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HomeMy WebLinkAboutMINUTES - 10151991 - H.3 H r 3 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on October 15, 1991 by the following vote: AYES: Supervisors Schroder, McPeak, Torlakson, Powers NOES: None ABSENT: Supervisor Fanden ABSTAIN: None ------------------------------------------------------------------ -------------------------------------------------------------------- SUBJECT: Workshop on Fiscal Issues of Fire Districts The Chair convened the workshop on budget issues, finances, and consolidation of fire districts. Phil Batchelor, County Administrator, advised that the scope of the workshop is to review the status and finances of the fire districts that the Board of Supervisors has responsibility for, to look at what has been done to keep the budget in balance, to look at some of the efficiencies that have been implemented, to consider the feasibility of consolidating fire districts, and to consider some additional actions that will need to be taken in the future. The presentations of Mr. Batchelor and Chiefs Cooper, Maxfield, Cormier, and Hein addressed the following issues: - The budget for fire service; - Special District Allocation Fund (SDAF) allocations compared with tax growth for the 1990-1991 and 1991-1992 fiscal years; - Steps taken to eliminate anticipated operations deficit; - Firefighter salary increases; - Fire district capital issues; - Other unfunded demands that could impact fire district finances; - Possible actions to help resolve funding problems; - Consolidation considerations; - Service improvements implemented since the Ryland Study; and - Issues pertinent to specific geographical areas in the County, i.e. , Central County, Central/East County, West County, and East County. In his presentation, Chief Cooper proposed a list of revenue enhancements, such as, implementation of uniform, countywide fire prevention fees ; increasing weed abatement administrative fees as warranted; implementation of user fees for fire code violators when a fire occurs (SB 208, 1987) ; studying the feasibility of implementing an infraction (fine) system for fire code violations; implementation of a standardized cost recovery system for response to alcohol and drug related accidents (SB 735, 1985) ; implementation of a standardized false alarm fee schedule; continuing the pursuit of SB 90 reimbursements from the State; exploring the feasibility of insurance company reimbursement for salvage services; exploring the feasibility of implementing a hazardous materials response fees/fine sharing procedure; and requesting Measure H funding for medical supplies and Opticom. Chief Maxfield presented two policy recommendations: ( 1) Obtain specialized legal counsel to explore obtaining redevelopment funds as a total pass through to the County fire service; and ( 2 ) change the distribution of the Special District Augmentation Fund (SDAF) to reflect actual contribution ratios from fire and non-fire agencies. In commenting on Chief Maxfield' s second policy recommendation, the County Administrator expressed reservations because of potential consequences to the Sheriff ' s patrol in the unincorporated areas and the curtailment of library services. Supervisor Powers inquired as to the status of the request of the West County Fire Protection District for an allocation of $5,aa0 from the Special District Augmentation Fund (SDAF) to study the political consolidation of Richmond and the West County fire district. Mr. Batchelor advised that he had asked a member of his staff to review the capital implications of that proposal and was told that it would take some considerable work. He expressed a willingness to explore the referenced political consolidation if the Board so desired. Supervisor Powers requested- the County Administrator to proceed with this review. Supervisor Schroder requested the County Administrator to also solicit input from the Board of Fire Commissioners of the Orinda and Moraga Fire Protection districts on the possible consolidation of either of these two districts into one, or their possible consoli- dation into the Contra Costa County Fire Protection District. Mr. Batchelor expressed a reluctance to further accelerate the consolidation of paid fire districts and particularly volunteer fire districts into paid districts because of the potential for increased costs without being sustained by a corresponding increase in revenue. He noted that the consolidations that have taken place in the last two years seemed to be appropriate and that future consolidations should be based on growth considerations. The County Administrator spoke on the five recommendations presented on the attachment and on the need to pursue some of the items identified in the presentations such as revenue enhancements, cost efficiencies, and avoidance -of duplication. Mr. Batchelor commented on the need to ba-lance the operational budget for fire service and referred to Recommendation No. 5 which would require a . one-time appropriation of $2 million from capital allocation to operations for the 1991-1991 fiscal year. He commented on the need to repay this fund and suggested that no capital expenditures be made this year pending a full analysis of the .revenue projections for funding capital needs. Mr. Batchelor spoke on the need to repay the $2 million and therefore recommended as top priority items the restoration of the $2 million to the capital budget upon receipt of revenue and the allocation of unanticipated revenues to the fund balance. Mike Price, Contra Costa Firefighters Association, Local 1230, commented on the issues presented and suggested the participation of representatives of Local 1230 in the budgetary process. Russell S. Greenlaw, a firefighter, 643 Abrigo Court, San Ramon, spoke on the need for improvements to the fire service in the West County area. Supervisor Powers spoke on the need to develop a list of identifiable issues that when they ari-se can- initiate a study on the feasibility of consolidation, such as the retirement of senior management personnel, the construction of a new fire station in a particular geographical area, etc. He expressed the opinion that this approach would make the public aware of potential savings through efficiency and cost containment in the delivery of fire protection service. Supervisor Powers referred to the role of the fire service and the County' s Environmental Health Department in responding to incidents involving hazardous materials/substances. Noting that the fire .service is usually the first respondent to such an incident, he commented on the feasibility of the fire service receiving training from Environmental Health so as to initiate mitigation measures to contain or reduce the impact of such an incident. Supervisor Powers suggested that consideration be given to charging HAZMAT or AB 2185 as a funding source for this training and purchase of equipment. Supervisor Powers expressed support for the development of a countywide sick leave and overtime policy for the fire service. He commented on the issue of return to source and of inequities that may be associated with the allocation of funds to various districts particularly as it relates to capitol improvements. He recommended that these issues be further referred to staff. Supervisor Schroder . expressed concern with a proposal relative to the development of a countywide benefit assessment area. He referred to taxing inequities that might arise in the various special districts if such an assessment area was established. Supervisor Schroder advised that he could not support this proposal. Mr. Batchelor commented on the different needs in the various geographical areas of the County. He advised that it would have been more correct to have proposed a countywide assessment review. There was discussion on -encouraging and soliciting assistance from the cities as well as developers in the construction of fire stations. It was noted that the City of Walnut Creek provided financial assistance for the construction of stations Nos. 3 and 7. There was discussion on the impact of redevelopment siphoning off tax .funds from County programs such as the fire service. Supervisor McPeak proposed that as a matter of policy this County should not have to put up any money for construction of fire facilities out of the SDAF but that these facilities should be financed from new growth-. She commented on the need to work in that direction-. In referring to the issue of return to source, Supervisor McPeak noted that residents, within the Contra Costa County Fire Protection . District and particularly those residing in the cities within the geographical boundaries of that Fire District, are receiving in services the equivalent of every tax dollar paid. She, too, called attention to the services being provided to cities by the County and fire districts. Supervisor McPeak referred to those cites with redevelopment agencies who because of the redevelopment process are able to divert tax money away from certain county programs such as the fire service. Supervisor McPeak recommended that the Fire Chiefs' Association develop guidelines relative to a standard recall policy and an overtime policy. She proposed that the Fire Chiefs also present a recommendation relative to the percentage of operating funds that should be targeted for managment support for fire districts. Supervisor McPeak noted that the percentage would be different for smaller districts versus larger districts. Supervisor Fanden- referred to the history of fire districts and the political climate at various times where the public might or might not support consolidation. She noted that this must be a consideration when a consolidation is being proposed. Supervisor Torlakson concurred with Supervisor Powers ' recommendation for the development of criteria for consolidation proposals. He advised that he was in favor of an analysis to consider consolidation of fire service in central and east county because of potential cost savings. Supervisor Torlakson spoke on the need to aggressively work with the cities, particularly Pittsburg and Antioch, to encourage pass through of redevelopment money to fund fire services. He proposed soliciting the support of business, citizens groups, city council members, and the firefighters to develop a political climate that controls redevelopment. Supervisor Torlakson referred to Assembly Bill 1505 (Farr) on the Governor's desk for signature that would- allow for the establishment of assessment districts to fund library services and criminal justice services, which would relieve pressure on the SDAF. He expressed the belief that passage of this legislation could help address the funding- shortfall in the fire service budget. In conclusion Supervisor Torlakson proposed discussions of certain issues presented this day with the City/County Relations Committee. He further supported the scheduling of workshops in the various geographical areas of the County as a means of developing a public awareness for fire service needs. The Chair. noted that there were no other speakers to comment on fire service issues. Therefore, IT IS BY THE BOARD ORDERED that Recommendations Nos. 2, through 5 as set forth on the attachment are APPROVED. IT IS FURTHER ORDERED that: A. The County Administrator is REQUESTED to develop a list of identifiable issues that may initiate a feasibility study on consolidation of certain fire districts. In developing the consolidation criteria, the County Administrator was also requested to analyze consolidation- of fire services in Central and East County (Consolidated and Riverview respectively) for cost savings benefits. B. The County Administrator and Health- Services Director are REQUESTED to review the feasibility of the fire service receiving training from Environmental Health staff in the identification and implementation of mitigation procedures for accidents involving hazardous materials/substances with cost recovery for training and equipment from HAZMAT Funds or AB 2185. C. The County Administrator and the Fire Chiefs are REQUESTED to review procedures for allocating funds to the various fire districts for capital improvements. D. The County Administrator is REQUESTED to develop a policy that would require new growth to finance the construction of fire facilities. E. The Fire Chiefs are REQUESTED to develop guidelines for a standard countywide recall policy, an overtime policy, and a sickleave policy. I F. The County Administrator is REQUESTED to work with the cities, particularly Pittsburg and Antioch, to encourage pass through of some redevelopment money to fund fire service in their respective areas. G. County Representatives on the City/County Relations Committee are REQUESTED to present for discussionwith other Committee members pertinent fire service issues presented this day. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervl ors on the date shown. CC: County Administrator ATTESTED: "e"G ` t—,' l� / PHIL BATCHELOR,Clork of the Board .City/County Relations Cte. of Supervisors and County Administrator Fire Chiefs' Association Health Services Director ev Deputv Table of Contents 1. Summary of SDAF Allocations 90/91 - adopted budget 2. Chart showing budget, SDAF and tax growth - 90/91 3. Summary of SDAF Allocations, 91/92 - Initial Allocations 4. Chart showing budget, SDAF and tax growth - 91/92 S. Steps taken to eliminate anticipated operations deficit 6. Firefighter Salary Increases 7. Fire District Capital Issues 8. Other Unfunded Demands That Could Impact Fire District Finances 9. Possible Actions to Help Resolve Funding Problems 10. Consolidation Considerations 11. Service Improvements Implemented Since Ryland Study 12. Central County 13. Central/East County 14. West County 15. East County 16. Summary of Recommendations SPECIAL DISTRICT AUGMENTATION FUND SUMMARY OF PROPOSED ALLOCATIONS FIRE DISTRICTS ONLY FISCAL YEAR 1990-1991 1000 800 87.50 12.5% FIRE DISTRICTS AVAILABLE FUNDS TOTAL OPERATIONS CAPITAL TOTALS $33,783,423 $25,602,474 $1,384,856 Allocation August 14, 1990 County Fire Districts $22,198,218 Independent Fire Districts $ 1,035,868 Affirmative Action $ 16,027 General Administration $ 112,129 Fire District Consultant Services $ 10,000 Total Allocation $23,372,242 $ 0 ---------- -------- ---------- -------- Balance $ 2,230,232 $1,384,856 1 Budget, Property Tax & SDAF Growth 1989-1990 to 1990-1991 15% 14% 13% L V 11% 100 9% 0 8% o h' x� 6% 5% 4% 5 3% 0 2% 0 1% Base Year 1989-1990 1990-1991 Budget requirements grew by $5,228,000 but revenues grew by only $3,783,000 2 SPECIAL DISTRICT AUGMENTATION FUND SUMMARY OF PROPOSED ALLOCATIONS FIRE DISTRICTS ONLY FISCAL YEAR 1991-1992 100% 80% 87.50 12.5% FIRE DISTRICTS AVAILABLE FUNDS TOTAL OPERATIONS CAPITAL TOTALS $35,786,752 $25,004,353 $3,572,050 ---------- ---------- --------- ---------- ---------- --------- Initial Allocation County Fire Districts $25,404,995 Independent Fire Districts $ 1,117,663 Affirmative Action $ 16,828 General Administration $ 117,735 Non-Fire Districts Total Budget Allocations $26,657,221 $ 0 Balance ($ 1,652,868) $3,572,050 Reserve for Litigation 0 464,000 Net Balance-Reserve for Contingencies ($ 1,652,868) $3,108,050 3 Budget, Property Tax & SDAF Growth 1990-1991 To 1991-1992 150 14% 13% 12% 11% 10% 9� 0 8% 0 7% ti0' x 6% 5% 4 4% GRO�NX 3% 2% VIVO?�R�� 1% 0 Base Year 1990-1991 1991-1992 Budget requirements grew by $5,015,000 but revenues grew by only $2,457,000 4 STEPS TAKEN TO ELIMINATE ANTICIPATED OPERATIONS DEFICIT Current Deficit $1,652,868 Estimated Salary Increase 1,592,000 Estimated Year End Operations Deficit $3,244,868 Steps to Balance Budget: Budget Reduction Plans- County Districts -$1,270,249 Independent Districts -$ 55,883 Adjusted Deficit $1,918,736 Reallocation of funds from the $3,572,050 capital fund $2,000,000 Net Estimated Year End Balance $ 81,264 5 Firefighter Salary Increases 1984 to 1991 Effective Date Percentage Increase 1-1-1991 9.9 1-1-1990 8.3 1-1-1989 4.4 4-1-1988 3.9 7-1-1987 2.0 1-1-1987 5.0 8-1-1986 1.5 6-1-1986 7.7 1-1-1985 6.8 Average Annual Increase 7.10 Total Percentage Increase 49.5% Compounded Actual Increase 6i.7% 6 Fire District Capital .Issues Available Funds Beginning Balance - SDAF Capital Acquisition Fund $ 84,000 1991-1992 Allocation 1,108,050 Total Available Funding $ 1,192,050 Current Short-Term Unfunded Capital Demands: Routine Annual Capital Requests $6,366,251 Communications Equipment $ 616,777 Firefighting/Emergency Medical Equipment 140,477 Training Aids and Office Equipment 556,578 Buildings, Grounds and Vehicle Maintenance 1,259,140 Vehicle Replacements and Additions 3,793,279 Riverview Administration Building Replacement 1,500,000 Rodeo-Hercules Station Replacement - Rodeo 1,000,000 West County Station Replacement - San Pablo 1,000,000 Contra Costa County: Station 3 - Walnut Creek 387 ,000 Station 21 - Pleasant Hill/Martinez 681,000 Station 22 - Crystal Ranch/State College Site - Concord 1,032,000 Total Current Capital Needs $11,966,251 Estimated Capital Shortfall $10,774,201 7 Other Unfunded Demands That Could Impact Fire District Finances ♦ San Ramon Valley Fire Protection District/American River Issue ♦ Contra Costa Mosquito Abatement District/American River Issue ♦ Pacific Bell Property Tax Refund ♦ Other Utility Property Tax Refunds ♦ New Station Staffing: Contra Costa County - Station 21 - Station 22 Riverview - Station 87 8 Possible Actions To Help Resolve Funding Problems ♦ Implement Recommendations of County Fire Chiefs' Association Operations Review Committee Regarding Cost Saving Measures and Revenues ♦ Additional Operations Budget Reductions ♦ Adopt Countywide Benefit Assessments Adopt Countywide Development Fees Limit Fire Station Construction Costs By Using Modular (Relocatable) Buildings ♦ Staff New Unfunded Stations By Rotating Existing Firefighters Through The Stations Of The District (Revolving Station Closure Procedure) ♦ Link Future (After 1992) Salary Adjustment Formulas To Revenue Fluctuations 9 Consolidation Considerations ♦ In 1981 the County commissioned a Fire Service Study known as the Ryland Report ♦ The study looked at consolidation in addition to other fire service issues ♦ It is suggested that the Ryland Report be used as a starting point to define potential current consolidation issues ♦ The following outlines deals with consolidation issues on an area by area basis 10 Economies, Efficiencies and Service Improvements Implemented Since Ryland Study Areas of County West Central East 1. Administration/Budget A. Capital Improvement Committee Yes Yes Yes B. Operations Review Committee Yes Yes Yes C. Development fees Partial Partial Yes D. Benefit assessment fees Partial No Partial 2. Basic Service Level: A. Increased number of three-person engine companies Yes Yes N/A 3. Communications: A. Multi-jurisdictional dispatch Yes Yes Yes B. Shared operating costs Yes Yes Yes C. Automatic mutual aid system Yes Yes Yes 1. Intra County 2. Inter County (six bay area counties) D. Countywide 911 system Yes Yes Yes E. Standardized fire station/ vehicle numbering system Yes Yes Yes F. Upgraded CAD systems Partial Yes Yes G. Expanded radio frequencies Yes Yes Yes H. Standardized fire response Yes Yes Yes 4. Emergency Medical Services A. Pre-arrival information No Yes Yes B. First responder defibrillators (1/1/92) Yes Yes Yes C. Medical disaster caches Yes Yes Yes D. Improved first responder training Yes Yes Yes E. Countywide Multi-Casualty Plan Yes Yes Yes F. Citizens CPR training Yes Yes Yes S. Facilities: A. New stations Yes(1) Yes(1) Yes(3) B. Relocated stations Yes(1) No No C. Expanded communications centers Yes Yes N/A D. Land acquisition (support No Yes No facilities) E. Station sites Yes Yes Yes F. Replacement/removal of underground fuel tanks Yes Yes Yes 11 Areas of County West Central East 6. Fire Prevention and Inspection: A. Services to volunteer districts' No N/A Yes B. Application of Uniform Fire Code Yes Yes Yes C. Updated County General Plan Yes Yes Yes D. Fire safe roofing Partial Yes Partial E. Sprinklers required for buildings over 10,000 sq.ft. Yes Yes Yes F_ Permit and inspection fees Partial Partial Yes G. Residential smoke detectors required Yes Yes Yes H. Expanded public/education programs Yes Yes Yes 7 . Safety: A. OSHA compliance: 1. Self-Contained Breathing Apparatus Yes Yes Yes 2. Personal Alarm Devices Yes Yes Yes 3. Safety Clothing Yes Yes Yes B. Station exhaust removal systems Partial Partial Partial C. Asbestos mitigation Partial_ Partial No D. NFPA Standards review Yes Yes Partial E. Traffic signal contaol devices (Opti-Com) Partial Partial Partial F. Hazardous materials training and equipment Yes Yes Yes 8. Self Insurance: A. Workers' Compensation Yes Yes Yes B. Liability Yes Yes Yes C. Casualty Yes Yes Yes Central County Agencies• r ♦ Contra Costa County (County District) ♦ Moraga (County District) ♦ Orinda (County District) ♦ San Ramon Valley (Independent District) Ryland Recommendations: ♦ Do not consolidate San Ramon Valley and Contra Costa County ♦ Do not consolidate Moraga and Orinda ♦ Consolidate Moraga and Orinda with Contra Costa County Status: ♦ In 1983, the Board of Supervisors considered and rejected the consolidation of Moraga and Orinda with Contra Costa County because of staff cost increases County Administrator Recommendations: ♦ Direct staff to continue to explore the feasibiity of consolidating Moraga and Orinda if the Board of Supervisors believes that there are additional program efficiencies that can be derived over and above those already implemented. 12 Central/East County Agencies: ♦ Contra Costa County (County District) ♦ Riverview (County District) Ryland Recommendation: ♦ Because of geographic separation and political considerations, do not consolidate Contra Costa and Riverview Status- ♦ No specific proposal to consolidate has ever been made County Administrator Recommendations: 4 Because the Ryland Report identified only minimal savings, it is recommended that the two districts not be merged 13 West County Agencies• ♦ El Cerrito (City) ♦ Kensington (Independent District) ♦ Pinole (City) ♦ Pinole (County District) ♦ Richmond (City) ♦ Rodeo-Hercules (Independent District) ♦ West County (County District) Ryland Recommendations: ♦ Combine into one entity as a joint powers authority Status: ♦ Functional consolidation has occurred in the areas of management, communications, training and clerical services ♦ Actual consolidation has not occurred because of political issues and lack of incentives County Administrator Recommendations: ♦ Continue to support productivity enhancements through elimination of duplication ♦ Encourage cooperation among all fire agencies in west county 14 East County Agencies- ♦ Bethel Island (County District) ♦ Byron (County District) ♦ East Diablo (County District, formerly Brentwood and Eastern) 0 Oakley Ryland Recommendations: ♦ Gradual conversion of volunteer districts into fully-paid districts ♦ Annex developing areas to paid districts Status: ♦ Both alternatives have been and continue to be implemented ♦ Brentwood and Eastern were merged several years ago ♦ The former Tassajara (County District) was annexed to the San Ramon Valley District ♦ The Board has approved the annexation of Byron by East Diablo 0 Some developing areas have been annexed to Riverview County Administrator Recommendations: ♦ Allow east County districts to continue to evolve as they have over the last ten years and only consider consolidation where it appears to be economically and politically feasible 15 SUMMARY OF RECOMMENDATIONS 1. Accept public testimony as part of this workshop presentation on fire district budgets, finances and consolidation. 2. Direct staff to pursue any additional efficiency measures that may result from today's workshop. 3. Direct the County Administrator to work with the f ire chiefs to carefully monitor and control expenditures for all fire district budgets. 4. Continue to freeze the filling of all non-critical positions until each district's budget reduction plan has been implemented. S. Authorize the one-time appropriation of $2 million from the capital allocation to operations for the 1991-1992 fiscal year and direct the County Administrator's Office to work with the fire chiefs to return to the Board by March 31, 1992, with a proposal to fund future, operations and capital needs in order to operate the fire district functions at an appropriate level in future years. 16