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DISPATCH SERVICES AGREEMENTS WITH CITY OF LODI, CITY OF MANTECA, SOUTH SAN JOAQUIN COUNTY FIRE AUTHORITY AND LATHROP-MANTECA FIRE DISTRICT
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RECOMMENDATION
It is recommended that the City Council approve and adopt a resolution authorizing the City Manager to enter into Emergency Dispatch Services Agreements between the City of Stockton and each of the governmental agencies: City of Lodi, City of Manteca, South San Joaquin County Fire Authority and Lathrop-Manteca Fire District for dispatch services through the City of Stockton Fire Department Emergency Communications Division effective July 1, 2021.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
Council Resolution 2020-09-15-1105 approved the termination of the Amended and Restated Joint Exercise of Powers Agreement (JPA) for dispatch services between the City of Stockton (COS), City of Manteca, City of Lodi, South San Joaquin County Fire Authority (SSJCFA), and the Lathrop-Manteca Fire District (LMFD) effective June 30, 2021. It is in the best interest of the City to terminate the JPA as this will allow the City to have better financial and operational oversight and control over the Emergency Communications Division (ECD). With the dissolution of the JPA, it is necessary for the City to enter into an agreement with each of the above stated agencies to continue providing dispatch services in their respective jurisdictions.
It is recommended to approve and adopt the attached agreements to provide fire and emergency medical call receipt and dispatch services to City of Lodi, City of Manteca, SSJCFA and LMFD effective July 1, 2021, for two years with automatic one (1) year successive renewals, for up to three years. Each of the agencies will compensate the City of Stockton for dispatch services beginning July 1, 2021, at a per call rate for all billable calls dispatched by the City’s Fire Department ECD.
DISCUSSION
Background
On June 23, 2015, the COS adopted Resolution 2015-06-23-1208 authorizing the City Manager to execute a Joint Exercise of Power Agreement between the City of Stockton, LMFD, City of Lodi, and the City of Manteca, creating the San Joaquin County Regional Fire Dispatch Authority (SJCRFDA) to provide for regional emergency and non-emergency dispatch and related services. The SJCRFDA was created on October 19, 2015, when Notice of Exercise of Joint Power documents were filed with the California Secretary of State. City of Tracy subsequently had to defer entry into SJCRFDA and later joined the SJCRFDA effective July 1, 2016.
The SJCRFDA Board amended and adopted a Second Amended and Restated Joint Exercise of Power Agreement on December 19, 2018 adding SSJCFA (Formerly City of Tracy) as an official voting member of the JPA and the City Council authorized the City Manager to execute the Second Amended and Restated Joint Exercise of Power Agreement on May 21, 2019.
On September 15, 2020, the City Council adopted resolution 2020-09-15-1105 approving the termination of the JPA, an action designed to improve the City’s financial and operational oversight and control over ECD.
Present Situation
The purpose of the JPA was a stop gap to overcome the funding shortfall post-bankruptcy for critical infrastructure upgrades in the City’s ECD. The initial vision of the JPA was that it would become an independent agency; however, due to infrastructure needs and payroll expenses, a self-sustaining JPA was unable to be priced competitively, and none of the JPA agencies had the start-up funds necessary for a stand-alone JPA.
On October 1, 2019, Governor Newsom signed Senate Bill No. 438 (SB 438) into law. SB 438 impacts the regulatory authority of local emergency medical services agencies over 911 call processing and Emergency Medical Dispatch (EMD). The Bill’s purpose was to clean up language in the health and safety code regarding the regulatory authority of the local Emergency Medical Services Agency. Each agency now has the right to have the live 911 caller routed to their designated dispatch center and determine what units will respond. As a result, all calls will be routed to the Stockton dispatch center for call processing and EMD no later than December 31, 2021.
The JPA’s annual cost distribution is based on each member’s percentage share of total call volume and COS is responsible for approximately 66% of the JPA’s annual operating costs. However, all the JPA members have equal voting rights, which allows COS only one vote out of the five members and therefore only 20% influence in the JPA’s decision making process. In addition, COS performs virtually all the operations and management of its dispatch center and a considerable amount of time is dedicated to reporting to the JPA Board. With City Council’s approval to terminate the JPA last September 15, 2020, and the approved dissolution by the JPA Board on January 20, 2021, the focus has shifted from reporting to the JPA’s leadership to winding down the business aspects and establishing new agreements for dispatch services with various fire agencies.
Staff recommends execution of the dispatch services agreements with City of Lodi, City of Manteca, SSJCFA and LMFD effective July 1, 2021. COS will continue to seek business expansion opportunities by providing services to other fire agencies in the County. The new agreements will provide revenues to offset ECD operating costs without the constraints associated with the JPA agreement. The City will have complete control over all agreements and finances, allowing full reinvestment of any revenues generated from each agreement into ECD’s cost of operations, technology upgrades, and capital improvements.
FINANCIAL SUMMARY
Under the proposed agreements, City of Stockton will be compensated at $55 per call for all billable emergency calls dispatched by the COS ECD dispatch center for City of Lodi, City of Manteca, SSJCFA and LMFD from July 1, 2021, thru June 30, 2023. Based on the calendar year 2020 total dispatch call volume of the four agencies, total FY2021-22 revenues projected from these dispatch services agreements are estimated to be approximately $1.43 million.
Prior to completion of the original agreements’ payment period ending June 30, 2023, a per call rate adjustment will be determined by the City and each subsequent fiscal year thereafter. An amendment to the dispatch services agreements will be executed by each agency and COS to formalize the new terms of payment and shall be effective July 1, 2023.
Revenues collected from dispatch services agreements will be credited to ECD dispatch center account 4040-000-446012-100-130-20-40-000-000- and will be used to offset the costs of operating the ECD dispatch center. COS will continue to seek business expansion opportunities by providing services to other fire agencies in the County. The net annual cost of operating the ECD dispatch center will decrease as additional dispatch service agreements with other fire agencies are negotiated and with other potential future sources of revenue.