CC 2019-02-26_10a Direction Related to Fire Services_PP PresentationProvide DIRECTION RELATED TO FIRE SERVICE WITHIN THE cITY OF aRROYO gRANDE
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The Goal
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How Did We Get Here?
Early Partnerships between Arroyo Grande and Grover Beach (2004)
Formation of the Five Cities Fire Authority (2010)
3 Unified Communities
Oceano
Grover Beach
Arroyo Grande
Strategic Plan Adoption (September 22, 2017)
Transition from Reserves to Full-Time Firefighters
Oceano $1,249,521; Grover Beach $2,275,577; Arroyo Grande $3,202,639
Continuous Improvement = Success
Strategic Plan Development
Budget Time-Out – Memorandum of Understanding
Start phased implementation; formula adjustment; April 1st deadline; end date if no agreement; protection to withdrawal; cooperate in splitting assets and liabilities; up to 6 months
extension
Oceano max funding $900,000
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Meanwhile…
Common Community Services District Fire Funding Issue
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CSD’s What are they?
Much like cities, a community came together, not satisfied with service levels being provided, successfully voted to provide specific services; received a share of property tax.
Separate service deliveries from the County
County still holds land use authority
CSD’s are key aspects of the County’s General Plan
Early days were volunteer departments
We the voters, changed the funding rules
Increased requirements but funding remained stagnant
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Study Findings – Oceano CSD
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Good Public Policy
Define the problem
Have to know what you want and need
Develop alternatives
Compare alternatives
Choose best alternative
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Reconfirmed by the City Council (3/18/18)
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Back to us - The Goal
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Oceano Looks for Revenue
Managers meet, talk, listen, understand
Attempting to achieve the goal that we all want
Difficult to negotiate when there is a hard limit of funds
How much does Oceano have and how much can it get?
Property Tax Assessment; $150 per parcel per year =
$400,000 to $500,000
Voter Approval Required in 2020
Max funding about $1,400,000
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New Formula
Oceano Max $1,400,000
Looked at current formula, moved around variables
Found population, calls for service and station levels seem fair on their face and fits the maximum money to be raised by Oceano
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Concerns with the new formula
Prospective in nature
Negotiations based on the maximum amount one partner can pay
Long-term CalPERS exposure with costs based on a formula of land attributes not personnel
County was taking a hands off approach even with their report
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Budget Impacts of the Managers’ Formula
Cost will increase substantially [$103,950 (FY 2019-20), $129,952 (FY 2020-21), $321,083 (FY 2021-22), $414,117 (FY 2022-23)] and will continue into the future, which will require significant
budget adjustments that will likely include layoffs in other departments, reductions in service levels, reduction in capital improvement budgets, or reduction of reserves or a combination
of some or all.
Within the last year we reduced expenditures or increased revenue by $900,000. This included reductions in department budgets, retirement incentives, reduction of positions (layoffs),
pre-payment of CalPERS Safety unfunded liabilities.
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Options
Option #1 - Continue to participate in the FCFA with the current funding formula
Option #2 - Continue to participate in the FCFA with the proposed modified funding formula
Option #3 - If agreement between partner agencies cannot be reached, re-establish an in-house fire department and establish mutual and automatic aid agreements.
Option #4 - If agreement between partner agencies cannot be reached, re-establish the Five Cities Fire Authority with Grover Beach (if they are willing)
Option #5 - If agreement between partner agencies cannot be reached, obtain an outside agency to provide fire service
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New Opportunity
Arrangements are being made to hold a meeting with two County Supervisors, the County CAO, and staff and elected representatives to discuss the situation.
Recommend that we talk and try to see if the County can play a role in this effort.
This meeting will be scheduled before April 1, 2019.
If productive, I would consider using the authority under the MOA for up to a six month extension.
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What if we don’t get there?
We tried everything
Option #1 - Continue to participate in the FCFA with the current funding formula
Option #2 - Continue to participate in the FCFA with the proposed modified funding formula
Option #3 - If agreement between partner agencies cannot be reached, re-establish an in-house fire department and establish mutual and automatic aid agreements.
Option #4 - If agreement between partner agencies cannot be reached, re-establish the Five Cities Fire Authority with Grover Beach (if they are willing)
Option #5 - If agreement between partner agencies cannot be reached, obtain an outside agency to provide fire service
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Direction Appreciated
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100% Arroyo Grande
100% Grover Beach
100% Oceano
33.3% Arroyo Grande, Grover Beach, Oceano
Specialized Apparatus, services, supplies
33.3% Arroyo Grande, Grover Beach, Oceano
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Fine Tuning Example 40/33/28
100% Arroyo Grande
100% Grover Beach
100% Oceano
33.33% Arroyo Grande, Grover Beach, Oceano
Specialized Apparatus, services, supplies
33.33% Arroyo Grande, Grover Beach, Oceano
Arroyo Grande - $2,633,918 Grover Beach - $2,228,700 Oceano - $1,891,018
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How could Oceano get there?
We need all players at the table
$900,000 Current Property Tax
$500,000 Oceano Parcel Tax to voters March 2020
$491,018 County recognition of need for transition funding
$1,891,018 Total
$600,000 County increase if divestiture
$108,982 Savings to county from report
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What are the benefits?
Accomplishes the Strategic Plan
Distribution based on avoiding duplication by splitting costs that can be shared
Full financial responsibility for station teams and a split for executive, command and administrative support
Every community saves in comparison to having to go alone
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Stated Council Policy
First, you have to know what you want
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What is stopping all of us?
Budget concerns - $ 6,753,637
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