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Home My WebLink About0533.091- December 5, 1991 HONORABLE CITV COUNCIL Palo Alto l California Attention: Finance Committee FIRB STATION LOG~TION STODY Members of the Council: Report ill Brie.! Thi5 report resp~nds to the Finance Committee's request of March 26, 1991 for additional information concerning the ·Palo Alto Fire Department Fire Station Location Study~. On further st'.ldy, staff has estimated that it will take approxi mately five years from thG date of the first expense incurred (1993-94) for expe.nditure savings to offset capital costs to implement the recomm~nded proposaL After the relocations are paid for, t~ere is an ongoing savings to the city of nine positions, or over $60D~OCO per year. Staff recommends that Council direct staff to develop a multi-jurisdictional Fire Station Consolidation Plan with tbe officizls of Mour.tain Vie~, Los Altos and Los Altos Hills. SackqrounlS The "Palo Alto Fire Department Fire Station Location studyN (CMR 170:91, March 211 1991) found that service levels could be maintained ~hile reducing ongoing expenditures by a combination of relocating and consolidating fire stations with Los Altos and Mountain view as contained i~ the Study's alternative number 4. 'r-he Finance. comr.;i ttee requested that staff investigate five areas: L Actual potential locatioi1S for the proposed stations; 2. Improvement of response time to Greer Parki CMR:533:91 1_ • -.------.. ---~--. 3. Financial informativJl on cost of building new-stations; 4. Sample of elements to be cont~ined in joint po~ers authority documents; and 5. Identify the timing and mechanist:l for implementing the proposed relocation plan. Staff further proposes tw'o 2dditional amend:;nepts to Alternative Number Four. The first is to delay the relocation of the Alma Street fir~ station to a site near the civic center because of lack of cost savings. The second is to continue to operate the Hanover Street fire station by reallocation of staff from eXisting stations. The amended alternative ~umber 4 proposes that Palo Alto build and operate a consolidated Fire station (Number 9) with Los Altos by moving a portion of the eXisting fire suppression resources services from Hanover street to the proposed site on Arastradero Road near Page Mill Road. The Hanover-Station wou.ld remain open and serve as the Ernerger:cy Medical Services (paramedic) and Hazardous Materials/Hesponse Center. In addition, Palo Alto's Station Number 4 would be moved to the 800 block of Charleston Road and consolidated W"ith Mountain VieW" 5 St'ation Number J. The property curr.ently occupied by station Nurr.ber 4 'Wou.ld be sold. Attachment One shows the locations of the existing and proposed fire stations. It.1.scussion 1. Identify potential sites for Fire Stations 4 and 9. Staff has identified an area as a pctential site for Fire Station Number 4 and a specific site in the 8GO blo~k of Charleston Road has been used to calculate response tir..es. T!1e site is for sale, but at the time this report ~as prepared, the owners ~ere negotiat ing a possible sale. As indicated earlier in this report~ the suppression services from St.ation N'Wmber 2 would be relocated to staff the consolidated Station Number 9 at a site on Arastradero Road in Palo Alto's 77- acre parcel. 2. Improve respc1nse time from station Number 4. to Greer Park. Response time calculat~ons from the Charleston location have been analyzed and the service is improved for Palo Alto ~hen compared to the studyts previous location at Middlefield and San Antonio Roads~ CMR:533:91 2 • " • • i I 1 i - specifically, the area of Colorado street from Ross Road to West Bayshore and Dry Creek sho",'s improved service time!3 from the BBO block of Charleston Road. In adji tior., the Charleston location provides better access to the Bayshore Fr~eway and the expanding shoreline Industrial Park ar~a of Mountain Vie~. 3. Calculate the cost of al".d the nurr.!:ier of years it will take to pay for relocating the fire stations. Ii the consolidation of both fire stations with the respective cities ~ere to take place, it would take approximately five years tor the operational savings to pay for the investment required (see Attachment Two). The savings would begin .,,'hen the stations are consolidated. However, the five-year payoff period begins in 1953- 94 when the first capital expenditure is incurred. Several assumptions and estimations were :rnac!e to arrive at this conclusion. These are listed in Attachment Three. ~nenever there was a range of figures available, the most ccnservative estimates were made, i.e., the highest costs for building new stations was used and the lowest cost tor the sale of property ~as used. Preliminary discussions were held 'With the Fire Chiefs and city ~anagers of Mountain Vie~. Los Altos and Los Altos Hills concerning the feasibility of consolidating fire stations. The parties concerned are a~enable to continuing discussio~s on a more formal basis. In addition; there is growing interest in using the proposal contained in this report as the initial step to develop a plan leading to full consolidation of the three fire departments where even greater savings are possible. As per thase discussions, the respective cities ~ould each contribute half of the calculated building costs for the fire station tnat chey ~ould 5}-,are. Without this contribution, the time to pay for the proposal 'Would be extended to nine years. It is not a5SU1!led that either Los Altos or Mountain vie ... · ... ·ould make .any contribution towards the purchase of the property or the preparation of the property for const~uction because both ne ...... stations would be located "'ithin Palo Alto. Staff proposes that one engine co~pany, Engine 2 from Fire Station 2 (Hanover station), ""ould be moved to the new station on Arastradero Road and replaced by relocating the existing Hazardous Materials response unit, Rescue 1, currently located at Fire station Number 1 (Al:r.1a Station). The paramedic unit would remain at the Hanover Station. This ...... ould provide improved hazardous materials response services to the Stanford Research Park. In addition, there is no apparent economic benefit to closing the Hanover Station. r/hen it 'w.'as as built, Palo .I)"lto and Stanford UniYersity agreed tbe property ""ou Id be used by the city for municipal purposes or it reverts to the University, and cannot therefore be sold by the City. CMR: 533: n 3 1 , i l • I o 4. Identify the elements that \oIculd b€ contained in a .Joint Powers Agreement. Implementation of Altern3.tive number 4. will require the development of join'\:. powers agreements between Palo Alto/Los Altos and Palo Alto/~ountain View to ~urchase. construct, staff and ope~ate two fire stations as described iJ"'l Alternative Number 4. Staff has researched, with the assistance of the city Attorney's Office, the follo'ollling elements as IHcely to pe included il"". such an agreement. Legal Elements! o 'the agreements 1,Jould r:'.eet the guid-:.lines set forth in the California Government Code, Section 6500 "Joint Exercise of Powers lP • o In addition, the agreement must fol!a ... any furtl"'~er constraints established by local requirements for each juriSdiction based upon local charter or genera 1 law requirements. Financial Elements: C The agreement must contain a clear designation of ~hich party ~ill handle the finances. o An accounting and auditing process must be described in the agreernent~ o The parties of the agreement can be reimbursed in the ferm of goods, services, money or a combination of these elements. Hor","eve.r, the agreement must clearly identify the form of reimbursement intended and ~hat percentages ~ould be paid by each party. o Tne agreement must identify ho'"" capital costs will be shared. Alternative Number 4 may include acquisition and any preparation of land, buildlng constructic~; permits and any public environmental studies or revie .... require ments. The exac"t I".ature of the agreement 'Would be subject to negotiations between the parties. o Operational costs of the building il1cluding all mainte nance and insurance 'Would be included. o Eg-uipment values, maintenance and replacement costs for all shared equipment .... 'ould be contained in the agreement. Personnel Elements: o Personnel and stafflng procedures would be necessary to clarify performance, certl.ficatiol1s, tralning, officer or CMR:533:91 • • t' t 4 " I , -I I I , I , j ' .... ; o position equivalents£ and recogniticn that the agreement had not intended to equate any differences in salary, benefits or labor contract language. It is also recog nized that some i~sue5 may arise ...... hich could require discussions ...... ith ~he bargaining units. o Reporting relationships and standards for employee conduct both fer emergency and non-emergency activities. Liability Ele~ents: o The agreement ""Quld inc:l'.Jde all insurance coverage which would take into consideration the self-insurance of one or more of the parties~ o The a.qre~!T1ent ...... ould address issues of liability in regard to handling third party claims an~ industrial injuries4 Service Level Elements: o Service levels and performance standards would be identified in the agreement~ o Training criteria and c<;:rtifications, as applicable, Would be identified. Terms of Agreement and Disposition: o The terms of agreement stating length, rene1tial and termination would be clearly stated. o Provisions for disposition of jointly held assets would be identified in the agreement. s. Identify the timing and mechanism for implementing the proposed relocation plan. The implementation of the proposed fire station relocation plan is subject to a collaborative agreement between the participating agencies. For the purposes of this report, staff suggests the following four process phases: 1) Agreemerlts; 2 j Acquisi tion/Design; 3} Construction; and 4) Consolidated Operatiof1s. The proposed time line is attached {Attachment 7our)~ Agree!!',ent Phase: o Establishment of a Fire station Relocation Task. Force ~ith representatives from the city of Palo Alto, Mountain View, Los Altos/Los Altos Hills. Target date: February 15, 1992. CMR:533:91 -----~~--,-" .... ,,;- i ! I I ! " " ----, Revie..., Alternative Number 4 and l''''~ke ame~d:ments as T.e:eded 9.nd prepare a consensus draft operational and implemel1ta tion plan for presentation to the respective City and Town Councils for conceptu~l approval and comme~tS. Target da,t€: .July 199:2. Pending the developm~nt of various staffing options, some personnel issues may be subject to mei2it and confer 'With affected employee groups. As appropriate, this procedure l!l~y occu:r during t.his phase or at a later date prior to cO~Ence~ent of operations. o Receive input irort" community interest groups as needed and maXe aDv:~naments to tt.e operational and imp1.ernentation plan. Present final plan to the respective City and Town Councl Is for approvaL Target date: December 1992. Acquisition/De6ign Phase: o Locate and negotiate the acquisition of property for Station Number 4. funding to be included in tha 1993-94 interim budget throu~h a Sudget Amendment Ordinance. o Target date to begin: December 1992 Targe"t. date to complete: July 1993 Design Fire Stations Number 9 and 4. included in 1993-94 CIP budget. Target date to begin: July 1993 Target Date to complete: ~une 1994 Funding to be Project Review and Construction Phase: a Project revie ..... and Construction phase of t~e jOint tire stations in 1 0''': er Foott.il1s an:i in South :Palo Alto. Funding to be in~luded in the 1994-95 CIP budget. Target date to begin process: July 1994 Target date to complete: August 1995 Consolidated Operations Phase: " CM1U53J:Sl staff 'I.rill explore the possibility of joint staffing priDr to the completion of cons"truction of tl'le new fire stations. • I 1-- - A~~itional Issues There are two additional issues that 'Will need to be addressed before final fire stat:'on mergers .... ith Los Altos and Mountain Vie\r' occur. First, the Arastradero property ~ill need to he rezoned from open space to a use to facilitate a fire station. Secondly, the area that has been identifi'9d as feasible for Fire Station Number 4 mal'" have some toxic contamInation. Depending on the location, staff may recommend that a level one hazardous materials analysis be undert.ak.en~ No cost esti::nate fot' this cle;anup "'as added to the break even calculation~ The current owne~ is responsible for the contamination or ~ny future clean-up. This issue ~ould have to be carefully assessed du.ring any discussions leading to the City's acqui~inq prop~rty in the area. ~ommen4ation Based on yearly cost savings of over $600,000 per year beginning in 1999-2000, staff recommends the Ccuncil direct staff to develop a multi-jurisdictional Fire Station Consolidation Plan vith the officials of Mountain View, Los Altos 3.nd Los Altos Hills. 'l'his Consolidation Plan would be based on the concept outlined in Alternative Number 4, as amended, of the Palo Alto Fire Department Fire station Location study. Respectfully submitted, Ji'f.kt? f/w,", -,t/t/)'17 VIRGINIA HARRI~GTON Senior Fina~~al Analyst /i"/ _ ,/" _;;)!6";../~C2< '---- ROBERT WALL Fire Chief cc: Los Altos City Manager, Dianne Gershuny Mountain View City Manager, Kevin Duggan Los Altos }"ire Chief, Richard Lunc:1rum Mountain View Fire Chief, Hugh Holden International Association of Federated Fire Fighters Loc"!1 1319, Anthony Spitaleri, president Palo Alto Chamber of Commerce stanfcrd Research Park Committee Stanford public Saf.:ty Department, Chief Harvin Herrington Related Staff Reports: CMR:17Q:91 CMR:S)): 91 , ."-..---~ L L ALTERNATE, 4 Station f 2-Reloc.ate StaIf ConsoIidolte with LAFD_ SL1.lion' l-Existing Loc.. Station' 4 -Relocate Consolida!e with MVFD. Station' 5--Existing Lac. Station' 6-Existing Lac. Station f 1-Existing Loe.. Statlon f 8-Eld .. o;fing Loc. , \ .' a An'ACHMEl'fTTVVO .-., F lRE ~T10N RELOCATiON CAlCUl).TION (! 9'92 i)~ ,5) F~E STAnON " ------ cosrs .~ndcn & Pf'9P,U6 jC){ Ne.." US4 Purchase PCOI;ltmy Prepare Propert)' lor COiISlruclion De$i1Jl"l New Sta!iO!'1 Construct New Sta'!roo COSTS eENems Sale oj ?rop&rty CorIlributumJRert1 from Clty Si'1arino Buiklir.g BENEFITS BENEFITS MINUS COSTS YEAP,L. Y SA V!NGS TO CITY Of PALO AlTO 1993-94 '994-95 ,1)95-96 1996-97 1997-9S '\9ge-9'3 1999--00 2000-01 '995 "\.99~ 10>94 ,994 1995 1995 1995 1995 NUMBER OF YEARS TO MAKE UP DEFICIT FROM F~ST EXPENDITURE OF .... ONEY (1993--94) (1) Based on an estimate of iI cost $52.50 per SQlIare joat. (~Based Of'Iln 8S1imated sale pric'lI til $)4,75 ~ef square leot .;---... -................ -~-, """':--"" .. .0 $0 $0 $200,000 Il,340,00ij $1,540,000 '0 sno,OOQ $7TG,OOO ('!.nc,OOO) $0 $0 $2P,'J,4Se. $294,5213 5:'08,29, $324,720 $340,954 $357,892 . , FlRE STATION .. TOTAL 560,000 $~ ,2'60.000 (l) , $210,000 $'.~70,OOO $2,900,000 $4,440,000 $937.656 (2) $790,000 $1,727,656 $2,497,656 {$'\,'112,'344) ~$.' ,9.(.2,344) $0 .0 SO $0 $C8C,4SS $565.C~ $294,528 $S~,292 $308,291 $82',016 $324,720 $654,"0 $340,954 $686,813 5.357,892 $720,931 ., 5.' ">.TTACHMENT THREE ASSUMPTIONS o The calculations have been adjusted for inflation using 1992 as a base year and an inflation rate of 5 percent. o When calculating the benefits minus the co~ts for this project. it "'<'\S ass1.1I!led that there 'Would be no eqUipment E-avings unless bot"h part3 of th~ proposal ... ere undertaken.. If this were the case, the City ~ould require one less engine in future years. o The total salary and building maintenance savings to the City have b6en reduced by 30.3 percent to reflect the cu~rent joi~t service reve>lue reimburse!!',ent agreement for fire ser-vices between the city and Stanford University. Operational savings o Operaticnal savings will pay for the project and are realized through retirement. This assume.s that an emplore.e ..... ill retire upon reaching re.tirement age (55~. Retirement age vill be i.-eached by 10 employees in 1994-95. The calculation assumes that three Fire Fighters, three Fire Apparatus Operators and three Fire. Captains ...... ill retire from the 'Work force. The differences in salary between titles and what year personnel in each title retire are not taken into account in this calculation. Salary \~sed in calculations is the top step of the Compensation Plan for each title. A benefit rate of 57 percent ~as used. Real Estate and construction Costs o It is estimated that a 24,000 ft square lot would be ~eguired for Fire Station 4. In the area identified ~s the optimum location for Station 4 property values ra.nge bet ... een $40 and $50 per square foot or between $960,000 and $1,250,000 for the lot size required. There is no factor for the cost required to demolish any exi sting structure and prepare whataYer property is purchased in this calculation. o The current piece of property on -...:hich Fire Station 4 is located "Would be sold and could be divided into th~ee single family residential lots of 9,000 square feet that would sell for bet~een $30 and $4D per square foot. Therefore, the city ~ould realize between $937,600 ar.d $1(190~ooa fro~ the sale af the property that houses Station 4. o The capital costs far Fire Station 2 and Fire Station 4 ~ere estimated by the City's Public Works Department~ The property O'P). which Fire station 4 is located: would have to :have prepared a new use, "Which \r{ill cost $60~OOO for removing the existing CMR~53J~91 1 • . - .i -~ o J building, existing ha~dscape and underground tank. This does not include any unknown factors. Tfie cost to design and build a new station is approximately $115S0 j aOO. rt would cost approximately $1,540,000 to de5iqn and construct a new Fire St~tior, 2 on Arastradera Road. 'r'here 'Will be nCo need for capital expenditures at the Hanov~r site of Station Number 2. o No costs for furnishing the new fire stations or relocation of the new stations have been included. CMR:53J:91 2 • , • An ACH EMENT FOU R FlRE STAnm~ RElOCjl"TION STMF REPORT TIMEUNE Establish taslo; '()(ee wili1 MO'.Jntal~ Vie .... , ll)S Altosllcs AI'os rWls. O,af! opel<uion and implemenra"oo plan for f8Spoclive City and Town Gaur,cils. Racefve Impt.J! from community and make arr.BnQmenlS tr, ,o!an.. Present l'inal p~an Ie aty and Town Councns 2. ACOOISfTJONJDESIGN T AAG=T DATE: BEGlN PROCESS' COMPLETE pnoa:: S S' Design StaHan 2 and Slal,on 4. BEGIN PROCESS: COMPLETE PROCESS: 3. CONSTRUCTlON PHASE Con:.truclion. BEGIN PROCESS: CQMPLET:S PROCESS: 4. CCNSOUDATED OPEARATlONS P~1ASE e~ln ioinlSlalflnQ of ne ..... Slat 10" 2 and Sta:ion 4. STATION 2/ST,-,nON .. F&tJru!:I1)I 15, 1992 Ju!)' 1932 Dec amb er 1992 uecember 1992 Jul)' 1993 JUly 1993 June 1994 JU I:;1994 AUQUSll995 SEPtember 1995 \,