Annual Report February 28, 2011

Transcription

1 2010 state of florida E911 Board Annual Report February 28, 2011 Mission Statement: To provide to the residents and visitors of the State of Florida the most technologically efficient and cost effective E911 services available within the funding allowances. Presented to: Honorable Governor Rick Scott Honorable President Mike Haridopolos Honorable Speaker Dean Cannon E911 Board Members Charles J. Ghini, Chair James G. Smith, II, Vice Chair Deborah S. Caruthers L. Carolyn Dill-Collier Charles C. Freeman Marilyn M. Haroutunian William T. Reid Judy D. Spencer

2 The Honorable Rick Scott, Governor Office of the Governor 400 South Monroe Street PL05 The Capitol Tallahassee, Florida Dear Governor Scott: February 28, 2011 The State of Florida E911 Board respectfully submits its 2010 Annual Report. All counties currently report operational Enhanced 911 (E911) systems, which provide lifesaving emergency 911 assistance. Florida is continuing Next Generation 911 (NG-911) migration, while working on the implementation of new E911 system accuracy requirements. The E911 Board continues to assist counties with E911 system improvements and funding during this period of reduced E911 fee revenues. Highlights of some of the year s accomplishments include: The E911 Board implemented a five-percent allocation change (increasing county disbursements and reducing service provider cost recovery reserves), thereby increasing funding to the counties. The E911 Board approved a one-time special disbursement of $8 million from the Emergency Communications Number E911 System Fund (E911 Trust Fund), which was provided to assist the counties with reduced E911 fee revenues and to help with funding for the mandatory Department of Health (DOH) 911 public safety telecommunicators certification and training. The E911 Board developed rules on grant programs (rural county and state), service provider fee remittance requirements (including clarification for bundled Primary Rate Interface and T1 circuits), and county carry-forward funding and excess recovery. The E911 Board provided an E911 State Grant Program as part of administering the E911 Trust Fund to support counties in deploying new E911 and NG-911 systems. The E911 Board completed the challenges in implementing program modifications mandated by 2010 statutory changes. The following items highlight the year s financial activities: $123 million was collected from the E911 fee to support E911 in Florida. E911 fee revenues continued to decline in 2010, as revenues decreased $2.5 million, attributable to current economics, an increased prepaid wireless customer base, and related technology trends. The E911 Board approved the disbursement of $122 million to help maintain, upgrade, and support operational E911 systems. Board Members: Deborah S. Caruthers L. Carolyn Dill-Collier Charles C. Freeman Charles J. Ghini Marilyn M. Haroutunian William T. Reid James G. Smith, II Judy D. Spencer

3 Florida E911 Board 2010 Annual Report February 28, 2011 Page Two This is a challenging time for the E911 Board and counties, with the technology migration and current economic and funding issues, to manage transition to Internet Protocol (IP) network-based E911 systems. Momentum is escalating to provide the public with new 911 communications technologies statewide. The progression in E911 systems, called NG-911, is being designed to handle voice, data, and video over a standardized IP-based platform. Congress and Federal agencies are increasing efforts to regulate advanced technologies and NG-911 to ensure access to emergency services. E911 Board involvement is critical to development ofng-911 statewide. The E911 Board's mission and primary goal is to provide the residents and visitors of the State of Florida with the most technologically efficient and cost-effective E911 services within available funding allowances. Service provider and regulatory issues must be addressed in the development of call routing and message services for NG-911. The focus of the 911 community in the coming years will be on NG-911 system migration and additional training for 911 public safety telecommunicators. The ability to access emergency assistance and the implementation of enhancements to the 911 systems within the State of Florida is largely due to the efforts and continuing support of the Governor and the Florida Legislature. This report is respectfully submitted to you with the unanimous support of all eight (8) current members of the State of Florida E911 Board. The E911 Board acknowledges the service and efforts of four former members that served on the 2010 E911 Board, including Sandi L. Chernoff, Andrew M. Feeney, John C. Ford, and Kim L. Paxton. By our signature below, the E911 Board reaffirms its dedication to provide and improve Florida's Enhanced 911 systems. Sincerely, ~Y\~ ames G. Smith, II Vice Chair ~~ eborah S. Caruthers ~<j}~ l J yd. Spencer.

4 The Honorable Mike Haridopolos, President The Florida Senate 404 South Monroe Street Suite 409 The Capitol Tallahassee, Florida Dear President Haridopolos: February 28, 2011 The State of Florida E911 Board respectfully submits its 2010 Annual Report. All counties currently report operational Enhanced 911 (E911) systems, which provide lifesaving emergency 911 assistance. Florida is continuing Next Generation 911 (NG-911) migration, while working on the implementation of new E911 system accuracy requirements. The E911 Board continues to assist counties with E911 system improvements and funding during this period of reduced E911 fee revenues. Highlights of some of the year s accomplishments include: The E911 Board implemented a five-percent allocation change (increasing county disbursements and reducing service provider cost recovery reserves), thereby increasing funding to the counties. The E911 Board approved a one-time special disbursement of $8 million from the Emergency Communications Number E911 System Fund (E911 Trust Fund), which was provided to assist the counties with reduced E911 fee revenues and to help with funding for the mandatory Department of Health (DOH) 911 public safety telecommunicators certification and training. The E911 Board developed rules on grant programs (rural county and state), service provider fee remittance requirements (including clarification for bundled Primary Rate Interface and T1 circuits), and county carry-forward funding and excess recovery. The E911 Board provided an E911 State Grant Program as part of administering the E911 Trust Fund to support counties in deploying new E911 and NG-911 systems. The E911 Board completed the challenges in implementing program modifications mandated by 2010 statutory changes. The following items highlight the year s financial activities: $123 million was collected from the E911 fee to support E911 in Florida. E911 fee revenues continued to decline in 2010, as revenues decreased $2.5 million, attributable to current economics, an increased prepaid wireless customer base, and related technology trends. The E911 Board approved the disbursement of $122 million to help maintain, upgrade, and support operational E911 systems. Board Members: Deborah S. Caruthers L. Carolyn Dill-Collier Charles C. Freeman Charles J. Ghini Marilyn M. Haroutunian William T. Reid James G. Smith, II Judy D. Spencer

5 Florida E911 Board 2010 Annual Report February 28, 2011 Page Two This is a challenging time for the E911 Board and counties, with the technology migration and current economic and funding issues, to manage transition to Internet Protocol (IP) network-based E911 systems. Momentum is escalating to provide the public with new 911 communications technologies statewide. The progression in E911 systems, called NG-911, is being designed to handle voice, data, and video over a standardized IP-based platform. Congress and Federal agencies are increasing efforts to regulate advanced technologies and NG-911 to ensure access to emergency services. E911 Board involvement is critical to development ofng-911 statewide. The E911 Board's mission and primary goal is to provide the residents and visitors of the State of Florida with the most technologically efficient and cost-effective E911 services within available funding allowances. Service provider and regulatory issues must be addressed in the development of call routing and message services for NG-911. The focus of the 911 community in the coming years will be on NG-911 system migration and additional training for 911 public safety telecommunicators. The ability to access emergency assistance and the implementation of enhancements to the 911 systems within the State of Florida is largely due to the efforts and continuing support of the Governor and the Florida Legislature. This report is respectfully submitted to you with the unanimous support of all eight (8) current members of the State of Florida E911 Board. The E911 Board acknowledges the service and efforts of four former members that served on the 2010 E911 Board, including Sandi L. Chernoff, Andrew M. Feeney, John C. Ford, and Kim L. Paxton. By our signature below, the E911 Board reaffirms its dedication to provide and improve Florida's Enhanced 911 systems. Sincerely, Q~~~ ames G. Smith, IT Vice Chair ~~~ Deborah S. aru ers aries C. Freeman ilhy4p~ ij Judy D. Spencer

6 The Honorable Dean Cannon, Speaker Florida House of Representatives 402 South Monroe Street Suite 420 The Capitol Tallahassee, Florida Dear Speaker Cannon: February 28, 2011 The State of Florida E911 Board respectfully submits its 2010 Annual Report. All counties currently report operational Enhanced 911 (E911) systems, which provide lifesaving emergency 911 assistance. Florida is continuing Next Generation 911 (NG-911) migration, while working on the implementation of new E911 system accuracy requirements. The E911 Board continues to assist counties with E911 system improvements and funding during this period of reduced E911 fee revenues. Highlights of some of the year s accomplishments include: The E911 Board implemented a five-percent allocation change (increasing county disbursements and reducing service provider cost recovery reserves), thereby increasing funding to the counties. The E911 Board approved a one-time special disbursement of $8 million from the Emergency Communications Number E911 System Fund (E911 Trust Fund), which was provided to assist the counties with reduced E911 fee revenues and to help with funding for the mandatory Department of Health (DOH) 911 public safety telecommunicators certification and training. The E911 Board developed rules on grant programs (rural county and state), service provider fee remittance requirements (including clarification for bundled Primary Rate Interface and T1 circuits), and county carry-forward funding and excess recovery. The E911 Board provided an E911 State Grant Program as part of administering the E911 Trust Fund to support counties in deploying new E911 and NG-911 systems. The E911 Board completed the challenges in implementing program modifications mandated by 2010 statutory changes. The following items highlight the year s financial activities: $123 million was collected from the E911 fee to support E911 in Florida. E911 fee revenues continued to decline in 2010, as revenues decreased $2.5 million, attributable to current economics, an increased prepaid wireless customer base, and related technology trends. The E911 Board approved the disbursement of $122 million to help maintain, upgrade, and support operational E911 systems. Board Members: Deborah S. Caruthers L. Carolyn Dill-Collier Charles C. Freeman Charles J. Ghini Marilyn M. Haroutunian William T. Reid James G. Smith, II Judy D. Spencer

7 Florida E911 Board 2010 Annual Report February 28,2011 Page Two This is a challenging time for the E911 Board and counties, with the technology migration and current economic and funding issues, to manage transition to Internet.Protocol (IP) network-based E911 systems. Momentum is escalating to provide the public with new 911 communications technologies statewide. The progression in E911 systems, called NG-911, is being designed to handle voice, data, and video over a standardized IP-based platform. Congress and Federal agencies are increasing efforts to regulate advanced technologies and NG-911 to ensure access to emergency services. E911 Board involvement is critical to development ofng-911 statewide. The E911 Board's mission and primary goal is to provide the residents and visitors of the State of Florida with the most technologically efficient and cost-effective E911 services within available funding allowances. Service provider and regulatory issues must be addressed in the development of call routing and message services for NG The focus ofthe 911 community in the coming years will be on NG-911 system migration and additional training for 911 public safety telecommunicators. The ability to access emergency assistance and the implementation of enhancements to the 911 systems within the State of Florida is largely due to the efforts and continuing support of the Governor and the Florida Legislature. This report is respectfully submitted to you with the unanimous support of all eight (8) current members of the State of Florida E911 Board. The E911 Board acknowledges the service and efforts of four former members that served on the 2010 E911 Board, including Sandi L. Chernoff, Andrew M. Feeney, John C. Ford, and Kim L. Paxton. By our signature below, the E911 Board reaffirms its dedication to provide and improve Florida's Enhanced 911 systems. Sincerely, ~~6r~ Deborah S. Caruthers ~am!c;'s~ Vice Chair o ~~~==~=7~~~_U00 6 ares C. Freeman ~~~ Ju yd. Spencer

8 E911 Board 2010 Annual Report Table of Contents A. INTRODUCTION... 1 B. EXECUTIVE SUMMARY SIGNIFICANT FINDINGS CURRENT E911 STATUS FINANCIAL HIGHLIGHTS LEGISLATIVE CHANGE IMPLEMENTATION LEGISLATIVE RECOMMENDATIONS... 5 C. E911 BOARD, FEE, LEGISLATIVE INITIATIVES AND PROGRAM... 5 D. E911 TRUST FUND RECEIPTS AND DISBURSEMENTS WIRELESS RECEIPTS FOR CALENDAR YEAR NONWIRELESS RECEIPTS FOR CALENDAR YEAR DISBURSEMENTS FOR CALENDAR YEAR EMERGENCY COMMUNICATIONS NUMBER E911 SYSTEM FUND ASSETS AND BALANCE E. STATUS OF ENHANCED 911 SERVICES PHASE I WIRELESS SERVICE PHASE II WIRELESS SERVICE IMPLEMENTATION ISSUES NEXT GENERATION F. E911 STATE GRANT PROGRAM STATUS AND RECOMMENDATIONS G. LONG TERM STRATEGIC INITIATIVES STATEWIDE E911 ROUTING STATEWIDE E911 MAPPING STATEWIDE E911 CALL TAKER E-TRAINING REGIONAL ENHANCED 911 BACKUP PUBLIC SAFETY ANSWERING POINT STATEWIDE E911 MANAGEMENT INFORMATION SYSTEM H. ENHANCE 911 ACT GRANT PROJECT STATEWIDE E911 ROUTING REGIONAL E911 MAPPING STATEWIDE E911 CALL TAKER AND 911 PERSONNEL E-TRAINING REGIONAL ENHANCED 911 BACKUP/TRAINING PUBLIC SAFETY ANSWERING POINT I. DESCRIPTION OF E911 SERVICE DATA EVALUATION J. RESULTS OF E911 SERVICE DATA EVALUATION COUNTY PROJECTION ANALYSIS RURAL COUNTIES PROJECTION ANALYSIS LOCAL EXCHANGE CARRIER SERVICE PROJECTION ANALYSIS DECREASING NONWIRELESS REVENUES WIRELESS SERVICE PROVIDER PROJECTION ANALYSIS TOTAL COST (EXPENDITURE) AND FEE (REVENUE) ANALYSIS E911 TRUST FUND BALANCE ANALYSIS K. CONCLUSIONS E911 BOARD ADMINISTRATION OF PERCENTAGE ALLOCATION LEGISLATIVE RECOMMENDATIONS LEADERSHIP SUPPORT L. FEDERAL ISSUES M. 911 DISABILITY ACCESS N. OTHER OUTSTANDING ISSUES O. FINANCIAL REPORT Appendix 1. Emergency Communications Number E911 System Fund Financial Report Appendix 2. Financial and Funding Data from County Funding Survey Appendix 3. Historical Data, Calculations and Projections Appendix 4. Glossary of Terms i

9 E911 Board 2010 Annual Report A. INTRODUCTION The E911 Board is pleased to provide this annual report, as required by Florida Statute (6)(c), which reflects the quarterly and annual receipts and the purposes of disbursements from the Emergency Communications Number E911 System Fund (E911 Trust Fund). This report: evaluates the availability and status of implementation of Enhanced 911 (E911) service in Florida; examines future concerns and direction related to providing E911 services; appraises reasons for making or not making an adjustment to the fee; analyzes the revenues Florida received for wireless and nonwireless E911 fees, and the expenditures including: o o o counties costs to operate and maintain their E911 systems; service provider costs; and E911 Board administration costs. The E911 Board prepares this annual report for submission on or before February 28, 2011, to the Executive Office of the Governor, President of the Senate, and Speaker of the House of Representatives. Because of the continued interest, importance, and impact on the public safety system, the E911 Board also simultaneously posts the report on the Florida E911 website 1 for online review by members of the Senate and House of Representatives; Boards of County Commissions; 911 Coordinators; sheriffs; police, fire, and medical services; state agency and local government department personnel; members of the Florida Telecommunications Industry Association (FTIA); Florida Association of Counties (FAC); Florida League of Cities; Federal Communications Commission (FCC); Department of Homeland Security; Emergency Operations personnel; and the citizens of Florida. 1 See E911 Board 2010 Annual Report Page 1 of 42 2/28/2011

10 E911 Board 2010 Annual Report B. EXECUTIVE SUMMARY The public perception of 911 services is continually evolving based on new technology and new telecommunication devices. Originally, call answering, call back and location determination were the desired lifesaving features for E911 systems. Now, the public is requesting a way to modify the 911 call to be a request for emergency assistance. This includes incorporating text, data, images and video from various telecommunications devices. Currently, call taking ability for dispatching of emergency services is augmented to include emergency pre-arrival instructions 2 to assist the caller with emergency situations. Providing rapid direct access to public safety agencies now includes providing assistance during the 911 call, while responding personnel are en route to the emergency location. The necessity to advance the E911 systems and capabilities statewide is increasing and includes the need to incorporate Internet Protocol (IP) capabilities for networking to handle the new technology communication devices. Next Generation 911 (NG-911) is the next advancement in E911 systems. It is more than just an extension of E911; it involves the transition to a managed IP network for routing and delivery of 911 emergency requests (calls or messages) from a variety of devices and services to the appropriate Public Safety Answering Point (PSAP). Congress and Federal agencies are increasing efforts to regulate advanced technologies and NG-911 to ensure access to emergency services. Currently, all counties report operational E911 systems providing lifesaving features, including call answering, call back and location determination. Florida is continuing NG-911 migration, while working on the implementation of new FCC system accuracy requirements for E911 systems. E911 Board involvement is critical to the development of NG-911 statewide. Service provider and regulatory issues must be addressed in the development of call routing and message services for NG-911. Additionally, the E911 Board involvement with new technology devices that access the Internet is essential, as these devices place increased demands on the E911 system. With these added demands, it is essential that these services pay an equitable share to support the E911 system. E911 fee revenues continued to decrease in The decrease is primarily attributed to a consumer trend to switch to telecommunication devices and services that do not collect and remit the E911 fee but still provide access to public safety 911 services. The decrease is also partially attributable to the current economic conditions. E911 fee revenues decreased approximately $2.5 million, which includes a two percent increase in the wireless E911 fee revenue and a seven percent decrease in nonwireless 3 E911 fee revenue. 2 Emergency Medical, Police and Fire Dispatch. 3 Nonwireless services include local exchange companies access lines, Voice over Internet Protocol (VoIP) and specialty services (telematics, satellite and other voice services) that access 911 public safety. E911 Board 2010 Annual Report Page 2 of 42 2/28/2011

11 The E911 Board implemented an allocation percentage change and a special disbursement from the E911 Trust Fund to assist counties with reduced E911 fee revenue due to the suspension of prepaid fee remittances and to help fund the mandatory 911 public safety telecommunicator certification and training. The E911 Board continues to provide training, coordination, technical support and funding distribution to advance the deployment of E911 systems in the state. The E911 Board completed the challenges in implementing program modifications mandated by 2010 statutory changes. This included rule development on the County E911 fee revenue capital carry forward percentage increase from 20 percent to 30 percent. In addition to the rules for carry forward and excess recovery of revenues, the E911 Board developed rules for service provider E911 fee remittance and clarification for the PRI and T-1 E911 fee remittance. The E911 Board also updated the Rural County and State E911 Grant Programs applications and rules. The Rural County Grant Program helped move Florida counties to finalize complete implementation and maintain wireless Phase I 4 and Phase II 5 capabilities throughout the state. It is still the major contributing factor to maintaining E911 services and preventing a regression to basic 911 services. The E911 Board helped eligible counties through E911 Rural County and State Grant Programs resolve E911 implementation issues and begin the development of NG- 911 through funding and technical assistance. The E911 Board also continues to work with the Department of Management Services (DMS) to implement a U.S. DOT/DOC 6 $2.67 million matching grant to help counties increase their 911 capabilities for the welfare of Florida s citizens and visitors. Landline E911 and Wireless Phase I and II 7 E911 systems are being maintained and updated throughout Florida, while work is progressing on the advancement of 911 services. This is accomplished through the ongoing cooperation between all stakeholders, including the county 911 coordinators, wireless industry, nonwireless industry and 911 service providers with the E911 Board serving as the catalyst. Continued support of the Florida Legislature and Governor s Office is essential to maintain Florida s position as a national leader in E911 services. 1. Significant Findings Current E911 Status 67 counties maintain E911 Phase I and II systems. 18 rural, medium, and large counties received $3,408,912 in total disbursements in 2010 through the E911 State Grant Program to support their E911 systems. 27 rural counties received $1,827,028 in total disbursements in 2010 through the E911 Rural County Grant Program to support their E911 systems. 4 Phase I provides the call back number and general location based on the tower identified. 5 Phase II provides the call back number and more accurate location information. 6 National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT); National Telecommunications and Information Administration (NTIA), Department of Commerce (DOC) ENHANCE 911 Act Grant Program. 7 See Section E for more information about Phase I and Phase II. E911 Board 2010 Annual Report Page 3 of 42 2/28/2011

12 2. Financial Highlights The E911 Board collected $123,059,300 from the E911 fee to support E911 in Florida. In 2010, the E911 Board approved service provider and county disbursements 8 and administrative costs that totaled $122,745,412 to support E911 in Florida. o o o o The E911 Board approved the disbursement of $109,368,507 to counties to help support operational E911 systems. The E911 Board distributed $12,488,905 to wireless service providers for actual costs of implementing and maintaining wireless E911 in Florida. Wireless service provider cost recovery required approximately 16 percent 9 of the wireless fee in E911 Board expense disbursements totaled $888,000 for necessary auditing, legal, administrative and technical staff support and administrative expenditures. Nonwireless Local Exchange Carriers (LEC) costs 10, E911 Board administration costs and submitted wireless service providers costs were covered at 100 percent in Disbursed E911 revenues provided 49 percent of the counties actual costs for allowable E911 expenditures in their individual fiscal year Legislative Change Implementation The following modifications to the E911 statutes were passed into law during the 2010 legislative session. Increase in county carry forward funding from 20 percent to 30 percent 12 of the fee revenue received for E911 equipment. Suspension of prepaid fee remittances until July 1, Increased allowable expenditures to include funding for the mandatory Department of Health (DOH) 911 public safety telecommunicators certification and training. The E911 Board implemented an allocation change, an E911 State Grant Program and a special disbursement to assist the counties with reduced revenues and the costs associated with the E911 systems and the DOH 911 Public Safety Telecommunicators training costs. 8 Includes County fee revenue, Rural County and State Grant Programs, interest and special disbursements. 9 Based on E911 Board approved cost recovery disbursements and actual fee collected data. 10 Some VoIP providers are starting to bill provider costs directly to the subscribers. 11 Based on actual county and E911 Board data - See Appendix 2 (Percent E911 Fee & Board Assistance of Total Expenses including interest, supplemental disbursements, and rural county and state grants). 12 Total funds disbursed to the county by the E911 Board during a calendar year for expenditures for capital outlay, capital improvements, or equipment replacement. E911 Board 2010 Annual Report Page 4 of 42 2/28/2011

13 4. Legislative Recommendations The E911 Board reviewed potential 2011 legislative issues at the E911 Board meetings with the telecommunications industry, retail association and counties (through their 911 coordinators). The following items are being suggested for inclusion in future legislation. Modify E911 Board Annual Report to reflect the state fiscal year annual reporting period rather than calendar year annual reporting period. Modify carry forward and excess cost recovery reporting period to county fiscal year. Modify the definition of rural county to be based on unincarcerated population. Modify authorized expenditures of E911 Fees for County 911 personnel expenditures and include vehicle expenditures, but limit it to the portion that is E911 related. Eliminating outdated provisions and language from the statutes. Modify some language for clarification. Modernize the statutes to manage and administer Next Generation 911. C. E911 BOARD, FEE, LEGISLATIVE INITIATIVES AND PROGRAM The E911 Board, established by the Florida Legislature in 2007, is comprised of nine members. The DMS secretary designates the chair of the E911 Board. The governor appoints four members who are county 911 coordinators and four members from the telecommunications industry. Modifications to improve the member selection process for Governor s Office notification have been recommended and are included in the Legislative Recommendations section. The E911 Board meets monthly with the goal of making Florida a national leader in E911 services. The E911 Board and DMS provide unified leadership for all E911 issues through planning and coordination. The E911 Board addresses issues related to E911 system functions, features and operations to enhance or improve 911 services in this state and considers emerging technology and potential cost savings for the benefit and safety of our residents and visitors. The duties and responsibilities of the E911 Board include: Oversee the E911 statutes 13, which include all wireless and nonwireless service providers, and address E911 issues for new technology and devices. Administer the E911 user fees in a fair and consistent manner, regardless of technology. 14 Utilize the E911 Trust Fund exclusively for needed wireless service provider cost recovery and county E911 systems and services. The E911 Board provides coordination, support and technical assistance to counties to promote the deployment of E911 systems in the state. The E911 Board also provides coordination, technical and financial support for educational opportunities related to Florida s E911 issues for the 911 communities. 13 Florida Statutes and E911 fees are to be applied to all devices capable of accessing E911 services; e.g. satellite, VoIP, telematics, etc. E911 Board 2010 Annual Report Page 5 of 42 2/28/2011

14 In addition to providing assistance with, and monitoring, the implementation and operation of E911 systems by the counties and wireless service providers, the E911 Board also administers the E911 Trust Fund, used for: Wireless service provider Phase I and Phase II E911 deployment and services. County E911 funding for equipment and services specified in Florida Statute (9). E911 Rural County Grants (biannual grant program using an allocated percentage of the E911 fee revenue for equipment and maintenance of E911 systems). E911 State Grants (open to all counties utilizing E911 trust funds). E911 Board administration and operations. The E911 Board was established to help implement a statewide E911 system for wireless and nonwireless voice-communication users. 15 One of the E911 Board s primary functions is to administer the funds derived from a monthly fee for each subscriber with a Florida billing address (place of primary use). The E911 Board approves disbursements from the E911 Trust Fund to county governments and wireless service providers in strict accordance with Florida Statute If the E911 Board determines that the revenues in the wireless category exceed the amount needed to reimburse wireless service provider costs, the E911 Board can transfer and disburse the funds equitably to all counties. The E911 Board provides direct written notification and fee remittance process information to service providers and counties, which are also posted on the Florida E911 website. 16 Service providers have 60 days from the end of the billing month to remit the collected fees to the E911 Board. E911 fees are collected in accordance with Florida Statute (8) and disbursed in accordance with Florida Statute The E911 Board adjusts the allocation percentages or reduces the amount of the fee, or both, if necessary to assure full cost recovery or prevent over-recovery of costs incurred in the provision of E911 service, including costs incurred or projected to be incurred. The 2007 legislation set the following wireless allocation percentages: Wireless E911 Fee Allocation Percentages: (2007 June 30, 2010) o 67 percent distributed each month to counties for the purposes of providing E911 service (payments are based on the number of wireless subscribers in each county). o 30 percent available for distribution to wireless service providers in response to sworn invoices for the actual costs incurred in providing E911 service. o 2 percent used to provide assistance to rural counties for providing 911 or E911 service. o 1 percent of the fund is retained by the E911 Board for administrative and operational purposes. With the continued gradual decline in revenues for nonwireless and suspension of prepaid wireless calling arrangement fees, the E911 Board approved an adjustment in the allocation percentages. These changes were approved by the E911 Board on June 16, 2010; the changes were effective with the July, 2010, E911 fee remittance revenue disbursed in October, The State of Florida Wireless 911 Board was established by the Legislature in 1999 to help implement a statewide E911 system for wireless telephone users. This changed to the E911 Board in 2007 Legislation. 16 See E911 Board 2010 Annual Report Page 6 of 42 2/28/2011

15 Wireless E911 Fee Allocation Percentages: (July 1, 2010 present) o 71 percent distributed each month to counties for the purposes of providing E911 service (payments are based on the number of wireless subscribers in each county). o 25 percent available for distribution to wireless service providers in response to sworn invoices for the actual costs incurred in providing E911 service. o 3 percent used to provide assistance to rural counties for providing 911 or E911 service. o 1 percent of the fund is retained by the E911 Board for administrative and operational purposes. Nonwireless allocations provide 97 percent of the E911 fee revenue from access lines and Voice over Internet Protocol (VoIP) services to the counties and it has not been adjusted since the original 2007 legislation. Nonwireless E911 Fee Allocation Percentages: o 97 percent distributed each month to counties for the purposes of providing E911 service (payments are based on the number of nonwireless subscribers in each county). o 2 percent used to provide assistance to rural counties for providing 911 or E911 service. o 1 percent of the fund is retained by the E911 Board for administrative and operational purposes. The E911 Board continues to monitor changes in the fee revenue and expenditures, and reviews the fee rate and allocation percentage, on a monthly basis. The E911 Board started the transition from paper copies to electronic media. The E911 Board meetings are now conducted by computer, with an electronic agenda and files. The county grant applications paperwork has been reduced to one original signed copy reducing county costs. These efforts increase efficiency and reduce the E911 Board s administrative costs. The electronic file transition process is being continued with the conversion of the historical files to improve the search time needed for document retrieval and the costs of physical storage of paper documents. Historical information including previous annual reports from the E911 Board 17 and the Wireless 911 Board 18 are available on the Internet. 17 The E911 Board reports are online: gs/e911_board_reports. 18 The Wireless 911 Board reports online: ts. E911 Board 2010 Annual Report Page 7 of 42 2/28/2011

16 D. E911 TRUST FUND RECEIPTS AND DISBURSEMENTS 1. Wireless Receipts for Calendar Year 2010 The E911 Board received payments from collection of the E911 fee from 45 wireless service providers for calendar year The total revenue received and deposited into the E911 Trust Fund by wireless service providers during the year was $77,170,979. This indicates a two percent increase 20 from calendar year 2009 to The following table presents the collections on a quarterly basis. 21 QUARTER First $ 16,165,378 $ 18,996,940 $ 18,312,672 Second $ 19,853,246 $ 19,653,470 $ 20,548,683 Third $ 19,032,748 $ 18,395,077 $ 18,171,179 Fourth $ 22,400,057 $ 18,887,001 $ 20,138,445 Total $ 77,451,429 $ 75,932,488 $ 77,170, Nonwireless Receipts for Calendar Year 2010 The E911 Board received payments from collection of the E911 fee from 162 nonwireless service providers for calendar year The total revenue received and deposited into the E911 Trust Fund by nonwireless service providers during the year was $45,888,321. This indicates a seven percent decrease 23 from calendar year 2009 to The following table presents the collections on a quarterly basis. 24 QUARTER First $ 12,977,656 $ 12,737,825 $ 11,506,752 Second $ 14,703,612 $ 12,065,829 $ 11,964,707 Third $ 11,942,378 $ 12,701,696 $ 11,109,236 Fourth $ 13,886,978 $ 12,093,836 $ 11,307,626 TOTAL $ 53,510,624 $ 49,599,186 $ 45,888, The E911 Board maintains information showing the total amount of E911 fee revenues collected by each provider. This information contains confidential and proprietary data for each provider and is on file with the DMS, Division of Telecommunications. 20 Based on E911 Board 2009 and 2010 Financial Reports. 21 See Financial Report in Appendix 1 (Statement of Cash Receipts and Disbursements). 22 The E911 Board maintains information showing the total amount of E911 fee revenues collected by each provider. This information contains confidential and proprietary data for each provider and is on file with the DMS, Division of Telecommunications. 23 Based on E911 Board 2009 and 2010 Financial Reports. 24 See Financial Report in Appendix 1 (Statement of Cash Receipts and Disbursements). E911 Board 2010 Annual Report Page 8 of 42 2/28/2011

17 3. Disbursements for Calendar Year 2010 The E911 Board approved a total of $109,368,507 which was disbursed from the E911 Trust Fund during the year to counties. a. Disbursements to Counties 1) Wireless Monthly Payments to Counties for E911 The E911 Trust Fund disbursed $48,336,291 of wireless fee revenues to Florida counties in calendar year ) Nonwireless Monthly Payments to Counties for E911 The E911 Trust Fund disbursed $46,153,162 of nonwireless fee revenues to Florida counties in calendar year ) Special Disbursement to Counties for E The E911 Trust Fund disbursed $8,143,059 of trust fund revenues to Florida counties in a special disbursement in June, ) Interest Disbursement to Counties for E The E911 Trust Fund disbursed $625,849 of trust fund revenues to Florida counties in a special disbursement in June, ) Grant Programs The E911 Trust Fund disbursed a total of $6,110,146 to 37 counties in calendar year Maintaining 911, E911 Phase II and funding of several NG-911 projects were the direct result of the grant programs. Without this funding the current level of E911 would not be available in the rural counties. Additional details on the grant awards are included in Appendix See E911 Board Information - Non-Wireless 911 Disbursements to Counties, 06/16/2010 Special Disbursement at URL: 26 See E911 Board Information - Wireless 911 Disbursements to Counties, 06/16/2010 Interest Disbursement at URL: E911 Board 2010 Annual Report Page 9 of 42 2/28/2011

18 (a) E911 Rural County Grant Program The E911 Board disbursed a total of $1,827,028 to 27 rural counties in calendar year 2010, in response to submitted grant applications. These grants provide the funds necessary for E911 deployment and maintenance. This related to a 24 percent decrease 27 from calendar year 2009 to The decline was attributable to a decrease in E911 fee revenue affecting the rural county grant allocated award amount. Not all priority level requests could be funded and numerous projects were not awarded because of the lack of revenue available. 28 Funding for some of this equipment was awarded through the State E911 Grant Program. COUNTY AWARD COUNTY AWARD Baker $ 92, Lafayette $ 93, Bradford $ 57, Levy $ 35, Calhoun $ 118, Liberty $ 64, DeSoto $ 13, Madison $ 40, Dixie $ 55, Nassau $ 6, Franklin $ 132, Okeechobee $ 62, Gadsden $ 54, Putnam $ 79, Gilchrist $ 35, Suwannee $ 49, Glades $ 66, Taylor $ 93, Gulf $ 161, Union $ 281, Hamilton $ 15, Wakulla $ 29, Hardee $ 29, Walton $ 97, Holmes $ 30, Washington $ 5, Jackson $ 22, Based on E911 Board 2009 and 2010 Financial Reports. 28 See Appendix 3 for additional details on 2010 grant awards. E911 Board 2010 Annual Report Page 10 of 42 2/28/2011

19 (b) Payments to Rural Counties for Supplemental Disbursements The E911 Trust Fund disbursed a total of $874,206 to 22 rural counties in calendar year This related to a two percent decrease 29 from calendar year 2009 to In rural counties with small numbers of wireless subscribers, E911 fee revenue cannot cover basic E911 costs. During its June 2010 meeting, the E911 Board unanimously approved an increase in the supplemental disbursement minimum for rural counties from $6,000 to $7,000. The rural county supplemental disbursement program provides additional E911 fee revenue to assure that all counties receive a minimum of $7,000 per month of wireless fee revenue, regardless of the actual E911 wireless fee revenue collected in the county. COUNTY AWARD COUNTY AWARD Baker $ 28, Hendry $ 4, Bradford $ 28, Holmes $ 47, Calhoun $ 51, Jefferson $ 46, Desoto $ 24, Lafayette $ 63, Dixie $ 51, Liberty $ 61, Franklin $ 54, Madison $ 43, Gilchrist $ 41, Okeechobee $ 5, Glades $ 59, Taylor $ 33, Gulf $ 45, Union $ 54, Hamilton $ 52, Wakulla $ 12, Hardee $ 30, Washington $ 31, (c) E911 State Grant Program The E911 Board disbursed a total of $3,408,912 to 18 counties in calendar year 2010, in response to submitted grant applications. These grants provide the funds necessary for E911 equipment and systems. This related to a 74 percent decrease 30 from calendar year 2009 to In 2009, the remaining $13 million for the 2008 E911 State Grant Program was disbursed to 23 counties. The decline in 2010 is attributable to the amount disbursed for the 2008 E911 State Grant Program compared to the amount requested and approved for the 2010 E911 State Grant Program. COUNTY AWARD COUNTY AWARD Bradford $ 208, Lafayette $ 16, Charlotte $ 117, Leon $ 984, Dixie $ 112, Liberty $ 79, Escambia $ 31, Okaloosa $ 416, Flagler $ 181, Okeechobee $ 40, Gilchrist $ 35, Orange $ 304, Hardee $ 3, Putnam $ 45, Hendry $ 26, St Johns $ 248, Indian River $ 485, Suwannee $ 69, Ibid. 30 Based on E911 Board 2009 and 2010 Financial Reports. E911 Board 2010 Annual Report Page 11 of 42 2/28/2011

20 b. Payments to Wireless Service Providers for E911 The E911 Trust Fund disbursed a total of $12,488, to wireless service providers in calendar year 2010, based on sworn invoices for actual E911 costs. This represents a 19 percent decrease from the prior year. 32 With the completion of Phase II, the wireless service provider cost recovery projections decreased for state fiscal year The E911 Board requested modified cost recovery proposals to determine the projected costs for and c. Payments for E911 Board Administration and Operations E911 Board expenses in calendar year 2010 totaled $888,000. This represents a decrease of five percent from the previous year. The decrease is due to the unexpected delay for completion of the E911 Provider Portal database. The engagement of accounting firm Law, Redd, Crona & Munroe, P.A. accounted for $145,853. Payments to the Attorney General s Office for E911 Board Counsel during the year were $27,525. The E911 Board reimbursed the DMS and Communications Working Capital Trust Fund $71,804 for necessary staff support and administrative assessment fees. Meetings, staff salaries, travel, and managerial costs accounted for the $642,818 balance of administrative expenditures Emergency Communications Number E911 System Fund Assets and Balance NET ASSETS CASH BASIS Beginning Balance 1/1/2010 $ 37,905,971 Receipts in 2010 $ 123,059,300 Interest Earned $ 999,037 Refunds of Grant Awards $ 1,262,321 Disbursements in 2010 $ 122,745,412 E911 TRUST FUND BALANCE 12/31/2010 $ 40,481,217 The E911 Trust Fund balance is separated as follows: -- Reserved Funds for Wireless Providers $ 18,913, Reserved Funds for Counties $ 20,154, Reserved Funds for Rural Counties $ 428, Designated for E911 Board Administration and Operations $ 985, TOTAL NET ASSETS $ 40,481,217 It is emphasized that this balance is cash basis 35 as of December 31, 2010, and does not reflect the current available balance within the E911 Trust Fund. 31 See Financial Report in Appendix 1, Exhibit 4, for disbursements. 32 Based on E911 Board 2009 and 2010 Financial Reports. 33 See Item J.5.b. (WSP E911 Cost Recovery). 34 See Financial Report in Appendix 1, Exhibit 5, for a list of these disbursements. 35 See Financial Report in Appendix 1. E911 Board 2010 Annual Report Page 12 of 42 2/28/2011

21 Reserved Funds for Counties are funds collected for county disbursements. The funds include the E911 fee remittance revenue collected and awaiting disbursement processing and approval. There is a statutory 36 three month remittance process for the service providers to collect and remit the subscribers fee revenue, E911 Board disbursement approval and financial administrative processing. E. STATUS OF ENHANCED 911 SERVICES Florida achieved a major milestone in the progression of E911 systems in 2008 when all 67 counties reported Phase I and Phase II completion. The status of E911 Phase I and Phase II service in the State of Florida remains the same with the addition of wireless service provider expansions and their ability to provide Phase II service in these expanded market areas. 1. Phase I Wireless Service The FCC defines Phase I as a provider s ability to deliver the telephone number of the wireless handset originating a 911 call, known as Automatic Number Identification (ANI), to the emergency call taker, in addition to the location of the cell site or base station receiving the E911 call. This information ideally provides the caller s general location. All 67 counties are Phase I compliant for all of the wireless service providers operating in their area. 2. Phase II Wireless Service The FCC defines Phase II as a provider s ability to deliver latitude and longitude location information also known as Automatic Location Identification (ALI), to the emergency call taker in addition to the Automatic Number Identification (ANI). Phase II wireless has been completed in all 67 counties. Phase II status information is available on the Florida E911 website Implementation Issues Historically, the lack of available county funding delayed implementation of Phase I and Phase II wireless enhanced services in Florida. Additional requirements placed on counties, such as wireless mapping systems, addressing, required equipment upgrades, and staffing led to budgetary shortfalls that continued to slow the progress to achieve Phase I and Phase II compliance. The E911 Board s Rural County Grant Program funded E911 systems enabling the requests for Phase II implementation. Rural counties that need to have continued maintenance or the replacement of E911 systems face these same funding issues. As counties move toward NG-911 they will continue to face the same issues. 36 See Florida Statute (8)(e). 37 See E911 Board 2010 Annual Report Page 13 of 42 2/28/2011

22 4. Next Generation 911 The next progression in E911 systems is called NG-911. The existing legacy E911 systems were not designed or intended to handle new and emerging communication technologies and devices. NG-911 systems are designed to handle voice, data, and video developed on a standardized IP based platform. The design can handle new communication devices such as text messaging and telematics and resolve interoperability issues to provide the capability of an emergency communications network. Because of the rapid development and implementation of these communication devices, there is a national focus on the development of the NG-911 systems and the technical, operational and policy issues involved with these systems. Since this is a public safety system, technology providers and public safety personnel are collaborating on the system s development. This development will involve a multi-year transition and progression of Florida s E911 system. The E911 Board and Florida s public safety agencies are currently planning, designing and implementing Emergency Services Internet networks (ESInet) and system replacements. The new system requires various new technology devices, along with the legacy equipment, to provide location-based routing to the public safety answering points, as well as E911 information including the location and call back number. The system will eventually provide new capabilities with features and functions designed to handle text, data, images and video. National standards are being developed and tested by national 911 associations and standards bodies to enable access to the E911 system by these new technologies. Counties are making enhancements to their E911 system preparations which are being reported as NG-911 improvements. Replacing existing PSAP systems with NG-911 equipment is a major project requiring E911 fee disbursements as well as the E911 Board grant programs. F. E911 STATE GRANT PROGRAM STATUS AND RECOMMENDATIONS The E911 Board implemented the E911 State Grant Program in 2010 in accordance with the statutes. This program provides grants to counties for upgrading E911 systems. The counties must use these funds only for direct capital expenditures to establish and provide E911 services, which include next generation technology deployment. The E911 Board supported a number of counties with funding for their NG-911 initiatives. System replacement through the E911 grant programs is based not only on the technology involved, but also on the equipment s age and replacement need. The E911 Board works to improve the technology available to the counties within the funding limits of the rural county and state grant programs. E911 Board 2010 Annual Report Page 14 of 42 2/28/2011

23 The following two maps depict the grant funding and individual county initiatives for NG-911 throughout the state. The first map shows the type of project for which either Rural County or State Grant funds have been disbursed. 38 NG-911 is the next advancement in E911 systems. It involves the migration to a managed IP network for call routing and delivery of 911 emergency requests (calls or messages) to the appropriate PSAP. Service provider, equipment, and regulatory issues must be addressed in the development of IP 911 call routing and message services for NG-911. For the purposes of this report, NG-911 is used to refer to the updating of the E911 equipment and infrastructure, including the E911 call routing system network and the PSAP equipment and software. NG-911 is being designed to eventually provide multimedia data capabilities to the appropriate public safety agencies. 38 No NG-911 Funding Requested - Not all counties applied for NG-911 funding. E911 Board 2010 Annual Report Page 15 of 42 2/28/2011

24 The second map indicates the status of all county systems relating to NG-911 initiatives. These projects are in various implementation stages from initial design to final completion. The map provides an indication of the improvements being made to the County 911 systems and does not indicate completion of all of the requirements for a NG-911 system, as currently defined by the National Emergency Number Association (NENA). E911 Board 2010 Annual Report Page 16 of 42 2/28/2011

25 G. LONG TERM STRATEGIC INITIATIVES Currently the E911 Board is working with the DMS Division of Telecommunications, Bureau of Public Safety to develop and implement five long-range E911 initiatives. 1. Statewide E911 Routing The E911 Board is promoting implementation of NG-911 emerging technologies and migration to an IP delivery system for E911 services. Regional routing systems have been funded as a precursor to implementing a statewide E911 routing system. Regional pilot projects are providing critical information on the affects of IP routing and E911 system call processing. The development of a statewide ESInet will provide IP routing of 911 calls through a statewide network connection or through existing county/regional routing networks. 2. Statewide E911 Mapping Statewide E911 GIS data is the future for caller location determination in NG-911. The proposed statewide GIS database will consist of data layers, including boundary data on each county, public safety answering points and emergency service zones (areas). The database will be compliant with the individual county s Master Street Address Guide (MSAG). The E911 Board and DMS, using Federal ENHANCE 911 Act Grant program funding, are beginning to develop a regional mapping system for the E911 public safety system. 3. Statewide E911 Call Taker E-Training The E911 Board is reviewing E911 educational training needs, opportunities, and standards for the State of Florida. This initiative develops an instructional program to assist county agencies with 911 call taking. The content includes 911 e-training for standard call taking functions and terminology, including use of correct words and grammar, telecommunication operating procedures, types of telecommunication equipment, and its functions and terminology for 911 call taking. The E911 Board and DMS, using the Federal ENHANCE 911 Act Grant program funding, are beginning to develop this training program. 4. Regional Enhanced 911 Backup Public Safety Answering Point A critical component to emergency response and disaster recovery is a planned and adaptable system of remote backup PSAPs. The regional backup project is part of a DMS and E911 Board initiative to develop regional backup centers for continuous operations of E911 in the case of a catastrophic event, including, but not limited to, hurricanes. Florida is especially susceptible to major climatic events that can damage and destroy E911 Public Safety Answering Points. Past events have shown the need to develop an emergency contingency plan for these critical systems. Orange County and DMS, using the Federal ENHANCE 911 Act Grant program funding, are beginning to develop a Central Florida regional backup to be hosted in Orlando. E911 Board 2010 Annual Report Page 17 of 42 2/28/2011

26 5. Statewide E911 Management Information System Management Information Systems (MIS) for 911 Public Safety provides critical information on call details and trunk usage. With the statewide NG-911 systems and IP routing systems, the MIS is needed to track 911 call routing and call transfers. Additional positions, equipment and personnel can be justified based on the data captured and trend analysis in a statewide MIS. Justification of funding is becoming an increasingly important requirement due to reductions in fee revenues and funding augmented from county general revenues. Implementation of these and other programs is contingent on adequate funding. With the actions of the legislature providing the 50-cent fee structure and the E911 Board implementing the assistance programs, counties, wireless service providers, LEC industry and the state have made great progress towards protecting Florida s citizens and visitors. Without adequate continued funding, some E911 systems will revert to basic 911 (voice only) status. H. ENHANCE 911 Act Grant Project The E911 Board is working with DMS on the ENHANCE 911 Act Grant Program 39 from the National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT); National Telecommunications and Information Administration (NTIA), Department of Commerce (DOC) Docket No. NHTSA DMS was awarded a grant consisting of four individual projects and is coordinating the procurements for each of the E911 project initiatives awarded: 1. Statewide E911 Routing 2. Regional E911 Mapping 3. Statewide E911 Call Taker and 911 Personnel E-Training 4. Regional Enhanced 911 Backup/Training Public Safety Answering Point Legislative spending authority had to be obtained for all of the grant projects from the Florida Legislature. This was accomplished during the 2010 Legislative Session, with the spending authority beginning July 1, Modifications to the original project schedule were necessary to account for the spending authority approval and the time schedules are being modified to account for the ENHANCE 911 Act grant time constraints. 1. Statewide E911 Routing This E911 project requires the development of a contract for a statewide ESInet utilizing the MyFloridaNet (MFN) infrastructure backbone available for all counties. Progress continues on the four regional IP routing projects being developed in Florida. These projects, funded by the E911 Board Grant programs, have been installed and are presently being tested. The project information on the MFN circuit implementation for three of the projects is being reviewed for incorporation into the statewide routing contract development. 39 Authorized under the Ensuring Needed Help Arrives Near Callers Employing 911 (ENHANCE 911) Act of E911 Board 2010 Annual Report Page 18 of 42 2/28/2011

27 The ENHANCE 911 Act Grant project implementation plan requires an E911 network consulting engineer, MFN SUNCOM network engineers and DMS E911 engineers to develop a statewide service contract. The proposed procurement approach for the statewide routing system is a competitive procurement process to solicit and secure under a State Purchasing Contract pricing for all engineering, equipment, materials, installation, supervision, and training services required for the proper installation and operation of E911 Emergency Communications Routing System. The procurement is in accordance with DMS Purchasing policy and procedures. The procurement has been posted and is presently in the review and selection process. 2. Regional E911 Mapping The major focus of this proposed project is for enhanced Phase II location of 911 callers. Enterprise E911 Geographic Information Systems (GIS) data is needed for accurate caller location determination. The proposed regional GIS database will consist of synchronization of data layers including boundary data on each county, public safety answering points and emergency service zones (areas) and existing E911 databases. The database will be compliant with the counties MSAGs. The counties provide the mapping data for updating the maps incorporated in the regional mapping system. There is a change being reviewed; the initial project was to provide redundant servers for the central region of Florida. The current intent is to join with another state basemap repository to leverage and improve the basemap repository. The planned ENHANCE 911 Act project will use existing accurate county geodata to improve the basemap datasets and enable county data updates and provide for publishing to surrounding counties. The project is currently in the procurement development stage. 3. Statewide E911 Call Taker and 911 Personnel E-Training The proposed plan is to procure E911 e-training classes and documents defining operational, organization procedures, and processes established for 911 call taking. The training classes will be developed to assist the county 911 coordinators and the counties with call taker training with the understanding that individual county procedures and processes will be explained and taught to the call takers to assure compliance to individual county E911 plans. The implementation plan requires an E911 e-training specialist vendor to develop the E911 e-training courses. Statewide E911 engineers and county 911 coordinators and training specialists will review and approve the courses. Courses will then be uploaded to the DMS Learning Place website for 911 call taker access. The schedule is being modified for concurrent rather than consecutive e-training module development. E911 Board 2010 Annual Report Page 19 of 42 2/28/2011

28 The proposed procurement approach is to also obtain additional pricing information for the vendor to provide an option to host the e-training on the vendor s e-training system. It will also assist to determine if there are any additional existing vendor 911 training modules that can be incorporated to enhance the public safety telecommunicator training to assist with E911 training for State mandatory certification requirements. The project is currently in the procurement development stage. Supplemental Project 4. Regional Enhanced 911 Backup/Training Public Safety Answering Point The Regional E911 Backup project is part of a state initiative to develop regional backup centers for continuous operations of E911 in the case of catastrophic event, including, but not limited to hurricanes. The agreement for the Regional Backup Project with Orange County has been developed by DMS and is being reviewed by Orange County. Orange County is in the process of locating a suitable facility to support the Backup PSAP. It will also serve as a training facility and as an alternate routing location. Orange County has also been reviewing E911 manufacturers systems as part of their procurement process to determine the necessary equipment. The project is currently in the early procurement development stage. All procurements stipulate that all work must be completed, approved and invoiced in order to complete the projects by the ENHANCE 911 Act Grant Project completion date of September 30, I. DESCRIPTION OF E911 SERVICE DATA EVALUATION As required by the Emergency Communications Number E911 Act, the E911 Board prepared this annual report to provide data on fee revenue and disbursements. The E911 Board Annual Report to the legislature is based on the calendar year. The county information is based on a fiscal year e.g., (October 2009 through September 2010). While the majority of the report information is based on the counties fiscal calendar, some of the information was based on the state s fiscal year (July 2009 through June 2010). In order to provide this report, the E911 Board solicited and collected information directly from all 67 counties and respective wireless service providers. The data analyses are based on the collected information including: The wireless service providers cost recovery proposals for the fiscal years and Each county s costs to operate and maintain its E911 system. 41 The revenues received by each county from both wireless and nonwireless E911 fees Based on the state s fiscal calendar. 41 Based on fiscal year October 2009 through September Based on fiscal year October 2009 through September 2010; to assure accuracy and breakdown information on the wireless fees, the E911 Board wireless fee distribution information was used, accounting for deposit timing and category issues. E911 Board 2010 Annual Report Page 20 of 42 2/28/2011

29 J. RESULTS OF E911 SERVICE DATA EVALUATION 1. County Projection Analysis Detailed findings, summarized from county questionnaire responses, provide rural, medium, and large county data collected, recorded, and totaled in a spreadsheet, in Appendix 2. Actual county analysis and questionnaire responses are stored in the E911 Board Annual Report files and are available upon request. The analysis of the data indicates that the wireless and nonwireless fees counties received do not cover their actual costs. In the counties fiscal year October 2009 through September 2010, the total disbursed to the counties from the fee revenue 43 was $94,489,453, not including grants or interest, with total county expenditures of $191,220,954. On average, nonwireless and wireless fee revenues covered 49 percent 44 of the actual Florida counties costs. The counties fee revenue consisted of $46,153,161 from nonwireless and $48,336,292 from wireless. Forty-nine percent 45 of the fee revenue was generated by the nonwireless fees, while fifty-one percent 46 was generated by wireless fees. Additional revenues were received in the form of interest disbursement, special and supplemental disbursements, and the annualized rural county and state grants of $17,508,555 from the E911 Trust Fund. With these E911 assistance programs, i.e., special disbursement, interest earned disbursement from the E911 Trust Fund and the annualized Rural County and State Grant Programs revenues, 59 percent of the total expenses were covered. Ten percent 47 of the counties costs are funded through the addition of these ancillary revenue sources. The costs provided by the counties represent their actual expenditures in the fiscal year. These expenditures are based on the allowable expenses per Florida Statute (9). Not all E911 costs are included in the counties actual cost submissions. Counties did not include all of the costs for some local jurisdiction PSAP call takers and equipment replacement costs, because the county information was based on actual, not projected, costs. Counties that could not obtain the information did not include all of these costs. Comparisons of individual county E911 systems should not be formulated just by reviewing the demographic information. Each county implements and maintains its own individual E911 system with varying external factors, including different LECs, selective routing availability, equipment service availability, and population demographics. 43 Nonwireless revenue of 97 percent and wireless revenue of 67 percent of the fee is allocated. (Effective July 1, 2010 the allocation for wireless revenue increased to 71 percent) -See Appendix 2 (Total E911 Fees). 44 Based on actual county and E911 Board data - See Appendix 2 (Percent E911 Fee of Total Expense). 45 Based on actual county and E911 Board data - See Appendix 2 (Percent Nonwireless of Total Fee). 46 Based on actual county and E911 Board data - See Appendix 2 (Percent Wireless of Total Fee). 47 Based on actual county and E911 Board data -See Appendix 2 (Percent E911 Fee & Board Assistance of Total Expense). E911 Board 2010 Annual Report Page 21 of 42 2/28/2011

30 As an example, the cost of a 911 call may be attributable to equipment and service costs available or the number of 911 calls placed in the county. While these items are calculated to review the costs for this report, they are also intended to assist the county in the analysis of its individual E911 systems and situation. In reviewing the costs, it is evident that the number of PSAPs in a county greatly affects the percentage of costs the fee revenue can cover. Each county must decide whether a combined jurisdictional call center or separate call centers for each jurisdiction 48 best serve its county. 2. Rural Counties Projection Analysis The E911 Board Supplemental Disbursement Program assists rural counties with low subscriber counts by funding access line and trunking costs, in addition to other associated E911 expenses. Needs are especially apparent on equipment maintenance and circuit costs for rural counties. The annual report data shows the amount disbursed for the 2010 Rural County Grant Program. The 2010 Rural County Grant Program application dates were March 1 and October 1, While assisting rural counties with Phase II grant applications, it was determined that the Rural County Grant Program is required to assure continuation of Phase II service in many rural counties. County expenditures for E911 systems are cyclical with the equipment being purchased in one year followed by years where the county builds up their balance with carry forward funding for the next system purchase. The majority of the rural counties do not have carry forward funding available for system replacement. The E911 Board has projected the replacement cost to determine the future funding needs. 48 Jurisdictional entities include fire, police, sheriff, emergency medical services, etc. E911 Board 2010 Annual Report Page 22 of 42 2/28/2011

31 The five-year forecast for funds required to maintain Phase II wireless is shown below. It is based on estimated system maintenance, replacement equipment and additional associated E911 equipment. $7,000,000 Projected Rural County Grant Program $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 Supplemental Critical CPE Maintenance $1,000,000 $ Source: Based on E911 Board data and projections. 3. Local Exchange Carrier Service Projection Analysis The counties are experiencing decreasing E911 LEC revenues and increasing VoIP revenues. Both are combined in the nonwireless fee category. The increasing VoIP revenues have not maintained pace with the decreasing LEC revenues and the total nonwireless category has decreased over seven percent in These revenues help offset the costs of LEC circuit and database fees. While revenues are decreasing, the cost of the 911 call transport circuits is increasing. LEC E911 trunking and database costs are billed directly to the counties and are based on schedules and tariffs approved by the Florida Public Service Commission (PSC), which vary based on the LECs in the counties service areas. In addition to the E911 trunking circuits, counties are experiencing additional IP circuit costs to begin the migration to NG-911. Some of these circuits are provided by the LEC provider or Competitive Local Exchange Carriers (CLEC), while others are utilizing State MFN circuits. The costs for the E911 trunking circuits and the IP circuits are incorporated in the county s budget and are funded typically from allocated county E911 fee revenue. 4. Decreasing Nonwireless Revenues The E911 Board has been collecting the revenue from nonwireless providers since the legislative change in Data collected for calendar year 2010 shows a definite decline in nonwireless revenue for LECs. VoIP providers are showing an increase, but the amount is substantially less than the LEC revenue. Total nonwireless revenues decreased more than seven percent in E911 Board 2010 Annual Report Page 23 of 42 2/28/2011

32 Revenue Revenue $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Total LEC Revenue Reported by Month from January 2008 thru November 2010 LEC Net Source: Based on E911 Board data. Total VoIP Revenue Reported by Month from January 2008 thru November 2010 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- VoIP Net Source: Based on E911 Board data. E911 Board 2010 Annual Report Page 24 of 42 2/28/2011

33 Revenue 5. Wireless Service Provider Projection Analysis a. Wireless Revenue The wireless revenue increased by two percent in Monthly collections have fluctuated over the last two years. The revenue collected in 2010 is less than the revenues collected in 2007 and 2008 respectively. 50 Currently, there are more wireless subscribers than nonwireless subscribers. $8,000,000 $7,000,000 $6,000,000 Total Wireless Revenue Reported by Month from January 2008 thru November 2010 $5,000,000 $4,000,000 $3,000,000 Wireless Net $2,000,000 $1,000,000 $- Source: Based on E911 Board data. Minimal growth is anticipated in the number of wireless subscribers and fees for This is based on the trend since 2006 and the continued uncollected prepaid wireless fee revenues. The wireless industry survey 51 reported a national growth in subscribers of between five and seven percent each year since The stagnant growth rate in Florida s subscribers is primarily attributed to the uncollected prepaid wireless subscribers. 49 Based on E911 Board 2009 and 2010 Financial Reports Section D Based on E911 Board 2007 and 2008 Financial Reports. 51 CTIA-The Wireless Association 2010 Semi-Annual Wireless Industry Survey Results. 52 The percentage decreases from seven percent to five percent in No information was provided on wireless data only plans. E911 Board 2010 Annual Report Page 25 of 42 2/28/2011

34 b. Wireless Service Provider Cost Recovery Analysis The FCC requires that Tier I and II wireless service providers have the ability to provide Phase II in counties possessing the equipment to receive the information and requesting service. Wireless service providers implementation of Phase I and Phase II E911 systems varies with each provider. The implementation status information, on a county basis, is scheduled to be updated annually on the Florida E911 website. 53 Detailed individual wireless service provider information is confidential and available in accordance with Florida Statute Releasable statistical information collected by the E911 Board includes the total wireless service provider costs for , total fiscal year data, cost-recovery analysis of actual wireless service provider projections and actual costs from program inception. $90,000,000 $80,000,000 $70,000,000 $60,000,000 Historical Wireless Service Provider Cost Recovery Data $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ Actual Payments Estimated CRP Source: E911 Board historical data. In 2010, the E911 Board paid 16 percent 54 of the wireless fee to wireless service providers for Phase II implementation and maintenance costs. Now that Phase II is fully implemented, reimbursement for recurring networking and related maintenance expenses to wireless service providers for cost recovery will continue. A remaining issue on compliance with FCC Phase ll E911 systems requirements is accuracy testing compliance criteria and timeframes for implementation. In September 2010, the FCC provided standards for wireless E911 Phase II location accuracy and reliability. 53 See Florida E911 Status Map at 54 Based on Financial Report for calendar year 2010, Appendix 1. E911 Board 2010 Annual Report Page 26 of 42 2/28/2011

35 The wireless accuracy standards are applied at the county or at the PSAP service area geographic level, based on outdoor measurement only. 55 The costs for compliance and testing for the service providers has not been incorporated into the current wireless service provider cost recovery projections. The wireless service providers cost recovery proposals for the fiscal year will need to be updated to include any additional costs. 6. Total Cost (Expenditure) and Fee (Revenue) Analysis This analysis summarizes the actual revenues received by Florida counties for wireless and nonwireless E911 fees and counties costs to operate and maintain their E911 systems. It includes a forecast of these expenditures and revenues based on the systems currently available. State of Florida E911 Expenditures Fiscal Year County E911 Expenditures $ 170,228,333 $ 184,793,977 $ 191,220,954 $ 202,694,211 $ 214,855,864 WSP E911 Cost Recovery $ 18,849,676 $ 14,639,355 $ 13,681,513 $ 14,884,948 $ 15,484,846 Administration Costs $ 907,074 $ 1,076,199 $ 995,211 $ 1,000,000 $ 1,000,000 Total E911 Expenditures $ 189,985,083 $ 200,509,531 $ 205,897,678 $ 218,579,159 $ 231,340,710 State of Florida E911 Fee Revenue Fiscal Year Wireless E911 Fee $ 75,337,169 $ 76,692,995 $ 77,004,396 $ 78,544,484 $ 80,115,374 Nonw ireless E911 Fee $ 54,037,414 $ 51,119,855 $ 48,200,068 $ 44,826,063 $ 41,688,239 Total E911 Fees $ 120,495,399 $ 127,812,850 $ 125,204,464 $ 123,370,547 $ 121,803,612 Actual Amounts Amount Projected Based on E911 Board and County Documentation Forecasts based on County and Industry Trends 55 FCC Wireless E911 Location Accuracy Requirements, Final Rule, PS Docket No ; FCC Based on the state s fiscal calendar. E911 Board 2010 Annual Report Page 27 of 42 2/28/2011

36 This forecast is based on a projected two percent 57 increase in wireless E911 service fee revenue, seven percent 58 decrease in the nonwireless E911 fee revenue and six percent 59 increase in county E911 system and operation costs and the Rural County and State Grant Programs expenditures. This forecast also projects an increase in wireless service provider E911 costs based on their cost-recovery proposals. $300,000,000 E911 Expenditure and Fee Revenue Forecast $250,000,000 $200,000,000 $150,000,000 $100,000,000 Total E911 Expenditures Total E911 Fee Revenue $50,000,000 $ Source: E911 Board historical data and projections. 57 Forecasted projection based on historical trends of E911 Board data. 58 Forecasted projection based on historical trends of E911 Board data and on County 911 cost data. 59 Forecasted projection based on County E911 cost data. E911 Board 2010 Annual Report Page 28 of 42 2/28/2011

37 7. E911 Trust Fund Balance Analysis The E911 Board s best estimate of the funds available and the funds necessary to implement and maintain E911 service in Florida for the next two calendar years is presented below. Anticipated Funds Beginning balance January 1 $ 40,481,217 $ 35,225,823 Receipts Wireless $ 78,714,399 $ 80,288,687 Receipts Nonwireless $ 42,886,281 $ 40,080,637 Interest Earnings $ 1,000,000 $ 1,000,000 Subtotal: $ 163,081,897 $ 156,595,147 Anticipated Disbursements** Wireless Fee Revenue to Counties $ 55,887,223 $ 57,004,967 Nonwireless Fee Revenue to Counties $ 41,599,693 $ 38,878,218 Rural County Assistance $ 2,304,158 $ 2,310,273 Rural County Supplemental $ 915,000 $ 900,000 Service Provider Reimbursement $ 15,500,000 $ 15,500,000 Board Operations/Administration $ 1,000,000 $ 1,000,000 Special Disbursement $ 2,000,000 ENHANCE 911 Act Grant Match $ 1,332,932 Interest Disbursement $ 650,000 $ 650,000 State E911 Grants $ 8,000,000 $ 8,000,000 Subtotal: $ 127,856,074 $ 125,576,390 TOTAL: $ 35,225,823 $ 31,018,757 ** These figures are based on projected disbursements and are contingent on legislative budget authority. It is emphasized that this analysis is cash basis 60, and does not reflect the current available balance within the E911 Trust Fund. County Reserves in the Financial Report includes $20,154,785 in fee revenue collections pending Board disbursement approval. The E911 Trust Fund steadily increased from its inception in 1999 until 2007 awaiting receipt of wireless service provider cost recovery invoices. The E911 Board continues to work with the telecommunications industry to obtain realistic cost projections and determine what portion of the E911 Trust Fund is available to assist counties with capital operating equipment and networking of Florida s E911 system. The current legislation enables the E911 Board to use funding where it is needed on improvements to E911 PSAPs that are utilizing outdated communications technologies and systems. 60 See Financial Report in Appendix 1. E911 Board 2010 Annual Report Page 29 of 42 2/28/2011

38 The following graph depicts the E911 Trust Fund and projected decrease and use of the E911 Trust Fund for these E911 public safety improvements. $100,000,000 E911 TRUST FUND BALANCE $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 E911 TRUST BALANCE $30,000,000 $20,000,000 $10,000,000 $ Source: E911 Board historical data and projections. K. CONCLUSIONS The ability to access emergency services by dialing 911 is a vital component of public safety and emergency preparedness, and the benefits of the 911 system go beyond monetary considerations affecting health, welfare and life. The ability to contact assistance for emergency situations throughout Florida by dialing 911 is critical to providing rapid direct emergency response. Subscriber E911 fee revenue funding is used to equip and maintain Florida s E911 PSAPs with the best technology counties can afford. Funding also helps augment county revenue funding for E911 training and call taker salaries. The equipment and personnel involved routinely save lives of Florida citizens and visitors. Florida s E911 system was established and implemented to provide voice communications services users with rapid direct access to public safety agencies by accessing the telephone number "911". The public demands of the E911 system are changing; the system is expected to provide increased access and communications, location verification, fast response, and prearrival instructions and assistance. New telecommunications devices and services are expected to include the ability to provide this emergency service. A number of service providers sell new devices with the ability to access 911 services without collection of the E911 fee, which is necessary to provide public safety service support. E911 Board 2010 Annual Report Page 30 of 42 2/28/2011

39 County E911 System Costs There are major changes and impacts in the telecommunications industry affecting the forecasting of the E911 Trust Fund balance including: Technology changes in networks involving IP systems. Telecommunication device delivery method issues, including text, data and video. 911 public safety telecommunicators training. Supplementary databases providing additional information for responders. Wireless E911 Phase II testing and accuracy issues. Since 2006, the fees collected statewide do not cover all county and service provider E911 costs. In the counties fiscal year , the total combined E911 fee revenues were $94,489,453 with total E911 expenditures of $191,220, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% E911 Allowable Fee Expenditure Coverage of County E911 Costs Percent E911 Fee of Total Expense Percent E911 Fee & Board Assistance Source: E911 Board historical data and projections. A review of the fee structure for other states reveals that, while not the lowest rate, Florida s fee rate still remains below the nonwireless and wireless fee rates of the majority of other states. 61 The E911 Board continues to monitor trends in the balance of the E911 Trust Fund revenues versus expenditures. With the technology shift in E911 systems and telecommunication devices and the impacts of the E911 State Grant Program, the fee rate and allocation is reviewed by the E911 Board on a monthly basis. 61 See Appendix 3, Exhibit 5, State Fee & Organizational Structure, courtesy the National Association of State 911 Administrators (NASNA). E911 Board 2010 Annual Report Page 31 of 42 2/28/2011

40 1. E911 Board Administration of Percentage Allocation In accordance with the legislation established in 2007, the E911 Board reviews the amount of the fee to determine if it should reduce the fee or change the percentage allocation. Reimbursement of wireless service provider and county E911 costs are both a current legislative requirement and a necessity for the continued safety of the citizens of Florida. Future projections of increased costs and county needs make adequate reserves essential. It is critical to maintain the needed reserves to assist counties with the changing telecommunications market. The E911 Board works continually with counties and wireless providers to determine total costs and funding for E911 systems. This information is used to determine allocation percentages. In the ENHANCE 911 Act of 2004, Congress found that, any funds that are collected from fees imposed on consumer bills for the purposes of funding 911 services or E911 should be expended for the purposes for which the funds are collected. 62 The NET 911 Improvement Act of 2008 expanded this to include collection of a fee or charge applicable to commercial mobile services or IP-enabled voice services. 63 The E911 Board diligently administers the E911 Trust Fund and is fulfilling its purpose and legislative intent by closely monitoring and administering the E911 fee collection and the E911 Trust Fund expenditures. Revenue remaining in the portion set aside to reimburse the wireless service providers for Phase I and II implementation costs funded the E911 State Grant Program. The current balance in the wireless service providers portion of the E911 Trust Fund has been reduced in a well-considered manner. The balance in the E911 Trust Fund is continually analyzed by the E911 Board in consideration of outstanding E911 issues. The E911 Board recommends continued use of the funds to offset wireless service provider costs and county expenses, and/or be held in trust until the E911 funds can be used for statewide E911 systems and services. It is essential that use of the Emergency Communications Number E911 System Fund be reserved only for E911 systems and services. 2. Legislative Recommendations The E911 Board, the county 911 coordinators, and the 2010 E911 Board Legislative Task Force reviewed a number of issues to be presented to the legislature for consideration. The E911 Board 2009 Annual Report provided legislative concerns and items that were discussed with the telecommunications industry, retail association, and counties (through their 911 coordinators). Legislative additions, clarifications, and modifications are suggested to assist the E911 Board, DMS and the counties with implementing and maintaining a comprehensive statewide emergency telecommunications number system to provide 911 access to public safety agencies for the delivery of E911 service to the citizens and visitors of Florida. The following items are suggested for inclusion in 2011 legislation and for further research. Suggested statutory modifications to existing legislation are included as endnotes. 62 Public Law th Congress SEC. 102.(3). 63 Public Law th Congress SEC. 6.(f). E911 Board 2010 Annual Report Page 32 of 42 2/28/2011

41 a. Modify calculation period for carry forward and excess cost recovery to match the County Fiscal Year. With the projected future costs of E911 equipment, the 2010 legislation increased the county carry forward allowance from 20 percent to 30 percent of the total funds disbursed to the county by the E911 Board. It is recommended that the calendar year requirement be changed to match a county fiscal year requirement for carry forward expenditures on capital outlay, capital improvements, or equipment replacement. This will assist the counties in their planning and budgeting process, their E911 budget expenditures, and excess cost recovery calculations. Suggested statute modification: s (2)(c) s (2)(c) A county may carry forward up to 30 percent of the total funds disbursed to the county by the board during a county fiscal calendar year for expenditures for capital outlay, capital improvements, or equipment replacement, if such expenditures are made for the purposes specified in subparagraphs (a)1. and 2.; however, the 30-percent limitation does not apply to funds disbursed to a county under s (6)(a)3., and a county may carry forward any percentage of the funds, except that any grant provided shall continue to be subject to any condition imposed by the board. In order to prevent an excess recovery of costs incurred in providing E911 service, a county that receives funds greater than the permissible E911 costs described in s (9), including the 30-percent carry forward allowance, must return the excess funds to the E911 board to be allocated under s (6)(a). b. Modify E911 Board Annual Reporting Period to State and County Fiscal Year By February 28 of each year, the E911 Board prepares its Annual Report for submission by the Department of Management Services to the Governor, President of the Senate, and Speaker of the House of Representatives that addresses the immediately preceding calendar year. The E911 Board Annual Report currently reflects three reporting periods: the preceding calendar year, the preceding state fiscal year, and the preceding county fiscal year. It is recommended that the Annual Report be changed to address the immediately preceding state fiscal year and county fiscal year. This will help obtain county information and standardize and clarify the information and reporting periods. Suggested statute modification: s (3)(c) s (3)(c) By February 28 of each year, the board shall prepare a report for submission by the office to the Governor, the President of the Senate, and the Speaker of the House of Representatives which addresses for the immediately preceding calendar state fiscal year and county fiscal year. E911 Board 2010 Annual Report Page 33 of 42 2/28/2011

42 c. Modify Rural County Definition Modify the rural county definition to be based on unincarcerated population to assure that rural counties population counts are not adversely inflated by inclusion of the prison population. The loss of rural county status would eliminate a county s access to the rural county grants program. Suggested statute modification: s (3)(q) and y s (3)(q) Medium county means any county that has an unincarcerated population of 75,000 or more but less than 750,000. s (3)(y) Rural county means any county that has an unincarcerated population of fewer than 75,000. d. Modifications to the Authorized Expenditures of E911 Fees Modifications are required to clarify the allowable expenditures of the E911 Fee revenues needed to provide E911 systems, services, and training. Clarify the provisions of E911 service to include the training and certifications requirements based on the 2010 legislative changes but limit interpretations for dispatch equipment funding. Suggested statute modification: s (9)(a) s (9)(a) For purposes of this section, E911 service includes the functions of database management, call taking, dispatching, location verification, and call transfer. Department of Health certification and recertification and training costs for 911 public safety telecommunicators, including dispatching, is a function of E911 service. Modify county E911 fee revenue allowable expenditures for items that are needed to maintain County E911 systems: Personnel costs. Modifications for labor costs specifically listing the County 911 coordinators position and allowing technical, GIS, 911 database, and administrative personnel expenditures for E911 related activities, as set forth in the State E911 Plan. Limiting such allowable cost to the portion that is E911 related. With the required travel for E911 GIS mapping and accuracy, include vehicle expenditure as an allowable cost, but limited to the portion that is E911 related. Suggested Clarifying changes: Striking consoles because it is an outdated term and system design; current similar expenditures are referred to as call taker workstation furniture. Modifying and interfaces, including hardware and software, for computer-aided dispatch (CAD) systems, to provide clarity that CAD systems are not fundable, but the interfaces are allowable. E911 Board 2010 Annual Report Page 34 of 42 2/28/2011

43 Suggested statute modification: s (9)(b) s (9)(b) All costs directly attributable to the establishment or provision of E911 service and contracting for E911 services are eligible for expenditure of moneys derived from imposition of the fee authorized by this section. These costs include the acquisition, implementation, and maintenance of Public Safety Answering Point (PSAP) equipment and E911 service features, as defined in the Public Service Commission s lawfully approved 911 and E911 and related tariffs or the acquisition, installation, and maintenance of other E911 equipment, including call answering equipment, call transfer equipment, ANI controllers, ALI controllers, ANI displays, ALI displays, station instruments, E911 telecommunications systems, visual call information and storage devices, recording equipment, telephone devices and other equipment for the hearing impaired used in the E911 system, PSAP backup power systems, consoles call taker workstation furniture, automatic call distributors, and E911 hardware and software interfaces, including hardware and software, for computer-aided dispatch (CAD) systems, integrated CAD systems for that portion of the systems used for E911 call taking, network clocks, salary and associated expenses for E911 call takers for that portion of their time spent taking and transferring E911 calls, salary and associated expenses for a county to employ a County 911 coordinator and E911 GIS mapping, E911 technical system maintenance, E911 database and E911 administration personnel full-time equivalent E911 coordinator position and a full-time equivalent mapping or geographical data position, and a staff assistant position per county for the portion of their time spent administrating the E911 system, training costs for PSAP call takers, supervisors, and managers in the proper methods and techniques used in taking and transferring E911 calls, costs to train and educate PSAP employees regarding E911 service or E911 equipment, including fees collected by the Department of Health for the certification and recertification of 911 public safety telecommunicators as required under s , and expenses required to develop and maintain all information, including ALI and ANI databases and other information source repositories, necessary to properly inform call takers as to location address, type of emergency, and other information directly relevant to the E911 call-taking and transferring function and vehicle costs for E911 GIS mapping and administration. Moneys derived from the fee may also be used for next-generation E911 network services, next-generation E911 database services, next-generation E911 equipment, and wireless E911 routing systems. e. Cleanup Issue Outdated provisions and language should be removed from the statutes for clarity and to eliminate confusion. Eliminate outdated provisions and language from the statutes. Suggested statute modification: s (5)(d) The first vacancy in a wireless provider representative position occurring after July 1, 2007, must be filled by appointment of a local exchange company representative. Until the appointment is made, there shall be only one local exchange company representative serving on the board, notwithstanding any other provision to the contrary. E911 Board 2010 Annual Report Page 35 of 42 2/28/2011

44 s (6)(a)3.d. By September 1, 2007, the board shall authorize the transfer of up to $15 million to the counties from existing money within the fund established under s (1). The money shall be disbursed equitably to all of the counties using a timeframe and distribution methodology established by the board before September 1, 2007, in order to prevent a loss to the counties in the ordinary and expected time value of money caused by any timing delay in remittance to the counties of wireline fees caused by the one-time transfer of collecting wireline fees by the counties to the board. All disbursements for this purpose must be returned to the fund from future remittances by the nonwireless category. s (6)(a)3.b. Revenues in the fund which have not been disbursed because sworn invoices as required by s (2)(d) have not been submitted to the board may be used by the board as needed to provide grants to counties for the purpose of upgrading E911 systems. The counties must use the funds only for capital expenditures directly attributable to establishing and provisioning E911 services, which may include nextgeneration deployment. Prior to the distribution of grants, the board shall provide 90 days written notice to all counties and publish electronically an approved application process. County grant applications shall be prioritized based on the availability of funds, current system life expectancy, system replacement needs, and Phase II compliance per the Federal Communications Commission. No grants will be available to any county for nextgeneration deployment until all counties are Phase II complete. The board shall take all actions within its authority to ensure that county recipients of such grants use these funds only for the purpose under which they have been provided and may take any actions within its authority to secure county repayment of grant revenues upon determination that the funds were not used for the purpose under which they were provided. Note: All counties report Phase II Completion. s (7)(c) After July 1, 2004, t The board may secure the services of an independent accounting firm via invitation to bid, request for proposals, invitation to negotiate, or professional contracts already established at the Division of Purchasing, Department of Management Services, for certified public accounting firms, or the board may hire and retain professional accounting staff to accomplish these functions. s (8)(e) Effective September 1, 2007, v Voice communications services providers billing the fee to subscribers shall deliver revenues from the fee to the board within 60 days after the end of the month in which the fee was billed, together with a monthly report of the number of service identifiers in each county. s (8)(h) No later than November 1, 2007, t The board may adjust the allocation percentages for distribution of the fund as provided in s When setting the percentages and contemplating any adjustments to the fee, the board shall consider the following: s (2)(e) Notwithstanding paragraphs (a) and (d), the amount of money that remained in the wireless 911 system fund on December 31, 2006, must be disbursed to wireless providers for the recovery of allowable costs incurred in previous years ending December 31, 2006, and in accordance with paragraph (d). In order to be eligible for recovered costs incurred under paragraph (d), a wireless provider must submit sworn invoices to the board by December 31, The board must disburse the designated funds in the wireless 911 system fund on or after January 1, s (2)(h) By September 1, 2007, up to $15 million of the existing 911 system fund shall be available for distribution by the board to the counties in order to prevent a loss in the ordinary and expected time value of money caused by any timing delay in remittance to the counties of wireline fees caused by the one-time transfer of collecting wireline fees by the counties to the board. All disbursements for this purpose must be returned to the fund from the future remittance by the nonwireless category. f. Definitions Next Generation 911 is referenced in the statutes without a definition of the term. A definition of Next Generation 911 is needed for allowable expenditures. E911 Board 2010 Annual Report Page 36 of 42 2/28/2011

45 Suggested statute addition: s (3)(ii) s (3)(ii) Next Generation 911 (NG-911) means the designation for an advanced 911 emergency communications system or service that provides a communications service subscriber with 911 service and, in addition, directs 911 emergency requests for assistance to appropriate public safety answering points based on the geographical location from which the request originated, or as otherwise provided in the State E911 Plan under s , and that provides for automatic number identification and automatic location identification features and emergency data information through managed IP-based networks. g. E911 Board Membership The statutes reference that E911 Board membership by telecommunications industry representatives is recommended by the FTIA. Based on information provided by the FTIA, the association may be discontinued. Modifications are recommended to strike the FTIA recommendations from the statutes and utilize an E911 Board notification and process procedure to solicit candidates for Governor selection and appointment. The current E911 Board notification and process procedure for county representatives selection is for county 911 coordinator candidates (in the respective category) to obtain approval from their county management to serve on the E911 Board. The top three candidates are selected by the county 911 coordinators for submission to the FAC. The FAC is responsible for submission to the Governor. Modifications are recommended to strike the FAC submission requirements from the statutes and utilize the DMS for submission directly to the Governor for selection and appointment. Suggested statute modification: s (5)(b) s (5)(b) The board shall consist of nine members, one of whom must be the system director designated under s (5), or his or her designee, who shall serve as the chair of the board. The remaining eight members of the board shall be appointed by the Governor and must be composed of four county 911 coordinators, consisting of a representative from a rural county, a representative from a medium county, a representative from a large county, and an at-large representative recommended by the Florida Association of Counties in consultation with the county 911 coordinators; two local exchange carrier or voice over internet protocol members, one of which must be the local exchange carrier having the greatest number of access lines in the state; and two members from the wireless telecommunications industry recommended by the Florida Telecommunications Industry Association in consultation with the local exchange carrier, wireless or voice over internet protocol telecommunications industry. In recommending members from the wireless telecommunications industry, consideration must be given to wireless providers who are not affiliated with local exchange carriers. Not more than one member may be appointed to represent any single provider on the board. Board member nominations will be submitted to the office, which shall submit the names to the Governor, based on the Board member appointment process. In the event that the telecommunications industry does not provide representatives for consideration, the Board member nominations may be sought from the 911 industry. E911 Board 2010 Annual Report Page 37 of 42 2/28/2011

46 h. Increase E911 Board Authority on E911 Grants This provides the ability for E911 Board to utilize E911 Trust Fund revenues, which have not been disbursed for service providers; for E911 Rural County Grants, E911 State Grants and Federal grant matching funds to the office, for the purposes of improving statewide E911 programs, projects and assistance to counties on E911 systems. Suggested statute modification: s (6)(a)3.b. s (6)(a)3.b. Revenues in the fund which have not been disbursed because sworn invoices as required by s (2)(d) have not been submitted to the board may be used by the board as needed to provide matching funds for federal grant E911 or NG-911 programs or for grants to rural or all counties for the purpose of upgrading E911 systems. The counties must use the funds only for capital expenditures directly attributable to establishing and provisioning E911 services, which may include next-generation deployment... i. E911 Board Consulting Services There are additional items that may necessitate legislative changes but at this time require research and evaluation. Legislative change is needed to allow the E911 Board to obtain consulting services to study, recommend, and report needed modifications. The E911 Board needs the ability to procure consultant services with experience in the area of telecommunications and emergency 911 issues, for the purposes of performing the technical studies to provide a report to the legislature. Suggested statute addition: s (6)(a)(TBD) s (6)(a)(TBD) Issue a request for proposals as provided in Chapter 287 for the purpose of retaining independent consulting services that shall possess experience in the area of telecommunications and emergency 911 issues, for the purposes of performing the technical studies and reports on Next Generation 911 and other E911 issues. The following items are suggested for development for inclusion in future legislation. j. Consolidation of Public Safety Answering Points Counties should remain responsible for, and in charge of their county 911 system, including determination of the quantity and location of the PSAPs. A study should be conducted to determine if modifications may be needed to limit the number of PSAPs because of the fee revenue limitations. Access to the E911 fee revenue may need to be constrained to make the best use of limited E911 fee revenues. Criteria, such as the PSAP s call volume, should be developed to determine limits for consolidation. Counties that desire or need additional PSAPs would be able to do so by using general revenues. Allowable expenditures may need to be authorized for limited remodeling costs for consolidating PSAPs. E911 Board 2010 Annual Report Page 38 of 42 2/28/2011

47 k. Public Switch Automatic Location Information (F.S ) Legislative action is needed to require E911 location information for wireline and VoIP service PBX switches. Current legislation requires that each system have the capability to provide station level identification; however, there is nothing to mandate provision of location information. Each PBX and multi-line telephone system (MLTS) should provide the same level of E911 service that is provided by other communication services in Florida, including automatic location information to the station level or an Emergency Response Location ( ERL ) identifier. System and requirement limits should be studied and provided for small facilities and systems. l. E911 Fee Remittance Issues Fee remittance modifications are needed to include E911 fee revenue from all services and devices that access 911. Fee remittance modifications, including E911 fee revenue from all services and devices that access 911, to assure that all telecommunication services are competitively neutral and collect the fee revenue needed to maintain the E911 services. Providers promote E911 service as a standard feature or function of their products and services. During the 2010 legislative session, the legislature extended the suspension for collections of prepaid calling card arrangements. The legislation also suspended collections of all wireless prepaid service. With the continued consumer trends from wireless contract services to prepaid calling arrangements, legislative changes are necessary for the uncollected fee revenue. There are a variety of prepaid methods and service plans. Each service offering provides a unique set of fee collection issues. The E911 Board completed the Prepaid Study required by the 2007 legislation and recommended collections on prepaid wireless. The E911 Board determined, at public workshops during the rulemaking process, that legislative changes were necessary to enable collection of the prepaid wireless fee. The E911 Board Legislative Task Force worked with representatives of the parties involved to develop potential legislation to address this issue. Further action is required to assist in the development of statutory language for the collection of this E911 fee revenue. The proposed study and development of these changes should begin in 2011 and then be vetted through a legislative task force, in preparation of the expiring suspension for collections of the prepaid E911 fee. VoIP devices, products, and services that presently do not collect the E911 fee should be addressed in legislation to require the remittance of fees for the emergency response service that the providers advertise as part of their product offering. Resolve VoIP product issues on devices similar to MagicJack that indicate they are not required to submit E911 remittances, because they are a device and not a service. m. Modify and update current legislation for NG-911 Issues Current legislation is written for the implementation of 911 and E911 with the addition of allowable expenditures for NG-911. The statutes need to be updated to ensure that the legislative and regulatory provisions for Florida s 911 system include NG-911 service features and functions, including text, data, and video. The statutes should address all phases and stages of 911 systems. E911 Board 2010 Annual Report Page 39 of 42 2/28/2011

48 3. Leadership Support Florida s leadership in the deployment of E911 has been accomplished through ongoing cooperation between all stakeholders, including the legislature, county 911 coordinators, wireless industry, LEC industry, and vendors, with the E911 Board acting as catalyst. Deploying future NG-911 network infrastructure and services requires no less of a concerted effort by all stakeholders. In order to maintain Florida s position as a national leader in 911 services, the continued support of the Florida Legislature and Governor s Office is essential. L. Federal Issues In 2010, the FCC introduced its steps toward migrating to a national NG-911 system. The efforts of the past year related to information gathering on NG-911 impacts, location accuracy, and how NG-911 can accommodate new IP-based technologies and networks. In March 2010, the FCC s National Broadband Plan 64 included recommendations on NG-911 and on location accuracy recommendations and requirements. The National Broadband Plan also indicated that there is limited information available about the implementation costs for NG-911. Recommendations from the National Broadband Plan included funding NHTSA to prepare a report addressing the funding issue and identifying the costs and the enactment of a federal NG-911 regulatory framework. In September 2010, the FCC released Wireless E911 Location Accuracy requirements and provided a further notice of proposed rulemaking and a Notice of Inquiry (NOI) on E911 accuracy and the new communication technologies that will impact NG-911. In August 2010, the FCC sought comments on creating a Cybersecurity Roadmap. The FCC, in November 2010, held a workshop on Cybersecurity Roadmap, which is another recommendation in the National Broadband Plan. This roadmap is the initial step for determining the five most critical components to communications infrastructure threats, and also includes a two year plan to address the threats. Finally, in December 2010, the FCC released an NOI on how to further the transition to IPbased communications, initiating a comprehensive proceeding on NG-911. The FCC requested comments on how advanced communication technologies can enable subscribers using advanced IP-based technologies transmitting voice, text, video, and pictures to obtain emergency assistance. The proceedings are to address how to transition between E911 system technologies and networks and NG-911 IP-based systems, and how the gaps can be bridged. The FCC technical and policy issues regarding E911 and NG-911 are regularly monitored and reviewed by the E911 Board and DMS. These issues and mandatory requirements can directly affect PSAP requirements, which must be factored into financial projections and county funding needs. 64 See in Chapter 16 Public Safety. E911 Board 2010 Annual Report Page 40 of 42 2/28/2011

49 M. 911 Disability Access Senate Bill S.3304: The Twenty-First Century Communications and Video Accessibility Act of 2010 was passed by the House and Senate and was signed by the President on Oct. 8, The intent is to increase the access of persons with disabilities to modern communications. The Act requires the FCC to establish an advisory committee to conduct a national survey of individuals to determine the most effective and efficient technologies and methods by which to enable access to emergency services by individuals with disabilities. In December 2010, the FCC established the Emergency Access Advisory Committee (EAAC) to develop and submit recommendations to implement the most effective and efficient methods and technologies to enable NG-911 access for individuals with disabilities. The EAAC is to conduct the survey and submit its recommendations to implement such technologies and methods within one year. The study shall include actions, protocols, technical capabilities, and technical requirements necessary as a part of the IP-enabled network migration to achieve reliable, interoperable communication transmitted. The recommendations are to include the establishment of PSAP technical standards and communication devices, technologies, and equipment. This will include information on the possible phase out of the use of TTY technology with more effective and efficient technologies and methods. The study and recommendations should take into account what is technically and economically feasible. Establishment of rules to update the FCC s rules with respect to 911 services and E911 services for users of telecommunications relay services as new technologies are adopted by providers. The FCC has the authority to promulgate regulations to implement the committee s recommendations along with other regulations, technical standards, protocols, and procedures as are necessary to achieve reliable interoperable communications. In addition to the FCC committee on NG-911 access for individuals with disabilities, the Department of Justice is considering revisions to the Title II Americans with Disabilities Act (ADA) regulations. In July 2010, they invited comments in an Advanced Notice of Proposed Rulemaking to assure that individuals with disabilities will have direct access to 911 services with NG-911 and in the interim until it is implemented. Included is information on State and Local government plans to assure direct NG-911 access for individuals with disabilities. N. OTHER OUTSTANDING ISSUES Non-Service Initialized Wireless Telephones PSAPs are still experiencing problems with false requests for police assistance, prank calls, and harassing, insulting, or abusive remarks to the call taker. These issues along with hang-ups and misdials draw the call takers time away from dealing with emergency calls. These calls can also delay emergency response by having emergency responders deal with non-emergency or factitious calls. The FCC requires the delivery of all wireless 911 calls to PSAPs, including calls from non-service initialized phones. The FCC stated that PSAPs may work with carriers and law enforcement to block harassing calls from non-service initialized phones but has not provided any explanation of what qualifies as a harassing call or what blocks PSAPs may use. E911 Board 2010 Annual Report Page 41 of 42 2/28/2011

50 The FCC issued an NOI seeking public input of fraudulent 911 calls made from nonservice initialized wireless phones in April The information was requested because of a Tennessee Emergency Communications Board petition to the FCC for clarification. The Florida E911 Board gathered information on the number of calls to PSAPs by non-service initialized phones for inclusion in the petition. 65 The FCC Public Safety Bureau has not acted on the original petition, or the July 2008, comments received from the NOI. A new petition, submitted in February 2011, requests the FCC to convene an advisory working group to consider and recommend technical and/or operational solutions. ENHANCE 911 Act of 2004 and NET 911 Improvement Act of 2008, Federal Grants The federal government established the National 911 Implementation and Coordination Office based on the ENHANCE 911 Act of 2004 (Public Law ) authorizing up to $250 million per year in matching grants for states, local government, and tribal organizations to improve their E911 systems. The NET 911 Improvement Act of 2008 expanded the ENHANCE 911 Act of 2004 to include IP-enabled emergency network systems. The NHTSA published the Notice of Proposed Rulemaking for the ENHANCE 911 Act Grant Program in the Federal Register. Of the $43.5 million authorized, over $40 million was awarded for grants. Florida received $2,669, of this available funding opportunity. This funding is being used in combination with the 50 percent match of county, E911 Board trust funds and the DMS Division of Telecommunications soft match engineering costs to begin the strategic initiatives discussed in Section G. Congress is still working on reenactment of the ENHANCE 911 Act and the appropriations of this funding. If and when the additional grants are authorized, DMS and counties may require additional E911 Board grant funding to assist with the matching portion of the grant. O. FINANCIAL REPORT The Auditor General is currently conducting the annual audit of the Emergency Communications Number E911 System Fund. The Emergency Communications Number E911 System Fund Financial Report from the accounting firm of Law, Redd, Crona & Munroe, P.A. is in Appendix Ten Florida counties participated in the survey. During the month of December 2006, non-service initialized phones accounted for 8,945 calls, of these only 3.6 percent were noted to be legitimate. While the majority of the calls (69 percent) were hang ups, 12 percent were bogus or prank calls and 39 calls were threatening in nature. The information includes an analysis on repeated calls from the same cell phones; over 300 prank calls were noted from one phone. E911 Board 2010 Annual Report Page 42 of 42 2/28/2011

51 E911 Board 2010 Annual Report Appendix 1. Emergency Communications Number E911 System Fund Financial Report

52 STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES EMERGENCY COMMUNICATIONS NUMBER E911 SYSTEM FUND FINANCIAL REPORT (REVIEWED) FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010

53 Table of Contents Page Number Independent Accountant's Review Report 1 Financial Statement Statement ofcash Receipts and Disbursements and Change in Cash and Investments Notes to Financial Statement - Cash Basis 3 4 Supplementary Information Exhibits 1. Disbursements to Counties - Cash Basis 2. Assistance to Rural Counties - Cash Basis 3. E911 State Grants - Cash Basis 4. Reimbursements to Wireless Telephone Service Providers - Cash Basis 5. General and Administrative Disbursements - Cash Basis

54 Law, Redd, Crona & Munroe, EA. Cerl(/ied Pllhlic AccoIIIIICll11s INDEPENDENT ACCOUNTANT'S REVIEW REPORT February 8,2011 Members ofthe Board State offlorida, Department ofmanagement Services Emergency Communications Number E911 System Fund Tallahassee, Florida We have reviewed the accompanying statement of cash receipts and disbursements and change in cash and investments of the State of Florida, Department of Management Services, Emergency Communications Number E911 System Fund (a Special Revenue Fund) for the four quarters and twelve months ended December 31, The financial statement has been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. A review includes primarily applying analytical procedures to financial data and making inquires of the State of Florida, Department of Management Services, Emergency Communications Number E9ll System Fund personnel. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statement as a whole. Accordingly, we do not express such an OpInIOn. The State of Florida, Department of Management Services, Emergency Communications Number E911 System Fund personnel is responsible for the preparation and fair presentation of the financial statement in accordance with the cash basis of accounting and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation ofthe financial statement. Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statement. We believe that the results ofour procedures provide a reasonable basis for our report. The accompanying statement was prepared for the purpose of presenting the cash receipts and disbursements and change in cash and investments of the State of Florida, Department of Management Services, Emergency Communications Number E911 System Fund, pursuant to the regulatory provision described in Note 1, and is not intended to be a complete presentation ofthe Fund's assets, liabilities, revenues and expenditures Centre Pointe Boulevard, Suite 200 Tallahassee, Florida Telephone (850) Fax (850) Melllbers: Alllericanfllslillile oice/lifted Pllblic AccOllnlClllls alld FlO/ida fnslilllle oice/lified Pliblic A CCOII lilaills

55 Page Two Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statement in order for it to be in conformity with the cash basis of accounting as described in Note 1. Our review was made for the purpose of expressing a conclusion that there are no material modifications that should be made to the financial statement in order for it to be in conformity with the cash basis of accounting as described in Note 1. The information included in the accompanying Exhibits 1 through 5 is presented only for purposes of additional analysis and has been subjected to the inquiry and analytical procedures applied in the review ofthe financial statement, and we are not aware ofany material modifications that should be made thereto. ~/~,J ~,.It-\~JI('.l\, Law, Redd, Crona & Munroe, P.A. 2

56 STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES EMERGENCY COMMUNICATIONS NUMBER E911 SYSTEM FUND STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS AND CHANGE IN CASH AND INVESTMENTS (REVIEWED) For the Twelve Months Ended December 31,2010 Quarter Ended Quarter Ended Quarter Ended Quarter Ended 3/31/2010 6/30/2010 9/30/ /31/2010 Total RECEIPTS: Fees: Wireless $ 18,312,672 $ 20,548,683 $ 18,171,179 $ 20,138,445 $ 77,170,979 Non-Wireless 11,506,752 11,964,707 11,109,236 11,307,626 45,888,321 Interest income 186, , , , ,037 Refunds ofgrant awards 417, ,645 82, ,418 1,262,321 Total 30,423,444 33,178,751 29,664,149 32,054, ,320,658 DISBURSEMENTS: Disbursements to counties - Exhibit 1 24,645,994 33,431,696 24,177,866 21,002, ,258,361 Grants to rural counties - Exhibit 2 711, ,115,522 1,827,028 Supplemental disbursements to rural counties - Exhibit 2 202, , , , ,206 E911 State Grants - Exhibit ,408,912 3,408,912 Provider reimbursements - Exhibit 4 4,558,638 2,473,278 2,969,489 2,487,500 12,488,905 General and administrative - Exhibit 5 222, , , , ,000 Total $ 30,340,228 $ 36,396,242 $ 27,541,770 $ 28,467, ,745,412 INCREASE IN CASH AND INVESTMENTS 2,575,246 Cash and investments at January 1, ,905,971 Cash and investments at December 31, 2010 (Note 2) $ 40,481,217 See Accompanying Notes and Independent Accountant's Review Report. 3

57 STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES EMERGENCY COMMUNICATIONS NUMBER E911 SYSTEM FUND NOTES TO FINANCIAL STATEMENT - CASH BASIS (REVIEWED) DECEMBER 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Wireless Emergency Telephone System Fund (E911 Fund) was established during 1999 pursuant to the "Wireless Emergency Communications Act", Sections and 173 Florida Statutes, for the purpose of implementing a cohesive statewide emergency telephone number "911" program. The program provides citizens with rapid direct access to public safety agencies by dialing "911" with the objective of reducing response time to situations requiring emergency services. Effective May 24, 2007, the fund name was changed to Emergency Communications Number E911 System Fund and legislation authorized the collection ofnon-wireless fees by the E911 Board in addition to the wireless fees. Effective September 1,2007, the non-wireless fees collected by voice communications services providers shall be remitted to the E911 Board within 60 days after the end ofthe month in which the fee was billed. The following summary of the Emergency Communications Number E911 System Fund's significant accounting policies is presented to assist the reader in interpreting the accompanying statement of cash receipts and disbursements and change in cash and investments. These policies should be viewed as an integral part ofthe accompanying financial statement. Reporting Entity Financial statements ofthe E911 Fund are an integral part ofthe financial statements ofthe State of Florida (the primary government). The E911 Fund financial statements are included as a blended component unit (Special Revenue Fund) in the financial statements of the State of Florida, the reporting entity. There are no component units for the E911 Fund to consider for inclusion in its financial statements. Basis ofpresentation Pursuant to Section (6)(c), Florida Statutes, the accompanying statement ofcash receipts and disbursements and change in cash and investments of the E911 Fund for the twelve months ended December 31, 2010 has been prepared on the cash basis of accounting. Under that basis, the only assets recognized are cash and investments, and no liabilities are recognized. All transactions are recognized as either cash receipts or disbursements, and noncash transactions are not recorded. The cash basis differs from generally accepted accounting principles primarily because accounts receivable from service providers; and accounts payable to vendors, providers and counties are not included in the financial statement. 4