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HomeMy WebLinkAbout1996-05-14 City Council (6)City of Palo Alto City Manager’s Report 3 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:FIRE AGENDA DATE:MAY 14, 1996 CMR:257:96 ATTENTION:POLICY AND SERVICES COMMITTEE SUBJECT:FINAL REPORT FROM RALPH ANDERSEN AND ASSOCIATES REGARDING A NORTH COUNTY FIRE SERVICES CONSOLIDATION STUDY REQUEST The purpose of this report is to presem to Council the "Final Report - North Santa Clara County Fire Services Consolidation Study" regarding the feasibility of consolidating fire protection services in the North Santa Clara County jurisdictions of Palo Alto, Mountain View, Los Altos and Los Altos Hills. Staff requests that Council approve the staff recommendation. RECOMMENDATIONS Staff recommends that Council: Authorize the City Manager or her designee to cominue to pursue opportunities for functional consolidations and!or mutually beneficial agreements with neighboring jurisdictions as outlined in this report. Staff will return to Council should any opportunities develop. POLICY IMPLICATIONS The content of this study is consistem with existing City policies. EXECUTIVE SUMMARY On April 17, 1995, Council approved funding to conduct a joint fire services consolidation study with the jurisdictions of Mountain View, Los Altos, and Los Altos County Fire Protection District (CMR 201:95). On May 15, 1995, Council approved a Joint Powers Agreemem (JPA) to conduct a North County Fire Services Consolidation Study with the jurisdictions of Mountain View, Los Altos, and Los Altos County Fire Protection District (CMR 246:95). CMR:257:96 Page 1 of 9 The fn’m of Ralph Andersen and Associates has prepared their final report of the North Santa Clara County Fire Services Consolidation Study. The purpose of the study was to determine if some form of combined fire services can provide fire and emergency medical services at a higher level of effectiveness and/or efficiency than is currently provided through the four existing but separate fire jurisdictions. The study criteria established from the cities of Palo Alto and Mountain View included a provision specifying that the outcome should not result in a reduction of services. The study did not evaluate the closure or consolidation of fire station locations. The study provides comprehensive profiles of the organization, staffing, and services currently provided by each agency. The report outlines several organizational alternatives and key issues associated with consolidation of services. The findings and recommendations come in the form of options and alternatives available to the elected bodies of each jurisdiction. To be achievable, each jurisdiction must select the same alternatives, as they are not mutually exclusive options and require the cooperation and agreement from all parties involved. In the findings and recommendations section, the report presents both full and functional consolidation options. Staff review of the alternatives presented in the report finds that there may be opportunities for improved efficiencies and effectiveness in the functional consolidation areas described in the report. The full consolidation option presented within the report would improve the depth of available personnel for multiple responses, improve response times to several locations in each jurisdiction, and provide a single dispatch center with better depth and coverage. However, as proposed, this option would have a negative impact to Palo Alto’s General Fund. Staffing and Service Levels The following tables demonstrate the comparisons of staffing and service levels currently within the four jurisdictions: Los Altos 27,276 540 (39%)839 (61%).05 ,os Altos CFPD 12,000 341 (53%)305 (47%).05 Mountain View 70,100 2,266 (47%)2,585 (53%).07 ’alo Alto 80,000 (1)2,631 (44%)3,363 (56%).07 Total 189,200 (2) 5,778 (44.9%)7,092 (55.1%).07 CMR:257:96 Page 2 of 9 Fire Rescue/EMS Total Calls 3-5 / 1,162 4.06 / 2,512 4.2 / 1,564 3-5 / 2,083 4.17 / 4,851 4.3 / 2,678 CMR:257:96 Page 3 of 9 Fire Suppression First Responder EMT-D Paramedic Engine Company Paramedic Transport Private Paramedic Private Transport Plan Check FPB Inspection Company Inspection Public Education Hazmat Response Team Hazmat Response Vehicle Full Time Training Officer (TO) Additional Duty TO Shift Coordinator Emergency Prep. Coordinator (EPC) Additional Duty EPC X X X x X X x X X X X X X X X x X X X X X X X X X X X X X X X X X X x X X Fire Chief Deputy Fire Chief Fire Marshal Battalion Chief 2 4 1 2 1 3 3 2 1 9 CMR:257:96 Page 4 of 9 EMS Chief Captain Lieutenant Engineer FF/Engineer Firefighter Deputy Fire Marshal Fire Inspector Fire Protection Engineer Emergency Comm. Mgr. Systems Specialist Lead Dispatcher Dispatcher Sr. Admin. Analyst Executive Asst. Office Asst. III Environmental Safety Mgr. Hazmat Specialist Ind. Waste Dis. Spec. OES Coordinator Admin. Secretary Executive Secretary Environmental Coordinator Office Specialist Control Acct. Spec. Hazmat Investigator Program Asst. 9 3 24 15 15 27 2 .5 2 1 1 4 9 1 1 2 1 2 3 1 1 27 3O 46 4 1 1 2 1 1 1 51 3 45 24 73 2 4 2 1 1 4 9 1 1 2 1 3 3 1 1 1 1 2 1 1 .5 CMR:257:96 Page 5 of 9 Full Consolidation Option The full consolidation option proposes to provide all the basic emergency and non- emergency services to each jurisdiction in a consistent and uniform manner. The proposed agency would be organized into three divisions: Operations, Support Services, and Fire Prevention/Hazardous Materials. Because the study did not evaluate station closures or consolidations, and due to the efficient organizational structures of the existing three separate fire agencies, only 5.5 positions were eliminated by the full consolidation option. The study’s full consolidation option is structured as a proposed Joint Powers Agreement. (JPA) with various alternatives for representation, which include: One agency - One vote Voting weighted by number of calls, population, staffing level, or contribution Weighted voting only for key issues (IE. budget, levels of service, etc.) financial The study proposes that the consolidated agency would operate with a proposed budget of $22,354,391 compared to the separate agencies combined budgets of $24,943,819. The agency would be staffed with 249 full time employees (FTE’s) compared with the separate agencies combined total of 254.5 FTE’s. The following table demonstrates the current revenue/expenditures for each agency: LACFPD 1,607,836 Los Altos 2,366,083 (1) Mountain View 8,918,000 (3) Palo Alto 12,052,000 (4) Total 24,943,919 0 18,660 330,000 5,543,750 5,892,410 0 116,276 (2) 0 1,546,709 1,662,976 (1)Does not include costs associated with LACFPD contract. (2)Cost of contract for communications with LACFPD. (3)Net of wastewater cost, plus insurance, vehicle replacement and total cost of communications. (4)Includes cost allocation plan. CMR:257:96 Page 6 of 9 In FY 95/96 Palo Alto’s Fire Department operated on a budget of $12,052,000 (including $1,546,709 of interdepartmental expenses) with revenues of $5,543,750. Because of revenues from the delivery of paramedic services and the Stanford contract, Palo Alto is currently the only agency with significant revenues. In addition, Palo Alto is currently the only agency to utilize a cost allocation plan, to show the actual cost of general fund services provided to the Fire Department by other City departments. This allocated cost is currently charged as an expense to the Fire Department’s budget. The consultant report assumes these services will continue to be provided by one or more of the cities, but does not include those costs in the consolidated agency budget. The report proposes three alternatives for allocation of revenues/expenditures. Currently, the net impact of the Fire Department to the General Fund is approximately $6,508,250, after offsetting revenues of $5,543,750 are considered. Unless those revenues continue to be allocated back to Palo Alto in a full consolidation model, the allocation of expenses to Palo Alto in a consolidated agency, based on the number calls for service, results in an increased cost to the General Fund. In the options in which revenues are allocated back to Palo Alto, the other agencies are fmancially impacted. This has been a key issue to which a solution has not been offered in the consultant study. Functional Consolidation Option The study identified four potential areas for functional consolidation, including: o Paramedics Training Communications Fire Prevention/Hazardous Materials Paramedics As part of the study, the consultant provided an overview of the provision of paramedic services within the North County Service Area. For the past twenty years, Palo Alto has provided paramedic level services within its response area. In FY 94/95 the program operated at a net gain of approximately $60,000 to the General Fund. The City of Mountain View is studying the feasibility of providing paramedic services. The City of Los Altos and the Los Altos County Fire Protection District have expressed interest in looking at opportunities to improve the level of paramedic service currently being provided by the County contractor. The consultant report estimated program costs of approximately $1,161,000 to be divided by the three jurisdictions currently not providing paramedic services, to implement the service in their response areas. Staff believes there is a real opportunity to improve the level of service and increase revenues through cooperative agreements in this specific area. Subsequent to the consultant report, staff has had preliminary discussions on this subject and will return to Council with a report to address this specific option. CMR:257:96 Page 7 of 9 Training None of the three existing agencies has a full-time position dedicated exclusively to the training fimction. The consultant report presents two alternatives to improve the existing condition which includes: Creation of a Training Officer position funded jointly by each agency. Creation of a fully staffed consolidated training agency. While both of these options would improve the coordination and level of training available, increased costs without offsetting revenues would result. Staff believes that this options needs further evaluation and prioritization against other Department and City needs. Communications The consultant report presents a consolidated communications option, which shows potential savings oppommities when discounting the impact on existing dispatch centers. However, staffdoes not support the formation of another dispatch center for Fire/EMS services. The redundancies inherent in such a system are inefficient. The greatest potential for savings would come fi:om a full consolidation of North County Fire, Police, and Public Works Departments. However, that has been tried in the past and was operationally and politically ineffective. Such an effort would require a separate detailed study and require the involvement of more agencies than were involved in this study. Fire Prevention/Hazardous Materials The consultant report presents a consolidated Fire Prevention / Hazardous Materials program which would significantly reduce current service levels. The study did not involve any personnel or workload audit/evaluation. In Mountain View’s program, the positions identified for consolidation allocates a significant amount of time to training and disaster preparedness. The consultant’s alternative did not identify how that workload would be accomplished. Palo Alto does not currently have a position dedicated to providing disaster preparedness oversight or community education. Staff does not see an opportunity for savings through consolidation of this function without a reduction in service level. Conclusions Staff believes that this study has presented information regarding opportunities to obtain regional efficiencies through functional consolidations or contracting of certain .services. Staff believes that with the information presented by the consultant, sufficient expertise exists within the various jurisdictions to continue to refine the potential opportunities. Specifically, opportunities exist to improve paramedic services within the North County Area with increased revenue opportunities. These conclusions are similar to those reached by the jurisdictions of Mountain View, Los Altos, and Los Alto County Fire Protection District as presented in the attached staff reports. The City of Mountain View has directed their staff to look at opportunities for functional consolidations and report back to Council. Action has been taken by the City of Los Altos and the Los Altos County Fire Protection District to CMR:257:96 Page 8 of 9 issue a joint request for proposal to provide contract fire protection services within Los Altos and the District. Next Steps As a result of this study, the City of Los Altos and the Los Altos County Fire Protection District have recently decided to evaluate contracting for fire protection services. A request for proposal has been developed and sent to Palo Alto, Mountain View, and the Santa Clara County Central Fire Protection District. Staff is preparing to respond to this request and will report to Council as opportunities present themselves. The City of Mountain View staff is studying the potential benefits of adding paramedics to their Fire Department. One of the options being considered is their implementing a system of paramedic transport similar to Palo Alto’s current system. If this option is approved by the Mountain View City Council, staff will investigate the opportunity for cooperative agreements to address back-up coverage, training, quality control, and program coordination. Staff would return to Council .with recommendations regarding any such cooperative agreements. FISCAL IMPACT The contract with Ralph Andersen and Associates to conduct the consolidation study was $55,125. Palo Alto’s share was 25%. Mountain View, Los Altos, and the Los Altos County Fire Protection District each contributed equal shares toward the cost of the study. ENVIRONMENTAL ASSESSMENT This project is exempt from CEQA under section 1530 of the CEQA guidelines. ATTACHMENTS Attachment 1: Ralph Anderson & Associates Final Report - North Santa Clara County Fire Services Consolidation Study Executive Summary. (A full copy of this report can be reviewed in the Fire Administration Office, 250 Hamilton Avenue, 6th Floor, Palo Alto, CA 94301) Attachment 2:Study Session Staff Reports of the Cities of Mountain View and Los Altos PREPARED BY: Ruben Grijalva, Fire Chief DEPARTMENT HEAD REVIEW:~ CITY MANAGER APPROVAL: i,~RUBEN " ~ire Chief ~LEM~G City Manager CMR:257:96 Page 9 of 9 Executive Summary ATTACHMENT 1 Executive Summary North Santa Clara County Fire Services Consolidation Study This executive summary provides an overview of the Final Report on the Fire Services Consolidation Study for the North Santa Clara County fire service agencies. The executive summary is brief and is focused upon the major findings and recommendations of the study. The final report document is comprehensive and contains detailed information which should be consulted for more specific data on the study. Back ound, Objectives and Scope The North Santa Clara County fire service providers (City of Los Altos, Los Altos County Fire Protection District, City of Mountain View, and the City of Palo Alto) have together or partially considered the potential for consolidation on several occasions over a long period of time. Recently the agencies formed a joint powers ageement for the purposes of studying the feasibility of consolidation. The agencies developed a comprehensive request for proposal and selected Ralph Andersen & Associates to conduct the study. The primary objective of the Fire Services Consolidation Study was to: ...determine if some form of combined fire services can provide fire and emergency medical services at a higher level of effectiveness and/or efficiency thanis currently provided through the four existing but separate fire jurisdictions. The study also included several subsidiary objectives related to participation by the agencies, analysis of all aspects of consolidation, analysis of costs and benefits of consolidation, and others. Overall, the scope of the study was intended to be comprehensive and to result in a written report presented to each of the agencies upon completion. The study employed an extensive process which included data collection, analyses, and reporting. The data collection process included conducting interviews with a significant percentage of the staff of the three departments, visiting all stations and facilities, and preparing written descriptions of the departments as they currently exist (Chapter II of this final report). It also includes implementation assistance the extent of which is dependent upon the actions of the agencies. In addition, the Page i Executive Summary IIIII study process included participation by a Study Committee made up of members of the four agencies and union representatives from each of the three fire depart- ments. The Committee participated in the study by receiving status briefings, reviewing discussion and draft documents prepared prior to this final report. Alternatives and Critical Issues The primary purpose of the study was to identify and analyze consohdation alternatives including functional consohdation alternatives and to identify critical issues related to consohdation. As is documented in Chapter llI of this report, a conceptual, consolidated fire and emergency medical services agency was developed. The conceptual North County Fire Services Agency would have an administrative section including the Fire Chief, and three divisions: Operations Division -- Headed by an Assistant Fire Chief: --Fire Suppression -- Emergency Medical Services -- HazMat Response -- SLAC. Prevention/HazMat Division -- Headed by a Deputy Fire Chief: Occupancy Inspection Investigation w HazMat Control Public Education. Support Services Division ~ Headed by a Deputy Fire Chief: ~ Administration -- Training - ~ Communications w Public Information ~ Maintenance (Station and Vehicles) -- Emergency Preparedness. The Operations Division would be divided into two battalions with a variety of alternatives available for geographic divisions of the two. Among the benefits of a two battalion structure is the ability to use this organization structure to make distinctions in levels of service (paramedic services in one but not the other, for example). The consolidated organization assumed that no existing stations would be closed and that line staffing would remain unchanged from the current levels. Currently, the three departments have a total of 254.5 full-time equivalent positions. The consolidated department would require a total of 249 positions for a net reduction of 5.5 positions. Page ii Executive Summary Among the governance alternatives available for a consolidated fire service agency is the formation of a joint powers authority to govern it. The structure of the authority could take several forms including the use of one member representative from each of the four agencies with the use of weighted voting on budgetary and some other matters. The Fire Chief would be appointed by and report to the authority’s Board of Directors. In addition to a consolidated fire service agency, the study identified several opportunities for functional consolidation. These opportunities include the consolidation of training, fire prevention, hazardous materials response, paramedic services, and communications. Each of the functional consolidation opportunities, and variations, are discussed in Chapter III of the final report. The scope of the study included the identification of critical issues related to consolidation. During the course of the study several such issues were identified. Those issues included training, hiring standards, management style, apparatus, other alternatives (to the basic consolidation option), and equal benefit (of consolidation). These issues were assessed and reviewed as a part. of the analyses. Findings and Recommendations Chapter IV of the Final Report contains the findings and recommendations related to the analysis of fire service consolidation. The agencies have considered consolidation in the past but have not proceeded because of a variety of issues that were ultimately insurmountable. During this study, the concept of consolidation was supported by the staff of each agency with the provision that consolidation must not result in a reduction in services or service levels and, that consolidation must achieve economies. The full consolidation of fire services using a joint powers authority for governance, would continue existinglevels of service and enhance them (more apparatus and staff available for fire and emergencies, the availability of other services such as paramedic, for example). The consolidated organization structure would provide direct savings by reducing several positions compared to the three department’s current staffing. The estimated costs of the consolidated agency could be further reduced by partially implementing the two battalion stm.cture proposed and, in the future, by taking advantage of fire statio consolidation opportunities. For the base case however, the savings estimated from consolidation is estimated at $449,000. Among the methods available to allocate costs to the agencies from the consolidat- ed department is one based upon calls for service. This method would result in lower costs for Los Altos, the Los Altos County Fire Protection District, and Mountain View. Palo Alto would experience slightly higher costs than it does currently. Page iii Executive Summary The benefits of a consolidated fire service agency to the four jurisdictions include: ¯The ability to provide for response by the closest unit (including ladder trucks and hazmat units); ¯The ability to provide for a greater level of personnel in the first response to a structural alarm; ¯The provision of coordinated training, public education, disaster preparedness and fire prevention; For each of the agencies, advantages and disadvantages of consolidation will vary. The advantages and disadvantages to each agency are shown on the chart below. FULL CONSOLIDATION (JPA) ADVANTAGES/DISADVANTAGES !:~i Agency-i::: ~ " ..... :i;:~ ::i .Advantages, ¯ <i1::.::~ !.;Disadvantages:- Los Altos = Improved response times ¯Improved structure response ¯Newer first line equipment (based on current inventory) ¯ Improved training program Los Altos County FPD - Improved response times Improved structure response = Newer first line equipment (based on current Mountain V~ew Pale Alto inventory) ¯Increased local control = Improved training program ¯Improved response times =Improved structure response =Additional HazMat resources =Improved training program =Potential cost reduction ¯Improved response times =Improved structure response ¯Additional HazMat resources =Improved training program = Potential cost reduction Umited local control Loss of dispatch revenue Potential cost increase Potential impact of binding arbi- tration Potential impact of binding arbi- tration Limited local control Umited local control Potential impact of binding arbi- tration = Umited local control Since Palo Alto provides a ful! paramedic (including transport) service, consolida- tion would facilitate the availability of those services to the other agencies should they desire to receive them. In addition to full consolidation, the report identifies several options for functional consolidation. They include consolidated training, communications, and fire prevention and hazmat response. The costs and benefits associated with each is described in the report. Of the three, consolidated emergency communications and fire prevention/hazmat show the potential for savings. The analysis identified a series of critical issues that would need to be addressed in a consolidated agency. The critical issues included: rank structure (position Page iv Executive Summary classification); seniority; binding arbitration; training, hiring standards; management style; apparatus; and the Stanford contract. With the exception of binding arbitration, all of these issues can be readily resolved although some would require negotiations with employee organizations. Binding arbitration would require negotiations also and in addition, would require the consent of each of the agencies to extend that benefit to all of the consolidated agency’s employees. Summary Consolidation of fire services in North Santa Clara County can provide service benefits to each of the four agencies involved in the study. Given the desire to preserve services and service levels, economies from the consolidation are estimated to be minimal. Full consolidation aside, there appear to be realistic opportunities for fuiactional consolidation that could improve service and re~e economies. Throughout the study of fire service consohdation, the consultants received the full support and participation of the four agencies involved. The Study Committee was helpful in providing their comments and suggestions with regard to various consolidation alternatives and other matters. In particular, we appreciate the cooperation and assistance of the three Fire Chiefs; Ruben Grijalva, Hugh Holden, and Bob Webster. Their review of preliminary materials and critical assessment of the analysis was very.helpful. Much of the analysis in this study was conducted by Joe Hinsberg, Executive Vice President of Ralph Andersen & Associates. In January, Joe died of injuries received in a skiing accident in late December. We believe his ability to work effectively with the staff of the three fire service agencies assisted greatly in making the study process work effectively. Ralph Andersen & Associates Sacramento, California Page v CITY OF MOUNTAIN VIEW MEMORANDUM DATE: TO: FROM: SUBJECT: February 29, 1996 City Council Hugh G. Holden, Fire Chief Martin Bernal, Assistant to the City Manager MARCH 15, 1996 STUDY SESSION: NORTH COUNTY FIRE SERVICES REORGANIZATION STUDY REPORT PURPOSE The purpose of the study session is to review the results of the consultant report on the North Santa Clara County Fire Services Reorganization Study. EXECUTIVE SUMMARY The North Santa Clara County Fire Services Reorganization Study has been prepared by the consulting firm of Ralph Andersen & Associates for the cities of Mountain View, Palo Alto, Los Altos and the Los Altos County Fire Protection District (LACFPD). The purpose of the study is to identify advantages and disadvantages of reorganizing fire and emergency medical services in the North County. The consultant has identified several organizational options in the form of functional consolidation alternatives (the consolidation of specific functions such as communications or paramedic services) and a full consolidation alternative (the consolidation of all basic fire services except paramedic services). Staff has reviewed the alternatives prepared by the consultant and finds that there are opportunities for economic and service level gains in the functional consolida- tion alternatives. In particular, the functional consolidation of Communications/ 9-1-1 Dispatch services, paramedic services and training should be further reviewed. Also, there are opportunities for improved coordination and cooperation with further "boundary drop," automatic aid and other cooperative agreements. Examples include further cooperation in the areas of hazardous materials response and the joint sharing and purchasing of equipment. Staff recommends that these functional consolidation and cooperative opportunities be aggressively pursued. The full consolidation alternative does not create the cost savings for Mountain View (costs actually appear to increase) or service enhancements to balance the disadvantages to Mountain View, including a decrease in the coordination of City Council February 29, 1996 Page 2 services with other City departments and less direct community control of cost and service level issues. In addition, the creation of the consolidated organization would have the potential disadvantage of creating yet another governmental jurisdiction in the North County at a time when it is generally agreed that fewer total governmental jurisdictions should be a goal. It should be noted that while it was recognized at the start of-the study that a fundamental challenge to the potential for a full consolidation was the varied staffing levels, costs and response philosophies between the jurisdictions, it was nonetheless worthwhile to conduct the study as demonstrated by the identified opportunities for fire services functional consolidation and other cooperative arrangements. Moreover, the findings of the study do not preclude contractual service provisions between two or more of the agencies which also has significant potential. BACKGROUND While current Mountain View Fire services are efficiently and effectively provided and enjoy a high resident satisfaction rating, staff viewed it worthwhile to investi- gate the possibility of further economies and/or improved service in concert with the other jurisdictions in the North County area. Based on this view, staff recom- mended (in conjunction with the other North County fire agencies) that a fire services reorganization study be conducted. On April 25, 1995, the City Council authorized staff to enter into an agreement with the jurisdictions of Los Altos, Los Altos County Fire Protection District (LACFPD) and Palo Alto for the purpose of determining if some form of combined fire and emergency medical services could provide services at a higher level of effectiveness and/or efficiency than is currently provided. In addition, Council authorized staff to retain, in concert with the Other agencies, a qualified consultant to assist in the preparation of the study. The consulting firm of Ralph Andersen & Associates was retained by the four jurisdictions to conduct the study. In addition, a North County Fire Services Consolidation Study Committee was formed in order to direct the study and to provide an opportunity for the various stakeholders to participate. The committee consisted of the Fire Chiefs of Los Altos, Mountain View and Palo Alto; a commis- sioner of the LACFPD; representatives of the City Managers of Los Altos and Mountain View; and a representative from each of the three International Association of Fire Fighters (IAFF) locals (Mountain View, Los Altos, Palo Alto). City Council February 29, 1996 Page 3 ANALYSIS Presented below is a brief review of the findings of the report and City staff’s analysis of the preliminary findings. The findings and recommendations section of the consultant report begins on Page 81. The consultant has identified two general reorganization options, including a full consolidation alternative and functional consolidation alternatives (i.e., the consolidation of specific fire functions such as communications or paramedics). A.FULL CONSOLIDATION ALTERNATIVE Jurisdictional Structure The recommended jurisdictional structure for a full consolidation alternative is a joint powers agency agreement (JPA). A voting structure for the Board of Directors would have to be established. The consultant presents various ¯ alternative voting structures, including one agency/one vote and weighted voting (see Pages 90 to 94). Staffing The report identifies a base organization with a staffing of 249. This compares with the current number of authorized positions in the three fire departments of 254.5. Services The consolidated agency would provide basic services to all jurisdictions. These include: Fire suppression; Hazardous materials incident response; Fire prevention and hazardous materials inspection service; New construction plan checks/inspections; and Support services (administration, public information, training, maintenance and emergency preparedness). City Council February 29, 1996 Page 4 Emergency medical services (EMS) would be provided at their current level with paramedic/ambulance services provided by the consolidated agency to Palo Alto only and the other jurisdictions continuing to be served through the County-administered contract with American Medical Response (AMR) West. The report assumes that communications and equipment maintenance services will be contractually provided by one of the jurisdictions rather than building new/separate facilities. In addition, certain support services (i.e., payroll, accounting, budget, risk management and human resources support) would be provided by one or more jurisdictions, tit also assumes initially using existing facilities to house the administrative functions of the new agency at either 1000 Villa Street or at Palo Alto’s Station 2. Fiscal Implications/Cost Allocation The consolidation study identifies fiscal implications on Pages 94 through 106 of the report. Overall, the full consolidation alternative would require a budget of $22,354,593. This compares with current annual expenditures of the three jurisdictions of $24,943,919. The analysis of changes in personnel indicates a potential savings of approximately $449,000; the other savings are realized in operational costs (contract services, supplies and materials, rents and leases, general expense and cost allocation, and internal transfers). The report does not review the fiscal impact on other City services of the proposal, which, in some instances, significantly alters the net fiscal impact on a jurisdiction. The "Matrix of Alternatives" on Page 106 shows the various costs to each jurisdiction based on three different cost and revenue allocation methods. The first allocates costs based on a calls for service (CFS) basis. The second method deletes the costs and revenues associated with the provision of paramedic services in the City of Palo Alto and places these costs and revenues with Palo .&lto (which is the only City that would receive paramedic services under the consolidated agency). The third method deletes the costs and revenues of Palo Alto’s contract to provide fire and EMS services to Stanford University and allocates these costs and revenues to the City of Palo Alto. Staff notes that the consultant’s analysis does not include the ongoing costs of police communications to Mountain View. Under a consolidated agency, Mountain View would need to continue to provide communication services for the Police Department. In the case of Mountain View providing the service to the consolidated agency, the consolidated agency would pay Mountain View for the provision of fire communication services. However, if communica- tions services to the consolidated agency were provided by another jurisdiction, City Council February 29, 1996 Page 5 Mountain View would still need to operate a communications center for the Police Department. The ongoing costs for these two scenarios need to be added to the total cost of consolidation for Mountain View. Staff has refined the cost analysis for Mountain View by developing various scenarios that take into account these costs. When the cost of communications is added into the total ongoing costs for the City, the staff analysis shows that the costs of a full consolidation would actually increase for Mountain View under every cost allocation method and communications provision scenario except where the expenses and revenues of Palo Alto’s contract with Stanford University is attributed to Palo Alto. Under this scenario, Mountain View could accrue an annual savings of $825,000, if Mountain View provides communications services, or $525,000, if Mountain View does not provide communications services (see Attachment A). However, it is unlikely that Palo Alto would accept this allocation method due to an increase in their total cost. It is also important to note that there are additional costs to achieve equipment, uniform and apparatus appearance compatibility that are not included in the consultant’s analysis. Another way t6 illustrate how Mountain View’s current costs compare with the projected costs under the three proposed cost allocation models is to compare costs on a cost-per-call basis. As can be seen from the table below, the current funding levels for each jurisdiction differ when compared on a cost- per-call basis. With a consolidated agency, these costs are equalized and, because Mountain View has a lower cost per cal!, the costs tend to increase for Mountain View. CURRENT VERSUS FULL CONSOLIDATION COST ALLOCATION MODELS *(Costs Shown on a Cost-per-Call Basis) PROPOSED MODELS: Agency Current One Two Three Los Altos $1,736 $1,736 $1,666 $1,475 LACFPD $2,489 $1,736 $1,666 $1,479 Mountain View $1,514 $1,736 $1,666 $1,476 Palo Alto $2,0!1 $1,736 $1,822 $2,037 City Council February 29, 1996 Page 6 Analysis of Consolidation Advantages/Disadvantages to Mountain View The following are the pros and cons identified by staff under the consolidation plan presented by Ralph Andersen & Associates: Pros Potential for improved response times in areas bordering Los Altos and Palo Alto if Mountain View provides communications/dispatch services* Greater resources available for training program* Potential for improved coordination of training, education, disaster preparedness and prevention efforts (*It. should be noted that these advantages may also be achieved through a functional consolidation.) Cons ¯increased costs °Potentia! for increased response times if Mountain View does not provide communications/dispatch services ¯Potential for decreased coordination with other City departments °Reduced local control (service levels, equipment/facilities, identity, budget, etc.) °Creation of additional new governmental organization with separate staff and support services o Additional costs not included in recommended budget (to achieve equipment, uniforms and apparatus compatibility) °Potential impact of binding arbitration (current Palo Alto charter requirement) City Council February 29, 1996 Page 7 On Page 108, Exhibit IV-H of the report, a number of advantages and disadvantages are listed. The following are staff’s comments on these advantages / disadvantages: Improved Structure Fire Response: This listed advantage assumes the consoli- dated agency would send 15 firefighters (Palo Alto’s current response) versus 12 (Mountain View’s current response) to structure fire responses. This may not necessarily be the case. The consolidated agency might also select 12 firefighters as the response to structural fire calls. Mountain View is currently able to meet the same outcome as Palo Alto in terms of safe, timely and effective fire control and rescue. Palo Alto’s response, however, does include a paramedic unit which provides a higher level of service should that service become necessary. Additional Hazardous Materials Response Resources.: This advantage assumes that the consolidated agency would provide two Hazardous Materials Response Teams versus each city fire department having its own team. This structure would not add additional resources as Mountain View and Palo Alto are the only cities who currently provide this service. In addition, Mountain View has mutual aid with Palo Alto for hazardous materials response, thus enjoying the availability of both hazardous materials teams for either city now. Improved Training Program: This is clearly an advantage to the current individual training programs which are managed on a part-time basis by chief officers with other significant responsibilities. Under the full consolidation recommendation, three full-time staff are dedicated to training. However, given the increased cost associated with full consolidation for Mountain View, a less expensive alternative is a functional consOlidation of training between the agencies. B.FUNCTIONAL CONSOLIDATION ALTERNATIVES The consultant study identifies four potential functional consolidation alternatives, including: (1) communications/9-1-1 dispatch, (2) training, (3) paramedics, and (4) fire prevention/hazardous materials coordination (Pages 107 to 115). Staff sees the greatest potential in the first three areas and recommends that further review/analysis of these alternatives be pursued. The study process has also identified additional opportunities for further boundary drop and automatic aid agreements between the participating jurisdictions. Communications: The consolidation of communications services has the potential of saving money and reducing response times (improving City Council February 29, 1996 Page 8 service). From a fire/EMS response services point of view, the greatest financial advantage is realized in the consolidation of both Police and Fire communicationsfor all of the jurisdictions (Mountain View, Palo Alto, Los Altos). By consolidating these communications centers and functions into a single center, savings are accrued and speed of dispatch is maxi- mized, allowing us to enjoy the greatest response time benefit from our automatic aid (boundary drop) agreements which should also be pursued. Training: A consolidated training program would create a fully staffed training agency for Mountain View, Palo Alto and Los Altos. According to the consultant’s report (see table on Page 111), Mountain View could enjoy the benefit of a three-person, full-time, training staff for a $75,000-per-year contribution. This contribution would represent additional funds above what is currently expended by the City. We currently do not have a single full-time training officer. To add a single full-time Battalion Chief assigned to training in the Mountain View Fire Department would cost us approximately $t15,000 per year. Under the proposed functional training. consolidation option, Mountain View would enjoy the benefits of having three full-time personnel (including a Battalion Chief, a Captain and an Engineer) assigned to training for $40,000 less than hiring a single additional Battalion Chief. o ° Paramedics: Mountain View Fire Department has already had prelimi- nary discussions with Palo Alto Fire Department concerning a JPA for paramedic ambulance services. Out of those discussions and our own internal study, it appears as though both Mountain View and Palo Alto would benefit by forming a JPA for paramedic ambulance services. A preliminary plan has been developed, and it appears such a venture would produce sufficient revenues to fully offset costs. At the same time, by joining together in this venture, Mountain View and Palo Alto would enjoy greater availability of ambulances, with faster response times in our combined jurisdictions than are available currently. A complete report specifically on the provision of paramedic services will be presented to Council in the coming months. Fire Prevention/Hazardous Materials Coordination: This alternative would appear to significantly reduce current service levels. Mountain View~s fire prevention function is overseen by a Battalion Chief who also oversees the department’s training program and disaster preparedness function. The consultant report does not identify how these latter two responsibilities would be carried out under this functional consolidation plan. In addition, the staffing allocated under this alternative to the fire City Council February 29, 1996 Page 9 o prevention, investigation and hazardous materials code enforcement functions is insufficient to meet minimal safety requirements. The recommended alternative also dismantles the streamlining already effected in the area of environmental safety permitting programs. Pursuit of this alternative is not recommended. Other Opportunities for Increased Cooperation There are a number of other opportunities for increased cooperation among the North County agencies. In the area of hazardous materials response, Palo Alto’s and Mountain View’s Hazardous Materials Response Teams who already support each other with mutual aid, could conduct joint training exercises. Another example of mutual cooperation is in the area of equipment sharing and purchasing. In fact, there are current discussions regarding Mountain View and Palo Alto sharing a reserve ladder truck. C.OTHER ISSUES The consultants identify various critical issues that would need to be addressed if the full consolidation alternative was pursued further, including resolving issues related to rank structure, seniority, binding arbitration, training, hiring standards, management style and apparatus (see Pages 115 through 117 of the consultant report). In addition, as noted above, the fiscal impacts vary, depending on how costs are. allocated to each jurisdiction, for Palo Alto’s paramedic program and the Stanford contract, and the provision of communications services. CONCLUSION The consolidation study report provides important information on the relative advantages and disadvantages of various techniques for better coordinating/ consolidating services of the Mountain View Fire Department with those of Palo Alto, Los Altos and the LACFPD. Based on the report findings, the functional consolidation options and further boundary drop cooperative agreements appear to be worthy of further analysis, particularly functional consolidation in the areas of paramedics, training and communications. In terms of the full consolidation alternative, there do not appear to be significant service level and/or fiscal advantages to Mountain View at this time. Moreover, the only cost allocation model that provides a cost savings to City Council February 29, 1996 Page 10 Mountain View may not be acceptable to Palo Alto. It is possible that functional consolidation success could increase the possibility of a full consolidation at a later date. Nonetheless, contractual alternatives such as Los Altos and LACFPD contracting with Mountain View or Palo Alto are also significant potential alternatives. After discussion at the study session, staff will schedule this report for formal action at an upcoming Council meeting. Prepared by: olden Mart~n Bernal Assistant to the City Manager Approved by: Nadine P. Levin Assistant City Manager Kevin ~ City-Manager HGH-MB/CAM/602-2-5-96M/E± Attachment ATTACHMENT A Model 1 Fiscal Impacts Based on Calls for Service Cost Allocation Scenario Mtn. View provides communications to consolidated agency Mtn. View does not provide communications to consolidated agency Current Annual Costs including Communications Costs $8,918,000 $8,918,000 Consolidated Agency Costs Plus On-going Communica- tions Costs $9,360,000 $9,660,000 Difference Between Current and Consolidated $442,000 increase $742,000increase Notes: (a) The on-going cost to Mountain View for providing communications services would be $1,235,000 armually. (b) The difference between Mountain View providing and not providing communication services is $300,000 in revenues which would be received from the consolidated agency. Page A -1 Model 2 Fiscal Impacts Based on Paramedic Services Allocated to Palo Alto Scenario Mtn. View provides communications to consolidated agency Mtn. View does not provide communications to consolidated agency Current Annual Costs including Communications Costs $8,918,000 $8,918,000 Consolidated Agency Costs PlusOn-going Communica- tions Costs $9,000,000 $9,300,000 Difference Between Current and Consolidated $82,000 increase $382,000increase Notes: (a) The on-going cost to Mountain View for providing communications services would be $1,235,000 annually. (b) The difference between Mountain View providing and not providing communication services is $300,000 in revenues which would be received from the consolidated agency. Page A -2 Model 3 Fiscal Impacts Based on Stanford University Contract Allocated to Palo Alto Scenario Mtn. Vie~ provides $8,918,000 ~communications to consolidated agency Mtn. View does not provide $8,918,000 communications to consolidated agency Current Annual Costs including Communications Costs Consolidated Agency Costs Plus On-going Communica- tions Costs $8,093,000 $8,393,000 Difference Between Current and Consolidated $825,000 decrease $525,000 decrease Notes: (a) The on-going cost to Mountain View for providing communications services would be $1,235,000 annually. (b) The difference between Mountain View providing and not providing communication services is $300,000 in revenues which would be received from the consolidated agency. Page A - 3 CITY OF LOS ALTOSOne North San Antonio Road Los Altos, California 94022-3088 Tel: (415) 948-1491 Fax: (415) 941-7419 JOINT STUDY SESSION WITH THE LOS ALTOS CITY COUNCIL, THE LOS ALTOS COUNTY FIRE PROTECTION DISTRICT BOARD OF FIRE COMMISSIONERS, AND THE FIRE SERVICES DELIVERY FACT-FINDING TASK FORCE Monday, March 18, 1996 7:00 P.M. Hillview Community Center, Room A 97 Hillview Avenue Los Altos AGENDA Presentation of North County Fire Services Consolidation Study Final Report by Ralph Andersen & Associates Discussion of fire service delivery alternatives RESPONSIVE -INNOVATIVE - CONCERNED CITY OF LOS ALTOS MEMORANDUM DATE: TO: FROM: SUBJECT: February 29, 1996 Los Altos City Council Los Altos County Fire Protection District, Board of Fire Commissioners Robert Webster, Fire Chief FIRESERVICES DELIVERY ALTERNATIVES STUDY SESSION PURPOSE: The purpose of the study session is to review the various fire service delivery alternatives that have been studied over the past couple years and to provide staff with indications of how the Cit3’ and the District would like to proceed. This staff report: 1) Summarizes the report completed by the Fire Services Delivery Alternatives Fact- Finding Task Force in 1994 (attachment 1) and includes additional comments and recommendations from staff. * 2) Provides an executive summary of the North County Fire Services Consolidation Study (attachment 2) prepared by Ralph Andersen & Associates; comments from staffare included. Clay Brown, President/CEO of Ralph Andersen & Associates will present their report (attachment 2) and its findings at the study session. Also included for your information are copies of the North County Fire Services Consolidation Study related staff reports (attachment 3) for the cities of Mountain View and Palo Alto. BACKGROUND: The City of Los Altos Fire Department currently provides fire services to the Los Altos County Fire Protection District through a contractual agreement. In the fall of 1993 with the impending retirement of the fire chief(in June of 1994) and in keeping with the City’s policy to periodically review city services and programs to improve the quality and -page 1 of 10- *Copies of this report are available from the Mountain View City Manager’s Office effectiveness, a decision was made to review fire service delivery alternatives. The original City Council premise was to look for alternatives that "provided the same level of services at less cost or more services at the same cost". The Fire Services Delivery Alternatives Fact-Finding Task Force, hereinafter referred to as "task force", was formed to assist the City in its identification of fire service delivery alternatives. The task force was made up of City Council members,. Los Altos County Fire Protection District Board members, community representatives, union representatives, and city staff. The task force was not intended to be advisory in nature and thus was not expected to make recommendations. During the year of 1994, the task force reviewed multiple alternatives for fire services delivery to the City and District. The task force findings were detailed in a Fire Services Delivery Fact- Finding Task Force report, dated November 28, 1994. On December 5, 1994 the task force report was presented.to the City Council and District Board at a joint study session. FIRE SERVICES DELIVERY FACT-FINDING TASK FORCE REPORT Following is a summary of the four alternatives for providing fire services to the City and District identified and discussed in the task force report: 1. Current structure: The task force report described the current structure and service level of the City of Los Altos Fire Department. Pursuing this option would be a decision to make no change in the current structure and service level. This is only a viable option if the City and District agree to remain "status qu0". 2. Contracting: A Request for Information (RFI) was sent to Central Fire Protection District and the Cities of Mountain View and Palo Alto in May 1994. The RFI requested the interest of each agency in providing fire services to the City and the District on a contractual basis and a rough cost estimate for providing this service. Each agency responded to the RFI in June of 1994.. While the proposals were for a single contract with the City of Los Altos, it is conceivable that the City and District could contract with the same or different agencies, independent of each other. Proposals submitted by each agency suggested slight variations to service enhancement and provided preliminary cost information. The responses were not intended to be formal proposals. If the City and District desire to pursue contracting for fire services, it would be necessary to determine if the City and District would jointly or independently pursue this alternative. In either case, a comprehensive Request for Proposal (RIP) specifying the desired service levels and performance expectations/standards would typically be developed. It has also been suggested that we could proceed directly into negotiations with one or more agencies based on their earlier responses to the RFI. -page 2 of 10 - 3. Consolidation with an existing agency or new agency: The RFI also included a question regarding if the agency was interested in pursuing regional or other multi-jurisdictional alternatives towards providing fire services, e.g. joint powers agency formation, contracting and consolidation. The response from the agencies indicated an interest in some form of regional cooperation, but each agency preferred to consider contractual arrangements at that time. Therefore, the task force did not review forms of consolidation. In the fall of 1994 (prior to the task force completing their report), partially as a result of the task force activities, the city managers and fire chiefs of Mountain View and Palo Alto indicated an interest in exploring consolidation. This interest was shared by the City of Los Altos and Los Altos County Fire Protection District resulting in the four jurisdictions entering into an agreement in May of 1995 establishing a North County Fire Services Consolidation Study. A summary of the results of this study is presented following the alternatives identified by the task force. 4. Restructuring fire services internally, including consideration of a public safety department: The task force identified three options for reorganization, i.e. 1) combining police and fire functions into a public safety department, 2) combining the police chief and fire chief into a single public safety director position, and 3) providing 24-hour on duty battalion chiefs. The first option, combining police and fire functions into a public safety department has been successfully used by the City of Sunnyvale since they decided a volunteer fire department was not sufficient in 1950. However, there have been no successful mergers of already established police and fire departments in California, and few successful mergers nationwide. A presentation from the City of Sunnyvale Public Safety Department staff.to the task force identified various problems with this alternative. Option two combines the police chief and fire chief into a single public safety director position while the remaining police and fire department structure remains the same. While there is a potential cost savings, it is questionable if this option would work in Los Altos where the current management staffis already minimal. The City of Pacifica, operated under this model until it was found unworkable due to a variety of reasons from labor dissatisfaction to lack of necessary management staff. The third option would assign a 24-hour battalion chief to each of the existing three shifts. The fire department currently has two battalion chiefs working a forty hour week, Monday through Friday from 8:00 - 5:00. The battalion chiefs are available to respond to emergency calls twenty four hours per day. After normal business hours the on call battalion chief responds from home when requested. Assigning a battalion chief to a 24-hour shift provides greater capacity for supervision and training of field personnel and enhances fire command. This option would be an increased cost. Should there be a desire to pursue this option, an in-depth review of the impact -page 3 of 10 - on the existing organizational structure would need to be made. It is important to note the reorganization alternative is not limited to the three options listed above. The City and District could make changes in the staffing level of administrative and line personnel, types of equipment, and services delivered. If the City and District desire to pursue reorganization of the existing fire services, it would be necessary to determine the service level desired by each jurisdiction and cost allocation for the service, as the first step. Also, this alternative could be combined with some functional consolidation as described later in this report. NORTH COUNTY FIRE SERVICES CONSOLIDATION STUDY: As indicated earlier in this report, subsequent to the Cities of Mountain View and Palo Alto submitting proposalsfor providing fire services to the City (including District) on a contractual basis, an interest in exploring a more regional approach to providing fire services in the North Santa Clara County area was expressed by the city managers and fire chiefs from the Cities of Mountain View and Palo Alto. This interest was shared by the City of Los Altos and the Los Altos County Fire Protection District. In May of 1995 the Cities of Los Altos, Mountain View, Palo Alto and the Los Altos County Fire Protection District established a joint powers agreement (joint exercise of powers) for the purpose of studying the feasibility of consolidation. A comprehensive request for proposal soliciting proposals from interested consulting firms was distributed. Ralph Andersen & Associates was selected to conduct the study which commenced on July 25, 1995. The primary objective of the study was to determine if some form of combined fire services can provide fire and emergency medical services at a higher level of effectiveness and/or efficiency than is currently provided through the four existing but separate jurisdictions. The final report (attachment 2) prepared by the consultant, dated January 26, 1996 is divided into four chapters, as follows: Chapter I provides background information regarding the origin of the study and its objectives and scope. Chapter II provides a profile of the four participating agencies covering community and organization setting, departmental organization and staffing, functions and services, fire stations and apparatus, and budget. Chapter III identifies key organizational alternatives and issues. Chapter IV presents findings and recommendations relating to consolidation of fire and emergency medical services. -page 4 of 10- The consultant identified two alternatives for possible consolidation, i.e. full consolidation of fire and emergency medical services, and functional (partial) consolidation of services. A.FULL CONSOLIDATION OF FIRE .AND EMERGENCY MEDICAL SERVICES Largely because of the costs associated in the proposed form of full consolidation, Mountain View and Palo Alto staff have indicated they will not be recommending full consolidation. Thus, it is extremely unlikely full consolidation is a current option. Organizational Structure In a full consolidation the four agencies would consolidate fire and emergency services under a joint powers agreement (JPA) and form a North County Fire Services Agency. The new agency would be an independent agency, providing a higher level of service for all participants. The consultant presents some options for determining the make-up and voting structure of the JPA starting on page 90 of the report. Staffing Excluding communication personnel, presently fire personnel from all agencies total 240 people. The proposed consolidated agency has a recommended staffing structure (excluding communication personnel) of 239 people. This represents a net decrease of one person. Since - personnel costs are the primary costs of all three agencies (84%), the consolidated agency as proposed does not reflect any significant monetary savings. In theory, consolidation (through the sharing of resources) generally provides the opportunity to eliminate unnecessary duplication which should result in a reduction of personnel through attrition, providing significant cost savings without a reduction in service. However, the consultant was unable to develop a model agency that reduced personnel because of the varying service demands from community to community and within a community. While staff believes there is a potential for a cost savings as well as an increase in service through consolidation, for this to occur there must be a willingness on the part of all participants to allow each participating agency to determine the level of service their respective community desires. This did not occur. As an example, the Cities of Los Altos, Mountain View and Palo Alto provide a fire engine staffed with three people at each fire station. In addition to the fire engine at each station, the City of Los Altos provides a rescue with two people at Fire Station 2; Mountain View provides a rescue with two people and a truck with three people at Fire Station 1; and Palo Alto provides a rescue with three people at Station 2 and a truck with three people at Station 6. If the City and District desired truck servic, they could eliminate the rescue and place a truck in service. If the truck was staffed with three people, staffing would be the same as that currently provided in the Cities of Mountain View and Palo Alto. Under this scenario, every fire station -page 5 of 10 - would have a fire engine staffed with three people, and truck service would be available to the entire service area. If Mountain View and Palo Alto feel their needs support incurring the cost of keeping the rescues in service in their cities, they should do so. The City and District should realize a significant reduction in cost (in the consolidated agency) by not sharing in the cost of the increased service provided by the rescues. Should the City and District not require truck service, the savings would be even greater. Services Under full consolidation, all of the services currently provided by the existing fire departments would be continued. Support services, such as communications, vehicle maintenance, budget, finance, human resources will be provided through outside contractors or by one or more of the involved agencies. Emergency medical services would continue at the current level. The depth of fire suppression resources will greatly improve. Currently, none of the cities (based on the current minimum staffing and initial structure response levels established by the individual departments) can duplicate the same level of response to handle a second simultaneous structure fire as they do for the first structure fire; in the new agency they could. Since there would be no geographical city boundaries, consolidation would improve response time to certain areas because the closest station, regardless of what city it was located in, would respond to a call for service. Consolidation would increase the number of personnel responding to a structure fire. Presently, .Los Altos responds 2 engines, each staffed with 3 personnel, a rescue unit staffed with 2 personnel, and a battalion chief for a total of 9 personnel to a structure response. Under the consolidated agency, as a minimum, an additional truck or fire engine (see note) staffed with 3 personnel would respond, bringing the total first response to 12 personne!. Note:Many areas of the District would not be accessible to the existing trucks provided by Mountain View and Palo Alto because of the size of the apparatus and or excessive response distances. If truck service is desired by the District, a smaller truck stationed perhaps at El Monte or Loyola Fire Station could provide the service. Consolidation would provide for a dedicated training officer. This position could not only improve the level of training, but could ensure consistency and provide for greater coordination and interaction among existing staff. Fiscal Impact Following is a comparison of the current Los Altos Fire Department operational costs with the projected costs the city would incur under the consolidated agency (with the cost allocation based on calls for service, see page 104 of report). -page 6 of 10 - Fire Operations Communications Costs Less: Fire District Revenue Less: Fire District Communications Revenue TOTAL COSTS 1995/96 Consolidated $3,703,158 $2,394,177 $" 665,571 $ 665,571 (1,337,075) (116,267) $2,915,387 $3,059,748 Under this scenario, the consolidated agency would increase the fire and communication operational,costs for the City about 5% or $144,361 annually. This is based on the assumption that even though fire .communications would be handled by the consolidated agency, the City would still incur the same cost to operate its communication system for police and emergency public works communications. There are two other scenarios shown on page 105 of the report that could be looked at to allocate costs in th~ consolidated agency, however, it is highly unlikely they would be acceptable to the City of Palo Alto. The costs could vary based on which agency provides the fire administration facility, which agency provides communication services, or which agency provides payroll and personnel services. Additional cost would be incurred if facilities were rented or built for these needed services. While the cost will vary based on the method of allocation or whether or not a given agency was able to contract out facilities or services to the consolidated agency, the overall impact of consolidation as proposed will not reduce costs or may increase costs to the City unless personnel are reduced. Every scenario shows a decrease in cost for the District. Local Control The degree of control the City and District would lose in providing fire services to the community would depend in large part on how the Joint Powers Authority (JPA) was structured. The sample provided in the study used population to weigh the votes of each agency. Under this scenario, the City has 2 votes, and the District has 1 vote, compared to 6 for Palo Alto, and 6 for Mountain View. This scenario could result in the City having the swing vote, but in every case the District vote would not affect the outcome. B.FUNCTIONAL CONSOLIDATION OF SERVICES As an alternative to full consolidation, there is a potential for functional consolidation of specific services. Areas of functional consolidation could include training, communications, prevention/hazardous materials code enforcement, vehicle maintenance and paramedic service. -page 7 of 10 - Communications Consolidation of all police and fire communications for the cities of Los Altos, Mountain View and Palo Alto could result in a cost savings to the City and District. The City is currently nearing completion of a service review of the City’s existing communications system. Upon completion of the service review the City and District will be better informed of the potential benefits of pursuing an alternative communication service provider. If the City and District have an interest in reviewing communication delivery alternatives, staff feels all available communication providers should be included. Paramedic Services The full consolidated agency as proposed only continues paramedic services to Palo Alto and does not provide them to Los Altos, Mountain View and the Los Altos County Fire Protection District. Based on the historic costs associated with Palo Alto’s paramedic program, it is estimated that paramedic service could be expanded to include Los Altos, Los Altos County Fire Protection District and Mountain View at a cost of $1,161,000. However, the revenue generated from transporting is estimated to be about 1.1 million, which would cover thecost of the program. Almost half of the paramedic program costs are allocated to initial training, so it is expected that over the long term this program would generate revenue to cover the transport costs and partially subsidize the cost of paramedic or firefighter personnel. Mountain View and Palo Alto Fire Departments have held preliminary discussions concerning forming a JPA for paramedic ambulance services. The preliminary findings will be shared with the City and District in the very near future if there is an interest in pursuing this alternative. If the City and District desire to pursue paramedic services, because of the complexity of paramedic service, staffbelievesit should be reviewed separately (but simultaneously) from the current study so as not to delay bringing closure to the fire services delivery alternatives study. CQNCLUSIONS: 1.The City and District need to determine if we will continue to pursue alternative(s) jointly. 2.The City and District need to identify which of the following fire services delivery alternatives they have an interest in pursuing: 1) 2) 3) 4) current structure contracting with another agency or agencies consolidation with an existing agency or new agency, full or functional restructuring fire services internally, e.g. reorganization or public safety department’ -page 8 of 10 - If the City and the District desire to jointly pursue an alternative, the Fire Services Delivery Alternatives Fact-Finding Task Force could be used to assist in the process. The first step in the process should be to identify the level of service desired by both the City and the District. This would include establishing performance expectations. The review of fire services delivery alternatives has been going on for over two years. The City and District both desire and benefit from early closure. The City of Los Altos Fire Department has a goal to complete this review by June 30, 1996. If this goal is to be realized all those participating in the process must be committed to this time frame. STAFF RECOMMENDATIONS: Staffbelieves it is advantageous to both the City and the District to continue to pursue alternatives together. Not only is this the most cost-effective approach, together we have more influence than separately. However, this commitment must be made seriously. For example, once we begin contract negotiations, it could be disastrous to have us played against each other. We recommend that each agency take formal action to show their intentions in this matter as soon as they can. Staff recommends that we continue to pursue several alternatives simultaneously as follows. A.Contracting with another agency or agencies Based on responses to the task force R.F.I., staff believes a contractual arrangement provides the best chance for achieving the council’s goal of the "same level of services at tess cost or more services at the same cost". Comments from individual commissioners would suggest that the District is interested in increasing their level of service. If this is the case, this also provides good options for the District. B.Restructuring the current organization Current fire services operate at maximum efficiency based on resources. Additional resources will allow improvements in service. The depth of resources desired must be identified in order to compare this alternative to contracting with another agency or agencies. C.Functional consolidation Functional consolidation could accompany any restructuring and could conceivably also enhance contractual arrangements. Full consolidation does not appear to be an alternative at this time. "Status quo" always - page 9 of 10 - remains an alternative, but does not require further study; it is merely a basis for comparison. Finally, based on the task force report, it does not appear that consolidation of the police and fire department will be cost effective. Regardless of alternatives to be pursued, the next step needs to be agreement on "base" service levels. Previous council direction, summarized by the "same level of services at less cost or more services at the same cost" philosophy, implies that current service levels are adequate, although a higher level of service may be desirable. Management staff continues to concur with this, but with new council members and/or new information, the city council may want to reconsider the base level of service. As mentioned previously, the District may wish a higher level of service as a "base." Depending on the specific service, staff believes that different service levels between the agencies are possible. For example, the District currently pays extra for seasonal staffing of Palo Alto Station 8. However, it is important that those expectations be identified before we pursue contracting or restructuring. If each agency chooses to work separately, they can be identified separately. If, pursuant to staff recommendation, the District and City continue to work as a team, we see the task force as a good place to consider these issues before consideration by each governing body and so recommend. The council and district may not take formal action at a study session. However, staffwould appreciate hearing your comments and interests to help guide staff activity, including preparation of recommendations for formal action. ATTACHMENTS: 1.Fire ~ervices Delivery Fact-Finding Task Force Report 2.Final Report North Santa Clara County Fire Services Consolidation Study 3.Staff reports from the Cities of Mountain View and Palo Alto - page 10 of 10 -