HomeMy WebLinkAboutStudy Session Materials - Fire Station PPT 1-26-2023North Sphere
Fire Station CITY COUNCILSTUDY SESSIONJANUARY 26, 2023
Agenda
2
Matrix Study Recap
North Sphere Activity and
Development
FS 102 Project Scope, Schedule,
Construction Budget
Operations Budget Discussion
Matrix Consulting Group –Fire Service Study
Background
•Retained in 2021 to conduct an analysis of the current fire
services provided by CAL Fire
•Presented to Council on February 14, 2022
Findings
•To improve services, construct a fourth station on Gerald
Ford Drive near Frank Sinatra Drive
3
North Sphere
Fire Service Challenges
4
•Increasing
response times
•Availability of Fire
Department
resources
•Increase reliance
on mutual aid
•Anticipated growth
in the North Sphere
North Sphere
Development Area
5
•996,222 sf additional
commercial in
development (22%
increase)
•5,814 additional
residential units in
development (308%
increase)
North Sphere Fire Station (FS 102)
Proposed Location
6
2.5-acre site
owned by
City
COOK STREETFRANK SINATRA DRIVE
•City has owned the
proposed site since 2014
(former SARDA property)
•Site is located within the
IID electric service area
•IID has capacity efficiency
in the area
•City has received a
commitment that IID will
serve the proposed site
FS 102: Project Scope
•Pending Design Contract
•3 Apparatus Bays and Dorms for 12 employees*
•9,718 SF initial construction
•Accommodate future building expansion
•Assess conditions of Fire Stations 33 and 71
•Pending Construction Management Contract
•Offsite Improvements (to be procured)
•Roadway widening
•Traffic signal
*3-Bay Fire Station is Required per MOU Agreement 7
FS 102: 3 Apparatus Bay Conceptual Layout
83**The greyed-out areas highlight possible future expansion of FS 102
FS 102 Projected Schedule
9
FS 102: Project Development Milestones
•Award building design contract January 26, 2023
•Award construction management contract February 2023
•Award off-site improvements design contract March 2023
•Bid Construction in January 2024
•Estimated Construction Completion in Fall 2025
10
FS 102: Construction Funding and Costs
11
Funding Sources Amount
Former PDRDA Bond Funds
(Regional Benefit-PA4)15,992,919
Former PDRDA Bond Funds
(PA2 Formerly part of I10 Project)3,000,000
County of Riverside
(Arena Contribution)**2,500,000
County of Riverside
(Additional Share inc FF&E)900,000
Fire Facilities Restoration Fund
(235)1,300,000
Total City/County Sources 23,692,919
Estimated Costs
On-Site Improvements
Design 741,400
Construction 13,207,368
Allowance for City Premium Enhancement 2,000,000
Construction Management & Inspection 1,981,105
Owner Soft Costs (IT, Permits)2,367,634
Furniture, Fixtures & Equipment 1,555,000
On-Site Total 21,852,507
Off-Site Improvements
Design 192,823
Construction 1,156,932
Construction Inspection 175,468
Off Site Total 1,525,223
Total Estimated Costs 23,377,730* Total On-Site Assumes estimate, 12% inflation, and 18% contingency
**Arena is contributing $1.8 M toward a ladder truck, not included above
Five –Year : Full Operations Projections (Pre Labor Negotiations)
8/05/20XX 12
SOURCES 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Structural Fire Tax $ 7,000,000 $ 7,140,000 $ 7,282,800 $ 7,428,456 $ 7,577,025 $ 7,728,566 $ 7,883,137
Reimbursement for Ladder Truck $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000
Prop A Fire Tax $ 2,200,000 $ 2,244,000 $ 2,288,880 $ 2,334,658 $ 2,381,351 $ 2,428,978 $ 2,477,557
EMS Cost Recovery $ 2,400,000 $ 2,424,000 $ 2,448,240 $ 2,472,722 $ 2,497,450 $ 2,522,424 $ 2,547,648
Misc Fees (Permits,Fireworks,etc.)/Interest $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Vehicles Paid by General Fund $ 504,000 $ 208,000 $ 235,000 $ 225,000
Total Revenue:$ 13,224,000 $ 13,136,000 $ 13,139,920 $ 13,590,836 $ 13,575,825 $ 13,799,968 $ 14,253,343
USES 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Fire/EMS Cooperative Services Agreement $ 16,145,375 $ 17,685,273 $ 21,036,085 $ 21,373,618 $ 21,712,469 $ 22,052,416 $ 22,216,980
Wittman Billing Services $ 385,000 $ 385,000 $ 385,000 $ 396,550 $ 408,447 $ 420,700 $ 433,321
Federal Quality Assurance Fee $ 235,000 $ 235,000 $ 235,000 $ 242,050 $ 249,312 $ 256,791 $ 264,495
Contingency Fund $ 50,000 $ 50,000 $ 50,000 $ 51,500 $ 53,045 $ 54,636 $ 56,275
Other (admin fees,utilities,R/M buildings,etc.)$ 242,500 $ 254,625 $ 267,800 $ 275,834 $ 284,109 $ 292,632 $ 301,411
Capital Projects $ 530,000 $ 293,000 $ 125,000 $ 179,000 $ 184,370 $ 189,901 $ 195,598
Capital Equipment $ 108,400
Capital Vehicles $ 504,000 $ 208,000 $ 235,000 $ 225,000
Total Expenditures:$ 18,200,275 $ 19,110,898 $ 22,098,885 $ 22,753,552 $ 22,891,751 $ 23,267,077 $ 23,693,080
Additional Funding Required $ (4,976,275)$ (5,974,898)$(8,958,965)$ (9,162,716)$ (9,315,926)$ (9,467,109)$ (9,439,737)
Transfer in from the General Fund $ 4,600,000 $ 2,300,000 $ 9,000,000 $ 9,250,000 $ 9,250,000 $ 9,500,000 $ 9,500,000
Fire Fund Balance @ FY End (Fund 230)$ 3,759,199 $ 84,301 $ 125,336 $ 212,620 $ 146,695 $ 179,586 $ 239,848
*Does not include Arena Truck at 102 inthis cost estimate….potentially an additional $3,500,000/year
**Also does not include Residual Pass-Thru Payment increases from former Redevelopment Agency.
What has changed?
DISCUSSION ITEMS DECISIONS NEEDED
2022/23 Study Session –Fire Station 102
Discussion
Make findings of regional benefit to use
bond funds to build
County’s Requirement for 3 bay in
exchange for $3M in funding and use of
truck
Costs associated with 3 bay station/plan
to operate
Cal Fire Labor Negotiations/Changes Short and Long-Term Financial Impacts
and potential “solutions”
•Increase Fire Tax
•Increase Transient Occupancy Tax
•Sales Tax Measure
•Implement a CFD Service District
•Utility User Tax Measure
Cal Fire Staff Count Changes
Five –Year : Full Operations Projections (Post Labor Negotiations)
8/05/20XX 14
SOURCES 2022/23 REV 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Structural Fire Tax (includes PT from County)$7,000,000 $7,000,000 $7,140,000 $7,282,800 $7,428,456 $7,577,025 $7,728,566 $7,883,137
Reimbursement for Ladder Truck $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000
Prop A Fire Tax $2,200,000 $2,200,000 $2,200,000 $2,244,000 $2,288,880 $2,334,658 $2,381,351 $2,428,978
EMS Cost Recovery $2,400,000 $2,400,000 $2,400,000 $2,424,000 $2,448,240 $2,472,722 $2,497,450 $2,522,424
Misc Fees (Permits,Fireworks,etc.)/Interest $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Vehicles Paid by General Fund $504,000 $504,000 $208,000 $235,000 $225,000
Total Revenue:$13,224,000 $13,224,000 $13,068,000 $13,070,800 $13,520,576 $13,504,405 $13,727,366 $14,179,539
USES 2022/23 REV 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Fire/EMS Cooperative Services Agreement $ 16,145,375 $ 17,198,285 $ 19,267,535 $ 20,852,398 $ 25,293,143 $ 26,535,791 $ 27,840,570 $ 29,216,299
Wittman Billing Services $385,000 $385,000 $385,000 $385,000 $473,550 $497,228 $522,089 $548,193
Federal Quality Assurance Fee $235,000 $235,000 $235,000 $235,000 $289,050 $303,503 $318,678 $334,612
Contingency Fund $50,000 $50,000 $50,000 $50,000 $61,500 $64,575 $67,804 $71,194
Other (admin fees,utilities,R/M bldgs,etc.)$242,500 $242,500 $249,775 $262,264 $322,584 $338,714 $355,649 $373,432
Capital Projects $530,000 $530,000 $293,000 $125,000 $179,000 $125,000 $125,001 $125,002
Capital Office Equipment $108,400 $108,400
Capital Vehicles $504,000 $504,000 $208,000 $235,000 $225,000
Total Expenditures:$18,200,275 $19,253,185 $20,688,310 $21,909,662 $26,853,828 $27,864,809 $29,229,791 $30,893,731
Surplus/(Deficit)-Transfer Needed $(4,976,275)$(6,029,185)$(7,620,310)$(8,838,862)$(13,333,252)$(14,360,404)$(15,502,425)$(16,714,192)
Transfer in from the General Fund $4,600,000 $4,600,000 $5,300,000 $8,900,000 $13,500,000 $14,500,000 $15,500,000 $16,500,000
Fire Fund Balance @ FY End (Fund 230)$ 3,759,199 $ 2,706,289 $ 385,979 $ 447,117 $ 613,865 $ 753,461 $ 751,036 $ 536,844
*Adds Ops for 102 (keeping 71 operational)and excludes operation costs for Arena truck anticipated at $3.5M/year.
23% increase in ops costs for 102 applied to Wittman, FQAF, other and contingency
Projected Impact to
Forecast/Reserve
CONFERENCE PRESENTATION 15
Future Costs Approved from Reserve:
•NS Park -$15M
•Fire Station 33 Renovation $1.3M
•Lupine Plaza $3.5M
•Portola Community Center $700k
•Traffic Op’s and Capacity $8M
•El Paseo Mid-Block Crossing $450k
•PD Link $4.95M
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Estimated Revenue 73,257,157$ 75,429,953$ 76,521,473$ 78,766,791$ 80,641,690$ 82,574,874$
Estimated Expenditures 73,425,440$ 79,906,688$ 84,199,133$ 87,725,134$ 88,814,288$ 89,904,335$
Revenue over (under) expenditures ($168,283)($4,476,735)($7,677,660)($8,958,343)($8,172,598)($7,329,461)
Est. General Fund Balance 108,163,585$ 78,758,850$ 69,231,190$ 53,892,847$ 44,970,249$ 37,640,788$
Unfunded CIP (from Reserve)(24,928,000)$ (1,850,000)$ (6,380,000)$ (750,000)$ -$ -$
Est. General Fund Balance 83,235,585 76,908,850 62,851,190 53,142,847 44,970,249 37,640,788
Est. General Fund Bal $83,235,585 $76,908,850 $62,851,190 $53,142,847 $44,970,249 $37,640,788
Non-Spendable 2,881,978 2,709,978 2,525,978 2,333,978 2,240,620 2,150,995
Current Reserve Policy
ASSIGNED
GF Operating Reserve (16.7% of Ops)10,174,541 11,194,285 11,846,619 12,369,022 12,550,911 12,732,949
COMMITTED
GF Emergency Reserve (16.7% of GF Revenue)**12,233,945 12,596,802 12,779,086 13,154,054 9,711,538 2,242,580
Facilities Reserve (Capital Rplcmnt Reserve Study)*15,835,648 15,183,384 9,326,082 (0)
CIP Reserve (20% of total 5-Year CIP-no Meas A)*9,824,410 5,385,619 5,915,689 4,864,326
Liability Reserve ($4M)4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Emplymnt Bene Reserve
(50% for PERS change in Discount Rate)10,084,939 10,496,576 10,699,112 11,020,085 11,020,085 11,020,085
Other Fund Stability Reserve (equal to 16.7% T-fer O 1,394,455 1,436,288 1,479,377 1,523,758 1,569,471 1,616,555
Equip Replacement Reserve
(100% of historical cost of assets balance)3,091,004 3,183,734 3,279,246 3,377,624 3,377,624 3,377,624
Econ Dvlpmnt/Land Acqn Reserve
(proceeds from SARDA sales)1,000,000 1,000,000 1,000,000 500,000 500,000 500,000
Total Required Reserve 70,520,920$ 67,186,667$ 62,851,189$ 53,142,847$ 44,970,249$ 37,640,788$
Est. Unassigned Fund Balance 12,714,665$ 9,722,183$ 0$ 0$ (0)$ 0$
*Facilities and CIP Reserves are shown underfunded in last four years to cover revenue shortfall. Reserve Requirement is not being met per policy, based on anticipated budget increases.
**GF Emergency Reserve is underfunded in last two years to cover revenue shortfall. Reserve Requirement is not being met per policy, based on anticipated budget increases.
Options to Cover Anticipated Shortfall
8/05/20XX CONFERENCE PRESENTATION 16
OPTIONS/POTENTIAL
FUNDING SOURCES
ASSOCIATED INITIAL
CHALLENGS
ESTIMATED 1ST YEAR
REVENUE GENERATION
ADDITIONAL CHALLENGES MEETS CURRENT
REVENUE NEEDS
IDENTIFIED
Increase to Prop A
Fire Tax (Special)
Requires 2/3rds approval of
votes –ours does not sunset
based on how it was approved.
70% failure rating in 2022
If the current $60 rate
was doubled, an increase
would generate
approximately $2.2M
The burden is carried by
property owners and
revenue restricted to fire
related services.
NO
Increase to Transient
Occupancy Tax (General)
Requires majority (50% +1) of
registered voters.
88% approval rating in 2022
If the current 11% rate
was increased 1%, an
increase would generate
approximately $2.1M
At 11% the City is currently
in the middle of the rates
charged throughout the
Valley (9%-13.5%).
NO
Increase to Sales Tax
(District Tax) General
Requires majority (50% + 1) of
registered voters.
88% approval rating in 2022
A District tax of 1%would
generate $26.1M
District tax may be
introduced by any taxing
entity within the City but is
limited to 2% max.
YES
Create a Community
Facilities District (CFD
for City Services)*
Requires all new development
owners to opt in prior to
entitlement
Could deter desired
development
A Services CFD with the
remaining undeveloped
properties may generate
an additional $5M
District must be joined as
condition of development
approval. Funds are limited
to project listed in district
documents.
NO
Impose a Utility Users
Tax (General)*
Requires majority (50% + 1) of
registered voters
68% failure rating in 2022
UUT of 15% would
generate approximately
$10M
UUT’s have a sunset clause.
Residents carry the burden
at an est cost of $30/month.
NO
General vs. Special Tax
8/05/20XX CONFERENCE PRESENTATION 17
GENERAL TAX
•A general tax is imposed to raise general-purpose revenues.
•Majority of voters must agree to enact a general tax.
•May only be submitted for voter approval at an election for city council
or board of supervisors unless a unanimous vote of the governing
board declares an emergency (Nov, 2024).
SPECIAL TAX
•A special tax is a tax imposed for a specific purpose.
•A city may increase the sales and use tax by adding a special use tax
for public safety, the acquisition of open space or transportation
projects.
•If the tax is for a specific purpose, the revenues may only be used for
that purpose and must have a sunset.
•Two-thirds of voters must agree to enact, increase or extend a special
tax.
Current TOT Rates in CV
8/05/20XX CONFERENCE PRESENTATION 18
City TOT Rate
Coachella 9%
Rancho Mirage 10%
La Quinta 10%
Palm Desert 11%
Indian Wells 11.25%
Cathedral City 12%
Desert Hot Springs 12%
Indio 13%
Palm Springs*13.5%
Palm Springs charges a separate rate for STRs at 11.5%
District Tax Estimate (Year 1) based on Current Sales Tax
8/05/20XX CONFERENCE PRESENTATION 19
Category Year Ended Capture Incremental Tax Rate Percent
Segment 2022Q3 Rate 0.25 0.5 0.75 1
General Retail 12,186,300 92%2,795,066 5,590,132 8,385,198 11,180,264
Food Products 4,959,851 99%1,232,230 2,464,460 3,696,690 4,928,920
Transportation 2,258,252 85%477,858 955,717 1,433,575 1,911,433
Construction 2,353,240 45%261,987 523,974 785,961 1,047,948
Business To Business 782,694 11%21,468 42,936 64,403 85,871
Miscellaneous 129,553 46%14,965 29,929 44,894 59,859
CITY TOTAL GROSS 22,669,891 85%4,803,574 9,607,148 14,410,721 19,214,295
City Share of County Pool 3,838,896
New Tax Rate Equivalent of
City 26,508,787 6,627,197 13,254,394 19,881,590 26,508,787
Projected District Tax (Less 1.5% CDTFA Administrative Fees)
Conservative 6,190,303 12,380,606 18,570,910 24,761,213
Most Likely 6,541,128 13,082,255 19,623,383 26,164,510
Optimistic 6,893,609 13,787,218 20,375,199 27,574,435
Projections provided by Avenu Insights and Analytics
Current Rates in CV and Voter Approval Stats
CONFERENCE PRESENTATION 20
Additional City Programs/Projects Already Competing for Funding
•North Sphere Park and Associated Services/Programs
•Public Safety Service Costs
•Future NS Aquatic Facility Subsidy
•Energy Infrastructure Needs for North Sphere Build-Out
•Arena Annexation and Associated Services/Infrastructure Needs*
*
*Both cities have enacted or in the process of enacting a service CFD to offset costs.
Sales (District Tax) Measures and Voter Approval in 2020
8/05/20XX CONFERENCE PRESENTATION 21