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OUC seeks new funding stream for next‑generation 911; proposes hotel surcharge and fee updates
Summary
OUC Director Heather McGaffin told the committee the current E911 fee covers only about 20% of operating costs; she proposed modest fee changes or a hotel‑room surcharge (estimated ~$7.5M/year) to close a structural funding gap and support next‑generation 911 upgrades and resilience.
The Committee heard from OUC Director Heather McGaffin about the financial strain on the city’s 911 infrastructure and a proposal to update funding. McGaffin said the current E911 surcharge (unchanged since 2000) covers roughly 20% of OUC’s operating costs and that rising technology and maintenance expenses have created a structural shortfall.
Nut graf: OUC recommended two alternatives to cover the shortfall for next‑generation 911: a modest per‑line increase (move from 76¢ per bill to $1 per access line) or a hotel‑room surcharge that would generate an estimated $7.5 million annually. McGaffin argued a hospitality surcharge is fair because tourism and commuters account for a large share of call volume and would not raise the burden on residents disproportionately.
Director McGaffin outlined performance gains (she credited improvements in answer speed and AI‑driven quality assurance) and said stable revenue is required to maintain redundancy, cyber resilience, and the region’s shared ESInet procurement. The OUC also described innovations including expanded nurse triage referral systems and AI‑assisted quality assurance reviewing 100% of calls to detect training needs.
Councilmembers asked for further mapping of call origins (for example illustrating call density on the National Mall and hospitality areas) and raised concerns about how any surcharge would affect hotel rates and competition with neighboring jurisdictions. McGaffin said the hospitality surcharge targets visitors and that many calls originate from commuters and tourists, not only residents. Committee staff asked OUC to provide geospatial call maps and to analyze impacts on consumers and providers.
Ending: The hearing closed with Councilmembers asking OUC and the administration for precise fiscal models and consumer impacts; no immediate vote took place.
