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SD. 3

To:	Contra Costa County Fire Protection District Board of Directors
From:	Daryl L. Louder, Chief, Contra Costa County Fire Protection District
Date:	December 6, 2011

Contra

Costa

County

Subject:

Professional Services Contract with Tramutola, LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/06/2011

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Director
Gayle B. Uilkema, Chair
Mary N. Piepho, Director
Karen Mitchoff, Director
Federal D. Glover, Director

Contact:

Jackie Lorrekovich, 925-941-3312

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 6, 2011
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Fire Chief of the Contra Costa County Fire Protection District to execute a professional services contract with Tramutola, LLC to provide public outreach and education consultation regarding a possible parcel tax measure for the period of December 1, 2011, through August 12, 2012.

FISCAL IMPACT:

Consulting fees will be paid out of the Contra Costa County Fire Protection District’s general operating fund. The contract limit is $115,000. Based on an earlier parcel tax survey, conducted in December 2010, a successful measure can be expected to generate new revenue between $12.5 million and $16.5 million per year at the highest rate tested and between $8.2 million and $10.9 million per year at the lowest rate tested.

FISCAL IMPACT: (CONT'D)

BACKGROUND:

Like many fire districts in the State, the Contra Costa County Fire Protection District (District) is heavily dependent on property tax revenues to fund its operations. With the economic recession and associated steep decline in the housing market, the funding the District has traditionally relied upon for providing emergency response services has declined significantly. In response to the worsening financial conditions, the District has enacted a number of measures to cut costs and improve efficiencies, including de-staffing a fire company, reducing salaries and benefits, eliminating positions, reducing discretionary spending in all areas, deferring capital purchases, improvements and maintenance, and eliminating select programs. Despite these efforts, the District is still projecting a multi-million dollar shortfall for fiscal year 2011-12 as well as ongoing deficits in future years. Without dramatic cuts to programs and service levels and/or securing additional revenues, the District will deplete its entire reserve fund in fiscal year 2012-13.

At the September 28, 2010, Board of Supervisors meeting, the Board recommended that the District consider revenue enhancements, including a parcel tax. In December 2010, a parcel tax survey was administered to voters in the District. The results of the survey indicated that a parcel tax has a good chance of success if placed on the ballot during a high turnout election and accompanied by well-organized, effective public outreach.

Public outreach is intended to educate District property owners and voters regarding the purpose of a parcel tax measure, including the current financial situation and challenges and the future use of funds from a successful tax measure. State law allows District officials and employees to provide information and analyses to help voters determine the impacts of such a measure. Using a professional services consultant with tax election expertise will assist the District in developing an effective messaging platform to deliver the above-referenced information to the voters who currently benefit from District services and may be impacted by future service level reductions.

CONSEQUENCE OF NEGATIVE ACTION:

The District and the residents in the District’s service area will not benefit from the consultant’s expertise.

CHILDREN'S IMPACT STATEMENT:

Not Applicable