COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES

VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS COMMITTEE HEARING

STATE CAPITOL HARRISBURG, PA

IRVIS OFFICE BUILDING ROOM G-50

WEDNESDAY, MARCH 18, 2 015 10:33 A.M.

PRESENTATION ON 911 EMERGENCY TELEPHONE ACT REWRITE

BEFORE: HONORABLE STEPHEN BARRAR, MAJORITY CHAIRMAN HONORABLE FRANK A. FARRY HONORABLE JOSEPH T. HACKETT HONORABLE HONORABLE JIM MARSHALL HONORABLE JOHN MCGINNIS HONORABLE RICK SACCONE HONORABLE HONORABLE HONORABLE , DEMOCRATIC CHAIRMAN HONORABLE HONORABLE WILLIAM C. KORTZ HONORABLE

Pennsylvania House of Representatives Commonwealth of Pennsylvania 2

COMMITTEE STAFF PRESENT: RICK O ’LEARY MAJORITY EXECUTIVE DIRECTOR SEAN HARRIS MAJORITY RESEARCH ANALYST LU ANN FAHNDRICH MAJORITY ADMINISTRATIVE ASSISTANT COLEEN ENGVALL MAJORITY INTERN

AMY BRINTON DEMOCRATIC EXECUTIVE DIRECTOR HARRY BUCHER DEMOCRATIC RESEARCH ANALYST IAN MAHAL DEMOCRATIC RESEARCH ANALYST 3

I N D E X

TESTIFIERS

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NAMEPAGE

DOUG HILL EXECUTIVE DIRECTOR, COUNTY COMMISSIONERS ASSOCIATION OF PA ...... 9

RICK FLINN DIRECTOR, PA EMERGENCY MANAGEMENT AGENCY...... 40 Accompanied by ROBERT A. FULL CHIEF DEPUTY DIRECTOR AT PEMA

BRIAN MELCER PRESIDENT OF PA NENA, and DIRECTOR OF PUBLIC SAFETY, LAWRENCE COUNTY...... 61 Accompanied by SCOTT KRATER PRESIDENT OF PA APCO, and DIRECTOR OF SCHUYLKILL COUNTY 911

MICHAEL C. MCGRADY CHAIRMAN, JOINT PA APCO/PA NENA LEGISLATIVE COMMITTEE

TIM BALDWIN PAST PRESIDENT OF PA NENA, and DEPUTY DIRECTOR, LANCASTER COUNTY COMMUNICATIONS

JOHN GRAPPY DIRECTOR, ERIE COUNTY DEPT. OF PUBLIC SAFETY, and WESTERN REPRESENTATIVE FOR PA NENA

JOHN GEIB EASTERN AREA REPRESENTATIVE, PA NENA

FRANK BUZYDLOWSKI DIRECTOR, STATE GOVERNMENT RELATIONS, VERIZON...... 89 4

I N D E X

TESTIFIERS (cont’d)

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NAMEPAGE

DAVID KERR REGIONAL VICE PRESIDENT, EXTERNAL AFFAIRS, AT&T...... 94

STEVEN SAMARA PRESIDENT, PENNSYLVANIA TELEPHONE ASSOCIATION...... 98

RAYMOND HAYLING DEPUTY CHIEF INFORMATION OFFICER, CITY OF PHILADELPHIA...... 110

RICH FITZGERALD COUNTY EXECUTIVE, ALLEGHENY COUNTY...... 128 Accompanied by GARY THOMAS ASSISTANT CHIEF, ALLEGHENY COUNTY EMERGENCY 911 CENTER

ROLAND "BUD" MERTZ DIRECTOR, WESTMORELAND COUNTY DEPT OF PUBLIC SAFETY.... 142

GERALD LUCIA MAYOR AND FIRE CHIEF, MT. PLEASANT BOROUGH and PRESIDENT, WESTMORELAND COUNTY FIRE CHIEF’S ASSOC...... 147

DONALD THOMA ADAMSBURG BOROUGH FIRE CHIEF, and DIRECTOR OF ADAMSBURG AMBULANCE SERVICE...... 148

NICK CAESAR DEPUTY 911 DIRECTOR, WESTMORELAND COUNTY...... 151 5

I N D E X

TESTIFIERS (cont’d)

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NAME PAGE

MICHAEL PRIES COUNTY COMMISSIONER, DAUPHIN COUNTY...... 154

STEPHEN LIBHART DIRECTOR, EMA/911 DAUPHIN COUNTY...... 156

BRIAN BARNO VICE PRESIDENT, GOVERNMENT AFFAIRS, BROADBAND CABLE ASSOCIATION OF PA ...... 166

SUBMITTED WRITTEN TESTIMONY

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(See submitted written testimony and handouts online.) 1 P R O C E E D I N G S

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3 MAJORITY CHAIRMAN BARRAR: Good morning, everyone.

4 I’m Representative Steve Barrar, the Majority Chairman of

5 the House Veterans Affairs Emergency Preparedness Committee

6 and I ’d like to call this public hearing to order.

7 I would ask Representative Pete Schweyer, one of

8 our new Members, to lead us in the Pledge of Allegiance.

9 REPRESENTATIVE SCHWEYER: Thank you,

10 Mr. Chairman.

11

12 (The Pledge of Allegiance was recited.)

13

14 MAJORITY CHAIRMAN BARRAR: I want to thank the

15 Members for being here this morning, and I would ask the

16 Members and the staff to introduce themselves. If we’d

17 start off with the Representatives.

18 REPRESENTATIVE BARBIN: Representative Bryan

19 Barbin representing Cambria County.

20 REPRESENTATIVE MCGINNIS: Representative John

21 McGinnis, 79th District, Blair County.

22 REPRESENTATIVE TALLMAN: Will Tallman, Adams and

23 Cumberland County.

24 REPRESENTATIVE SACCONE: Rick Saccone

25 representing parts of Allegheny and Washington Counties. 7

1 REPRESENTATIVE JOZWIAK: Barry Jozwiak, Berks

2 County.

3 MR. HARRIS: Sean Harris, Research Analyst for

4 the Committee.

5 MR. O'LEARY: Rick O'Leary, Executive Director

6 for Chairman Barrar.

7 MINORITY CHAIRMAN SAINATO: Representative Chris

8 Sainato. I ’m the Democratic Chairman of the Committee.

9 MS. BRINTON: Amy Brinton, I’m Executive Director

10 for Chairman Sainato.

11 REPRESENTATIVE KORTZ: Good morning, everyone.

12 My name’s Bill Kortz, 38th District, Allegheny County.

13 REPRESENTATIVE SCHWEYER: Good morning. Peter

14 Schweyer representing the 22nd District, Lehigh County,

15 City of Allentown.

16 MAJORITY CHAIRMAN BARRAR: We will probably have

17 other Members that we will introduce coming in and out of

18 the Committee since the Appropriations Committee is also

19 meeting. Some of our Members are currently up there.

20 As many of you are aware, this Committee has

21 conducted five hearings across the State of Pennsylvania on

22 this important 911 law rewrite and has conducted numerous

23 stakeholder meetings and many individual meetings with

24 various agencies and organizations that have a vested

25 interest in our 911 emergency communications system. 8

1 Before us today, w e ’re going to call up a couple

2 panels. Before us today, we have several agencies and

3 groups who have been working together on a proposed draft

4 bill, which would modernize our 911 law. I want to thank

5 everyone for your participation in the meeting today.

6 Chairman Sainato, do you have any remarks?

7 MINORITY CHAIRMAN SAINATO: Thank you, Chairman

8 Barrar.

9 I, too, would like to thank everybody for coming

10 today. It’s a very important meeting to move the process

11 forward as we continue to gather all the information. I

12 especially want to thank our Members. Like Mr. Chairman

13 Barrar say, w e ’re going to have some in and out today. I

14 know we have long day scheduled and hopefully we will get

15 some more information as this process moves forward.

16 Thank you.

17 MAJORITY CHAIRMAN BARRAR: Okay. And joining us

18 right now is Representative .

19 Frank, you’re Bucks County, right?

20 REPRESENTATIVE FARRY: Yes, sir.

21 MAJORITY CHAIRMAN BARRAR: Okay. At this time I

22 would like to call up one of our primary stakeholders, Doug

23 Hill, who is the Executive Director for the County

24 Commissioners Association.

25 Doug, it’s a pleasure to have you here and you 9

1 can begin your testimony when you’re ready.

2 MR. HILL: Thank you, Mr. Chairman. And it is

3 great to be in front of this group again. We have truly

4 appreciated the working relationship with all the Members

5 of the Committee, and I also want to commend your staff as

6 well. They have done exceptional work in taking the issues

7 and ideas that we brought to the table and synthesizing

8 them and getting them into proper form for everyone’s

9 consideration. It’s been a remarkable effort.

10 You have our testimony in front of you. I’m

11 obviously not going to read that. It’s pretty lengthy, so

12 I do just want to focus in on a few things.

13 W e ’ve been in front of you on a number of

14 occasions now. We are comfortable with your awareness of

15 the system and the system’s issues, the counties’ role as

16 the provider of 911, the disjointed nature, siloed nature

17 of the statute, and we appreciate again the generous

18 opportunity you gave us back in February to review our

19 proposal at length with the Committee.

20 Since then, our working group has been together a

21 few times and w e ’ve met with staff a few times as well.

22 W e ’ve taken the comments that you made at the last meeting

23 to heart and tried to incorporate those into the draft

24 legislation.

25 The draft that w e ’ve come up with focuses on 10

1 three primary objectives: First, to improve 911 system

2 administration by combining silos and preparing for next-

3 generation technologies; second, by sorting out the

4 governance mechanisms in a way that respects counties’ role

5 as a primary provider while balancing our broader interests

6 in coordination statewide; and third, working toward a

7 sustainable and equitable fee and attendant financing

8 structure.

9 We think the draft will satisfactorily address

10 your concerns and issues on the first two objectives, but

11 in that informational meeting and in hallway conversations

12 with you and many of your colleagues since then, we know

13 that the fee that w e ’ve proposed continues to be a sticking

14 point. And with your permission, the remainder of our

15 remarks will simply focus in on the finances of the system.

16 The context really is in three parts: First,

17 there is a recognition that for counties the bottom line is

18 a significant growing backfill in local property tax

19 dollars to keep the 911 systems operational, and

20 particularly, given the intent of the original law was for

21 the subscriber fees to pay all of the counties’ costs.

22 Second, we need to have resources to invest and to invest

23 in the next generation 911 and to do so in a way that keeps

24 our system among the best in the Nation. And third, as you

25 all are very much away, prompt action is needed because 11

1 this reaches crisis proportions if we don’t have something

2 on the Governor’s desk by the June 30th expiration of the

3 wireless telephone surcharge.

4 Now, the formal testimony goes into a lot more

5 detail on a number of specific issues. We describe the

6 funding mechanism, we talk about its history, we talk about

7 current issues in the funding mechanism, review some

8 emerging fiscal challenges, we talk about cost savings

9 opportunities because this isn’t all about raising fees;

10 this is also about reducing administrative overhead and

11 other costs. And we have a number of recommendations in

12 the testimony on operational and administrative issues, and

13 I’ll invite you to read through that at your leisure and

14 would certainly be happy to answer your questions about

15 that at the conclusion.

16 But instead, I ’m going to focus on the

17 recommended fee rates and this really starts about page 8

18 of the testimony. Any time the proposal is discussed, the

19 rate is the one topic that we come back to, and so we

20 wanted to elaborate a little bit on the rate, the basis for

21 that rate, and the rationale that we use to arrive at the

22 proposal.

23 And there are three components to the fee and the

24 rate: First, as we indicated at the February 11th

25 informational meeting, we have to meet current and near- 12

1 term fiscal needs, and so the proposal increases the

2 monthly subscriber rate by between 50 cents and $1 for a

3 new uniform rate of $2.

4 Second, going forward, we need to ensure we don’t

5 get caught in a 25-year trap again, in other words, no

6 adjustment to meet need. And so while we support including

7 a cost-of-living provision, that’s not written into the

8 current draft, and instead, the draft says we will visit

9 the rate and the rate structure on a four-year sunset.

10 And then last, between now and the four-year

11 sunset, PEMA, along with the new 911 Board, are directed to

12 study the finances of the system, to study how the

13 marketplaces are maturing to determine whether a different

14 kind of fee structure should be put in place and what the

15 nature and rate of that might be.

16 So there are compelling reasons to consider the

17 fee at the rate that we’ve proposed. Counties have been

18 good stewards of the existing fee. There’s a clearly

19 defined need. The public understands and accepts the

20 subscriber surcharge. The fee structure is efficient and

21 equitable. Any lesser fee would have negative

22 consequences, and it’s a simple matter of equity. And let

23 me just explore each of those a little bit.

24 First, counties have been good stewards. Prior

25 to counties’ assumption of 911 responsibility in 1990, the 13

1 system, for all practical purposes, didn’t exist in

2 Pennsylvania. Under county stewardship we put it in place.

3 We had it operational statewide within five years and we've

4 adapted to every technological change since then, and in

5 most cases, consistent with best practices nationally.

6 Counties from the outset use a centralized call-

7 taking model, and as a result, we have among the fewest

8 PSAPs per capita in the State. Counties also began early

9 to assume the dispatch role, which is and always was part

10 of call-taking systems, which created further system

11 efficiencies and also reduced our responders' costs.

12 We were also among the earliest in deploying

13 E-911 location systems for wireless and we continue to lead

14 nationally in coverage rates and in compliance with the

15 national standards. And counties are also already

16 incorporating elements of next generation of 911, including

17 development of shared broadband backbones and incorporation

18 of text 911.

19 Our second point, there is clearly a defined

20 need. We have one of the best systems in the Nation but

21 we've been doing so on the same $1 to $1.50 monthly

22 subscriber fee that was established in 1990. But like any

23 rate that remain unchanged for any length of time, let

24 alone a quarter of a century, rising costs have begun to

25 erode and in effect have now overwhelmed the available 14

1 funding.

2 So we have included a chart in our testimony.

3 For those unable to see it or those not in the room, we

4 have this in our testimony, which has been posted to our

5 website, PACounties.org. And what this chart illustrates

6 is the cost of the system and the funding sources over a

7 10-year time span. Things that you’ll notice, the

8 wireline, this band right here, you see how the revenue

9 from that has declined at a precipitous rate in just a 10-

10 year span. Wireless and VoIP, by the way -- VoIP comes in

11 here with the adoption of that fee in 2008 -- they’re not

12 direct tradeoffs. If someone at home switches from

13 wireline to VoIP, the wireline fee drops off at a $1 to

14 $1.50 and instead is a straight $1 for the VoIP.

15 System costs, as you say, continue to rise and

16 not at a huge rate but it’s still at a steady rate, and

17 that’s based in largest part on our adaptation to

18 technology, as well as increasing personnel costs. But if

19 you take a look at the line just beneath it, what you see

20 is that the fees that w e ’ve been collecting under the

21 existing subscriber surcharges have, for all intents and

22 purposes, leveled off, and in fact, we had a peak in 2010

23 and it’s been generally declining since. And there are

24 some reasons for that. We go into that in some detail in

25 the earlier part of the testimony. You’re welcome to take 15

1 a look through that or I can elaborate if you like. But

2 the bottom line is that all of these fees are keyed to 1990

3 rates.

4 The other point we want to make is that this top

5 line, the total cost, doesn’t actually reflect the total

6 cost of what counties are paying. These reflect the

7 allowable costs that we’ve filed with PEMA, and so there

8 are costs that are not allowed, bricks and mortar, certain

9 portion of personnel costs, some overhead costs, and then

10 there are costs that counties simply don’t report because

11 there isn’t a compelling reason to do so. Those include

12 sometimes major capital purchases that are either amortized

13 or simply not reported to PEMA, so there are costs above

14 that.

15 But the one thing that you need to see to take

16 away from this chart is this gold band and that’s the

17 property tax. That’s the property tax that fills the

18 difference between what the fees provide and what it costs

19 us to provide the system. In 2005, that was about 18.5

20 million statewide. Last year, that was 103 million. And

21 at this point you can see graphically that represents well

22 over a third of the cost of the system is being provided by

23 the counties out of local property tax dollars.

24 The third point we want to make is that the

25 public understands and accepts the subscriber surcharge. 16

1 Access to 911 is a public necessity and the provision of

2 highest-quality, highest-available-standards 911 is a

3 public expectation and that’s what we try to do. The same

4 $1 to $1.50 has appeared on the telephone subscribers’

5 monthly bills for nearly 25 years. The proposal increases

6 that fee by just 50 cents to $1 a month, the first increase

7 in 25 years. We know the public understands the value of

8 the service they receive and we know they can appreciate

9 the value compared to life and property of what county 911

10 systems deliver at such a remarkably low cost.

11 The fourth point, the fee structure is efficient

12 and equitable. The 911 system is about communications, and

13 the fee structure, which is based on access to

14 communications, has the closest possible nexus to those who

15 use the service. The add-on to the monthly communications

16 bill or prepaid wireless transaction is an incremental

17 cost, unlike an annual tax bill. It’s a dedicated fee. It

18 cannot be used under current law or under our proposal for

19 any other governmental purpose other than 911. And last,

20 it’s efficiently collected and remitted and with low

21 overhead.

22 Now, by contrast, there have been a couple

23 proposals advanced for alternate fees, and the two

24 predominant ones are a local per capita or a local per

25 parcel fee, and we don’t have a lot of detail on those but 17

1 just in general a few thoughts. We do appreciate the

2 discussion. We appreciate the notion that we should have

3 the ability to raise some revenues locally. It’s hard to

4 find what an equitable source might be, particularly

5 compared to what we already receive from the subscriber

6 fees.

7 The issues that we have with the per capita and

8 per parcel fees are equity and efficiency. For either of

9 those, they would be based on roles that don’t exist.

10 Counties would have to develop a per capita role or

11 counties would have to develop a per parcel role. One

12 proposal talks about levies being based to bring some

13 equity, talks about having the business side of the levy

14 raised based on number of employees. That’s a role that

15 doesn’t exist and obviously is changeable almost daily. So

16 to levy the fee, well, it’s money that stays local and

17 that’s appreciated. We would have to develop an assessment

18 role, we would have to develop a billing role, and we would

19 have to develop a collection system to do either of those.

20 Per capita has one particular flaw in that it

21 shifts the entirety of the burden over to individuals

22 because businesses don’t pay a per capita fee. In a

23 different way, a per parcel fee is problematic because if

24 it’s -- pick a number -- $28 per residential parcel, one is

25 a townhome, the next is a multifamily home, and the next is 18

1 a 30-acre estate all at the same rate, and that’s not

2 particularly equitable.

3 And then on the other side of it, locally raised

4 fees have an equity issue for the counties themselves, and

5 here I’m talking particularly about its ability to generate

6 meaningful funds in smaller or less densely populated

7 counties. So it’s a discussion we think we would like to

8 have, something that can work as an adjunct, but certainly

9 not as a primary or major funding source for the system.

10 Now, another point we would like to make is that

11 a fee lower than the $2 we propose has negative

12 consequences. The original law promised counties a fee

13 system that will cover the costs of providing 911 services.

14 The original law was simply designed as a PUC rate-making

15 and the counties would file with the PUC on what their

16 rates should be. If the PUC agreed, then that was what

17 rate the counties would have. When the law was finally

18 passed, the caps were added, the $1 to $1.50, and so that’s

19 really where the focus has been because, by and large,

20 we’ve hit those caps. PUC approval is meaningless and

21 unnecessary. But the bottom line for us is that the $2

22 begins to restore the promise that the original law

23 intended that the fees pay for the cost of the system.

24 There are immediate consequences if we would go

25 to a lower rate. First, as you may remember in the 19

1 proposal, we distribute the funds largely on a formula

2 basis. So 5 percent is distributed across all PSAPs, 70

3 percent is driven out by direct mathematical formula, 25

4 percent is set aside for special purposes, and that

5 includes 2 percent for PEMA to run its side of the 911

6 system, 8 percent to do statewide backbone on broadband

7 basis, and 15 percent is set aside for incentive grants for

8 consolidation and improving systems efficiency.

9 If we were to go lower than $2, we would have to

10 eliminate the 8 percent, we would have to probably halve

11 the amount that goes to PEMA, the 2 percent would drop to

12 1, and depending on what rate you ultimately decide, you

13 would probably have to reduce or eliminate the 15 percent

14 incentive fund because if we didn’t do that, the remaining

15 75 percent doesn’t represent enough of an increase to keep

16 us even to where we are right now, and there are counties

17 that could be losers.

18 The long-term effect is also important to note

19 because we’re trying to build in system capacity, and most

20 particularly, we know next generation is coming. We don’t

21 know how quickly, we don’t know what it’s going to cost,

22 but it’s going to include things like video, nonhuman

23 dialing on Star, those kinds of things, and those are going

24 to be important elements of the system. I know you can

25 understand that. It would improve the outcomes for those 20

1 in need. It would improve the efficiency and the safety

2 for our first responders if we can take advantage of those

3 technologies. They're not quite ripe yet for us to install

4 but we know it's not a 10-year timeline. It's going to be

5 shorter than that before the demand hits us, and if we

6 don't build in fiscal capacity, then we're not going to be

7 able to do that in any kind of a timely fashion.

8 The last point I want to make is that we are also

9 talking about the fee as a matter of equity. As we noted

10 in the formal testimony, the Legislative Budget and Finance

11 Committee in its 2012 report suggested that just adjusting

12 on the basis of inflation, the $1 that was available for

13 first-, second-, and second-class-A counties would be

14 $1.72. The $1.25 that was available for third- through

15 fifth-class counties would be $2.15. And the $1.50 that

16 was put in place in 1990 for sixth- through eighth-class

17 counties would be $2.58 just on a simple inflation basis,

18 and that doesn't include the additional costs we've

19 incurred over time because of unanticipated changes and

20 accommodations we needed to make in technology.

21 So we have one more chart and this is on the last

22 page of the testimony. And what we did here was to

23 illustrate where a sample of subscriber rates would fall.

24 And it includes the three wireline rates, the $1.50, $1.25,

25 and the $1 across the top, and then as you go down the 21

1 chart, you can see inflation by year and how that

2 translates out for each of the fees that have been under

3 discussion. The $1 column, by the way, also represents the

4 amount of that collected under wireless and a VoIP; and

5 then the last column, the $1.06, if you remember the

6 testimony at the February 11th hearing, the industry said

7 $1.06 more or less represents the blended rate statewide.

8 So we thought we would put that column in as well to give

9 you some comparisons.

10 And I think the things that you find here are

11 striking. For example, let’s examine the low end of

12 numbers that w e ’ve already talked about. $1.50, if we were

13 to move to $1.50, what would that mean? Well, every county

14 would be at about 2005 for their wireless and VoIP rates.

15 Just catching up to inflation w e ’d be clear up to 2005.

16 Third- through fifth-class counties would only be up to

17 1996, and sixth- through eighth-class counties would still

18 be at 1990 where they started if we were to only go to

19 $1.50. Even the blended rate only catches up to 2003. And

20 that’s in the light blue here on the chart.

21 By contrast, our proposed $2, which you see on

22 the chart in green, sixth- through eighth-class counties

23 would get up to at least 2000 inflation, third through

24 fifth get as far as 2007, and the wireless VoIP rate

25 actually translates out to about 2018 for projected 22

1 inflation, which is just in time for the proposal’s sunset.

2 Now, admittedly, when we talk about the

3 distribution, the distribution is going to be handled in a

4 different way so this isn’t exactly what counties are going

5 to receive it so I don’t want to be misleading in that

6 respect. But it does show you that we need to be

7 aggressive on the rate; we need to understand that there

8 are costs that have been incurred. We have projected costs

9 that we need to deal with in the name of public safety.

10 That’s why we’re asking the Committee’s consideration for

11 the rate that we have proposed at $2.

12 So let me just conclude again by saying how much

13 I ’ve appreciated the work that the Committee has done on

14 this and the work in the Senate chamber as well. Counties

15 are proud of the role that we play in providing this

16 critical public service but we need a statute and funding

17 mechanism that allows us to continue to do so in a manner

18 that the public expects.

19 So we look forward to working with you on

20 continuing to develop the draft legislation. We hope we

21 can make final adjustment in the next few days and get the

22 bill moving out of Committee so that we have it on its path

23 to the Governor’s desk ahead of the June 30th sunset.

24 And thank you again. I will be happy to take

25 your questions. 23

1 MAJORITY CHAIRMAN BARRAR: Thank you, Doug.

2 We’ve been joined by Representative Donatucci.

3 Where’s she at? Oh, over here. There she is. Good, thank

4 you for joining us today.

5 Doug, on your comments, I didn’t get a chance to

6 read your testimony, but on the concept then of

7 consolidation, which we know would save money, what is the

8 attitude amongst the County Commissioners on some type of a

9 forced consolidation to bring the cost down?

10 MR. HILL: Well, when we talk about

11 consolidation, there’s two different kinds. One is

12 consolidation of PSAPs, Public Safety Answering Points.

13 And Pennsylvania already has the fewest per capita among

14 all the large States, and that’s because of the model the

15 counties put in place back in the 1990s. Further

16 consolidation might help but there’s a cost to that. And

17 first, let me mention, too, our smallest counties already

18 typically use neighboring counties. Potter dispatches by

19 Tioga, for example.

20 But when you talk about combination, you have a

21 capital cost to do that and then you have training issues

22 that have to be overcome as well because Pennsylvania is

23 large, geographically diverse, a lot of old names that get

24 used repeatedly and street names and all the rest. And for

25 a dispatcher to understand your database in one county is 24

1 one thing. To have knowledge of a database on a three-

2 county area is another threshold. And so just

3 consolidating PSAPs for its own sake we don’t think really

4 makes sense, and particularly not on a forced basis.

5 On the other hand, counties are already

6 consolidating back-of-the-shop efforts. You’re familiar

7 with WestCORE project, the projects in the northwestern

8 part of the State as well to do a combined backbone among

9 the counties. And what that does, it saves direct costs.

10 Admittedly, there’s a capital expense to do it, but once in

11 place, it saves monthly costs for the switches, the

12 connection to the phone system.

13 It saves on a developing system redundancy so you

14 don’t need to build your own backup center in your own

15 county; you can use your neighbor as a backup. You can

16 even move your staff to the neighbor’s facility if

17 necessary and still maintain control of your own console

18 remotely using those technologies. And that’s the kind of

19 thing counties are already doing and that’s the kind of

20 thing that the 15 percent set-aside would also intend to

21 support in our proposal.

22 MAJORITY CHAIRMAN BARRAR: I know in our

23 legislation we have now we want to incentivize

24 consolidation, and we understand that any type of a forced

25 consolidation, do our measures go far enough? Is it 25

1 adequate, the language that we have in there to try to

2 incentivize the consolidation?

3 MR. HILL: I think we do. In addition to setting

4 aside a portion of the fund specifically for that purpose

5 -- so it’s a competitive grant basis -- we also incorporate

6 standards that PEMA, in conjunction with the 911 Board, is

7 to develop a set of statewide standards that become the

8 target for the counties. And that target can include, in

9 addition to technological standards, things on optimal

10 staffing levels, for example. And those targets can be

11 achieved by shared services among counties in the types of

12 systems that w e ’ve described and some of the counties are

13 already putting in place.

14 MAJORITY CHAIRMAN BARRAR: I don’t know about the

15 other Members but I’m convinced if we went to a $2 fee,

16 that any concept of consolidation is dead because to give

17 them all the money they want, not all the money they need,

18 it’s almost $100 million more at the current level than

19 what they need today. And I think certainly any type of

20 consolidation would be dead for a while until inflation

21 eats away at that $2 fee.

22 MR. HILL: I appreciate your point, Mr. Chairman,

23 that the available funding is one reason counties are

24 looking at consolidation, but bear in mind, even now, those

25 projects that we’re talking about, they have to put 26

1 millions of dollars upfront in costs to be able to do that.

2 Second, we want to provide the service as

3 efficiently as we can and consolidation allows us to do

4 that.

5 And then third, remember, we have the gun pointed

6 at us of next generation. We know that cost is coming.

7 Even with the $2 w e ’re proposing, we think that might be

8 adequate but we don’t know that to be the case. And if you

9 look at any kind of system conversion, and particularly if

10 you’re talking about bringing in video, which is a whole

11 different set of equipment, we know from our experience

12 moving over to E-911 for wireless, for example, huge

13 capital cost. We think the $2 is still justified. We

14 don’t think the available funding would serve as a

15 disincentive for counties to try to do the job better.

16 MAJORITY CHAIRMAN BARRAR: Representative Barbin

17 for a question.

18 REPRESENTATIVE BARBIN: Thank you, Mr. Hill.

19 Your testimony, I went over it and your prior testimony

20 before the Committee. You’ve made great strides to try to

21 get a structure in place where everybody pays the same

22 amount, which I think is a really good thing. The problem

23 that I still have with this proposal is there’s like four

24 groups of people. You’ve got the people that are the

25 service providers that have to pay the money and really 27

1 it's the rate -- the individual residents of Pennsylvania,

2 it's a pass-through but their bills are going up.

3 MR. HILL: Right.

4 REPRESENTATIVE BARBIN: Number two, you've got

5 that county who wants the money because they want to build

6 out the best services possible for their individual areas

7 that we've got 67 counties. And then you've got the State

8 Legislature that has to approve any increase. And then you

9 have PEMA, which I still don't understand under this

10 proposal what role they're serving because you've got a

11 board that has -- you've gone from advisory board to here,

12 we're going to come up with the rules to help PEMA and help

13 the Commonwealth but you don't have the State Police in it

14 and you don't have the emergency medical providers in it.

15 And I still don't know what the role of PEMA is.

16 And to me, because you've got inherent conflicts

17 between the one who has to bill it, the one who has to pay

18 it, the one who has to approve it, and the one who has to

19 get the money. And what is it that you're getting the

20 money for?

21 And the part that I still think we should have,

22 especially in light of the fact that we're going to need a

23 new backbone and because we had the problems because

24 everybody went out and bought their own stuff and we had to

25 reimburse it, when you look at the last 10 years, we've 28

1 gone from like $191 million total cost to $291 million in

2 cost, and that’s a fairly large slope of increase. So why

3 shouldn’t this bill, if w e ’re going to deal with the

4 funding that w e ’re going to authorize the county to get

5 more reimbursement, why shouldn’t we be making PEMA or

6 somebody else the person who says in your four counties you

7 really should have a combined system, or in your four

8 counties you should use this provider? And I don’t see

9 your proposal doing that. And how do we address that?

10 MR. HILL: Those are all good questions. Let me

11 approach it in a couple of different ways. First, in terms

12 of the role of PEMA, from the draft that was in front of

13 the Committee in February to the draft that we have now,

14 we’ve recognize that concern. There has been a shift in

15 final authority in a number of respects from the 911 Board

16 over to PEMA.

17 The element that we envision for PEMA is the

18 statewide planning and coordination. The 911 Board,

19 because it represents the diverse interests that you

20 mentioned, obviously not all of them but the heart of that,

21 provides the advice, the technical expertise to be able to

22 do that in a logical way. Plus, w e ’ve referenced

23 throughout the bill current national standards. And it

24 says specifically that we can’t fund systems that do not

25 meet those standards. So we have clearly established that 29

1 as a target.

2 Now, whether that is a matter of locally elected

3 officials making that decision or the State making that

4 decision, we think that should be local because that’s

5 ultimately who built the system and that’s ultimately where

6 the service is delivered, but in a consultative role with a

7 statewide coordination. And that’s the balance that we are

8 trying to strike in the legislation.

9 REPRESENTATIVE BARBIN: I guess just as a final

10 follow-up, we had this same problem with hospitals. We had

11 something called Certificates of Need. Well, we threw out

12 the Certificates of Need, and as soon as we threw out those

13 Certificates of Need that said do we really need to have

14 three MRIs in a city with a 20,000 population, everybody

15 decided they needed an MRI. And the role of the Department

16 of Health up to that point was to say, no, you’ve got

17 20,000 people in your community. You don’t need three

18 MRIs; you need one.

19 MR. HILL: Right.

20 REPRESENTATIVE BARBIN: And since your testimony

21 is we need the funding because we know this next-generation

22 backbone is going to be necessary, which is going to carry

23 a picture of people Skyping us with emergency calls and

24 whatever, since that’s true, doesn’t it make much more

25 sense to say let’s get everybody involved, let’s pick out a 30

1 number that provides most of the money that we need at the

2 county levels, and then let’s have a State person who is

3 working with this board to say here’s what we’ll pay for

4 but you’re not going to be on your own, Cambria County or

5 Allegheny County, to decide what backbone you’re going to

6 pay?

7 MR. HILL: Right. Well, a couple points. First,

8 what we do locally is not in a vacuum. And again, I return

9 to the point that we’re working toward a national standard.

10 We are developing a State plan against which the county

11 plan is compared, and so there are going to be some of

12 those checks and balances in place.

13 But I think you raise another very good point and

14 something that Pennsylvania needs to point to with some

15 pride, and that’s a fact that in most of the other States,

16 it is a fragmented system and so you have a lot of local

17 jurisdictions that for whatever reason want to retain their

18 own individual piece of the pie and run it their own way.

19 Pennsylvania from the outset developed a model that was

20 centralized and, okay, it’s centralized in the county but

21 it’s still much more centralized than our responder systems

22 are. And in fact that trend continues.

23 Several years ago, Allegheny County took on

24 dispatch for the City of Pittsburgh so that was one less

25 layer. Last year, Dauphin County took on dispatch for the 31

1 City of Harrisburg and Cumberland County took on dispatch

2 for the Borough of Carlisle. So that’s the trend that we

3 started in 1990 and that’s what we’re continuing. So we’re

4 trying to work on those efficiencies and trying to work

5 toward that unitary system but still be responsive to local

6 needs and conditions.

7 REPRESENTATIVE BARBIN: And thank you. And I

8 appreciate it. It’s a balancing and we’re working through

9 the process. The thing that it all comes back to is if

10 you’re the guy who’s asking for the money, you shouldn’t be

11 deciding what it is we’re paying for. That’s just my

12 opinion.

13 MR. HILL: One other point I ’d like to make, too.

14 When you talked about the rate being set in statute and

15 being set on a statewide level, if there were a way

16 practically to do that at the county level for the

17 subscriber fee, we would probably do that. But there are

18 billing issues; there are equity issues that I mentioned in

19 the testimony. A core urban area is going to be able to

20 generate better money than a less urban county and so it

21 needs to be done on a statewide basis and then apportioned

22 based on local needs and circumstances. And that’s again

23 that balance w e ’re trying to create.

24 REPRESENTATIVE BARBIN: Thank you.

25 MR. HILL: Thank you. 32

1 MAJORITY CHAIRMAN BARRAR: Thank you,

2 Representative.

3 We’ve been joined by Representative Tobash and

4 Representative Hackett is just walking in. Are you going

5 to sit up with us, Joe? We have room for you up here.

6 For a question, Representative Jozwiak.

7 REPRESENTATIVE JOZWIAK: Hi, Mr. Hill. I have a

8 pretty simple question. Do the municipalities and the

9 counties pay the county any money for these services?

10 MR. HILL: There are a couple counties where

11 there is a municipal payment but it’s nominal and it’s

12 historic in its -- it has some basis in the statute but not

13 a clear and distinct authorization.

14 REPRESENTATIVE JOZWIAK: Is that a local county

15 rule when you say that only some counties pay this?

16 MR. HILL: It just is simply how it evolved from

17 1990 when we assumed responsibility for the system.

18 REPRESENTATIVE JOZWIAK: I know in my district

19 there’s counties that are paying the county and they keep

20 complaining that the costs keep going up and they’re

21 looking to get out from under some of the pressure. The

22 county, I don’t know if they assess them or they’re

23 required to pay it but they’re concerned about the

24 continued cost to the municipality as well.

25 MR. HILL: Right. Understood. 33

1 REPRESENTATIVE JOZWIAK: Thank you. Thank you,

2 Mr. Chairman.

3 MAJORITY CHAIRMAN BARRAR: I will tell you when

4 we gave the municipalities the right to take that emergency

5 service tax from $10 to $52, they found a way very, very

6 quickly to make sure everybody in their municipality got a

7 tax bill and it wasn’t an issue as far as finding a way to

8 tax people. So I would disagree with you strongly that if

9 we give the counties the authority to find a way to tax

10 people for 911 that they won’t be able to come up with a

11 solution for that.

12 Representative Schweyer.

13 REPRESENTATIVE SCHWEYER: Thank you,

14 Mr. Chairman.

15 And honestly, congratulations to you and Chairman

16 Sainato and Mr. Hill. This is significant work. I may be

17 a freshman but I did work for the Legislature for 11 years

18 and I know a dense and difficult bill when I see one and

19 this is certainly one of them.

20 My concern and my challenge with this actually is

21 going to run counter to what has been talked about a little

22 bit. It’s not necessarily the cost. I think we need to

23 fund 911 systems. But I represent the City of Allentown

24 and the City of Allentown, City of Bethlehem are two of the

25 holdouts of municipal control over our own 911 systems. 34

1 And part of the reason why is both Allentown and Bethlehem,

2 in addition to traditional dispatch and communications with

3 our emergency services, they also monitor a very robust

4 camera network. The City of Allentown has something like

5 150 cameras that are watching key intersections and helping

6 to dispatch and direct our vehicles.

7 I'm wondering how many counties have you seen

8 that have adopted -- you mentioned Dauphin and Harrisburg

9 perhaps -- have adopted not only the dispatch but also

10 taken on those responsibilities and those roles.

11 MR. HILL: There's other panels that will be in

12 front of the Committee later that know the technology for

13 video capacity. I don't know.

14 REPRESENTATIVE SCHWEYER: Yes, not only do we

15 have the technology but our dispatchers actually are the

16 ones who are monitoring those cameras -­

17 MR. HILL: Right.

18 REPRESENTATIVE SCHWEYER: — not our police

19 officers. As we know, cops are a whole lot more expensive

20 for municipalities than the 911 dispatchers are and it

21 makes it very difficult. It would be an added cost for

22 Lehigh County, for example.

23 In addition, Bethlehem has multiple counties.

24 MR. HILL: Right.

25 REPRESENTATIVE SCHWEYER: Bethlehem is split 35

1 between the two. So in this particular instance would they

2 pick one? If there was some sort of forced consolidation,

3 would they pick one? Would 2/3 of the city be represented

4 by Northampton County and 1/3 by Lehigh County, like it is

5 with everything else, which is ridiculous, but that’s

6 neither here nor there. We have no kind of conversation

7 for that particular mechanism, aside from this notion of

8 regionalization.

9 MR. HILL: In our draft it is purely a voluntary

10 regionalization and it would be up to local circumstances

11 to figure out how best to do that.

12 REPRESENTATIVE SCHWEYER: Okay. Duly noted.

13 How many county systems or regional systems -- I

14 know we have counties as small as 11 and 15 to 20,000 in

15 terms of population -- but what are the smallest regional

16 911 systems that we have in terms of population that they

17 serve?

18 MR. HILL: Yes, well, total size I don’t know. I

19 would guess probably the smallest out of the group might be

20 Elk and Cameron.

21 REPRESENTATIVE SCHWEYER: Okay.

22 MR. HILL: Cameron is about 5,000 population.

23 Elk, you know, not huge -­

24 REPRESENTATIVE SCHWEYER: So between the two of

25 them -- 36

1 MR. HILL: — so it’s --

2 REPRESENTATIVE SCHWEYER: — 20,000, 25,000?

3 MR. HILL: Relatively small but also covering a

4 pretty broad geographic area.

5 REPRESENTATIVE SCHWEYER: Yes. And so when I

6 compare that to Allentown and Bethlehem when we talk about

7 consolidation, Allentown has a population of about 120,000

8 people, Bethlehem about 85,000 give or take, so it is fair

9 to say that even though they aren’t "regional" systems,

10 they cover a much larger number of folks.

11 MR. HILL: Yes.

12 REPRESENTATIVE SCHWEYER: And so you’re sort of

13 seeing where I’m coming from with this. It’s not that I

14 have any objection to funding our 911 systems. I know some

15 of my colleagues will have concerns about the cost and I

16 respect that very much and I do respect the notion of

17 consolidation. In fact, Allentown, Bethlehem, and

18 Northampton Counties are working towards some of those

19 back-office things that you’d mentioned, understanding that

20 there are efficiencies of scale and those sorts of things.

21 But ultimately from my perspective Allentown and

22 Bethlehem have seen dramatic reductions in crime over the

23 last 10 years, and a large part of that is because of the

24 incredible work that our 911 professionals have done, not

25 only dispatching, our public servants, but monitoring those 37

1 cameras and some of those other things. And frankly,

2 anything that would risk that progress would be of ultimate

3 concern to me. And so as I continue to tear through this

4 lengthy and dense piece of legislation, I’m going to

5 continue to point out parts where I think we should be

6 supporting those two municipalities that are doing an

7 incredible job for public safety.

8 MR. HILL: Thank you. And I appreciate that.

9 REPRESENTATIVE SCHWEYER: Thank you,

10 Mr. Chairman.

11 MR. HILL: And I appreciate your comments on

12 video as well. To be clear, the video that w e ’re talking

13 about in our testimony isn’t static street video. We’re

14 talking about the ability for an individual -­

15 REPRESENTATIVE SCHWEYER: Live stream,

16 FaceTime -­

17 MR. HILL: Live stream -­

18 REPRESENTATIVE SCHWEYER: — those sorts of

19 things.

20 MR. HILL: -- here’s my camera, there’s the

21 incident.

22 REPRESENTATIVE SCHWEYER: Right. Thank you, sir.

23 MAJORITY CHAIRMAN BARRAR: Thank you,

24 Representative.

25 Representative Kortz. 38

1 REPRESENTATIVE KORTZ: Thank you, Mr. Chairman.

2 Thank you, Mr. Hill for your testimony.

3 Sir, I clearly understand we need to make a

4 modification and help to improve the funding for 911. That

5 being said, from Allegheny County you’re proposing a $1

6 increase. That’s a 100 percent tax increase on all my

7 residents, constituents. I’ve been given some information

8 that if we broaden the base, which is what you want to do;

9 you want to capture other technologies. But if we

10 broadened it to broadband, we would pick up an extra $134

11 million if we only went to the $1.25 level. So if we get

12 that extra $134 million, that puts us $30 million over of

13 what you need.

14 MR. HILL: Right.

15 REPRESENTATIVE KORTZ: Why are we not broadening

16 the base and considering a smaller tax increase of 25

17 percent?

18 MR. HILL: That’s an excellent point and that

19 actually is something that we’ve reviewed. PEMA developed

20 a proposal along those lines last March. There are a

21 couple hurdles that we would have to cross to do that. The

22 first is we anticipate resistance from the industry to

23 getting something done. And the difficulty there is, given

24 enough time, I think we could negotiate past that, but last

25 year and now again this year we’re looking at a three- to 39

1 four-month window before an expiration of a major component

2 of the fee. And so the educational effort and the

3 negotiating effort we’re not certain could be accomplished

4 in that period of time.

5 And so in the alternative, our proposal does a

6 four-year sunset and with a requirement that the PEMA and

7 the 911 Board do a study in the first two years to present

8 to you to talk about whether this is the best system using

9 the subscriber fee. Very specifically, we are pointed in

10 the direction of a broadband-based percentage fee because

11 you’re absolutely correct. It makes sense not only on a

12 fiscal basis because there are people whose bills would go

13 down. A household rate of $1 could go down to 90 cents.

14 But at the same time, there are a number of practical

15 issues to be dealt with on how it’s levied and how it’s

16 collected.

17 It does provide other advantages, too. If you

18 look at how our communication system is headed, we’re going

19 away from copper. We’re heading to broadband backbone for

20 almost all of it. The video that we talked about, if you

21 have a home security system, your camera images are stored

22 on the cloud. That’s a broadband-based activity. How it

23 would get to our PSAPs would largely be the same way. And

24 so, yes, we do think broadband has that close nexus and it

25 makes all the sense in the world to head in that direction, 40

1 and had we time to do so, that’s what w e ’d be doing.

2 REPRESENTATIVE KORTZ: So you’re saying there’s a

3 four-month gap to get to that point?

4 MR. HILL: We have a June 30th deadline for

5 expiration of the wireless fee, yes.

6 REPRESENTATIVE KORTZ: Okay.

7 MR. HILL: So we need something on the Governor’s

8 desk.

9 REPRESENTATIVE KORTZ: Thank you, sir.

10 MR. HILL: Thank you.

11 REPRESENTATIVE KORTZ: Thank you, Mr. Chairman.

12 MAJORITY CHAIRMAN BARRAR: Are there any other

13 questions from Members?

14 Doug, I want to thank you for being here today,

15 taking time out of your busy schedule -­

16 MR. HILL: Sure.

17 MAJORITY CHAIRMAN BARRAR: — and great seeing

18 you. Thank you.

19 MR. HILL: W e ’ll be talking.

20 MAJORITY CHAIRMAN BARRAR: Our next testifier is

21 Mr. Rick Flinn, Director of the Pennsylvania Emergency

22 Management Agency.

23 Mr. Flinn, it’s a pleasure to have you here.

24 MR. FLINN: Thank you, sir.

25 MAJORITY CHAIRMAN BARRAR: And thank you for 41

1 taking time to be with us. You can -­

2 MR. FLINN: I've asked my Chief Deputy, if it's

3 okay, to be with me since he's been here through this the

4 last three or four years and I've been dealing with this

5 for two months. But I -­

6 MAJORITY CHAIRMAN BARRAR: He's a very familiar

7 face -­

8 MR. FLINN: Yes.

9 MAJORITY CHAIRMAN BARRAR: — and we've talked to

10 him many, many times so -­

11 MR. FLINN: Yes —

12 MAJORITY CHAIRMAN BARRAR: — it's good to have

13 him here.

14 MR. FULL: Mr. Chairman.

15 MR. FLINN: -- and certainly been involved with

16 the Director of 911 in Allegheny County and others, so he's

17 been -- tremendous experience there.

18 And I just wanted to let you know it looks like

19 we got through the freezing pipe issue that we've been

20 dealing with from an emergency management perspective and

21 providing some water out. We're still keeping our fingers

22 on the pulse of the flooding that exists with the ice jams

23 and such and there's some significant issues.

24 And, by the way, we're getting another little

25 winter event tomorrow night around two to four inches here 42

1 so just -­

2 MAJORITY CHAIRMAN BARRAR: Did you stop it?

3 MR. FLINN: I do what I can, sir. I really wish

4 I could have that authority.

5 Thank you again. I sincerely appreciate the

6 opportunity to be here today. And I’m not going to read,

7 as Doug had not done, the entire testimony because I know

8 you have a lot to go through. There’s been certainly a

9 tremendous amount of work.

10 And so again, Chairman Barrar, Chairman Sainato,

11 and Members of the Committee, I really sincerely appreciate

12 the opportunity to be here. The rewrite we got last

13 Thursday so we have a little bit of an issue that we didn’t

14 get a chance to really comprehensively review it, but we

15 focused in on some key points and that’s really what we’re

16 going to do if you don’t mind today. So if I could ask you

17 to turn to page 3 of my testimony.

18 I think the emphasis here, and at least talked

19 about it, but we all agree that statewide interconnectivity

20 is essential to integrate next-generation technology across

21 the Commonwealth. This bill apportions part of the 911 for

22 that statewide interconnectivity. But the language needs

23 to be sharpened a little bit to make sure that the State is

24 taking the lead to establish this system. And again, I

25 think it goes back to what Representative Barbin had 43

1 indicated, that if we don’t have that lead per se, there

2 could be a danger that we could have disparate systems

3 throughout the Commonwealth itself.

4 And again, it could be different generations,

5 next-generation solutions, different capabilities,

6 increased cost, so one of the key points that w e ’re asking

7 for is taking a look at how that language is written

8 relating to who has the lead for the program itself.

9 And then I ’ll look at the next page. When we

10 talk about the authorities, it is important. I think if we

11 have the responsibility, we being PEMA, have the

12 responsibility to develop, implement, plan, and be good

13 fiduciary agents of the taxpayers’ money, we need to have

14 the authority. And right now, the way the current draft

15 is, it’s not real clear I will say. What we need to do is

16 ensure that PEMA’s authorities are not diluted throughout

17 any new legislation.

18 The third issue centers on this phraseology we

19 were using, "chasing technology.” W e ’ve changed it to

20 "catching-up technology." I mean the reality of it is is

21 that there’s no reason in the world for this body to have

22 to continue to come back to address this issue. You’re

23 doing it. There’s been a sunset in the law. Frankly, I

24 don’t think there’s a need for a sunset in the law if we

25 get it right this time. 44

1 And our recommendation is really that we look at

2 ensuring that the legislation covers and in fact is

3 agnostic in relationship to the technology at this point so

4 that we’re able to address those new services, those new

5 technologies that are coming down. I mentioned that in my

6 first testimony last month and I really believe that for

7 this body to be able to be comfortable with a piece of

8 legislation that’s going to provide for the funding that’s

9 going to cover this system but is also going to provide for

10 that no matter how one accesses the 911 system, there’s

11 some fee that goes towards that system itself.

12 And again, I will also say to you that w e ’ve

13 talked about the four-year sunset. I don’t think there’s a

14 need for that if we do this technology agnostic approach

15 and go from there.

16 The fourth issue, and it goes back to the

17 discussion of the Board, and I think it was also pointed

18 out, one of the things I mentioned in the testimony last

19 time was -- and this is personally -- I don’t feel we have

20 a comprehensive public safety communication system in the

21 Commonwealth, "soup to nuts" if you will. The nuts part of

22 it, if you will, in the sense is when that 911 call is

23 received, information is transmitted by highly trained and

24 competent call-takers and dispatchers.

25 That part that is critical is the public safety 45

1 side of it, and if you’re going to have an advisory board,

2 the public safety community needs to be engaged, police,

3 fire, and EMS. I served as fire chief and a paramedic for

4 many years and it was critical that we got that information

5 right. It was information that’s important for us to

6 provide the services to the citizens we serve. Without

7 that very important body or those constituencies involved

8 with advising the lead agency, I think w e ’re missing

9 something. So I wanted to bring that up in relationship to

10 the advisory board.

11 And I will say to you, again, just to reemphasize

12 the structure, I had the opportunity to serve for 24 years

13 as Executive Director -- well, I served for 24 years in the

14 organization but served 12 years as the Executive Director

15 of the Statewide Advisory Council to the Health Department.

16 We had over 100 statewide organizations, physicians,

17 nurses, paramedics, fire service, EMS, hospitals, and then

18 we had a board of directors, a 30-member board of

19 directors. Our role was to advise the Secretary of Health

20 on all aspects of EMS and we developed a comprehensive EMS

21 plan. We worked on comprehensive EMS legislation.

22 And the key is is that by law we’re identified to

23 advise the lead agency that was designated, and that was

24 the Health Department. And I ’ll tell you, the system

25 worked from the perspective that, again, it was a 46

1 recommendation but when you have those stakeholders

2 intimately involved in the process -- the Secretary was

3 obviously very intimately involved and paid attention to

4 those recommendations -- I think that’s how the board

5 should be structured. I think the recommendation is there

6 needs to be a defined lead agency and I think the advisory

7 board has to have the ability to be representative of all

8 the stakeholders.

9 But the key is it’s an advisory board, not a

10 regulatory board. I think that anybody put in the position

11 of leading any organization is responsible to ensure that

12 there’s a return investment on every dollar, ensuring that

13 the taxpayers’ money is going to the appropriate services,

14 that you can’t really have I think a board that does that.

15 And frankly, I mean in one sense it’s kind of like running

16 a volunteer fire department. I did that many years. It’s

17 volunteers or representatives that will participate, and

18 being able to have them review every single plan and go

19 through that approval process could be a logistical

20 nightmare.

21 The last thing I wanted to mention on page 5, I

22 talked about that. I ’m sorry. W e ’ll go to -- did you want

23 to say something?

24 We heard from the counties the 911 folks since

25 the beginning of this is the fact that it doesn’t match up 47

1 with the county budget year. That needs to be addressed in

2 the bill. We wholeheartedly support that, that we work on

3 administering the -- instead of having to work and

4 administrate on a State fiscal year, it’s administered on

5 the county calendar year. And that’s important I think

6 because again they’re challenged when they develop their

7 budgets how much they’re going to get and they’re

8 challenged with spending the money, so we really think the

9 current draft legislation does not address that and we

10 really think it should be.

11 Again, I think we’re close if you will in the

12 legislation that’s here. I think there are some key points

13 that need to be addressed. And I refer to the last page.

14 Governor Wolf’s philosophy really is -- he’s very much

15 making a commitment to public safety. He’s shown that in

16 his participation in the events that w e ’ve had so far in

17 the State. H e ’s heavily engaged with many tabletops w e ’ve

18 had with the Cabinet members and I can tell you he’s

19 heavily engaged in this concept of the 911 system.

20 But we need to ensure that we get it right this

21 time and not do a Band-Aid approach to the problem and that

22 you’re not continually coming back and that we in fact make

23 sure that any money spent is well spent for the citizens of

24 Pennsylvania.

25 So I appreciate the opportunity to talk. I 48

1 briefed through this really quickly but I wanted to make

2 sure that there was time for questions but wanted to bring

3 out the key points in the initial review of this draft

4 legislation that we've seen.

5 MAJORITY CHAIRMAN BARRAR: Thank you.

6 Questions from the Members?

7 Representative Tallman.

8 Oh, and we were also joined by -- Representative

9 Marshall is here.

10 REPRESENTATIVE TALLMAN: Thank you, Mr. Chairman.

11 I have submitted, by the way, a funding formula

12 to staff that I developed amongst counties that I've had

13 conversation with, and the overwhelming theme -- matter of

14 fact, I was told this Monday night -- they're very

15 concerned in south-central Pennsylvania, any State funding

16 formula, we are on the short end of the stick. I don't

17 care where you go with a State funding formula; we do not

18 make out.

19 They're very concerned with, number one, the

20 advisory nature of the board and then PEMA, a Harrisburg

21 agency, having say over how those funds are distributed.

22 We have four areas in my funding formula that need to be

23 weighted and I'm going to give those weighted numbers to

24 staff here probably by the end of the week.

25 But what do we do to allay the fears of the 49

1 counties in south-central Pennsylvania that money that we

2 send to Harrisburg doesn’t come back? What are you going

3 to do to allay that?

4 MR. FLINN: Well, I think in fact I agree with

5 you; the legislation needs to be clear that the system has

6 to be based fair and equitable and it goes back to

7 obviously how busy is that county in relationship to

8 receiving 911 calls. What are the populations, special

9 events that they have to address? You’re absolutely right.

10 The system has to be fair, it has to be equitable, but it

11 also has to have a standard that also takes care of those

12 very less populated areas in the Commonwealth that they

13 have that base standard.

14 So, sir, I ’m with you on the percent. There has

15 to be -- and living in the south-central area, I can tell

16 you there has to be -- and working the 911 system in

17 Cumberland County as a fire chief, there has to be that

18 ability to ensure that the funds are there to deal with

19 their workload, especially -- and this was mentioned in -­

20 Cumberland County dispatches another county. But being

21 able to go ahead and have the resources that they need is

22 critical and I think the legislation has to define those

23 parameters that any director or any State agency, whoever

24 will be in charge of this, or even the board would have to

25 follow. So there’s no disagreement there, sir. 50

1 MAJORITY CHAIRMAN BARRAR: Director, are you of

2 the opinion then that -- I’m trying to figure out with your

3 last statement -- I think one of our concerns while

4 drafting this legislation has been that some people feel

5 that the fee should cover 100 percent of the cost and the

6 county should have no skin in the game. Or should the

7 counties have skin in the game? Should they be paying part

8 of the 911 cost to the county? I know I ’m of the belief

9 that I truly believe that the counties need to have some

10 skin in the game here, and that’s the fee that w e ’ve looked

11 at.

12 MR. FLINN: Yes, and I ’ll be honest with you

13 because again we received this last Thursday. We were

14 working with the Governor’s office to get the specifics on

15 the financial side, but what I can tell you is is that I

16 think the legislative intent is to obviously ensure that

17 there’s a minimum standard across the Commonwealth of

18 Pennsylvania, and I think this bill and the way we’ve

19 proposed how to fund it should cover those minimum

20 standards and work towards the goal of next gen and work

21 towards those other issues.

22 If a county chooses to be able to go above and

23 beyond that minimum standard, maybe there should be some

24 skin in the game, as you say, sir. I can’t give you a

25 specific answer right at this point on that but I do know 51

1 if anything it needs to cover that basic standard across

2 the Commonwealth, and I personally think the system should

3 be able to fund that.

4 MAJORITY CHAIRMAN BARRAR: We’ve wrestled with

5 many figures here based on population, based on call volume

6 coming in -­

7 MR. FLINN: Yes.

8 MAJORITY CHAIRMAN BARRAR: — to the counties,

9 and no matter what formula we come up with, there’s

10 somebody unhappy.

11 MR. FLINN: Yes.

12 MAJORITY CHAIRMAN BARRAR: There’s no way except

13 to just basically say that the State is going to be

14 responsible for 100 percent is the only way you’re going to

15 make everybody happy, and then even then I think you’re

16 going to make us unhappy here because we’re going to spend

17 more money than we can afford. So the dilemma here is on a

18 fair funding formula, we all want it to be fair -­

19 MR. FLINN: Yes.

20 MAJORITY CHAIRMAN BARRAR: — but if

21 Representative Tallman or you have the secret answer to

22 that that will make everybody happy, I ’m more than willing

23 to listen to it.

24 MR. FLINN: And you’re absolutely right. It’s a

25 challenge. I think that we define what the standard is and 52

1 what we’re shooting for from the goal and then determine

2 what those costs are.

3 The reality of it is is that -- and just simply

4 an example, between Allegheny County and the City of

5 Philadelphia, they’re looking at 43 percent of all 911

6 calls across the Commonwealth. They currently are getting

7 26 percent of the money. Is that enough? And I think that

8 those kind of issues need to be looked at as to where are

9 they, what do we need them to have, and in fact what’s the

10 work associated with making sure that every citizen in

11 their respective areas have that same level of service that

12 they would have in any other county in the State?

13 MAJORITY CHAIRMAN BARRAR: Do you support the

14 concept of giving the counties then the option to come up

15 with their own type of a 911 fee like an emergency service

16 tax that we had to the municipalities to give our counties

17 the same type thing to either tax a partial living dwelling

18 or a per capita tax?

19 MR. FLINN: I wish I could comment on that, sir.

20 I don’t know. I don’t really know at this point. And

21 again, we just haven’t had that dialogue -­

22 MAJORITY CHAIRMAN BARRAR: Okay.

23 MR. FLINN: -- at the Governor’s office. I

24 really can’t give you an answer on that. I look through

25 emergency management across the country, including 911 53

1 emergency management, and a lot of emergency managers and I

2 just went to the national conference in D.C. this past

3 week, a lot of the emergency managers don’t deal with 911.

4 A lot of them do. But the reality of it is is that you’re

5 looking at a whole community approach dealing with

6 emergency management, the private sector, obviously the

7 public sector, and emergency management can’t be

8 government-centric alone. We have to use that whole

9 community.

10 So, in fact, in answer to your question, there

11 may be also other sources of income or other sources w e ’re

12 looking at, and when I worked at FEMA, national level,

13 philanthropists getting heavily involved with disaster

14 recovery responses.

15 So in answer to your question, there may be other

16 resources, capabilities out there. I don’t have a specific

17 answer in relationship to the county being able to do that

18 right at this point.

19 MAJORITY CHAIRMAN BARRAR: Okay. Thank you.

20 Representative Kortz.

21 REPRESENTATIVE KORTZ: Thank you, Mr. Chairman.

22 Director Flinn, thank you for your testimony.

23 MR. FLINN: Thank you, sir.

24 REPRESENTATIVE KORTZ: Chief Full, always a

25 pleasure to see you, sir. 54

1 Sir, on page 3 of your testimony, you have

2 mentioned about a percentage-based fee. Do you have any

3 percentage in mind what we should be looking at?

4 MR. FLINN: Again, I think what we -- yes, we

5 outlined -- and I’ll ask, Chief Full, you’ve been engaged

6 with this conversation specifically because this has been

7 proposed last year, I believe, if you could talk a little

8 bit about that.

9 MR. FULL: In regards to the percentage-based

10 fee, in regards to increasing the amount of money available

11 for 911, it’s referred to again, expanding the base. In

12 regards to picking up all these technologies out there

13 literally that there exists right now that you can utilize

14 to call 911. You can call 911 from your smart TV in your

15 home right now. There is no money that is coming in to the

16 911 operations to offset the cost. There’s many Wi-Fi

17 devices that are out there right now that aren’t connected

18 to cellular networks.

19 So with that said, if it’s not connected to an

20 actual cellular company, they can call 911 through a Wi-Fi

21 where they walk into a business or walk into another place

22 and they’re able to access an application right now and

23 make a phone call. And so with that, the trend of

24 everything is IP, broadband technology, along those lines,

25 and if we don’t do it right now, all indications that we 55

1 have, even from things that we're hearing from the

2 industry, everything is going in that direction anyway.

3 And right now the only thing that we can track

4 are the individual cell phones that somebody has or an

5 individual telephone that's in somebody's home or business,

6 along those lines, because those are absolute. But there

7 are so many other different things out there that can

8 access the system and services that they should be paying

9 because the 911 center, the men and women right now as we

10 sit here even today, they're in those centers right now

11 taking calls from other services that they really not

12 realizing any money to come in and offset the cost of their

13 operation. So the percentage fee would be in regards to a

14 device but also on the service level that gives you access

15 into that communications network, whether it be through a

16 cable system, whether it be through a business application,

17 something along those lines.

18 So, again, the number of devices, the way that

19 it's collected right now is antiquated, and by expanding

20 the base, the cost would come down. And literally it was

21 already said here right now -- and we use the analogy even

22 the person that's at home right now, that individual that's

23 got the landline phone, the old landline, the old Ma Bell

24 copper phone, the rotary dial, believe it or not, there's

25 probably still some people that have that. My grandmother 56

1 and grandfathers, they’ll always have that. They are

2 paying whatever rate that they have.

3 But at the same time, as we increase the rates on

4 those folks, there’s all these other folks that have high

5 tech equipment and so forth that literally we could be

6 getting a fair amount of money from those devices, those

7 services, and we could drop that individual’s rate down

8 from paying $1, $1.50 by expanding the base, bringing money

9 up here. And we have done the calculations and everything

10 that we’ve seen, it’s not absolute, that we could literally

11 drop the rates on a number of different people by that

12 move.

13 REPRESENTATIVE KORTZ: But you are proposing a

14 percentage-based fee? You’re looking at a percentage so it

15 would hinge on the fact, if we were to expand the base -­

16 MR. FLINN: Correct.

17 REPRESENTATIVE KORTZ: — that percentage would

18 hinge on that?

19 MR. FLINN: That’s correct. And one of the key

20 points I think the proposed bill did include a cost-of-

21 living adjustment, that there would be no cost-of-living

22 adjustment necessary if you have a percentage-based fee

23 because it automatically increases with price inflation.

24 So you wouldn’t have to have necessarily that cost-of-

25 living adjustment in there. 57

1 REPRESENTATIVE KORTZ: Okay. Thank you.

2 Thank you, Mr. Chairman.

3 MAJORITY CHAIRMAN BARRAR: So assume for a minute

4 that the City of Annapolis is in Pennsylvania. Annapolis

5 has a free Wi-Fi service to their residents. So if I’m

6 living in Annapolis, how would I be billed as a percent of

7 my Wi-Fi? I can connect every device into their free Wi­

8 Fi. How would I pay it?

9 MR. FULL: You wouldn’t pay. Right now, you’re

10 not paying if you had that in Pennsylvania, if it’s in

11 Pennsylvania.

12 MAJORITY CHAIRMAN BARRAR: So if I was at an

13 internet cafe, I log on to their Wi-Fi, are they billed

14 then for my -- I mean I just think right now -­

15 MR. FULL: The charge would go -­

16 MAJORITY CHAIRMAN BARRAR: — I don’t think we’re

17 ready to start billing for that technology. Plus, I think

18 we’re going to be involved in lawsuits until at least we

19 see something coming from the FCC.

20 Have any other States used this type of billing

21 process to fund 911?

22 MR. FULL: Our research has shown, yes, that

23 there are some States that have already started this move

24 in billing for this service, yes, sir. And we can provide

25 that to you -- 58

1 MAJORITY CHAIRMAN BARRAR: Can you?

2 MR. FULL: -- if you’d like.

3 MAJORITY CHAIRMAN BARRAR: Please.

4 MR. FULL: That’s fine.

5 MAJORITY CHAIRMAN BARRAR: Okay. Representative

6 Tobash.

7 REPRESENTATIVE TOBASH: Thank you, Mr. Chairman.

8 Thank you, gentlemen, for your testimony. Happy

9 to see you here again and appreciate the fact that you’re

10 getting up to speed so quickly on this piece of legislation

11 that we absolutely have to get done.

12 I’m still just not completely comfortable with

13 the addition of this advisory board into the equation. Let

14 me just talk about that for a brief moment. How do you

15 envision the goal, the role, the mission statement of the

16 advisory board, and more importantly, as part of your

17 discussion, how is that going, that additional level of

18 bureaucracy? Do you think it’s going to keep us light on

19 our feet and save money within the system?

20 MR. FLINN: Yes, and actually it’s a good point

21 in the sense of the draft that you have in front of you.

22 It kind of gives them, if you will, that bureaucratic step

23 in my opinion.

24 But I will say that every government needs the

25 subject matter experts, the individuals that are not only 59

1 involved day to day with, in this particular case,

2 receiving the information and transmitting the information

3 and dealing with the technologies, as well as the

4 stakeholders that are in fact out there providing that

5 service. We don’t have all the answers. I would not want

6 to have the sole authority without having some kind of

7 forum, consensus-based, consensus, 51 percent, a consensus-

8 based system that is in place that they can make

9 recommendations to the lead agency for it.

10 So I think there’s value. And I’ll tell you

11 there’s value in it from the perspective because not only

12 are those individuals experts and do what they do every day

13 but they’re also keeping up on the latest if you will of

14 how to improve their services. And I bring it back to my

15 experience. H. Arnold Muller was the Secretary of Health

16 quite a few years ago. He was an emergency physician. He

17 saw that the Health Department at the time just didn’t

18 really grasp -- didn’t have the resources or the personnel

19 to understand the comprehensive emergency medical services

20 system. He’s the one that started that advisory body

21 that’s defined in law. And by the way, maybe the law

22 should specifically say what that mission is, what the

23 purpose is, the comprehensive review of the statewide plan

24 and being engaged with the system. And that expertise is

25 needed on the organization. 60

1 But my point is I think, sir, I think it needs to

2 be written so in fact it doesn’t imply it’s a bureaucratic

3 step but it serves as a think tank, that tiger team

4 approach to dealing with challenges and problems, and it

5 doesn’t make any difference who’s sitting in the seat but

6 the agency would need to be able to implement the system.

7 MAJORITY CHAIRMAN BARRAR: Are there any other

8 Members with questions? Anyone?

9 Director, thank you for your testimony today. We

10 appreciate you taking the time to be with us.

11 MR. FLINN: Thank you very much, sir. I

12 appreciate it.

13 MAJORITY CHAIRMAN BARRAR: Our next panel,

14 Mr. Scott Krater, President, APCO, Director, Schuylkill

15 County 911; Brian Melcer, President, Pennsylvania NENA,

16 Director of Public Safety with Lawrence County; Mr. Mike

17 McGrady, Chairman of the Joint PA APCO/PA NENA Legislative

18 Committee; Mr. Tim Baldwin, past President of PA NENA,

19 Deputy Director, Lancaster County Communications; Mr. John

20 Grappy, Director of Erie County Department of Public

21 Safety, Western Representative for PA NENA; and Mr. John

22 Geib, Eastern Area Representative, PA NENA.

23 It’s a pleasure to have you all with us. Do we

24 have everybody that I mentioned? I think I mentioned five

25 people. There’s four. 61

1 MR. MELCER: Yes.

2 MAJORITY CHAIRMAN BARRAR: Okay.

3 MR. MELCER: They’re all here.

4 MAJORITY CHAIRMAN BARRAR: Okay. Do we need an

5 extra seat up there for you? Okay. Oh, you guys are back

6 there? Okay. Good. Good. I hope all five of you aren’t

7 reading testimony, all six of you. So -­

8 MR. KRATER: It’s just 15 minutes each.

9 MAJORITY CHAIRMAN BARRAR: Good.

10 MR. MELCER: No. Chairman Barrar, Chairman

11 Sainato, thank you for having us back and we really

12 appreciate having this additional hearing. You’re really

13 showing your commitment to trying to fix this problem.

14 And I also am not going to read my testimony, nor

15 are all five of us going to read it. In general what w e ’re

16 going to focus on is the operational and technical side and

17 be here to answer your questions that some of you may have

18 had.

19 I’ve jotted down some notes from the previous

20 testimonies that may answer some of the questions that you

21 have, but I do want to say in general we support the joint

22 legislative effort this been brought to you in working with

23 CCAP, our organization APCO, and also the other

24 stakeholders. But w e ’re going to focus on the

25 technological side of it but we will be happy to answer any 62

1 funding questions that maybe we might have some expertise

2 in.

3 Just a couple of things before I go into the key

4 parts of our testimony, we do feel that our 911 system is

5 one of the best in the Nation, and that's a credit to

6 everybody that's in this room, you all, us at the lowly

7 level that are operating the system, PEMA, APCO, CCAP, and

8 all the stakeholders that have been involved.

9 We had a pretty good history I think when it

10 comes to doing this, and it might be rough as we're going

11 through this process and we'll have disagreements, but

12 ultimately, you all passed Act 78 so we got 911

13 legislation, and relatively quickly, we were able to spread

14 enhanced 911, which was the cat's meow, as they say, across

15 the Commonwealth, a little faster than some other States

16 have done. In fact, there are still some areas around the

17 country that still have basic 911, which is no location

18 information, so that's something we should be proud of.

19 In the '90s you probably remember a show "Rescue

20 911,” and "Rescue 911" really put a spotlight on what it is

21 that a dispatcher or telecommunicator does. There were

22 some incidents, some in Pennsylvania, that really put a

23 spotlight on errors in the 911 system. And we worked

24 collaboratively, all of us, including the counties and PEMA

25 to institute quality assurance and training standards. So 63

1 we do have a standards-based system, some better than other

2 States. So that’s something to be proud of as well.

3 And obviously after wireless 911 legislation was

4 passed back in 2005 we all did a good job then I think in

5 quickly deploying wireless services across the

6 Commonwealth, and there are some areas still in the

7 Commonwealth where we need to work better with the carriers

8 to open up the access to that service. But PEMA, the

9 counties, the Legislature, our two organizations, and the

10 professionals in the carrier level and the technology level

11 helped us to deploy that across the State. So we feel we

12 have a good history and w e ’re just at one of those

13 crossroads right now and we need to figure out how we can

14 get it right this time, and I ’m comfortable that we will.

15 Just before I go on to the next point, a couple

16 points, there was some talk about technology-agnostic

17 funding. And I think in theory everybody on this panel

18 supports looking at that, but w e ’re also being realistic in

19 knowing the time frame that we have, and there’s a lot of

20 questions still to be answered, like Chairman Barrar’s

21 question about what happens in that scenario. There’s an

22 answer to it but I think together, like we did in the past,

23 we need to work together to answer those questions. And

24 that’s why we do support a placeholder in the legislation

25 to charge that advisory board and PEMA and the counties 64

1 collaboratively of looking at the data around the Nation,

2 try to come up with some revenue models and see if we can

3 replace a per-subscriber fee to some sort of a percentage

4 fee. But once again, w e ’re being realistic.

5 W e ’re also the ones that are in the funding

6 crisis and w e ’re the ones that have to go stand in front of

7 our Commissioners or our executives and say every year that

8 amount of money, the General Fund taxes needs to cover is

9 quite more.

10 I ’ve heard the question about skin in the game,

11 and we understand that. We understand that the counties -­

12 we do have skin in the game. I can use as an example in

13 our county w e ’re finally going about building a new PSAP.

14 And out of that project about 10 percent of it is actually

15 going to be funded by the 911 fee. So bricks and mortar

16 are not allowable.

17 There are several other fees that are not

18 allowable that I think we ultimately envision there has to

19 be so that there’s no areas where w e ’re misusing the fund.

20 There are other States that didn’t get it right that are

21 now fighting where there’s other entities raiding the 911

22 fund and it’s not going to 911 purposes. So we certainly

23 don’t want to see that happen in Pennsylvania and I think

24 the measures that this proposed legislation, as well as

25 some that we could institute in the future, would help keep 65

1 that from happening.

2 We talked about consolidation and I ’ve shared I

3 think at one of the hearings I think when we were in

4 Allegheny County a year-and-a-half or so ago it was asked

5 of us, and this has been in several of our testimonies, but

6 we support what Mr. Hill said, that we do have a relatively

7 consolidated system. W e ’ve taken some data -- there’s a

8 chart on page 2 of our testimony -- that shows the number

9 of citizens that are served per PSAP. And if you see,

10 w e ’re in good shape when it comes to that. There are

11 several States along our borders that have tremendous

12 amount of PSAPs that are serving up to 33. I think the

13 smallest one is West Virginia. Our figures show that

14 they’re serving 33,000 people per PSAP. Ohio next to me

15 and Chairman Sainato in Lawrence County, they have 318

16 PSAPs. So when they talk about consolidation and

17 regionalization of technology, it’s not county to county.

18 It’s within the county, fire department to police

19 department or so on and so forth.

20 So, now, is there room for additional work on

21 that? Yes. We do believe that there could be work but we

22 strongly feel that it shouldn’t be a forced consolidation

23 but it should be done through two means: number one, to

24 incentivize these regionalization-of-technology projects.

25 There’s been some discussion about PEMA’s role and the 66

1 authorities that PEMA would have in the system. We feel

2 that’s an area where PEMA could make a big impact is by

3 setting that incentivization. Maybe there’s more

4 percentage of funding going to counties that are

5 regionalizing projects or that are looking at

6 consolidations, and we feel that that would be a way to

7 increase the amount of skin in the game by looking at it.

8 But we don’t think coming from the State level and forcing

9 a consolidation on a local operation is the right -- it’s

10 kind of a knee-jerk reaction in our eyes and we don’t feel

11 that it’s going to do a good job of consolidating. We

12 think that we can write it so that we can do it properly,

13 get it right like we have previously. And there are

14 several counties, as Mr. Hill mentioned, that have

15 consolidated their systems.

16 I think the other area that’s operationally a lot

17 of times overlooked when it comes to consolidation is the

18 value that the PSAP serves to the emergency management

19 operation during natural disasters. In my county I oversee

20 the 911 center but I ’m also the emergency management

21 director, and I just couldn’t see during a declared

22 disaster or even an undeclared disaster in our county

23 working in that type of operation. Now, some counties may

24 be small enough where a regional PSAP would work for them,

25 but our COM center is so ingrained into our emergency 67

1 operations plan that we would see a difference in the way

2 that we respond to the day-to-day emergencies.

3 So those are things that need to be looked at but

4 they need to be looked at in a collaborative approach and

5 looking at the funding but also looking at the operational

6 deficiencies that it may or may not create if there was a

7 consolidation. So we support counties who want to do that

8 if it works for them and we support measures to incentivize

9 them.

10 Now, we have also talked a lot about the

11 regionalization projects, and once again, we feel that by

12 incentivizing those projects will give the best impact.

13 Now, w e ’ve acknowledged that even those regional projects

14 -- we’ve mentioned the WestCORE project in our region that

15 I come from where w e ’ve been able to save close to $5

16 million just on the 911 phone equipment and a lot in the

17 operation costs as well.

18 Another one that hasn’t been mentioned as much

19 but Mertz will mention it when he comes up from

20 Westmoreland County is the ICORRS project, which is a

21 shared radio switch where six counties are sharing that

22 radio switch. That saved over $6 million; and then the

23 Northern Tier 911 project where you have 10 counties that

24 were also able to save 2.1 in capital and ongoing costs.

25 Those are great but they do represent a small percentage if 68

1 you look at the actual revenues collected.

2 But we feel that we can increase the impact that

3 they do by incentivizing those projects and having it

4 almost a no-brainer. That was how we did it. It was a no-

5 brainer. We looked at it and said buy our own switch or

6 share the switch, which also has operational benefits with

7 our regional partners. It was a no-brainer. So I think by

8 adding that incentive language, which this draft

9 legislation does do, and making that the competitive

10 portion of it, that PEMA would set the standard for what is

11 a true regionalization would do a good job of increasing

12 that. So w e ’re hearing of other projects that are starting

13 in the Commonwealth and we hope that some type of language

14 can assist us in doing that.

15 Just a couple things about next generation 911,

16 all those historical milestones that I went through, there

17 was always like a carrot at the end of the stick. We were

18 trying to get 911. We were trying to be able to locate

19 wireless callers. And we see that this is also something

20 where we will have some operational skin in the game to

21 ensure next generation 911 because, as some have mentioned,

22 we need to get it right this time. So that will be a good

23 way to do that.

24 In our case, the only way to get next-gen-capable

25 CPE in Region 13 wasn’t for us to do it individually; it 69

1 was to do it as a shared approach and that's quite frankly

2 how we did it. And I think that that same problem exists

3 in the other counties. In fact, you may hear from some

4 other counties that -- we'll go over -- another part that

5 we all overlook is we talk about the projects that we're

6 trying to do or that the county has to foot the bill for

7 more than we maybe have in the past, but what about the

8 projects we can't do to bring that service on? So I hope

9 to hear that as well.

10 A little discussion about the ESInet because all

11 of these shared regionalized projects or even

12 consolidations are impossible to do without a good network

13 backbone to make it happen. Our organizations support the

14 concept that PEMA introduced a few years ago, which is a

15 "Network of Networks." And we do acknowledge that there

16 has to be some sort of a State oversight of the

17 interconnection of those networks and there has to be

18 standards in order for those networks to be considered in

19 ESInet. There is a standard. NENA has an i3 standard that

20 is pretty much known nationwide for those type of networks.

21 So we do support that being a standards-based

22 system and the State handling the interconnect of the

23 regional networks that are being built up. And that's one

24 of the reasons we support it that way is there are networks

25 that have already been built up that those regions are 70

1 going to have some consternation without a lot of studying

2 as to whether they would turn that network over to an

3 entity. So the "network of networks” approach gives PEMA

4 the authority to oversee the standards in the network but

5 it still allows the regions to do what works for them as

6 well. It’s not down to the county level, as may have been

7 mentioned.

8 So we support that, and once again, by

9 incentivizing it, number one, that will allow us to get the

10 next-generation data into our 911 systems. There’s other

11 technologies out there that counties are just starting to

12 scratch the surface of, sharing recording systems, radio

13 systems, CAD systems, GIS personnel. Some counties are

14 starting to talk about sharing GIS personnel instead of

15 everybody having their own.

16 So there’s another example that we mentioned,

17 PSP. They pay for a connection for CLEAN and NCIC into

18 every county and probably more in some cases. I ’m sure

19 that by looking at that network of networks, there could be

20 some good cost savings even to the Commonwealth by going

21 down to a regional level, one in Region 13, one in the

22 northwest. So we would welcome those discussions. And we

23 agree that PEMA at the State level would be the best one to

24 kind of broker those discussions because that’s what

25 emergency management is all about, collaboration. 71

1 Another area that we support and we would like to

2 see the opportunity to work some language in, if you look

3 on the last page of our testimony, one area that we would

4 like to see included is operationally the multi-line

5 telephone and PBX systems. Back in December 2013 there’s a

6 pretty well-known case, a woman named Kari Hunt was stabbed

7 to death in a Texas hotel room. When her young daughter

8 who was trained assumedly by either a fire Department, a

9 police department, or a telecommunicator went to dial 911,

10 there was a delay and she wasn’t able to get to 911 because

11 it required them to dial an extra 9 to get out into the

12 system before they dialed 911.

13 In November of 2014 there was an incident in

14 California where a U.S. postal worker had an injury and

15 ultimately perished from it, and he wasn’t able to dial 911

16 directly because they had an internal policy that it has to

17 go to their postal police. And there was a significant

18 delay in getting them there.

19 We would like to see some language included in

20 this legislation that would support three concepts when it

21 comes to -- it’s happening in other States. There’s a

22 Kari’s Law. Several other States have done it and they’re

23 looking at it, to require the PBX systems to only dial 911,

24 not an external line, and that those PBX systems, it should

25 come right to the 911 center, not to a front desk or an 72

1 office. And it should also tell the premise, the PBX owner

2 that a 911 call has been placed and it would give us the

3 location of the actual emergency, not just a general

4 location.

5 We feel that with some working as a group as we

6 have in the past that that could be done for little or no

7 cost to the PBX owners by looking at possibly a grandfather

8 of existing systems so that there’s not an undue burden but

9 at least we get it in there so that we can make that

10 improvement to the system.

11 And the last thing I ’d like to talk about is

12 what’s really the heartbeat of our system, and that’s the

13 telecommunicators. And a lot of these testimonies that

14 I’ve been privy to go to -- we don’t always talk about

15 that. Number one, we do support strong quality assurance

16 standards. There’s nobody that gets more embarrassed when

17 911 is on the news than 911 directors and

18 telecommunicators. So we want to continue to improve them

19 collaboratively with PEMA and the advisory board.

20 But we have to remember that the role of what

21 some may have called a dispatcher in the years and might

22 have been somebody that was put on desk duty because either

23 screwed up in the field or they were injured, it’s not that

24 anymore. They have to be professionals, they have to

25 understand the technology, and they have to be trained to 73

1 be able to deal with all of the emergencies that we see in

2 the Commonwealth.

3 And it needs to be a career, and we all know that

4 a big part of our operating budget is personnel, but we

5 needed to be able to compensate those telecommunicators for

6 the professionals that they are, not based off of those

7 standards where they were somebody that was just plucked

8 off the street or somebody’s sister or somebody’s brother

9 that needed a job and we just throw them into a 911 center.

10 That’s not what it is.

11 So like a firefighter, police officer, paramedic,

12 it costs us a lot of money to outfit a 911 dispatcher.

13 They don’t have turnout gear, they don’t have a gun and a

14 bulletproof vest, but their training is expensive. It

15 takes a long time to do on-the-job training and then over

16 the years to build up that experience. And a lot of our

17 members are reporting high turnover rates, number one,

18 because of the stress; and number two, because we can’t

19 compensate them like the professionals that we feel that

20 they are. So that’s something that we would also like to

21 have the opportunity to do.

22 So two other issues, just to finish up, the issue

23 of the board and the makeup of the board, I think I address

24 what we feel that PEMA’s role should be and I think w e ’re

25 acknowledging that PEMA -- I personally can’t imagine a 74

1 world where PEMA doesn’t have some oversight over the 911

2 system, so that’s not the approach w e ’re taking. We like

3 the concept of a technical advisory board, and that’s what

4 is in the proposed legislation.

5 We are not opposed to the inclusion of police,

6 fire, and EMS on it but we see the statewide board to be

7 more of a technical one. We feel that the police, fire,

8 and EMS should be represented on advisory boards at the

9 local level where those decisions happen that really

10 pertain to their actual dispatch procedures.

11 And as we drafted this legislation jointly, there

12 was some consideration being taken not to make an unwieldy

13 board that didn’t serve any purpose at all. So that was

14 the reason why you might wonder why they’re not on there,

15 but we do support that they should have input. We feel

16 that the State one is more of a technological and

17 technology board.

18 And then lastly, and I would have to verify this,

19 but we fully support the calendar year format. I can tell

20 you as a 911 director that has different milestones each

21 year, I ’ve got to put on my calendar when come State report

22 is due, it would be nice -- and then my budget is due at a

23 totally different time. I know that we would support that,

24 and I was under the impression that that was in the draft

25 legislation. 75

1 So with that, I hope I addressed your questions,

2 and we have a lot more time here if you have other

3 questions for us.

4 MAJORITY CHAIRMAN BARRAR: Great. Any of the

5 other members want to -­

6 MR. KRATER: Just quickly talk about the

7 consolidation and the regionalization. We do believe that

8 regionalization of technology will lead to voluntary

9 consolidation as you can prove that you can use the back

10 room equipment and share that equipment that w e ’ll need

11 there.

12 Also, I think counties do need to have some skin

13 in the game. And let’s just say that we do have that 85

14 percent of the money that goes back to the PSAPs. Then you

15 have the 15 percent. So by incentivizing that 15 percent,

16 if you want to go out and buy your own 911 switch, that’s

17 fine. You’re only getting 50 percent of the money. But if

18 you go in with two or three other counties, it can be

19 funded at the 100 percent. And I think that’ll do two

20 things. One is it will ensure that continuation of your

21 operations because then someone else can take your calls in

22 the event of a failure, but more importantly, when the

23 County Commissioners know they can pay $250,000 or they can

24 pay $100,000, I think we know that they’ll pick the choice

25 that’s $100,000. So that’s a good way to incentivize 76

1 counties to reduce costs and overall bring the cost of 911

2 down across the Commonwealth.

3 MAJORITY CHAIRMAN BARRAR: Representative Hackett

4 for questions.

5 REPRESENTATIVE HACKETT: Thank you, Chairman.

6 And thank you to all the NENA reps here today

7 that came to testify.

8 Just two side notes, one that back in 1983 I was

9 one of those dispatchers and those call-takers. We were

10 called a couple other names, too, but -­

11 MR. MELCER: Yes, they still get called those

12 sometimes.

13 REPRESENTATIVE HACKETT: But more importantly, I

14 was in law enforcement for 26 years thereafter, and I'd

15 like to call them lifesavers. They saved my life on a

16 number of times, so thank you -­

17 MR. MELCER: Thank you.

18 REPRESENTATIVE HACKETT: — for their service.

19 Another side note was that you discussed about

20 when some companies can call 911 and all, and I think the

21 Members should know this. Through some of my research that

22 we did with the Safe Schools Committee is that we found out

23 that some teachers in our own schools can't call 911, and

24 so that ought to be pretty scary to those people in

25 Pennsylvania that have kids in schools that the teacher 77

1 will be reprimanded or disciplined if they call 911 direct

2 for an emergency. So let’s keep that in mind as we move

3 forward.

4 So w e ’re continuing to draft this legislation,

5 and I ’d like to get NENA’s opinion on would it be possible

6 for the 911 centers to dispatch the Pennsylvania State

7 Police throughout the Commonwealth, and if so, would it be

8 cost-prohibitive and if that’s something you can shed some

9 light on, I ’d appreciate it. Thank you.

10 MR. MELCER: Technologically, yes, it would be

11 possible. I think there’s like a consolidation that I

12 mentioned earlier. There would be a lot of questions that

13 would need to be answered and it would take a collaboration

14 between the Pennsylvania State Police and the 911 centers,

15 and there are several models around the country where that

16 does happen, either a State dispatcher that’s co-located in

17 a 911 center or a 911 center directly dispatches them. We

18 all have access to the State radio system currently, so I

19 think that, yes, it could be possible.

20 Let me just -- a little history. I ’ve been

21 involved in consolidations in the ’90s when cities would

22 close down their police desks and there’s a lot of services

23 that perhaps the PCOs provide for the State Police that

24 would need to be addressed, and that would be something

25 that PSP would have to address that may not be necessarily 78

1 dispatch-related or that presence at a barracks, and that’s

2 where we would have to work together and I think we would

3 have to answer a lot of questions. But technologically,

4 yes.

5 REPRESENTATIVE HACKETT: Follow-up?

6 MAJORITY CHAIRMAN BARRAR: Yes, please.

7 REPRESENTATIVE HACKETT: Thank you, sir. And,

8 Chairman, just a follow-up question to that. I think the

9 Members and probably the citizens should know of

10 Pennsylvania, too. Like presently right now if you live in

11 an area that’s Pennsylvania State Police patrolled and

12 protected, you call 911, that call goes into that 911

13 center. That center then has to relay that call or through

14 a direct connect button or something. That call then goes

15 over to someone, an employee at that barracks and they then

16 dispatch it. I know there’s been incidents across the

17 Commonwealth where that delay has caused injury to those

18 calling 911. So it’s something that I’m pretty hot on. I

19 know the Chairman’s pretty hot on this and I ’d like to see

20 us address that.

21 I just keep getting some pushback where they say

22 it would be totally cost-prohibitive for the State to do

23 that when it comes to, I guess, machinery and the radios.

24 I just kind of wanted to hear NENA’s opinion on that, and

25 is it so far out of reach or is it something as simple as 79

1 switching a switch?

2 MR. MELCER: I ’m sorry. Go ahead. Go ahead,

3 Tim.

4 MR. BALDWIN: I just wanted to touch on that

5 because you made me think of something. In our case when

6 the CDC closed in south-central PA and Lancaster County got

7 the barracks -- communications came back to the barracks,

8 we made it clear to the State Police that we would not

9 transfer wireless 911 calls to them because we need the

10 ability to control those calls. We have to re-bid callers

11 for location information, et cetera, and if those wireless

12 911 calls would be transferred to them completely, that

13 ability is not readily there. And if somebody is stuck in

14 a trunk going down the interstate and they’re fortunate

15 enough to have their wireless phone, we need the ability to

16 ping those phones. There’s a procedure that all the 911

17 centers follow to do that. So that’s an important thing.

18 So in that case -- I didn’t mean to interrupt, Brian,

19 but -­

20 MR. MELCER: That’s okay, Tim. That’s a good

21 point.

22 MR. BALDWIN: -- the call would be conferenced in

23 as a third party but we wouldn’t relinquish control.

24 MR. MELCER: And I fully agree with what Tim said

25 because there is some data that is lost when we make that 80

1 transfer, whether it’s a landline or a cellular call and we

2 get into texting and next gen, that’s going to be a

3 different story.

4 So to answer your question, simply I ’m going to

5 take the middle of the road. It’s not a just "flipping the

6 switch” thing but it’s not out of the realm of possibility.

7 It would take a collaborative effort but it could be done.

8 REPRESENTATIVE HACKETT: Thank you.

9 MAJORITY CHAIRMAN BARRAR: And would it be cost-

10 prohibitive?

11 MR. MELCER: I don’t know anything -­

12 MAJORITY CHAIRMAN BARRAR: Okay.

13 MR. MELCER: -- about the Commonwealth’s budget

14 for that operation. Technologically, from what we see it

15 would not be cost-prohibitive. Obviously the counties

16 would have an additional call volume so that would have to

17 be addressed somehow with additional personnel, and that’s

18 where I said there’s different models that would have to be

19 studied.

20 MAJORITY CHAIRMAN BARRAR: But I think these —

21 you’re already getting the call.

22 MR. BALDWIN: Well, the difference would be -­

23 MR. MELCER: The radio traffic.

24 MR. BALDWIN: -- dispatch. It’d be -- yes.

25 MR. MELCER: Yes. Not call volume, you’re 81

1 correct. I don’t know how many direct calls they get or

2 anything. That’s why it would have to be looked at. I

3 apologize. I misspoke there.

4 MAJORITY CHAIRMAN BARRAR: Representative

5 Hackett, what would the savings amount to for the State

6 Police?

7 REPRESENTATIVE HACKETT: I’m at the wrong

8 committee meeting for that one. I just left

9 Appropriations.

10 MAJORITY CHAIRMAN BARRAR: I don’t know if that

11 was discussed. Okay.

12 REPRESENTATIVE HACKETT: I don’t have those

13 numbers but -­

14 MAJORITY CHAIRMAN BARRAR: I just thought maybe

15 you had a number.

16 REPRESENTATIVE HACKETT: Yes. We’ve been working

17 on those numbers to see what the savings would be, and the

18 State Police wouldn't lose that personnel person. They

19 still have to run their barracks -­

20 MAJORITY CHAIRMAN BARRAR: Right.

21 REPRESENTATIVE HACKETT: — and there are

22 computer entry things that they still have to do. It’s

23 just I ’m more concerned about the safety aspect of

24 dispatching and transferring that call when even local

25 police are driving by the State Police incident. And w e ’ve 82

1 had that happen I think somewhere out in Pittsburgh where a

2 trooper was fatally killed. So I just want to keep an eye

3 on it. Thank you.

4 MAJORITY CHAIRMAN BARRAR: Thank you.

5 MR. MELCER: I would welcome the chance to sit

6 down and talk about that, so I think it’s a good discussion

7 to have. Thank you.

8 MAJORITY CHAIRMAN BARRAR: Representative Barbin.

9 REPRESENTATIVE BARBIN: Thank you. Thank you,

10 Mr. Chairman, and thank you, gentlemen, for your testimony

11 today.

12 You pointed out something to me in your testimony

13 that I just wanted to follow up on, and when I looked at

14 your -- w e ’re looking at right now the idea of being

15 prepared for the next generation, as well as making up some

16 of the difference that counties have been paying for for

17 their own systems. When I looked in this chart that you

18 provided on page 2 of your testimony, it shows that

19 Maryland leads the chart in how many people they can

20 effectively handle per PSAP.

21 So what I ’m wondering is have you looked at that?

22 Since w e ’re talking about like coming up with a plan for

23 funding that will allow for next generation and w e ’ve got

24 to be good stewards of the money, have you looked at how

25 they’re doing it and whether or not they’re as effective as 83

1 we are in the process that we're using?

2 MR. MELCER: I can answer that, no, I personally

3 have not. I don't know if anybody on NENA has done that

4 but we would be willing to do that for you.

5 REPRESENTATIVE BARBIN: Well, why I'm saying that

6 is we're doing a lot better than Ohio on a per-citizen,

7 per-PSAP basis but we're not doing better than Maryland.

8 MR. MELCER: Right.

9 REPRESENTATIVE BARBIN: And we should know why.

10 And we should know if there are weaknesses in Maryland, we

11 should know what those weaknesses are.

12 MR. MELCER: I would say that it could be

13 twofold. And without studying it further, I'm just -­

14 admittedly there probably is a population factor.

15 Obviously you get around the beltway and the population

16 numbers are tremendous as opposed to West Virginia, which

17 is on the other end of the scale which has less population.

18 So I'm sure that that plays a part into it. And as you

19 mentioned, how are they doing? Are they happy with the

20 number of PSAPs they have?

21 And I did admit in our testimony that there is

22 still work to be done on that approach at a minimum at the

23 technology level but possibly on the consolidation level.

24 But we feel that it's something that the counties should

25 have an incentive to do. 84

1 REPRESENTATIVE BARBIN: Balance is always going

2 to be the hard part -­

3 MR. MELCER: Yes.

4 REPRESENTATIVE BARBIN: — just like figuring out

5 the fee. But what I would notice about this is that

6 Maryland isn’t geographically much different than

7 Pennsylvania. They’ve got a large metropolitan area

8 between Baltimore and Washington, and then they have the

9 west, which is basically the same as -- our Appalachian

10 chain is pretty much the same as theirs that goes through

11 Cumberland and points to the west of that. So whatever

12 they’re doing we ought to take a look at because what’s

13 being proposed, at least from the County Commissioner

14 level, is a $2 fee increase.

15 And all of us want the best possible system for

16 our first responders. I do. But I think that if at the

17 same time we can say, all right, w e ’ve got to do this new

18 backbone, it requires us to at least look at Maryland and

19 see why they have fewer PSAPs per 250,000 people. So if

20 you could provide that to the -­

21 MR. MELCER: W e ’ll get more data on that.

22 REPRESENTATIVE BARBIN: — Committee, that would

23 help I think.

24 MR. MELCER: Very good. Thank you.

25 REPRESENTATIVE BARBIN: And the other thing I 85

1 think that we should -- I think it came out in your

2 testimony, especially with Representative Hackett’s

3 question, if this is about the next generation, not just

4 about the fact that the counties have carried a fair amount

5 of skin in the game up to this point and they want to have

6 that change because it’s maybe too much for the county to

7 absorb, why aren’t we looking at having a State Policeman

8 on this board since they have a potential use of this

9 system? So if w e ’re building it for the counties, why

10 aren’t we also building it for the State Police and why

11 aren’t we also including the emergency management in it?

12 MR. MELCER: Well, I would say -- and going back

13 to the discussion about the technology side, that we

14 envision that as more of a technical board. However, I

15 think and in previous testimony with the PSP on the board

16 doesn’t accurately represent most counties as far as the

17 coverage of law enforcement, so you would ultimately have

18 to open it up to those four sectors, the PSP, law

19 enforcement, EMS, and then fire, and we were trying to keep

20 that board as more of a technical board and not make it an

21 unwieldy-size board.

22 But if you were going to include PSP on the

23 board, I think that local law enforcement somehow would

24 also need to sit on that board, because in my county they

25 cover the more rural areas but certainly the call volume is 86

1 more around the urban area. And they have more of a say -­

2 the urban area has -­

3 REPRESENTATIVE BARBIN: Even on the technical

4 level, this is one of the reasons w e ’re having so much

5 discussion about consolidation. The guys that are on the

6 local level, our volunteer firemen or our local policemen,

7 they know what the problems were when we just handed over

8 all the money with Homeland Security grants because their

9 phone wasn’t working. They couldn't get through to the

10 emergency management center at the county because we had

11 bought competing sort of systems.

12 And that’s kind of why I think you have to have

13 those local providers on the board because they give you a

14 technical that’s practical. This piece of equipment didn’t

15 work or this piece of equipment has problems when it’s

16 snowing out or this piece of equipment -- those people have

17 to be on the board for technical reasons, at least that’s

18 what they tell me in my firefighter class.

19 MR. MELCER: If that board truly is not just a

20 technology board, then I would agree, and if that’s the

21 route that the Legislature wants to go with it, like I

22 said, it would make sense to have the local law enforcement

23 on there as well.

24 MAJORITY CHAIRMAN BARRAR: I have it here. The

25 State Police is on the board. They’re a nonvoting member. 87

1 But if you go to the draft that we have in front of us,

2 it’s page 16, line 22 and 23. But there isn’t -­

3 REPRESENTATIVE BARBIN: But there’s no reason —

4 MAJORITY CHAIRMAN BARRAR: — an advisor —

5 REPRESENTATIVE BARBIN: — to be on the board if

6 you can’t vote, because if you can’t -­

7 MAJORITY CHAIRMAN BARRAR: Sure.

8 REPRESENTATIVE BARBIN: You can make an argument,

9 just like this Committee, but if I can’t vote, I can’t

10 change what those regulations are.

11 MAJORITY CHAIRMAN BARRAR: Well, but that’s why

12 the four chairmen are on there and the Governor has

13 appointees on there, and if he wants to appoint a head of

14 the State Police, he can appoint him.

15 REPRESENTATIVE BARBIN: I just think it should be

16 more inclusive.

17 MR. BALDWIN: I think it would be important to

18 add on what Brian said as far as the board being technical,

19 which is where we came from. Just a little bit of a

20 history lesson, when we did the wireless legislation 10 or

21 so years ago, there was a large advisory board put

22 together, and it met twice I think. And one of the reasons

23 that brought it down was the amount of time spent at the

24 meetings trying to educate folks on the technology that the

25 911 folks use in the backroom and on and on it went. And 88

1 it just fell apart from there.

2 MAJORITY CHAIRMAN BARRAR: Who else has

3 questions?

4 Representative Tallman, be quick. Be quick.

5 We ’re cutting into your lunchtime so be quick.

6 REPRESENTATIVE TALLMAN: All right. Never mind.

7 Kind of going to follow up with what

8 Representative Hackett had to say and it’s kind of been a

9 burr under my saddle. The State Police pushed back

10 significantly in some other hearings. I ’m also a former

11 911 person. There’s probably 15, 20 seconds lost in

12 transferring the call and probably 20 to 30 seconds lost of

13 that dispatcher’s time in transferring the call, so there’s

14 a significant life safety issue involved. The kickback

15 that I keep getting from the State Police, I ’ve dispatched

16 my local police, no problems. They say you aren’t properly

17 trained. You don’t have the proper training to dispatch a

18 State Police to a car accident, to a shooting.

19 MR. MELCER: Well, I would debate that.

20 REPRESENTATIVE TALLMAN: Okay. Thank you. You

21 answered my question.

22 MR. MELCER: I mean there’s clear quality

23 assurance standards and I ’d be happy to show you at least

24 in Lawrence County our training program.

25 MAJORITY CHAIRMAN BARRAR: Okay. Great. 89

1 Gentlemen, thank you for your testimony.

2 Were there any other questions? I didn’t check

3 to see. Okay.

4 Thank you for your testimony today. We

5 appreciate you -­

6 MR. MELCER: Thank you.

7 MAJORITY CHAIRMAN BARRAR: — taking the time to

8 be here.

9 We are going to break for a half-an-hour, come

10 back here at one o ’clock if you want to break for lunch,

11 and w e ’ll see you at one o ’clock. And you’re all required

12 to come back. Don’t disappear.

13

14 (A break was taken.)

15

16 MAJORITY CHAIRMAN BARRAR: Okay. This public

17 hearing will come to order.

18 And our next panelists are Mr. Frank Buzydlowski,

19 Director, State Government Relations with Verizon; Steve

20 Samara, President, Pennsylvania Telephone Association;

21 Mr. David Kerr, Regional Vice President of External Affairs

22 for AT&T.

23 Welcome, gentlemen, and you can begin your

24 testimony when you’re ready.

25 MR. BUZYDLOWSKI: Thank you, Mr. Chairman. 90

1 If you were following with my written testimony,

2 in the interest of time I'm going to start on page 2 and

3 I'll paraphrase a lot of it to move us through quickly.

4 As you know, Chairman Barrar and Chairman

5 Sainato, we have been working with Members and staff of

6 this Committee for several years now, as well as public

7 safety representatives and the rest of the

8 telecommunications industry to help craft the replacement

9 legislation that is appropriate for today's world, and I

10 believe that the draft has been disseminated to your

11 Members and others.

12 That legislative draft contains provisions that

13 are designed to promote efficiency in the administration of

14 PSAPs, positioning them to take full advantage of emerging

15 technologies such as next-generation 911 by encouraging the

16 regionalization of technology. It also replaces -- and

17 this is important to Verizon and other members of the

18 industry -- the current hodgepodge of different landline,

19 wireless, and VoIP fees with a competitively neutral 911

20 fee that is applied uniformly across all technologies that

21 consumers use to reach 911.

22 When addressing the fee, although we at Verizon

23 believe that 911 is an essential government service that

24 should be funded with appropriations from county general

25 fund revenues, for the present we continue to support the 91

1 funding system through the continued imposition of a 911

2 fee on our bills. But that fee must be completely and

3 technologically neutral and fairly imposed on all

4 telecommunication’s end users that have the capability to

5 make an emergency call to 911 PSAP. The current landline-

6 centric funding model no longer makes sense and should be

7 replaced with the uniform, statewide feet on the services

8 customers are using today to call 911.

9 How much should that fee be? We strongly

10 encourage you to set a fee that is sufficient to fund the

11 costs to connect a telecommunications user with a PSAP but

12 to keep at the lowest possible so as to avoid overburdening

13 our customers and your constituents, the taxpayers. To

14 that point it is important to recognize that the decrease

15 in landline 911 fees has not diminished the revenue

16 collected to support 911 systems across this Commonwealth.

17 More than twice as many lines pay the fee today than paid

18 it in 2000 when only landlines were assessed a fee. As you

19 can see from the bar graph -- it should be in the testimony

20 before you -- there were an estimated 9 million landlines

21 in 2000 and over 18 million wireline, wireless, and

22 voiceover internet protocol lines at the end of 2013.

23 So while there has been a cumulative loss of

24 switched landmines of approximately 4.2 million since 2000,

25 that loss has been more than replaced by 911 fees from 92

1 contract and prepaid wireless services, in other words,

2 postpaid where you have a contract or prepaid services, as

3 well as voiceover IP. Total 911 revenues in the

4 Commonwealth increased by more than $65 million between

5 2004 and 2013. And you’ll see that demonstrated

6 graphically on the pie charts.

7 According to data in the two most recent FCC

8 reports to Congress, Pennsylvania’s 911 revenues increased

9 by more than 8-1/2 million between 2012 and 2013 loan. As

10 Pennsylvania and all of the United States has moved from a

11 marketplace with one or two wireline phones per household

12 paying the wireline fee to the respective counties, we now

13 have household with two, three, four, five wireless phones

14 paying the fee. And there has been a significant net

15 increase in 911 revenue because of that.

16 So if you look at the 2004 pie chart, total

17 revenue, 100 percent landline, was 126.6 million, but if

18 you look at the 2013 pie chart, total revenue was 191.8

19 million, a $65.2 million increase; 141,494,000 of that was

20 not landline. In other words, it’s the technologies that

21 were, 10 years ago, newly added to the 911 fee collection

22 regime.

23 So w e ’ve analyzed these numbers and we calculate

24 that a uniform $1.04 fee, and you note it’s actually gone

25 down 2 cents since my last testimony because of the 93

1 increase in wireless and IP services, $1.04 would collect

2 approximately -- it’s actually a little bit more than the

3 same amount of revenue being collected today by the current

4 system. That’s adding landline going to the counties, IP

5 and wireless going to the Commonwealth.

6 So while we agree that some increase in overall

7 revenue would be reasonable to provide additional funds to

8 support efficiency and modernization projects such as

9 regionalization of technology, voluntary PSAP

10 regionalization, and the adoption of next-generation 911,

11 that should not require a large increase in fee. Given the

12 huge number of lines now being assessed, we believe that an

13 increase of 15 to 20 percent over the revenue-neutral

14 amount of $1.04 would provide necessary funding. But as I

15 have indicated to all of you, it’s certainly something that

16 we are flexible on and we certainly want to balance the

17 interest of our customers, your constituents, with the

18 needs of the emergency services community.

19 But when one looks at the amount of revenue that

20 higher fees would drive, we took some hypotheticals and

21 calculated the following: The $1.25 fee across all

22 technologies -- landline, wireless, prepaid, postpaid,

23 internet protocol -- would be a $30 million tax increase on

24 wireless customers; $1.50 would be a $60 million tax

25 increase on wireless customers; a $2 rate would be a 100 94

1 percent tax increase on a subscriber and $120 million of

2 additional taxes paid by wireless customers. And as you

3 can see from the bar graph, at $1 Pennsylvania already has

4 one of the highest monthly wireless fees in the United

5 States. Only West Virginia is at $3 and then it drops down

6 to $1.75 and $1.50 and so forth. But the graph speaks for

7 itself.

8 Also, I should note that telecommunications

9 services in our State are burdened with additional taxes

10 and fees, and I know everybody who ever looks at his or her

11 phone bill sees those annoying fees and taxes at the end of

12 it, and that includes a 5 percent gross receipts tax, which

13 is not imposed in most other States. So you have to look

14 at the cumulative effect with all due respect.

15 In conclusion, Verizon believes that ensuring

16 that all counties, including rural counties, are receiving

17 adequate funding with the uniform fee can and should be

18 accomplished with a fair and reasonable formula that

19 distributes revenues to the PSAPs, ensuring that total

20 funds are used in the most cost-efficient manner possible

21 while providing incentives to move towards next-generation

22 technology across the Commonwealth.

23 I believe my colleague David Kerr wants to

24 address some additional issues.

25 MAJORITY CHAIRMAN BARRAR: Okay. 95

1 MR. KERR: Thank you very much, Chairman Barrar,

2 Chairman Sainato. I appreciate the opportunity to be back

3 before you.

4 I also am not going to restate all of my

5 testimony previously submitted over the last year or two,

6 and I will summarize my page-and-a-half worth of testimony.

7 Certainly while w e ’re open to discussing other

8 approaches that are out there, AT&T can support the vast

9 majority of the components of the draft legislation that’s

10 been developed. W e ’ll continue to monitor a few of the

11 outstanding issues, the fee level, the distribution

12 formula, which we continue to work on.

13 To restate a couple things that Frank has

14 mentioned, our principles were outlined early on in the

15 process and w e ’re pleased that they’ve been included in the

16 legislation. A single point of collection at the State

17 level for the same fee, for the same technology being

18 disbursed directly to the counties is in the legislation.

19 Important to note that the fee is on the service, not on

20 the device. That’s an important note in the legislation.

21 Also, the definition of 911 communication service is

22 defined as a two-way communication or transmission. We

23 also think that’s very important.

24 And I also just want to underscore something that

25 was mentioned previous to lunch that the industry is moving 96

1 very aggressively to new technology, to IP services. Our

2 company is very much involved in that, looking at a couple

3 trials at the FCC. And I know I can speak for Verizon and

4 Steve’s member companies. We all are moving to the new IP

5 technology, as was discussed this morning.

6 To turn your attention to the chart before you

7 titled "Summary of Revenue Estimates -- FY15 Uniform Rate,”

8 this is a chart that was put together by Scott Mackey.

9 Scott’s with KSE Partners. He’s a consultant that does a

10 great deal of tax analysis for the wireless industry. And

11 the industry through TIA commissioned him to do a study of

12 911 fees. He does a lot of work on taxes and fees for us

13 across the country.

14 But what you’re looking at before you is meant to

15 be informative to you as Committee Members. If you go to

16 the bottom of the first page, it says, "Current Law

17 Actuals." These are pulled directly from FY ’13 PEMA

18 report. And what this shows you is how much was generated

19 for each segment of the industry, wireless postpaid, as

20 Frank mentioned as we traditionally think of as contract

21 wireless service; wireless prepaid at about 13-1/2 million;

22 and then the wireline revenue that was generated, a little

23 north of 50 million; and then the VoIP revenue at about

24 25.1 million for a total generated in fiscal year ’13 of

25 191.8 million. 97

1 The current law forecast estimate for fiscal year

2 ’15 is at the top of that page, and that shows you that

3 it’s anticipated -- and I ’m going to talk about the

4 assumptions here in a minute -- about $193.3 million will

5 be generated, as Frank mentioned, about 1.5 million more

6 than the current year. And you can see the breakdown there

7 by postpaid wireless, prepaid wireless, wireline, and VoIP.

8 And what w e ’ve done here in the middle of the

9 chart using some assumptions that are on the second page is

10 to look at -- and I think it’s important to note you can

11 plug any fee there. You see a yellow box that has a fee of

12 $1.04. As Frank mentioned, that is if the decision is made

13 to generate the same amount of revenue now under a new rate

14 versus what’s collected currently. It would be a fee of

15 about $1.04 assessed across all technologies. And you can

16 see there the net change wireless customers in the State,

17 postpaid wireless customers would pay about 4.2 million

18 more. Wireline customers, because obviously the decrease

19 in wirelines, would pay about 5.8 million less.

20 I think it’s important to note you can put any

21 figure you want in that box. You could put $1.50, you

22 could put $2, you could put $10 in there and we can make

23 this spreadsheet available to the Committee and to the

24 staff, but it can show you exactly how much burden would be

25 placed on the different segments of the industry. 98

1 If you turn to page 2, just some of the

2 assumptions here. And again, w e ’re certainly open to other

3 assumptions. And what do they say about assumptions, the

4 first three letters of the word assumption? But certainly

5 what w e ’re using here is FCC wireless lines December

6 2012/2013 with a growth rate of 3 percent to generate that

7 revenue. When you look at the wireline, it estimates the

8 decline of 8 percent. Again, you can plug any figure you

9 want in there if you believe it’s going to be more

10 aggressive or less aggressive. And then the VoIP

11 assumption there is a forecast growth rate of 10 percent.

12 And that’s a little down. Scott anticipates the VoIP

13 growth rate will lessen a little bit. Brian Barno may have

14 some comments on that.

15 So again, you can plug in any numbers you want

16 here. These are assumptions pulled directly from PEMA and

17 FCC reports, and it’s really meant to show you what is

18 currently generated to inform you as policymakers.

19 So I ’ll turn it over to Steve Samara if he has

20 anything to add.

21 MR. SAMARA: I don’t really, not formally anyway.

22 Dave said he had a page-and-a-half of testimony. I have

23 exactly a page-and-a-half less than that.

24 But I ’m here to just to support these guys. The

25 dynamics that they’ve explained about the industry apply to 99

1 the rural telcos in Pennsylvania, just like they do to

2 Verizon and to AT&T. Our concern obviously is where we're

3 headed with the fees and that's not a stop-the-presses

4 statement. You folks all know that. But we've been

5 working in conjunction with these folks and others to try

6 and find a happy medium there.

7 But I'm here on behalf of the rural telcos to

8 answer any questions that Committee Members might have.

9 Thanks.

10 MAJORITY CHAIRMAN BARRAR: Representative

11 Tallman, question?

12 UNIDENTIFIED SPEAKER: [inaudible].

13 MAJORITY CHAIRMAN BARRAR: Oh, no. Oh, I

14 thought -­

15 REPRESENTATIVE TALLMAN: I have one.

16 MAJORITY CHAIRMAN BARRAR: Okay. Go ahead.

17 UNIDENTIFIED SPEAKER: We knew it. We knew it.

18 MAJORITY CHAIRMAN BARRAR: Just keep it to one.

19 Or you can do two.

20 REPRESENTATIVE TALLMAN: The Chairman is very

21 perceptive. Thank you, Mr. Chairman.

22 I've got to get to the correct charts here.

23 MAJORITY CHAIRMAN BARRAR: Yes.

24 REPRESENTATIVE TALLMAN: This chart here, which

25 is the Verizon chart -- I'm going to go to Mr. Hill's 100

1 chart. If I understand this chart correctly, this line

2 here is the revenue current under the three things that we

3 charge for and then the upward line is if we had the county

4 tax into that. So if we take these two charts, revenue

5 doesn’t seem to follow the increase. Can you answer that?

6 Because I think both of you said that revenue is increasing

7 whereas it’s kind of leveled off if not actually decreased.

8 MR. BUZYDLOWSKI: Revenue has increased

9 dramatically. I mean the entire pie is much bigger than it

10 ever was. I think that the fundamental change and the

11 thing that -- I ’ll speak for myself -- I had the hardest

12 time grappling with in the very beginning when we were

13 talking about this legislation is if you go back to the

14 last time that this Committee and this General Assembly

15 revised the law, before that, it was only wireline services

16 whose subscribers paid the 911 fee and all that money went

17 to the 67 counties, to the 69 PSAPs directly.

18 When this Committee and then the Legislature

19 adopted the change to recognize that wireless and then

20 internet telephony was a viable and growing product and

21 service, it was obvious I think to everybody that there was

22 really no good way to take those services, whether it’s a

23 cell phone or internet, and have that money flow directly

24 to the counties.

25 So therefore, the decision was made to have that 101

1 money go to the Commonwealth and then be distributed by

2 PEMA. At the time, if the wireline was way up here and

3 wireless and IP services were just not their infancy but

4 they were still a long way from what they are today, that

5 was looked at in at least some quarters as found money,

6 additional money, and PEMA would utilize it for grants.

7 Nobody anticipated that the system would be turned on its

8 head and that the overwhelming majority of revenues would

9 be coming from wireless and internet. And certainly we

10 didn’t anticipate it, at least not going back 10 years,

11 that people would drop their landlines altogether.

12 So our landlines are down over 50 percent. And I

13 know Brian Barno would testify after us, even when you add

14 in cable telephony, if you just take all the landlines,

15 there’s still half or less than half of what there used to

16 be. Ergo, the counties are getting less than half of the

17 revenues they used to. But when I say the pie is bigger,

18 all that additional money, the additional money which is

19 coming from wireless and internet IP services, is going to

20 PEMA, not to counties, and then it’s of course going

21 through grants to the counties. So that is really the crux

22 of the dilemma that’s before this Committee and how to

23 address that, and I think you are addressing it properly by

24 throwing out the old template and doing a technology-

25 neutral approach so that every technology pays the same and 102

1 it all goes to the Commonwealth.

2 And then of course the issue, which is not a

3 Verizon or an industry is how you then distribute the

4 money, the fundamental point being, though, there is much

5 more money. I ’m not saying that it’s enough money. I

6 think that point’s been made very well by the PSAPs and the

7 counties, but our point is that the distribution of the

8 money has fundamentally changed over the last 10 years.

9 REPRESENTATIVE TALLMAN: Thank you.

10 MAJORITY CHAIRMAN BARRAR: Representative Kortz.

11 REPRESENTATIVE KORTZ: Thank you, Mr. Chairman.

12 Thank you, gentlemen, for your testimony.

13 Mr. Buzydlowski, on page 2 of your testimony the

14 one sentence here jumps out at me. It says "but the fee

15 must be competitively and technologically neutral and

16 fairly imposed on all telecommunication end users that have

17 the capability to make an emergency 911 call to the PSAP."

18 Earlier today, we heard testimony from Mr. Hill and I had

19 asked him the question, can we consider adding broadband,

20 the internet in that equation and broaden the base? And

21 your comments on that, sir? What do you think of that

22 idea?

23 MR. BUZYDLOWSKI: We at Verizon oppose taxing the

24 internet. First of all, understand what that means. It

25 means you’re really taxing internet access. But I should 103

1 say, though, up front that we're not opposed to applying

2 the 911 fee to services that use the internet to call 911.

3 Any service that is using -- if you're using IP technology,

4 you can call 911, make a call to the PSAP, it should be

5 subject to the fee. So just be clear about that.

6 And your draft bill was written so that whatever

7 the FCC designates as a service or device that is capable

8 of having interactive two-way communications with a PSAP,

9 which is necessary for 911 call or communication of any

10 sort, once FCC says that that's valid, then they should be

11 subject to the 911 fee. So I want to be clear about that.

12 But the proposal that has been made and I figured

13 what has been dormant for a while; I'm not sure if it's

14 really being proposed again, but just for the record, it's

15 an onerous tax and it's a real tax increase to middle-class

16 families and to small business. And the reason I say that

17 is because you're going to have some people who are paying,

18 say, $1.50 in one of the rural counties today for a

19 landline. If you take away the fee and you tax internet

20 access, you have people who are paying zero. You will have

21 people paying nothing.

22 But then if you look at a family of five, and

23 I'll just use my friend and colleague Dave Kerr as an

24 example. He and his wife and all of his kids have, I'm

25 sure, AT&T smartphones and maybe even has FiOS, but if not, 104

1 he certainly has one of Brian Barno’s companies’ services.

2 So my point is is that if you have a family that has

3 smartphones, they have data plans. That’s what you’re

4 talking about taxing if you tax internet access.

5 And I ’ll just use FiOS as an example but it could

6 be Comcast. If somebody has high-speed internet service

7 and I ’ll use real -- my cousin has high-speed internet

8 service. He watches TV over Netflix and Hulu. That’s a

9 lot of data. That’s a lot of usage. So I don’t know what

10 speed. He might be at 75 megabits but you’re taxing that.

11 So the more that the family has in the way of smartphones,

12 watching movies, watching the Disney movie over Netflix or

13 what have you, the higher their tax bill is going to go.

14 And so we think it’s fundamentally not good public policy

15 and also would be unfair to the taxpayers.

16 REPRESENTATIVE KORTZ: If I can have one follow-

17 up, Mr. Chairman, Frank, question for you. Where does

18 Verizon stand? I mean the bill was talking about a $2

19 increase. Where are you at on this? $1.25, $1.50, $1.75?

20 Where would you like to see this end up?

21 MR. BUZYDLOWSKI: I have testified several times

22 supporting $1.25 but I will say that we recognize that you

23 set policy. We believe you’ll find the number that is

24 appropriate. We think that certainly we could be flexible

25 in the amount. I ’m not going to give you a maximum. But I 105

1 think one of the ideas that’s been vetted and I think the

2 Chairman mentioned it earlier is maybe a combination of

3 raising the fee but also empowering the counties to impose

4 an emergency services tax so that they would have the

5 ability if they do have shortfalls to get additional money

6 to supplement it so it’s not all hitting on the phone bill

7 of the consumer.

8 REPRESENTATIVE KORTZ: I appreciate that and I

9 agree. I think that’s an excellent idea that the Chairman

10 proposed, giving the county some skin in the game by

11 allowing them to put a tax on it. As we heard earlier from

12 Director Flinn, he mentioned that 46 percent of all of the

13 calls come from Allegheny County and Philadelphia, yet they

14 receive I believe 26 percent of the funding. Giving them

15 that ability would help to close that gap.

16 I think that’s an excellent idea, Mr. Chairman.

17 Thank you.

18 MAJORITY CHAIRMAN BARRAR: I can count on you to

19 do that amendment? I was just kidding. Hey, w e ’re working

20 on it. If you got ideas how we can do it, we are kicking

21 it around, but again, we have to come up with a way for the

22 counties to do it that doesn’t cost them a lot in

23 administrative cost.

24 So anyone else have questions for -- Chairman

25 Sainato. 106

1 MINORITY CHAIRMAN SAINATO: Thank you, Chairman

2 Barrar.

3 Frank, just following up a little bit on what

4 Representative Kortz said, and I just want to get this

5 straight. When we look at the internet to call 911, okay,

6 and I ’m looking at Steve’s iPad here, now some iPads I can

7 hook up -- I have one that does not have cell service. I

8 have Wi-Fi. If I ’m at a Wi-Fi place, I can use it. Now, I

9 think Steve’s is hooked up to a carrier. Are you saying

10 that his hooked up to a carrier, he would pay his dollar,

11 but if you’re not and you just tap into any Wi-Fi, you

12 would not pay the dollar? Is that the way I ’m

13 understanding this?

14 MR. BUZYDLOWSKI: Essentially that’s correct but

15 let me try to restate [inaudible]. My wife has an iPad and

16 it’s not connected to any carrier, she just uses that, and

17 then she goes into a Starbucks or a McDonald’s and goes on

18 Wi-Fi, I would say that’s neither here nor there meaning

19 that that device is not taxed. There’s no phone number

20 associated with it. There’s really no way to apply the 911

21 fee to the device because, remember, the whole regime here

22 that the way the fee is applied is based upon phone number.

23 So if there’s no carrier, no transmission, you’re using Wi­

24 Fi, there’s no way to get at it and I think it’s really a

25 rabbit hole to try to go down that path. 107

1 If on the other hand you have a telephone number

2 associated with it and I go back to what I said about FCC

3 regulations because you’d need a national standard. So if

4 and when the device is able and capable to make a 911 two­

5 way communication with the PSAP, then it should be subject

6 to the tax, but if it’s not, then it isn’t and shouldn’t be

7 subject to the 911 fee.

8 I can maybe use another example like magicJack is

9 essentially an IP service. You’re using the internet. A

10 friend of mine lived in Montgomery County, moved to

11 Florida. The first thing he did, plugged in his magicJack,

12 and called the company to change his address so that they

13 had the proper ALI -- they have ANI -- but ALI, Automatic

14 Location Identification, so the address if he called 911 it

15 wouldn’t go to Norristown; it would go to wherever the

16 county seat was in Florida. That’s subject to the fee and

17 should be subject to fee because he’s using it as -- and

18 it’s a device that can be used to make a two-way

19 communication with 911.

20 REPRESENTATIVE KORTZ: Because I think that was

21 brought up earlier today and that’s why I wanted to follow

22 up with you because -­

23 MR. BUZYDLOWSKI: It’s not —

24 REPRESENTATIVE KORTZ: I mean it’s not something

25 you just wrap around. We don’t know a year from now what 108

1 type of communication device is going to be able to call

2 911. It may be something w e ’re not even thinking about

3 right now and all of a sudden it’s the new hot item and

4 you’re going to be using it. But I was thinking about the

5 iPad thing is because one is connected using cell service

6 and one is not, just tapping into Wi-Fi. And I agree with

7 you. I mean I don’t know how you can tax Wi-Fi and that’s

8 a path I wouldn’t want to go down.

9 MR. BUZYDLOWSKI: Yes, I don’t know how you’d

10 begin to tax Wi-Fi, and I don’t think you want to go down

11 the road of taxing devices per se because then how about

12 Xbox.

13 REPRESENTATIVE KORTZ: Right.

14 MR. BUZYDLOWSKI: And here’s a real dilemma I

15 think is if something can call 911 but is not two-way

16 communication, I think that’s actually dangerous but

17 certainly shouldn’t be taxed. In other words, my point

18 being is that you’re making communication but they can’t

19 communicate back with you like whatever device you want to

20 talk about, smart TVs or what have you. It’s got to be

21 interactive. And I would defer to people much more

22 knowledgeable than I, the last panel I think it was with

23 the PSAP community. They know better. But they have to be

24 able to identify the caller, the location, where are you,

25 what’s the problem. If they can’t, if all they’re getting 109

1 is a one-way transmission, I think it’s dangerous to public

2 safety but it’s also not something that should be

3 appropriately subject to the fee.

4 REPRESENTATIVE KORTZ: All right. Thank you.

5 MAJORITY CHAIRMAN BARRAR: Yes, I just did the

6 calculation on my own home and with four cell phones and

7 one landline, if we go to $1.50, that tax per year for my

8 household comes out to $90. And that’s an incredible tax

9 for one household to pay for 911 service, which started out

10 at $12 a year. Now w e ’re at 90 for the same household. So

11 that’s why I know w e ’re all wrestling with the fee and it’s

12 a heck of a lot of money to have to pay if you look at it

13 as a per-household tax.

14 MR. KERR: W e ’re glad you still have a landline,

15 Mr. Chairman. There’s one in there anyway, right? We hope

16 you don’t cut back on your purchasing.

17 MAJORITY CHAIRMAN BARRAR: Yes. But I do have

18 the cell service on my iPad but I don’t have it connected

19 to a contract. I just use it for the GPS because it’s

20 actually my navigation GPS for my boat. It works great

21 that way.

22 Any other questions from the Members? Anyone?

23 No.

24 Gentlemen, thank you for your testimony. I

25 appreciate it. I ’m sure w e ’re going to have further 110

1 discussions on this and we will keep you involved in that.

2 Our next testifier is Ray Hayling, Deputy Chief

3 Information Officer with the City of Philadelphia.

4 Good afternoon. Thank you for being here.

5 MR. HAYLING: Good afternoon. Thank you.

6 MAJORITY CHAIRMAN BARRAR: You can begin your

7 testimony when ready.

8 MR. HAYLING: Okay. I'm going to try to stick to

9 this as best as I can so that I don't go off on a tangent,

10 while keeping in mind the time.

11 So good afternoon, Chairman Barrar, Minority

12 Chairman Sainato, and Members of the Committee. My name is

13 Raymond Hayling and I'm the Deputy CIO for the City of

14 Philadelphia.

15 As the largest city in the Commonwealth, as well

16 as the fifth-largest city in the Nation, the Philadelphia

17 PSAP sees call volume increase from approximately 7,000

18 calls per day in the colder months to over 10,000 per day

19 in the warmer months, which is in line with the top 10

20 largest cities in the Nation when adjusted for population.

21 As you know, the Philadelphia 911 system must

22 support the ability to deliver emergency services through

23 various industrial sites, major institutions, commercial

24 oil refineries, public water treatment facilities, and

25 regional transportation networks. As with any large 111

1 metropolitan or urban area, the city’s daily population

2 grows larger with people commuting into these areas for

3 their jobs, sporting, recreational events, leisure

4 activities, school, and celebrations such as the 4th of

5 July. Likewise, our call volume increases during these

6 times, which has a direct impact on personnel and

7 technology required to deliver services.

8 Since I last appeared before this Committee on

9 this issue a little over a year-and-a-half ago, the number

10 of reported access lines in my jurisdiction has dropped to

11 about 31 percent. In contrast, our overall combined call

12 volume from wireline and wireless 911 callers stayed flat

13 at approximately 2.9 million calls.

14 Based on the data issued by the Commonwealth,

15 Philadelphia is the most efficient PSAP in almost every

16 nationally recognized metric for measuring PSAP

17 performance. Some of these metrics are:

18 • Call volume: 2.9 million calls

19 • Cost per call: $13

20 • PSAP staff per 10,000 calls to 911: 1.2

21 • 911 calls per population: 1.89

22 • 911 calls per square mile: 20,137

23 • Access lines: 638,811

24 • Percentage of wireless 911 calls: 77 percent 112

1 • Population: 1.5 million

2

3 We believe that the legislation should award

4 efficiency and not jeopardize it. The current revenue

5 generated by wireline and wireless fund only covers 60

6 percent of our total expenses. Looked at from another

7 angle, the wireless fund is providing the Philadelphia 911

8 system with approximately 12.5 percent of the wireless

9 funds collected by PEMA for handling 32.5 percent of the

10 911 calls in the Commonwealth. And as a point of

11 reference, it is also worth noting that over 77 percent of

12 all of our calls originate from wireless devices. So

13 wireless calls to 911 in Philadelphia taken by themselves

14 represent 24.8 percent of all 911 calls in the

15 Commonwealth, whether wireline or wireless.

16 We believe that 911 funding in the Commonwealth

17 should be formula-driven and written into the legislation.

18 As an emergency call center, our performance is based on

19 the call volume and the corresponding dispatch of

20 assistance to the caller. As a result, we believe that

21 basing fund distribution on call volume provides the most

22 accurate method of identifying and disbursing funds to all

23 PSAPs since PSAPs’ operations and systems are and should be

24 engineered by these metrics as well. This approach

25 accounts for our users migrating from a fixed 113

1 communications user base to one that is mobile as well.

2 The PSAPs answering citizen 911 calls and getting

3 them assistance need to be able to handle the call volume.

4 Over the history of 911 in the Commonwealth, we haven’t

5 always gotten the mix of technologies right but the calls

6 have been predictable. We believe that all funds remitted

7 to the State Treasurer should be directed back to the

8 counties and cities based on a usage or call volume

9 formula, which ensures a dedicated and consistent funding

10 amount that counties are able to anticipate and budget for

11 in their fiscal year planning. Any other disbursement of

12 these such as population, a hybrid of call volume and

13 population, et cetera, only directs funds away from the

14 PSAPs that are answering calls and creates inequitable

15 funding gaps.

16 We agree that the 911 fee should be single and

17 uniform across all consumers. This eliminates the silo

18 effect created over the many years of technological change.

19 The definition of a 911-eligible fee service should be

20 technology-neutral and cover new 911 capable services that

21 materialize through technological advances. This approach

22 will provide the funding necessary to implement, operate,

23 manage, and maintain a 911 system. A county or city should

24 not be subjected to annual changes in the eligibility of

25 fundable expenses. 114

1 In addition, the current proposed legislation

2 also conflicts with laws applicable to Philadelphia,

3 including the Pennsylvania Intergovernmental Cooperation

4 Authority Act, which requires a five-year plan by providing

5 for a four-year sunset provision instead of at least a

6 five-year sunset provision. This would require

7 Philadelphia to absorb one full year of costs should the

8 funding actually sunset.

9 The current draft legislation is vague as to the

10 exact interaction between the 911 Board and the State

11 agency with regards to planning, training, and technology

12 guidance. This vagueness makes it difficult to go into a

13 detailed analysis. However, as the most efficient and

14 cost-effective PSAP in the Commonwealth, the City of

15 Philadelphia believes that it should be guaranteed a voting

16 seat on the 911 Board. We do recommend that the new

17 legislation require an audit of the 911 fund similar to the

18 requirements for 911 funding recipients so that it is clear

19 how funds not directed to the counties and cities are being

20 utilized to support 911 in the Commonwealth.

21 And just to be specific because it’s not in this

22 testimony, when we talk about an audit, w e ’re also

23 including the fact that we have to collect funds from

24 carriers with access line counts, let’s say, or users,

25 let’s say, that we don’t necessarily know the exact number. 115

1 I mentioned my access lines earlier on. The reason that’s

2 important is if you just do a quick analysis of the number

3 of access lines, multiply that by the amount of money w e ’re

4 collecting or should be collecting and the actual amount of

5 money w e ’re getting, there is a Delta.

6 We can’t explain that today because we don’t have

7 the authority or the ability to look inside and actually

8 see who’s paying, who’s not paying, if they’re not paying,

9 why. And there are legitimate reasons not to pay because

10 there are some exceptions in the current legislation, but

11 again, it’s a black hole for us.

12 The current draft proposes that a formula

13 approach be drafted at a later date and implemented with

14 three specific areas, which will be used for programmatic

15 support to the counties in the Commonwealth and

16 administration of the fund: Specifically, fair share funds

17 for each county and/or city, regional incentives, and

18 statewide interconnectivity.

19 Obviously, the City of Philadelphia supports the

20 concept of fair share. I believe the challenge will be in

21 the definition and implementation of a fair share

22 initiative. Once again, I turned to performance

23 indicators, in this case call volume, population, and

24 resulting calls for service. Call volume addresses the

25 actual work that the call center does and the population 116

1 takes into account the standing universe of potential

2 callers. While other indicators could be used, these two

3 directly reflect the work that a call center is doing.

4 Next, I ’d like to address the regional incentives

5 concept from our perspective. Regionalizing backroom

6 equipment and networks may work for the majority of

7 counties and PSAPs. Philadelphia’s situation is unique.

8 Since we handle a large volume of the Commonwealth’s 911

9 calls, engaging our neighboring PSAPs and discussions on

10 how we can provide backup support or share resources with

11 each other is difficult. In these discussions, we have

12 identified two factors that we believe impact our ability

13 to regionalize or back up each other. These factors are

14 the size of each of the adjacent PSAPs and the volume of

15 calls that each one is configured to handle and

16 Philadelphia’s call volume.

17 Each agency’s current configuration, along with

18 its staffing, is based on its own call volume, operational

19 needs, and requirements. Even during our identified slow

20 periods, we average 7,500 calls per day or 312 calls per

21 hour. Compare this to the largest adjacent PSAP which

22 averages 1,460 calls per day or 61 calls per hour, and one

23 can understand how regionalizing with Philadelphia would

24 potentially overwhelm their systems and their staff,

25 jeopardizing both counties’ citizens. 117

1 It is important that, should regional incentives

2 remain as a funding mechanism, backup facilities be made

3 eligible based on a standard commensurate with that of a

4 region. It should be added that if the Philadelphia PSAP

5 were compared on the same metrics mentioned earlier in my

6 testimony to the current or proposed regions, we would

7 still rank number one or number two in all of the

8 categories. The City of Philadelphia already is the

9 Commonwealth's largest region for 911 purposes.

10 In closing, I'd like to thank you for this

11 opportunity to testify before the Committee on this

12 important matter. As you continue to debate this issue, I

13 wanted to summarize areas of importance to the City of

14 Philadelphia:

15 1. We support the creation of a 911 fee,

16 eliminating silos, and providing for a five-

17 year sunset provision.

18 2. We believe a funding formula should be

19 included in the legislation that provides a

20 dedicated, predictable funding distributed

21 based on call volume. Eligible expenses being

22 similar to the original Act 78 guidance, which

23 is ”911 funds should be used only for those

24 costs that are reasonably necessary to

25 enhance, operate, or maintain a 911 system.” 118

1 This would provide the counties with the

2 ability to administer the program locally

3 without constraints.

4 3. The legislation should provide clarification

5 for the State agency and the 911 Board

6 programmatic oversight related to planning,

7 training, technology, and the audits that I

8 mentioned earlier.

9

10 I ’d be happy to take any questions that you may

11 have.

12 MAJORITY CHAIRMAN BARRAR: Representative Barbin.

13 REPRESENTATIVE BARBIN: Thank you, Mr. Chairman.

14 And thank you, Mr. Hayling, for your testimony.

15 And I just want to see if I understand this. Do

16 you believe that the State should have oversight ability

17 over what Philadelphia County or the City of Philadelphia

18 decides to purchase as a relates to your ongoing traffic

19 for -- w e ’re looking at this 4G network that’s going to

20 have to be built out. Do you believe that the State has a

21 role in determining whether the type of purchase that

22 Philadelphia makes should be overseen by someone at the

23 State level?

24 MR. HAYLING: What I ’d say is based on my past

25 experience -- I worked at both the municipal, county, and 119

1 State levels -- technological guidance needs to be

2 provided, a standard for interconnectivity needs to be

3 provided, but at the end of the day, the actual person

4 providing the service needs to decide what their end user

5 equipment is. That doesn’t mean that there aren’t

6 opportunities to work together with other agencies but

7 everyone’s day-to-day operations are going to be different.

8 But at the end of the day we do have to answer a call, I do

9 have to make some documentation or a record that I took the

10 call, and I do have to dispatch service. Those are three

11 areas where I don’t think anyone else should muddle but the

12 person taking the call.

13 REPRESENTATIVE BARBIN: Are you participating in

14 the State’s STARNet program, the infrastructure? Fifteen

15 years ago the State joined into a backbone -­

16 MR. HAYLING: We had —

17 REPRESENTATIVE BARBIN: — such as Alcatel or —

18 MR. HAYLING: We do have direct connectivity into

19 the State Police radio system.

20 REPRESENTATIVE BARBIN: But to STARNet, are you

21 using STARNet as part of your backbone?

22 MR. HAYLING: No, we are not.

23 REPRESENTATIVE BARBIN: Okay. And this is what I

24 want to get to. If we have to make a backbone, I mean we

25 did. Fifteen years ago we decided we were going to use 120

1 STARNet and we built it out. You’re not using it. And now

2 w e ’re asked to provide a $2 increase or a 100 percent

3 increase from $1 to $2 to build out whatever the next

4 generation is going to be, but if you’re not going to use

5 it, how are we going to be able to save money? That’s my

6 question.

7 MR. HAYLING: And I guess what I do is go back to

8 the metrics that I gave you because even with us not

9 participating with STARNet and many others are

10 participating, most of my numbers in terms of the number of

11 calls I take, how much it costs me to actually take a call,

12 et cetera, are significantly lower than anyone in the

13 Commonwealth. So I ’m not sure -­

14 REPRESENTATIVE BARBIN: But you don't know that

15 it would be lower if you participated in the STARNet

16 network. You’re not right now -­

17 MR. HAYLING: Correct.

18 REPRESENTATIVE BARBIN: — and we don’t know what

19 the network’s going to be four years from now for 4G. But

20 if we allow every county not to participate in whatever

21 that backbone is, it seems to me that w e ’re going to have

22 problems with connectivity and w e ’re going to have problems

23 in not being able to have economies of scale. We get a

24 lower price at the State level if we can say there’s one

25 standard and you guys all have to buy into it. And right 121

1 now, that’s not happening.

2 MR. HAYLING: Correct. I just don’t know if that

3 savings would be significant in comparison to the other

4 costs -­

5 REPRESENTATIVE BARBIN: Well —

6 MR. HAYLING: — based on the —

7 REPRESENTATIVE BARBIN: — if you have any

8 information that would say we will have a lower cost for

9 our share that we have to pass on to Philadelphia, then we

10 should be able to see that now. But right now, w e ’re being

11 asked to make a new infrastructure for 4G, and the way

12 we ’re working at it now, it sounds like a lot of people

13 don’t participate in the backbone structure we have now and

14 we want more money. W e ’re being asked to give more money

15 for another system, and if we keep it the same way it is

16 now, no one’s going to have to participate. They won’t be

17 mandated to participate in what our largest expense is

18 going to be, which is going to be the backbone.

19 MR. HAYLING: I ’ll just add, and I ’m not

20 disagreeing, I ’m talking about what we do today. When we

21 go to next-generation 911, there is no way that you can

22 have next-generation 911 without the backbone. Today, I ’ll

23 just use -- if Philadelphia wants to transfer a call to

24 Bucks County, I can’t take and transfer all of my data.

25 It’s a completely different paradigm. So what we have 122

1 today and what we can do today, I don’t know what being a

2 part of STARNet would add, because even if I was a part of

3 it, I ’m going to do the exact same transfer that I do

4 today. I ’m going to send over the exact same information

5 that I do today. Going forward -­

6 REPRESENTATIVE BARBIN: If you have any

7 information -­

8 MR. HAYLING: Right.

9 REPRESENTATIVE BARBIN: — that tells us why it’s

10 better for you to buy it yourself, then we should see that

11 before we make these decisions on whether or not there

12 should be some kind of mandatory review by the State.

13 MR. HAYLING: Right. And I ’m not disagreeing

14 there should be. In fact, I ’ve actually recommended in the

15 past that it might be a good idea for us to actually, since

16 we want to build out this regional network, theoretically

17 we already have it because most of us are all using 911

18 lines from almost the same provider. If I did one big

19 purchase leaving the lines as they are, you would save

20 money by the economies of scale you mentioned.

21 REPRESENTATIVE BARBIN: Thank you.

22 MAJORITY CHAIRMAN BARRAR: Thank you,

23 Representative.

24 Representative Kortz.

25 REPRESENTATIVE KORTZ: Thank you, Mr. Chairman. 123

1 Thank you, sir, for your testimony, very

2 compelling testimony. I see here where you’ve mentioned

3 that the funds only cover 60 percent of your total

4 expenses. Separate question coming off to the side. We

5 anticipate the Pope coming here in September. Are you

6 going to have to add additional people and additional maybe

7 some regionalized PSAPs to help you out with what you

8 anticipate? I ’m sure w e ’re going to have hundreds of

9 thousands of extra people come flooding into Philadelphia.

10 Have you talked about that at all and what’s going to be

11 necessary there from 911?

12 MR. HAYLING: Yes, and basically what we do, as

13 any other 911 center, we do highs and lows based on

14 different events, based on times of year, et cetera. So

15 what our plan is basically is to staff up at a higher level

16 during that time.

17 REPRESENTATIVE KORTZ: You’ll be completely

18 staffed 100 percent?

19 MR. HAYLING: Yes.

20 REPRESENTATIVE KORTZ: Okay. Thank you, Chair.

21 MAJORITY CHAIRMAN BARRAR: Thank you.

22 Representative Tallman.

23 REPRESENTATIVE TALLMAN: Thank you, Mr. Chairman.

24 Thank you for being here.

25 Something you had mentioned, do you have CAD 124

1 system for -­

2 MR. HAYLING: Yes, we do.

3 REPRESENTATIVE TALLMAN: Okay. So documentation

4 should be automatic.

5 MR. HAYLING: It's not 100 percent automatic.

6 Someone still has to enter the information in. And what I

7 was referring -­

8 REPRESENTATIVE TALLMAN: Yes, but once that's

9 in -­

10 MR. HAYLING: Right.

11 REPRESENTATIVE TALLMAN: — I mean at least

12 that's the way it was done in my county.

13 MR. HAYLING: Right. And I think if I remember

14 correctly the question I was referring to if I needed to

15 take that information now and transfer it to someone else,

16 that wouldn't transfer.

17 REPRESENTATIVE TALLMAN: Just if you can, if you

18 have access to the data since it is on CAD, just curiosity,

19 if you could just send a breakdown of what kind of calls to

20 the Committee because Adams County we get calls to 911 that

21 should not be made. So just how does Philadelphia County

22 classify those and then how does that work?

23 MR. HAYLING: Okay. One thing I can tell you is

24 that we do have -- and what we've tried to do to remove the

25 number of nonemergency calls to 911 is we actually have a 125

1 311 system that does another million, million-and-a-half

2 worth of interactions with the citizens. So we know that

3 we’re already off-laying about a million to a million-and-

4 a-half interactions, and on the 311 side, that’s not only

5 voice but that would also be social media, text, et cetera.

6 So we do acknowledge that sometimes you get the wrong

7 calls. We actually will funnel that traffic out to 311.

8 And if you ever take a look at our annual

9 reports, we actually usually have a breakout of our call

10 volume that says "other." That means we can’t really

11 identify -- we don’t think it was necessarily a 911 call so

12 we don’t put it in there.

13 MAJORITY CHAIRMAN BARRAR: Is your 311 system,

14 how are they funded?

15 MR. HAYLING: One hundred percent by the city.

16 MAJORITY CHAIRMAN BARRAR: Okay. No funds from

17 911 are used then -­

18 MR. HAYLING: No.

19 MAJORITY CHAIRMAN BARRAR: — to fund any of

20 that? Okay. Different building, totally separate

21 operation?

22 MR. HAYLING: Yes, one’s in City Hall, one’s at

23 the police headquarters.

24 MAJORITY CHAIRMAN BARRAR: Okay. You mentioned

25 down here, you throw a lot of percentages out here. What’s 126

1 your total budget for 911?

2 MR. HAYLING: We have a total budget of somewhere

3 in the neighborhood of $45 million.

4 MAJORITY CHAIRMAN BARRAR: Forty-five. And 60

5 percent of that comes from the State?

6 MR. HAYLING: Right. And budgets are odd because

7 of course you have capital expenses versus operating

8 expenses. I ’m focusing on the operating so I don’t have

9 the bricks-and-mortar; I don’t have all the other things we

10 have to do to run the organization.

11 MAJORITY CHAIRMAN BARRAR: Now, you’re saying

12 you’re handling 32.5 percent of all the 911 calls in the

13 Commonwealth. Is that how you assume that the funding

14 should be driven out, based on the percentage of calls? Is

15 that what you’re saying in your testimony? I ’m not sure.

16 MR. HAYLING: Yes, what w e ’re saying is that we

17 need to use metrics and call volume is a direct metric that

18 will determine what you have to do on your side. So if we

19 were going to start a PSAP today, the first thing I would

20 ask is not necessarily what’s the population. What’s the

21 anticipated number of phone calls that we think w e ’re going

22 to get at the center? What’s going to be our baseline for

23 how quickly w e ’re going to answer it and how quickly am I

24 going to get the assistance out to the person who called?

25 So everything drives me back to I need to know what the 127

1 call volume is so I can actually staff up to actually

2 handle the calls. So if it’s going to be w e ’re answering

3 80 percent of our calls within 3 seconds, w e ’re going to be

4 able to get that dispatch and assistance out within 5

5 minutes, all that goes back to what’s my call volume coming

6 in.

7 MAJORITY CHAIRMAN BARRAR: Okay. How many people

8 employed with your 911 system?

9 MR. HAYLING: I believe the total number is about

10 350 to 400.

11 MAJORITY CHAIRMAN BARRAR: Okay.

12 MR. HAYLING: It fluctuates because we have

13 turnover like everyone else.

14 MAJORITY CHAIRMAN BARRAR: Right. Right. Okay.

15 MR. HAYLING: And also something to note is that

16 we don’t have any dedicated IT staff. The central IT

17 organization from the city actually does all of the IT for

18 911.

19 MAJORITY CHAIRMAN BARRAR: The county tax, have

20 you thought at all, have you kicked that around with your

21 leadership at all about the possibility of putting on your

22 own -- if we do a $1.50 increase, which is seriously that’s

23 the way w e ’re leaning, if that’s the way we go but also

24 then to give the county an opportunity then to put on some

25 type of an emergency management tax or 911 fee on a per 128

1 capital or household, I guess the way to do it would

2 actually be living quarter type of arrangement that would

3 get every living unit where somebody lives, apartment

4 complexes, duplexes, things like that. Have you discussed

5 that at all with the leadership there?

6 MR. HAYLING: There have been some discussions.

7 I don’t know what the final decision is of the

8 administration but I can ask that question and get back to

9 you in writing.

10 MAJORITY CHAIRMAN BARRAR: Okay. Okay. If you

11 would, thank you.

12 Any other questions from Members? Anyone? No.

13 Thank you for your testimony.

14 MR. HAYLING: Thank you very much.

15 MAJORITY CHAIRMAN BARRAR: Appreciate it.

16 Our next testifier is Mr. Richard Fitzgerald,

17 County Executive, Allegheny County.

18 Good afternoon. You can begin your testimony

19 when ready. Thank you for being here.

20 MR. FITZGERALD: Thank you, Chairman Barrar and

21 Chairman Sainato and Members of the House Veterans Affairs

22 and Emergency Preparedness Committee. My name is Rich

23 Fitzgerald. I ’m the County Executive. I also have with me

24 today Gary Thomas, who’s our Assistant Chief of our

25 Emergency 911 Center. 129

1 I want to thank you for the invitation to address

2 you today regarding the proposed Title 35 legislation that

3 will provide much-needed changes to the 911 Emergency

4 Telephone Act.

5 From Allegheny County’s perspective, we have

6 three requests as to what we hope to see in the final

7 version of this bill. First, there must be an equitable

8 formula that provides a minimum level of funding that is

9 sustainable and known each year; second, there should be

10 one funding mechanism for all devices that can contact 911

11 for response; and third, we must eliminate the barriers on

12 how the funds are utilized.

13 While the draft legislation leaves the creation

14 of the formula to the EPA Emergency Management Agency, in

15 consultation with the 911 Board, the bill specifically

16 spells out what should be considered in establishing the

17 distribution formula. Two of those criteria, population

18 and call volume, are extremely important to Allegheny

19 County.

20 Our 911 centers in Allegheny County serve 130

21 municipalities, 197 fire departments, 111 police

22 departments, and 51 EMS agencies. We do so with about 300

23 full- and part-time employees, 233 of which are

24 telecommunication officers. Our center receives

25 approximately 1.3 million calls a year and serves a 130

1 population of just over 1.2 million people. That number

2 increases dramatically each workday as Pittsburgh is the

3 hub and center for employment in our region, and every time

4 we host a major event, whether it be a sporting event,

5 concert, or other special event that occurs in downtown

6 Pittsburgh.

7 We do realize that Allegheny County’s system and

8 its network is not the norm for the rest of the State. We

9 fully believe that the formula should be fair for all

10 counties. We also think that we need to get away from

11 competing for funds with other counties. Each center

12 provides an invaluable service and should receive funding

13 based on the service that it provides, and that way we can

14 be assured of the funding that will be received each year

15 and we can plan accordingly. That change can assist us in

16 providing reliability and sustainability for the 911

17 system.

18 The draft legislation provides for a uniform 911

19 surcharge of $2. Providing for one funding mechanism is

20 something for which we have advocated, as well as a

21 surcharge assessed against all devices that can contact 911

22 for response. That’s all devices. And we are now seeing

23 new devices that can call 911 and we also probably can’t

24 foresee some of the ones in the future that will have that

25 capability. The language appears to be written broadly 131

1 enough to encapsulate those future technologies. There

2 should, however, be some escalator or other automatic

3 adjustment to ensure that the $2 surcharge will continue to

4 grow with inflation as the devices that can call 911 will

5 certainly grow as well.

6 This bill also eliminates the barriers that exist

7 in the current law in regards to how the funds are to be

8 utilized. Our 911 centers must be able to fund the

9 infrastructure that allows us to work and provide those

10 needed services. Each county is different and we should

11 have the ability to make decisions about what is best for

12 our community. We need to have adequate and sufficient

13 funding to meet our citizens' expectations for 911 service.

14 We have only ever wanted to use the funds to enhance,

15 operate, and maintain 911 system, and this revised language

16 will allow us to do so.

17 The draft bill provides for a biennial

18 performance audit of the use of the disbursements. Rather

19 than requiring duplicative auditive processes, which are

20 costly, I would suggest that each county's Comprehensive

21 Annual Financial Report, the CAFR, which is done annually,

22 be the process that's used. The reconciliation process

23 could also be made less bureaucratic by simple updates.

24 While that may not be a consideration for this legislation,

25 it could certainly be a power and duty of the agency or a 132

1 reference under the establishment of uniform standards.

2 Those are our requests and, as noted, the

3 majority of these appear to have been contemplated and

4 worked into the draft legislation. More generally, allow

5 me to comment on a few other provisions included in the

6 bill.

7 Based on the language, it is clear that this

8 Committee wants to promote regionalization. We have seen

9 the same focus from PEMA in the past few years and we agree

10 with that approach wholeheartedly. And we are a strong

11 example of benefits to such changes. In the past two

12 decades, the Allegheny County Center has moved from 96

13 dispatch centers to seven regional dispatch centers, to the

14 one 911 call center that we have today. We continue to

15 accept municipalities which have closed their individual

16 dispatch centers and have incorporated them into our

17 facility. Most recently, w e ’ve picked up two other

18 communities, Munhall and North Versailles in Allegheny

19 County, their fire and their EMS, and w e ’ve done a great

20 job of saving not only these but all municipalities money,

21 have made the system more effective and efficient for those

22 who have the need of the 911 call center.

23 Regionalization also plays a part in our

24 procurement. The Allegheny County 911 Center participates

25 in WestCORE, a regional procurement effort between 13 133

1 counties that allows us to share costs for switches and

2 technology while also sharing the switches. We also

3 participate in ESInet, an Emergency Services Information

4 Network that is allowing us to move toward the next

5 generation of 911.

6 Although we have taken significant steps to

7 centralize our systems and regionalize our purchasing, the

8 cost to the taxpayers of Allegheny County continues to grow

9 and the funds that w e ’re expected from 911 have not covered

10 the costs of the service for many years. In 2009, the

11 deficit was 2.2 million. In 2010, it grew to 4 million.

12 Through the efforts on our part, we reduced the deficit in

13 2011 and ’12 to around 3.1 million and in 2013 to 2.7

14 million.

15 For 2014, when we officially close the books for

16 the year, we are projecting that the county taxpayers will

17 have had to provide a $7.7 million subsidy. That is after

18 the expenditure of the 15.5 million the county received in

19 combined landline, VoIP, and wireless revenues. That means

20 that the money from property tax dollars that were intended

21 to fund our roads and provide services and run the

22 government will instead have to be used for 911.

23 Four Allegheny County taxpayers, it is imperative

24 that we make these changes now. The $7.7 million subsidy

25 this year is an increase of 185 percent over last year’s 134

1 subsidy. Should we continue down this road, we will have

2 very few options available to us, but those include turning

3 the responsibilities of call-taking and dispatching back

4 over to the municipalities or billing the municipalities

5 for the services provided. What do we tell our citizens?

6 Last but not least, even if legislation were to

7 be changed tomorrow, it will take quite some time for the

8 funding to be seen in the counties. We respectfully

9 requested that there be real dollar figures associated with

10 the interim distribution formula so that we can plan

11 accordingly and provide real feedback on that proposal. It

12 will also allow us to determine what amount county

13 taxpayers will have to shoulder to ensure that our system

14 remains the strong asset that it is for our communities.

15 Without such information, it’s impossible to speak with any

16 confidence as to what Allegheny County will do during this

17 transition, assuming legislation is passed by the General

18 Assembly.

19 Thank you for allowing me to present this

20 testimony to you today. We appreciate the opportunity to

21 continue moving this conversation forward and offer

22 Allegheny County’s resources to you as to other questions

23 or issues that might arise. I ’m also happy to answer any

24 questions that you might have for me today.

25 And again, I thank you for allowing me to 135

1 testify.

2 MAJORITY CHAIRMAN BARRAR: Thank you.

3 You talked in your testimony about your efforts

4 to reduce the deficit. Can you tell us some of the cost-

5 saving measures that you implemented?

6 MR. FITZGERALD: Well, it really came down to

7 consolidating some of the purchases that we did just to try

8 to reduce some overtime and some other things, kind of best

9 management practices, but w e ’ve kind of reached kind of the

10 end of the limit I think on those kind of savings, and you

11 can see that the deficit is now heading up in the other

12 direction.

13 MAJORITY CHAIRMAN BARRAR: Okay.

14 Questions from the Representatives?

15 Representative Kortz.

16 REPRESENTATIVE KORTZ: Thank you, Mr. Chairman.

17 Thank you, County Executive, for being here

18 today, Deputy Chief. Thank you very much.

19 Rich, could you tell us a total cost of what it

20 costs per year to run the 911 center?

21 MR. FITZGERALD: It costs us about $26 million a

22 year to run the 911 system.

23 REPRESENTATIVE KORTZ: And the deficit —

24 MR. FITZGERALD: About 19 million of that is in

25 personnel. 136

1 REPRESENTATIVE KORTZ: Okay. And the deficit

2 just keeps going up and up and up and w e ’re taking more

3 money from the coffers of Allegheny County property tax to

4 pay and make up the difference?

5 MR. FITZGERALD: That’s exactly right, yes. And,

6 yes, you hit it exactly right, Representative. W e ’re

7 receiving only landline fees at this point that obviously

8 continues to go down as people, particularly young people

9 -- and that’s who’s moving into Allegheny County right now

10 -- are getting away from that and we don’t receive the

11 cellular and other device fees.

12 REPRESENTATIVE KORTZ: And the trend, which w e ’ve

13 been hearing today, the trend is that the landlines are

14 going down so that cell phones are going up and there’s all

15 kind of new devices coming online where we can’t tax at

16 this point in time. We don’t know how to do it, like the

17 Wi-Fi that we were talking about earlier. My concern and

18 I’m sure the whole Committee has a concern that as

19 technology continues, the amount of money that we generate

20 to pay for 911 is going to keep going down and down and

21 down.

22 And I guess, Mr. Chairman, what I ’m saying is

23 even if we put this $2 fee on, are we going to be back here

24 next year, hey, we lost a lot more money? We need to get

25 this right is where I ’m going and how do we tax the 137

1 internet? I don’t know how we do that. And it just seems

2 like w e ’ve got a very complex situation here and how do we

3 capture all the different devices and services that are

4 able to get to the 911 centers? How do we tax that and

5 make sure the counties get what they’re due?

6 Earlier today, sir, I mean there was a mention of

7 possibly giving the county some skin in the game by

8 allowing them to initiate their own tax, maybe a per capita

9 tax or something like that. Would you be agreeable to

10 enabling legislation that may do something like that to

11 help offset this?

12 MR. FITZGERALD: We would. I mean I heard the

13 Chairman ask that question to Philadelphia and some of the

14 other folks. We absolutely would. W e ’d like to see some

15 of those details. Right now, w e ’re laying it all on

16 property tax and w e ’d like to see something that doesn’t

17 use property tax so some other mechanism we would certainly

18 be open to. My sense is I would like to see it on the

19 devices that are used for that. I mean if you want to

20 enable us locally, us meaning the county council and county

21 executive and/or commissioners in other counties, I think

22 that’s something we would certainly be open to up to some

23 sort of limit that the General Assembly would set.

24 REPRESENTATIVE KORTZ: Okay. Thank you, sir.

25 Thank you, Mr. Chairman. 138

1 MAJORITY CHAIRMAN BARRAR: Thank you,

2 Representative.

3 So when you're saying device tax, now, again,

4 taking my house, I have four cell phones, a landline, I

5 have four iPads in that home all have cellular capability.

6 So every one of those devices -- and I know I have at least

7 another three, four laptops in the house -- I hope no

8 burglars are watching -- so your assumption then is that

9 every one of those devices that can connect to the internet

10 or to cell service should pay a fee?

11 MR. FITZGERALD: The mechanism would be -­

12 whether you do it like if the household is paying a common

13 fee for all devices, you know, now some bills are including

14 everything that you use is under one, whatever that

15 mechanism is, I think what I'm saying is we'd just like it

16 to be kind of revenue-neutral to cover the cost of what the

17 911 center needs to be so that we don't run these deficits

18 that in essence get then placed on the backs of property

19 tax payers.

20 MAJORITY CHAIRMAN BARRAR: My concern, I know

21 there was discussions earlier -- it might have been the

22 county's testimony that we should tax broadband. I'm not

23 sure who brought that up but just a tax on the overall

24 broadband bill would be one way to do that. And I'm

25 concerned that that would impact businesses more so than 139

1 would impact homeowners. So, again, w e ’re all searching

2 for the fairest fee possible, and of course once we collect

3 the money, the fairest way possible to drive those dollars

4 back out to the PSAPs. And I don’t think there’s a magic

5 formula but w e ’ve probably heard as many suggestions as

6 there are different PSAPs around the State.

7 MR. FITZGERALD: I don’t disagree. And again, as

8 a large urban center, we provide a lot of services for some

9 of our suburban and rural counties who utilize what goes on

10 in Pittsburgh, which I ’m sure they do in Philadelphia and

11 other large urban centers, so w e ’re just trying to make

12 sure we can provide the service but also capture the

13 dollars in some mechanism that pays for that service. And

14 obviously regionalization is a big area that we agree in

15 and want to participate in working with our other counties

16 surrounding us and w e ’ll kind of rely on you guys to come

17 up with that. We’ll certainly work with you. But whether

18 it’s that mechanism on the business side or on the

19 homeowner side, I think some sort of balance that allows

20 economic growth but provides a fairness to pay for the

21 system.

22 MAJORITY CHAIRMAN BARRAR: Okay. Representative.

23 REPRESENTATIVE TALLMAN: Thank you. And we were

24 out to visit you -- was that a year-and-a-half ago?

25 MR. FITZGERALD: I recall, yes, it was, and we 140

1 appreciate you making the trip and checking out our system.

2 REPRESENTATIVE TALLMAN: And I appreciate that.

3 I ’m not going to use the correct terminology, but

4 you guys had the summit out there, which was a huge

5 security -­

6 MR. FITZGERALD: The G20.

7 REPRESENTATIVE TALLMAN: G2 0.

8 MR. FITZGERALD: The G20, correct.

9 REPRESENTATIVE TALLMAN: I was going to call it

10 G17. Don’t ask me why but -­

11 MR. FITZGERALD: Yes.

12 REPRESENTATIVE TALLMAN: I knew that wasn’t the

13 right number. So you had G2 0 -­

14 MR. FITZGERALD: Correct.

15 REPRESENTATIVE TALLMAN: And that was a huge

16 security -- you drafted -- people come from all over the

17 State to help out.

18 MR. FITZGERALD: We had thousands of law

19 enforcement and the G20, for those who don’t know, is the

20 largest 20 industrial countries in the world, so we have

21 every President, every Prime Minister, every Foreign

22 Minister. It was literally a lockdown state, our whole

23 city and whole region during those three or four days in

24 which President Obama brought literally the world to

25 Pittsburgh. 141

1 REPRESENTATIVE TALLMAN: And I think we discussed

2 this when we were there, and this is somewhat for the

3 benefit for the gentleman from Philadelphia also because we

4 have the Pope coming -­

5 MR. FITZGERALD: It’s very similar, yes.

6 REPRESENTATIVE TALLMAN: And we just had our

7 150th anniversary at Gettysburg two years in Adams County,

8 and so basically we activated our EOC, staffed up. So kind

9 of describe what you guys did for the G20.

10 MR. FITZGERALD: Well, a lot of what occurred -­

11 and we had a lot of State Police, National Guard; I mean it

12 was an incredible amount of police presence that was there

13 -- much of the city was cordoned off where they just fenced

14 off literally entire city blocks and entire city

15 neighborhoods. It went well but there was a lot of -- and

16 I ’ll maybe ask Gary to talk about some of the details on

17 how we did the 911 call center.

18 MR. THOMAS: Okay. And that’s a good question.

19 So, yes, we did staff up our EOC. We actually built a

20 temporary EOC in the basement as well for the Federal

21 folks. But the 911 center was fully staffed, as well as we

22 have a backup overflow center, which is the City of

23 Pittsburgh’s old 911 center, and we staffed that as well to

24 take care of all the 911 overflow calls. So we were able

25 to handle our call volume due to the amount of activity 142

1 that was going on in Pittsburgh at that time.

2 MAJORITY CHAIRMAN BARRAR: Great. Any other

3 questions from Members? Anyone? No.

4 Thank you for your testimony today and being here

5 with us, sir.

6 MR. THOMAS: Thank you, Mr. Chair.

7 MR. FITZGERALD: Thank you, Mr. Chairman.

8 MAJORITY CHAIRMAN BARRAR: Okay. Our next panel

9 is everyone from Westmoreland County. We have quite a

10 panel from Westmoreland. Mr. Bud Mertz, Director,

11 Westmoreland County Department of Public Safety; Mr. Nick

12 Caesar, Deputy 911 Director, Westmoreland County;

13 Mr. Gerald Lucia -- did I say that right?

14 MR. LUCIA: Yes.

15 MAJORITY CHAIRMAN BARRAR: Mt. Pleasant Borough

16 Mayor and Fire Chief, President of Westmoreland County Fire

17 Chief’s Association; and Mr. Donald Thoma, Adamsburg

18 Borough Chief and Director of Adamsburg Ambulance Service.

19 Gentlemen, thank you for being here today and you

20 can begin your testimony when you’re ready.

21 MR. MERTZ: Thank you, Chairman Barrar, Chairman

22 Sainato. It’s a great privilege to sit here with the first

23 responders from our county to give this testimony.

24 As a lot of the discussion has gone through about

25 governance of a 911 center, I can truly say that my 143

1 governance is sitting here at this table. If my system

2 fails, I get a phone call from these chiefs. But more

3 importantly what you have to realize, if my system fails,

4 they are dealing with the victims or the victim’s family

5 directly that warrants that call to me, so it’s a great

6 honor to be here.

7 If it’s all right, I ’m going to go through a

8 couple highlights of my testimony but I ’d really like for

9 you to hear what the first responder community has to say

10 about 911. Thank you.

11 First of all, Westmoreland County, population

12 about 363,000 people. We have 65 municipalities, 135 fire

13 companies, 21 emergency medical districts, and 33 police

14 departments. W e ’re a large county. We pride ourselves in

15 saying that w e ’re the second-largest county in the western

16 half of Pennsylvania.

17 And of course there is one public safety

18 answering point, which is our 911 center. Our 911 center

19 employees 62 TCOs, telecommunications operators, six

20 supervisors. Of course we have the support staff with

21 quality assurance supervisor, IT specialists, and the CAD

22 addressing and so on and so forth. And we average probably

23 around 412,000 calls a year, emergency and emergency-

24 related calls a year, so we do a high number of calls,

25 which makes it necessary for us to keep on about an average 144

1 of 12 employees per shift around the clock.

2 So over the year w e ’ve seen a lot of testimonies

3 about what it cost to run a 911 center. One of the things

4 that’s missing is somebody was also mentioning the Delta.

5 One of the things that’s missing in a lot of these facts

6 and figures is what we can’t buy, and what we can’t buy is

7 very important for us because these are critical pieces

8 that we just can’t afford.

9 First of all, I really want to say that

10 Westmoreland County has done everything that we possibly

11 could do to regionalize our equipment. You’ve heard talk

12 about the WestCORE project. Yes, w e ’re a part of that

13 WestCORE project where we share a phone system with the

14 other counties. There’s an ICORRS system where we share

15 our radio system. Westmoreland County has the core radio

16 system and we share that core with five other counties

17 right now on a regional basis. And we all do this through

18 the ESInet that’s been talked about as well, the Emergency

19 Service Internet protocol network that’s out there. So

20 w e ’ve been part of this sharing process for a long time.

21 There are a few issues, though, that when you

22 look at it and examine it, it’s not cost-effective to

23 share. W e ’ve been trying to buy a CAD system, which is

24 part of my testimony here, but when you look at the numbers

25 of the CAD system, the first thing we tried to do is go 145

1 into a computer-aided dispatch sharing system similar to

2 what we did with the phones and radios, which just couldn't

3 be possibly done. When you talk about the individual

4 databases that you have with all your information, your

5 street, your aliases, your points of interest that your CAD

6 system uses, the technology just isn't there yet. Maybe

7 two, three years from now it would be there but it wasn't.

8 So as much as we wanted to go with the shared CAD system,

9 we couldn't, but we tried.

10 And that's really where I want to get at is the

11 point that we are very contentious about trying not to

12 build independent silos. We communicate very well with our

13 neighboring counties. We talk about projects. We talk

14 about how we can help one another with these projects,

15 which led to that WestCORE project and the ICORRS project,

16 all part of the ESInet system.

17 Right now I gave you some figures for 2013 as far

18 as running the 911 center. We're at roughly $8.7 million.

19 Thirty-five percent of that came from the county's general

20 fund while 65 percent of that came from the wireless

21 funding for our 911 center. So that $8.7 million that

22 you're looking at, though, for 2013 includes projects that

23 we couldn't do.

24 And we just mentioned the CAD system. And our

25 CAD system is the heart and soul of a 911 center. It 146

1 integrates all the information into one before the screen

2 so that that dispatcher can perform their miracles that

3 they have to properly dispatch the call. And w e ’re looking

4 at a price tag of $185,000 for a CAD system and that’s a

5 lot of money. That CAD system has needed upgrade. Its

6 last upgrade was 2008. It’s sitting on hardware system

7 that doesn’t talk to other systems now because other

8 systems have been upgraded and it’s very unreliable right

9 now.

10 Today, as I talk about my governance, I heard

11 from Chief Thoma, he said when are we going to get that

12 paging system fixed that comes out of the CAD system

13 because it’s not working properly all the time and w e ’re

14 missing some calls? And that’s my governance system and

15 that’s exactly what he told me.

16 So as we go through there, and again, I ’ll

17 highlight them, but we have a dispatcher protocol system,

18 Priority Dispatch it’s called. That’s close to half-a-

19 million dollars. Priority Dispatch is what gives the

20 dispatchers the unique questions that they need to ask a

21 caller to interrogate them to find exactly what’s going on.

22 It gives you a standard set of questions for every call

23 that comes in so that you dispatch a standard way. Right

24 now, we have it with our EMD or emergency medical dispatch,

25 but we don’t have it for our police and our fire. The full 147

1 set of accredited, certified question-and-answer is half-a-

2 million, can’t afford it.

3 And I think I made my point. I could go into the

4 radio systems, I can go into some of the other points but I

5 really don’t want to take away from what we want to hear

6 from the chiefs and their involvement with 911 because I

7 think it’s unique that we do have the first responders here

8 and what they realize. So with that, I ’ll start with Chief

9 or Mayor Lucia.

10 MR. LUCIA: Thank you. Thank you for letting us

11 have the opportunity to speak.

12 I ’ve been the mayor for 29 years in the community

13 of Mt. Pleasant, Pennsylvania, and through that time we

14 also watched our population decrease, which hurts our tax

15 structure within the municipality. We depend on 911. We

16 had a radio system of our own back in the ’70s and the

17 early part of the ’80s, and we then switched over to the

18 county 911 system, which many other communities did

19 likewise. We depend on them. As a first responder, I

20 carry a monitor, I carry a telephone, I carry a radio.

21 There’s not a call that I want to miss in any way, shape,

22 or form.

23 And believe me, speaking on behalf of the Fire

24 Chief’s Association of Westmoreland County, we need to

25 upgrade our system. We understand that the county is at 148

1 the plateau that they cannot go too much higher as far as

2 raising taxes and passing it on to the homeowners. What we

3 would like to see and we would encourage to see is the

4 devices that are out on the market today that weren’t there

5 20 years ago to go on and have the fee adjusted over to

6 them because a lot of the landlines don’t exist today, and

7 everyone has a cell phone or some type of device to use

8 other than the landline phone. And we can’t afford to be

9 without the 911 having the raising costs.

10 And we don’t talk about the equipment, too. The

11 equipment costs today versus what they were 10 years ago

12 have skyrocketed. We support it 100 percent. I speak for

13 the county fire chiefs, I speak for the municipalities

14 likewise. And so we really want you to take a strong look

15 at passing that fee along and don’t let it go down where it

16 has to trickle back down to the property owners again

17 because the property owners are taxed way out of proportion

18 right now.

19 MR. MERTZ: Mr. Thoma.

20 MR. THOMA: Good afternoon. I want to thank

21 Director Mertz for allowing me to come today and the

22 Committee for allowing me to speak.

23 And again, my name is Don Thoma. I ’ve been Fire

24 Chief at Adamsburg Fire Department as a volunteer for the

25 last 35 years, and I ’ve been involved in EMS for the last 149

1 40 years, 37 of that as a paramedic. The only thing it

2 means is I ’m old.

3 What I want to tell you is when I started, our

4 fire department was dispatched by no less than three

5 different dispatch centers. We had to figure out who sent

6 us, where to go. In our municipality, which is Hempfield

7 Township, by the way, we had 152 streets that were the same

8 or similar. And through those last few years through the

9 911 center and our local municipality, we were able to take

10 some of those things away. It was scary and it was

11 dangerous for the residents.

12 But without reliving those past 39 years, suffice

13 it to say we went literally, literally from paper, pencil,

14 and push buttons to what we have today, and the only way we

15 can keep up with these modern times obviously is the county

16 support and the support from the 911 wireline and wireless

17 funding. And we trust you’re going to do the right thing.

18 The funny thing was I have three boys, two of

19 them in the fire service with me, one which is not, and the

20 two older ones are IT people. And I was talking to them

21 about this and they said, Dad, you got to remember a couple

22 things. Number one -- because every time I ask about an

23 iPhone or an iPad, which w e ’re talking about -- Dad, that

24 costs money. I said, well, I know but -- no, you don’t

25 understand. It costs money. It’s going to be expensive to 150

1 do what you want to do. Well, what do you mean? Everybody

2 does that, don’t they? Dad, it costs money whether you do

3 it yourself or everybody in this room wants to do it. It

4 costs money.

5 And that’s the same thing I talked to Buddy

6 about. You can’t just do it for one person. It’s going to

7 cost money to do it in Westmoreland County so everybody is

8 treated equally. I urge you to continue this funding so we

9 can get the modern technology but also to catch up with

10 some of the technology w e ’ve been lacking at least in our

11 county because we just can’t do it.

12 I can honestly tell you, and you probably know

13 this as citizens and families, when you dial 911, do you

14 really care what they have, how it gets to them, how the

15 switches and things like that? They want to know a couple

16 things: Somebody answers their phone, somebody knows who

17 they need, who to send, and to make sure they get there in

18 a timely fashion. It’s our job at 911 and the first

19 responders to fill in those blanks and we know those blanks

20 cost money.

21 As a volunteer service, we certainly can’t foot a

22 lot of the bill. We just spent $12,000 on new pagers to do

23 better things here or $75,000 on 800 megahertz portables to

24 make sure it’s better. So in our case we had to put skin

25 in the game to make sure we can keep up with the 151

1 technology. We just want our 911 center to advance to the

2 point where it makes our job that much easier. But we know

3 the dispatchers, the call-takers, the responders, and that

4 ultimately the callers’ lives saved is worth every penny.

5 This is one of the most important things in our

6 Commonwealth that’s used every minute of every day for the

7 protection of our citizens, us, our travelers, and visitors

8 that come to the Commonwealth of Pennsylvania. I have no

9 doubt in my mind -- because I talked to Senator Ward and

10 Representative Harhai almost as much as I talk to Buddy

11 here. They’ll do the right thing. After all, we know our

12 families want us and depend on us, all of us in this room,

13 to do the right thing.

14 Thank you for your time.

15 MAJORITY CHAIRMAN BARRAR: Thank you. Are you

16 going to give testimony?

17 MR. CAESAR: My name is Nick Caesar. I ’m the

18 Deputy Director of Public Safety. This is a new position

19 for me. It’s been about nine months since I ’ve been in it.

20 But to give you a little history, I was the police officer

21 on the street for 22 years. I ’ve collected the ranks of

22 law enforcement to patrolman to shift supervisor to chief

23 of police the last five years.

24 And as the Director just mentioned, the CAD

25 system, many months ago I had no interest in what a CAD 152

1 system really does, but the guy on the street, you realize

2 that that information has to be there. You take it for

3 granted that your TCOs and your system supports you when

4 you're out there making the critical decisions and trying

5 to extract information.

6 Quickly after coming to Westmoreland 911, we

7 realized for many years that the CAD system needed

8 upgraded, a huge capital expense, hardware, software,

9 almost $900,000. Looking to get the funding we received

10 through the grants and through PEMA, we quickly realized

11 that we don't have enough. It falls on the county's

12 general fund.

13 When that decision was made to go ahead and move

14 forward with a new CAD system, services somewhere else will

15 suffer within the county, whether it be a capital project,

16 a social service. Somebody somewhere in that general fund

17 just lost $800,000. We're fortunate that our commissioners

18 saw the importance. Our first responders, there was an

19 outcry, we need a better system, and we owe it to our

20 people that are on the phone that call 911 to have the best

21 they could possibly have. So we were fortunate to be able

22 to pull together and come up with those resources.

23 But hearing all the talk today, it's apparent and

24 evident that this is a problem that's being addressed. I

25 commend everybody for all the questions. We start going 153

1 all over the structure here, we kind of get off the subject

2 sometimes, but it’s all important. It all needs to be said

3 because at the end of the day the funding’s not there. We

4 can’t do what we need to do. We get by. We have dedicated

5 employees. The telecommunication officers are first

6 responders so they find a way to get things done, but quite

7 frankly, as a group here we need to fix it and move forward

8 and time is of the essence because this has been going on

9 way too long from what I understand now.

10 So thank you.

11 MAJORITY CHAIRMAN BARRAR: Questions from the

12 Members? Anyone?

13 Gentlemen, thank you for your testimony today. I

14 appreciate it.

15 Our next testifier is Mr. Michael Pries, County

16 Commission, Dauphin County. Did I say your last name

17 right?

18 MR. PRIES: Pries.

19 MAJORITY CHAIRMAN BARRAR: Pries, okay. I was

20 wrestling with it. I figured it was either way.

21 MR. PRIES: Pries, Pries, Price -­

22 MAJORITY CHAIRMAN BARRAR: It figures I said —

23 MR. PRIES: — it works.

24 MAJORITY CHAIRMAN BARRAR: Well, you’re a prize

25 to have here with us today. 154

1 MR. PRIES: Thank you very much.

2 MAJORITY CHAIRMAN BARRAR: Go ahead and begin

3 your testimony when you want.

4 MR. PRIES: Good afternoon, Mr. Chairman,

5 Honorable Members and staff of the Committee. My name is

6 Mike Pries. I ’m Dauphin County Commissioner and I have

7 oversight of the Dauphin County Emergency Management Agency

8 and 911. And joining me today is Stephen Libhart, our

9 Director of our Emergency Management Agency. Thank you for

10 having us here today to speak with you about funding for

11 911, a vital public service.

12 The rising 911 costs are creating a real

13 emergency for our local taxpayers in Dauphin County and

14 throughout the Commonwealth of Pennsylvania. Emerging

15 technology requires upgraded equipment for dispatchers to

16 quickly gather accurate information and share it with the

17 first responders. As the complexity of communications

18 technology has increased and become more expensive for 911

19 to handle, Pennsylvania’s method of reimbursing counties

20 for this critical service is currently failing. Counties

21 are forced to rely on property taxes rather than using fees

22 levied on communication devices, as the State had

23 originally intended.

24 This year, for example, Dauphin County taxpayers

25 will spend $2.3 million to subsidize 911, an almost 400,000 155

1 percent increase from the $600 the county spent back in

2 2007. When the State made counties responsible for 911

3 back in 1990, the law required phone companies to pay

4 counties between $1 and $1.50 per month per landline, money

5 that went directly to the counties and at that time was

6 sufficient to cover costs.

7 As the use of mobile devices grew, lawmakers in

8 2003 added a $1-per-month charge on cellular and internet

9 calling devices but the fee never came close to covering

10 the large number of prepaid cell phones sold without

11 contracts. As the State reimbursement has decreased,

12 emergency calls have increased significantly, 17 percent

13 since 2008. Meanwhile, with 82 percent of our calls coming

14 from cell phones, Dauphin County has seen a 45 percent

15 decrease in our landline revenue over the same period of

16 time.

17 We applaud our lawmakers for being willing to

18 delve into the 911 funding problem, but any proposal must

19 ensure counties receive enough money to cover the costs of

20 providing emergency dispatching now and into the future.

21 Our Dauphin County Board of Commissioners has succeeded in

22 holding the line on property taxes for an unprecedented 10

23 consecutive years. We’ve worked hard to stretch our

24 limited resources to deliver the resources our residents

25 depend upon. 156

1 However, the increasing cost of 911 dispatching

2 represents one of the biggest challenges to our annual

3 budget. Without meaningful action by our State

4 Legislature, this burden will increasingly shift to

5 property taxes, the main source of revenue for our

6 counties. Pennsylvania needs to return to a system in

7 which revenue covers the true cost of providing this

8 crucial service.

9 I want to thank each and every one of you for

10 your time today and thank you for your service to the

11 residents of this great Commonwealth. Now, I ’d like to

12 turn it over to Dauphin County’s Director of Emergency

13 Management and 911, Steve Libhart, to make comments and

14 then we are here to answer any and all questions that you

15 present us.

16 Thank you.

17 MAJORITY CHAIRMAN BARRAR: Steve, I apologize for

18 not introducing you. I misplaced you on the list here so I

19 apologize.

20 MR. LIBHART: Well, generally in 911 if nobody

21 knows you’re at work or working, that means things are

22 good, so that’s what w e ’ve become accustomed to.

23 MAJORITY CHAIRMAN BARRAR: Yes.

24 MR. LIBHART: Thank you for having me,

25 Mr. Chairman and Mr. Minority Chairman and the rest of the 157

1 Committee.

2 I submitted my testimony before in writing so I

3 won’t read a verbatim, but I think it’s been pretty well

4 established by everyone else already today and in previous

5 sessions you’ve heard the three revenue streams that in one

6 way or another flow to a county or a public safety

7 answering point. And obviously I think what everyone is

8 essentially pointing out is even if the amounts were the

9 same between landline and wireless revenues, because

10 they’re not paid directly to the counties and administered

11 through the grant process as it currently stands, it’s not

12 an equal match. So even if $1 from Dauphin County is

13 collected monthly off of a wireless bill, we never see the

14 entirety of that dollar. We don’t even probably see 20

15 cents of it. So that’s one of the systemic deficiencies

16 that exist and which is impacting our county and every

17 other county, whether they’ve testified or not, because

18 landlines are going down throughout the Commonwealth.

19 And new technologies, as they develop, landline

20 is not being implemented where it doesn’t already exist,

21 and where it does exist, it’s being dropped in favor of

22 other things, be it Verizon FiOS, Comcast, XFINITY, your

23 voiceover IP solutions and wireless solutions. There’s a

24 great many people I know that no longer have a home phone.

25 They do all of their phone calls and carry it with them on 158

1 their cellular device. The exception to that might be my

2 mother but she’s a few months away from 75.

3 UNIDENTIFIED SPEAKER: I have a landline at home

4 yet, just so you know.

5 MR. LIBHART: Just make sure you continue to live

6 in the county.

7 So w e ’ve been advocating for quite a while, as

8 you well know, to go to a formulaic solution, and one

9 reason is it is exceptionally difficult for the

10 Commissioners of any county to listen to the director of

11 their PSAP or whoever does that agency’s budget annually,

12 when w e ’re on a calendar year, say I can tell you what our

13 revenue is for the next six months. I cannot, aside from

14 best guess tell you what the other six months’ revenue is

15 going to be.

16 And a few years ago, after some action was taken

17 here to do away with what was called approved-but-unfunded

18 expenses which were carried over to the next year, we

19 realized what we anticipated to be a $3 million revenue for

20 the year was down to 1.2, and we realize that when we got

21 the award letter for the grant. I ’m sure Dauphin County

22 was not the only person to receive such a letter.

23 Did we anticipate after that legislation was

24 passed to do away with that practice? Yes, I did

25 anticipate some kind of a decline but certainly not 159

1 essentially more than half of what the anticipated revenue

2 was. I think that that would at least give us the ability

3 county by county, PSAP by PSAP, to strategically plan. How

4 do we maintain the components we have and how do we

5 leverage what we can at least best guess know we're going

6 to bring in for future expenditures?

7 So that's why we've advocated a formulaic

8 approach, and frankly, the draft legislation as it is now,

9 the only thing that's a known is essentially 25 percent is

10 going to go to a State agency and the actual formula of

11 distribution is not stipulated in the legislation, so

12 frankly, I can't advocate for or against it since it's not

13 specified.

14 MAJORITY CHAIRMAN BARRAR: Do either one of you

15 know -- I know you have a lot of county, State buildings in

16 your county. There is no language even in the current bill

17 that gives them exemption from 911 fees. Do they currently

18 pay any 911 fees?

19 MR. LIBHART: I believe each caucus, at least in

20 the Capitol complex has -­

21 MAJORITY CHAIRMAN BARRAR: We get our own phone

22 bill.

23 MR. LIBHART: -- transitioned to voiceover IP -­

24 MAJORITY CHAIRMAN BARRAR: Right.

25 MR. LIBHART: -- so we see that under that 160

1 payment. As far as independent State agencies, I don’t

2 know that I could account for them. I believe it’s just

3 sent in as the State’s contribution to us on a quarterly

4 basis, but how it’s broken down I don’t necessarily have an

5 accounting of. I just get the final amount.

6 MAJORITY CHAIRMAN BARRAR: We had talked quite

7 extensively and w e ’re still searching for a mechanism to

8 give the counties the right to do their own tax like a

9 municipal service tax or the emergency service tax that we

10 allowed a few years ago, had $52. I think we took it up

11 from $10 to $52, but that’s the other thing we wrestle

12 with.

13 Believe me, in the two years w e ’ve been

14 researching this, w e ’ve had every type of proposal you can

15 imagine to tax everything possible. But w e ’ve gone from

16 percentages to dedicated funding and I mean it’s really

17 been tough because we understand the cost and we know just

18 about every county we talk to has implemented some type of

19 cost-cutting measures and cost-saving.

20 But again, w e ’re looking at a household with four

21 people possibly paying a $90-a-year tax with this current

22 fee increase of $1.50, which is still substantial. And so

23 if you can think of a way we could implement a county tax

24 which would give you your dedicated funding because we all

25 know that probably within 10, 15 years, the copper 161

1 wirelines will be gone. There won’t even be enough to

2 probably even make it worth your time to collect the dollar

3 from. It’s dying. So w e ’re looking for a way to replace

4 that and give the county that dedicated funding they’re

5 looking for. So if you have any ideas, more than glad to

6 hear from you.

7 Any of the Representatives have questions?

8 No? No one? Chairman?

9 Okay. Gentlemen, thank you for your testimony

10 today.

11 Oh, I ’m sorry. I didn’t see you there.

12 REPRESENTATIVE: So thank you, Mr. Chairman, and

13 thank you, Commissioner Pries and Stephen. I appreciate

14 you guys being here.

15 Your organization answers all the 911 calls in

16 Dauphin County?

17 MR. LIBHART: That’s correct.

18 REPRESENTATIVE: Nobody else does it. And you

19 know a lot about your revenue and expense, and you talk

20 about fluctuating revenue and your concerns, I mean

21 stability -- as our citizenry, w e ’re looking for stability

22 when we call you, that it gets dispatched properly and

23 quickly and effectively. But tell me about your expense.

24 Does it fluctuate drastically between one fiscal year and

25 another? 162

1 MR. LIBHART: The only time it does is if we have

2 to undertake a new capital purchase, which we have not done

3 in quite a while, the exception to that being in 2004 and

4 2005 we implemented a new public safety radio system

5 throughout the county. Since then, it’s been maintenance

6 of existing platforms, services, and employment. W e ’ve

7 actually decreased the amount of staff we have due to some

8 changes in our staffing models.

9 But essentially I know going in annually my

10 expenses are going to be between 6.8 and 7 million just for

11 the 911 operation, and that has actually been decreased

12 almost 8 percent since 2005 but that’s more of an outcome

13 from renegotiating some longer commitments to our existing

14 services rather than keeping them on shorter-term

15 maintenance agreements or leases.

16 REPRESENTATIVE: So your request that we

17 distribute the money through a formula is based on the fact

18 that your expenses are relatively flat or relatively

19 consistent I guess I might say.

20 MR. LIBHART: Right, but like anybody looking to

21 do an accurate accounting and budget, it’s one thing to

22 know your expenditures and your commitments going into next

23 year; it’s another thing when you’re going to have multiple

24 revenue sources, which revenue silos, for instance, are we

25 going to take from? And our concern over the years has 163

1 been up until 2007 we didn’t really ever have to contribute

2 any general fund county property tax dollars, and it has

3 escalated quickly since that time and despite not bringing

4 on any real new projects. Our tax dollars are being

5 committed to just maintain an existing level of service,

6 and conversely or at the same time, by doing that, w e ’re

7 taking available revenue from other county-funded programs

8 because you have to prioritize which one it is so -­

9 MR. PRIES: Yes, even though it impacts my

10 operation, it can also have a cascading impact on other

11 county agencies and offices.

12 REPRESENTATIVE: I got it. So you have concerns

13 about allocating a large percentage of the funds through a

14 grant process because it doesn’t give you the stability

15 that you’re looking -­

16 MR. LIBHART: You just don’t really have a

17 certain assurance of a minimum level of funding.

18 REPRESENTATIVE: Yes. Do you think that Dauphin

19 County is different than many other 911 centers throughout

20 the Commonwealth? Are you unique at all?

21 MR. LIBHART: In what regard?

22 REPRESENTATIVE: That your expenses are

23 relatively stable?

24 MR. LIBHART: No, I think it’s more a product of

25 what system somebody has implemented. I mean sometimes you 164

1 just get caught off guard where, due to a merger at the

2 corporate level, you find out with very short notice one of

3 your pieces of technology will no longer be supported and

4 that really puts you between a rock and a hard place.

5 W e ’ve been quite fortunate over the years that we haven’t

6 experienced that, but I know quite a few other counties

7 have at one point or the other experienced a scenario like

8 that, which has then created a situation where they needed

9 to fund a large project in relatively short order. I would

10 say the only thing unique about Dauphin County’s operation

11 is our client base includes almost every State agency and

12 State director. So if we mess up a response to one of

13 them, w e ’re going to become more infamous than famous.

14 REPRESENTATIVE: Okay. Yes, thank you so much

15 for your advocacy and your testimony and the hard work that

16 you put in this and being advocates for everyone throughout

17 the Commonwealth.

18 Thank you very much, Mr. Chairman.

19 MR. LIBHART: Thank you.

20 MAJORITY CHAIRMAN BARRAR: Representative Barbin.

21 REPRESENTATIVE BARBIN: Thank you, Mr. Chairman,

22 and thank you for your testimony. I came in late so this

23 might have been answered, but do you use the multiprotocol

24 label switching as part of your technology of your

25 countywide system? 165

1 MR. LIBHART: You mean the protocol-driving

2 questioning that was mentioned during previous testimony?

3 REPRESENTATIVE BARBIN: Yes.

4 MR. LIBHART: We actually use the exact same one.

5 REPRESENTATIVE BARBIN: Okay. And so that means

6 that you’re part of STARNet?

7 MR. LIBHART: We are not.

8 REPRESENTATIVE BARBIN: You’re not?

9 MR. LIBHART: I mean we have access to it but our

10 radio system is independent of STARNet.

11 REPRESENTATIVE BARBIN: All right. Well, then

12 I ’ll ask you the same question I asked the gentleman from

13 Philadelphia. If w e ’re planning to go forward with a 4G

14 network and you’re not using the existing network that we

15 have now, aren’t we going to be in the same position when

16 we build out whatever our next network is if we don’t

17 insist that all the counties use a network that we have?

18 Isn’t it going to be more costly?

19 MR. LIBHART: I mean we already had a network

20 that works and that’s why we -- we have access to it but

21 it’s not our sole means of communication.

22 REPRESENTATIVE BARBIN: Thank you.

23 MAJORITY CHAIRMAN BARRAR: Okay. Anyone else?

24 Thank you, gentlemen.

25 MR. PRIES: Thank you. 166

1 MR. LIBHART: Thank you.

2 MAJORITY CHAIRMAN BARRAR: Thank you for taking

3 time to be here. I appreciate it.

4 Our next testifier is Brian Barno with the

5 Broadband Cable Association of Pennsylvania.

6 Chairman Barrar, Chairman Sainato, good

7 afternoon. It's been a long day of the testimony and a lot

8 of volume of testimony, and I appreciate your patience and

9 I appreciate your still being around. Thank you.

10 I'm Brian Barno with Broadband Cable Association

11 of Pennsylvania. BCAP thanks the Committee for the

12 opportunity to testify on Title 35, the Public Safety

13 Emergency Telephone Act.

14 BCAP appreciates the work this Committee, PEMA,

15 the counties, emergency management professionals, and

16 telecom providers have put into this rewrite.

17 911 services, the ability to gain immediate

18 access to emergency dispatching of police protection or

19 life safety, is a benefit to each and every individual. It

20 is an important, valuable, and fundamental function of

21 government.

22 BCAP members provide IP voice services in the

23 Commonwealth. While we could support a reasonable increase

24 in the 911 fee, the proposed $2 monthly fee would be a 100

25 percent increase, which we oppose. 167

1 The expiration of the wireless 911 fee has

2 engendered a wide-ranging debate. There’s been an ongoing

3 cry from counties and public safety officials that they are

4 not bringing in enough revenue. This is despite the fact

5 that Pennsylvania has the third-highest 911 collections in

6 the Nation and leads the Nation in revenue per capita

7 according to statistics compiled by PEMA.

8 There was initial discussion and proposals tossed

9 around on expanding the funding base to every device that

10 could possibly contact a public safety answering point, not

11 only wireline, IP voice, and wireless, but iPads, Kindles,

12 Nooks, smart watches, maybe even ham radios. I even heard

13 a conversation about needing to identify every restaurant,

14 pizzeria, coffee shop, and retail establishment with a Wi­

15 Fi connection to make sure we got in front of that and

16 didn’t miss a potential revenue stream.

17 Under Armour is marketing a "wearable technology”

18 that, in addition to logging your pulse rate and how fast

19 you’re running per mile and your calories burned, could, if

20 a wearer was in distress, patch out a 911 message to a

21 PSAP. While it’s likely there may never be a "call" from a

22 piece of clothing, and the quest to get in front of

23 technology, do we draft language to collect 911 fees from

24 Under Armour or the retail shop that’s distributing the

25 product? These examples reinforce that it’s incredibly 168

1 difficult to impose legislation on the fast-changing world

2 of information technology.

3 We ’re told that next-gen 911 is a huge cost

4 driver. It will allow first responders the ability to see

5 digital photographs and full-motion video of accident

6 sites. This is really incredible. Let’s say there’s an

7 accident on the Turnpike or on I-84 and guaranteed you’re

8 going to have 5, 10, 15 calls coming from a cell phone.

9 Today, you’ll probably, if this was available, get two,

10 three, four, five people sending digital photographs in

11 addition. What if someone, like my kids do all the time,

12 sent a full-motion video using this? Do we have

13 dispatchers at 911 looking at photographs and video and

14 discerning what images are important? A computer scientist

15 friend of mine in State College said, yes, Brian, you could

16 pay for an algorithm that would pick each one of those

17 photos and get you a 360 angle if you wanted to do that.

18 But it comes down to what is truly necessary?

19 What do we need? What will it cost? When we have a next-

20 gen 911 technology conversation, we have to realize, and

21 this Committee has addressed it, that w e ’ve got some areas

22 in the State without reliable cell phone service.

23 In the cable/telecommunications industry, if we

24 took a trip down nostalgia lane, you’d find dozens of head-

25 ends and central offices in little communities around the 169

1 State. Now, all these areas are connected with fiber,

2 eliminating the need for dozens of individual offices. We

3 can now troubleshoot potential outages before they happen

4 and reroute traffic on redundant fiber paths.

5 Consolidating facilities is an efficient and

6 effective way to manage a complex telecommunications

7 system. It makes business sense. If anyone suggested we

8 go back to our infrastructure and system set up we had in

9 1985, they’d look at you like you had three heads. It

10 makes economic, managerial, and business sense to

11 consolidate facilities when you’re dealing with private

12 capital. Do taxpayers deserve anything less?

13 "If I were to build a PSAP system today from

14 scratch knowing what we know about network architecture and

15 emergency communications, there would likely be

16 considerably fewer PSAPs," said FCC Commissioner O ’Rielly

17 at a meeting of the Task Force on Optimal PSAP Architecture

18 in January. "By some estimate, the current structure would

19 be able to operate at optimal efficiency with as few as

20 three PSAPs nationwide. Others argue that there should be

21 no more than one PSAP per State," he said.

22 Pennsylvania’s Legislative Budget and Finance

23 Committee’s 911 study said the high cost per call in the

24 smallest counties suggest the need to further consolidate

25 some PSAPs. As we look at the software and hardware costs 170

1 of converting to next-generation 911 over the next five,

2 eight, ten years, we have to save money by consolidating

3 into regional PSAPs.

4 A regional or multicounty PSAP would apply the

5 principles of safety, efficiency, and access to best-

6 practice technology. Regional or multicounty PSAPs would

7 reduce capital expenditures for new equipment and repairs,

8 maintenance, and material costs could be reduced.

9 Consolidated operations would facilitate assessment of

10 overall call volume and staffing needs of the region as a

11 whole and create opportunities to eliminate excess

12 capacity.

13 "The historical concept of ’standalone’ PSAPs

14 contributes challenges such as duplication without

15 redundancy, excessive capacity, higher costs for

16 replacement, support and sustainability, multiple

17 maintenance and management arrangements, and the lack of

18 interoperability," PEMA has reported. The agency funded

19 the project, encouraging PSAPs to work with other regional

20 PSAPs in a shared regional assessment program, a critical

21 step in developing next-gen 911.

22 Any 911 funding formula the General Assembly

23 comes up with needs to seriously incent counties to

24 consolidate PSAPs on a regional basis. As Commissioner

25 O ’Rielly said at the public safety task force meeting, 171

1 "Part of your task is to help determine the number of PSAPs

2 that are necessary to operate an efficient network and do

3 so to the best of your ability, absent political

4 considerations. This function is to create a baseline upon

5 which to measure PSAP modernization as we convert to next-

6 gen 911."

7 My concern is that this language in the rewrite

8 will just mean more of the same. Unless counties have a

9 financial incentive to overcome political considerations,

10 Commissioner O ’Rielly, the ones he spoke of, the great

11 plans to upgrade to next-gen 911 technology is on a

12 regional basis, consolidate PSAPs, and maximize

13 efficiencies will just go up on the shelf.

14 Every several years, the counties come to the

15 General Assembly and tell them they need more money to fund

16 their 911 systems. In an attempt to allow the counties to

17 budget and spend what they think they need to fund the

18 systems, there is a proposal floating around that would

19 authorize counties to impose a next-generation 911 fee on

20 the residents and businesses in their jurisdiction. BCAP

21 and its member companies fully support that type of a plan.

22 It does not attempt to chase technology. It puts controls

23 on cost and funding for those controls in the hands of

24 County Commissioners and provides for more than adequate

25 funding. 172

1 When the original act was passed to help defray

2 the cost of 911 systems, almost every home and business had

3 a telephone line. The fee could have, and in retrospect

4 probably should have, been added to a different utility,

5 but no one at that time had the crystal ball to know where

6 w e ’d be today with technology.

7 BCAP believes that the only reason counties would

8 oppose such a stable funding opportunity is that it would

9 finally bring transparency to the use of tax dollars and

10 separate 911 from the rest of the budgets for police, fire,

11 and life safety.

12 Thank you for the opportunity to share our

13 perspective. I ’ll be happy to answer your questions.

14 MAJORITY CHAIRMAN BARRAR: Brian, would it be

15 legal; can we put a tax on broadband or would we have to

16 get FCC approval to do that?

17 MR. BARNO: I don’t think you can do that legally

18 right now is my understanding. And I ’m not certain about

19 that.

20 MAJORITY CHAIRMAN BARRAR: I ’ve heard from both

21 sides that one side says we legally can do it; the other

22 side says that we can’t do it without a change in the

23 regulations at the FCC or FCC approval.

24 MR. BARNO: I think again the conversation w e ’ve

25 had here about different devices that w e ’ve looked at over 173

1 the last few months, I looked for the top products for

2 Christmas presents for nine-year-olds and they ranged -­

3 number one was a cell phone, a high-quality cell phone.

4 Number two was a Kindle and number three was a Tony Hawk

5 skateboard. Okay? If we go number two, they've got a

6 Kindle, that individual is never going to be calling 911

7 through the Kindle but to download the book, I've got to go

8 out to the internet and bring that in.

9 So the question is do we keep chasing devices? I

10 would have never thought that Under Armour would have a

11 device with sensors in it with a plastic tab so when we're

12 watching a football game, that football player, the NFL

13 player, you'll be able to see his heart rate and pulse rate

14 and everything else up on the monitor up on the screen. So

15 obviously they're communicating using some device to get

16 out there, but is that something we need to look at? But

17 we've got to get in front of that because, God forbid,

18 there'll be another technology coming down the pike that

19 we've got to look at?

20 MAJORITY CHAIRMAN BARRAR: If we're sticking to

21 phones, to VoIP, to prepaid landlines and cell phones, why

22 would you oppose the $2 fee? It's not really affecting -­

23 I know VoIP is -­

24 MR. BARNO: If that's IP —

25 MAJORITY CHAIRMAN BARRAR: — over broadband 174

1 but -­

2 MR. BARNO: Our customers that have IP voice

3 service will have a doubling of a fee from $1 a month to $2

4 a month, so that’s significant.

5 But the bigger picture kind of what I ’m talking

6 about is that the longer-term here, w e ’re looking at next-

7 generation 911, not just texts to 911 but video and full-

8 motion video and whatever else comes down the pike with the

9 emergency management professionals in the next few years.

10 We can’t do that and be efficient with our tax dollars if

11 we have 59 PSAPs.

12 MAJORITY CHAIRMAN BARRAR: Yes, we would love to

13 see the number of PSAPs consolidated. I can guarantee if

14 we try to do that mandated in a bill, this bill isn’t going

15 to be done in June when we need it done because every

16 Representative that’s going to lose a PSAP center from his

17 county is going to block this bill and fight its passage.

18 So if we need this done by June 30th, any type of forced

19 consolidation -- we do incentivize. We take every effort,

20 we give PEMA -­

21 MR. BARNO: Right.

22 MAJORITY CHAIRMAN BARRAR: — quite a bit of

23 money in this bill to promote consolidation, which is I

24 think the best way to do it because it takes the politics

25 off the table. 175

1 Representative Tallman.

2 REPRESENTATIVE TALLMAN: Thank you, Mr. Chairman.

3 I just kind of want to follow up with Chairman

4 Barrar, his first question because I didn’t hear -- and

5 unfortunately I don’t think any of our telephone companies

6 are here. But when we met over in 60 East Wing, whenever

7 that was, our telephone and [inaudible] hey, it is legal

8 and our telephone companies and you were saying it’s not

9 legal, Federal law.

10 MR. BARNO: I think there was an argument there.

11 I know that if I -­

12 REPRESENTATIVE TALLMAN: So that argument is

13 still ongoing because I didn’t hear it from anybody -­

14 MR. BARNO: No.

15 REPRESENTATIVE TALLMAN: — and we were talking

16 all kinds of stuff about IP.

17 MR. BARNO: Yes.

18 REPRESENTATIVE TALLMAN: But you say that

19 argument is still there?

20 MR. BARNO: I don’t think that’s settled.

21 REPRESENTATIVE TALLMAN: Thank you.

22 MAJORITY CHAIRMAN BARRAR: Representative Barbin.

23 REPRESENTATIVE BARBIN: Thank you, Mr. Chairman.

24 Thank you, Mr. Barno, for your testimony today.

25 I agree with you 100 percent that if we charge $1 176

1 and w e ’re talking about charging $2, no matter who’s

2 included, I think it’s better to have as many people who

3 are really actually participating in the service that’s

4 being provided from 911. That’s a good idea. But from my

5 perspective, listening to some of the testimony, we had

6 written testimony today from Alcatel. They didn’t provide

7 it at the hearing but they did provide written testimony.

8 What I would like to know from your perspective is STARNet

9 is a process that is used as a backbone now. Do you

10 believe that we should be building on STARNet or that

11 STARNet should be part of our backbone as w e ’re

12 contemplating going to these additional costs?

13 MR. BARNO: I think first off w e ’ve got to take a

14 step back and look at -- even from a perspective of a cable

15 industry or the telephone industry, they’ve connected

16 central offices together with fiber. Is the PSAP in

17 Luzerne County connected to Lackawanna County, connected to

18 Wyoming County? I don’t know that. Maybe PEMA does or you

19 all do, but there are some real basics that have to be

20 defined first prior to going on to that.

21 I do know, take a half step in front of where you

22 were, the FirstNet, which is the Federal overall thing,

23 they had the initial meeting in Shippensburg two weeks ago.

24 We had some of our members that are there, so we are at

25 least in communication with them about that right now. 177

1 REPRESENTATIVE BARBIN: Well, here’s what I ’m

2 trying to get at: Their testimony is we started our

3 current existing backbone 15 years ago but lots of PSAPs -­

4 and I agree with you; there should be consolidation because

5 we should be trying to provide the cost to all the people

6 you have to bill at the lowest possible price. But part of

7 the question to me isn’t just whether or not we should

8 consolidate the PSAPs. Part of the question to me is

9 should we have, if w e ’re going to build out a whole new

10 system, an agreement before we do that and then require all

11 the PSAPs that are now in the consolidated group -­

12 MR. BARNO: Right.

13 REPRESENTATIVE BARBIN: — to use that network?

14 Because if we don’t, aren’t we exactly in the same position

15 we are now where for the last 10 years we went from 191

16 total cost to 291 million total cost, and during that same

17 period of time the counties’ percentage of that cost keeps

18 growing.

19 And this is if you can, what would be your take

20 on if we do consolidation, should we also do some general

21 agreement as to what the backbone should be for whatever

22 this 4G build-out is?

23 MR. BARNO: It seems to make sense. I ’m not a

24 technology guy but you don’t want to have disparate

25 technology systems county by county if you wanted them all 178

1 to communicate and get on that backbone, so it would make

2 sense to pursue that and take a look at that.

3 REPRESENTATIVE BARBIN: Thank you.

4 MAJORITY CHAIRMAN BARRAR: Any other questions?

5 Anyone?

6 Brian, thank you for your testimony.

7 And this concludes our fifth hearing on this in

8 two years if everyone is aware of that, and that doesn’t

9 count the dozens, and I mean dozens and dozens of meetings

10 that w e ’ve had in my conference room with every stakeholder

11 imaginable, and even I ’ve had a couple conferences in some

12 of the restaurants here where some of the stakeholders have

13 seen me and grabbed me and talked to me about their needs

14 in this bill.

15 We are planning to introduce this legislation,

16 the final draft where we hope to have it introduced by the

17 very 1st of April, and it will be House Bill 911; w e ’ve

18 reserved that number. And we are hoping to move it when we

19 come back to session on the beginning of the third week.

20 We will move it out of our Committee hopefully the third

21 week of April to try to keep with the June 30th timeline.

22 But we have put a lot into this. No other piece

23 of legislation I’ve been involved in -- it’s probably the

24 most important piece of legislation this Committee will

25 deal with in this year, if not for the next couple years it 179

1 seems like. But we have not drafted a bill and held

2 hearings on it. We’ve held hearings on a proposed bill,

3 which is unusual for the way things operate around here,

4 and so we are hoping that we have taken the suggestions of

5 every stakeholder that has come before this Committee and

6 has contacted us and we are going to do the best we can to

7 incorporate it into the bill.

8 But we hope to have this bill moved out of

9 Committee by the beginning of the third week of April and

10 hopefully to the House Floor the following week after that.

11 So if you have any ideas, if there’s any comments you need

12 to make, please grab Rick and Sean and let us know your

13 thoughts on it, and hopefully w e ’ll have the final draft to

14 you within the next couple weeks.

15 Chairman Sainato.

16 MINORITY CHAIRMAN SAINATO: Thank you, Chairman

17 Barrar. And I ’ll just echo what Chairman Barrar said.

18 This has been a very long, tedious process. We went to

19 every section of the State and the hearings w e ’ve had down

20 here and, as you see today, it’s been, what, 5-1/2 hours

21 worth. And we thank everybody. I look in the audience and

22 I still see people are still here and I think that’s a

23 credit in how important this legislation is to everybody,

24 and we do want your input.

25 And at the end of the day, public safety is the 180

1 most important issue I think in the State when you think

2 about it, and we have a responsibility to do that. And our

3 responsibility ends on June the 30th, so we will do our

4 best and continue to work with all of us up here.

5 I mean you see the Members that were here. This

6 is an off week. I think everyone understands that. We are

7 not in session and you've seen the number of Members

8 between yesterday and today. We had probably about 16, 17

9 Members of our Committee here and some are in and out

10 because they serve on Appropriations as well.

11 So we want to thank the Members, especially the

12 diehards who stuck it out all day today. So we do thank

13 you and thank everyone for participating.

14 Chairman.

15 MAJORITY CHAIRMAN BARRAR: Thank everyone for

16 your participation. This public hearing stands adjourned.

17 Thank you.

18

19 (The hearing concluded at 3:13 p.m.) 181

1 I hereby certify that the foregoing proceedings

2 are a true and accurate transcription produced from audio

3 on the said proceedings and that this is a correct

4 transcript of the same.

5

6

7 Christy Snyder

8 Transcriptionist

9 Diaz Data Services, LLC