HomeMy WebLinkAboutCove Commission Funding FormulasREQUEST:
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
Consideration and Discussion of Various Cove Commission Funding
Formulas
SUBMITTED BY: Carlos L. Ortega, City Manager
DATE: May 13, 2004
CONTENTS: 1. Riverside County Fire Contract -Historical Cost Evaluation
2. FY 2004/05 Cove Contract Fire Costs Options
3. Cove Community Service District Fire Protection Agreement
Recommendation
By Minute Motion:
1) Provide direction relative to the City's continuing participation in the Cove Communities
joint contract for firefighting and paramedic services.
a. If the answer is to continue to provide service to a joint contract then select a level
of service and funding formula, or
2) Direct staff to negotiate a stand-alone contract for firefighting and paramedic services
with the County of Riverside.
a. Select level of service desired.
Executive Summary
The Cove Commission was created over twenty years ago in an effort to create a viable fire
department, with sufficient personnel and equipment, within the Cove Communities of Palm
Desert, Rancho Mirage, and Indian Wells. These three cities, which joined forces to provide
improved fire suppression services within their region, have evolved to a point that each one
can fund its own substantial fire department.
The City of Indian Wells has exercised its right to opt out of this partnership because it feels
the current funding formula is not equitable. Since the existing joint powers agreement (JPA)
does not allow a unilateral formula revision, the only option a member city has is to withdraw
from the Cove Commission. In an effort to maintain this relationship, the Cove Commission
requested at its April 28, 2004, meeting that each member cities' Council consider various
funding proposals that can ensure continued success in this joint endeavor.
Discussion
In 1980, the residents of the cities of Palm Desert, Rancho Mirage, and Indian Wells passed a
fire suppression benefit assessment to provide expanded paramedic and fire protection
services within the region. Up to this point in time, only basic and limited levels of emergency
services were provided to the local citizenry, numbering fewer than 20,000 permanent
residents. There were two fire stations for the three cities, with one person and one engine on
Cove Commission Funding Formulas
May 13, 2004
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duty at each station. A private ambulance company based in Palm Springs provided
paramedic services. With the passage of the special tax, came the method of implementation
and administration. Issues to be faced included a fair method of cost distribution, the purchase
of equipment, facilities construction, and personnel matters. The three cities shared a
geographic commonality and philosophy of 'the best service for the least cost', resulting in an
innovative method to implement these safety services.
Under a unique arrangement, the three cities joined in 1981 and formed the "Cove
Communities Fire Commission", which is known today as the "Cove Commission". The Cove
Commission is comprised of six elected city councilmembers, two from each participating city.
The monthly meetings are hosted and staffed by one of the cities annually, with the terms
rotating at the end of each fiscal year. Programs and various projects are reviewed at
Commission meetings, including fire, law enforcement, and Josyln Senior Center activities.
However, each city currently maintains separate law enforcement contracts with the Riverside
County Sheriffs Department, while having a single contract with the County for fire
suppression services. The three Cove city managers and fire/police personnel report and
advise the Commission.
As stated, Fire and Paramedic service is part of the Cove Commission contract with the
County of Riverside (California Department of Forestry). Through this agreement the following
level of personnel and equipment currently service the three cities within six fire stations:
STATION (CITY)
Station No. 33 (PD)
PERSONNEL (PER SHIFT)
9
EQUIPMENT
1 FE; 1 LT; 1 MU
Station No. 67 (PD-Mesa View)
5
1 FE; 1 MU
Station No. 71 (North PD)
5
1FE; 1 MU
Station No. 50 (South RM)
3
1 FE
Station No. 69 (North RM)
5
1 FE; 1 MU
Station No. 55 (IW)
5
1 FE; 1 MU
FE-F�re Engrne (Three Fire Dept. Personnel):
LT=Ladder Truck (Four Fire Dept. Personnel):
MU=Medic Unit (Two Fire Dept. Personnel):
1 Captarn or 1 Engineer and 2 Firefighters
1 Captain, 1 Engineer, and 2 Firefighters
1 Engineer and 9 Firefighter or 2 Firefighters
Along with this staffing scenario, the Fire Marshal's office includes a Battalion Chief, Fire
Safety Specialist, five Fire System Inspectors, and clerical support. - The current Cove service
level also includes a Fire Captain/Paramedic who is responsible for the coordination of the
paramedic program and supervises the Public Access Defibrillator Program. Additional
administrative support is County funded and provided by an Assistant Chief, two Battalion
Chiefs, and an office assistant.
The current Cove Commission contract is distributed between the three participating cities
based on their individual assessed valuation. The fire department's requested FY 2004/2005
Cove budget is $12,716,805. Under the current formula, the cost distribution is as follows:
CITY COVE FORMULA %
Palm Desert
52.19776%
COVE FORMULA COST
Rancho Mirage
Indian Wells
Totals
27.42836%
20.37388%
100%
$6,637,887
$3,488,011
$2,590,907
$12,716,805
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Cove Commission Funding Formulas
May 13, 2004
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The City of Indian Wells exercised its right to opt out of this joint partnership because they feel
the current formula is not equitable. Since the current joint powers agreement (JPA) does not
allow a unilateral formula revision, the only option a member city has is to withdraw from the
Cove Commission. Under the existing contract with the County, the agreement shall expire on
June 30, 2004, and continue an annual term thereafter, unless a city provides a written notice
of cancellation one year before the expiration term. However, staff believes that the County
would be amicable in enacting separate contracts under a similar agreement.
The requested fire department budget for FY 2004/2005 represents a 14% increase or
$1,572,163 over the current budget. At the March Cove Commission meeting, the
Commission directed the City Managers to discuss options for reducing the budget without
affecting the level of service. After reviewing several alternatives, the City Managers returned
to the Cove Commission at it's April meeting with a proposed reduction of $1,865,624. The
main feature of this reduction was the decreasing of staffing on the fire engine from three to
two firefighters.
At the April 28, 2004, Cove Commission meeting, Commission members unanimously agreed
to present this matter to their respective City Councils for further discussion and possible
direction. Therefore, the Palm Desert City Council needs to consider the following:
1. Provide an equitable distribution of the Cove Commission formula and choose the more
favorable of two funding formulas, assuming that the member cities reach an
agreement. To date, the Cove Commission has not agreed upon a certain funding
formula to distribute these costs. As the FY 2004/2005 budget represents a 14%
increase of total costs, the Commission directed the Cove Technical Advisory
Committee (TAC) to return with some reduced cost scenarios. These two scenarios
are based upon a reduced budget of $10,851,181 that includes a reassignment and/or
reduction of fire personnel, including a reduction from three to two firefighters per
engine. Please note that the County may contest this reduction based upon a condition
of the existing Cove Commission agreement, stating that a city shall provide 120 days
written notice of any employee reduction.
For over eighteen years, the City of Palm Desert has operated under two fire fighters
per engine and only recently switched to a three -person response. However, staff
maintains that there is sufficient staffing to respond to fires within the City under the two
firefighters per engine scenario. Along with a two -person engine, a ladder truck (four
person) and medic unit (two person) can also respond, for a total minimum on scene
presence at any time of eight firefighters.
The proposed alternate funding formulas for a reduced budget are as follows:
a. Allocation of Bud. et Based on a Pro•ortional Use Formula Per Call Basis
CITY
Palm Desert
Rancho Mirage
Indian Wells
COVE FORMULA % COVE FORMULA COST
54.86%
29.86%
5,952,730
3,240,188
15.28%
Totals
100%
1,658,263
$10;851,181
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Cove Commission Funding Formulas
May 13, 2004
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b. Allocation of Bud et Based on DirectBillin• Per Station Costs
COVE FORMULA % COVE FORMULA COST
CITY
Palm Desert
•
53.86%
5,844,778
Rancho Mirage
Indian Wells
Totals
27.95%
18.19%
3,032,522
1,973,882
100%
$10,851,181
The advantage of remaining in the JPA is that fire services would be provided under a
single contract resulting in internal economies of scale because administration costs,
fire suppression, paramedics, and fire marshal activities are shared by the member
cities. The fire department would operate on an expanded regional level without
consideration of city boundaries. The disadvantage under this scenario is that if two
member cities wish to alter their service level to create better operational efficiency or
budget reductions, the remaining city would be bound by their action, even if it did not
desire to follow such action.
2. Remove itself from the Cove JPA and negotiate a new service level with Riverside
County. This action would not necessarily equate to a dissolution of the Cove
Commission, as it could still meet regularly to .discuss public safety issues of regional
significance. The member cities would just maintain separate contracts, as currently is
accomplished with the Riverside County Sheriff's Department. The advantage of this
action would be that each city can develop a contract representing the service level it
considers both affordable and desirable. The disadvantage under thisscenario is in
regards to paramedic and ambulance services, as a city may choose not to allow such
units to respond outside its boundaries. However, the Fire Department indicated that
they would abide by each city's policy regarding such services, but would not restrict
fire personnel/equipment from responding to fire suppression on a regional level.
Once all the Cove Commission member cities' Councils have deliberated and recommend
action in this matter, the Cove TAC will report such action to the Commission for additional
discussion and direction. Staff will return this item to the City Council for further consideration,
once the Commission makes a commitment regarding this issue.
Prepared
Stephen . Aryan
Assistant to the City M. ager
Approved By:
Carlos L. Q t'ega
City Manager
Reviewed By:
Paul Gibson
Director of Finance
G:\CityMgr\Stephen Aryan\Word Data\Cove Formula Agenda Item.doc
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Cove Fire Services
Contract Fire Costs for Fiscal Year 2004/05
A. ALLOCATION OF BUDGET BASED ON PROPORTIONAL USE FORMULA
Operating Category
Station Cost (1) & (4)
Fire Marshal (2) & (5)
Truck Company (6)
Administration (3)
TOTALS
PERCENTAGES BASED ON
REVISED PROPORTIONAL USE FORMULA
FY 04-05
Budget
$ 8,675,720
479,266
1,288,195
408,000
$ 10,851,181
Rancho
Mirage
Share
2,691,336 $
84,982
327,870
136,000
Palm
Desert
Share
4,722,414
380,047
699,519
150,750
Indian
Wells
Share
1,261,970
14,237
260,806
121,250
TOTALS
8,675,720
479,266
1,288,195
408,000
3,240,188 5,952,730 1,658,263 10,851,181
29.86%
54.86%
15.28% 100.00%
B. ALLOCATION OF BUDGET BASED ON DIRECT BILLING WITH EACH CITY PER STATION COSTS
Operating Category
Station Cost (1) & (4)
Fire Marshal (2) & (5)
Truck Company (6)
Administration (3)
TOTALS
PERCENTAGES BASED ON
DIRECT BILLING WITH EACH CITY
0Y 04-05
Budget
8,675,720
479,266
1,288,195
408,000
$ 10,851,181
Rancho
Mirage
Share
2,483,670
84,982
327,870
136,000
Palm
Desert
Share
4,614,462
380,047
699,519
150,750
Indian
Wells
Share
1,577,589
14,237
260,806
121,250
TOTALS
8,675,721
479,266
1,288,195
408,000
3,032,522 5,844,778 1,973,882 10,851,182
27.95%
53.86%
18.19%
100.00%0
C. ALLOCATION OF BUDGET BASED ON ORIGINAL COVE FORMULA
n e
Irl
FY 04-05
Budget
Cove Formula
Rancho
Mirage
Share
27.42836%
3,488,011
Palm
Desert
Share
Indian
Wells
Share TOTALS
52.19776% 20.37388% 100.00000%
6,637,887 2,590,907 12,716,805
D. VARIANCE COMPARISON BETWEEN PROPORTIONAL USE, DIRECT BILLING AND ORIGINAL COVE
Proportional Use
Direct Billing
Rancho
Mirage
Share
Palm
Desert
Share
Indian
Wells
Share
TOTALS
(247,823) (685,158) (932,644) (1,865,624)
(455,489) (793,110) (617,025) (1,865,623)
Footnotes
(1) Equals $9,820,381 (Station cost) - 1,288,195 (Truck Company) + 143,534 (Paramedic Coordinator)
(2) Includes Fire Marshal, Fire Safety Specialist, Fire Systems Inspectors and Office Assistant
(3) Includes $238,432 (Operating Expenses) + $81,068 (AED Coordinator) + $88,500 (Fire Engine Use Agreement).
Operating expenses and AED Coordinator are shared equally; Fire Engine Use Agreement is allocated based on
one engine per station.
(4) Station Cost is allocated based on actual responses by incident location during 2003 using three categories:
Fires; Medical Aid, Rescues & Traffic Collisions; and All Others. Each of the three categories is allocated pro
rata to the three Cities. Calls outside the three Cities are allocated equally (1,3, 1/3, 1/3) on the theory that
one City should not be penalized because more of the incident locations in the Cove are in that City.
For example, in 2003 Rancho Mirage had 56 calls for Fires and it assumed 1/3 of the 188 calls outside of
the three Cities out of a total of 371 for an overall share of 31.986%. This same methodology was used for the
other two categories of calls in 2003. As a result, the formula for each City has 3 components: Fires in 2003;
Medical Aid, Rescues & Traffic Collisions in 2003 and All Others in 2003. Each component generates a fraction
of 100%. All components added together total 3.
Adding all 3 percentages together for each City generates the following numbers, percentages and dollar
share of Station Cost:
1.632975807 54.4325269% $ 4,722,414 Palm Desert
0.930644116 31.0214705% 2,691,336 Rancho Mirage
0.436380077 14.5460026% 1,261,970 Indian Wells
3.000000000 100% $ 8,675,720
(5) Cost is allocated based on Fire Marshal activities by City - actual for 2003 per January 15, 2004 memo
to City Manager and Director of Management Services.
(6) 50% of the cost is shared equally. The remaining 50% is allocated based on responses for 2003
per February 12, 2004 memo from Ignacio Otero to TAC Committee.
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A COOPERATIVE AGREEMENT TO PROVIDE FIRE PROTECTION,
FIRE PREVENTION, RESCUE, AND MEDICAL AID SERVICES FOR
THE COVE COMMUNITY SERVICES COMMISSION
THIS AGREEMENT, made and entered into this 2{
day of , byand between the County of
Riverside, �--
hereinafter called "Count
y", y", and the Cove Community
Services Commission, hereinafter called "Commission", whereby
it is agreed as follows:
I
PURPOSE
The purpose of the Agreement is to arrange for the
County, through its Cooperative Agreement with the State of
California, to provide Commission with fire protection, fire
prevention, rescue, and medical aid services, hereinafter
called fire protection services. Such Agreement will be
mutually advantageous to Commission and County in that it will
provide a unified, cooperative, integrated, and effective fire
protection, rescue, and medical aid system to protect lives,
property, and natural resources.
II
COUNTY IN CHARGE
A. The County Fire Chief shall represent both
parties during the period of this Agreement and that Officer
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 protection services as deemed
necessary to satisfy the needs of both County and Commission,
except upon those lands wherein other agencies of government
have responsibility for the same or similar fire protection
services.
B. The County will be allowed flexibility in the
assignment of available personnel and equipment in order to
provide the fire protection services, rescue and medical aid
services as agreed upon herein.
C. In the event the Agreement between the County
of Riverside and the State of California is not in effect or
is terminated by either the County or State for any reason,
then the duty of the County to provide fire protection
services, rescue or medical aid services as contemplated
herein shall cease.
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D. In the event any Commission Member City
activates its Emergency Operations Center (EOC) for emergency
purposes, the County will make available a Fire Department
representative.
E. The County provides fire personnel through its
contract with the California Department of Forestry and Fire
Protection and if during the term of this agreement City shall
desire a reduction in STATE civil service employees assigned
to the organization provided for in Exhibit "A", City shall
provide one hundred twenty (120) days written notice of the
requested reduction. Proper notification shall include the
following (1) the total amount of reduction; (2) the firm
effective date of the reduction; and (3) the number of
employees, by classification, affected by a reduction. If such
notice is not provided, City shall reimburse County for
relocation costs incurred by STATE because of the reduction.
Personnel reductions resulting solely due to an increase in.
STATE employee salaries or STATE expenses occurring after
signing this agreement and set forth in Exhibit "A" to this
agreement shall not be subject to relocation expense
reimbursement by City.
III
PAYMENT FOR SERVICES
A. The Commission has appropriated a sum of money
to pay for fire protection services within the area of
responsibility of the Commission for the period from the date
of execution of this Agreement to June 30, 2000; to that sum
so appropriated, the County shall allow a credit to Commission
in the estimated amount as represents structural fire taxes
equal to $1,000,000 plus 70 percent of the structural fire
taxes in excess of $1,000,000 collected by County within the
areas of responsibility of the Commission. The amount of this
credit shall be as determined by the County Auditor -Controller
prior to the County's billing of its claim for services with
Commission as approved herein. The claim filed by County with
Commission shall be those expenses in excess of the credit
allowed to Commission.
B.The County shall make a claim to the Commission
for the actual cost of contracted services as shown on Exhibit
"A" during each of the, following periods: (1) July 1 through
September 31, claim in October; (2) October 1 through December
31, claim in January; (3) January 1 through March 31, claim
in April; and (4) April 1 through June 30, claim in April for
the estimated cost of services, with final reconciliation to
actual costs resulting in an additional claim or refund to
Commission, in June. Commission shall pay each claim within
fifteen (15) days after receipt thereof.
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C. Any change of the salaries or expenses set
forth in said Exhibit "A" made necessary by action of the
Legislature or any other public agency with authority to
direct changes in the level of salaries or expenses, shall be
paid from the funds represented therein or as said Exhibit
"A". There shall be no obligation on the part of the
Commission to expend or appropriate any sum in excess of the
total of Exhibit "A" which exceeds the appropriation of the
Commission for the purposes of the Agreement. If within
thirty (30) days after notice in writing from the County to
the Commission that the actual cost of maintaining the
services specified in Exhibit "A" as a result of Legislative
or other action has failed to agree to make available the
necessary additional funds, the County shall have the right to
reduce said services by a like amount and shall promptly
notify the Commission specifying the services to be reduced.
If Commission desires to add funds to the total included
herein to cover the cost of increased salaries or services,.
such increase shall be accomplished by an amendment to this
Agreement approved by the parties hereto.
IV
HOLDING OVER
A. The initial term of this Agreement shall be
from July 1, 1999 to June 30, 2004. The term of this
Agreement shall be a one (1) year term thereafter. Either
party to this Agreement may terminate this Agreement by
providing a•written notice of termination to the other party
hereto one year prior to the expiration of the term hereof.
In no event shall this Agreement be terminated by either party
prior to June 30, 2000. If no written notice of termination
is received by either party, this Agreement shall be
automatically renewed at the same level of service, but at the
level of expense being incurred in the new time period by the
County, and otherwise on the same terms and conditions herein
specified, so far as applicable until:
(1) A new Agreement is fully executed, or
(2) Termination of the Agreement following
one year prior written notice of
termination, or
(3) New Exhibit "A" is mutually agreed to by
and between the parties.
This Agreement may be terminated by mutual consent
of the parties at any time after June 30, 2000.
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V
COOPERATIVE OPERATIONS
All fire protection, rescue, and medical aid work
contemplated under this Agreement shall be done by both
parties to this Agreement working as one unit; therefore,
personnel and equipment, regardless of whether they are
included in Exhibit "A" may be temporarily dispatched
elsewhere from time to time for mutual aid.
VI
MUTUAL AID
When rendering mutual aid or assistance as
authorized in Section 13050 and 13054, Health and Safety Code,
the County may demand payment of charges and seek
reimbursement of Commission costs for personnel as funded
herein, under authority given by Section 13051 and 13054,
Health and Safety Code. In seeking such reimbursement County
shall represent Commission in following the procedures set
forth in Section 13052, Health and Safety Code. Any recovery
of Commission costs, less collection expenses, shall be
credited to Commission.
VII
PROPERTY ACCOUNTING
All personal property provided by Commission and by
the County for the purpose of providing fire protection and
rescue services under the terms of this Agreement shall be
marked and accounted for by the County Fire Chief in such a
manner as to conform to the standard operating procedure
established by the County Fire Department for the segregation,
care, and use of the respective property of each.
VIII
SERVICES BY COUNTY
The "organization" to be provided by County and the
estimated cost of services to be performed by said
"organization", and all related costs, are set forth in
Exhibit "A".
A. All related expenses borne directly by the
County and to be reimbursed by the Commission shall be shown
separately.
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B. The Commission agrees to pay the actual cost of
salaries, plus retirement and all other employee benefits, for
those personnel employed in accordance with Exhibit "A". The
budget shall be based on a maximum salary plus all benefits.
C. Reimbursement to the County may be paid from any
Commission funds budgeted without regard to category and, if
necessary, from any contingency item.
IX
LIABILITY
A. County shall defend, indemnify and hold
Commission harmless from all loss, costs or expenses caused by
the negligent or wrongful act or omission of County officers,
agents and employees occurring in the performance of this
Agreement between the parties hereto including Y2K compliance,
to the extent that such liability is imposed on Commission by
the provisions of Section 895.2 of the Government Code of the
State of California.
B. Commission shall defend, indemnify and hold
County harmless from all loss, costs or expenses caused by the
negligent or wrongful act or omission of Commission officers,
agents and employees occurring in the performance of this
Agreement between the parties hereto to the extent that such
liability is imposed on the County by the provisions of
Section 895.2 of the Government Code of the State of
California.
X
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
COMMISSION
County Fire Chief
210 W. San Jacinto Ave.
Perris, CA 92570
COVE COMMUNITY SERVICES
City of Indian Wells
44-950 Eldorado Drive
Indian Wells, CA 92210
Provisions of this section do not preclude any notices being
delivered in person to the addresses shown above.
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ENTIRE CONTRACT
This Agreement contains the whole contract between..__.
the parties. It may be terminated at any time or any provision
herein contained may be amended or modified upon the' mutual
written consent of the parties hereto.
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: APR 0 4 2000
APPROVED AS TO FORM
By
ATTEST:
By
Title
ATTEST:
GERALD A. MALONEY
Clerk of the Board
ByQeLOQL
ZS
Deputy
(SEAL)
COVE COMMUNITY SERVICES
COMMISSION
By
Title
Facsimile Signature
affixed by Clerk per
• COUNTY OF RIVERSI] c 25103 Gay. t :
- By
VICE Chairman, Board of Supervisors
.lames A. Venable
F:\PROPERTY\GBLANKEN\AGMT\FIRE`
FORM APPROVED
COUNTY COUNSEL
MAR 21 2000
BY /• e
1-thito