The immediate fiscal impact related to today’s action is filing fees of $4,200 due to LAFCO, and $75 in filing and handling fees related to the Notice of Exemption. The ongoing fiscal impact is cost neutral. The contract provides for services to be paid by the City with additional Measure X funds provided by the County. The total first fiscal year annual reimbursement to the District is anticipated to be approximately $7.5 million with approximately $5.5 million being paid by the City and $2 million received from Measure X funds. On September 20, 2022, the Board of Supervisors approved resolution 2022/332, allocating Measure X funds of $2 million annually through fiscal year 2027/28 with an annual escalator not to exceed 4%. There is no fiscal impact to the District associated with leasing both Fire Station 73 and Fire Station 74. (100% City of Pinole and Measure X funds).
City of Pinole Fire Department History and Current Operations
The Pinole Fire Department (PFD) is an all-hazards municipal fire department providing traditional structural fire suppression, wildland firefighting, Advanced Life Support (ALS) level emergency medical services (EMS), rescue, and hazardous materials response. PFD deploys its apparatus and personnel out of Station 73 located in downtown Pinole. It is a partner agency in the Battalion 7 agreement with the District and the Rodeo-Hercules Fire Protection District (RHFPD), which provides for automatic aid among the three agencies. The department normally operates one fire engine, staffed by a captain, engineer, and firefighter, at least one of which is a certified paramedic. The FY 2022/23 budget for the department is anticipated to be $5.5 million. PFD’s Fire Prevention Bureau provides inspections, code enforcement, plan reviews, fire investigations, and various public education programs. In addition, the Bureau conducts inspections of public and private properties for compliance with its weed abatement ordinance. In 2003, the City opened a second fire station, Station 74, which was shuttered in 2011 due to unsustainable municipal funding sources.
Discussions Concerning a Fire Protection Services Agreement
This past spring, the District and City entered into discussions about the possibility of entering into an agreement whereby the District provides fire, rescue, and emergency medical services to the City. Underlying these discussions was the understanding that the District can provide a level of services within the City that would exceed the current service levels that PFD is able to provide, including reopening Station 74. On September 20, 2022, while discussions were still ongoing, the Contra Costa County Board of Supervisors allocated $2 million from Measure X funds annually, adjusted annually by an escalation factor, through fiscal year 2027/28, to facilitate the proposed partnership for services between the District and the City.
Because the City is not within the District’s service boundary, services under the Agreement may not commence until the District obtains written approval from LAFCO pursuant to Government Code section 56134, which provides that a “public agency may provide new or extended services pursuant to a fire protection contract only if it first requests and receives written approval from the [local agency formation] commission in the affected county pursuant to the requirements of this section” (Gov. Code, § 56134, subd. (b).) The statute also outlines the specific requirements to obtain such approval, including the submission of (1) a Resolution of Application to LAFCO concerning its intention to provide fire protection services to the City; (2) a copy of the fire protection services agreement; (3) an independent fiscal analysis that analyzes current and projected costs of providing fire protection services, (4) a service plan; and (5) an agreement with “each affected public agency and recognized employee organization that represents firefighters of the existing and proposed service providers,” whereby each entity consents to the fire protection services agreement (Gov. Code, § 56134, subd. (d)(1)(A)). LAFCO also requires the submission of an application with these materials.
The following are some of the key elements of documents that have been prepared for submission to LAFCO pursuant to Government Code section 56134:
Fire Protection Services Agreement
As set forth in Government Code section 56134, subdivision (a), the District and City have negotiated the terms of the proposed Agreement for fire protection services, which is provided as Exhibit A to the Resolution of Application. The following summarizes important terms of the proposed Agreement:
- Services. The District will provide all aspects of fire protection and fire prevention services to the City of Pinole, including fire suppression, emergency medical response, hazardous materials response, rescue services, mass casualty incident response, fire safety programs, carbon monoxide alarm installations, CPR training, Community Emergency Response Team training, review of construction and fire protection plans, fire inspections, administration of the City’s adopted fire code and fire investigation services.
- Role of Fire Chief. The District’s Fire Chief is designated as the Fire Chief for the City of Pinole, and holds corresponding responsibilities.
- Apparatus and Equipment. The City will transfer ownership of its apparatus, i.e., vehicles used for firefighting, and equipment to the District, and the District will be responsible for the maintenance, repair, licensing, and registration of the apparatus and equipment. Upon termination of the Agreement, the District will return any of the apparatus and equipment provided by Pinole that remain operational. If the apparatus and equipment is no longer operational, the District will endeavor to lease apparatus and equipment to the City for a reasonable period of time.
- Personnel. While personnel from PFD will be hired by the District through a process outside of the Agreement (as described below), the Agreement provides that the District is not responsible for City retirement obligations or other post-employment benefit of any District employee arising out of their employment with the City, nor is the City responsible for District retirement obligations or other post-employment benefit of any District employee arising out of their employment with the District
- Payment for Services. The Fire Chief will annually prepare a budget that includes direct and indirect costs of services, as well as update a five-year cost projection. Subject to the City and District approval of the budget, invoices for services will be based on the projected costs set forth in the budget, adjusted by agreed upon modifications related to unanticipated costs.
- Funding. Services provided by the District will be paid for by the City and through an annual allocation of Measure X funds in the amount of $2 million, which will be adjusted annually beginning in fiscal year 2023/24 by the lower of the local Consumer Price Index or four percent.
- Term. The Agreement has a five-year term, which may be extended by an additional five-year term with the mutual agreement of the parties. The District will begin providing services on a date agreed to by the parties. Unless extended, the Agreement terminates on June 30, 2028.
- Indemnification. The City and District agree to mutually indemnify each other.
Prior to the submission of the Resolution of Application to LAFCO, the unexecuted version of the Fire Protection Services Agreement currently attached to the Resolution may be replaced with an executed version of the agreement.
Lease Agreements
Under the lease agreements, the City will provide the District with the use of the City-owned fire stations described as Fire Station 73, 880 Tennant Avenue, Pinole, CA 94564, and Fire Station 74, 3700 Pinole Valley Road, Pinole CA 94564, for performance of the services under the Agreement. Responsibilities for maintenance of the buildings and grounds are set forth in the agreements, and the lease agreements are co-terminus with the Agreement.
Fiscal Analysis
Pursuant to the requirements of Government Code section 56134(f), the City, in consultation and cooperation with the District, contracted with an independent consulting firm to conduct a fiscal analysis of the proposed contract for services. The fiscal analysis concludes that the revenue streams available from the City, when combined with Measure X revenues, are sufficient to support the services and structure of the Agreement. The fiscal analysis is provided as Exhibit F to the Resolution of Application.
Service Plan
In accordance with Government Code section 56134, subdivision (e), the District and City have prepared a service plan that details the cost of the new or extended fire protection services, the plan for financing these services and the services to be provided under the Agreement, among other provisions. The service plan is provided as Exhibit E to the Resolution of Application.
Consent to the Agreement
As required by Government Code section 56134, subdivision (d), the District has prepared a consent letter whereby the District, City, Local 1230 and UCOA agree to the proposed Agreement. The agreement consenting to the Agreement is provided as Exhibit G to the Resolution of Application. Prior to the submission of the Resolution of Application to LAFCO, an executed copy of this consent agreement will replace the unexecuted version, which is currently attached.
Next Steps
If the Board approves this board order, the District will work with the City to finalize the Agreement and submit the Resolution of Application and other necessary documentation to LAFCO no later than October 17, 2022. These materials will be submitted with a request that LAFCO consider the application at its meeting on November 9, 2022.
Upon LAFCO’s approval of the District’s application, the District and City will prepare for the service transition. The District and City will arrange for an operational transition date, most likely by March 1, 2023. The District plans to send employment offer letters to non-administrative staff at PFD who wish to continue working. In anticipation of this transition, the District has obtained side letters with Local 1230 and UCOA concerning the conditions of employment.
The Resolution of Application, seeking approval to provide out-of-service area fire protection services to the City of Pinole by mutual agreement, will not be filed. As a result, the District will not contract for the delivery of fire, rescue, and emergency medical services within the City, as described in the Service Plan.
Speakers: Caller 5478; Steven Dorsey, IAFF Local 1230; Pinole Mayor Vincent Salimi.