CITY COUNCIL: Fire Protection Services Contract

TO: MAYOR McCLOUD AND COUNCIL MEMBERS

THROUGH: RICH GUILLEN, CITY ADMINISTRATOR

FROM: GEORGE E. RAWSON, DIRECTOR OF PUBLIC SAFETY

DATE: MARCH 12, 2009

SUBJECT: RECEIVE REPORT AND PROVIDE POLICY DIRECTION TO STAFF REGARDING CONTRACTING FIRE PROTECTION SERVICES TO THE CITY OF MONTEREY
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I. RECOMMENDATION:
Receive report and provide policy direction regarding contracting fire protection services to the City of Monterey.

II. BACKGROUND:
At the December 2, 2008, City Council meeting, the Council considered a report from the Director of Public Safety regarding options for future management of the Carmel Fire Department. After discussing that report, Council directed staff to continue to work with the City of Monterey to develop a contract for future Council consideration. Since that time, staff from both cities have worked to develop a fire service contract between the two cities, similar to the one developed between the cities of Monterey and Pacific Grove.

In addition, Carmel and Monterey staffers met and conferred with their respective firefighters’ associations regarding the impact on represented fire services employees. Those meetings have resulted in a proposed labor agreement between the two cities and the respective firefighters’ associations. The agreement has been approved by both the Carmel and Monterey firefighters’ associations.

III. STAFF REVIEW:
The Monterey contract model proposes that all full-time Carmel Fire Department employees would become Monterey employees, subject to satisfying a pre-employment medical exam. In return, Monterey will administer all fire protection services, subject to a services contract that could be terminated by either party with 12 months’ written notice. Carmel would retain ownership and fiscal responsibility for the fire station, its equipment, and vehicles. The City also would be responsible for the purchase and ongoing maintenance of the vehicles and equipment.

The following is a list of business points related to the proposed agreement with the City of Monterey:

􀂾 The Monterey contract model is less expensive than if the City had its own fire
department. Refer to Fiscal Impact (attached Exhibit “A”) for more details.

􀂾 The proposed cost share formula takes into consideration four factors: 1) City population, 2) Incidents, 3) Assessed Valuation, and 4) Minimum Daily Line Staff which, in the case of Carmel, consists of nine full-time firefighters, three on each shift.

􀂾 Monterey Assistant Chief Andrew Miller will oversee the daily operations of the Carmel fire station.

􀂾 This model upgrades fire protection to Carmel by enhancing operational and staff capacity. The on-duty staffing available to Carmel on a 24/7 basis expands from three firefighters to a system-wide 18 firefighters. These firefighters would be trained in Carmel, to make them thoroughly familiar with the City.

􀂾 The available pool of full-time firefighters expands from nine to 70. These firefighters would be trained in Carmel to make them thoroughly familiar with the City. Response times of approximately three minutes from the Carmel Fire station are preserved.

􀂾 Fire apparatus inventory increases from two engines to 11 engines, two ladder trucks, one heavy rescue, fire boat and breathing air support unit.

􀂾 Duty Chiefs are fully credentialed. They will be available 24/7, as part of the systemwide services. The interrelationships created between Carmel and Monterey fire personnel are already well-established, as evidenced by recent joint Carmel-Monterey training sessions.

􀂾 The services of a Fire Marshal, Deputy Fire Marshal, and Fire Inspector are included. Carmel’s current contract Fire Marshal may be used by the City of Monterey to perform specialized contract services related to fire protection systems.

􀂾 Operational readiness is improved, due to better joint training programs that are guided by common operational and equipment procedures. Carmel firefighters would have full access to a well-managed, progressive training program to maintain their skills and abilities; physical fitness standards will be maintained and monitored.

􀂾 Carmel-by-the-Sea firefighters will initially remain at the Carmel fire station. Beginning in 2011, firefighters may annually bid for their shift and station assignment based on seniority.

􀂾 Eliminates duplication of services, because Carmel will no longer be responsible for recruitment, hiring, labor relations, discipline, payroll, workers’ compensation, and related responsibilities for managing fire department personnel, resulting in additional cost savings.

􀂾 Potential for future improved Insurance Services Office (ISO) classification due to increased staffing and equipment capability.

􀂾 Contract contains provision for Carmel to opt out in the future if Carmel wants a different model for fire administration.

􀂾 The proposed agreement offers long-term sustainability, the opportunity to reduce future costs if other fire departments opt in and includes language for alternate governance if there is mutual interest in creating a Joint Powers Authority.

The proposed contract meets the minimum National Fire Protection Association standards for minimum fire safety staffing and as required for firefighter safety (2 in/2 out provision). It also ensures that the Carmel Police Department will be the first point of contact for 911 firerelated calls, and that the Monterey County fire communications center will continue to retain dispatching responsibility for Carmel firefighters.

The Carmel firefighters have expressed their support of contracting with Monterey, as it assures their shifts will be continuously staffed, properly supervised, and there will be ample and quick backup resources, if needed.

IV. FISCAL IMPACT:
For FY 09-10, the cost for the fire department, excluding the City’s Regional Ambulance Subsidy, totals $1,850,000. This figure includes the addition of the three new firefighters.

The projected cost for a contract with Monterey for FY 09-10 is $2,076,000. This partnership with Monterey will cost $226,000 more than the City’s current projected cost for the fire department.

In order to achieve a comparable level of service and staffing, however, Carmel would have to create a stand-alone department, which would include duty chiefs and a fire chief. The projected cost to the City for a stand-alone fire department for FY 09-10 is $2,723,000.

By choosing to partner with Monterey rather than creating a stand alone department, the City would save $647,000 in the first year.

For FY 10-11, the projected cost for year two of a contract with Monterey is $2,625,000, while the cost for a stand alone fire department is $2,766,000. By choosing to partner with Monterey rather than creating a stand alone department, the City would save $141,000 in FY 10-11.

Attached Exhibit “A” is a cost breakdown for FY 09-10 and FY 10-11. The significant difference between the FY 09-10 and FY 10-11 fiscal estimates is due to Monterey waiving some of the projected annual costs for the initial budget period (FY 09-10), including a portion of the administrative overhead fee and Carmel’s pro-rated cost share of the aerial ladder truck and relief Firefighter staffing.

V. SUMMARY:

The proposed agreement to contract fire services with Monterey offers a total fire safety1 solution as outlined in the previous bullets under staff review. The additional depth of resources and personnel, combined with standardizing operations under one Fire Chief, ensures long term sustainability. The cost efficiencies associated with eliminating duplicate training, personnel, and administrative services should prove to be a better method to manage public funds.

Staff is prepared to present a contract proposal and related agreements at the next regularly scheduled City Council meeting for discussion and approval. A proposed time line is as follows:

April 7, 2009: City Council considers action for approving the proposed Monterey contract.

June 30, 2009: Due date for Monterey to complete all contract preparatory actions

July 1, 2009: Implementation of contract

1 Total fire safety consists of a wide range of components seeking to reduce the loss of life and property due to fire, medical, and other emergencies.