US Digital Designs, Inc.
1835 E 6th Street, Suite 27
Tempe, Arizona 85281
Phone: (602) 687-1730
February 2, 2022
Barstow Fire Protection District
220 East Mountain View Street, Suite A
Barstow, California 92311
To Whom it May Concern:
The Barstow Fire Protection District is currently is researching the viability of using the G2 Fire Station Alerting System (the “System”) within its department to receive alerts and transmit station alerts audibly and visually within the station and to personnel. The System is designed to use its Communications Gateways, interfaced to the dispatch center’s CAD system, to automatically send alerting messages within the department directly to the station and over radio channels. Transmission of alerts is done in milliseconds and has been proven to reduce response times.
US Digital Designs, Inc. is the sole manufacturer of the Phoenix G2 Fire Station Alerting system.
All design, manufacturing, service and support originates from our Tempe, Arizona location. As the manufacturer, US Digital Designs is able to offer the lowest factory-direct pricing to the Barstow Fire Protection District. No distributor of the Phoenix G2 System is able to provide pricing at a lower price. In addition, with the exception of certified installation companies authorized to perform “installation only” services, no other organization or entity is able or authorized to service and/or support our station alerting systems.
The System has several features that set it apart from other fire station alerting systems on the market, and will provide the District with the most cost-effective alerting system that will maximize dispatchers’ and responders’ situational awareness, improve response times, reduce personnel stress, and a reduce homeowner insurance rates. These features include:
• Reliability: The Communications Gateway (the server located in the dispatch center that interfaces with the CAD system) is a redundant hot-standby pair of servers running a custom Linux kernel with RAID 1 mirrored data disks, providing high availability. All unnecessary services, software, “bloatware” have been disabled, providing protection against security vulnerabilities, and requiring less memory to run applications. Basically, anything not needed is removed, and only necessary software is included. It is the same operating system platform used by Google server farms and Microsoft Cloud uses. This results in the highest mission-critical stability available, allowing the System to regularly achieve 24/7 up time. Several G2 Systems have been in use for over 10 years with some servers achieving over 1200 days of up time.
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Other system manufacturers utilize Windows servers, often running multiple versions of Windows, with all software features included, requiring more memory and reboots for Windows updates.
• One of the First and Only Smart-Phone/Mobile Station Alerting App to Partner with First Net. USDD has developed the its smartphone/mobile station alerting app that directly ties to the System and CAD, and sends simultaneous alerts, such as dispatch announcements, administrative alerts, IT support notifications and application update notifications, to personnel. The mobile alerts plays the same tones as those in the station, shows incident location using the device's built-in mapping capabilities and enables users to save notifications for future reference and search for previous notifications. USDD's app provides fire agencies with yet another dependable means of redundant notification for the best situational awareness and efficient response. The app is provided at no extra cost to all customers under warranty or under a Service Agreement with USDD. Similar commercial fire alert apps on the market cost approximately $1,000 in license costs per user annually.
• Automated Voice Alerts. The Phoenix G2 Voice Alert uses the most advanced and accepted automated voice technology on the market that generates speech in a fraction of a second. The VoiceAlert interfaces with the CAD to provide a fully automated text-tospeech voice dispatch that can be delivered either digitally or through a voice radio system. The dispatch is made in a clear human-like voice, either male or female, and sent to individual stations simultaneously. The G2 VoiceEditor allows authorized personnel to edit the pronunciation of any word to be spoken by the system without USDD involvement or further cost to the customer. USDD will assist customers with adjustments that appear to be challenging. VoiceEditor also includes a feature to load a list of words or names that can be stepped through, played and marked for later adjustment speeding bulk changes if desired.
• Gateway Radio Interface (“GaRI”). The G2 GaRI will interface with the Department’s radio alerting system, to enable simultaneous automated VoiceAlerts to units without dispatcher intervention. The GaRI also allows the system to sense if the channel is busy and initiate transmission when the channel is free.
• Power over Ethernet (POE) Infrastructure. The G2 system uses a POE infrastructure that optimizes the most common and inexpensive CAT5e/CAT6 cabling, which minimizes the need for expensive additional UPS electrical circuits and related labor, and allows repurposing of existing cable infrastructure where available. Ultimately, this system cable infrastructure greatly reduces the labor and costs usually assumed with other station alerting systems.
• Network Friendly. The G2 system is designed to distribute quick alerting messages using low-bandwidth (our packet sizes are typically only 30-50kb), which optimizes the operation of legacy networks and other applications.
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• Interoperability. The Phoenix G2 System is used by several nearby communities. The use of a common alerting platform could enable Barstow Fire Protection District to enter into Auto-Aid/Mutual Aid/Interoperability Agreements that will provide better service and protection to these communities.
• Web-Based Updating, Remote Configuration, Troubleshooting, and Support. The G2 system is designed to interface with web browsers to facilitate updating, configuration and support. USDD and IT administrators can access the system remotely to configure and deploy software upgrades from any Web-enabled device, thereby reducing time and travel costs.
• No Software Feature 'Up-Sales'. All of the software features of the G2 system are built into every version of our software and are available immediately if and when they are needed. There are no extra costs for additional software if the system if expanded or upgraded.
• G2 Peripherals – Module Design. Each G2 Peripheral (i.e., message sign, sign remote, message remote, room remote, HDTV remote, illuminated speakers, color indicator remote, strobe light, I/O remote) connect to a centralized station controller via a single CAT cable for audio and Power over Ethernet (PoE) source, and will run off a battery backup during power failures. The G2 Peripherals can be configured for any condition or station layouts, enabling each station to phase in alerting system upgrades and additions at any time.
• FCC and TUV Compliance. The G2 System has undergone extensive safety testing and has passed FCC and TUV Rheinland ("TUV") safety standards, including being tested to UL 62368-1 standards. The TUV is similar to UL standards, but is applicable to international electrical safety standards. The UL 62368-1 safety standards are applied to Audio/Visual and information technology products. After being bombarded with radio frequencies, microwaves, electrical voltage and electrostatic pulses, and prolonged testing of power supply circuitry, safety, and emissions, the System met the rigorous safety standards and its components are compliant FCC 15 Class A electronics and related US, European and International standards. This is very important to the public safety industry, as the System was found not to interfere with public safety telecommunications, and conversely public safety telecommunications does not adversely affect the System.
The design and construction of critical components in the System make it virtually immune to damage from electrostatic "shocks." The Phoenix G2 System is the only fire station alerting system on the market that has met these strict standards. • USA Made. All products designed and manufactured by USDD are proudly 'Made in USA' compliant and serviced in the USA. All products are designed and manufactured at its Tempe, Arizona location. Likewise all service and support for the System is done from USDD’s Tempe, Arizona headquarters. No outsourcing. USDD also takes great pride in using minority and women owned businesses in its manufacturing process and installation.
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Please let us know if we may answer any additional questions. Thank you for the opportunity to support your community.
Sincerely,
Dominic Magnoni
Vice President
Phone: (602) 687-1730
Fax: (480) 290-7892
Email: [email protected]
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Regular Meeting
02/22/22 07:00 PM
Finance
Marc Puckett
Resolution
Doc ID: 4944
AGENDA ITEM
AGENDA MATTER:
PENSION FUNDING POLICY
EXECUTIVE SUMMARY:
DISCUSSION:
On October 4, 2021, City Council approved issuance of Pension Obligation Bonds (POBs) to stabilize pension funding and further reduce the overall cost of pension funding. Issuance of the POBs will result in savings from the existing Unfunded Actuarially Accrued liabilities amortization schedule.
Staff recommends establishing a Pension Funding Policy to set aside 50% of any savings from issuance of the POBs and establish a funding plan for any future UAL which may arise. Staff will also review and consider establishment of a Section 115 Trust should it be in the City's interests and advantageous to do so.
The City has a history of being fiscally conservative and maintaining responsible management and budgeting practices. The City recognizes that unfunded CalPERS liability can cause financial stress on the organization and redirect resources away from program and services vital to City operations. To better address this challenge, the City seeks to stabilize its unfunded CalPERS liability in the most costefficient manner possible. Establishment of a Pension Funding Policy is a practical tool to assist the City in accomplishing this goal.
FISCAL IMPACT:
There is no fiscal impact for this agenda item.
RECOMMENDED ACTION:
Staff recommends adoption of Resolution number 5077-2022 establishing a Pension Funding Policy for the City of Barstow to further reduce the overall cost of pension funding and help stabilize pension funding.
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RESOLUTION NO. 5077-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BARSTOW
ADOPTING THE CITY'S UNFUNDED ACCRUED LIABILITY PENSION
FUNDING POLICY
The City Council of the City of Barstow does hereby resolve as follows:
WHEREAS, the City currently provides employees with retirement benefits through CalPERS, a defined benefit pension program; and
WHEREAS, the CalPERS pension system currently stands at a funded ratio of 70% for the City’s Safety Employee group and a funded ratio of 79% for the City’s Miscellaneous Employee group as of the most recent actuarial valuation; and WHEREAS, in an effort to stabilize the overall pension fund, CalPERS has instituted new programs that require employers such as the City to accelerate payments to pay-down existing Unfunded Accrued Liabilities (UAL) account balances; and WHEREAS, the City currently has an UAL account balance of around $19 million, which is required to be paid off during the next 15-year period at 6.8% interest; and WHEREAS, to decrease overall costs, the City has considered refinancing the repayment of its UAL account balance to take advantage of historically low interest rates through use of a Pension Obligation Bond (POB); and
WHEREAS, to institute added fiscal discipline and future financial stability, concurrent with the development of the refinancing plan, the City has also developed a new financial policy that would mandate budgetary actions to facilitate the accelerated payoff of any future UAL account balances that may form; and
WHEREAS, the Unfunded Accrued Liability Pension Funding Policy (the "Policy") has been structured to maintain the City's sound financial position and ensure that all pension funding decisions are structured to protect both current and future taxpayers, ratepayers, employees, and residents of the City.
NOW, THEREFORE, the City Council of the City of Barstow does hereby resolve as follows:
SECTION 1. The City of Barstow Unfunded Accrued Liability Pension Funding Policy, included as Exhibit A, is hereby approved and adopted.
SECTION 2. Any action to either reduce the mandated savings amount or reduce the accelerated UAL repayment terms contained in the Policy can only be achieved through a vote of the City Council. Staff is further directed to codify terms of the Policy.
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SECTION 3. The City Manager, and the Finance Director, and all other officers of the City are hereby authorized and directed, jointly and severally, to do any and all things to effectuate the purposes of this Resolution and to implement the Policy, and any such actions previously taken by such officers are hereby ratified and confirmed.
SECTION 4. This Resolution shall take effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED THIS 22nd DAY OF FEBRUARY, 2022.
_______________________________
Paul Anthony Courtney, Dr.B.A, Mayor
Attest:
_________________________________
Andrea Flores, City Clerk
I, Andrea Flores, City Clerk of the City of Barstow and ex-officio Clerk of the Council, DO HEREBY CERTIFY UNDER PENALTY OF PERJURY that the foregoing is a true and correct copy of Resolution No. 5077-2022 of said Council which was adopted at its regular meeting of February 22, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_________________________________
Andrea Flores, City Clerk
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1 City of Barstow
Pension Funding Policy
This City Council adopted policy is intended to provide guidance and strategies for current and future City Councils to address the City’s retirement system obligations and liabilities. This document includes policy directives and financing mechanisms.
Purpose
The purpose of this Pension Funding Policy is to provide guidance on the development and of a funding plan for any Unfunded Accrued Liabilities (“UAL”) that are calculated annually by CalPERS, or for any unfunded accrued liabilities remaining immediately after the issuance of a Pension Obligation Bond (POB).
This funding Policy should also support the decision-making and budgeting process of the City Council and be consistent with the overall purpose and goals of the City of Barstow’s pension plan.
Background
The City of Barstow has a history of being fiscally conservative and maintaining fiscally responsible management and budgeting practices. The City recognizes that unfunded CalPERS liability can cause financial stress on the organization and redirect resources away from programs and services vital to City operations. To better address this challenge, the City seeks to stabilize its unfunded CalPERS liability in the most cost-efficient manner possible.
CalPERS Normal Cost represents the cost of pension benefits earned by current employees in the current fiscal year. Normal Costs are paid as a percentage of the City’s payroll. UAL represents unfunded benefits accumulated for employees’ prior years’ service, as well as costs related to changes in investment performance, employee/retiree events, benefit levels, and actuarial assumptions. UAL payments are fixed dollar amounts adjusted annually by CalPERS.
Remaining Unfunded Accrued Liability
On October 4, 2021, the City Council approved the issuance of a POB in an amount up to or equal of 100% of the UAL. After the deposit of bond proceeds to CalPERS, the City may or may not have a remaining UAL still owed to CalPERS.
If the City issues a POB for less than 100% of the UAL, any remaining unfunded liability will be accounted for separately, for the purposes of this Policy, from any new increase in the accrued unfunded liability resulting from annual actuarial valuation report changes.
The City will create a payoff / funding plan that will address this remaining unfunded liability immediately after the issuance of the POB. The remaining unfunded liability will be paid off or fully funded within a twenty (20) year period.
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2 New Unfunded Accrued Liability
Every year, CalPERS issues a new actuarial valuation report and recalculates the City of Barstow’s pension liability as of the new valuation date. If the value of the funded assets is not equivalent to this new liability amount, the City will incur a new unfunded accrued liability at that point in time. The unfunded accrued liability may increase or decrease from year to year, due to the following factors:
- Changes in actuarial assumptions and experience changes (e.g., changes in the discount (or expected earnings) rate of the pension system, changes in salaries, plan participants, etc.) - Changes in actuarial gains and losses due to asset returns being higher or lower than expected - Changes in plan benefits
Due to the possibility of a new UAL forming over time, the City of Barstow desires to create a policy in order to immediately address any new pension liabilities, or amortization bases, that arise (any new increase or decrease in the liability resulting from the annual actuarial valuation is identified as a separate line item, or amortization base, on the annual CalPERS actuarial valuation report). The table below describes the parameters for paying off and/or funding the UAL within a designated timeframe, based on the amount of the UAL, as follows:
New Unfunded Accrued Liability (Any new
liability incurred after the June 30, 2021
valuation report)
Payoff/ Funding Time Period
$0 to $1,000,000 Within 1 to 5 years
$1,000,001 to $2,000,000 Within 1 to 10 years
$2,000,001 to $3,000,000 Within 1 to 15 years
Over $3,000,000 Within 1 to 20 years
When the City is provided the annual valuation report from CALPERS each year, staff will present the matter to the City Council as part of the Mid-Year Budget Report. Staff’s presentation will include the following:
- The dollar amount of the new UAL (new amortization base) - The number of years that staff is recommending to pay off/fund the liability - The dollar amount of the annual contribution to be made - The funding source(s) of the payments
- The short-term and long-term financial impacts on the City’s General Fund reserve balance When a new amortization base results in a credit balance, the credit will be applied, first, to any negative bases during the same period and, secondly, against any prior year bases until the credit is fully exhausted.
The remaining outstanding liability will then be recalculated and a new payoff schedule and annual contribution will be determined based on the payoff schedule above.
Section 115 Trust
The City will explore establishing a Section 115 Pension Trust Fund to further stabilize pension funding.
Assets deposited into the trust can be accessed to pay employer contributions due CalPERS at any time to reduce volatility and offset unexpected pension rate increases. The trust will have funds deposited into it
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3 at the discretion of the City Council, based on recommendations made by City staff during the annual budget adoption process. For the calculation of funding levels, monies put in this trust will be treated the same as putting monies on deposit with CalPERS.
Additional Discretionary Payments
Additional Discretionary Payments (“ADP”) may be deposited with CalPERS at any time. After completion of the annual audit, all discretionary fund reserve balances will be reviewed by City staff. Based on any budgetary constraints at that time, a determination may be made that it is in the best interest of the City to use any available reserves or one-time savings from the prior fiscal year to make ADP’s. ADP's should not adversely affect the general operations or capital needs of the City.
Perpetual Set-Aside of 50 percent of Pension Obligation Bond Savings To further strengthen the City’s financial stability on a going forward basis, 50 percent of the cash flow savings arising from the issuance of a pension obligation bond (POB) will be budgeted on an annual basis for deposit into the City’s Section 115 Pension Trust Fund when established. The purpose of this action is to accumulate funding to offset any future UAL costs that may arise. Annual cash flow savings are determined by comparing a combination of annual POB debt service and unrefunded UAL payment (if any) against the actuarially determined UAL payment prior to POB issuance. This amount shall be adjusted each year by the annual Consumer Price Index for All Urban Consumers, all items, 1982-84 equals 100, as published by the United States Department of Labor, Bureau of Labor Statistics, for the Riverside-San Bernardino-Ontario Standardized Metropolitan Statistical Area (SMSA).
Allocation of Additional Resources
The City seeks to maintain adequate levels of reserves of at least 25 percent of each fiscal year’s adopted General Fund expenditure budget. To the extent that the City has excess reserves, the City shall endeavor to apply a portion of such monies toward its unfunded retirement costs in the form of either Additional Discretionary Payments to CalPERS directly, or deposit funds in either a designated reserve or in a Section 115 Trust, if established. This amount is over and above the set-aside of 50 percent of pension refinance savings.
Prepayment Options
Prior to the beginning of each fiscal year, staff will analyze the costs and benefits of prepaying amounts due to CalPERS for the following fiscal year and will pre-fund the annual required pension payments and funding permits. The City strives to continue taking advantage of any prepayment discount that is afforded by CALPERS.
Funding Levels
The City’s target funding level for its pension plans will be near 100 percent of the accrued liability. The City will strive to achieve this funding level through debt refinancing, allocation of reserves, and/or cost containment measures. The total funding amount will be a combination of the amount on deposit with CalPERS, any funds deposited in a Section 115 trust, and any funds reserved by the City that are designated for pension liabilities.
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4 Funding Options
Funding options for the remaining unfunded liability and/or any new unfunded accrued liabilities may include the use of assets held in a Section 115 Trust and/or allocating fund reserves from any allowable fund within the City.
Consideration of Future Pension Benefits
The issuance of a POB may result in the funding of the City’s pension plan with CalPERS up to, and even in excess of, 100 percent of the plan assets necessary to pay all pension liabilities. Although this situation may occur, the City would remain obligated to make annual debt service payments on the bonds. These payments are in lieu of annual UAL payments that the City would have made to CalPERS.
To the extent that the City is making any annual debt service payments on an issued POB, it is fiscally responsible for the City to not offer any enhanced pension benefits to City employees. This will allow the City to focus its financial resources on the current pension obligations due to bondholders and/or CalPERS.
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Regular Meeting
02/22/22 07:00 PM
City Manager Department
Willie A Hopkins
Other
Doc ID: 4896
AGENDA ITEM
AGENDA MATTER:
RECONSIDERATION OF ACCOUNTS PAYABLE EXPENDITURES FOR CHECKS #1005 AND #85773 EXECUTIVE SUMMARY:
At the December 6, 2021 Council Meeting, Council Members Rose and Silva requested that accounts payable expenditures for checks #1005 and #85773 be reconsidered for approval and ratification.
DISCUSSION:
At the December 6, 2021 Council Meeting, Council Members Rose and Silva requested that accounts payable expenditures for checks #1005 and #85773 be reconsidered for approval and ratification.
Below and attached are the details and back-up documentation for checks #1005 and #85773.
Additionally, Mayor Pro Tem Noble and Council Member Rose requested that the Rules and Policies Committee review a revision to the expense reimbursement policy requiring up front approval of elected officials’ travel. This proposed, potential policy change is pending review by the Rules and Policies Committee and action as may be desired from there. The current Expense Reimbursement Policy No. 2018-16 is attached for reference.
FISCAL IMPACT:
Expenses conform to City purchasing policies and the budget approved by resolution of the Council.
Accordingly, sufficient funds have been budgeted for these checks.
RECOMMENDED ACTION:
Approve and ratify expenses, as audited, for checks #1005 and #85773 totaling $1,174.58. 11 Packet Pg. 198
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