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HomeMy WebLinkAboutMINUTES - 04102001 - D.2 D.2 THE BOARD OF SUPERVISORS CONTRA COSTA COUNTY, CALIFORNIA Date: April 10, 2001 On this date, John Sweeten, County Administrator, requested this item be removed from today's Board consideration. No action was taken. `7 TO: BOARD OF SUPERVISORS Contra FROM: FINANCE COMMITTEE Costa DATE: APRIL 10, 2001 co County rA "-- SUBJECT: STATUS REPORT ON CONTRA COSTA COUNTY FIRE PROTECTION DISTRICT'S 5-YEAR STRATEGIC PLAN SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. Accept the status and progress report regarding the Contra Costa County Fire Protection District's five-year strategic plan. 2. Acknowledge the most recent information and forecasts regarding the revenue and expenditures within the Fire District, which assumes that no additional sources of revenue are available. 3. Recommend that the County and the Fire District continue to explore with Cities any available financing options for capital improvement needs, including redevelopment monies and developer fees, with a goal to reduce the current capital budget and redirect monies toward expanded services. 4. Recognize that the revised five-year strategic plan is consistent with the priorities established by the Fire District and adopted by the Board of Supervisors on February 1, 2000. 5. Recognize that the proposed revision focuses on the current need to maintain existing infrastructure, particularly addressing fleet replacement and facility repairs and upgrades. 6. Recommend that the proposed revision be implemented as outlined using a combination expenditure plan of debt servicing and cash outlay. This plan will allow aggressive improvements to be made within the Fire District while maintaining a solvent fiscal position. �j CONTINUED ON ATTACHMENT: X YES SIGNATURE: ✓U^Y 'RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE —APPROVE OTHER SIGNATURE(S). ACTION OF BO N APPROVE AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY TH IS IS A TRUE AND CORRECT C OF AN ACTION TAKEN UNANIMOUS(ABSENT AND ENTER N THE MINUTES OF THE BOAR SUPERVISORS ON THE DATE AYES: NOES: S N. ABSENT: ABSTAIN: TTESTED CONTACT: JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: CAO Contra Costa Fire Protection District Local 1230 BY DEPUTY 7. Direct staff to examine the extent to which the assessment of fire service needs are considered prior to the approval of new development proposals. 8. Direct staff to report back to the Finance Committee within one year on progress of the plan. Include in the report specific objectives that have been met, capital projects completed, updated expenditure and revenue forecasts, and relevant service delivery benchmarks. BACKGROUND: The Board of Supervisors adopted the Contra Costa County Fire Protection District's 5-Year Strategic Plan on August 10, 1999. The Plan was adopted as a framework to prudently plan for the Fire District's needs and was further referred to the Finance Committee for implementation recommendations. The Finance Committee submitted a Board Order that was approved on February 1, 2000 that had several recommendations, one of which was for staff to report ongoing progress to the Finance Committee. On March 5, the Finance Committee reviewed the 5-Year Plan's progress and listened to testimony from the Fire Chief, Contra Costa County Fire Protection District Advisory Commissioners, Local 1230 member, and staff and has been advised the following: The Fire District has made considerable progress toward its strategic priorities, including: ✓ Purchase of five new Type 1 fire engines ✓ Purchase of four new wildland engines ✓ Purchase of eight light vehicles for emergency response and support functions ✓ Purchase of radio communications equipment for a district wide high-band radio system ✓ Purchase of upgraded hardware and consoles for the dispatch center ✓ Purchase of replacement computer hardware for all facilities ✓ Completion of the frame relay network system for all facilities ✓ Completion of numerous capital facility maintenance projects The Fire District has been unable to initiate construction of any new fire stations that were included in the original plan and we currently believe that there is insufficient revenue to support additional fire suppression crews. The impact of this is longer response times to some newly developed areas within the Fire District. In addition, Intelligence gathered over the past year indicates a critical need to complete deferred maintenance projects at existing facilities. For that reason, we propose to increase the funding for capital maintenance projects to a baseline expenditure of$1.5 million beginning in FY 2001/02 and increasing that amount for inflation by 5% annually. This funding will allow for replacement of exterior paving, emergency generators, interior upgrades, and seismic retrofitting. The revised plan still proposes to use debt servicing for replacement of heavy apparatus and for reconstruction of two existing stations beginning in FY 2002/03. In summary, despite being unable to meet the expansion goals outlined in the original strategic plan, the Fire District is making significant progress towards meeting the priorities adopted by the Board. We believe that the revisions proposed will allow us to continue to move forward while also maintaining a sound fiscal plan for the Fire District. 'We will continue to apprise the Board of Supervisor's on the fiscal condition of the Fire District. The Committee recommended that staff continue to work with the cities to secure funding for facilities and equipment. The Committee suggested that if facility and equipment costs can be reduced, funding can be freed up for new stations or expanded services. Additionally, the Committee questioned whether sufficient review was given by city.and County planners, prior to approving new developments, about fire service needs. The Committee requested staff to study this issue, as well as, to determine which cities currently have developer fees in place dedicated to fire services. Contra Costa County Fire Protection District Fire Chief KEITH RICHTER Date: February 28, 2001 To: Finance Committee Federal Glover Donna Gerber From: Keith B. Richter 6 Fire Chief Contra Costa County Fire Protection District Subject: Update on Fire District Strategic Plan Recommendations 1. Accept the status and progress report regarding the Contra Costa County Fire Protection District's five-year strategic plan. 2. Acknowledge the most recent information and forecasts regarding the revenue and expenditures within the Fire District, which assumes that no additional sources of revenue are available. 3. Recommend that the County and the Fire District continue to explore with Cities any available financing options for capital improvement needs. 4. Recognize that the revised five-year strategic plan is consistent with the priorities established by the Fire District and adopted by the Board of Supervisors on February 1, 2000. 5. Recognize that the proposed revision focuses on the current need to maintain existing infrastructure, particularly addressing fleet replacement and facility repairs and upgrades. 6. Recommend that the proposed revision be implemented as outlined using a combination expenditure plan of debt servicing and cash outlay. This plan will allow aggressive improvements to be made within the Fire District while maintaining a solvent fiscal position. 7. Direct staff to report back within one year and advise on progress of the plan. Include in the report specific objectives that have been met, capital projects completed, updated expenditure and revenue forecasts, and relevant service delivery benchmarks. ❑ 2010 GEARY ROAD - PLEASANT HILL, CALIFORNIA 94523-4694 - TELEPHONE (925) 930-5500 - FAX 930-5592 ❑ 4527 DEERFIELD DRIVE - ANTIOCH, CALIFORNIA 94509 - TELEPHONE (925) 757-1303 - FAX 754-8852 ❑ WEST COUNTY AREA - TELEPHONE (510) 374-7070 Background: The Board of Supervisors adopted the Contra Costa County Fire Protection District's five-year strategic plan on February 1, 2000. This five-year strategic plan was predicated on a prior submission that was a joint effort between the Fire District management and Local 1230 that was initially adopted on Aug. 10, 1999. The February 1 Board Order had several recommendations, one of which was for staff to report ongoing progress to the Finance Committee. The intention of the five-year strategic plan was to allow the district to initiate an action plan that is within their existing revenue structure, while continuing to seek additional sources of revenue for ultimate full implementation. Additionally, this plan was designed for the Fire District to be in a positive financial situation at least through fiscal year 2008/09. In short, the District would be able to immediately move forward with their plan, improve service to the community, and to continue its efforts to secure additional revenue to fund unmet needs. In the year that has passed since adoption of the strategic plan, the Fire District has made considerable progress toward its strategic priorities. Included in the accomplishments are: ✓ Purchase of five new Type 1 fire engines ✓ Purchase of four new wildland engines ✓ Purchase of eight light vehicles for emergency response and support functions ✓ Purchase of radio communications equipment for a district wide high-band radio system ✓ Purchase of upgraded hardware and consoles for the dispatch center ✓ Purchase of replacement computer hardware for all facilities ✓ Completion of the frame relay network system for all facilities ✓ Completion of numerous capital facility maintenance projects Unfortunately, the Fire District has been unable to initiate construction of any new fire stations that were included in the original plan and we currently believe that there is insufficient revenue to support additional fire suppression crews. The impact of this will be continued longer response times to some newly developed areas within the Fire District. Intelligence gathered over the past year indicates a critical need to complete deferred maintenance projects at existing facilities. For that reason, we propose to increase the funding for capital maintenance projects to a baseline expenditure of$1.5 million beginning in FY 2001/02 and increasing that amount for inflation by 5% annually. This funding will allow for replacement of exterior paving, emergency generators, interior upgrades, and seismic retrofitting. The revised plan still proposes to use debt servicing for replacement of heavy apparatus and for reconstruction of two existing stations beginning in FY 2002/03. The attached plan assumes that the Fire District revenue will grow at a rate of 4.75% annually and expenditures will increase by 5% annually. Recent increases in health dare benefits, worker's compensation rates, utility costs, and labor costs are driving the operating budget up at a higher than anticipated rate. We will continue to apprise the Board of Supervisor's on the fiscal condition of the Fire District. In summary, despite being unable to meet the expansion goals outlined in the original strategic plan, the Fire District is making significant progress towards meeting the priorities adopted by the Board. We believe that the revisions proposed will allow us to continue to move forward while also maintaining a sound fiscal plan for the Fire District. � a z � 06Ul a + � 0 a �' c io ` > c � � � a civ) d CDLjj a !N a � sM4a �CL CL = a � � m C N m C p (/� c d to 1D [L > v Cc C o �° o a1) fZS o '.9 '° .. 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a S D .5 U 2 d m c u'� u'� a D) (L a d d y cu A m c m c a � � f`o � �� a rnti m 4) �S ?S o d �° 0 0 0 c jo iti a %*vrrua %.aunty Aire rrotect,.n vistrict Genoril Fund 7300 Expenditure And Revenue Projections (Based on Updated Info: 2000-01 Salary 6 Revenue Inarceed®) $-'Year Plan/Adjusted Calculations --March 2001 20001 2061.02 2002-03 2003-04 2004-05 2005-06 Revenue: Realized Rev 84,417,450 57,002,279 59,709,887 82,848,107 85,517,047 68,629,107 Fund Balance-BOY 11,939,940 14 2. 25.532 7,793,433 7,602,570 OY39,398 5.379,823 Total Rev 66,357,390 71,227,811 67,503,320 70,148,677 72,256,445 74,008,930 Expenditures: Operating Exp 49,853,901 55,278,033 58,041,935 60,944,031 63,991,233 67,190,795 Capital Exp 12� Q Q Q Q Q Total Exp w/o 5-Yr Plan 49,982,006 55,278,033 58,041,935 60,944,031 83,991,233 67,190,795 5-Year Plan Fleet Replacement Debt Svc 00-01: 0 FE,0 WU,0 FT 01-02:0 FE,0 WU,0 FT 02-03:4 FE, 2 WU, 1 WT, 1 BS 351,227 351,227 351,227 03-04: 4 FE, 3 WU, 1 TR 331,072 331,072 04-05:4 FE,2 WU, 1 FT 369,627 05-06: 3 FE, 3 WU -06-07: 3 FE, 3 WU 07-08: 3 FE, 2 WU 08-09: 2 FE, 2 WU 09-10: 2 FE,2 WU S-16(1_A,La�Rebuild Debt Svc 162,264 162,264 162,264 162,264 S-70(SP)Site+ Const Debt Svc 0 0 0 170,378 170.378 170.378 Total Debt Service 0 0 162,264 683,869 1,014,941 1,384,568 Fleet Replacement Cash 00-01: 1 WU, 10 LV 405,105 01-02: 7 FE, 7 WU, 2 FT, 5 LV 5,325,076 02-03: 5 LV 121,551 03-04: 5 LV 127,629 04-05: 5 LV 134,010 05-06: 5 LV 140,711 06-07: 5 LV 07-08: 5 LV 08-09: 5 LV 09-10: 5 LV Comms MDSICAD 1,331,269 Comms HB/Consol 408,183 IT Fr Relay,Pdnt Al 104,000 IT Pager-Dispatch 50,000 Exist Facility Capital Mtce 1,182,564 1,500,000 1,575,000 1 65 1,736,438 1.823.259 Total Cash 2,149,852 8,156,345 1,696,551 1,781,379 1,870,448 1,963,970 Total New 5-Yr Plan Exp 2,149,852 8,156,345 1,858,815 2,465,248 2,885,389 3,348,538 Total Exp w/ 5-Yr Plan 52,131,858 63,434,378 59,900,750 63,409,279 66,876,621 70,539,333 Tot Real Rev-Tot Oper Exp by FY 4,563,549 1,724,246 1,667,952 1,602,075 1,525,814 1,438,312 Tot Real Rev-Tot Exp by FY 2,285,592 (6,432,099) (190,863) (863,173) (1,359,575) (1,910,226) Fund Balance-EOY 14,225,532 7,793,433 7,602,570 6,739,398 5,379,823 3,469,597 e 3-Year Plan Adjusted Calculations »March 2001 2006-07 2007-08 2008-09 2009.10 I21pj Revenue: 71,888,989 75,303,716 78,880,643 82,627,473 676,522,697 Realized Rev �4 ,9,597 1,084 (1.807.987) (5,2,00,3831 Fund Balance-BOY 75,358,586 76,388,010 77,072,655 77,427,090 Total Rev tpenditurss:, 70,550,334 74,077,851 77,781,744 81,670,831 659,360,687 OperatMg Exp Capital PUP70,550,3344 74,077,861 77,781,y4� 111,870,8311 050,aoa"702 859,508,792 TOtil Exp w/o&Yr Plan S-Year Plan Fleet Replacement Debt Svc 0 00-01:0 FE,0 WU,0 FT 0 01-02:0 FE,0 WU,0 FT 351,227 351,227 351,227 351,227 2,458,589 To 2012-13 02-03:4 FE,2 WU, 1 WT, 1 8S 331,072 331,072 331,072 331,072 1,986,432 To 2013-14 03-04:4 FE,3 WU, 1 TR 369,627 369,627 369,627 369,627 1,848,135 To 2014-15 04-05:4 FE,2 WU, 1 FT 277,220 277,220 277,220 277,220 1,108,880 To 2015-16 05.06: 3 FE, 3 WU 291,081 291,081 291,081 873,243 To 2016-17 06-07:3 FE,3 WU •264,884 264,884 529,768 To 2017.18 07.08:3 FE,2 WU 213,945 213,945 To 2018.19 08.09:2 FE,2 WU 0 To 2019-20 09-10:2 FE,2 WU 162,264 162,264 162,284 162,264 1,298,112 To 2021-22 S,-16(LA,Laf)Rebuild Debt Svc 170,378 170.378 370,37$ 170,378 1,192,646 To 2022-23 S-70(SP)Site+'Const Debt Svc 1,661,788 1,952,869 2,217,753 2,431,698 11,509,750 11,509,750 Total Debt Service Fleet Replacement Cash 405,105: 00-01: 1 WU, 10 LV 5,325,076 01-02: 7 FE,7 WU,2 FT,5 LV 121,551 02-03: 5 LV 127,629 03-04: 5 LV 134,010 04-05: 5 LV 140,711 05.06: 5 LV 147,747 147,747 06-07: 5 LV 155,134 155,134 07.08: 5 LV 162,891 162,891 08-09: 5 LV 171,036 171,036 09-10: 5 LV 1,331,269 Comms MDS/CAD 408,183 Comms HB/Consoi 104,000 IT Fr Relay,Pdnt At 50,000 IT Pager-Dispatch 1,914,422 2 01 143 2,110.651 2,216,163 73�,. 22 410 Exist Facility Capital Mtce 2,062,169 2,165,277 2,273,542 2,387,219 26,506,752 26,506,752 Total Cash 3,723,957 4,118,146 4,491,295 4,818,917 38,016,502 38,016,502 Total New 5-Yr Plan Exp 74,274,292 78,195,998 82,273,038 86,489,748 697,525,295 697,525,295 Total Exp w/5-Yr Plan 1,338,655 1,225,865 1,098,899 956,642 17,142,010 17,142,010 Tot Real Rev-Tot Oper Exp by FY (2,385,303) (2,892,281) (3,392,398) (3,862,275) (21,002,598) (21,002,598) Tot Real Rev-Tot Exp by FY 1,084,294 (1,807,987) (5,200,383) (9,062,658) Fund Balance-EOY