Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
Report on Status of Fire Services Contract With the City of Monterey 03-04-14

Report on Status of Fire Services Contract With the City of Monterey 03-04-14

Ratings: (0)|Views: 98|Likes:
Published by L. A. Paterson
Carmel City Council Agenda Item
Carmel City Council Agenda Item

More info:

Published by: L. A. Paterson on Mar 01, 2014
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

03/01/2014

pdf

text

original

 
87
To:
From: Submitted by: Subject:
CITY OF
CARMEL-BY-THE-SEA Council
Report
March
4,
2014 Honorable
Mayor
and
Members
of
the
City Council Jason Stilwell, City
Administrator
Gaudenz Panholzer, Fire
Chief Report on
status
of
Fire Services
Contract
with the
City
of
Monterey
and Consider a Resolution
Authorizing
a
Budget
Adjustment
Request
to
True
Up
for
Fiscal Year
2012/2013
Recommendation s):
Accept
report
on status
of
Fire Services
Contract
with the
City
of
Monterey
and approve budget adjustment request
to
True
Up
for
Fiscal Year
2012/2013.
Executive Summary:
Carmel-By-The-
Sea
and
Monterey
have
been in
a
contractual partnership
for
fire
services
for
2 years.
During
that
time while
service
to
Carmel residents
and visitors
has
been good experience
has
identified
s
om
e areas
where
improvements
can be made.
In
order
to
create a better partnership relationship between the City
of
Carmel-By-The-Sea and the City
of
Monterey in the provision
of
Fire
Services changes in the costing model a
re
being implemented to more fairly share
in
joint
costs and
to
improve the ability
to
budget accurately by eliminating the need
to
complete
an
annual true-up.
Analysis/Discussion:
History
Effective January
1
2012, the City
of
Carmel
-B
y-
The-Sea
and the City
of
Monterey entered into
an
agreement whereby Monterey would provide fire servi
ces
to
Carmel.
The
intent
of
contracting for services was primarily focused on enabli
ng
both agencies to realize cost savings
by
sharing services and administrative functions
that
would otherwise be duplicated. A
less
quantifiable benefit
that
is
realized
is
the increased depth
of
resources
that
is
immediately available to participating agencies
to
handle larger emergencies
or
multiple calls for service occ
urr
ing simultaneously.
The
contracted services model
is
not
the only method to achieve these outcomes. A plan
that
has
been considered from the beginning involves the formation
of
a
JPA
by the participating agencies
that
would result in a
truly
regionalized approach to fire service delivery.
The
current contract expires on June 30, 2016.
 
88
Staff
Report
for
ire
Services Contract
Update
March 4
2 14
Pagel
Cost I
ssues
The contract specifies a costing methodology
that
calls
for
Carmel
to
pay the actual cost
of
the Monterey employees
that
are assigned
to
the Carmel fi
re
station. Carmel also pays
for
10.75
of
the cost
of
Fire Headquarters and
1
part
time
Fire Inspector. Camel retains ownership
of
the station and
th
e
two
engines assigned
to
Carmel, and pays the cost
of
maintaining and operating them.
An
administrative fee
of
4.94%
is
added
to
the total cost
to
cover the expenses
of
Human Resources, Finance, Payroll, etc. Under the provisions
ofthe
contract, Monterey provides Carmel
with
a projection
of
the cost for the fiscal year by March
15th
of
each year.
After th
e close
of
the fiscal year, Monterey completes a
tr
ue-up 
for
the previous year
to
adjust the projection
to
reflect the
ac
tual costs incurred. The true-up 
is
due
to
Carmel
by
October 31
5
t
and includes either
an
invoice
for
any amount due
or
a credit
for
any amounts overpaid. Because the assignment
of
personnel
is
an
employee driven proce
ss,
th
e
cos
ts
to
Carmel
can
be
increased
or
decreased based on the seniority
of
(and therefore cost associated with) the personnel that choo
se
to
bid that station.
If
an
employee
that
has
enough seniority {20 year
or
more)
with
Monterey, there
is
a longevity pay cost
passed
though
to
Carmel
for that
employee. Former Carmel employees are
not
eligible
to
receive this benefit until January 2032, thus Carmel may be paying the cost
of
a benefit
that
none
of
their
former employees are eligib
le
to
receive. Long
term
vacancies su
ch
as
extended sick leave or disability may
be
disproportionately assigned
to
Carmel
if
an employee assigned
to
that
station
is
affected.
The
true
-
up
cost
can
be
further
impacted by significant separation
lea
ve payoffs
to
personnel {which Carmel shar
es
at the Headquarter pro-rata rate) and
other
unanticipated cost changes incurred throughout the year
{PER
ra
te
increases, benefit cost changes, negotiated MOU cost changes, etc.). The impact
of
this costing model results in the followi
ng
concerns:
Carmel pays
for
a
benefit
that their
forme
r employees are
not
eligible
to
receive Agencies participating in
the
Monterey
Fire Department system pay
for
di
sp
roportionate shar
es
of
some employee costs
2
 
89
Staff
Report
for
Fire Services Contract Update
March
4
2 14
Page3
Neither Carmel
nor Monterey
can
properly budget
for
the cost
of
the contract • Considerable
time
is spent daily
to
ensure
the
proper
allocation
of
personnel expenses • Significant
time
is spent by administrati
ve
staff completing
the
annual
true-up
FY
2012-13 True-Up The balance due
for the
FY12-13
true-up
was originally calculated
to
be
130,238. This amount was reduced by 7,877.16
to
account
for
the
longevi
ty
pay
not
being charged
to
Carmel bringing the
total
due
to
122,360.84 (actual invoice was 118,324.56 due
to
other
credits owed
to
Carmel by Monterey). The balance due
is
a result
of
the
following major factors: The benefit rate used in
the
creation
of
the projection was 3.4% lower than the actual cost experienced causing
an
increase
in
all personnel costs • Through
the
station assignment bidding process
former
Carmel employees ended up at
other
stations and employees with higher seni
ority
ended up at
the
Carmel station; these employees were at higher pay steps and received longevity pay (removed in
the
adjusted true-up)
As
requested by Carmel staff, overtime was projected at 300 hours per position; this was
lower
than
the
advised 400 hours and
the
actual experience
of
393 hours
An
unusually high separation leave
payoff
for
retiring employees increased
the
share
that
Carmel pays
to
this expense; this does result in a larger
than
anticipated reduction in the leave bank costs
that
Carmel owes
to
Monterey
Service Delivery Issues Carmel-By-The-Sea
has
a response
time
performance measure
for
fire
se
rvice delivery
of
arriving at all emergency (requiring red lights and siren response) requests
for
service
within
5 minutes,
90
of
the
time. This
is

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->