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JOINT EXERCISE OF POWER AGREEMENT BETWEEN LATHROP-MANTECA FIRE DISTRICT, CITY OF LODI, CITY OF MANTECA AND CITY OF STOCKTON CREATING THE SAN JOAQUIN COUNTY REGIONAL FIRE DISPATCH AUTHORITY
recommended action
RECOMMENDATION
It is recommended that the City Council approve and adopt a resolution authorizing the City Manager to enter into a Joint Exercise of Power Agreement between the Lathrop-Manteca Fire District, City of Lodi, City of Manteca, and City of Stockton creating the San Joaquin County Regional Fire Dispatch Authority (SJCRFDA). It is further recommended that the City Manager take appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The City of Stockton retained Management Partners Consulting in 2013 to review and provide recommendations for gaining possible efficiencies in Fire Department Dispatch Services. The December 2013 Management Partners "Stockton Regional Fire Threshold Analysis" (Attachment A) recommended that the City seek regional partnerships in providing fire and emergency dispatch services. Specifically, recommendation #6 of the report recommended the creation of a Joint Powers Authority (JPA) comprised of regional governmental agencies to govern and provide for fire and emergency dispatch services.
The City Manager's Office tasked the Fire Department to survey potential members of a regional fire dispatch joint powers authority (JPA) to determine cost sharing, performance objectives and governance structures that would need to be achieved to contract with the Stockton Emergency Communications Division (ECD) as the provider of fire dispatch operations.
A JPA review and formation group was formed with the fire chiefs from the Lathrop-Manteca Fire District, City of Lodi, City of Manteca, City of Stockton and City of Tracy.
The results of the work performed by the group culminated in the development of the Joint Exercise of Power Agreement between all of the above agencies except the City of Tracy. The City of Tracy is currently evaluating a later entry date into the JPA. If approved by all four governmental agencies, the JPA would be effective 30 days from adoption by all four agencies and after the documents have been filed with the California Secretary of State Office.
It is currently contemplated, and the recommendation from the formation group that the City of Stockton provide contract services to the JPA for emergency and non-emergency dispatch services under an Operating Agreement between the JPA and the City. This Operating Agreement would be brought to Council separately for review and possible approval at a later date after the JPA has been formed and approves the agreement. As a part of the Operating Agreement, the City of Stockton will serve as the JPA's Finance Director-Treasurer/Controller and provide JPA business management services. There are no changes to City personnel staffing levels and the costs to administer the JPA business functions are incorporated into the annual Dispatch Center operating budget.
DISCUSSION
Background
At the April 15, 2014 Council Meeting, City Council received the Management Partners "Stockton Regional Fire Dispatch Threshold Analysis" report and accepted the recommendations under Motion 2014-04-15-1501.
The City of Stockton retained Management Partners in 2013 to review and provide recommendations for gaining possible efficiencies in the Fire Department Dispatch Services. The December 2013 Management Partners "Stockton Regional Fire Threshold Analysis" recommended that the City seek regional partnerships in providing fire and emergency dispatch services. Specifically, recommendation #6 of the report recommended the creation of a Joint Powers Authority (JPA) comprised of regional governmental agencies to govern and provide for fire and emergency dispatch services.
The City Manager's Office tasked the Fire Department to survey potential members of a regional fire dispatch joint powers authority to determine cost sharing, performance objectives and governance structures that would need to be achieved to contract with the City of Stockton Fire Department Emergency Communications Division (ECD) as the provider of fire dispatch operations.
A JPA review and formation group was formed with the fire chiefs from Lathrop-Manteca Fire District, City of Lodi, City of Manteca, City of Stockton and the City of Tracy. The group was facilitated by Management Partners, under contract with Lathrop-Manteca Fire District. The JPA review and formation group met over a 10-month period to review the possible benefits of forming a JPA and then develop a governance structure that meets the needs of the regional communications dispatch partnership that conforms to the individual agency requirements for equal representation on the JPA Board of Directors.
The City of Stockton ECD currently provides contract dispatch services to the Lathrop-Manteca Fire District, City of Lodi and City of Manteca. These agencies have been staunch advocates for a regional governance model that provides for the delivery of emergency and non-emergency dispatch services. These agencies desire fair representation in the matters of policy and fiscal decisions. Under the current contract terms, those decision elements are not available to these agencies. Under the direction of the City Council and City Manager's Office, the development of the JPA governance model conforms to these decision elements while also providing the City of Stockton equal opportunity in matters of emergency and non-emergency dispatch service policy and fiscal guidance.
Under the provisions of the JPA, the JPA review and formation group will be recommending that the newly formed JPA contract with the City of Stockton to provide contract services to the JPA for emergency and non-emergency dispatch services under an Operating Agreement between the JPA and the City. This Operating Agreement would be brought to Council separately for review and possible approval at a later date after the JPA has been formed and approves the agreement. As a part of the Operating Agreement, the City of Stockton will also serve as the JPA's Finance Director-Treasurer/Controller and provide JPA business management services.
Present Situation
The proposed JPA formation under provision of Article 1, Chapter 5, Division 7, Title 1 (commencing with section 6500) of the Government Code of the State of California creates a separate governing authority to administer emergency and non-emergency dispatch services for member agencies. The JPA will be a legal public entity that is separate from the City of Stockton and all the member agencies. As a separate public entity, it will be responsible for its own debts, liabilities and obligations. The City of Stockton will be a party to the JPA for a minimum of a ten (10) year period. There are currently four agencies initiating the JPA. The JPA, under a future Operating Agreement with the City of Stockton, would contract to the City of Stockton ECD for dispatch services.
The JPA governance structure provides for equal representation by each of the voting member agencies. The City of Stockton would appoint the Fire Chief as the City Representative to the JPA and Lathrop-Manteca Fire District, City of Lodi and City of Manteca would each appoint their fire chiefs as their representatives to the JPA Board. The JPA Board membership will be limited to the four original agencies and can include additional qualifying public agency members such as the City of Tracy, if they are a public agency and meet specific criteria that will be established by the JPA Board. Any further expansion of the JPA Board must be approved by the majority of the JPA Board members. The JPA Board must conform to the Ralph M. Brown Act (Chapter 9 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (ยงยง 54950-54961) and all legal and financial requirements of a governmental agency in the State of California.
The JPA would be responsible to provide emergency and non-emergency dispatch services to member agencies and any contracting entities. The JPA review and formation group will be recommending that the newly formed JPA contract with the City of Stockton provide emergency and non-emergency dispatch services under an Operating Agreement between the JPA and the City. The City of Stockton Fire Department would contract for emergency and non-emergency dispatch services through the JPA as a member agency. The members of the JPA are essentially reimbursing the City of Stockton for the cost of operating the ECD.
The JPA Board could engage additional fire agencies for contract dispatch services. If other agencies become interested, the JPA Board would be responsible to confer with the City of Stockton to study any cost impacts to providing services to additional agencies. If the additional JPA contracting agencies cause an increase in costs to occur, the JPA would assess appropriate fees to the subsequent contract agencies to provide sufficient funding for those dispatch services.
The City of Stockton retains ownership of the ECD building, communications equipment and employment of the employees working in ECD. The management of the ECD remains with the City of Stockton, under the Fire Department's Fire Chief. The services provided by the ECD to the JPA will be performance based in accordance to the national standards for fire and emergency medical services and standards of the Advanced Life Support Agreement with the San Joaquin County Emergency Medical Services Agency. The ECD Dispatch Center Manager will be the Chief Operating Officer (COO) for the JPA and provide performance reports and business information to the JPA Board.
Once formed, the JPA Board of Directors will form a Transition team to work with the member agencies to develop the formal processes and agreements for an orderly transfer or sharing of any equipment, assets or funds as deemed necessary for the efficient operations of the JPA member organizations.
FINANCIAL SUMMARY
There are no major costs associated with the approval of the Joint Exercise of Powers Agreement (Exhibit 1 to Resolution). Any initial costs associated with the development of the JPA and the Operating Agreement will be shared by the member agencies as determined and approved by the Board.
The Joint Exercise of Power Agreement will be effective thirty (30) days from adoption by all four governmental agencies and after the documents have been filed with the California Secretary of State Office. A San Joaquin County Regional Fire Dispatch Authority (Authority) preliminary budget for the initial fiscal year will be adopted within sixty (60) days after the first meeting of its Board. The budget will include projected revenues and general administrative expenses, operating expenses and necessary reserves of the Authority. Operating revenues and expenditures will be allocated among members of the Authority in the amounts necessary to cover the annual budget in accordance with a cost-allocation formula adopted by the Board.
The budget of the Authority for the initial fiscal year will be presented to the City Council with a subsequent recommendation for contracted services with the City of Stockton's Fire Department Emergency Communications Division (ECD) for emergency and non-emergency dispatch services under an Operating Agreement between the Authority and the City of Stockton. Under the proposed Operating Agreement, ECD's operating budget will be the basis of the Authority's annual budget. Additionally, administration and overhead, indirect costs, capital equipment and improvements, contingencies and reserves will be incorporated in ECD's annual budget. Each member and any outside entity's share of contribution to cover the Authority's annual budget will be determined and evaluated annually based on the following cost allocation formula associated with Dispatch Service Calls (DSC):
Total # of DSC of Member or Entity = % Share of Contribution
Total # of DSC of all Members & Entities
City of Stockton's estimated General Fund contribution to ECD operations prior to the increased rates and new contracts was approximately $2.1 million. If City of Tracy joins as a member of the JPA, under the proposed Operating Agreement, City of Stockton General Fund contribution is estimated to decrease by 18% or $380,000 based on a first full year projection. On the other hand, without City of Tracy, GF contribution is estimated to decrease only by 10% or $200,000.
This cost allocation formula will allow full payment of costs associated with dispatch services provided to each member or outside entity including the new budget items such as capital equipment. As recommended in the Threshold Analysis Report, if the City of Stockton continues providing Dispatch Services for the SFD and other contracting agencies, significant investment in technology and equipment is necessary to replace and upgrade obsolete and deteriorating dispatch equipment. The FY2015-16 approved ECD budget includes an allocation of approximately $500,000 for necessary computer dispatch equipment/technology replacement and upgrades. Details of the Operating Agreement and the budget will be presented separately to the Stockton City Council for approval in fall, 2015.
Attachment A - Stockton Regional Fire Threshold Analysis Report