Axon Records and OPTIC Discussion | Thunder Bay Police Service

Decision Required: Approve Records line items before December 29, 2025 (pricing expiration)

Options: Status Quo vs. Axon Records + Emeres CAD

Key Difference: Consolidate RMS (JTS/Niche), CAD (Hexagon), OPTIC, and training (Halogen) into unified Axon ecosystem

Contract Exit Clause - Low Risk

Signing now locks in pricing with minimal risk - the contract contains a clause allowing Thunder Bay Police Service to exit the agreement entirely in 2026 if extenuating circumstances arise, including:

Board approval not being secured
Deal breakers possibly found after Statement of Work review by Records and IT managers and their staff
Director of Finance reviewing the contract and Statement of Work in detail
Funding issues
Other legitimate operational reasons

Bottom Line: We can exit if needed without penalty.

Strategic Value: Strength in Numbers

By joining the Axon Records ecosystem, Thunder Bay Police combines resources with other OPTIC agencies making the move together. Chatham-Kent has offered a project manager for all five services.

OPTIC Partner Services (Have Signed with Axon Records):

Barrie Police Belleville Police Peterborough Police Chatham-Kent Police

Other Canadian Services (Have Signed):

Edmonton Police Grand Prairie Police Manitoba First Nations

Services Considering Signing:

Winnipeg Police Sudbury Police

Benefits of Thunder Bay Signing Now:

$850K savings in Axon PSO - Axon Records PSO typically exceeds $1.1M; Thunder Bay negotiated $250K
$100K savings on Emeres professional services for each of the OPTIC 4 partners if Thunder Bay signs
Shared best practices across all partner services
Collective bargaining power for future enhancements
Inter-agency data sharing capabilities
Unified training resources
Collectively make Axon Records the Premier Records product throughout Canada using the wisdom of all services together

Current Status Quo - Annual Operating Costs (Pre-HST)

What we are paying today across all systems:

System	Description	Annual Cost
Hexagon CAD Charges	Outside of OPTIC	$111,000.00
JTS Costs	Annual CAD + Niche RMS costs	$277,385.20
OPTIC Costs	OPTIC consortium fees	$70,329.00
Halogen (Cornerstone)	Performance evaluation system (411 users)	$54,335.00
Subtotal - External Systems		$513,049.20
Current Axon (Gord's Quote)	OSP, Fleet, Evidence.com, Interview (avg/year)	$548,798.05
Redaction Assistant	240 users - has not been charged for 3 years, now properly billed	$51,940.80
Subtotal - Axon Products		$600,738.85
TOTAL STATUS QUO ANNUAL COST		$1,113,788.05

Operating Costs Comparison (Annual Pre-HST, Steady-State Year 3+)

What each option looks like once fully operational:

Cost Category	Status Quo	+Records +CAD	+Records +CAD +Standards	Everything All Inclusive
Axon Base Products (OSP, Fleet, Evidence.com, Interview)	$548,798	$548,798	$548,798	$548,798
Redaction Assistant (240 users)	$51,941	$51,941	$51,941	$51,941
Hexagon CAD (Replaced by Emeres)	$111,000	$0	$0	$0
JTS (CAD + Niche RMS) (Replaced by Axon Records)	$277,385	$0	$0	$0
OPTIC Costs (Goes away with Records + CAD)	$70,329	$0	$0	$0
Halogen (Cornerstone) (Replaced by Axon Standards)	$54,335	$54,335	$0	$0
Axon Records (365 licenses @ $56/mo)	-	$245,280	$245,280	$245,280
Emeres CAD (280 users @ $62/mo)	-	$208,320	$208,320	$208,320
Notes (240 users @ $10/mo)	-	-	-	$28,800
Standards (245 licenses @ $15/mo - Halogen replacement)	-	-	$44,100	$44,100
TOTAL ANNUAL OPERATING	$1,113,788	$1,108,674	$1,098,439	$1,127,239
ANNUAL DIFFERENCE vs STATUS QUO	-	-$5,114	-$15,349	+$13,451

Key: Strikethrough values = eliminated costs (replaced by Axon). Blue rows = new Axon additions. +Records+CAD+Standards saves $15,349/year!

One-Time PSO/Implementation Costs (Spread Over Years)

Professional Services and Implementation costs - required for transition:

PSO Item	Total Cost	Spread Over	Annual PSO	Years Applied
Records Professional Services	$250,000	5 years	$50,000	Years 1-5
Emeres CAD Implementation	$200,000	3 years	$66,667	Years 1-3
Technical Account Manager	$250,000	5 years	$50,000	Years 1-5
Notes (E-Notes) Deployment (Optional - Recommended)	$10,000	5 years	$2,000	Years 1-5
Standards Implementation (Optional - Recommended, Halogen replacement)	$40,000	5 years	$8,000	Years 1-5
TOTAL PSO (All Options)	$750,000	-	-	-

PSO Burden by Year

Year	Records PSO	CAD PSO	TAM	Notes PSO	Standards PSO	Total PSO
Year 1	$50,000	$66,667	$50,000	$2,000	$8,000	$176,667
Year 2	$50,000	$66,667	$50,000	$2,000	$8,000	$176,667
Year 3	$50,000	$66,666	$50,000	$2,000	$8,000	$176,666
Year 4	$50,000	$0	$50,000	$2,000	$8,000	$110,000
Year 5	$50,000	$0	$50,000	$2,000	$8,000	$110,000
Years 6-10	$0	$0	$0	$0	$0	$0
TOTAL	$250,000	$200,000	$250,000	$10,000	$40,000	$750,000

CAD Comparison: Emeres (Axon) vs. Cirrus (Standalone)

Another major financial justification: If we were to purchase another product other than Axon Records and wanted to use a standalone CAD system (such as Hexagon or Emeres), the cost for standalone vs. the current bundled offer shows significant savings.

$4,448,780

5-Year CAD Savings: Emeres Bundled vs. Cirrus Standalone

CAD Cost Component	Cirrus Standalone (5-Year)	Emeres via Axon (5-Year)	Savings
Implementation/PSO	$1,138,655	$200,000	$938,655
Year 1 Operating	$840,372	$208,320	$632,052
Year 2 Operating	$873,987	$208,320	$665,667
Year 3 Operating	$908,946	$208,320	$700,626
Year 4 Operating	$945,304	$208,320	$736,984
Year 5 Operating	$983,116	$208,320	$774,796
5-YEAR TOTAL	$5,690,380	$1,241,600	$4,448,780
AVERAGE ANNUAL SAVINGS	$1,138,076/yr	$248,320/yr	$889,756/yr

10-Year Investment Analysis (Full Package: Records + CAD + Notes + Standards)

Operating costs increase slightly, but CAD savings more than offset:

Year	Status Quo Annual Cost	New System Operating	PSO Cost	Total New Annual Cost	vs Status Quo
Year 1	$1,113,788	$1,127,239	$176,667	$1,303,906	+$190,118
Year 2	$1,113,788	$1,127,239	$176,667	$1,303,906	+$190,118
Year 3	$1,113,788	$1,127,239	$176,666	$1,303,905	+$190,117
Year 4	$1,113,788	$1,127,239	$110,000	$1,237,239	+$123,451
Year 5	$1,113,788	$1,127,239	$110,000	$1,237,239	+$123,451
Year 6	$1,113,788	$1,127,239	$0	$1,127,239	+$13,451
Year 7	$1,113,788	$1,127,239	$0	$1,127,239	+$13,451
Year 8	$1,113,788	$1,127,239	$0	$1,127,239	+$13,451
Year 9	$1,113,788	$1,127,239	$0	$1,127,239	+$13,451
Year 10	$1,113,788	$1,127,239	$0	$1,127,239	+$13,451
10-YEAR TOTALS	$11,137,880	$11,272,390	$750,000	$12,022,390	+$884,510

The Real Story: CAD Savings Offset Everything

10-Year Additional Investment (vs Status Quo)	+$884,510
5-Year CAD Savings (Emeres vs Cirrus)	-$4,448,780
NET 10-YEAR BENEFIT	$3,564,270

Bottom Line: Even though operating costs increase by ~$13K/year after PSO, the CAD savings of $4.45M over 5 years result in a net benefit of $3.56M over 10 years.

Summary: Total 10-Year Cost Comparison

Metric	Status Quo (10 Years)	Full Axon Package (10 Years)	Difference
Total Operating Costs	$11,137,880	$11,272,390	+$134,510
Total PSO/Implementation	$0	$750,000	+$750,000
Subtotal Investment	$11,137,880	$12,022,390	+$884,510
CAD Savings (Emeres vs Cirrus)	$0	-$4,448,780	-$4,448,780
NET 10-YEAR POSITION	$11,137,880	$7,573,610	$3,564,270 BENEFIT

What the Full Package Delivers

Eliminates (Annual: $513,049)

Hexagon CAD - $111,000/yr
JTS (Niche RMS) - $277,385/yr
OPTIC - $70,329/yr
Halogen - $54,335/yr

Adds (Annual: $526,500)

Axon Records - 365 licenses ($245,280)
Emeres CAD - 280 users ($208,320)
Notes - 240 users ($28,800)
Standards - 245 licenses ($44,100)

Net Annual Increase: $13,451/year | But: Avoids $889,756/year in Cirrus CAD costs

Action Required

Sign off on Records line items before December 29, 2025

Pricing expires on this date. The 2026 exit clause provides flexibility if circumstances change.

CAD Savings: $4.45M (5-yr) | Net 10-Year Benefit: $3.56M | OPTIC Partners Save: $100K each