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APPROVE RESOLUTION TO EXECUTE OPERATING AGREEMENT BETWEEN SAN JOAQUIN COUNTY REGIONAL FIRE DISPATCH AUTHORITY AND CITY OF STOCKTON FOR THE PROVISION OF EMERGENCY AND NON-EMERGENCY DISPATCH SERVICES AND ADMINISTRATIVE SUPPORT
recommended action
RECOMMENDATION
It is recommended that the City Council approve and adopt a resolution authorizing the City Manager to enter into an Operating Agreement between the San Joaquin County Regional Fire Dispatch Authority (“SJCRFDA”); comprised of the Lathrop-Manteca Fire District, City of Lodi, City of Manteca, City of Tracy, and City of Stockton for the provision of emergency and non-emergency fire dispatch services. 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
A 2013 Stockton Threshold Analysis report recommended that the City improve efficiency through seeking regional partnerships in providing fire and emergency dispatch services. Specifically, the report recommended the creation of a Joint Powers Authority comprised of regional governmental agencies to govern and provide for fire and emergency dispatch services. In 2015, based upon this recommendation, the San Joaquin County Regional Fire Dispatch Authority was created.
A Joint Powers Authority (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 inception date of the JPA was October 19, 2015 when Notice of JPA documents were filed with the California Secretary of State Office.
Under the provisions of the JPA Agreement, its Board of Directors has recommended that the newly formed JPA enter into an agreement with the City of Stockton to provide contract services to SJCRFDA for emergency and non-emergency dispatch services through the Stockton Fire Department’s Emergency Communications Division (“ECD”), continuing to operate as a Secondary Public Safety Answering Point for fire and fire-related incidents. As a part of the Operating Agreement, the City of Stockton will provide Information Technology support necessary for obtaining and the maintenance of dispatch center systems and equipment. The City of Stockton, under the Chief Financial Officer, will also serve as SJCRFDA’s Finance Director-Treasurer/Controller. This Operating Agreement is now brought to Council for review and approval.
Background
At the April 15, 2014 meeting, Stockton City Council received the Management Partners “Stockton Regional Fire Dispatch Threshold Analysis” report (Attachment A) and accepted the recommendations under Motion 2014-04-15-1501. The report 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 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 through a 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 SJCFRDA’s Board of Directors. Subsequently, City Council accepted Resolution 2015-06-23-1208 authorizing the City Manager to enter into a Joint Exercise of Powers Agreement between the Lathrop-Manteca Fire District, City of Lodi, City of Manteca, and City of Stockton (Attachment B). The City of Tracy subsequently had to defer entry into SJCRFDA, but joined effective July 1, 2016. The SJCRFDA was created October 19, 2015 when Notice of Exercise of Joint Powers documents were filed with the California Secretary of State.
Present Situation
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 have not been available to these agencies. Under the direction of the City Council and City Manager’s Office, the development of the San Joaquin County Regional Fire Dispatch Authority 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 Agreement, its Board of Directors has recommended that the newly formed JPA enter into an agreement with the City of Stockton to provide contract services to the SJCRFDA for emergency and non-emergency dispatch services. This Operating Agreement between SJCRFDA and the City is now brought to Council for approval. As a part of the Operating Agreement, the City of Stockton, under the Chief Financial Officer, will serve as SJCFRDA’s Finance Director-Treasurer/Controller. Through the Fire Department, limited administrative services will be provided.
SJCRFDA is 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 initial formation of the SJCRFDA was established with all original members for a 10 year period beginning October 19, 2015. The City of Tracy became the fifth member agency effective July 1, 2016.
The City of Stockton Fire Department is the Contractor providing dispatch services, and also will purchase emergency and non-emergency dispatch services through SJCRFDA as a member agency. SJCFRDA will fully reimburse the City of Stockton for the cost of operating the ECD.
The management of the ECD remains with the City of Stockton, under the Fire Department’s Fire Chief. Dispatch services to be provided by the City will comply with performance standards, as adopted by the SJCRFDA, such as those promulgated by National Fire Protection Association (“NFPA”), Association of Public Safety Communications Officials (“APCO”), Insurance Services Office (“ISO”), etc. The ECD Manager will provide performance reports and business information to the JPA Board.
The City will provide facilities, equipment, IT support and personnel, along with administrative support for such services to SJCFRDA, its member agencies, and any contracted public/private entities. The City’s Fire Chief has overall responsibility for administration of the Agreement, and the City’s Chief Financial Officer will also serve as the Finance Director/Treasurer-Controller for financial record keeping, custody of funds, cash management, budgeting, reporting, procurement, and will oversee audits.
The Operating Agreement will be effective July 1, 2016, and may be terminated on June 30 of any year by the SJCRFDA or the City by providing twelve months written notice.
FINANCIAL SUMMARY
The annual budget associated with the Operating Agreement between the City and SJCFRDA for dispatch and administrative services is incorporated in the City’s Fiscal Year 2016-17 Annual Budget. Under the proposed Operating Agreement, the City will be reimbursed by SJCFRDA for all costs (including associated administrative costs) of providing dispatch services to its members and contracted agencies. A separate Fund 042 will record and track all expenditures associated with ECD services.
ECD’s operating expenditure budget will be the major component of SJCFRDA’s annual budget. SJCFRDA’s budget will include projected revenues from each member agency and contracting entities. In addition to ECD’s operating expenses, indirect costs, capital equipment and improvements, and contingency budget will be incorporated in SJCFRDA’s annual expenditure budget. Revenues and expenditures of the SJCRFDA will be recorded and tracked separately under a newly created Special Fund 678.
Total annual expenditures of the SJCFRDA will be allocated among the member agencies and contracting entities in the amounts necessary to cover SJCFRDA’s preliminary annual budget including necessary reserves in accordance with a cost-allocation formula adopted by the SJCRFDA Board. Each member and any contracted entity’s share will be determined and evaluated annually based on the following cost allocation formula associated with prior calendar year’s Dispatch Service Calls (DSC):
Total # of DSC of Member or Entity = % Share of Contribution
Total # of DSC of all Members & Entities
This cost allocation formula will allow full payment of costs associated with dispatch services provided to each member or outside entity including indirect costs, administrative services and overhead. Each member agency will pay 1/12 of its share of the annual budget each month to the SJCFRDA. The provisions of the JPA agreement allow any city or public entity to join as members of the SJCRFDA in the future. This cost allocation formula allows each member agency’s percentage share of contribution to decrease as the number of agencies increase.
City of Stockton’s estimated General Fund contribution to ECD operations prior to the increased dispatch service rates and new contracts was approximately $2.1 million. During the first year of implementation of this Agreement, there is no significant change in the City’s General Fund contribution.
As recommended in the Threshold Analysis Report, the City will need a significant investment in technology and equipment to replace and upgrade obsolete and deteriorating dispatch equipment to continue providing dispatch services for the City of Stockton and other contracting agencies. Technology and equipment upgrades and replacements are budgeted in the City’s Internal Service Fund and incorporated with ECD’s annual budget.
In addition, the City has temporarily assigned a Fire Captain position to the ECD to assist in the transition to a Regional Fire Dispatch Center. This City expense for this position will be evaluated at the end of FY 2016-17 and will be discussed with the SJCRFDA Board for possible inclusion in SJCFRDA’s future annual budgets.
Attachment A - Stockton Regional Fire Threshold Analysis Report
Attachment B - Joint Exercise of Powers Agreement