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HomeMy WebLinkAboutMINUTES - 05102011 - D.1RECOMMENDATION(S): CONSIDER approving and authorizing the Fire Chief to accept the Federal Emergency Management Agency (FEMA) 2010 Staffing for Adequate Fire and Emergency Response (SAFER) grant in the amount of $6,525,929 for additional staffing of fire suppression personnel for the period May 12, 2011 through May 11, 2013. FISCAL IMPACT: $6,525,929, 100% Federal. No County match required. BACKGROUND: The District continues to face unprecedented financial challenges due to the decline in the housing market and resulting impact on property tax revenues. The District has restructured and downsized the organization in an attempt to achieve a balanced budget while minimizing the impact on emergency response activities. Several positions were eliminated in 2010. Rank and file employees agreed to defer negotiated wage increases for two years. In addition to being furloughed several days per year, administrative employees have not received a wage increase since 2008. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/10/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Daryl Louder, (925) 941-3312 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 10, 2011 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Daryl L. Louder, Fire Chief, Jackie Lorrekovich, Chief-Admin Svcs D. 1 To:Contra Costa County Fire Protection District Board of Directors From:Daryl L. Louder, Chief, Contra Costa County Fire Protection District Date:May 10, 2011 Contra Costa County Subject:CCCFPD Award of $6.5 Million SAFER Grant BACKGROUND: (CONT'D) Service and supply budgets have been cut to a minimal level and capital expenditures have essentially been non-existent for the last several years. In January 2011, having exhausted expense reduction options throughout the organization, one of the two companies at Fire Station 1 in Walnut Creek was de-staffed. As the District enters a new fiscal year, certain costs are still being deferred – such as the replacement of aging fire apparatus, improvement and maintenance of building structures, and preservation of our internal service fund for Workers’ Compensation at an 80% confidence level. In addition to a number of positions that were totally eliminated in 2010, personnel costs have been further reduced by continuing to manage vacancies in several key positions. The District faces predictable increases to health insurance premiums in the upcoming year – for both current employees and retirees – and will again be required to make an annual payment on its portion of the County’s actuarial accrued liability for other post-employment benefits (OPEB). Of particular note for FY 2011-12 is a significant increase to pension costs. There are seventeen public agencies in the Contra Costa County Employees’ Retirement Association (CCCERA). In late 2009 the Board of Trustees for CCCERA made a decision to split – or depool – the pension assets for those employers and calculate separate contribution rates based on agency and benefit levels. The new depooled rates for FY 2011-12 were recently released, and the District’s Safety Tier A rate has nearly doubled. At current service levels, this adds approximately $6 million to next year’s operating budget. (Note: The increased rates also include a component for the five year smoothing of investment losses in 2008.) Additionally, CCCERA’s actuaries released a five-year projection of employer contribution rate changes, and the District’s retirement rates are projected to continue increasing in the following four years. In February 2011 the District received a grant award notification from the DHS-FEMA SAFER program. The goals of SAFER include improving and restoring fire departments so that they may more efficiently respond to and mitigate emergencies. The amount of the grant awarded to the District is $6,525,929. The funding is for 21 firefighter positions over a two year period. The period of performance is May 2011 to May 2013. If the District accepts the SAFER grant, it must adhere to the program terms and conditions unless specifically granted a waiver on a particular program requirement. During the period of performance the grantee must maintain: 1) the total number of authorized and funded firefighter positions at the time of award; 2) the total number of SAFER-funded firefighter positions throughout the performance period. Additionally the District cannot lay off firefighters during the period of performance, and vacancies that arise through attrition – such as openings created by retiring firefighters – must be filled within a reasonable time period. Without an additional source of funding, the District is looking at potentially closing or de-staffing up to five fire companies in FY 2011-12, including the currently de-staffed company at Station 1. If the District accepts the SAFER grant, it could keep two additional fire companies staffed during the two year performance period. The above-referenced positions are fully funded by the grant; there is no grantee match requirement. CONSEQUENCE OF NEGATIVE ACTION: The Contra Costa County Fire Protection District may not be able to claim to grant award. CHILDREN'S IMPACT STATEMENT: No impact. CLERK'S ADDENDUM Speaker: Vincent Wells, President Firefighters Local 1230.