening up the network to
accept other types of data, such as medical data, automatic crash notification data, pictures, etc. A
tariff proceeding is currently underway at the Commission for the provision of an Emergency
Services IP Network (ESInet) for the delivery of 9-1-1 calls to Public Safety Answering Points
(PSAPs) . If approved, the deployment of an ESInet would represent the first step toward
implementation of NG9-1-1. A great deal of additional planning and action needs to take place to
continue the transition to NG9-1-1 even after the implementation of an ESInet, but it is a
necessary first step...If a settlement is reached by the parties in the CenturyLink tariff proceeding,
and that settlement is approved by the Commission, implementation of the ESInet could begin as
early as the first half of 2019. An estimated time frame of 18-24 months for every PSAP to begin
receiving 9-1-1 calls through the ESInet is not unreasonable and is comparable to the timeframe
for PSAP transition experienced by other states that have undertaken NG9-1-1 migration. This
would have every PSAP connected to the ESInet by the second half of 2020 to the first half of
2021.
Pitkin Dispatch is looking to be in a position to address these issues and insure we have the
funding in place to support the upcoming technology advancements. There will clearly be costs
associated with this transition - implementing a statewide ESInet itself, seen as only the first
step, has been estimated by the tariff to cost $1M initially and $5.4M annually. This is an
increase over current network costs, estimated at about $2.8M each year. This increase is in line
with the initial CenturyLink proposed fee schedule which raises PSAP fees 40-50% annually.
There may be some grant money coming to the state (up to $3.5M) but all additional costs would
need to be funded by individual PSAPs moving forward.
Further, the ‘National Next Generation 911 Cost Estimate Report’ (Exhibit 10), which was
released to Congress this October outlines the many additional facets and steps that make up a
transition to NG911 technology. While it’s numbers are based on national models, the report
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provides a progression for centers to move to NG9-1-1, all with a cost. The cost report broke
down the move to NextGen into six domains: Business; Data; Infrastructure; Applications and
systems; Operations and Performance, and Security. All domains require multiple upgrades so
we expect to see rising costs in just about every aspect of our center - GIS integration, cyber
security, data storage, training, etc. (Exhibit 11: Three Critical Steps to Next-Gen 911 Security
Article)
7. Dispatch Center Support and Costs: The total annual costs of Dispatch for the last five
years is approximately $2M with 2018 at approximately 2.2M. Currently, the Authority Board
funds an average 33% of Dispatch operational costs and no capital costs with the balance paid
for by all the participants in the Intergovernmental Agreement (Exhibit 12: 2017 E-911 Budget
vs Actual and Exhibit 13: 2018 E-911 Budget ytd Actuals). These costs include salaries as well
as technological utilities and maintenance, annual telephone service costs, replacement and
upgrading of the emergency system equipment, and staff training. (Exhibit 14: 2017 Dispatch
Budget vs Actual and Exhibit 15: 2018 Dispatch Budget vs Actual).
8. Surcharge Request: The Authority Board has determined that the current surcharge of
$1.25 is not sustainable to support the ongoing the operational needs of the Pitkin Dispatch
Center as illustrated in the Center’s current 2019 E9-1-1 Budget and 5-year plan (Exhibit 16;
Tab E-9-1-1). This budget scenario has the Authority contribution increasing from approximately
33% to 40% of Dispatch’s operational costs with no contribution to capital.
The Authority, if granted an increase to $2.00, would like to raise E9-1-1 contributions to the
"Dispatch Operating Budget," as allowed by statute to begin covering capital costs, and mitigate
the expenses that will increase as we transition to NG9-1-1. These steps will lessen the financial
burden on each public safety support agency. Due to the inclusion of capital, the Authority
would like to keep ~600K as a minimum in the E9-1-1 fund (Exhibit 1: E911 Board Minutes
2018July) to cover one year of payments to dispatch, in case of an emergency (2.5 years ago our
server room flooded and we had to stand up a new center unexpectedly early), and to help cover
our largest capital expenses as they arise (in 2025 we will need radio console replacements that
were 630K when installed 3 years ago). (Exhibit 17: 2017 and 2018 Dispatch Capital)
The 2019 10-year Capital Replacement Schedule (Exhibit 18) identifies capital cost that would
be supported by this increase. The increased cost for Dispatch operations and capital are
illustrated in 2019 E9-1-1 Budget and 5-year plan (Exhibit 19; Tab E-9-1-1 with incrs) with the
increase calculated to begin second quarter of 2019. An explanation of Capital cost estimates for
the next 5 years can be found in (Exhibit 20).
A surcharge of Two Dollars ($2.00) per month is necessary to provide continued and adequate
emergency telephone service and the Authority Board is requesting that the Public Utilities
Commission approve a rate increase of Seventy-five Cents ($.75) per month, to Two Dollars
($2.00) per month for access exchange and wireless users, to become effective as of April 1,
2019.
Attachment 2 – Public Notice of Application – 911 Surcharge Increase
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PUBLIC NOTICE 911 SURCHARGE INCREASE
NOTICE OF APPLICATION
By the Pitkin County 911 Authority Board of Directors to increase the surcharge for 911
services to two dollars ($2.00)
Notice is hereby given that the Pitkin County 911 Authority Board of Directors
(“Authority”) has applied to the Colorado Public Utilities Commission (“PUC”) for
approval to increase the current 9-1-1 surcharge fees affecting all residents of Pitkin
County, the Basalt/El Jebel section of Eagle County and the Marble section of Gunnison
County with wired, wireless, or VoIP telephone service. The Authority has requested that
the new surcharge become effective upon approval of the PUC and after sixty (60) days’
notice to all service suppliers. This application, PUC Proceeding No. 19A-0054T, was
filed on Jan 18th, 2019.
The requested surcharge increase from the current amount of one dollar and twenty five
cents ($1.25) per month to two dollars ($2.00) is necessary to pay for and maintain, as
allowed by C.R.S. §§ 29-11-102 and 104, costs associated with the emergency telephone
service and emergency notification service for equipment and installation, monthly
recurring charges from service providers and basic emergency service providers, and
personnel expenses necessarily incurred for the public safety answering points serving
Pitkin and (portions of) Eagle and Gunnison Counties.
The Application filed by the Authority with the PUC will be available for inspection by
contacting:
Brett Loeb
911 Commander, Pitkin County Sheriff’s Office
Pitkin County Regional Emergency Dispatch Center
43 Sage Way
Aspen, CO 81611
Brett.Loeb@Pitkin911.org
Office (970) 315-2184
Any person may file written comments or objections concerning the Application with the
Colorado Public Utilities Commission. Any person who desires to participate as a party in
any proceeding before the Commission regarding the filing shall file an intervention in
accordance with Rule 1401 of the Commission’s Rules of Practice and Procedure. The
intervention deadline is February 21st, 2019.
Attachment 2 – Public Notice of Application – 911 Surcharge Increase
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The Commission may hold a public hearing in addition to an evidentiary hearing on the
Application and if such a hearing is held, members of the public may attend and make
statements even if they did not file comments, objections or an intervention. If the
Application is uncontested and unopposed, the Commission may determine the matter
without a hearing and without further notice.
Any person desiring information regarding if and when hearings may be held shall submit
a written request to the Commission or shall alternatively contact the External Affairs
Section of the Commission at (303) 894-2070 or (800) 456-0858. Individuals may also
file comments by e-mailing them to the Public Utilities Commission at
dora_puc_complaints@state.co.us
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MEMORANDUM
TO: Mayor and City Council
FROM: Richard Pryor, Chief of Police
DATE: February 1, 2019
RE: 911 Phone Surcharge Increase
SUMMARY: This is an informational memo that requires no action by City Council. An
application has been submitted by the Aspen-Pitkin County Emergency Telephone
Service Authority to the State of Colorado PUC, to request the increase of the 911 phone
surcharge from $1.25 to $2.00 per line.
PREVIOUS COUNCIL ACTION: City Council approved the current surcharge in 2009.
It has since been recognized that the Aspen-Pitkin County Emergency Telephone Service
Authority is vested with the authority to approve such proposals without the need for any
other board approval.
BACKGROUND: The “Pitkin 911 Surcharge PUC Application” (Attachment A) was
developed by Pitkin County Communications Director Brett Loeb with the assistance of
Pitkin County Assistant Manager Phylis Mattice and County Attorney’s Office. The
application was developed at the direction of the Aspen-Pitkin County Emergency
Telephone Service Authority Board. The Board is comprised of Aspen Chief of Police
Richard Pryor (Chair), Pitkin County Sheriff Joe DiSalvo, Town of Snowmass Village
Chief of Police Brian Olson, Town of Basalt Chief of Police Greg Knott, and
Basalt/Snowmass Fire Chief Scott Thompson of the Roaring Fork Fire Rescue Authority.
DISCUSSION: The objective of the Board in requesting this fee increase is to ensure
a sustainable 911 fund balance for the next ten years which provides for increased
operational and capital needs. The application includes supporting information related
to:
The history of the Authority Board and it’s funding stream.
Area characteristics including populations served.
Agencies served.
Technological changes
Dispatch Center Support and Costs.
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Of note in the application are:
The 97% increase in 911 calls received and processed by dispatch since 2009,
from 5656 in 2009 to 11,144 in 2017.
The ongoing collaboration between our local public safety stakeholders, fire,
police, sheriff and ambulance.
The number of people served at peak tourist season illustrated through
emergency messaging during the Basalt fire when 29,795 devices were contacted
at one time with a single message just in the Aspen/Snowmass (up valley) area.
The future implementation of Next Generation 911 IP based services leading to
the ability to accept more public safety information such as medical data,
automatic crash notification data, pictures, etc.
Also attached (“B”) is a copy of the required “Public Notice of Application – 911 Surcharge
Increase.”
FINANCIAL/BUDGET IMPACTS: The E911 fund has subsidized the City of Aspen
(and the other stakeholders) budget contribution for Dispatch operational and capital
expenses at the following levels:
Year E911
Appropriation
City of Aspen
Appropriation
2019 $578,963 $410,632
2018 $562,100 $442,559
2017 $550,000 $457,753
2016 $394,972 $427,073
2015 $288,822 $396,128
The subsidy has enabled the City of Aspen to maintain a relatively constant appropriation
for Dispatch operational services (see table above.)
STAFF RECOMMENDATION: Information only. If Council members have any questions,
please contact Richard Pryor.
ATTACHMENTS:
1 - Pitkin 911 Surcharge PUC Application
2 - Public Notice of Application – 911 Surcharge Increase