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APPROVE A MOTION AUTHORIZING FIVE-YEAR AGREEMENTS FOR STOCKTON FIRE DEPARTMENT TO PROVIDE FIRE AND EMS DISPATCH SERVICES TO REGIONAL PARTNERS
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve five-year dispatch service agreements with the City of Manteca, the Lathrop-Manteca Fire Protection District, the South San Joaquin County Fire Authority, and the City of Lodi; and
2. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion
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Summary
The Stockton Regional Dispatch Center provides regional fire, Emergency Medical Services (EMS), and ambulance dispatch services to public safety agencies throughout San Joaquin County. Existing dispatch service agreements with the City of Manteca, Lathrop-Manteca Fire Protection District, South San Joaquin County Fire Authority, and City of Lodi expire on June 30, 2026.
The proposed five-year agreements will allow the Stockton Fire Department to continue to provide dispatch services to each of these agencies. Approval of the proposed agreements will generate $1,749,968.23 in revenue during Fiscal Year (FY) 2026-27.
DISCUSSION
Background
On June 22, 2021, Resolution 2021-06-22-1205 authorized the City Manager to enter into Emergency Dispatch Services Agreements between the City of Stockton and City of Lodi, City of Manteca, South San Joaquin County Fire Authority and Lathrop-Manteca Fire Protection District effective July 1, 2021. These agreements will expire June 30, 2026.
Present Situation
Under the current agreements, the annual cost of the Dispatch Center is divided by the total dispatch activity from the preceding calendar year to establish a per-dispatch rate. Participating agencies are then billed quarterly based on actual dispatch activity during the billing period. As a result, annual costs and revenues fluctuate based on actual call volume.
The proposed agreements replace the per-dispatch billing model with a proportional cost allocation methodology. Under the revised approach, each participating agency's share of total dispatch activity from the preceding calendar year is used to establish a proportional cost allocation for the upcoming fiscal year. That percentage is then applied to the projected Dispatch Center operating budget for the upcoming fiscal year to determine each agency's annual cost allocation. The annual allocation is billed in quarterly installments and remains fixed throughout the fiscal year.
The revised methodology maintains a direct relationship between cost responsibility and system utilization while providing greater budget certainty for both the City and participating agencies. Because Dispatch Center operating costs are predominantly fixed and are not materially impacted by routine fluctuations in dispatch activity, the revised methodology more accurately reflects the cost of providing dispatch services than a per-dispatch billing model.
The City Council previously approved a dispatch services agreement with the CENCAL Fire and EMS Authority pursuant to Motion No. 2026-04-28-1206 in the amount of $5,122,631.38.
The FY 2026-27 allocations were developed using $9,276,302.03 in Dispatch Center costs applicable to the proposed agreements and Calendar Year 2025 dispatch activity. Based on those factors, FY 2026-27 allocations are as follows:
Total anticipated FY 2026-27 Dispatch Center revenue from contracted agencies is $6,872,599.61. Beginning in Fiscal Year 2027-28, and annually thereafter, cost allocations will be updated annually to reflect changes in operating costs and dispatch activity.
FINANCIAL SUMMARY
Approval of the proposed agreements will generate $1,749,968.23 in revenue during FY 2026-27. Combined with the previously approved agreement with the CENCAL Fire and EMS Authority, total anticipated Dispatch Center revenue from participating agencies is $6,872,599.61. Revenue will be recognized in the Fire Department General Fund Emergency Communications Subfund Account 4010-000-446012-100-130-20-40-000-000-.
Attachment A - Agreement with City of Manteca
Attachment B - Agreement with City of Lodi
Attachment C - Agreement with South San Joaquin County Fire Authority
Attachment D - Agreement with Lathrop-Manteca Fire Protection District