CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: August 3, 2021 Action Required: Approved Authorization Resolution Presenter: Sonny Saxton, Executive Director, Emergency Communications Center Staff Contacts: Letitia Shelton, Deputy City Manager Title: Charlottesville-U.V.A.-Albemarle County Emergency Communications Center Fund Balance Retention - $463,074 Background: A 1984 agreement between the County of Albemarle, City of Charlottesville, and University of Virginia, developed the joint Emergency Communications Center. An addendum in 2013, focused on operational, capital, and 800 MHz funding support, stipulated the E.C.C. may retain an additional year-end fund balance that exceeds 25% of the Center's total annual operating budget for alternative purposes, subject to the approval of the Participants. The F.Y. 2019 year-end settlement process for the Charlottesville-U.V.A.-Albemarle County Emergency Communications Center (E.C.C.) resulted in a fund balance of $3,061,114, which is $1,623,074 above 25% of the E.C.C.’s total annual operating budget. Of that amount the City’s share would be $463,074, or 28.5307% or the total amount, which could potentially be returned to the City. Discussion: The E.C.C. is formally requesting that fund balance exceeding 25% of the E.C.C.'s total operating budget, or $1,623,074, be retained by the E.C.C. The recommended usage of retained funds would be subject to additional review and approval by the E.C.C. Management Board, of which the City has representation. The proposed recommended uses of these additional funds include: F.Y. 21 Unfunded Capital Outlay Requests $578,868 Operating Contingency $184,255 COVID-19 Community Response and/or Critical Infrastructure $859,951 Similar requests have been sent to the other partners, Albemarle County and the University of Virginia, with the Albemarle County Board of Supervisors approving the request at their July 1, 2020 Board of Supervisors meeting. Alignment with City Council’s Vision and Strategic Plan: Approval of this agenda item aligns directly with Council’s vision for Charlottesville to be America’s Healthiest City. This request also aligns with Strategic Plan Goal 2: A Healthy and Safe City, and more specifically Objective 2.3 – Improve community health and safety outcomes by connecting residents with effective resources. Community Engagement: N/A Budgetary Impact: There is no impact to the City’s F.Y. 21 appropriated budget as no additional funds are being requested. The funds being requested represent the City’s share of unspent funds paid to the E.C.C. as part of the City’s annual contributions over several previous fiscal years. These funds would remain in the E.C.C. budget to be expended upon approval by the E.C.C. Management Board. Recommendation: Staff recommends approval of the Emergency Communication Center’s request to use F.Y. 2019 surplus funds of $463,074. Albemarle County received and approved a similar request. Alternatives: If this request is rejected, then the Emergency Communications Center would return the City’s share of the fund balance ($463,074) to the City as a one-time payment. However, the E.C.C. would then return to Council with a future request for the City’s share of the unfunded F.Y. 21 capital outlay costs and potential COVID-19 Community Response costs. Attachments: • Resolution • E.C.C. Request to Retain Funds Letter • 2013 Addendum to the 1984 Agreement between the County of Albemarle, City of Charlottesville, and University of Virginia, Developing the joint Emergency Communications Center RESOLUTION Authorization of Retention of Fund Balance in Excess of 25% for Charlottesville-UVA- Albemarle County Emergency Communications Center $463,074 WHEREAS, the City of Charlottesville, Virginia, entered into an agreement on January 20, 1984, between the County of Albemarle, City of Charlottesville, and University of Virginia, to developed the joint Emergency Communications Center; WHEREAS, an addendum to that agreement in January 2013, focused on operational, capital, and 800 MHz funding support, stipulated the ECC may retain an additional year-end fund balance that exceeds 25% of the Center's total annual operating budget for alternative purposes, subject to the approval of the Participants; NOW, THEREFORE BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that the sum of $463,074 be retained by the Charlottesville-UVA-Albemarle County Emergency Communications Center to be used for the purposes approved by the ECC Management Board. ADDENDUM #2 TO AGREEMENT DATED JANUARY 20, 1984 BY AND AMONG THE COUNTY OF ALBEMARLE, VIRGINIA, THE CITY OF CHARLOTTESVILLE, VIRGINIA, AND THE RECTOR AND VISITORS OF THE UNIVERSITY OF VIRGINIA This Addendum #2, dated January I , 20 1 3 , to the Agreement dated January 20, 1 984, and first amended October 1 0, 2002, by and among the COUNTY OF ALB EMARLE, VIRGINIA, the CITY OF CHARLOTTESVILLE, VIRGINIA, and the RECTOR and VISITORS of THE UNIVERSITY OF VIRG INIA (collectively referred to as the "Pa1ticipants"). The Participants agree to the foll owing modifications to the Agreement: 1. Section IV ("Allocation of Costs") is del eted and replaced with the fol lowing paragraphs : a. Operating Costs. Beginni ng with the fiscal year commencing July 1 , 20 1 3 , the Management Board shall submit the annual budget request for the Center to each Participant by January I 5 th of each year in a format generally in accordance with the Uniform Financial Reporting System of the Auditor of Publ ic Accounts for the Commonwealth of Virginia. Operating costs wi l l be al located among the Partici pants i n direct propo1tion to their respective shares of the percentage of the numbers of calls for servi ce recei ved by the Center. In preparing for the budget for each year, the Management Board shal l obtain the actual number of calls received by the Center for the immediately preceding 1 2 month period of October 1 through September 30. The Management Board shall use such actual call numbers to recompute the al location formula for each next ensuing fiscal year. The recomputation shall be made as soon after January 1 as possi ble to make accurate figures available to the Participants for their annual budget. A hypothetical example of the Funding Formula calcul ated under thi s section if it had applied to fiscal year 20 1 2-20 1 3 is attached hereto as Exhibit A. The budget shares for the Participants under the formula calculated under thi s section are set fmth on Exhibit B attached hereto. b. Capital Improvements Costs. Non-recurring capital items for the Center shall be submi tted to each Participant as part of its Capital Improvement Plan (CIP). Capital items include (i) l and acquisition, and construction of new faci lities : (ii) renovations or additions to existing facilities; (i ii) major studies such as facility or systems assessments, engineering or feasibi l ity studies related to faci lity or system needs; and (iv) equipment requirements. Funding for capital items shall be subj ect to approval by the Patticipants. The cost for capital items for the Center shal l be al located among the Participants according to their percentage of actual calls to the Center as determined in section IV(a) above for the fiscal year such capital items are approved by a Patticipant; provided, however, that each Participant's percentage of cost for a capital item shal l not be recomputed each year, but shall remain constant for such capital item. By way of example, the Computer Aided Dispatch System (CADS) is a capital item. The cost allocati on of the CADS proj ect is based on the cost al l ocati on among the Participants in effect at the time that proj ect was approved by the Participants and shal l remain constant throughout such proj ect, not-withstanding the recalculation of allocations for operating costs pursuant to section IV(a) above. c. 800 MHz System. Notwithstanding paragraphs a and b above, the capital and operational cost al l ocation of the 800 MHz Public Safety Proj ect (the 800 MHz System) was established by an Agreement dated June 27, 2003 among the Participants, with the cost allocation based on the number of radios used in the 800 MHz System by the Participants and certain third paity users. The capital cost al locati on of the 800 MHz System shal l remain fixed pursuant to the terms of the Agreement dated June 27, 2003 . The operational cost of the 800 M Hz System shal l continue to be recomputed each year allocating the cost to the Participants equal to the percentage of the number of radios used by each Participant in the 800 MHz System, Unless otherwise agreed to, the capital and operational cost for any communications system which replaces the 800 MHz System will also be allocated among the Participants equal to the percentage of the number of radios used by each Participant in such replacement system. d. Fund Balance. The Center may retain a year-end fund balance not to exceed twenty-five percent (25%) of the Center's total annual operating budget. The Management Board will, after each fiscal year audit, return to each Pmticipant its share of any carryover funds in excess of those amounts necessary to fund the reserve fund. The return of such funds to each Participant will be prorated using the allocation formula calculated pursuant to section IV(a) above for such fiscal year. In lieu of returning such funds, the Management Board may formally request alternative uses for such carryover funds, subject to the approval of the Participants. 2. Except as amended hereby, the Agreement remains in full force and effect and the Participants hereby ratify and confirm the provisions, terms and conditions set forth in the Agreement and any amendments or addenda thereto. WITNESS the following signatures. COUNTY OF ALBEMARLE Date Approved as to form: County Attorney 2 CITY OF CHARLOTTESVILLE Date Approved as to fonn: 3 RECTOR AND VISITORS OF THE UNI SITY OF VIRGINIA University Counsel 4