FROM:
Finance
SUBJECT:
Title
Amendment No. 8 to the San Bernardino County Fire Protection District Agreement 18-354 for Fire Protection and Emergency Medical Services for Fiscal Year 2023-24 in the amount not to exceed $42,903,405.
End
RECOMMENDATION:
Recommendation
Approve Amendment No. 8 to San Bernardino County Fire Protection District Agreement 18-354 for Fire Protection and Emergency Medical Services for Fiscal Year 2023-24 in the amount of $42,903,405.
End
COUNCIL GOALS:
• Improve public safety by maximizing fire and emergency medical service resources.
• Practice sound fiscal management by producing timely and accurate financial information.
• Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.
• Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.
DISCUSSION:
Since its formation in 2008, the Fontana Fire Protection District (District) has contracted with the San Bernardino County Fire Protection District (County) for fire protection and emergency medical services. Services as proposed for fiscal year 2023-24 will be provided through 7 fire stations throughout the City of Fontana, with an eighth station coming online towards the end of 2023. The proposed contract amount for 2023-24 is $42.9 million which represents an increase of 7.3% as compared to the 2022-23 contract and is summarized below.
Salaries and Benefits
Total staffing costs as proposed are $35.1 million, which represents an increase of 6.6% or $2.2 million as compared to 2022-23, and fund 139.81 full-time equivalent personnel. The total number of positions of 139.81 reflect a net increase of 3.02 positions primarily due to the anticipated opening of Fire Station No. 81 in late 2023 and the addition of a second battalion for the District.
All position costs include anticipated labor memorandum of understanding (MOU) increases and cost of living adjustments (COLA). In 2022-23 all suppression positions were awarded a total of 7% across the board salary increases which included the most recent adjustment of 3% in February 2023. Additionally, in April 2023, the salary ranges for all suppression positions were increased by 2.5%. Although there are not any additional required COLA’s for 2023-24, both the Battalion Chief and Captain classification salary ranges will be increased by another 2.5%. In instances where the change in average cost per position is less than 7%, it is assumed there were staffing changes that resulted in a position being filled by a less costly employee as compared to the prior year unless otherwise stated. Average cost per position includes salary, benefits, and retirement unfunded accrued liability (charged at 37.81% of base salary).
Notable staffing changes include:
Chief Officers
• Battalion Chief - total costs are increasing by 25.6% due to the addition of 1.03 positions and MOU increases, resulting in a 7.6% increase in average position cost as compared to the prior fiscal year. The District’s allocation for a Battalion Chief position is 34.73% of the total costs. The proposed contract includes an increase of total allocated positions of 1.03 which reflects the District’s portion of 15 total positions, up from 12 positions in the previous year.
Suppression/Specialized Teams
• Captains - total costs are increasing by 15.9% due to the addition of three positions and MOU increases, resulting in a 7.7% increase in average position costs as compared to the prior fiscal year.
• Engineers - total costs are increasing by 9.5% due to the addition of three positions and MOU increases. Due to staffing changes the proposed contract reflects a 0.2% decrease in average position costs as compared to prior fiscal year.
• Fire Fighter EMT - total costs are decreasing by 13.8% due to the deletion of three positions and are offset by MOU increases. Due to staffing changes, the proposed contract only reflects a 0.6% increase in average position costs as compared to the prior fiscal year.
• Fire Fighter Paramedic - total costs and average position costs are only increasing by 0.8% due MOU increases offset by staffing changes as compared to the prior fiscal year.
Fire Prevention Services
• Senior Plans Examiner - total costs are decreasing by 17.8% and the average position cost is decreasing by 15.1% due to staffing changes as compared to the prior fiscal year.
• Assistant Fire Marshall - total costs are decreasing by 110.2% and the average position cost is decreasing by 52.4% due to a benefit change from safety to non-safety and a reduction in overtime as compared to the prior fiscal year.
• Fire Prevention Specialist - this position reflects a contract correction as previous years the City was charged for a Fire Investigator II at $258,931 for 2022-23 in error rather than a Fire Prevention Specialist at $146,856 for a net contract savings of $112,075.
Emergency Services Officer - there are no proposed costs as this position is currently being considered by the District separate and apart from the contract.
Services and Supplies
Services and Supplies as proposed are $4.6 million, which represents an increase of 24% or $888,957 as compared to 2022-23. Notable increases include the following:
• Training - increase of 63% or $437,592
• Turnout Gear Replacement - increase of 32.7% or $142,501
Services and supplies primarily consists of:
• CONFIRE ($1.15 million) - communications, dispatch, computer information systems support (IS), and geographic information systems (GIS) services.
• Training ($1.13 million) - fire suppression and emergency medical services training.
• Overhead ($1.15 million) - allocated overhead for County central services.
• Turnout Safety Gear ($578,652) - annual new and replacement turnout gear.
• General Operating Expenses ($522,275) - other operating expenses.
Fire Station Expenses
Fire Station expenses as proposed are $1.8 million, which represents an increase of 29.4% or $399,705 as compared to 2022-23. Notable increases include:
• Station No. 81 - increase of 368.8% or $157,136 as 2023-24 is the first year the station will be fully staffed and operational.
• Vehicle Maintenance Charges (all stations) - increase of 49% or $189,000 based upon actual history.
Fire Prevention Services
Fire Prevention Services and Supplies of $311,290 reflects a 15.7% or $58,020 decrease as compared to the prior fiscal year due to one-time costs in 2022-23 for a new vehicle and decreases in software and general liability costs. Services and supplies primarily funds Office of the Fire Marshall administrative overhead in the amount of $285,383 with balance of $25,907 for general operating expenses.
Administrative Overhead
Administrative Overhead of $1.5 million reflects a 1.4% or $21,066 increase as compared to the prior fiscal year. This represents the District’s percent allocation of SBCFPD Administrative Overhead including $474,436 in services and supplies and $1.0 million of 68 administrative positions.
CPI-U Adjustment
Per the District’s contract with SBCFPD, Section 3 Compensation (b), the annual increases in administrative costs related to the execution of the contract can not exceed 6%. As proposed, these costs increased by 17.1% and the CPI-U Adjustment of $434,941 reduces the costs to reflect a 6% increase.
Five-year Contract Overview
The average contract cost increases over the five years has been approximately 7.9%, as compared to the average increase in staffing of 2.5%. The total increase in costs since 2019-20 is 41.39%. Despite the average direct fire station expense being $220,101, when all associated direct and indirect costs are considered, the estimated average total cost per fire station is $5,363,000.
Tolling Agreement
The District and SBCFPD are parties to a tolling agreement, where the time period of October 1, 2022, until June 30, 2024, shall be excluded from, and not be counted in, the computation of time for the purposes of any time-based limitations or defenses arising out of or in connection with a dispute over certain pension costs that are payable by the Fontana Fire Protection District to the San Bernardino County Fire Protection District,
pursuant to Agreement No. 18-354.
FISCAL IMPACT:
The fiscal impact associate with the approval of this item is $42,903,405 and is included in the fiscal year 2023-24 budget.
MOTION:
Approve Amendment No. 8 to San Bernardino County Fire Protection District Agreement 18-354 for Fire Protection and Emergency Medical Services for Fiscal Year 2023-24 in the amount of $42,903,405.