TO:

HONORABLE MAYOR AND
CITY COUNCIL

FROM:

Dale E. Foster

Acting Fire Chief

SUBJECT:

Extension of Agreement for Fire and Emergency Response Services with Santa Clara County Central Fire Protection District

DATE:

November 3, 2003

 

 

RECOMMENDATION

 

Approval of the Eleventh Amendment to the Zone 1 fire protection agreement with the Santa Clara County Central Fire Protection District (Central Fire), extending the term of the agreement until June 30, 2004, at no cost to the City over the revenue received under the agreement.

 

BACKGROUND

 

The City and Central Fire entered into the above agreement, commonly called the “Zone 1 Contract”, for a twenty-five year term that began on August 16, 1977.  The agreement has been amended over the years primarily to reflect changes in the area served, but also to track changes in how fire service is funded and to clarify the roles of the agencies with respect to inspections and investigations.

 

The agreement was scheduled to expire on August 15, 2002, but was amended to extend through November 18, 2003 to allow the City and Central Fire additional time to negotiate a new agreement.  There is currently a draft agreement that both agencies are in the process of reviewing and discussing.  Both San Jose Fire and Central Fire agree that an extension of the current agreement to June 30, 2004 is necessary in order to negotiate and develop a long-term agreement that will be beneficial to both sides. 

 

Under the current agreement, the City provides full-service fire and emergency response services in specific, identified unincorporated areas that are in the sphere of influence of the City.  The City also does fire inspections and fire cause/arson investigation as part of the agreement.  Central Fire currently pays the City over $4 million per year for services under this agreement.  Payment for inspection and fire prevention service is capped under the current agreement at the County's fee schedule.

 

The payment to the City has increased from around $2 million in 1977.  The payment for “full service fire protection”, including fire and emergency response services, is a calculated amount that is essentially the combined taxes for fire service received by Central Fire for all of the County parcels, plus the addition of state “bailout” funds that keep the Central Fire District “whole” after Proposition 13 dramatically reduced property taxes in 1978.  Central Fire also has Zone 1 agreements with the cities of Santa Clara and Milpitas, although the number of parcels is very small.

 

While the number of parcels protected has decreased from 17,500 to 14,300 as a result of annexation, an increasing assessed valuation has resulted in a doubling of the contractual payment.  These parcels are generally within the urban service area and sphere of influence of the City.  It would be quite inefficient for two separate fire jurisdictions to provide services in these areas.

 

ANALYSIS

 

Fire Staff has met with Central Fire to discuss the scope and language for a new agreement, and a draft agreement has been developed.  Staff is in the process of reviewing this draft agreement.  Both agencies agree that renewal of the “Zone 1” fire services contract is in their mutual best interest.  Both parties also believe that the services provided and the compensation is equitable and this agreement continues to provide improved emergency response services to the community.

 

The negotiations process for a new agreement with Central Fire will primarily focus on operational aspects of the agreement among the fire departments.  There will also be discussions to include language regarding service levels and formulas for compensation calculations.

 

The goal is to develop a fair and equitable new contract that serves the best interests of both parties.  It is the desire of both parties to continue a mutually beneficial relationship that provides the best service possible for the community.  There are a number of key issues that will be a part of the contract negotiations, including the following:

 

  1. Compensation - County Fire indicates that it “passes through” all revenue that it receives for the parcels serviced under the agreement.  The City needs to consider not only whether this revenue is adequate to reasonably cover the cost of services provided, but also whether the revenue source would be secure if the State budget actions result in changes in the way the State funds or distributes revenues to county agencies, including Fire Districts.
  2. County service level demands need to be evaluated to confirm that existing resources are adequate to provide the same high quality service to both City and County service areas. 
  3. Liability issues may need to be reviewed and evaluated based on changes in the law or as a result of court decisions.
  4. Inspection fees and inspection service levels will be reviewed.
  5. Provisions for delivery of EMS services will be evaluated for consistency with the recently approved agreement with AMR.

 

 

PUBLIC OUTREACH

 

There has been no public outreach.

 

COORDINATION

 

The recommendation for this extension has been coordinated with the City Attorney’s Office and with Central Fire.  The negotiations for the final agreement will also be coordinated with the City Finance Department, City Budget Office, City Attorney's Office and the City Auditor, and the agreement will come back to Council for approval by June 2004.

 

COST IMPLICATIONS

 

The City currently receives over $4 million in revenue per year under the agreement and provides these services to Central Fire with no additional resources over and above current resource levels.

 

CEQA

 

Not a project.

 

 

Dale E. Foster

Acting Fire Chief