Appendix 1 Background Paper, including issues identification and next steps As of October 31, 2012 History The Regional

District of Central Okanagan (RDCO) provides enhanced 9-1-1 emergency telephone number service to the residents of the Central Okanagan and, by contractual agreement, to residents of the following 8 Regional Districts: RD Kootenay Boundary RD Central Kootenay RD East Kootenay RD North Okanagan RD Columbia Shuswap RD Thompson-Nicola RD Okanagan-Similkameen RD Squamish-Lillooett In March, 2011, the RDCO Board approved a staff report that recommended contracting of 9-1-1 services to the RCMP subject to successful negotiations. The report identified a potential saving of $128,744 annually as well as resolution of other management issues that made it difficult to effectively supervise the service. There was an expectation that the RCMP would provide final costing sometime after the March, 2011 report date, however it was not provided until a meeting with RCMP personnel on July 18, 2012. It was at that meeting that a new cost estimate of $125,857 per operator was submitted, an increase of $37,306 per operator or 42%. In March, 2012, RDCO management met with all 12 permanent 9-1-1 operators to advise that there would be no job losses or layoffs as a result of contracting the service to the RCMP. Each employee would have the option of remaining with the RDCO or moving over to the RCMP. The interim RDCO Chief Administrative Officer, in his initial assessment of the service in May, 2012, determined that the RDCO should not continue to employ any of the 9-1-1 operators under a contract with the RCMP given that all supervision would be under RCMP control. A letter was forwarded to the RCMP by the RDCO Chair on May 23, 2012 requesting that they expedite their new cost calculations for the RDCO to consider as it had been over 14 months since their initial estimate and the RDCO was in the
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Appendix 1 midst of CUPE contract negotiations with its employees. The RCMP delays were attributable to the new provincial policing contract which was subject to very protracted negotiations. A meeting took place with the RCMP on July 18, 2012 in Kelowna. At the meeting the RCMP acknowledged that 9-1-1 is not one of their core service areas. Subsequently, RDCO staff developed a list of options to be explored, goals and next steps: Options: 1. 2. 3. 4. 5. 6. 7. Status Quo not a preferred option Contract with RCMP Bring In House Integrate with Kelowna Fire Department dispatch services Set up a stand-alone corporation Call for Proposals for a Contract Assignment (i.e. EComm9-1-1) Explore Partnerships - RDs, Municipalities

It was recognized that there could be other options that may emerge over time.

Goals: 1. 2. 3. 4. 5. Provide Excellent Service Minimize Costs Retain Partners (Customers, Clients) Municipalities, RDs Treat current employees fairly with respect Efficiency in Emergency Services Delivery

Next Steps: 1. Cost comparison as provided to RDs on September 13th a. Status Quo b. RCMP Contract 2. Verbal update to RDCO Board of Directors, giving heads up done and direction supported. 3. Talk to 8 RDs under contract September 14th conference call 4. Preliminary Exploration of options a. RDCO staff met with Dave Mitchell who is very experienced in this matter, to discuss potential options, particularly development of a stand-alone company. He has an independent consulting business and is also Director of Fire Services for EComm9-1-1 b. RDCO staff met with Chris Kellett who is also very experienced in this matter. Agreement to work with him in the development of an RFI and RFP subject to approval of other RDs
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Appendix 1 c. RDCO staff believe that best value will be achieved by issuing an RFI followed by an RFP, the results of which can be compared to moving the service to the RCMP. 5. Discussion with CUPE and employees done The RDCO Board subsequently approved of staff moving ahead to explore options, including the issuance of an RFI and RFP, and make recommendations based on the result in conjunction with 9-1-1 service RD partners. Issues Regional Partners Facts Each of the contracts with Regional District partners expire on December 31, 2013. The contracts state that either party may terminate the agreement by giving written notice on or before July 1st in any calendar year with termination on December 31st of that year. As no RDs have provided notice to date, all contracts will extend to the expiry date. The contracts set a budget cap of $1.5 million annually with a potential increase of $150,000 for an extra-ordinary event or situation. Using estimated costs provided by the RCMP result in a projected tax requisition requirement of $1.82 million. Using estimated costs in continuing the current service results in a projected tax requisition requirement of $1.69 million. Any available surplus from 2012 will be carried over to reduce the 2013 tax requisition. The RDCO meeting with the RCMP took place after July 1st, therefore there was no opportunity for the RDCO to give notice of termination to the other RDs if the service were moved to the RCMP and financial risk would be borne solely by the RDCO.

Proposal and Next Steps The RDCO proposes that the budget cap be amended to $1.7 million for 2013 with a potential increase to reflect total anticipated costs with the concurrence of the majority of participating Regional Districts. The objective will be to transfer operations to an alternate service provider sometime in 2013 on the premise that there will be proven financial savings while meeting defined standards of service. The RDCO will continue to provide the service until the RDCO and its contract partners land on the best option for continuing 9-1-1 service.
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Appendix 1 Chris Kellett will be engaged to lead in the preparation of an RFI and RFP and to assist in the evaluation of proposals. The cost is not to exceed $15,000. The RDCO believes this can be funded within the 2012 budget cap. Need to determine whos in and whos out and how best to allocate costs if different than the current methodology.

RCMP Facts The costs presented by the RCMP at the July 18th meeting could not be anticipated. The RCMP fully understands that they are problematic for the RDCO and its partners. The RDCO had been waiting for costs for approximately 16 months. The RCMP have advised that the new cost structure will begin on January 1, 2013 which, if transition were to take place by then, would impact the program budget considerably. The RCMP has advised that the costs provided to date are not final. We are awaiting this information.

Next Steps A meeting with the RCMP is necessary to advise them of our plan to explore alternative service provision and to receive final costs as financial information provided on July 18, 2012 was preliminary.

9-1-1 Operators Facts 9-1-1 operators were advised in March, 2012 that there would be no job loss and they would have the option to stay with the RDCO or move over to the RCMP.

Next Steps 9-1-1 operators were advised in a meeting on August 29th that RCMP costs came in much higher than anticipated and the RDCO Board has directed staff to explore all options. Regular monthly update meetings are being held to keep staff members informed regarding the analysis underway. Information and options for staff to be provided wherever possible. While there are no guarantees of job protection, every effort will be made to be fair to current employees in being considered for employment with an alternate service provider.
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Appendix 2 Proposed Amendments to the Contract for Consideration by Regional Boards The proposed Contract Amendment is attached. This contract amendment is necessary for two purposes: 1. To fairly share the risk of cost increases among the participating Regional Districts. Currently, the RDCO is solely responsible for any and all costs greater than $1.65 million for 2013. 2. To provide certainty to the RDCO and all contract participants that, should a proposal be deemed acceptable to the majority of contract participants, the RDCO will be authorized to transition services for all Regional Districts to the selected service provider prior to December 31st, 2013.

Amendment No.1 Contract For Enhanced 9-1-1 Emergency Telephone Number Service AGREEMENT AMENDMENT

This AMENDMENT to the Agreement for Enhanced 9-1-1- Emergency Telephone service (dated 1st of January 2012), is entered into as of December 15th, 2012. By and Between: REGIONAL DISTRICT OF CENTRAL OKANAGAN 1450 KLO Road, Kelowna, British Columbia V1W 3Z4 (Central Okanagan") And: REGIONAL DISTRICT OF OKANAGAN SIMILKAMEEN 101 Martin St. Penticton British Columbia V2A 5J9 ("RDOS") Witnesses: That the Central Okanagan and the RDOS in consideration of their mutual rights and obligations to one another, DO AGREE TO AMEND THE ABOVE NAMED AGREEMENT AS FOLLOWS:

Clause 7 shall be amended to read as follows: The paragraph that reads: The Central Okanagan and the RDOS further agree that for the term of this agreement as identified in Section 14, the annual budget shall not exceed $1,500,000.00 provided however and with the concurrence of a majority of the Participating Regional Districts, the budget may be increased by an additional $150,000.00 for an extra-ordinary event or situation. This does not include those capital expenditures contemplated in section 9 herein. Shall be amended to read: The Central Okanagan and the RDOS further agree that for the term of this agreement as identified in Section 14, the annual budget shall not exceed $1,700,000.00 provided however and with the concurrence of a majority of the
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Amendment No.1 Contract For Enhanced 9-1-1 Emergency Telephone Number Service Participating Regional Districts, the budget may be increased by an additional amount representing anticipated costs for an extra-ordinary event or situation. This does not include those capital expenditures contemplated in section 9 herein. Clause 15 shall be deleted in its entirety and replaced with the following: 15. This agreement shall remain in effect until the earlier of: a) December 31st, 2013, or b) Agreement is reached on a new contract with an alternative service provider as agreed by the majority of Regional Districts participating in the Central Okanagan Enhanced 9-1-1 Emergency Telephone Number service. IN WITNESS WHEREOF the parties have executed this Agreement Amendment on the day and year first above written by their officers or persons duly authorized to execute on their behalf. THE CORPORATE SEAL OF THE REGIONAL DISTRICT OF CENTRAL OKANAGAN was hereunto affixed on the ___ day of _______, 2012 in the presence of:

Authorized Signatory Title Authorized Signatory Title THE CORPORATE SEAL OF THE REGIONAL DISTRICT OF OKANAGAN SIMILKAMEEN was hereunto affixed on the ___ day of _______, 2012 in the presence of:

Authorized Signatory Title Authorized Signatory Title

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Appendix 4
Scope of work for Consultant (Chris Kellett) Background: A Consultant with deep knowledge of 9-1-1 PSAP services is required to support the Regional District Partners in developing their requirements and evaluating proposals as we work through a competitive RFP process to review proposals for the 9-1-1 PSAP Service Provider against the current RCMP proposal. Chris Kellett (biography attached), has been identified as a good fit for this role, due to his knowledge and experience in this area. Most importantly, Chris participation in this project would not create any conflict of interest situations, as Chris does not have any affiliation with identified potential service providers. Proposed Scope of Work: The Scope of Work Chris will be asked to perform shall include the following. Note: Chris will be reimbursed on a day-rate basis against an estimated budget. This will afford some flexibility in Chris work as the project develops. A: Understanding our Requirements: 1. Review & understand the current 9-1-1 setup, including: RDCO/Southeast District 9-1-1 Emergency service function (PSAP), bylaw, current and proposed arrangements with RCMP, equipment setup, current processes current shortfalls & risks Identify how RDCO 9-1-1 compares to industry standards/best practices, with a view to how shortfalls could be addressed in RFP. The location of the service shall remain within the Central Okanagan. Review to include the potential to house 9-1-1 at RDCO KLO Road office building (logistics, requirements, etc.) Identify risks in contracting out 9-1-1, and measures to mitigate through process, contract terms, etc.

2. 3. 4.

B: Support to RFI & RFP Processes: 5. 6. 7. 8. 9. Assist the core team in drafting the questions in the RFI (to be issued publicly). Participate in face-to-face meetings with Proponents as part of RFI process. Take knowledge from RFI and meetings, review options with RDCO, and develop Scope of Work for RFP. Technical support to RFP (support in answering questions raised by Proponents, attend Proponent presentations, etc.) RFP Evaluation member of RFP evaluation team.

C: Implementation / Transition: 10. Support to implementation & transition, depending on option chosen. Page 1 of 1

Appendix 5 MEMORANDUM OF UNDERSTANDING BETWEEN The Regional District of Central Okanagan (RDCO) AND The Regional District of Okanagan Similkameen(RDOS)

This MEMORANDUM OF UNDERSTANDING is hereby made and entered into by and between the Regional District of Central Okanagan, hereinafter referred to as RDCO, and the Regional District of Okanagan Similkameen, hereinafter referred to as RDOS. A: PURPOSE The purpose of this MOU is for the parties to agree to enter into a joint Request For Proposal (RFP) process, led by RDCO, for identification and selection of a new 9-1-1 PSAP Service Provider against the current RCMP proposal, for the coverage areas of both parties, along with other Regional District partners in the 9-1-1 Service Area. The 9-1-1 PSAP Service Provider Request For Proposal process will require a significant amount of time and resources to co-ordinate, for the RFP Core Team, the RDCO (acting as lead partner) and Proponents responding to the RFP. As a result, RDCO is required to have an MOU in place documenting the parties commitment to the RFP process and its outcome. B: STATEMENT OF MUTUTAL BENEFIT AND INTERESTS: The parties have an existing partnership in delivery of the 9-1-1 PSAP services, whereby the RDCO provides 9-1-1 PSAP services for multiple Regional District partners under an existing agreement, known as the Enhanced 9-1-1 Emergency Telephone Number Service. This partnership provides benefits through efficient use of resources and co-ordinated efforts in the region. Due to the rising cost of the existing RDCO/RCMP service delivery model, the parties, along with other Regional District partners in the service area now wish to formally invite and evaluate proposals on alternative service delivery models for the Enhanced 9-1-1 Emergency Telephone Number Service, by issuing a Request For Proposal. The Request For Proposal process shall be co-ordinated by RDCO, in accordance with the process outlined in Attachment A- RFI-RFP Process Outline (attached hereto). C: THE RDCO SHALL: 1) Provide all resources and staff time to co-ordinate the RFP process.

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Appendix 5 2) Conduct the RFP on behalf of the all Regional District partners. 3) Engage the Regional District Partners as outlined in Attachment A. D: THE RDOS SHALL: 1) Contribute to the RFP process, as outlined in Attachment A 2) Keep all information shared during the RFP process strictly confidential and within those people named on the team and their direct superiors only. 3) Execute a Contract with the successful Proponent for the term as recommended by the RFP evaluation Core Team, provided requirements as stated in the RFP are met and annual costs are less than the estimated costs of RCMP performing this function. It is anticipated that the term for any contract signed shall be 5 years. 4) Execute this contract with the successful Proponent as per the contract terms included in the RFP process. E: IT IS MUTUALLY UNDERSTOOD AND AGREED TO BY AND BETWEEN THE PARTIES THAT: 1) The RFP process shall be conducted in accordance with all laws and regulations governing public purchases in the Province of British Columbia. 2) Each party will ensure their full understanding and be aware of implications within their individual organizations of the purchasing process to be conducted by the RDCO, so as to ensure the RDCO represents the Scope of Work accurately and in good faith to interested Proponents. F: PRINCIPAL CONTACTS: RDCO Contact: Andy Brennan Purchasing Manager 1450 KLO Road, Kelowna, BC 250-470-6170 G: NON-FUND OBLIGATING DOCUMENT: This instrument is neither a fiscal nor a funds obligation document. Any endeavour or transfer of anything of value involving reimbursement or contribution of funds between the parties to this instrument will be handled in accordance with applicable laws, regulations, and procedures. Such endeavours will be outlined in separate agreements that shall be made in writing by representatives of the parties and shall be independently authorized by appropriate statutory authority. This instrument does not provide such authority. RDOS Contact: Name: Title: Address: Address: Telephone:

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Appendix 5 H: COMMENCEMENTS / EXPIRATION DATE: This Memorandum of Understanding is executed as of the date of last signature and is effective through December 31st, 2013 at which time it will expire unless extended. IN WITNESS WHEREOF the parties have executed this Agreement as of the date last written below, by their officers or persons duly authorized to execute on their behalf. Signature for the REGIONAL DISTRICT OF CENTRAL OKANAGAN was hereto affixed: ) ) Authorized Signatory ) ) Title ______________________________) Date ) ) ) ) )

Authorized Signatory

Title ______________________________) Date Signature for the REGIONAL DISTRICT OF OKANAGAN SIMILKAMEEN was hereto affixed: ) ) Authorized Signatory ) ) ) Title ) _______________________________) Date ) ) Authorized Signatory ) ) ) Title ) ______________________________) Date

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Appendix 5 ATTACHMENT A: 9-1-1 PSAP SERVICE PROVIDER RFI-RFP PROCESS OUTLINE General: In order to conduct a successful competitive process to evaluate the selection of a 9-1-1 PSAP service provider against the current RCMP proposal, all Regional District partners should agree to the Memorandum of Understanding, which shall include: Commitment to the RFI & RFP process outlined herein Commitment to execute a contract based on the RFP evaluation team recommendation. The competitive process to identify and select a 9-1-1 PSAP Service Provider shall be run in 2 stages: Request For Information (RFI): requests expressions of interest and other information from Proponents. Request For Proposal (RFP): requests formal Proposals which are evaluated with the intent of selecting a Proponent. Throughout the process, all 9 Regional District partners shall be kept informed of progress and outcomes. Senior Staff of the 9 Regional District partners have agreed to a Core Team who will represent all Regional Districts and make decisions on the following: Approve the RFI prior to issue Review the RFI responses and approve proceeding to an RFP Review the RFP document (including Scope of Work and evaluation method) prior to issue Jointly conduct the RFP evaluation and make an award recommendation to the Regional Boards. The Core Team is identified as:
Cary Berger, Manager of Police Services, RDCO Andy Brennan, Purchasing Manager, RDCO Sukh Gill, CAO, TNRD Ron Baker, CAO, NORD Shawn Tomlin, CFO, RDKB Paul Macklem, CAO, RDCO and Marilyn Rilkoff, Director of Finance & Administration, RDCO will assist on an as needed basis.

Throughout the project, the Regional District partners shall employ a consultant (Chris Kellett).

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Appendix 5

Request For Information (RFI) Process: The objective of the RFI is to: Seek expressions of interest from Proponents who would like to participate in the RFP process. Obtain general background information on Proponents past experience, capabilities, and opportunities. Obtain answers to questions which will help shape the RFP Requirements / Scope of Work, such as: length of agreement preference, office requirements, technical/equipment requirements, and consideration for existing 9-1-1 CUPE staff. Steps in the RFI process shall be: 1) Core Team and Consultant to agree on RFI questions prior to issue. 2) RFI to be posted publicly on BC Bid, CivicInfo, etc. for a minimum of 2 weeks. 3) Meetings may be held with RFI respondents if Core Team requires. 4) Core Team to decide on invitees for RFP process. 5) All Regional District partners to be updated on RFI outcome. Request For Proposal (RFP) Process: Steps in the RFP Process shall be: 1) Refine Requirements: a. Consultant to develop RFP Scope of Work, based on: i. Review & understanding of the current 9-1-1 setup, including: RDCO/Southeast District 9-1-1 Emergency service function (PSAP) bylaw current and proposed arrangements with RCMP equipment setup current processes current shortfalls & risks ii. Identify how RDCO 9-1-1 compares to industry standards/best practices, with a view to how shortfalls could be addressed in RFP. iii. Review potential to house 9-1-1 at RDCO KLO Road office building (logistics, requirements, etc.). The location of the service shall remain within the Central Okanagan. b. Risk analysis and mitigation plan to be completed c. Integrate learning from RFI responses d. Set RFP evaluation criteria and weighting e. Identify special contract terms required based on identified risks.

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Appendix 5 f. Scope of Work and evaluation method to be finalized by Core Team and shared with all RD partners. Issue RFP: RFP document finalized and issued to Proponents for 3-4 weeks. Receive Proposals & Evaluate: Core team will conduct joint initial evaluation against set criteria. Proponent Presentations (Optional) / Clarifications: Proponents may be invited to present their Proposal. Any required clarifications of proposals to be completed. Award Recommendation: Core Team to finalize evaluation and issue award recommendation to Regional District Partners for final approval. Issue Notice of Award: Notice of award issued to successful Proponent, Contracts executed with each Regional District. Contract Commences: New contract shall commence following mobilization/transfer period as agreed to with the successful Proponent.

2) 3) 4)

5) 6) 7)

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