______________________________________________________________________!!TRWC Board of Directors Meeting!March 27, 2014 - 9AM Phoenix-Mesa Gateway Airport (PMGA) Administration Building, Board Room 5835 S. Sossaman Road Mesa, Arizona 85212 !Members of the public may address the Board on any item. Please complete a “Request to Speak Card”, located at the entry of the room and promptly turn it in to the Executive Director. There is a time limit of three minutes for comments. !Agenda!!1) Call to Order & Opening Comments - Chairman Kross ! a. Materials & Sign-in Sheet b. Speaker Cards c. Audio Recording !2) Public Comment - Chairman Kross !

Members of the public may address the Board on items not on the printed agenda. Please com-plete a “Request to Speak Card”, located at the entry of the room and turn it in to the Executive Director prior to the beginning of the meeting. There is a time limit of three minutes for com-ments. !

3) Discussion and Action on Board Meeting Minutes - Chairman Kross ! January 23rd TRWC Board Meeting Minutes 4) Discussion and Possible Action on Committee & Working Group Updates a. Executive Committee Update - Wes Kemp and David Hagar (Co-chairs) b. User Group Update - Rob Duggan (Chairman) c. Governance Working Group - Gary Bradbury & Dale Shaw !5) Discussion and Action on TRWC 2014/2015 Fiscal Year Budget - Dale Shaw ! TRWC 2014-2015 Budget !6) Discussion and Possible Action on Network Administrator Updates: a. Budget & Finance Overview - Sherry McGlade b. Network Performance Overview - Randy Thompson !7) Next Meeting(s): Joint TRWC/RWC Board Meeting - May 22, 2014 9AM to 11AM Joint TRWC/RWC Board Meeting - Nov 20, 2014 9AM to 11 AM !8) Adjournment - Chairman Kross

______________________________________________________________________!!TRWC Board of Directors Meeting Minutes!January 23, 2014 - 9AM Phoenix-Mesa Gateway Airport (PMGA) Administration Building, Board Room 5835 S. Sossaman Road Mesa, Arizona 85212 !Members of the public may address the Board on any item. Please complete a “Request to Speak Card”, located at the entry of the room and promptly turn it in to the Executive Director. There is a time limit of three minutes for comments. !Directors & Staff Attendees John Kross, John Pombier, Gary Bradbury, Jerry Ward, Marc Skocypec, Dave Montgomery, Dale Shaw, Bill Anger, Randy Thompson, Sherry McGlade !Minutes!!1) Call to Order & Opening Comments - Chairman Kross !

a. Materials & Sign-in Sheet b. Speaker Cards c. Audio Recording !Chairman Kross called the meeting to order and welcomed the attendees, provided instruction on the process for public comment, and reminded participants that the meeting audio was is recorded. !

2) Public Comment - Chairman Kross Members of the public may address the Board on items not on the printed agenda. Please com-plete a “Request to Speak Card”, located at the entry of the room and turn it in to the Executive Director prior to the beginning of the meeting. There is a time limit of three minutes for com-ments. !No Public Comment requests were received. !

3) Discussion and Action on Board Meeting Minutes - Chairman Kross !October 9th TRWC Board Meeting Minutes !John Pombier motioned to approve the 07/18/13 TRWC Board Meeting Minutes and Dave Mont-gomery seconded. All were in favor; the motion passed. !

4) Presentation & Discussion on Public Safety Broadband Network - Dr. Michael Britt, State of Arizona !Public Safety Broadband Network Presentation !Dr. Michael Britt provided an overview of Public Safety Broadband Network as represented in the supplied presentation materials. !

5) Discussion and Possible Action on Committee & Working Group Updates - Dale Shaw a. Executive Committee Update - Wes Kemp and David Hagar (Co-chairs) !

Wes Kemp provided an overview of the Executive Committee and actives as represented in the presentation. !John Pombier asked about impacts should the planned November 2016 Bond not pass. In re-sponding, Mr. Kemp expressed that the Executive Committee is concerned that if the upgrade project went to a [Mesa] Bond election and didn’t get funded that the system could be put at risk at that point. He added that the team does recognize that each partner has it’s own process for funding & environment and that this should probably be discussed more at the Board level. !Chairman Kross asked if the other options were considered alternatives to the recommended Option #4 should the Mesa General Obligation Bond were to fail. Mr Kemp confirmed that the other options were in fact alternatives that could be revisited if desired. He then reiterated that the Executive Committee elected to forward with the recommended option, since it was a specif-ic partner request, and to allow the Board to provide additional direction. !Chairman Kross asked about the relationship between the recommended option and the Joint Governance process underway with the RWC. Executive Director Dale Shaw shared that there are two options related to bringing the networks together; bring the networks together much like it used to be, or use the ISSI technology that allows for the systems to come together to allow roaming. Mr. Shaw explained that the ISSI solution has a dependency on the system up-grade but the “traditional" approach could be employed if the Boards wanted to merge the sys-tems sooner. !Chairman Kross suggested that the Executive Committee keep the Board updated on progress and forward any concerns or any additional new alternatives. Mr Pombier suggested that the Executive Team spend additional time studying the impacts should a Bond not pass. Mr. Shaw shared that there’s some suboptimal contingencies, but the likely route would be a special as-sessment to follow any failed Bond funding. He went on to share that the recommended option will be included in the budget forecast that will be reviewed by the Board as part of annual Bud-get adoption. !b. User Group Update - Rob Duggan (Chairman) !TRWC User Group Chairman Rob Duggan provided an overview of the Executive Committee and actives as represented in the presentation. !Dave Montgomery asked if the group took the possibility of Florence participating a future mem-ber into account. Mr. Duggan explained that Florence was discussed and considered. Mr. Shaw shared that there’s a large geographic area between Florence and the existing TRWC partners where there’s not a lot of current shared activity but discussions are underway to plan for their current and future needs. !Mr. Pombier asked if the members should consider using similar hardware across agencies. Mr. Duggan responded that the consistency is a driving force but the end decision on specific hard-ware is up to the Department and subject to available funding. !Mr. Shaw summarized the recommendation that monies previously allocated to system upgrade consulting would be reallocated to Simplex consulting instead in the amount of up to $250,000. !Mr. Pombier asked how the consultants would be selected. Randy Thompson shared that Mesa has a list of consultants and that proposals would be evaluated. Mr. Pombier suggested that a member of the User Group participate in the review process and Mr. Shaw confirmed that they will be engaged throughout the process.

Chairman Kross called for a motion on the recommendation. Gary Bradbury motioned to ap-prove as recommended and Jerry Ward seconded. The motioned unanimously passed. !c. Governance Working Group - Gary Bradbury & Dale Shaw !Gary Bradbury and Dale Shaw provided an overview of the recent Governance Working Group activities as represented in the presentation. !Mesa Fire Chief Harry Beck submitted a request to speak card which was acknowledged by Chairman Kross. Mr. Beck summarized his participation with the Governance Working Group and the Life Safety Council, then expressed concern about the timeline shared shared in the presen-tation on the reintegration of the networks on behalf of the Regional Fire Chiefs. He stated that the 2017 timeline was too long and suggested that the end of 2014 should be established as the goal for a completed governance document and that the group should be well into the process of getting it approved. !Bryan Jeffries, President of the United Mesa Firefighters Association, submitted a request to speak card which was acknowledged by Chairman Kross. Mr. Jeffries expressed disappointment on the shared timeline for reintegration of the networks. He specifically shared his concern re-lated to the 2017 timeline and the timing of bonding for the system upgrade and whether that need was vetted during the preparation of the last [Mesa] Public Safety Bond. He suggested that the group should do everything it can do to expedite the process in the interest of crews running calls on the west-side. !Chairman Kross stated that there was a lot of harmony that occurred in the October Joint Board meeting and that the intention is to move this process along as expeditiously as possible. He shared that there are complicated and potentially challenging hurdles ahead of us, and that from his perspective it needs to be done right. He went on to acknowledge that the Board is hearing the speaker’s concerns and asked that a more detailed timeline be shared later and that it might be good for some collaboration with the Life Safety Council. Mr. Shaw shared that he believes that material could be produced and shared that provides a better understanding on the ranges and relationships between the milestones. !John Pombier added that it would be good to know what decisions need to be made and what the Board can do to speed things up. In regards to the last Public Safety Bond, Mr. Pombier stated that there was early [Mesa] Council discussion on where to include the system upgrade and it was determined that the equipment would last until the 2016 Bond. He emphasized that there was discussion on the item. He also emphasized that we need to continue to push to keep the governance process moving and the need for education on how to do that. !Chairman Kross expressed that a prudent approach should be taken and cautioned about jump-ing to conclusions on when the effort might be finished and encouraged that we allow the process to unfold. He summarized that the group is interested in accelerating wherever possible and that there is a desire for more information to accomplish that end. He thanked the speakers for their comments. !

6) Discussion and Action on Partner Agreements - Dale Shaw Arizona State University Interoperability Request !Dale Shaw provided an overview of the Arizona State University Interoperability Request. Chairman Kross called for a motion on the recommendation. Marc Skocypec motioned to ap-prove as recommended and Gary Bradbury seconded. The motioned unanimously passed. !

!7) Discussion and Possible Action on Network Administrator Updates:

a. Budget & Finance Overview - Dale Shaw & Sherry McGlade !Dale Shaw shared that Sherry McGlade has been assigned to the budget and finance role for the TRWC and summarized the latest finances as provided in the report. He also provided an over-view of budget impacts related to staff time allocations resulting from a Mesa time keeping change. !b. Network Performance Overview - Randy Thompson !Randy Thompson provided a verbal overview of the Capital Projects and Network Performance Overview as reflected in the Administrator Update Report. !

8) Next Meeting(s): TRWC Board Meeting - Mar 27, 2014 9AM to 11 AM Joint TRWC/RWC Board Meeting - May 22, 2014 9AM to 11AM Joint TRWC/RWC Board Meeting - Nov 20, 2014 9AM to 11 AM !Chairman Kross and Dale shaw reviewed the upcoming Board meeting schedule with the Board. !

9) Adjournment - Chairman Kross ! Chairman Kross adjourned the meeting.

! !Date: March 27, 2014

To: Topaz Regional Wireless Cooperative (TRWC) Board of Directors

From: Dale Shaw, TRWC Executive Director

Wes Kemp, TRWC Executive Committee Co-chairman

David Hagar, TRWC Executive Committee Co-chairman

Subject: Fiscal Year 2014/2015 Budget !!Recommendation !The TRWC Executive Director and Executive Committee recommend the approval of the proposed (attached) TRWC Budget in the amount of $1,984,565 for Fiscal Year 2014/2015. !Background & Discussion !The attached proposed budget for Fiscal Year 2014/2015 has been under review and endorsed by the TRWC Executive Committee. When compared to the current 2013/2014 Fiscal Year Budget, Operating & Maintenance has been reduced by $757,757 (due to Labor, Consulting, and Legal adjustments) and Capital has increased by $574,750 (for planned Network Reliability Improvements) - with a net overall budget decrease of $183,007. !Fiscal Impact !The proposed budget represents the total planned contribution by all member agencies for the ongoing operation, maintenance, and improvement of the TRWC radio network. Each member agency will be invoiced as actual expenditures occur on a monthly basis.

PROPOSED FISCAL YEAR 2014 / 2015 BUDGET

DETAIL OF VOICE OPERATIONS, MAINTENANCE AND CAPITAL

PRESENTED TO THE BOARD OF DIRECTORS FEBRUARY 2014

TRWC Operating & Maintenance Budget And Capital Improvement CostsRECONCILIATION BETWEEN FY 13/14 PROJECTED AND 14/15 BUDGET

FY 13/14 FY 13/14 FY 14/15BUDGET PROJECTED BUDGET Change

1. LABORPositions 22 15 15 15Cost 925,949$ 442,792$ 467,115$ 24,324$

2. NON LABOR 1,241,624$ 1,133,107$ 942,700$ (190,407)$

3. TOTAL OPERATING & MAINTENANCE BUDGET $2,167,572 $1,575,899 $1,409,815 -$166,083

4. MONTHLY AIRTIME HOURS 992 959 959

5. RECONCILIATION OF BUDGET INCREASE:a. Add: Accountant; Labor 5% step increase $24,324b. NL Step Increase 2.2%; Reduction of Consulting Fees $250K, add $40K for RCA legal -$190,407

TOTAL VARIANCE -$166,083

6. Cost Per Airtime Hour 123$ 120$

7. Capital Network Reliability Improvements $0 $574,750 $574,750

Cost Per Airtime Hour $0 $50 $50

TRWC VOICE SUMMARY FISCAL YEAR 2013 / 2014 FY14/15

Proposed Budget TRWC FY 15/16 TRWC FY 16/17 TRWC FY 17/18 TRWC FY 18/19 TRWC FY 19/20 TRWC FY 20/21 TRWC FY 21/22

ROLLING 6 MONTH AVG AS OF 12/31/13 959 975 975 975 975 975 975 975AIRTIME PERCENTAGEMESA 73.96% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44%GILBERT 17.91% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16%APACHE JUNCTION FIRE DISTRICT 0.51% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53%APACHE JUNCTION 6.46% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62%QUEEN CREEK 0.27% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36%SOUTHWEST AMBULANCE 0.85% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%RIO VERDE 0.04% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%

TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Labor 467,115$ 500,281$ 510,286$ 520,492$ 530,902$ 541,520$ 552,350$ 563,397$ Non Labor

TOTAL OTHER SERVICES 277,100$ 242,553$ 248,132$ 253,839$ 259,677$ 265,650$ 271,760$ 278,010$ TOTAL COMMODITIES 665,600$ 680,909$ 696,570$ 712,591$ 728,980$ 745,747$ 762,899$ 780,446$

Total Operating & Maintenance 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

ANNUAL REVENUE OPERATING & MAINTENANCEMESA 1,042,699$ 1,045,597$ 1,068,543$ 1,091,995$ 1,115,964$ 1,140,462$ 1,165,500$ 1,191,089$ GILBERT 252,498$ 272,789$ 278,776$ 284,894$ 291,148$ 297,539$ 304,071$ 310,747$ APACHE JUNCTION FIRE DISTRICT 7,190$ 7,546$ 7,711$ 7,881$ 8,054$ 8,230$ 8,411$ 8,596$ APACHE JUNCTION 91,074$ 80,014$ 81,770$ 83,565$ 85,399$ 87,274$ 89,190$ 91,148$ QUEEN CREEK 3,807$ 5,125$ 5,238$ 5,353$ 5,470$ 5,590$ 5,713$ 5,839$ SOUTHWEST AMBULANCE 11,983$ 11,959$ 12,222$ 12,490$ 12,764$ 13,044$ 13,331$ 13,624$ RIO VERDE 564$ 712$ 727$ 743$ 760$ 776$ 794$ 811$

TOTAL 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

MONTHLY FEE PER SUBSCRIBER UNIT OPERATING & MAINTENANCE 123$ 120$ 122$ 125$ 128$ 130$ 133$ 136$

CAPITAL IMPROVEMENT COSTSNETWORK RELIABILITY IMPROVEMENTS: 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

ANNUAL REVENUE CAPTIALMESA 430,028$ 2,555,290$ 5,039,149$ 6,144,778$ 1,479,901$ 1,534,169$ 242,886$ 435,147$ GILBERT 105,524$ 627,040$ 1,236,551$ 1,507,861$ 363,151$ 376,468$ 59,602$ 106,780$ APACHE JUNCTION FIRE DISTRICT 2,644$ 15,710$ 30,981$ 37,779$ 9,099$ 9,432$ 1,493$ 2,675$ APACHE JUNCTION 33,910$ 201,500$ 397,367$ 484,552$ 116,699$ 120,978$ 19,153$ 34,314$ QUEEN CREEK 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$ RIO VERDE 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$

TOTAL 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

MONTHLY FEE PER SUBSCRIBER UNIT CAPITAL 50$ 287$ 566$ 690$ 166$ 172$ 27$ 49$

CASH FLOW FOR FISCAL YEAR 2014 / 2015

MONTH MESA GILBERT AJFD CAJQUEEN CREEK SWA RIO VERDE MESA GILBERT AJFD CAJ QUEEN CREEK RIO VERDE

January 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ February 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ March 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ April 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ May 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ June 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ July 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ August 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ September 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ October 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ November 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ December 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$

Total 1,042,699$ 252,498$ 7,190$ 91,074$ 3,807$ 11,983$ 564$ 430,028$ 105,524$ 2,644$ 33,910$ 1,322$ 1,322$

CAPITAL EXPENSESOPERATING AND MAINTENANCE EXPENSES

Page 4 of 5

TRWC Operating & Maintenance BudgetSummary of Labor and Non-labor FY13/14 FY14-15VOICE TOPAZ TOPAZ

Projected Actuals Proposed Budget TRWC FY 15/16 TRWC FY 16/17 TRWC FY 17/18 TRWC FY 18/19 TRWC FY 19/20 TRWC FY 20/21 TRWC FY 21/22ESCALATION FACTOR 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Object Code DescriptionLabor

1101 Personal Services & OT 442,792$ 467,115$ Overhead -$ - Overhead - Encription - Total Labor 442,792$ 467,115$ 500,281$ 510,286$ 520,492$ 530,902$ 541,520$ 552,350$ 563,397$

ESCALATION FACTOR 2.30% 2.30% 2.30% 2.30% 2.30% 2.30% 2.30%Non LaborGENERAL & ADMINISTRATIVE - OTHER SERVICES

2106 Prof Services - Consulting 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ 2115 Temp Services 69,172 75,000 76,725 78,490 80,295 82,142 84,031 85,964 87,941 2201 Utilities-Communications Bldg 32,363 33,000 33,759 34,535 35,330 36,142 36,974 37,824 38,694 2201 Utilities-Sites[50%TOPAZ,25%MW] 40,172 41,000 41,943 42,908 43,895 44,904 45,937 46,993 48,074 2224 Repairs & Maint Outside 9,858 10,400 10,639 10,884 11,134 11,390 11,652 11,920 12,194 2225 Equipment Usage (Vehicles) 18,355 20,000 20,460 20,931 21,412 21,904 22,408 22,924 23,451 2903 Training (Education) 198 - - - - - - - - 2180 Prof Services - Other 4,437 3,100 3,171 3,244 3,319 3,395 3,473 3,553 3,635 2181 Contract - Preventative Generators 10,000 10,000 10,230 10,465 10,706 10,952 11,204 11,462 11,725 2111 Prof Services - Legal 13,000 52,000 12,276 12,558 12,847 13,143 13,445 13,754 14,071 2180 Prof Services - Grant Writing - - - - - - - - - 2210 Telephone - Local 4,790 5,000 5,115 5,233 5,353 5,476 5,602 5,731 5,863 2109 Ins. Premiums - Agencies 9,651 10,600 10,844 11,093 11,348 11,609 11,876 12,150 12,429

2802, 2809 Shaw Butte Land Rental 14,750 15,000 15,345 15,698 16,059 16,428 16,806 17,193 17,588 All Other Services 506 2,000 2,046 2,093 2,141 2,190 2,241 2,292 2,345 TOTAL OTHER SERVICES 477,252$ 277,100$ 242,553$ 248,132$ 253,839$ 259,677$ 265,650$ 271,760$ 278,010$

GENERAL & ADMINISTRATIVE - COMMODITIES74255 Software Maint-Mainsaver,Juniper -$ 20,000$ 20,460$ 20,931$ 21,412$ 21,904$ 22,408$ 22,924$ 23,451$ 3131 Materials & Repair Parts - Outside 16,772 17,600 18,005 18,419 18,843 19,276 19,719 20,173 20,637 3116 Non Cap Assets 50,086 50,000 51,150 52,326 53,530 54,761 56,021 57,309 58,627 3118 Contract - Preventative Motorola 588,997 577,000 590,271 603,847 617,736 631,944 646,478 661,347 676,558 3000 All Other Commodities - 1,000 1,023 1,047 1,071 1,095 1,120 1,146 1,173

TOTAL COMMODITIES 655,855$ 665,600$ 680,909$ 696,570$ 712,591$ 728,980$ 745,747$ 762,899$ 780,446$

Total Operating & Maintenance 1,575,899$ 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

ROLLING 6 MONTH AVG AS OF 12/31/13 959 992 992 992 992 992 992 992

AIRTIME PERCENTAGEMESA 73.96% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44%GILBERT 17.91% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16%APACHE JUNCTION FIRE DISTRICT 0.51% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53%APACHE JUNCTION 6.46% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62%QUEEN CREEK 0.27% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36%SOUTHWEST AMBULANCE 0.85% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%RIO VERDE 0.04% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%

TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

ANNUAL REVENUE OPERATING & MAINTENANCEMESA 1,042,699$ 1,045,597$ 1,068,543$ 1,091,995$ 1,115,964$ 1,140,462$ 1,165,500$ 1,191,089$ GILBERT 252,498$ 272,789$ 278,776$ 284,894$ 291,148$ 297,539$ 304,071$ 310,747$ APACHE JUNCTION FIRE DISTRICT 7,190$ 7,546$ 7,711$ 7,881$ 8,054$ 8,230$ 8,411$ 8,596$ APACHE JUNCTION 91,074$ 80,014$ 81,770$ 83,565$ 85,399$ 87,274$ 89,190$ 91,148$ QUEEN CREEK 3,807$ 5,125$ 5,238$ 5,353$ 5,470$ 5,590$ 5,713$ 5,839$ SOUTHWEST AMBULANCE 11,983$ 11,959$ 12,222$ 12,490$ 12,764$ 13,044$ 13,331$ 13,624$ RIO VERDE 564$ 712$ 727$ 743$ 760$ 776$ 794$ 811$

TOTAL 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

MONTHLY FEE PER SUBSCRIBER UNIT OPERATING & MAINTENANCE 123$ 120$ 122$ 125$ 128$ 130$ 133$ 136$

Page 5 of 5

TRWC Operating & Maintenance BudgetSummary of Labor and Non-labor FY13/14 FY14-15VOICE TOPAZ TOPAZ

Projected Actuals Proposed Budget TRWC FY 15/16 TRWC FY 16/17 TRWC FY 17/18 TRWC FY 18/19 TRWC FY 19/20 TRWC FY 20/21 TRWC FY 21/22ESCALATION FACTOR 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Object Code Description

CAPITAL IMPROVEMENT COSTSNETWORK RELIABILITY IMPROVEMENTS:A.Fiber Optic Cable to Radio Network Backbone Sites (reliability improvement) (CP0092)-$ 574,750$ 2,515,250$ 1,510,000$ B. Fire VHF (budgetary rough order of magnitude estimate) - 900,000$ 900,000$ C. TOPAZ Voice Radio Network Upgrade (CP0090) - -$ 4,325,029$ 4,958,589$ D. Radio Sites Emergency Power Upgrade (CP0094) - 594,895$ E. Regional Communications Authority (CP0438) - 750,000$ F. Wireless Backhaul (Microwave) Network Upgrade (CP0093) - 1,209,798$ 1,253,003$ 1,299,793$ G. TOPAZ Voice Radio Network Coverage Improvements (CP0091) - 699,466$ 724,946$ 750,687$ 324,627$ 581,592$

TOTAL -$ 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

ANNUAL REVENUE CAPTIALMESA -$ 430,028$ 2,555,290$ 5,039,149$ 6,144,778$ 1,479,901$ 1,534,169$ 242,886$ 435,147$ GILBERT -$ 105,524$ 627,040$ 1,236,551$ 1,507,861$ 363,151$ 376,468$ 59,602$ 106,780$ APACHE JUNCTION FIRE DISTRICT -$ 2,644$ 15,710$ 30,981$ 37,779$ 9,099$ 9,432$ 1,493$ 2,675$ APACHE JUNCTION -$ 33,910$ 201,500$ 397,367$ 484,552$ 116,699$ 120,978$ 19,153$ 34,314$ QUEEN CREEK -$ 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$ RIO VERDE -$ 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$

TOTAL -$ 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

MONTHLY FEE PER SUBSCRIBER UNIT CAPITAL -$ 50$ 287$ 566$ 690$ 166$ 172$ 27$ 49$

CASH FLOW FOR FISCAL YEAR 2014 / 2015

MONTH MESA GILBERT AJFD CAJQUEEN CREEK SWA RIO VERDE MESA GILBERT AJFD CAJ

QUEEN CREEK RIO VERDE

January 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ February 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 March 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 April 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 May 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 June 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 July 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 August 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 September 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 October 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 November 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 December 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110

Total 1,042,699$ 252,498$ 7,190$ 91,074$ 3,807$ 11,983$ 564$ 430,028$ 105,524$ 2,644$ 33,910$ 1,322$ 1,322$ 1,409,815$ 574,750$

OPERATING AND MAINTENANCE EXPENSES CAPITAL EXPENSES

Governance Working Group Update

March 2014

Governance Working Group Update

RCA Governance Document ▪ The review of TRWC and RWC documents is

complete ▪ The GWG completed a Rough working draft of

the new Regional Communications Authority (RCA) document on February 23, 2014

Governance Working Group Update

Legal review ▪ The GWG has engaged legal services to begin the

review of the RCA draft ▪ Outside legal counsel will work with Mesa and

Phoenix legal staff ▪ This process will continue through final completion

of the document

Governance Working Group Update

Budget and finance briefings ▪ Compare and contrast the finance framework and

processes currently used by the TRWC and RWC ▪ RWC financials presented to the GWG on March 13,

2014 ▪ Scheduling is in process to review the TRWC financials

▪ The GWG will merge best practices and recommend a budget and finance framework to support the RCA

Governance Working Group Update

GWG Expansion ▪ The GWG will be adding additional members ▪ Board Chairs John Kross and Steve Campbell are

in the process of discussing and considering additional appointments

Governance Working Group Update

GWG timeline ▪ Budget and finance review completion (June 2014) ▪ Legal review completion (ongoing) ▪ Presentation to TRWC/RWC joint boards

(September 2014) ▪ Ratification by TRWC/RWC joint boards

(November 2014)

! !Date: March 27, 2014

To: Topaz Regional Wireless Cooperative (TRWC) Board of Directors

From: Dale Shaw, TRWC Executive Director

Wes Kemp, TRWC Executive Committee Co-chairman

David Hagar, TRWC Executive Committee Co-chairman

Subject: Fiscal Year 2014/2015 Budget !!Recommendation !The TRWC Executive Director and Executive Committee recommend the approval of the proposed (attached) TRWC Budget in the amount of $1,984,565 for Fiscal Year 2014/2015. !Background & Discussion !The attached proposed budget for Fiscal Year 2014/2015 has been under review and endorsed by the TRWC Executive Committee. When compared to the current 2013/2014 Fiscal Year Budget, Operating & Maintenance has been reduced by $757,757 (due to Labor, Consulting, and Legal adjustments) and Capital has increased by $574,750 (for planned Network Reliability Improvements) - with a net overall budget decrease of $183,007. !Fiscal Impact !The proposed budget represents the total planned contribution by all member agencies for the ongoing operation, maintenance, and improvement of the TRWC radio network. Each member agency will be invoiced as actual expenditures occur on a monthly basis.

PROPOSED FISCAL YEAR 2014 / 2015 BUDGET

DETAIL OF VOICE OPERATIONS, MAINTENANCE AND CAPITAL

PRESENTED TO THE BOARD OF DIRECTORS FEBRUARY 2014

TRWC Operating & Maintenance Budget And Capital Improvement CostsRECONCILIATION BETWEEN FY 13/14 PROJECTED AND 14/15 BUDGET

FY 13/14 FY 13/14 FY 14/15BUDGET PROJECTED BUDGET Change

1. LABORPositions 22 15 15 15Cost 925,949$ 442,792$ 467,115$ 24,324$

2. NON LABOR 1,241,624$ 1,133,107$ 942,700$ (190,407)$

3. TOTAL OPERATING & MAINTENANCE BUDGET $2,167,572 $1,575,899 $1,409,815 -$166,083

4. MONTHLY AIRTIME HOURS 992 959 959

5. RECONCILIATION OF BUDGET INCREASE:a. Add: Accountant; Labor 5% step increase $24,324b. NL Step Increase 2.2%; Reduction of Consulting Fees $250K, add $40K for RCA legal -$190,407

TOTAL VARIANCE -$166,083

6. Cost Per Airtime Hour 123$ 120$

7. Capital Network Reliability Improvements $0 $574,750 $574,750

Cost Per Airtime Hour $0 $50 $50

TRWC VOICE SUMMARY FISCAL YEAR 2013 / 2014 FY14/15

Proposed Budget TRWC FY 15/16 TRWC FY 16/17 TRWC FY 17/18 TRWC FY 18/19 TRWC FY 19/20 TRWC FY 20/21 TRWC FY 21/22

ROLLING 6 MONTH AVG AS OF 12/31/13 959 975 975 975 975 975 975 975AIRTIME PERCENTAGEMESA 73.96% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44%GILBERT 17.91% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16%APACHE JUNCTION FIRE DISTRICT 0.51% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53%APACHE JUNCTION 6.46% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62%QUEEN CREEK 0.27% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36%SOUTHWEST AMBULANCE 0.85% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%RIO VERDE 0.04% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%

TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Labor 467,115$ 500,281$ 510,286$ 520,492$ 530,902$ 541,520$ 552,350$ 563,397$ Non Labor

TOTAL OTHER SERVICES 277,100$ 242,553$ 248,132$ 253,839$ 259,677$ 265,650$ 271,760$ 278,010$ TOTAL COMMODITIES 665,600$ 680,909$ 696,570$ 712,591$ 728,980$ 745,747$ 762,899$ 780,446$

Total Operating & Maintenance 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

ANNUAL REVENUE OPERATING & MAINTENANCEMESA 1,042,699$ 1,045,597$ 1,068,543$ 1,091,995$ 1,115,964$ 1,140,462$ 1,165,500$ 1,191,089$ GILBERT 252,498$ 272,789$ 278,776$ 284,894$ 291,148$ 297,539$ 304,071$ 310,747$ APACHE JUNCTION FIRE DISTRICT 7,190$ 7,546$ 7,711$ 7,881$ 8,054$ 8,230$ 8,411$ 8,596$ APACHE JUNCTION 91,074$ 80,014$ 81,770$ 83,565$ 85,399$ 87,274$ 89,190$ 91,148$ QUEEN CREEK 3,807$ 5,125$ 5,238$ 5,353$ 5,470$ 5,590$ 5,713$ 5,839$ SOUTHWEST AMBULANCE 11,983$ 11,959$ 12,222$ 12,490$ 12,764$ 13,044$ 13,331$ 13,624$ RIO VERDE 564$ 712$ 727$ 743$ 760$ 776$ 794$ 811$

TOTAL 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

MONTHLY FEE PER SUBSCRIBER UNIT OPERATING & MAINTENANCE 123$ 120$ 122$ 125$ 128$ 130$ 133$ 136$

CAPITAL IMPROVEMENT COSTSNETWORK RELIABILITY IMPROVEMENTS: 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

ANNUAL REVENUE CAPTIALMESA 430,028$ 2,555,290$ 5,039,149$ 6,144,778$ 1,479,901$ 1,534,169$ 242,886$ 435,147$ GILBERT 105,524$ 627,040$ 1,236,551$ 1,507,861$ 363,151$ 376,468$ 59,602$ 106,780$ APACHE JUNCTION FIRE DISTRICT 2,644$ 15,710$ 30,981$ 37,779$ 9,099$ 9,432$ 1,493$ 2,675$ APACHE JUNCTION 33,910$ 201,500$ 397,367$ 484,552$ 116,699$ 120,978$ 19,153$ 34,314$ QUEEN CREEK 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$ RIO VERDE 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$

TOTAL 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

MONTHLY FEE PER SUBSCRIBER UNIT CAPITAL 50$ 287$ 566$ 690$ 166$ 172$ 27$ 49$

CASH FLOW FOR FISCAL YEAR 2014 / 2015

MONTH MESA GILBERT AJFD CAJQUEEN CREEK SWA RIO VERDE MESA GILBERT AJFD CAJ QUEEN CREEK RIO VERDE

January 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ February 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ March 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ April 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ May 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ June 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ July 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ August 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ September 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ October 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ November 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ December 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$

Total 1,042,699$ 252,498$ 7,190$ 91,074$ 3,807$ 11,983$ 564$ 430,028$ 105,524$ 2,644$ 33,910$ 1,322$ 1,322$

CAPITAL EXPENSESOPERATING AND MAINTENANCE EXPENSES

Page 4 of 5

TRWC Operating & Maintenance BudgetSummary of Labor and Non-labor FY13/14 FY14-15VOICE TOPAZ TOPAZ

Projected Actuals Proposed Budget TRWC FY 15/16 TRWC FY 16/17 TRWC FY 17/18 TRWC FY 18/19 TRWC FY 19/20 TRWC FY 20/21 TRWC FY 21/22ESCALATION FACTOR 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Object Code DescriptionLabor

1101 Personal Services & OT 442,792$ 467,115$ Overhead -$ - Overhead - Encription - Total Labor 442,792$ 467,115$ 500,281$ 510,286$ 520,492$ 530,902$ 541,520$ 552,350$ 563,397$

ESCALATION FACTOR 2.30% 2.30% 2.30% 2.30% 2.30% 2.30% 2.30%Non LaborGENERAL & ADMINISTRATIVE - OTHER SERVICES

2106 Prof Services - Consulting 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ 2115 Temp Services 69,172 75,000 76,725 78,490 80,295 82,142 84,031 85,964 87,941 2201 Utilities-Communications Bldg 32,363 33,000 33,759 34,535 35,330 36,142 36,974 37,824 38,694 2201 Utilities-Sites[50%TOPAZ,25%MW] 40,172 41,000 41,943 42,908 43,895 44,904 45,937 46,993 48,074 2224 Repairs & Maint Outside 9,858 10,400 10,639 10,884 11,134 11,390 11,652 11,920 12,194 2225 Equipment Usage (Vehicles) 18,355 20,000 20,460 20,931 21,412 21,904 22,408 22,924 23,451 2903 Training (Education) 198 - - - - - - - - 2180 Prof Services - Other 4,437 3,100 3,171 3,244 3,319 3,395 3,473 3,553 3,635 2181 Contract - Preventative Generators 10,000 10,000 10,230 10,465 10,706 10,952 11,204 11,462 11,725 2111 Prof Services - Legal 13,000 52,000 12,276 12,558 12,847 13,143 13,445 13,754 14,071 2180 Prof Services - Grant Writing - - - - - - - - - 2210 Telephone - Local 4,790 5,000 5,115 5,233 5,353 5,476 5,602 5,731 5,863 2109 Ins. Premiums - Agencies 9,651 10,600 10,844 11,093 11,348 11,609 11,876 12,150 12,429

2802, 2809 Shaw Butte Land Rental 14,750 15,000 15,345 15,698 16,059 16,428 16,806 17,193 17,588 All Other Services 506 2,000 2,046 2,093 2,141 2,190 2,241 2,292 2,345 TOTAL OTHER SERVICES 477,252$ 277,100$ 242,553$ 248,132$ 253,839$ 259,677$ 265,650$ 271,760$ 278,010$

GENERAL & ADMINISTRATIVE - COMMODITIES74255 Software Maint-Mainsaver,Juniper -$ 20,000$ 20,460$ 20,931$ 21,412$ 21,904$ 22,408$ 22,924$ 23,451$ 3131 Materials & Repair Parts - Outside 16,772 17,600 18,005 18,419 18,843 19,276 19,719 20,173 20,637 3116 Non Cap Assets 50,086 50,000 51,150 52,326 53,530 54,761 56,021 57,309 58,627 3118 Contract - Preventative Motorola 588,997 577,000 590,271 603,847 617,736 631,944 646,478 661,347 676,558 3000 All Other Commodities - 1,000 1,023 1,047 1,071 1,095 1,120 1,146 1,173

TOTAL COMMODITIES 655,855$ 665,600$ 680,909$ 696,570$ 712,591$ 728,980$ 745,747$ 762,899$ 780,446$

Total Operating & Maintenance 1,575,899$ 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

ROLLING 6 MONTH AVG AS OF 12/31/13 959 992 992 992 992 992 992 992

AIRTIME PERCENTAGEMESA 73.96% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44% 73.44%GILBERT 17.91% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16% 19.16%APACHE JUNCTION FIRE DISTRICT 0.51% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53% 0.53%APACHE JUNCTION 6.46% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62% 5.62%QUEEN CREEK 0.27% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36% 0.36%SOUTHWEST AMBULANCE 0.85% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%RIO VERDE 0.04% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%

TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

ANNUAL REVENUE OPERATING & MAINTENANCEMESA 1,042,699$ 1,045,597$ 1,068,543$ 1,091,995$ 1,115,964$ 1,140,462$ 1,165,500$ 1,191,089$ GILBERT 252,498$ 272,789$ 278,776$ 284,894$ 291,148$ 297,539$ 304,071$ 310,747$ APACHE JUNCTION FIRE DISTRICT 7,190$ 7,546$ 7,711$ 7,881$ 8,054$ 8,230$ 8,411$ 8,596$ APACHE JUNCTION 91,074$ 80,014$ 81,770$ 83,565$ 85,399$ 87,274$ 89,190$ 91,148$ QUEEN CREEK 3,807$ 5,125$ 5,238$ 5,353$ 5,470$ 5,590$ 5,713$ 5,839$ SOUTHWEST AMBULANCE 11,983$ 11,959$ 12,222$ 12,490$ 12,764$ 13,044$ 13,331$ 13,624$ RIO VERDE 564$ 712$ 727$ 743$ 760$ 776$ 794$ 811$

TOTAL 1,409,815$ 1,423,743$ 1,454,988$ 1,486,922$ 1,519,559$ 1,552,917$ 1,587,009$ 1,621,853$

MONTHLY FEE PER SUBSCRIBER UNIT OPERATING & MAINTENANCE 123$ 120$ 122$ 125$ 128$ 130$ 133$ 136$

Page 5 of 5

TRWC Operating & Maintenance BudgetSummary of Labor and Non-labor FY13/14 FY14-15VOICE TOPAZ TOPAZ

Projected Actuals Proposed Budget TRWC FY 15/16 TRWC FY 16/17 TRWC FY 17/18 TRWC FY 18/19 TRWC FY 19/20 TRWC FY 20/21 TRWC FY 21/22ESCALATION FACTOR 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Object Code Description

CAPITAL IMPROVEMENT COSTSNETWORK RELIABILITY IMPROVEMENTS:A.Fiber Optic Cable to Radio Network Backbone Sites (reliability improvement) (CP0092)-$ 574,750$ 2,515,250$ 1,510,000$ B. Fire VHF (budgetary rough order of magnitude estimate) - 900,000$ 900,000$ C. TOPAZ Voice Radio Network Upgrade (CP0090) - -$ 4,325,029$ 4,958,589$ D. Radio Sites Emergency Power Upgrade (CP0094) - 594,895$ E. Regional Communications Authority (CP0438) - 750,000$ F. Wireless Backhaul (Microwave) Network Upgrade (CP0093) - 1,209,798$ 1,253,003$ 1,299,793$ G. TOPAZ Voice Radio Network Coverage Improvements (CP0091) - 699,466$ 724,946$ 750,687$ 324,627$ 581,592$

TOTAL -$ 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

ANNUAL REVENUE CAPTIALMESA -$ 430,028$ 2,555,290$ 5,039,149$ 6,144,778$ 1,479,901$ 1,534,169$ 242,886$ 435,147$ GILBERT -$ 105,524$ 627,040$ 1,236,551$ 1,507,861$ 363,151$ 376,468$ 59,602$ 106,780$ APACHE JUNCTION FIRE DISTRICT -$ 2,644$ 15,710$ 30,981$ 37,779$ 9,099$ 9,432$ 1,493$ 2,675$ APACHE JUNCTION -$ 33,910$ 201,500$ 397,367$ 484,552$ 116,699$ 120,978$ 19,153$ 34,314$ QUEEN CREEK -$ 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$ RIO VERDE -$ 1,322$ 7,855$ 15,491$ 18,889$ 4,549$ 4,716$ 747$ 1,338$

TOTAL -$ 574,750$ 3,415,250$ 6,735,029$ 8,212,748$ 1,977,949$ 2,050,480$ 324,627$ 581,592$

MONTHLY FEE PER SUBSCRIBER UNIT CAPITAL -$ 50$ 287$ 566$ 690$ 166$ 172$ 27$ 49$

CASH FLOW FOR FISCAL YEAR 2014 / 2015

MONTH MESA GILBERT AJFD CAJQUEEN CREEK SWA RIO VERDE MESA GILBERT AJFD CAJ

QUEEN CREEK RIO VERDE

January 86,892$ 21,041$ 599$ 7,590$ 317$ 999$ 47$ 35,836$ 8,794$ 220$ 2,826$ 110$ 110$ February 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 March 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 April 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 May 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 June 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 July 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 August 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 September 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 October 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 November 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110 December 86,892 21,041 599 7,590 317 999 47 35,836 8,794 220 2,826 110 110

Total 1,042,699$ 252,498$ 7,190$ 91,074$ 3,807$ 11,983$ 564$ 430,028$ 105,524$ 2,644$ 33,910$ 1,322$ 1,322$ 1,409,815$ 574,750$

OPERATING AND MAINTENANCE EXPENSES CAPITAL EXPENSES

YEAR TO DATE ACTUALS THROUGH FEBRUARY 2014

OPERATIONS, MAINTENANCE AND CAPITAL

PRESENTED TO THE BOARD OF DIRECTORS MARCH 27, 2014

Page 2 of 3

TOPAZ BUDGET TO ACTUAL COMPARISON

Fiscal Year 2013 / 2014 VOICE

Operations and Maintenance Costs Original Budget Transfers Revised Budget February Units

1. Budgeted Airtime Units

COM 73.44% 73.44% 73.40%

TOG 19.16% 19.16% 18.12%

AJFD 0.53% 0.53% 0.43%

CAJ 5.62% 5.62% 6.86%

TQC 0.36% 0.36% 0.30%

RVFD 0.05% 0.05% 0.04%

SWA 0.84% 0.84% 0.85%

Total Airtime 100.00% 100.00% 100.00%

Monthly Budget Transfers Revised Monthly

Current Month

Actuals % Used

Monthly

Variance

2. Total Monthly Operating & Maintenance Costs $180,631 $180,631 $92,544 51% -$88,087

3. Operating & Maintenance Costs Original Budget Transfers Revised Budget YTD February % Used YTD Variance

COM $1,591,884 $1,591,884 $487,268 31%

TOG $415,308 $415,308 $117,978 28%

AJFD $11,484 $11,484 $3,365 29%

CAJ $121,812 $121,812 $43,830 36%

TQC $7,800 $7,800 $1,782 23%

RVFD $1,080 $1,080 $286 26%

SWA $18,204 $18,204 $5,594 31%

Total Operating & Maintenance Costs $2,167,572 $2,167,572 $660,100 30% -$784,945

Capital Projects Original Budget Transfers Revised Budget

Current Month

Actuals % Used YTD Variance

1. Total Monthly Capital Costs $0 $0 $0 0% $0

2. Capital Costs Original Budget Transfers Revised Budget YTD June % Used YTD Variance

COM $0 $0 $0 0%

TOG $0 $0 $0 0%

AJFD $0 $0 $0 0%

CAJ $0 $0 $0 0%

TQC $0 $0 $0 0%

RVFD $0 $0 $0 0%

Total Capital Costs $0 $0 $0 $0 0% $0

Budget 8 months Average Actuals as of Variance % Variance

Budget Projected over 8 Months Feb 28, 2014 Variance Explanations (over $5,000/10%)

Personnel Services 925,949 617,299 440,672 293,781 275,955 (17,827) -6%

Sub-total Personnel Services 925,949$ 617,299$ 440,672$ 293,781$ 275,955$ (17,827)$ -6%

Professional Services - Consulting 250,000 166,667 250,000 166,667 (166,667) -100%Use of funds expected in 4th QTR or possibly next

Fiscal Year

Professional Services - Legal 6,122 4,081 13,000 8,667 7,345 (1,322) -15%

Professional Services - Grant Writing 15,306 10,204 - -

Professional Services - Other 7,653 5,102 2,976 1,984 3,904 1,920 97%

Temp Services - 69,172 46,115 51,671 5,556 12% Funds are utilized as needed

Telephone - Local 4,337 2,891 4,790 3,193 3,293 100 3%

Equipment Usage (Vehicles) 10,714 7,143 32,048 21,365 11,854 (9,512) -45%Reviewed and re-allocated vehicle costs for the

current year.

Insurance Premiums - Agencies 9,055 6,037 9,651 6,434 (6,434) -100%

Insurance premiums were paid in Nov. Requested

allocation of insurance dollars for Topaz; in

process.

Repairs & Maintenance Outside 20,408 13,605 9,858 6,572 5,153 (1,419) -22%

Shaw Butte Land Rental 14,694 9,796 14,750 9,833 14,734 4,900 50%

Utilities 85,714 57,143 63,535 42,357 44,095 1,739 4%

Contract - Preventative Generators 51,020 34,013 10,000 6,667 (6,667) -100% Use of funds expected in 4th QTR

Training (Education) 5,102 3,401 198 132 352 220 167%

All Other Services 7,599 5,066 506 337 (337) -100%

Sub-total Services 487,724$ 325,149$ 480,484$ 320,323$ 142,400$ (177,923)$ -56%

Materials & Parts - Outside 57,398 38,265 16,772 11,181 11,239 58 1%

Non Cap Assets 10,204 6,803 50,086 33,391 26,628 (6,763) -20% Funds are utilized as needed

Contract - Preventative Motorola 683,746 455,831 588,997 392,665 203,877 (188,787) -48%Motorola was behind in invoicing; invoices are

caught up in March.

All Other Commodities 2,552 1,701 - -

Sub-total Commodities 753,900$ 502,600$ 655,855$ 437,237$ 241,745$ (195,492)$ -45%

Grand Total 2,167,573$ 1,445,049$ 1,577,011$ 1,051,341$ 660,099$ (391,241)$ -37%

Description

FY13/14

Actual

Increase/(Decrease)

Date: March 27, 2014 To: TOPAZ Regional Wireless Cooperative (TRWC) Board of Directors Through: Dale Shaw, TRWC Executive Director From: Randy Thompson Subject: Administrator Update Capital Projects No capital projects were budgeted for fiscal year 2013-2014. Operations Summary System Availability – Please see the system availability chart on page 3. Since the last Administrator update on January 23, 2014, the system availability has been 100%. For fiscal year 2014, the average system availability has been 99.956%, which is below the goal of 99.999%. Airtime and Radio Counts – the following charts are included:

1) Average airtime usage by member for fiscal year 2014 through February, 2014 2) Average number of radios enabled by member for fiscal year 2014 through February 2014 3) Average airtime usage by service type for fiscal year 2014 through February 2014 4) Average number of radios enabled by service type for fiscal year 2014 through February 2014

Peak Channel Usage – the following charts are included:

1) Peak channel usage for each site for January, 2014 2) Peak channel usage for each site for February, 2014

Other Significant Events:

1) As stated in the January 23rd Administrator Update, the emergency generators at each of the TOPAZ radio sites were tested under site load for 5 hours. A problem with the block heater at the Twin Knolls site was discovered and repaired. The Twin Knolls generator is scheduled for retesting, and the portable backup generator will be tested by powering the Central Radio Site (in the City of Mesa 6th Street Public Works yard) for 5 hours.

2) On February 14, 2014, the failure of an electrical relay caused the cooling system for the City of Mesa Communications Building to shut down. The system was brought back in to service after an approximate 8 hour outage. The defective relay has been replaced, and work is underway to perform maintenance on the existing chilled water (“chiller”) plant used for cooling. Additional alarms are being installed to ensure that appropriate personnel are alerted to a failure of the cooling plant. Temporary chiller equipment has been brought in to provide redundancy. The City of Mesa has a project underway to upgrade the cooling plant for the Communications

TRWC Administrator Update, March 27, 2014

2

Building; work on that project has been expedited in light of the failure on February 14th. This project is funded by City of Mesa General Obligation Bonds for Public Safety Capital Improvement Projects approved by the voters November 5, 2013.

Upcoming Events: 1) 800 MHz “re-banding.” Re-banding is the initiative by Sprint (formerly Nextel) and the Federal

Communications Commission to mitigate interference to users of the 800 MHz frequency spectrum caused by Sprint/Nextel’s iDEN (integrated Digital Enhanced Network) network. The issues with 800 MHz frequency use in the United States-Mexico border region have been settled, and the re-banding of 800 MHz Land Mobile Radio systems in the US-Mexico border region has begun. This work will involve the retuning of the TOPAZ voice radio network to new radio frequencies in the 800 MHz band, and require the reprogramming of all of the mobile and portable radios using the TOPAZ network. The cost of this work is borne by Sprint (there should be no cost to the TRWC members), and is planned to be complete by February, 2016. Work is underway at this time to develop the “Frequency Reconfiguration Agreement” for the TOPAZ network, which will be submitted to Sprint for negotiation March 21, 2014.

2) Although no capital projects were budgeted in the 2013-2014 fiscal year, the opportunity has arisen to replace the point-to-point microwave radios that connect the Range Rider TOPAZ site and the Falcon Field backhaul network node. The total TRWC operating budget expenditure for this project is less than $20,000. Even with this expenditure, the TRWC budget is forecast to end the fiscal year well under budget. Replacing these microwave radios also generates additional spare equipment for other point-to-point microwave radio connections in the network.

3) In addition to the project mentioned above for replacement of the cooling system for the Communications Building, there are two other projects underway to upgrade the emergency generators (placing them outside of the Communications Building to mitigate any exhaust fumes entering the building) and to upgrade the building Uninterruptible Power Source (UPS) and move it out of the basement of the Communications Building. These projects are funded by City of Mesa General Obligation Bonds for Public Safety Capital Improvement Projects approved by the voters November 5, 2013.

Personnel:

1) The Communications Engineer hired July 1, 2013, left the City of Mesa February 5, 2014. Going forward, this function will be contracted on an as-needed basis. . This change is not expected to affect service levels for the members of the TRWC.

2) Richard Delgado, Mobile Shop Coordinator, retired March 4, 2014, after 26+ years as an employee of the City of Mesa, and over 30 years working in the City’s Communications Department. All of the technician functions are being consolidated under one supervisor with an assistant supervisor. This change is not expected to affect service levels for the members of the TRWC.

TRWC Administrator Update, March 27, 2014

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System Availability, Fiscal Year 2014

99.650%

99.750%

99.850%

99.950%

Availability

Benchmark

7/25/13: Shaw Butte site out of service 240 sec due to human error

9/16/13: Entire system site trunking 900 sec due to human error

Goal = 99.999%

11/27/13: FS205 site out of service 8160 sec due to equipment failure

TRWC Administrator Update, March 27, 2014

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Apache Junction Fire District

Apache Junction City

Town of Gilbert

City of Mesa

Southwest Ambulance

Town of Queen Creek

Rio Verde Fire District

TRWC 6-monthRolling AverageAir Time Usage

FY 2014

Apache Junction Fire District

Apache Junction City

Town of Gilbert

City of Mesa

Southwest Ambulance

Town of Queen Creek

Rio Verde Fire District

TRWC Administrator Update, March 27, 2014

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Fire

Police

Municipal

TRWC Average Air Time UsageFY 2014

Fire

Police

Municipal

TRWC Average Radio CountsFY 2014

TRWC Administrator Update, March 27, 2014

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TOPAZ Peak Channel Usage, January, 2014

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

0

1

2

3

4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Simulcast Cell

Thompson Peak

Shaw Butte

TRWC Administrator Update, March 27, 2014

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TOPAZ Peak Channel Usage, February, 2014

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

0

1

2

3

4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Simulcast Cell

Thompson Peak

Shaw Butte