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LE memo re Fire station 60CITY OF LADE 09, LSIIYORE DREAM EXTREMEn REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GRANT YATES, CITY MANAGER DATE: NOVEMBER 12, 2013 SUBJECT: DISCUSSION REGARDING FIRE STATION 60 Recommendation Provide direction to the City Manager to: 1. Calculate direct and indirect costs, including overhead, on a sliding scale based on the time and resources committed to fire service calls in the City of Canyon Lake 2. Invoice the City of Canyon Lake for fire service calls on a monthly basis Background On Tuesday, November 5, the City of Canyon Lake's fire protection tax, Measure D, was defeated. With its defeat, Fire Station 60 is projected to close as of December 5, 2013. This date is based on a letter written by the City of Canyon Lake to Cal Fire in August 2013 requesting that staffing be suspended at Fire Station 60 within 120 days. With the closure or a reduction in service at Fire Station 60, the City of Canyon Lake will not have the resources available to provide mutual aid to other surrounding communities, / which in effect removes them from the regional fire protection system. In the City of Lake Elsinore, public safety is the number one priority. Many residents pay up to $450 a year to have the highest levels of service possible. Therefore, it is essential that residents are not subsidizing services for another community and that they continue to receive the highest levels of service. !` `r The City of Lake Elsinore can use standard fire service cost recovery methodology, y specifically Assistance by Hire (ABH), to bill the City of Canyon Lake for all direct and indirect costs for fire services. This is a standard practice in the industry and staff recommends this approach if Station 60 closes or if there is a reduction in services provided by the station. Canyon Lake Fire Station 60 November 12, 2013 Page 2of2 Discussion Based on the actions by the City of Canyon Lake, staff recommends that the City of Lake Elsinore invoices the City of Canyon Lake for each fire and/or emergency services call based upon ABH. With the possible elimination of staffing or reduction of service at Fire Station 60 on December 5, the City of Lake Elsinore has the authority under ABH and support from the Riverside County Fire Department to invoice Canyon Lake for services rendered. The City of Lake Elsinore will create monthly invoices in coordination with the Riverside County Fire Department, who will generate a monthly list of actual calls for service in the City of Canyon Lake using their Computer Aided Dispatch System. City staff will then utilize this list to determine all direct and indirect costs based on the resources allocated and the type of incident to create monthly invoices for the services rendered in the City of Canyon Lake. Fiscal Impact Staff recommends a sliding scale be applied based on the calls for service generated. For example, a simple medical aid call will be billed differently than a structure fire call, which would require more resources. In addition to the direct costs for personnel, there are many indirect costs that are related to the total cost of service. Some of these indirect costs include dispatch, equipment, supplies, medic support, hazardous material incident management, fleet support, communication and IT support, and Battalion Chief oversight. In addition, there are also indirect costs related to operating a fire station such as utilities, facility support costs, maintenance, and administrative overhead. Based on the information above, the estimated hourly cost for one hour of service will be approximately $1,000. This cost will increase based on the complexity and number of resources allocated to each call for service. Prepared by: Nicole Dailey Management Analyst Approved by: Grant Yates City Manager City of Menifee Public Safety Meeting — November 12, 2013 RE. Discussion Regarding Canyon Lake Fire Station 60 DISCUSSION With the possible closure of Fire Station 60 on December 5, 2013, the following information is helpful in the discussion of how this would impact the City of Menifee's ability to serve its residents and any other areas outside the city limits. BACKGROUND Several months ago, former Canyon Lake City Manager Richard Rowe, Lake Elsinore City Manager Grant Yates, and I met a few times to discuss concerns with the possible closure of Station 60. Lake Elsinore and Menifee contend that services being provided inside the walls of Canyon Lake are not being paid for and are considered "mutual aid". This type of service between cities that maintain the same contractual services for fire and police are not uncommon. However, when and if one of the parties discontinues its service the services are not mutual aid and must be considered contractual at the direct cost of the one providing the service. Below is comparison of the cost of fire services between Canyon Lake and Menifee: Cost of Calls for Cost per Call Mutual Aid Cost of Contract Service Calls to Mutual Aid to 2012/13 2012/13 Canyon Canyon Lake/Menifee Lake/Menifee City of Menifee $6.98M 7,857 $888.88 145 $128,815.07 (includes fire, medical, rescue, mutual aid) City of Canyon $1.4M 645 $2,170.54 0 $0 Lake unconfirmed unconfirmed The City of Canyon Lake's structure fire tax is in the neighborhood of $787,190 (FY 2012/13). Lake Elsinore is moving forward with a report to City Council tonight (attached) that proposes to charge Canyon Lake, if station 60 closes, $1000 per call for services provided inside the City of Canyon Lake. RECOMMENDATION Staff recommends following the lead of the City of Lake Elsinore and billing Canyon Lake for all calls for service inside its city limits.