Legislature(2003 - 2004)

03/10/2004 01:39 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
        SB 335-EMERGENCY SERVICES DISPATCH/911 SURCHARGE                                                                    
                                                                                                                                
CHAIR BERT STEDMAN  announced SB 335 to be  up for consideration.                                                               
He asked Senator Seekins to proceed.                                                                                            
                                                                                                                                
SENATOR  RALPH  SEEKINS,  sponsor,  asked  his  staff  member  to                                                               
present the bill.                                                                                                               
                                                                                                                                
JOE MICHEL,  legislative aide to Senator  Seekins, explained that                                                               
the bill relates to enhanced  911 surcharges. Enhanced 911, or E-                                                               
911,  shows  the  physical  location  and name  of  a  caller  to                                                               
emergency service dispatchers.  The purpose of SB 335  is to give                                                               
municipalities  more freedom  to  recover some  of  the costs  of                                                               
providing E-911 service to their community.                                                                                     
                                                                                                                                
Currently  there  is   a  statutory  ceiling  on   the  amount  a                                                               
municipality may collect  to pay for E-911  services. That amount                                                               
isn't  enough  to pay  the  overhead  so municipalities  have  to                                                               
recover those  costs from the  people through increased  taxes of                                                               
some sort.  SB 335  amends the statute  by raising  the surcharge                                                               
ceiling and by  instituting a surcharge for the  operation of the                                                               
E-911 service.                                                                                                                  
                                                                                                                                
The final change  this bill makes occurs on page  3, lines 18-20.                                                               
It says,  "The municipality may  only use the  emergency services                                                               
dispatch surcharge  for the  actual labor  and equipment  used to                                                               
provide emergency services dispatch."  That addition is to ensure                                                               
that municipalities  recover no more that  their operation costs.                                                               
Also, an annual review of the actual costs is required.                                                                         
                                                                                                                                
SENATOR GARY  STEVENS noted that  municipalities with  fewer than                                                               
100,000 people  could charge up  to $2.15 for E-911  services and                                                               
asked for verification  that they wouldn't recover  more than the                                                               
actual costs up to that limit.                                                                                                  
                                                                                                                                
MR. MICHEL  agreed and  reiterated that the  goal is  to transfer                                                               
the cost burden from the taxpayers.                                                                                             
                                                                                                                                
CHAIR STEDMAN told of an experience  he had recently, in which he                                                               
was  asked  to return  a  missed  call  to  someone in  a  nearby                                                               
community. When  he made  the call, he  discovered that  the cell                                                               
number was from the state of  Washington. He asked if that caller                                                               
would be paying the proposed fees  or would they be able to avoid                                                               
them.                                                                                                                           
                                                                                                                                
MR. MICHEL replied  they would avoid the fees.  He explained that                                                               
his  cell  phone  service  comes   from  Fairbanks  and  if  that                                                               
municipality instituted  a fee he  would pay that  fee regardless                                                               
of the fact  that he was using his phone  in Juneau. Furthermore,                                                               
the difference  between phases  I and II,  E-911 service  is that                                                               
911  calls  from  cell  phones   in  Alaska  can't  currently  be                                                               
triangulated. Unlike  a landline,  emergency cell phone  calls in                                                               
Alaska don't register a physical location.                                                                                      
                                                                                                                                
SENATOR KIM  ELTON noted that  this is  a per line  charge rather                                                               
than a per  household charge and asked whether  the sponsor might                                                               
consider the  latter rather than  the former. He reasoned  that a                                                               
number of  households have separate  computer and fax  lines that                                                               
wouldn't be  used to make  emergency calls.  "How did you  get to                                                               
the point  where you do it  per line rather than  per household,"                                                               
he asked.                                                                                                                       
                                                                                                                                
MR. MICHEL  responded by  saying that  the Fairbanks  mayor asked                                                               
the sponsor  to introduce the  bill, which  is a companion  to HB
461. As  written, the charge would  be per line, but  the sponsor                                                               
is open  to the change.  "The idea  was presented that  you could                                                               
provide evidence  that you  have a  fax line  and then  you'll be                                                               
able to take  that surcharge off your phone line.  So it would be                                                               
by household. It  would be the responsibility of  the resident to                                                               
turn that in to the phone  company. Those ideas have been brought                                                               
forward by different representatives."                                                                                          
                                                                                                                                
SENATOR GARY STEVENS remarked that  this bill attempts to recover                                                               
some  of  the  costs,  but  there  are  inequities  to  consider.                                                               
Referring to his  community, he said the City  of Kodiak provides                                                               
E-911 service  to the city  and a  much larger portion  of Kodiak                                                               
Island that is outside the city.                                                                                                
                                                                                                                                
MR.  MICHEL said  this  bill  is trying  to  address that.  Using                                                               
Fairbanks as  an example,  he said that  this would  transfer the                                                               
burden from  those paying property  tax to those with  phones who                                                               
therefore have the capability of dialing 911.                                                                                   
                                                                                                                                
SENATOR GARY  STEVENS asked  if 911  service extends  outside the                                                               
city or borough of Fairbanks.                                                                                                   
                                                                                                                                
MR. MICHEL deferred to Mr. Harris, director of police.                                                                          
                                                                                                                                
SENATOR ELTON assumed  that there is no  distinction made between                                                               
a business phone and a residential phone.                                                                                       
                                                                                                                                
MR. MICHEL agreed  there is no distinction. "If you  can dial 911                                                               
from it, the surcharges apply."                                                                                                 
                                                                                                                                
SENATOR ELTON  wanted to make  sure he understood  correctly that                                                               
the surcharge  would apply  to all lines,  but the  sponsor would                                                               
consider  change to  exclude lines  that weren't  used for  voice                                                               
calls.                                                                                                                          
                                                                                                                                
MR. MICHEL said  the sponsor would consider change  in that area,                                                               
but currently the surcharge would apply to fax and modem lines.                                                                 
                                                                                                                                
CHAIR STEDMAN opened public testimony.                                                                                          
                                                                                                                                
PATRICK COLE,  representative for the Fairbanks  mayor, testified                                                               
via  teleconference to  express support  for the  bill. Fairbanks                                                               
has been  working with  both the  borough and  the City  of North                                                               
Pole in  an effort  to find  ways to control  and or  recover the                                                               
cost of dispatch centers.                                                                                                       
                                                                                                                                
Referencing  an   earlier  question   about  service   areas,  he                                                               
explained that  under current law  a dispatch center  could serve                                                               
an area  that stretches beyond its  own boundaries. Specifically,                                                               
Kodiak may  serve beyond the  city boundaries, which  would allow                                                               
them  to   recover  some  cost   of  providing  service   to  the                                                               
surrounding area.                                                                                                               
                                                                                                                                
For at least  the last ten years  the law has provided  for a per                                                               
line charge. They have discussed  the possibility of not charging                                                               
for more  than one line, but  "this bill, as written,  solves our                                                               
short term  problem," he said.  It would enable  the municipality                                                               
to broaden  service and take  the burden off taxpayers  and place                                                               
it on users.                                                                                                                    
                                                                                                                                
SENATOR ELTON asked,  "If the bill is amended  to allow customers                                                               
to check off and not pay for  modem or fax lines, would that make                                                               
us  need to  revisit the  85 cents  per month  surcharge? I  mean                                                               
would you need to go up to 87 cents?"                                                                                           
                                                                                                                                
MR. COLE said he didn't know, but  he did know that the number of                                                               
landlines have  declined in the  last few years in  Fairbanks. "I                                                               
don't think  that allowing  a per  household [charge]  would hurt                                                               
things terribly, but we really don't know."                                                                                     
                                                                                                                                
SENATOR GARY  STEVENS asked if  the City of  Fairbanks subsidizes                                                               
their 911 services and if so, how much does it every year.                                                                      
                                                                                                                                
MR. COLE  said they spend  about $1 million  a year to  run their                                                               
center. "That includes  all our dispatch services.  Right now the                                                               
current surcharge only pays for the software and the equipment."                                                                
                                                                                                                                
ERIC  MOHRMANN testified  via  teleconference  from Fairbanks  to                                                               
represent the Interior Fire Chiefs  Association in support of the                                                               
bill. His department  is one of nine within the  borough and this                                                               
bill would help address their high and escalating costs.                                                                        
                                                                                                                                
PAUL  HARRIS,  Fairbanks  Police Department  director,  spoke  in                                                               
support of the bill.                                                                                                            
     Fairbanks Police  Department currently runs  a dispatch                                                                    
     center and  provides services  to the  Fairbanks Police                                                                    
     Department,  fire  department,  and  emergency  medical                                                                    
     services. We've just signed a  contract with North Pole                                                                    
     and we will  be providing those same  services to North                                                                    
     Pole and  we're working on contracts  with Delta, Delta                                                                    
     Rescue,  and  Deltana  to provide  services  out  there                                                                    
     along with the Salcha Rescue.                                                                                              
                                                                                                                                
     We support  this bill....  We think it  will help  us a                                                                    
     lot in  covering the  cost of  the dispatch  center. It                                                                    
     will provide funding  for the dispatch center  as we go                                                                    
     together. And  even if  we don't end  up in  a regional                                                                    
     dispatch center, we would end  up in that place like we                                                                    
     are now with five  different dispatch centers. Each one                                                                    
     of  those dispatch  centers would  receive funding  for                                                                    
     their operation from this bill.                                                                                            
                                                                                                                                
     The 911  surcharge is certainly  not a new  concept. AS                                                                    
     29.35.131 already provides for a  surcharge of up to 75                                                                    
     cents  on  every  telephone line  and  cell  phones  if                                                                    
     enhanced 911  services are offered. In  the [Fairbanks]                                                                    
     North  Star Borough,  we  haven't  charged against  the                                                                    
     cell phones.                                                                                                               
                                                                                                                                
     If you're  in Fairbanks and  you dial 911 on  your cell                                                                    
     phone, it  doesn't make  any difference  whether you're                                                                    
     inside  the  city  limits or  outside  in  the  borough                                                                    
     someplace.  It  all  rings into  the  Fairbanks  Police                                                                    
     Department  dispatch center.  So every  cell phone  911                                                                    
     [call] that is made rings  in. We have an operator that                                                                    
     picks  it  up  and  answers it,  finds  out  where  the                                                                    
     problem is and sends it to the right agency.                                                                               
                                                                                                                                
     There was a  comment made about what if  somebody has a                                                                    
     cell  phone in  Fairbanks and  is in  Juneau and  dials                                                                    
     911.  What  actually  happens  is   that  911  call  is                                                                    
     answered at the  Juneau 911 center and  they would know                                                                    
     that it  is in  the area. They  would not  know exactly                                                                    
     where that phone was located.  That's the same thing we                                                                    
     deal  with in  Fairbanks. The  911 rings  into us  from                                                                    
     Delta all the way down to past Nenana.                                                                                     
                                                                                                                                
     The surcharged  provided in the  current law  is barely                                                                    
     enough   just  to   cover  the   equipment  costs   for                                                                    
     maintenance  and  replacement. The  proposed  amendment                                                                    
     provides  money necessary  for  equipment upgrades  and                                                                    
     replacement  up to  85 cents  and additional  monies to                                                                    
     pay  for the  actual  operation  of emergency  dispatch                                                                    
     center up to $2.15.                                                                                                        
                                                                                                                                
     I don't believe that in  the North Star Borough that we                                                                    
     would  ever charge  the maximum  amount that's  allowed                                                                    
     under  this  proposed  amendment.  It's  possible  some                                                                    
     other jurisdictions  might do  that, but  as previously                                                                    
     stated, there's  language in the bill  that causes each                                                                    
     municipality to  go back and  look at it every  year so                                                                    
     that ... the surcharge then  can then be adjusted up or                                                                    
     down to cover the actual costs of the dispatch center.                                                                     
                                                                                                                                
     The current  surcharge that  we have  does not  pay for                                                                    
     the cost  of a well-trained  dispatcher 24/7  to answer                                                                    
     the call. Right now the  money that is collected on the                                                                    
     surcharge  simply   pays  for   you  to  pick   up  the                                                                    
     telephone,  dial  911,  it  to  ring  into  a  dispatch                                                                    
     center.  That's  all that's  paid  for  at this  point.                                                                    
     There's  nothing  provided  to   pay  for  somebody  to                                                                    
     actually lean  down and  pick up  the headset  and say,                                                                    
     "Hello  this is  the Fairbanks  Dispatch Center."  That                                                                    
     cost is all covered by the local governments.                                                                              
                                                                                                                                
     I think  it's also important to  recognize that there's                                                                    
     nothing in  this proposed  legislation that  requires a                                                                    
     municipality  to   charge  the  maximum   amount.  That                                                                    
     question has come  up several times and it  needs to be                                                                    
     made clear that the amount  that's put into this is the                                                                    
     maximum  amount that  can be  charged, but  it's not  a                                                                    
     requirement that anybody charge that amount.                                                                               
                                                                                                                                
     We  feel  that   now,  especially  with  municipalities                                                                    
     having  difficult  times  financially,  this  amendment                                                                    
     allows  the opportunity  to pay  for critical  services                                                                    
     without going  back to the  property owners  and laying                                                                    
     it on the  taxpayers. We support this  amendment and we                                                                    
     encourage you to support it.                                                                                               
                                                                                                                                
SENATOR ELTON thanked  Mr. Harris for extending  him the courtesy                                                               
of  meeting with  him prior  to  the hearing  and apologized  for                                                               
neglecting to ask about the  following: Consider a small business                                                               
owner with  a couple  of employees. When  you consider  that they                                                               
might have  a fax line, a  modem line, employee lines  and a cell                                                               
phone at  work and nearly  as many lines at  home. I can  see the                                                               
monthly surcharge for this one  small businessperson amounting to                                                               
$8.50 if  they have 10  different lines. In comparison,  he said,                                                               
someone else  pays for my  work phone and at  home I pay  for one                                                               
landline and  my cell phone.  "And so my  bill is $1.60.  I'm one                                                               
person and  that is  one person and  yet they're  supporting this                                                               
enhanced 911  service and the dispatch  call service at a  rate 3                                                               
to 4 times what I'm paying. And how do you get around that?"                                                                    
                                                                                                                                
MR. HARRIS  replied you  have to  justify it  by saying  that any                                                               
time  there is  a  phone  line with  voice  call capability  it's                                                               
available  for  a  911  call  24/7 and  you're  paying  for  that                                                               
service. He  runs a dispatch  center and can easily  justify that                                                               
in his own  mind because he knows the kinds  and numbers of calls                                                               
that  come  in. He  understood  the  concern,  but he  asked  for                                                               
recognition of the  fact that most fax phones have  a handset and                                                               
are therefore available  for voice communication. If  the bill is                                                               
amended   to  exempt   phones  that   aren't   meant  for   voice                                                               
communication,  he  didn't  know   that  they  would  be  greatly                                                               
impacted. The reason he can say  that is because of the increased                                                               
cell phone  usage. "Cell phones  are getting  to be used  so much                                                               
that that's what we need to charge it to."                                                                                      
                                                                                                                                
SENATOR  ELTON  said  you're  looking  at  that  from  a  logical                                                               
perspective and  "the thing  is, we sometimes  think too  much in                                                               
this building  and there are  several logical  perspectives." One                                                               
such perspective  is that the person  who pays a surcharge  on 10                                                               
lines and the  one who pays a surcharge on  two lines are equally                                                               
likely to  call 911. From  that perspective, one  person's access                                                               
is worth  more per month  than another's, particularly  when it's                                                               
more and more  likely that both individuals would  use their cell                                                               
phone to place a 911 call.                                                                                                      
                                                                                                                                
MR.  HARRIS reasoned  that the  cost of  the equipment  for those                                                               
phones  to have  access doesn't  go down  if there  are two  less                                                               
phones, which is justification for  spreading the cost over every                                                               
phone.                                                                                                                          
                                                                                                                                
CHAIR STEDMAN  asked whether  there were  any other  questions or                                                               
comments and if not he was ready for a motion.                                                                                  
                                                                                                                                
SENATOR ELTON  remarked that  a lot of  the issues  the committee                                                               
raised  could be  addressed at  the local  level where  decisions                                                               
could  be made  regarding  how  to assess  the  charge and  which                                                               
phones would be  exempt. Although that has  a certain attraction,                                                               
he asked  whether the committee  should consider an  amendment to                                                               
exempt  certain kinds  of lines.  The  sponsor's staff  indicated                                                               
that  they  are  open  to  the change.  The  change  wouldn't  be                                                               
dramatic and  the phone owner would  still have to apply  for the                                                               
exemption.                                                                                                                      
                                                                                                                                
"I  don't know  what the  rest of  the committee  feels about  an                                                               
amendment  like that,  but I  think in  Finance they'll  probably                                                               
just be looking  at the numbers. They're not going  to be looking                                                               
at the policy  in general so I'd like to  hear from other members                                                               
of the committee about it."                                                                                                     
                                                                                                                                
SENATOR GARY  STEVENS agreed that  the committee  should consider                                                               
such  an  amendment and  there  was  time to  do  so  in the  CRA                                                               
Committee.                                                                                                                      
                                                                                                                                
CHAIR STEDMAN commented  that in his previous life  he dealt with                                                               
bringing phone  systems into  the Municipality  of Sitka  and the                                                               
issue of surcharges for multiple  lines came up. They decided not                                                               
to exclude any phones so the  cost was spread over all phones. At                                                               
that time it  was an inconsequential expense, but  that isn't the                                                               
case here.                                                                                                                      
                                                                                                                                
With  that, he  announced he  would hold  SB 335  until the  next                                                               
meeting to allow time for an amendment.                                                                                         
                                                                                                                                
SENATOR ELTON suggested  that the sponsor has  already spent time                                                               
considering  this change  and perhaps  he would  consider working                                                               
with the Chair's office to draft an amendment.                                                                                  

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