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HomeMy WebLinkAboutMINUTES - 07092013 - FPD D.2RECOMMENDATION(S): Consider a recommendation from the Fire Chief for the Board of Directors to forward an alternate proposal to the Moraga-Orinda Fire Protection District to enter into a partnership to jointly build and operate a single fire station to replace Fire Station-16 (West Lafayette) and Fire Station-43 (East Orinda). FISCAL IMPACT: Recommendation only. No fiscal impact. BACKGROUND: On May 14, 2013, the Board of Directors voted not to pursue the purchase of property in Lafayette to jointly build and operate a fire station with the Moraga-Orinda Fire District. At that time, Board members expressed concern regarding the annual operating costs of the initiative in light of the fiscal crisis the District is facing. District staff continues to advocate for the joint partnership to build and operate “Fire Station – 46” due to the significant benefits associated with the project outlined in the attached feasibility report. These benefits include: • Provides appropriate protection and response APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/09/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Daryl Louder, 925-941-3500 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: July 9, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: D.2 To:Contra Costa County Fire Protection District Board of Directors From:Daryl L. Louder, Chief, Contra Costa County Fire Protection District Date:July 9, 2013 Contra Costa County Subject:Partnership with Moraga-Orinda Fire District to Jointly Build and Operate a Fire Station in Lafayette BACKGROUND: (CONT'D) times for West Lafayette • Matches resources with service demands and community threats • Addresses needs to replace the existing FS-16 due to health and safety issues • Reduces capital land acquisition and fire station construction cost by 50% • Reduces operating costs by 50% or approximately $1M annually for the 40-year life expectancy of the fire station • Addresses public demands and expectations for greater collaboration and efficiency • Provides long-term strategic benefits In light of the significant long-term strategic benefits provided to all partners by the FS-46 initiative, the District staff recommends that the Board of Directors submit an alternative offer to the Moraga-Orinda Fire District. The proposed offer should include the “deal points” outlined in the original proposal including: • Creation of a JPA to jointly purchase the land and jointly own FS-46 • Contribute 50% of the capital costs for fire station design, site work, and construction • The Moraga-Orinda Fire District staffs FS-46 The recommended change to the proposal is to request that the Moraga-Orinda Fire District waive Contra Costa County Fire Protection District’s contributions for the annual operating costs for a period of five (5) years. This would provide time for the Fire District’s fiscal situation to stabilize before having to make annual payments for operating costs. However, both parties would still realize the savings associated with capital costs (land acquisition and construction) and the long-term savings (35 years of sharing operating costs) provided by the full joint partnership. CONSEQUENCE OF NEGATIVE ACTION: The Fire Board of Directors will not submit an alternate proposal to the Board of Directors of the Moraga-Orinda Fire District to enter into a partnership to jointly build and operate a single fire station to replace Fire Station 16 (West Lafayette) and Fire Station 43 (East Orinda). CHILDREN'S IMPACT STATEMENT: No impact. CLERK'S ADDENDUM Speakers:  Steven Falk, Lafayette City Manager; Don Tatzin, Vice-Mayor Lafayette; Brandt Andersson, Lafayette City Council member APPROVED recommendation to forward an alternate proposal to the Moraga-Orinda Fire Protection District to enter into a partnership to jointly build and operate a single fire station to replace Fire Station-16 (West Lafayette) and Fire Station-43 (East Orinda); DIRECTED the proposal to contain language on flexibility in the proposed time frame in which Moraga-Orinda Fire District would waive Contra Costa County Fire Protection District’s contributions for the annual operating costs; FURTHER DIRECTED the Chief to return to the Board with a priority schedule for station re-openings and associated revenue stream information. ATTACHMENTS Joint FS-16 and FS-43 Feasibility Study Joint Fire Station-16/Fire Station-43 Feasibility Study: Background - The Contra Costa County Fire Protection District (CCCFPD) operated Fire Station-16 (FS-16) in order to provide fire protection, emergency medical services (EMS), and rescue services to the Upper Happy Valley and Acalanes communities in the western portion of Lafayette. This semi-rural area is primarily comprised of single family dwellings with a limited number of schools and commercial occupancies. Due to the low population density, the area experiences low emergency service demand levels. For the last six years (2007-2012) the fire station has averaged 253 incidents per year, or .69 calls per day in the first-due area. As such, this unit is woefully underutilized from a unit hour utilization perspective. However, FS-16’s first due area is considered a high wildland fire threat zone with potential for significant fires that would endanger multiple structures. Additionally, there is a demand for EMS services to serve a more mature cliental. The area also has a very poor transportation network that leads to extended response times. To this end, FS-16 is located in the community and staffed in order to provide an acceptable level of fire/EMS protection and reasonable response times for the very limited number of incidents they respond to. FS-16 was severely damaged during the Loma Prieta Earthquake in 1989 and was deemed uninhabitable. A “temporary” housing unit was placed on the site and that facility remains there today. Due to the age and type of construction, the District has experienced a number of issues with mold and rodent infestation for several years. This has led to a number of temporary closures due to occupational health and safety concerns. In June 2012, the fire station was permanently closed due to health and safety concerns and an investigation by California Division of Occupational Health and Safety and the crew was reassigned to FS-15 in downtown Lafayette. Due to budget deficits, E-16 was one of four units that were de-staffed on January 15, 2013. As such, protection is provided to the area by FS-43 and FS-15 in downtown Lafayette. Fire Station-43 (FS-43) is operated by the Moraga-Orinda Fire District (MOFD) and is located approximately 1.5 miles west of FS-16 and shares very similar characteristics. This portion of eastern Orinda is also semi-rural area is primarily comprised of single family dwellings. Due to the low population density, the area experiences low emergency service demand levels. For the last six years (2007-2012) the fire station has averaged 213 incidents per year, or .58 calls per day in the first-due area. FS-43 is an older fire station as well and is currently scheduled to be rebuilt on the current site. Joint Fire Station-16/Fire Station-43 Feasibility Study Page Two 0 50 100 150 200 250 300 2007 2008 2009 2010 2011 2012 FS-16 FS-43 Incidents in FS-16 and FS-43 First Due Area from 2007 - 2012 Concept of Operations - Both FS-16 and FS-43 are in service to provide adequate coverage and response time. An engine company with a crew of three personnel is operated in each fire station. However, the unit hour utilization for both units is well below average and well below recommended efficiency levels for a high performance organization. Additionally, both fire stations are in close proximity to each other and there is a significant amount of overlap in the coverage. In light of the current fiscal climate, there is an increasing demand for greater efficiency and utilization of public funds. To this end, the District is working closely with the Moraga-Orinda Fire District to develop solutions that will continue to provide excellent service to the communities but more closely match resources with service demands. The proposed solution is for the Contra Costa County Fire Protection District and the Moraga-Orinda Fire District to jointly build a new single fire station and operate a single paramedic staffed engine company with a crew of three (3) personnel that would serve both communities. The new fire station would be centrally located on the Lafayette and Orinda boarder in the area of El Nino Ranch Road between the existing fire stations. The new location is approximately three quarters of a mile from each of the existing stations. Land acquisition and construction costs would be equally shared between both Districts. The annual personnel and operating cost of the single engine company would be shared equally by both entities. Service Delivery and Coverage - Due to the close proximity of the two existing fire stations and the areas with overlapping coverage, a new centrally located facility will provide appropriate levels of coverage and response times to each community. Joint Fire Station-16/Fire Station-43 Feasibility Study Page Three Since FS-16 is currently closed, the coverage in that first-due area would be significantly improved. An analysis utilizing “ArcView” GIS software indicates that the response times to the vast majority of western Lafayette would be within a four (4) or five (5) minute travel time. A limited area in the northwest portion of Upper Happy Valley Road has a six (6) minute travel time. The five (5) minute travel times conform to the County General Plan for urban/suburban areas. Attachment A depicts the response times from the current FS-16 location. Attachment B depicts the response times in western Lafayette from FS-43 and FS-15 on Diablo Boulevard in downtown Lafayette. Attachment C depicts the coverage and travel times provided by proposed fire station on El Nino Ranch Road. The proposed site of the new fire station on El Nino Road also provides appropriate coverage and response time for the residents of Orinda. A limited number of areas would experience slightly longer response times; however, they would still fall within acceptable limits. Based on data from 2007 – 2012, Engine-16 responded to an average of 490 calls per year and Engine-43 responded to an average of 478 calls per year. Collectively, the new single engine company would respond to approximately 950 calls per year, or 2.6 call per day. This is within the acceptable activity limits and still well below the average number of incidents other units in the District respond to. However, it will increase the unit hour utilization and efficiency of the unit. The unit would provide fire protection and paramedic based emergency medical services. 0 100 200 300 400 500 600 700 2007 2008 2009 2010 2011 2012 FS-16 FS-43 Total runs by FS-16 and FS-43 from 2007 to 2012 Joint Fire Station-16/Fire Station-43 Feasibility Study Page Four Property and Facilities - Staff has reviewed a number of potential properties near the Lafayette and Orinda city limits along El Nino Ranch Road. Obviously, in order to maintain equitable coverage and response times for both Lafayette and Orinda the location of the proposed fire station is very important. Currently, there is a parcel for sale that is very close to the Lafayette and Orinda city limits. Based on a preliminary review by an architectural firm, the property would be appropriate for building and operating a fire station. In order to realize the full benefit of a major capital investment such as a fire station, the cost must be amortized over a 30 to 40-year period. The “life cycle” of the facility will help to drive the governance of this initiative and the long-term savings from the joint endeavor. The facility would be large enough to accommodate an additional unit for “red flag” day coverage or potential needs in the future. Fiscal Implications One of the most significant advantages of the proposed initiative is the overall reduction in costs and shared saving that will be realized by both Districts. It is important to note, that this analysis is based on the premise that FS-16 would be re-staffed when the economy improves and full service is restored to all of the communities. Capital costs for land acquisition, site and utility work, and construction of new fire station is estimated to be between five and six million dollars ($5-6M).These costs would be shared equally between the two districts. Some of these initial startup costs would be offset by the sale of the existing FS-16 and FS-43 properties. More importantly, significant savings would be realized annually from reduced personnel and operating costs. The annual personnel and operating cost for a fire station in the District is $2,256,100 (See Attachment D for FY-2012-13 Fire Station Costs Staffing with Regular Permanent Full-Time Personnel - $2,070,000 Gross regular pay: base, paramedic certification, holiday, scheduled FLSA overtime, uniform Overtime required to maintain minimum staffing levels Retirement @40.82% Active employee health and dental insurance Workers’ Compensation @ 8.5% Medicare @ 1.45% Joint Fire Station-16/Fire Station-43 Feasibility Study Page Five Operating Costs - $186,100 Average Station Costs - $18,500 - Utilities, Maintenance, Repairs, Trash Program cost apportionment - $167,600 – Firefighting and EMS equipment and supplies, apparatus maintenance, fuel, communications equipment The personnel and operating costs for a Moraga-Orinda fire station is $1,928,761. The average between the two Districts is $2,092,430. Depending on which District staffed the fire station, it is anticipated that the District would save between $964,380 and $1,128,050 annually. Thus the District would recoup our initial capital costs in approximately three years and continue to save approximately $1M annually for the life of the agreement. Based on the life cycle of the new fire station, the District could expect to save between $30 and $40 million dollars during the terms of the agreement after the capital costs are repaid. Timeline - This proposal is time sensitive for two distinct reasons. First, the Moraga-Orinda Fire District had previously decided to replace FS-43 with a new facility. MOFD was in the process of obtaining bids for this new construction when the feasibility of this project first surfaced. The MOFD Board of Directors has delayed the bid process while the Districts explore the feasibility of this joint initiative. However, construction costs are expected to increase during this interim period. Significant delays would increase their construction costs for FS-43 if this initiative is deemed unacceptable. Equally important is the availability and cost of potential properties for a new joint fire station. The appropriate property that provides equitable response times and coverage is critical to the success of this endeavor. Currently, there is a parcel that is on the market that is very close to the Lafayette-Orinda border and an architectural firm has deemed the property appropriate for building and operating a fire station. Governance - A long-term joint venture between two fire districts will require a formal contractual structure. This may be accomplished through an memorandum of understanding or a joint powers agreement. Any agreement will need to address the following: Length of the agreement – 30 to 40 years to offset capital investments in the new fire station Cost apportionment between the two Districts for initial capital and long-term operating cost Provide for Joint ownership and operation of the facility Determine which District will staff the fire station and the impact on labor agreements. Based on a 30-40 year agreement, it should be possible to share the staffing based on rotation of crews, e.g. on a 5-year basis, one District staffing the primary unit and the other jurisdiction staffing subsequent units, etc. Joint Fire Station-16/Fire Station-43 Feasibility Study Page Six Calculate and share the costs of long-term capital costs, e.g. apparatus replacement by establishing and equally contributing to a vehicle replacement fund. Ensuring existing fire district boundaries and sphere of influences remain intact during the life of the agreement. Benefits – The residents of western Lafayette will have service restored and will maintain appropriate fire and EMS protection and response times. When service is restored to western Lafayette, the District would have to replace FS -16 due to the unsafe/unhealthy condition of the facility. The capital costs for this project would be paid completely by the District. Under this the joint initiative, the District is only response for one half of the capital costs of a new fire station. A single engine company assigned to the joint fire station will more closely match resources with service demands and increase productivity and performance levels. Addresses public expectations for greater efficiencies and alternative service delivery methods. As revenue is restored, the District would be able to reallocate the saving from the FS-16/FS-43 initiative and invest them into areas that do not have adequate resources or coverage. Challenges or Concerns - An aggressive time line is needed in order to purchase available property that would provide the most ideal response times between the two communities. While this is a very cost-effective solution that would save each District millions of dollars over the life of the agreement, the District must still identify approximately $1M per year for operating costs in a very challenging fiscal environment. Funding for staffing the new station would not be necessary until mid-FY-2014-2015 or early FY-2015-2016. If the Board of Directors determines that this is a viable and valuable initiative that the District should take advantage of, it may be possible to reallocate existing funds from other fire stations to achieve the goal. Potential zoning and land use issues for the proposed site that need to be addressed. Concerns from neighbors that the proposed site will affect their property values or quality of life. There would be a net reduction of one engine company in the overall capacity/capability of the two Districts. Capacity is an important factor when simultaneous or greater alarm incidents occur. Joint Fire Station-16/Fire Station-43 Feasibility Study Page Seven Summary and Recommendation – The proposal to jointly build and operate a single fire station to replace FS-16 and FS-43 provides a significant long-term solution to provide fire and EMS protection for both communities in a cost effective manner. This proposal provides appropriate levels of protection/service, improves performance and utilization of resources and saves each District millions of dollars over the life of the project. There are a number of fiscal and governance challenges that must be addressed. However, all parties should exercise due diligence and fully evaluate this proposal to ensure the District does not miss an important operational and business opportunity. The long-term strategic benefits and savings warrant formal discussions and negotiations with the Moraga-Orinda Fire District.