01-16-2007 City Council Study Session PacketCity of Grand Island
Tuesday, January 16, 2007
Study Session Packet
City Council:Mayor:
Margaret Hornady
City Administrator:
Gary Greer
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Carole Cornelius
John Gericke
Peg Gilbert
Joyce Haase
Robert Meyer
Mitchell Nickerson
Jackie Pielstick
Vacancy
Scott Walker
Fred Whitesides
Call to Order
City of Grand Island City Council
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
Invocation - Associate Pastor Alan Davis, Independent Bethel Baptist Church, 1223
East 6th Street
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act
in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state
law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item -1
Discussion Concerning Amendments to Chapter 34 of the Grand
Island City Code Relative to Telecommunications Occupation Tax
Tuesday, January 16, 2007
Study Session
City of Grand Island
Staff Contact: Paul Briseno
City of Grand Island City Council
Council Agenda Memo
From: Gary D. Greer, City Administrator
Meeting: January 16, 2007
Subject: Revision to Chapter 23 of the City Code
Item #’s: 1
Presenter: Gary D. Greer, City Administrator
David Springer, Finance Director
Larry Smith, Interim Emergency Manager
Background
According to the minutes of November 20, 1957 Council Meeting, the City of Grand
Island Finance Committee recommended the council impose an occupation tax for
telephone services to increase funding for the operation of the city. In 1958 the City of
Grand Island adopted Ordinance number 3365 enacting the current 3% occupational tax
on telephone landlines, appropriately named the Telegraph Companies Occupational Tax.
Historically the revenue collected from this tax is allocated throughout the General Fund.
According to the 1960 census Grand Island had a population of 25,742 with nearly all
residents ha ving a landline telephone.
Today Grand Island’s population is well over 45,000. In this day of technology, mobile
phones are rapidly taking the place of traditional landline phones. In 2002 the percentage
of calls received in the 911 center from mobile phones was 14%. Since 2002 the
percentage has drastically increased to over 50%. With the proliferation of cell phones it
appears that this trend will continue in the future. Please see the attached graph detailing
the percentage of landline vs. mobile phone calls received in the Grand Island/Hall
County 911 call center. Collected telephone occupational tax dollars has decreased
throughout the years confirming the number of landlines is decreasing.
According to the Nebraska Public Service Commission (NPSC) and the Hall
County/Grand Island Emergency Management Department, there are 16,000 mobile lines
and 25,692 landlines in Hall County. During the December 20, 2006 ice storm 57% of the
calls received in 911 were from mobile phones.
In 1990 the Hall County Board passed a resolution which levied a monthly $0.50
surcharge on all land lines in the county. Then they passed a resolution increasing the
surcharge from $0.50 to $1 in 2002 to offset the declining revenues. This surcharge is
utilized as a subsidy to offset expenses of the 911 call center. State Statues 86-436, 420-
441 allow for this surcharge by local governing bodies to fund the creation and operation
of 911 emergency telephone communication systems throughout the state. As landline
numbers decrease the collected dollars have been undependable. Currently the fund is
fighting to stay in the black. When this surcharge was originally created, only landlines
utilized the 911 service and telecommunication specialists received one or two calls per
emergency incident. Today it is not uncommon to receive multiple phone calls per
incident with the convenience of mobile phones. Altho ugh the more calls received creates
greater knowledge and better response to an incident, it also creates duplication and a
greater workload for 911 and first responders.
Nebraska revised State Statue 86-457 originally created in 2001, that allows for the
collection of a $0.50 surcharge on wireless access lines by the Nebraska Public Service
Commission. This surcharge appears on a billing statement as “Enhanced Wireless 911
Surcharge” or a reasonable abbreviation. Once collected from a wireless provider these
monies are transferred to the state. The Nebraska Public Service Commission allocates
the collected surcharge to private wireless carriers and public safety answering points
(911 centers) for costs related to enhanced wireless 911 services. It has been determined
that this revenue is far short of the amount needed to bring the entire state up to
acceptable technological levels. There is no guarantee that money will be available for
our needs, when it would be available, or how we will stack up against the needs of
private mobile companies and other 911 centers.
Discussion
The 911 call center and Emergency Management Department are in need of extensive
software and equipment upgrades to meet the current and changing demands of
technology. The current equipment does not identify mobile phone location, which is a
much needed service for Grand Island and Hall County rural areas. Additionally, Deputy
Emergency Manager Larry Smith reported to the Civil Defense – Communication Center
Joint City/County Committee that the department is requesting staff to keep up with
demand. Please see the attached report concerning this issue.
Faced with the aforementioned expanding needs, City Administration has researched
several revenue alternatives. Considerations were given to increasing taxes, grant funds,
cutting programs and putting off the expenditures for the needed upgrades. After
considerable research and debate it appeared that seeking grant funds and instituting the
occupation tax would be the best approach to securing the revenue.
The amendment of the telephone occupational tax ordinance to include mobile phones
will generate revenue to offset the increased work created by mobile phones. It will also
allow the Emergency Management Department to purchase equipment that will eliminate
deficiencies and increase safety of Hall County citizens.
In addition, the amendment will level the playing field between landline phone
companies and wireless companies. The ordinance simply adds mobile
telecommunications services as subject to the occupational tax. In order to allow time for
the implementation of this ordinance by wireless companies, the ordinance is drawn up to
take effect March 1, 2007. The occupation fee would be charged to all wireless phones
with billing addresses in the city limits.
Multiple communities throughout Nebraska have enacted a similar tax. These include
Bellevue, Columbus, Lincoln, Omaha, South Sioux City, Norfolk, Seward and Elkhorn.
Please refer to the attached chart concerning communities who have already enacted an
occupation fee. Administration is recommending the same percentage for mobile phones
as enacted in 1958 for landline phones, 3%.
Revenues from the occupational fee are expected to be approximately $400,000. These
funds will be placed in the general fund to offset costs concerning the 911 operation and
other emergency related city costs.
Conclusion
This item is presented to the City Council in a Study Session to allow for any questions to
be answered and to create a greater understanding of the issue at hand.
Description Summary Qty Individual Cost Total CostWarning Sirens Replacement of 31 outdated sirens in Grand Island & Hall County. Parts are no longer available for these sirens 31 16,000$ 496,000$ Warning Sirens Cairo and Doniphan have requested additional sirens 2 16,000$ 32,000$ Radio Channels Backup Radio channels for GIPD, HCSO, GIFD & Rural Fire 3 30,000$ 90,000$ Radio Control StationsReplacement of existing GIFD, GIPD and HCSO radio control stations 3 10,000$ 30,000$ Repeater Replacement of GIFD and Administrative command repeater 2 10,000$ 20,000$ Alternate EOC Backup 911 Center 1 500,000$ 500,000$ Dispatchers 2 additional FTE's are needed for 911 dispatching (annual cost) 2 41,622$ 83,244$ Computers Computer Hardware for City and County network 1 9,500$ 9,500$ 911 Mapping Mapping of for 911 - beginning of phase II E911 1 29,000$ $0 (NPSC)911 Radio Consoles Replacement of 911 radio consoles 1 316,000$ $0 (HLSG)Expansion and RenovationExpansion and renovation needed for new consoles obtained from Homeland Security Grant dollars1 60,000$ 60,000$ Vehicle 4 wheel drive vehicle for 911 1 25,000$ 25,000$ Generator Replacement of 50 yr old generator for the radio tower 1 40,000$ 40,000$ Radio Combiner Equipment allows for the use of multiple radios on 1 antenna 1 30,000$ 30,000$ 1,415,744$ Total 911/Emergency Management Capital Needs
Municipality Rate Annual Occ Tax Revenue Revenue @ 3% 2005 pop 3% Tax per Capita MonthlyBellevue 5.00% 911,671.00$ 547,003.00$ 45,955 11.90$ 0.99$ Columbus 3.00% 268,000.00$ 268,000.00$ 20,998 12.76$ 1.06$ Lincoln 5.50% 6,437,000.00$ 3,511,091.00$ 226,081 15.53$ 1.29$ Omaha 6.25% 13,700,000.00$ 6,576,000.00$ 392,127 16.77$ 1.40$ Norfolk 3.00%South Sioux $1 Per billSeward 4.00%Elkhorn 5.00%Monthly Bill Occ Tax Tax Charged30.00$ 3% 0.90$ 50.00$ 3% 1.50$ 75.00$ 3% 2.25$ 100.00$ 3% 3.00$ Cell rate enacted this yearCell Bill Tax @ 3%Nebraska Cities With a Mobile Occupational Tax
Landline Telephone Occupational Tax Collected$-$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,0002003 2004 2005 2006Series2General Fund Revenue
Landline Enhanced 911 Surcharge
Process (State Statutes 86-420 - 86-441.01)
Landline Customer
Hall County
Funds generated by the service surcharge shall be expended only for
the purchase, installation, maintenance, and operation of
telecommunications equipment and telecommunications-related
services required for the provision of 911.
Hall County passed a resolution enabling the collection of a $1.00
surcharge for 911 July 16, 2002. Currently there are 25,692 landlines
in Hall Count.
Governing Body
Landline
Service
Provider
Each service supplier shall collect a fee from users through a billed
service surcharge.
The amount of service surcharges collected in one calendar quarter by
a service supplier shall be remitted to the governing body.
911
Funds collected by a governing body from the imposition of a service
surcharge shall be credited to a separate fund apart from the general
revenue of the governing body and shall be used solely to pay for the
costs for 911 service.
Percentage of Landline vs Mobile Phone Calls Received in the 911 Call Center0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%100.00%2002 2003 2004 2005 2006LandCell