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HomeMy WebLinkAboutItem #11CITY OF LAKE LLSINORE DREAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GRANT YATES, CITY MANAGER DATE: NOVEMBER 12, 2013 SUBJECT: DISCUSSION REGARDING FIRE STATION 60 Recommendation Provide direction to the City Manager to: 1. Calculate direct and indirect costs, including overhead, on a sliding scale based on the time and resources committed to fire service calls in the City of Canyon Lake 2. Invoice the City of Canyon Lake for fire service calls on a monthly basis Background On Tuesday, November 5, the City of Canyon Lake's fire protection tax, Measure D, was defeated. With its defeat, Fire Station 60 is projected to close as of December 5, 2013. This date is based on a letter written by the City of Canyon Lake to Cal Fire in August 2013 requesting that staffing be suspended at Fire Station 60 within 120 days. With the closure or a reduction in service at Fire Station 60, the City of Canyon Lake will not have the resources available to provide mutual aid to other surrounding communities, which in effect removes them from the regional fire protection system. In the City of Lake Elsinore, public safety is the number one priority. Many residents pay up to $450 a year to have the highest levels of service possible. Therefore, it is essential that residents are not subsidizing services for another community and that they continue to receive the highest levels of service. The City of Lake Elsinore can use standard fire service cost recovery methodology, specifically Assistance by Hire (ABH), to bill the City of Canyon Lake for all direct and indirect costs for fire services. This is a standard practice in the industry and staff recommends this approach if Station 60 closes or if there is a reduction in services provided by the station. AGENDA ITEM NO. 11 Page] of 2 Canyon Lake Fire Station 60 November 12, 2013 Page 2 of 2 Discussion Based on the actions Lake Elsinore invoices call based upon ABH. Fire Station 60 on Dec and support from the services rendered. by the City of Canyon Lake, staff recommends that the City of the City of Canyon Lake for each fire and /or emergency services With the possible elimination of staffing or reduction of service at :ember 5, the City of Lake Elsinore has the authority under ABH Riverside County Fire Department to invoice Canyon Lake for The City of Lake Elsinore will create monthly invoices in coordination with the Riverside County Fire Department, who will generate a monthly list of actual calls for service in the City of Canyon Lake using their Computer Aided Dispatch System. City staff will then utilize this list to determine all direct and indirect costs based on the resources allocated and the type of incident to create monthly invoices for the services rendered in the City of Canyon Lake. Fiscal Impact Staff recommends a sliding scale be applied based on the calls for service generated. For example, a simple medical aid call will be billed differently than a structure fire call, which would require more resources. In addition to the direct costs for personnel, there are many indirect costs that are related to the total cost of service. Some of these indirect costs include dispatch, equipment, supplies, medic support, hazardous material incident management, fleet support, communication and IT support, and Battalion Chief oversight. In addition, there are also indirect costs related to operating a fire station such as utilities, facility support costs, maintenance, and administrative overhead. Based on the information above, the estimated hourly cost for one hour of service will be approximately $1,000. This cost will increase based on the complexity and number of resources allocated to each call for service. Prepared by: Nicole Dailey Management Analyst Approved by: Grant Yates City Manager Page 2 of 2