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HomeMy WebLinkAboutC35330 - 2yr Fire Svcs Coop Agmt w-County-Cal Firer: Contract No. C35330 CITY OF PALM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: APPROVAL OF A TWO YEAR FIRE SERVICES COOPERATIVE AGREEMENT WITH RIVERSIDE COUNTY/CAL FIRE. SUBMITTED BY: Stephen Y. Aryan, Risk Manager DATE: May 26, 2016 CONTENTS: Fire Services Cooperative Agreement Recommendation By Minute Motion, 1. Approve the two-year Cooperative Agreement with Riverside County/CalFire to provide fire protection, fire prevention, rescue and medical emergency services for the City of Palm Desert from July 1, 2016, through June 30, 2018; and 2. Authorize and direct the Mayor to execute the Cooperative Agreement. Commission Action The Palm Desert Public Safety Commission reviewed this matter at their February 10, 2016, meeting. The Commission recommended that the Palm Desert City Council approve the Cooperative Agreement, as approved to final form by the City Attorney upon staff's negotiations with the County. Strategic Plan Obiective This matter is related to the Public Safety and Emergency Services section of the Palm Desert Strategic Plan, specifically under Prioritv 1: Enhance the Delivery of Public Safetv Services. The priority's strategy is to expand the existing superlative services provided by the fire and police departments to address future growth and safety concerns. This Cooperative Agreement will assist with accomplishing this priority. Background The City of Palm Desert contracts for fire services from Riverside County, who also contracts for service with the California Department of Forestry and Fire Protection ("CalFire"). The City's current contract for services expires June 30, 2016. Due to recent changes in state law, the City is required to renew the contract prior to July 1, 2016, or risk necessity of obtaining contract approval from LAFCO (explained herein). Contract Changes For the next contract term, Riverside County is making a number of modifications to the standard contract used for all of their contracting agencies. Three changes in particular are of concern for the City: Contract No. CB15330 Fire Services Cooperative Agreement May 26, 2016 Page 2 of 3 1. Terms of Cost Increase: Historically the City's contract limited the City's liability for cost increases after approval of an annual budget. Specifically, the expiring contract states the City is not responsible for any cost increases provided by action of the State or County after the City adopts an annual budget. Annually, the County provides the City with a revised Exhibit A to the contract, which gets adopted via the City Budget. The County is requiring a change to the contract by removing this protection for the City. The change makes the City liable for any cost increases resulting from action of the State or County. 2. Full Cost Recoverv: Historically, the City's contract did not specifically call out County's ability to recover full cost of providing services. Full cost, as interpreted from other County contracts such as with the Sheriff Department, includes allocated costs of County internal services funds. For example, the County passes on to the City an allocable cost for IT, HR, and County Executive Office costs. The County is requiring a change to the contract specifically mandating the County's requirement for full cost recovery. The change makes the City potentially liable for higher allocated costs from the internal services fund. 3. Termination of Contract: Historically, the City's contract allowed for a one (1) year notification to terminate the contract for services. The revised contract template provided by the County requires voter approval of either the City or County to terminate the service during the term. The City will maintain ability to decline renewal of a future contract with one (1) year's written notice prior to expiration of the agreement. Staff and the City Attorney worked collectively to modify and requested amendments of these provisions. However, the County has denied all requests for amendments. While these amendments would make for a better agreement, it's unlikely that they would have a material effect in the performance of the contract. State Law Modification Last year, Senate Bill 239 changed state law requiring LAFCO approval for any "new" fire service contract. A union backed bill, the legislation introduced new obstacles for cities to contract out fire services away from in-house departments. While aimed at cities seeking to dismantle their in-house departments to contract out, the legislation may also apply to any existing contracting agency whose contract expires prior to renewal. Based on staff's interpretation, unless the City renews the contract for service with Riverside County by July 1, 2016, service will have lapsed. If the contract lapses any subsequent contract may be considered "new." In order to satisfy the SB239 described LAFCO process, the City would be required to hold a public hearing making findings for contracting services, achieve approval from the State Director of Finance, perform an independent comprehensive financial analysis and plan for services, along with a determination that revenues received are sufficient for delivery of service. Fire Services Cooperative Agreement Contract No. C May 26, 2016 (3�ititil0 Page 3of3 Due to the added requirements, Staff recommends the City move forward with execution of the contract prior to July 1, 2016, despite having unfavorable language changes from the County. Other Considerations The County is requesting a two (2) year contract for services as opposed to the historical three (3) year term of service. The shorter term requested by the County allows for further adjustment to future costs based on a recently published Standards of Service Study. The County believes there will be changes in their standards for service coverages, which they estimate to take a little less than two years to implement. This allows the County to modify the contract again in two (2) years to capture any cost changes resulting from changes in the standards of coverage. Fiscal Impact The cost estimate for Fire Services for FY2016/17 is approximately $12.8 million. This represents an 8.5% increase over the prior year's cost estimate. All costs are paid for out of the Prop. A Fire Protection Fund. Additional cost increases for future years are unknown. Staff expects future cost increases resulting from introduction of County allocated costs and changes to the standards of coverage, but will work with the County and neighboring cities in potentially minimizing any additional cost impacts. Submitted By: Stephen Y. Aryan, Risk Manager Approval: iger Contract No. C35360 A COOPERATIVE AGREEMENT TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF PALM DESERT THIS AGREEMENT, made and entered into this day of , 2016, by and between the County of Riverside, a political subdivision of the State of California, on behalf of the Fire Department, (hereinafter referred to as "COUNTY") and the City of Palm Desert a duly created city, (hereinafter referred to as "CITY"), whereby it is agreed as follows: SECTION I: PURPOSE The purpose of this Agreement is to arrange for COUNTY, through its Cooperative Fire Programs Fire Protection Reimbursement Agreement ("CAL FIRE Agreement") with the California Department of Forestry and Fire Protection ("CAL FIRE") to provide CITY with fire protection, disaster preparedness and response, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assists (hereinafter called "Fire Services"). This Agreement is entered into pursuant to the authority granted by Government Code Sections §55600 et seq., and will provide a unified, cooperative, integrated, and effective fire services system. COUNTY's ability to perform under this Agreement is subject to the terms and conditions of the CAL FIRE Agreement. SECTION Il: DESIGNATION OF FIRE CHIEF A. The County Fire Chief appointed by the Board of Supervisors, or his designee, (hereinafter referred to as "Chief') shall represent COUNTY and CITY during the period of this Agreement and Chief shall, under the supervision and direction of the County Board of Supervisors, have charge of the organization described in Exhibit "A", attached hereto and made a part hereof, for the purpose of providing Fire Services as deemed necessary to satisfy the needs of both the COUNTY and CITY, except upon those lands wherein other agencies of government have responsibility for the same or similar Fire Services. B. The COUNTY will assign an existing Chief Officer as the Fire Department Liaison ("Fire Liaison"). The Chief may delegate certain authority to the Fire Liaison, as the Chiefs duly authorized designee and the Fire Liaison shall be responsible for directing the Fire Services provided to CITY as set forth in Exhibit "A". C. COUNTY will be allowed flexibility in the assignment of available personnel and equipment in order to provide the Fire Services as agreed upon herein. Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 1 of 9 Contract No. C35330 SECTION III: PAYMENT FOR SERVICES A. CITY shall annually appropriate a fiscal year budget to support the Fire Services designated at a level of service mutually agreed upon by both parties and as set forth in Exhibit "A" for the term of this Agreement. This Exhibit may be amended in writing by mutual agreement by both parties or when a CITY requested increase or reduction in services is approved by COUNTY. B. COUNTY provides fire personnel, equipment and services through its CAL FIRE Agreement. In the event CITY desires an increase or decrease in CAL FIRE or COUNTY civil service employees or services assigned to CITY as provided for in Exhibit "A," CITY shall provide one hundred twenty (120) days written notice of the proposed, requested increase or decrease. Proper notification shall include the following: (1) The total amount of increase or decrease; (2) The effective date of the increase or decrease; and (3) The number of employees, by classification, affected by the proposed increase or decrease. If such notice is not provided, CITY shall reimburse COUNTY for relocation costs incurred by COUNTY because of the increase or decrease, in addition to any other remedies available resulting from the increase or decrease in services. COUNTY is under no obligation to approve any requested increase or decrease, and it is expressly understood by the parties that in no event will COUNTY authorize or approve CITY's request to reduce services below the COUNTY Board of Supervisors approved staffing level for any fire station, or to reduce services to the extent that the services provided under this Agreement are borne by other jurisdictions. COUNTY shall render a written decision on whether to allow or deny the increase or decrease within thirty (30) _days of the notice provided pursuant to this section. C. CITY shall pay COUNTY actual costs for Fire Services pursuant to this Agreement. COUNTY shall make a claim to CITY for the actual cost of contracted services, pursuant to Exhibit "A," on a quarterly basis. The COUNTY is mandated per Government Code Section §51350 for full cost recovery. CITY shall pay each claim, in full, within thirty (30) days after receipt thereof. D. Any changes to the salaries or expenses set forth in Exhibit "A" made necessary by action of the Legislature, CAL FIRE, or any other public agency with authority to direct changes in the level of salaries or expenses, shall be paid from the funds represented as set forth in Exhibit "A." The CITY is obligated to expend or appropriate any sum in excess of Exhibit "A" increased by action of the Legislature, CAL FIRE, or any other public agency with authority to direct changes. If within thirty (30) days after notice, in writing, from COUNTY to CITY that the actual cost of maintaining the services specified in Exhibit "A" as a result of action by the Legislature, CAL -FIRE, or other public agency will exceed the total amount specified therein, and CITY has not agreed to make available the necessary additional funds, COUNTY shall have the right to unilaterally reduce the services furnished under this Agreement by an appropriate amount and shall promptly notify CITY, in writing, specifying the services to be reduced. Any COUNTY or CAL -FIRE personnel reduction resulting solely due to an increase in employee salaries or expenses Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 2 of 9 Contract No. C351( BO occurring after signing this Agreement and set forth in Exhibit "A" that CITY does not agree to fund, as described above, shall not be subject to relocation expense reimbursement by CITY. If CITY desires to add funds to the total included herein to cover the cost of increased salaries or services necessitated by actions described in this paragraph, such increase shall be accomplished by an additional appropriation by the City Council of CITY, and an amendment to Exhibit "A" approved by the parties hereto. E. Chief may be authorized to negotiate and execute any amendments to Exhibit "A" of this Agreement on behalf of COUNTY as authorized by the Board of Supervisors. CITY shall designate a "Contract Administrator" who shall, under the supervision and direction of CITY, be authorized to execute amendments to Exhibit "A" on behalf of CITY. F. [ ] (Check only if applicable, and please initial to acknowledge) Additional terms as set forth in the attached Exhibit "B" are incorporated herein and shall additionally apply to this agreement regarding payment of services. G. [X] (Check only if applicable, and please initial to acknowledge) Additional terms as set forth in the attached Exhibit "C" are incorporated herein and shall additionally apply to this agreement regarding payment for the Fire Engine Use Agreement. H. Notwithstanding Paragraph F herein if applicable, additional terms as set forth are incorporated herein and shall additionally apply to this agreement regarding payment of services. In the event that a fire engine, owned and maintained by the CITY has a catastrophic failure, the COUNTY Fire Chief may allow use of a COUNTY fire engine, free of charge up to one hundred twenty (120) days. After the initial one hundred twenty (120) days, a rental fee will be applied to the CITY invoice for use of said COUNTY fire engine. The rental fee shall be Nine Hundred Forty Four Dollars ($944.00) per day; or Six Thousand Six Hundred Eight Dollars ($6,608.00) per week. SECTION IV: INITIAL TERM AND AMENDMENT A. The term of this Agreement shall be from July 1, 2016, to June 30, 2018. B. One (1) year prior to the date of expiration of this Agreement, CITY shall give COUNTY written notice of whether CITY intends to enter into a new Agreement with COUNTY for Fire Services and, if so, whether CITY intends to request a change in the level of Fire Services provided under this Agreement. SECTION V: TERMINATION During the terms of this Agreement, this Agreement may only be terminated by the voters of either the COUNTY or the CITY pursuant to Government Code §55603.5. Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 3of9 Contract No. C35330 SECTION VI: COOPERATIVE OPERATIONS All Fire Services contemplated under this Agreement shall be performed by both parties to this Agreement working as one unit; therefore, personnel and/or equipment belonging to either CITY or COUNTY may be temporarily dispatched elsewhere from time to time for mutual aid. SECTION VII: MUTUAL AID Pursuant to Health and Safety Code Sections 13050 et seq., when rendering mutual aid or assistance, COUNTY may, at the request of CITY, demand payment of charges and seek reimbursement of CITY costs for personnel, equipment use, and operating expenses as funded herein, under authority given by Health and Safety Code Sections 13051 and 13054. COUNTY, in seeking said reimbursement pursuant to such request of CITY, shall represent the CITY by following the procedures set forth in Health and Safety Code Section 13052. Any recovery of CITY costs, less actual expenses, shall be paid or credited to the CITY, as directed by CITY. In all such instances, COUNTY shall give timely notice of the possible application of Health and Safety Code Sections 13051 and 3054 to the officer designated by CITY. SECTION VIII: SUPPRESSION COST RECOVERY As provided in Health and Safety Code Section 13009, COUNTY may bring an action for collection of suppression costs of any fire caused by negligence, violation of law, or failure to correct noticed fire safety violations. When using CITY equipment and personnel under the terms of this Agreement, COUNTY may, on request of CITY, bring such an action for collection of costs incurred by CITY. In such a case CITY appoints and designates COUNTY as its agent in said collection proceedings. In the event of recovery, COUNTY shall apportion to CITY its pro-rata proportion of recovery, less the reasonable pro-rata costs including legal fees. In all such instances, COUNTY shall give timely notice of the possible application of Health and Safety Code Section 13009 to the officer designated by CITY. In the event the CITY elects to use COUNTY funded Fire Marshal services, the services will be provided at a cost outlined in COUNTY Ordinance 671(Establishing Consolidated Fees For Land Use and Related Functions). SECTION IX: PROPERTY ACCOUNTING All personal property provided by CITY and by COUNTY for the purpose of providing Fire Services under the terms of this Agreement shall be marked and accounted for in such a manner as to conform to the standard operating procedure established by the COUNTY for the segregation, care, and use of the respective property of each. Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 4of9 Contract No. C35330 SECTION X: FACILITY CITY shall provide Fire Station(s), strategically located to provide standard response time within City of Palm Desert from which fire operations shall be conducted. If the Fire Station(s) are owned by the CITY, the CITY shall maintain the facilities at CITY's cost and expense. In the event CITY requests COUNTY to undertake repairs or maintenance costs or services, the costs and expenses of such repairs or maintenance shall be reimbursed to COUNTY through the Support Services Cost Allocation, or as a direct Invoice to the CITY. SECTION XI: INDEMNIFICATION AND HOLD HARMLESS To the fullest extent permitted by applicable law, COUNTY shall and does agree to indemnify, protect, defend and hold harmless CITY, its agencies, districts, special districts and departments, their respective directors, officers, elected and appointed officials, employees, agents and representatives (collectively, "Indemnitees") for, from and against any and all liabilities, claims, damages, losses, liens, causes of action, suits, awards, judgments and expenses, attorney and/or consultant fees and costs, taxable or otherwise, of any nature, kind or description of any person or entity, directly or indirectly arising out of, caused by, or resulting from (1) the Services performed hereunder by COUNTY, or any part thereof, (2) the Agreement, including any approved amendments or modifications, or (3) any negligent act or omission of COUNTY, its officers, employees, subcontractors, agents, or representatives (collectively, "Liabilities"). Notwithstanding the foregoing, the only Liabilities with respect to which COUNTY's obligation to indemnify, including the cost to defend, the Indemnitees does not apply is with respect to Liabilities resulting from the negligence or willful misconduct of an Indemnitee, or to the extent such claims do not arise out of, pertain to or relate to the Scope of Work in the Agreement. To the fullest extent permitted by applicable law, CITY shall and does agree to indemnify, protect, defend and hold harmless COUNTY, its agencies, departments, directors, officers, agents, Board of Supervisors, elected and appointed officials and representatives (collectively, "Indemnitees") for, from and against any and all liabilities, claims, damages, losses, liens, causes of action, suits, awards, judgments and expenses, attorney and/or consultant fees and costs, taxable or otherwise, of any nature, kind or description of any person or entity, directly or indirectly arising out of, caused by, or resulting from (1) the services performed hereunder, by CITY, or any part thereof, (2) the Agreement, including any approved amendments or modifications, or (3) any negligent act or omission of CITY its officers, employees, subcontractors, agents, or representatives (collectively, "Liabilities"). Notwithstanding the foregoing, the only Liabilities with respect to which CITY's obligation to indemnify, including the cost to defend, the Indemnitees does not apply is with respect to Liabilities resulting from the negligence or willful misconduct of an Indemnitee, or to the extent such claims do not arise out of, pertain to or relate to the Scope of Work in the Agreement. Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 5 of 9 Contract No. C35BW SECTION XII: AUDIT A. COUNTY and CITY agree that their designated representative shall have the right to review and to copy any records and supporting documentation of the other party hereto, pertaining to the performance of this Agreement. COUNTY and CITY agree to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated or as required by law, and to allow the auditor(s) of the other party access to such records during normal business hours COUNTY and CITY agree to a similar right to audit records in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896). B. Each party shall bear their own costs in performing a requested audit. SECTION XIII: DISPUTES CITY shall select and appoint a "Contract Administrator" who shall, under the supervision and direction of CITY, be available for contract resolution or policy intervention with COUNTY, when, upon determination by the Chief that a situation exists under this Agreement in which a decision to serve the interest of CITY has the potential to conflict with COUNTY interest or policy. Any dispute concerning a question of fact arising under the terms of this Agreement which is not disposed of within a reasonable period of time by the CITY and COUNTY employees normally responsible for the administration of this Agreement shall be brought to the attention of the Chief Executive Officer (or designated representative) of each organization for joint resolution. For purposes of this provision, a "reasonable period of time" shall be ten (10) calendar days or less. CITY and COUNTY agree to continue with the responsibilities under this Agreement during any dispute. Disputes that are not resolved informally by and between CITY and COUNTY representatives may be resolved, by mutual agreement of the parties, through mediation. Such mediator will be jointly selected by the parties. The costs associated with mediator shall be shared equally among the participating parties. If the mediation does not resolve the issue(s), or if the parties cannot agree to mediation, the parties reserve the right to seek remedies as provided by law or in equity. The parties agree, pursuant to Battaglia Enterprises v. Superior Court (2013) 215 Cal.App.4th 309, that each of the parties are sophisticated and negotiated this agreement and this venue at arm's length. Pursuant to this Agreement, the parties agree that venue for litigation shall be in the Superior Court of Riverside County. Should any party attempt to defeat this section and challenge venue in Superior Court, the party challenging venue stipulates to request the Court change venue to San Bernardino County and shall not ask for venue in any other County. Any claims or causes of actions, whether they arise out of unresolved disputes as specified in this Section or claims by third parties that are made against the COUNTY, shall be submitted to the Office of the Clerk of the Board for the County of Riverside in a timely manner. For claims made against the COUNTY that involve CalFire employees, to Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 6 of 9 Contract No. C35330 the extent permissible under the COUNTY's contract with CalFire, the claims will be forwarded on to CalFire for processing. SECTION XIV: ATTORNEY'S FEES If CITY fails to remit payments for services rendered pursuant to any provision of this Agreement, COUNTY may seek recovery of fees through litigation, in addition to all other remedies available. In the event of litigation between COUNTY and CITY to enforce any of the provisions of this Agreement or any right of either party hereto, the unsuccessful party to such litigation agrees to pay the prevailing party's costs and expenses, including reasonable attorneys' fees, all of which shall be included in and as a part of the judgment rendered in such litigation. SECTION XV: DELIVERY OF NOTICES Any notices to be served pursuant to this Agreement shall be considered delivered when deposited in the United States mail and addressed to: COUNTY County Fire Chief 210 W. San Jacinto Ave Perris, CA 92570 CITY OF PALM DESERT City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Provisions of this section do not preclude any notices being delivered in person to the addresses shown above. Delivery in person shall constitute service hereunder, effective when such service is made. SECTION XVI: ENTIRE CONTRACT This Agreement contains the whole contract between the parties for the provision of Fire Services. It may be amended or modified upon the mutual written consent of the parties hereto where in accordance with applicable state law. This Agreement does NOT supplement other specific agreements entered into by both parties for equipment or facilities, and excepting those equipment or facilities agreements, this Agreement cancels and supersedes any previous agreement for the same or similar services. Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 7 of 9 Contract No. C35330 [Signature Provisions on following page] Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 8 of 9 Contract No.. C35330 IN WITNESS WHEREOF, the duly authorized officials of the parties hereto have, in their respective capacities, set their hands as of the date first hereinabove written. Dated: CITY OF PALM DESERT M Title: ATTEST: APPROVED AS TO FORM: M Title: (SEAL) Dated: COUNTY OF RIVERSIDE By: Chairman, Board of Supervisors ATTEST: APPROVED AS TO FORM: GREGORY P. PRIAMOS, KECIA HARPER -THEM County Counsel Clerk of the Board By: By: Deputy ERIC STOPHER Deputy County Counsel (SEAL) F root data'RRI; County Flnance`Contract Cities COOPERATIVE AGRF.F%IENT,TFNIPLATE',TFVIPLATF. COOPERATIVE 2YR AGRF. MENT 20160418 docx Cooperative Fire Agreement City of Palm Desert July 1, 2016 to June 30, 2018 9 of 9 Wassen, Rachelle From: Aryan, Stephen Sent: Monday, May 23, 2016 5:49 PM Subject: Fire Services Cooperative Agreement Questions Attachments: Fire Cooperative Agreement Questions.pdf Hello Councilmembers, the attached document outlines my response to a recent Council inquiry on the Fire Services Cooperative Agreement that will be before the City Council for consideration this Thursday. Sincerely, Stephen Stephen Y. Aryan Risk Manager Ph:760.346.0611 Direct:760.776.6326 saryan@cityofpalmdesert.org 13-510 Fred Woring Drive, Polm Desert, CA 92260-2578 www,cityofpalmdesert,org 1 1. You indicated a cost estimate of $12.8 million. How does that compare to other valley cities, both in absolute and per capita amounts? The following is taken from a memo previously provided to Council. I updated the Palm Desert budget number to reflect what was in the budget. City Population FY 14115 Cost Fire Firefighters Medic 01/01/15 Fire Budget_ p/Resident Stations Unit Indian Wells 5,194 $2,713,349 $522 1 14 Yes Palm Springs* 46,611 $12,797,207 $275 4 48 **No Rancho Mirage 17,889 $4,718,385 $264 2 22 Yes Palm Desert 51,053 $10,760,360 $211 3 44 Yes Cathedral City* 52,903 $7,582,798 $143 3 30 Yes Indio 84,201 $11,729,203 $139 4 49 Yes La Quinta 39,694 $5,503,631 $139 3 24 **No Desert Hot Springs 28,134 $2,022,629 $72 1 8 **No Coachella 43,917 $3,001,583 $68 1 14 **No *A city operated fire J�uu)..r„ent **Medical transportation ,provided by American Medical Response (AMR) • Although the City of Palm Desert has three fire stations, it operates four medic units, as one is located at Indian Wells' fire station. • Although Cathedral City and Indio have their own medic units, they charge for transportation. Most other cities do not charge, or patients are billed by AMR. 2. You indicated an 8.5% increase for the coming year. What has the trend been the past 5 years, i.e. the annual cost and the annual increases for the past 5 years? YEAR AMOUNT* ANNUAL INCREASE FY 2011 /12 $9,130,000 0% FY 2012/13 $9,380,000 2.7% FY 2013/14 $9,870,000 5.2% FY 2014/15 $10,760,000 9.0% FY 2015/16 $11,880,000 10.4% FY 2016/17 $12,830,000 8.0%** *Please note that amounts are rounded and estimated for FY 2015/16 & 2016/17 ** This number reflects adjustments made to capital costs. 3. Are other valley cities facing the three issues/concerns you outlined in your report, and how are they dealing with it? Staffs concerns noted in the report were discussed collectively amongst the other Cove Cities. Staff worked with the City Attorney in drafting suggested edits, but the County did not want to change the contract terms. Staff understands that all contracting agencies are provided the identical agreement, with the only difference noted under the level of services contracted for within the "Schedule A" Exhibit (i.e. staffing levels, etc.). Even without implementation of the suggested modifications, staff recommends approving the agreement. Under a new law, if not approved before expiring on June 30, 2016, the City is required to process the contract through LAFCO. If this were the case, the City would incur the additional costs for holding a public hearing, achieving approval from the State Director of Finance, performing an independent comprehensive financial analysis/plan for services, along with a determination that revenues received are sufficient for delivery of service. Even after all these steps, the contract would most likely remain as presented. 4. Do we contract independently, or through the Cove Commission? As of 2006, the Cove Communities Services Commission does not collectively contract for fire services; each city has its own unique contract.