Loading...
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 Page2of4 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 G:\CityMgr\Stephen Aryan\Word Data\Cove Formula Agenda Item.doc Cove Commission Funding Formulas May 13, 2004 Page3of4 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 G:\CityMgr\Stephen Aryan\Word Data\Cove Formula Agenda Item.doc Cove Commission Funding Formulas May 13, 2004 Page 4of4 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 5 4.0 ct CC as et i++ O Q z U:N 4? 1 03 4-W un )L v U^ it Contract Fire Services Costs D, N ON F 0 00 v. m O▪ " 7 0 0 ▪ • 01 0 0 01 .1 g 0 of — N ‘0... n 00 00 O 00 V) N N b 00 40 O rj M n 00 e 45 R 0 N 10 so 00 0 M e e 4n (n VI O • d N b Allocation of Fire Services by City Based on Cove Formula 0 8 0 0oo NO NO 00 N N 00 s • c N v . N VN N G W � a W 14 e 0 c0 NO NO 00 tr en Cs 00 es en y NN N sg '• a O 0 8 e 0 e co so oo oo 00 ON N M ss N 00 N .14 8 0 8 CA 01 00 Co eti. Lel Q0 CS .n • v1 p NN CA co NO en coo ch. N (+i O V NO V ON' ,00 r 0'0 00 h N [ M O O0oo O000 O 0 (0 00 06 Op b C` O CV 10 (+ N e e W se-1 rn so. 7 0 v1 pp ^'A Nkr, N O u O NO o d. R N 0 N rn 0 rn (f N 00 O — h N 00 8 v e N:Is'O pO M 00 S O so V _ sr,0 V N O 8 8 en 0 CA O en1- C4 01 v1 O O+!- 00 0000 0 CV O 0 8 r(O O,O O 0O SO V co q V^ r Ow 8 .-, M m q N FJ 00 000 VN1 N M N C' 0 41 04 00 CI U 0 0�p 0 0 ., n 0 (/1 M 0 N. N N. N NCNI NO M-ND Wtn i 0 4.7 p O N N +00 �pp 80 N O N. Ot O N ts-OI CON 000 0 N vNi N M Q .. 8 pO O 8 Allocation of Fire Services by City M01 WI C4 00 ('0 N (+1 00 0 m 00 Q. H PIP M NO 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. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 2 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 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. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25, 26 27 28 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