COUNCIL DATE AGENDA ITEM

4/01/08 6B

CITY COUNCIL MEETING
Olympia, Washington April 1, 2008

Approval of Fire Station 4, Training Center, and Fire Apparatus Funding Process & Timeline __________________________________________________________________
CITY MANAGER’S RECOMMENDATION: Option 1. Move to place a voted excess levy of $16.5 million for a 20 year term on the August 19, 2008 ballot to fund a Fire Station, Training Center, and Fire Apparatus, and, Authorize the use of Council Goal monies to pay for the $40,000 in election costs. Staff will bring the necessary ordinances on consent calendar at a later date.

COMMITTEE OF CHAIRS RECOMMENDATION

Committee members asked that this matter should be brought to the whole Council for discussion. Also, there should be a meeting set-up with a few members of the Lacey Fire District board and some Council members to discuss how both entities could develop and maintain a training center. _________________________________________________________________________________________ STAFF CONTACT: ORIGINATED BY: PRESENTERS AND OTHERS NOTIFIED: Larry Dibble, Fire Chief 790.2720 ldibble@ci.olympia.wa.us George Ziesemer, Asst. Chief 753.8472 gzieseme@ci.olympia.wa.us Larry Dibble, Fire Chief Steve Hall, City Manager Larry Dibble, Fire Chief Mike Simmons, President IAFF Local 468 Jim Broman, Fire Chief Lacey Fire District 1. 2. 3. 4. 5. 6. 7. 8. 9. Committee of the Chairs March 4, 2008 Minutes. Council Meeting February 5, 2008 Consent item G. Study Session Minutes February 28, 2006 Page 2. Study Session Minutes Finance Committee June 14, 2005 Page 1 Special Study Session Minutes July 9, 2002-Item 2. Fire Training Center Background. Summary Data Sheet for Cost in both 2008 & 2009 dollars. Fire Station – North Elevation a. Fire Station - Floor Plan b. Fire Station - Project Budget Training Center - Photograph a. Training Center - Budget

ATTACHMENTS:

BUDGET IMPACT/ SOURCE OF FUNDS:

Election Cost is estimated at $40,000 which is not currently budgeted. Council goal monies could be a possible funding source. Current balance is $145,000. Project cost $16.5 million in 2009 dollars through a citizen vote. The impact of an excess levy on a $250,000 home assuming today’s interest rates and 2008 Assessed Value (AV) would be $53.55 per year for 20 years.

PRIOR COUNCIL/ COMMITTEE REVIEW:

July 9, 2002, June 14, 2005, February 28, 2006, February 5, 2008, March 4, 2008, please see “attachments section” for detailed information on each Council and Committee review.

BACKGROUND:

Introduction The Fire & EMS Master Plan was created through the cooperative efforts of the Olympia Fire Department’s staff, City Manager, City Council, neighborhood and business representatives, and officials from other government and emergency response agencies with which the Department works. The planning process incorporated a comprehensive analysis of the City’s response data, economic data, and growth projections within the community. In order to ascertain appropriate service and performance levels, the plan used comparisons from peer jurisdictions and comparable communities. The plan also examined national standards and best practices to ensure that its performance objectives were appropriate. Historically, the Olympia Fire Department has substantially met increasing demands for its emergency services. The Department has also attempted to meet increased demand for non-emergency services such as public education programs. The Department has done this through its dedicated workforce. However, increasing demands for service has taken its toll on the Department’s ability to provide sufficient, timely and economical services. The Plan was forward-looking, projecting future service demands. Projected service demands were developed using trend analysis of call demand, growth projections in the Urban Growth Management Area, demographic analysis of the City, economic analysis of the City and surrounding areas, and the need for specialty services. Projected service demands were then compared with available resources in order to develop future resource needs. Because the Department’s response times are increasing, the training center is in essence non-existent and fire apparatus fund is under funded, the Plan includes additional resources to help ensure acceptable emergency response times – getting the right resources to an emergency in a timely manner, a standard of the industry training center and adequate fire apparatus.

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Links to Other Projects or Facilities Integral part of the current emergency response system as detailed in the Fire Master Plan and the City Council Goals of Sustainability and Effective Government. Description/Cost Fire Station including Fire Apparatus estimated cost is $11.2 million based on 2009 cost. Fire Apparatus purchased would be two Engines and a Ladder Truck. This action would insure current and future funding requirements for Fire Apparatus. The standard service life of Fire Apparatus is 25 years which is a combined period serving frontline for 13 years and reserve status for 12 years. Staffing Cost for the Fire Station is an estimated $1.3 million annually based on 2008 cost. Fire Training Center estimated cost is $5.25 million of a $10.5million optimal Center based on 2009 cost. This amount is 50% of the total cost for the Fire Training Center that will be built in a module approach. The Center would be a cooperative effort with the Lacey Fire District which would contribute the remaining modules for the total Training Center. The Olympia contribution would allow for construction of the necessary module to conduct fire suppression skills and rescue skills training in structures which would be a significant improvement over current conditions that training is conducted. Location Fire Station location in the vicinity of Lilly & Stoll Road -District 4. Fire Training Center in the vicinity of Fones & 5th. Justification (Need/Demand) The Fire Department delivers service to citizens in distress by responding directly to the scene of an incident or an emergency. To be effective, firefighters must: • • • Arrive at the scene of the emergency quickly. Be well-trained professionals. Be well equipped.

Arrive at the scene quickly: The Fire Department response time is currently 11 minutes 19 seconds City wide 90% of the time. In Northeast Olympia it is 12 minutes 5 seconds. Response time City wide is impacted by the fact that units are drawn to the high call volume area of the Northeast creating a void in the unit’s primary response district. Optimal response time for both fire and emergency medical incidents is 6 minutes 90% of the time as adopted by City Council. The goal is to intervene before a fire reaches flashover point, or a patient is no longer able to be resuscitated. Please refer to Chapter 4 of the Fire Master Plan for a detailed explanation and clear justification.

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http://www.olympiawa.gov/citygovernment/codes/firemasterplan/def ault.htm Be well-trained: The Fire Department does not have a training center adequate to train firefighters to the demands they are required to perform. The current center is woefully inadequate to be considered a fire training center. It is a flat piece of paved area with a number of makeshift props. The result is our firefighters cannot train adequately for the challenges that are presented to them, resulting in unsafe conditions. Be well equipped: The Fire Department Fire Apparatus Fund is adequately funded to only 2007 but then lacks funding for future purchases. The cause of this was the purchase of a Fire Engine and Ladder Truck outside of the funding system in 1995. We have currently extended the service years of all fire apparatus beyond the standard of the industry. In spite of an aggressive fire equipment maintenance program, we can not prevent the apparatus from wear and tear, requiring additional apparatus. The need is to infuse a one time $2.3 million into the Fire Apparatus Fund to adequately finance current and future needs. Implications of not funding package/ballot loss Failure to add a fire station and staffing will result in continued response time increases City wide. The result will be significant delays in the intervention of critical medical care resulting in increased suffering and death. Delays in the intervention of firefighters before flashover in structures will result in: • • • • • • larger fires additional risk to the firefighters use of more equipment loss of assessed value including possible business loss and significant impact on the environment through products of combustion released into the atmosphere increased fuel use and diesel exhaust in pumping at larger fires use large volumes of potable water to contain and extinguish the fires

Failure to adequately train firefighters will result in potential dangerous conditions when firefighters are confronted with situations they have been unable to physically train for because they lack adequate facilities to simulate conditions. Failure to adequately train firefighters is poor risk management practice. Failure to adequately finance the Fire Apparatus Fund will result in fire apparatus being used beyond a reasonable time frame and much longer than the recommended standard of the industry. Older apparatus becomes more unreliable despite an exceptional maintenance program. It simply becomes old technology and is difficult to operate and more costly to maintain. Operating unreliable fire apparatus is not a good risk management practice. Comprehensive Plan and Functional Plan(s) Citations Comp Plan: Chapter 13 Public Safety, Section II Fire Protection, Page 14

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Fire Master Plan: Response time Goals, Page 71, Proposed Fire Station and Staffing, Page 95 The Fire Master plan can be viewed in it’s entirety at: http://www.olympiawa.gov/citygovernment/codes/firemasterplan/def ault.htm Ongoing Operations & Maintenance Costs for Facilities Fire Station estimated ongoing cost is $45,000 annually. Fire Training Center estimated ongoing cost is $30,000 annually. Major System Replacements for Fire Station and Training Center include: • HVAC • Compressors • Hot water tanks • PPE decon systems • exhaust extractor • roofs replacement • phone system • paging alerting system • floor covering • emergency power Projected cost is $395,000 beginning in 2015 and ending in 2024 based on the Station and Training Center being built in 2008. Action by Council to date: • Established the Fire Department response time standards on April 27, 2004. • The City Council authorized the purchase of property for the Fire Station. All purchases will be final by March 31, 2008.

ANALYSIS AND OPTIONS: Option 1: Package the Fire Station, Training Center, and Fire Apparatus into a single voted excess levy. Place the voted issue on the August 19, 2008 ballot. Implications 1. Fire Station $8.9 million Funds provided would construct a Fire Station that will, when in operation, reduce the response time within the Response District to the City’s Standard. Additionally, it will result in current response units staying in their assigned Districts, most of the time, rather than being drawn out for coverage in areas providing coverage to the new Fire Station’s District.

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2. Training Center $5.3 million City Council directed staff to establish a partnership with one or more fire agencies to share the cost for a standard of the industry Training Center. This was accomplished by partnering with the Lacey Fire District who has agreed to enhance the center by an estimated $5 million if they can secure funding and share in operations. 3. Fire Apparatus $2.3 million Funds provided would add two Fire Engines and one Ladder Truck to the existing fleet. The expansion to a four Station configuration would require a frontline and back up Engine. Additionally, a front line Ladder Truck would be provided which would allow the current 1995 Ladder Truck to go into reserve and serve both Olympia and Lacey Fire District who has agreed to refurbish the current Ladder Truck in exchange for use when their Ladder Truck is in for repairs and service. Funds for Fire Apparatus would result in the City being able to maintain the current budgeted amount of $88,500 annually. 4. Staffing $1.3 million annually Twelve new FTEs are required to staff the fourth Fire Station. In this option staffing would be provided for in the following configuration; four positions from reorganization of Fire Department structure. The eight remaining positions would be funded through reoccurring money in the general fund as identified in 2008, through added money provided by the State Fire Protection Contract and other new sources of reoccurring money such as revenue generated through use of the Training Center by other Fire Departments and Fire Districts. Summary Combining the Fire Station, Training Center, and Fire Apparatus issues for vote by the citizens would result in a $16.5 million excess levy request. This amount over a 20 year period would result in the owner of a $250,000 home paying $53.55 annually. It is recommended that the excess levy issue be placed on the August 19th election. This would require an expenditure of $40,000 that is not currently budgeted. To place the issue on the August 19th election would require the appropriate legal work and notification to the County by July 4, 2008. This election would require 40% turnout from the last General Election. An excess levy requires a 60% affirmative vote to pass. The recommendation for staffing is to allow staff to bring methods and ways to fund the required positions without seeking for additional taxes. Also the election costs of $40,000 is recommended to be funded from Council goal monies. Option 2: Package the Fire Station, Training Center, Fire Apparatus and Staffing into two voted issues. Place the Capital construction and Fire Apparatus on an excess levy. Place the funding for staffing on a voted levy lid lift. Place the voted issues on the August 19, 2008 ballot.

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Implications: 1. Option 2 is the same as Option 1 with the exception that funding for the staffing of the fourth Station would be through a voted “Levy Lid Lift.” This option would require a citizen vote which requires a simple majority (over 50%) to pass. A levy lid lift would generate $6,000,000 at full value of which $1.3 million would be required for staffing of the fourth Fire Station. The cost for an owner of a $250,000 home would be $277.50 annually. The first 20 years the homeowner would pay $53.55 for the excess levy for the capital funding, and $277.50 for the levy lid lift for a total of $331.05. Option 3: Package the Fire Station, Training Center, and Fire Apparatus into a single voted excess levy. Part of the option but not part of the voted excess levy would be Council increasing the Business and Operations (B&O) Tax for staffing the fourth Station. Place the voted issues on the August 19, 2008 ballot. Implications: 1. Council previously considered an option of increasing the Business and Operations (B&O) tax for staffing the fourth Station. The option would have raised the B&O up for all categories to 2/10th of 1% of gross revenue for an estimated total of $2,000,000. Currently all business are at 2/10th of 1%, except for services which are at 1/10th of 1%. A B&O tax increase requires a vote of the City Council. Option 4: Option 1 or 2 but placing the issue(s) on the November General election. Implications: 1. Selection of Option 1,2 or 3 and placing the issue on the November General election would have a financial impact in two ways: a. The cost for the election would be significantly less at approximately $15,000 than the estimated $40,000 for the August election. b. If an affirmative vote was given by the citizens there would not be sufficient time to place the change on the 2009 Ad Valorem Property Tax Ordinance that is filed with the County. This would delay the project a year and result in increased construction cost.

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