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Home My WebLink AboutRFA 2015-04-08 Item 3 - 2015 Fire Exploratory Committee RecommendationTO: MEMORANDUM Tukwila City Council Jim Haggerton, Mayor FROM: Fire Exploratory Committee DATE: September 10, 2014 SUBJECT: 2014 Fire Exploratory Committee Recommendation City of Tukwila ISSUE The cost of providing high quality fire service to the community is high, and secure and long term financial sustainability is a challenge within a city's authorized taxing structure. To maintain or improve existing levels of service as departmental costs increase, cities must either reallocate existing revenue or identify a new revenue source. Many communities regionally and nationally have pursued regional consolidation strategies as a cost - effective way to deliver high - quality fire and life- safety services. This has been accomplished primarily through fire district annexations, interlocal agreements and through formation of or annexation to Regional Fire Authorities (RFAs). Consolidation can result in lowered costs due to economies of scale obtained by reducing duplication of facilities, leadership, equipment and other expenses within close geographical areas. Statewide, there is typically robust community support for funding dedicated to fire and life safety services. In addition, the dedicated funding source associated with a fire district or an RFA has potential to free up revenue capacity for member jurisdictions without detriment to service levels. In June 2010, the City Council formally authorized the exploration of alternative structures for the provision of fire and life safety services in Tukwila. BACKGROUND Fire Exploratory Committee (July — November 2010): A Fire Exploratory Committee with members from the City Council, City Administration, and the Fire Department formed to research and analyze the options of creating an RFA, joining the Kent RFA, or remaining a municipal department. The 2010 FEC reached a unanimous recommendation to the City Council to approve the creation of a joint committee with representation from Tukwila and from the Kent RFA to further explore consolidation between the two. Joint Fire Exploratory Committee (January 2011 — June 2012): Following three meetings, this Committee was suspended to allow the City of Tukwila to respond to significant organizational changes. In June 2012 the JFEC official terminated without recommendation due to the Kent RFA's discussions with the City of SeaTac regarding a service contract. Kent RFA did not have the staffing capacity to undertake both processes at once. The JFEC acknowledged a desire to resume the exploratory process once those deliberation reached conclusion. SeaTac's contract for services with the Kent RFA took effect on January 1, 2014. 2014 Fire Exploratory Committee (April — August 2014): In response to the City's Strategic Plan and with the previous commitment to revisit the fire service consolidation discussion, in late 2013 Mayor Haggerton requested the formation of a new Fire Exploratory Committee with representation from City Council, City Administration, and the Fire Department. In February 2014, the Mayor's Office sent letters to the Chiefs of the Kent RFA, King County Fire Protection District No. 2, and the City of Renton. All three responded that they would like to further discuss opportunities for partnership. The 2014 Fire Exploratory Committee commenced its meetings in April 2014. RECOMMENDATION: 2014 Fire Exploratory Committee page 2 2014 FIRE EXPLORATORY COMMITTEE Scope The 2014 Fire Exploratory Committee was tasked to build on past and current regional efforts to research, evaluate, and provide recommendations regarding options for fire and life safety services in Tukwila, focusing on three scenarios: • Remain a Municipal Fire Department • Provide services via contract or other agreement with a neighboring jurisdiction • Create or join a Regional Fire Authority (RFA), a special purpose district established by voter approval. Membership The Fire Exploratory Committee comprised the individuals listed below. The Committee opted not to have a Chair, and the Council Analyst accepted responsibility for coordination of agendas, meeting summaries, and presentations. • Verna Seal, Councilmember • Kate Kruller, Councilmember • David Cline, City Administrator • Chris Flores, Acting Fire Chief • Peggy McCarthy, Finance Director • Vicky Carlsen, Deputy Finance Director • Chuck Woolley, Firefighter • Jim Evans, Firefighter • Dawn Judkins, Firefighter • Laurel Humphrey, Council Analyst Schedule April 18, 2014 Introductions, review of timeline, goals, meeting schedule /frequency May 2, 2014 Review: Current Fire Department budget and preliminary table of service options May 16, 2014 Presentation: SeaTac's decision to contract with Kent RFA May 30, 2014 Partnership discussion with Chief Jim Schneider, Kent RFA June 6, 2014 Partnership discussion with Chief Mike Marrs, KCFD #2 and North Highline FD June 13, 2014 Partnership discussion with City of Renton June 27, 2014 Presentation and discussion of fire benefit charge July 3, 2014 Review of draft charter July 11, 2014 Discussion of service delivery models and draft outline of report July 18, 2014 Continued discussion of service delivery models August 1, 2014 Draft recommendation August 7, 2014 2nd partnership discussion with Chief Schneider and Larry Rabel, Kent RFA August 29, 2014 Committee recommendation discussion September 4, 2014 Committee recommendation discussion RECOMMENDATION: 2014 Fire Exploratory Committee page 3 ANALYSIS /EVALUATION During its inaugural meeting on April 18, 2014, the 2014 Fire Exploratory Committee discussed its purpose and goals with each member having an opportunity to speak. Committee members agreed on the importance of an objective and transparent review process in order to deliver an unbiased, thorough recommendation that takes into consideration costs, quality of service, and efficient use of resources. The Committee conducted its review of available service delivery options over the course of 14 meetings consisting of presentations, partnership discussions with neighboring jurisdictions, and group dialogue, focusing on the following areas of analysis: Review of Status Quo Committee members familiarized themselves with the budget, staffing and services currently provided by the Fire Department (Attachment 1, Fire Department Summary). Review of Service Delivery Options The Committee reviewed and discussed different fire service scenarios, and considered advantages and disadvantages of each. The Committee met with representatives from the City of SeaTac to learn from their recent decision to contract for services with the Kent RFA (Attachment 2, Comparison of Fire Service Options). Review of Fire Benefit Charge Fundamentals The Committee received an informational presentation called "Fire Benefit Charge 101," which provided information on the statutory basis for the FBC, the factors used in the Kent RFA formula, hypothetical application of that formula to various parcels in Tukwila, and a funding and budget scenario considering the FBC as a source of revenue. Review of Partnership Opportunities The Committee met with representatives from the City of Renton, Fire District #2 /North Highline, and the Kent RFA to discuss partnership opportunities, revealing the following information: • The City of Renton is initiating a planning committee with representatives from the City and from Fire District 25 to explore the feasibility of establishing a new RFA. If an RFA is successfully established between those two entities, they are open to exploring future consolidation with other parties, including Tukwila. Committee Analysis: Unknown status but bears future potential. • Fire District No. 2 contracts with the North Highline Fire District, and Mike Marrs acts as Fire Chief for both agencies. A fire benefit charge for the North Highline Fire District passed with 70% approval at the August 5 election. At this time neither District currently plans to annex an area or to create or join a regional fire authority. Committee Analysis: Remove from consideration. • The Kent RFA is interested in further exploring feasibility of partnering with the City of Tukwila. In a follow up discussion, Kent RFA leadership expressed the possibility of revising their fire benefit charge formula to better accommodate the specific demographic makeup of Tukwila. Renewal of the fire benefit charge will be on the ballot in April 2016. The Committee admires the leadership and experience in this established RFA, and acknowledges the highly successful partnership established via Tukwila's participation in the South King County Fire Training Consortium. Committee Analysis: Preliminary analysis indicates annexation into the Kent RFA may be financially feasible and with probable benefit to the community. RECOMMENDATION: 2014 Fire Exploratory Committee page 4 RECOMMENDATION With unanimous approval, the 2014 Fire Exploratory Committee believes that it is highly likely that long term sustainability of high quality fire service in the City of Tukwila would be improved by a consolidation effort, and furthermore, that the City of Tukwila should fully explore the feasibility of partnering with the Kent Regional Fire Authority to complete the work that was unfinished in 2010 -2011. We acknowledge that maintaining or increasing the service levels of a municipal fire department will remain an ongoing challenge within the taxing authority of the City, and we did not find an argument against pursuing an alternative. What has changed? In 2010, exploration of consolidation was put on hold for the reasons noted above, and since that time a few factors have changed that the Committee believes makes consideration of annexation into Kent RFA an even more attractive option. First, the RCW was amended to streamline the annexation process by requiring a vote only from the area to be annexed. Second, the Kent RFA completed its process with the City of SeaTac and now has the expressed interest and resources available to seriously explore annexation of Tukwila. Finally, preliminary financial analysis and the potential to revise the fire benefit charge formula to suit Tukwila's demographics indicate that this could be financially advantageous for the City and the community. Why a Regional Fire Authority? It is clear that consolidation of fire services offers many benefits relating to the distribution of costs over a larger population, elimination of duplicated resources, and maximization of efficiencies. In addition, implementation of a fire benefit charge offers a funding mechanism that factors in square footage and other fire service needs, thereby distributing costs fairly among residences and commercial properties. Establishing a dedicated funding source exclusively for fire service also has the benefit of giving the City more budgetary flexibility, freeing capacity for other essential services. Furthermore, in contrast with a fire district, a regional fire authority has a system of governance that includes voting members from each represented jurisdiction. (Attachment 3, RFA Reference List) Why the Kent Regional Fire Authority? The Kent Regional Fire Authority is regionally respected for its successes, leadership, and experience. It has been in operation since 2010 and has cleared many of the early challenges associated with the creation of a new organizational and governmental entity. The City of Tukwila and its Fire Department have already established and enjoyed a highly successful relationship due to participation in the South King County Regional Training Consortium, administered by Kent RFA. Kent RFA leadership has expressed a desire to continue exploring the feasibility of annexation of Tukwila, and furthermore, has offered to the Committee the potential to revise its fire benefit charge formula in a way that would suit Tukwila's unique demographics and its high volume retail base. Is there an alternative? If analysis of joining the Kent RFA proves it to be unfeasible, or it becomes clear that there is no community support, the City has no contractual obligation or promise to continue down that path. The City will maintain the status quo, but considering the advantages offered by the regional fire authority structure, the Committee encourages the City to keep close watch on the developments in Renton as they explore formation of their own RFA. If formation of a new RFA is successful, there is potential for future partnership that could be revisited when the time is right. RECOMMENDATION: 2014 Fire Exploratory Committee page 5 Where do we go from here? The Committee believes that in order to make an ultimate decision on this matter the Council will need more detailed information on key issues regarding the fire benefit charge, potential revenues, personnel integration, operations, and more. The Committee has identified a series of key phases that we recommend if further exploration is to occur. First, a detailed analysis of financial feasibility should be conducted in order to consider the fire benefit charge formula and its application in Tukwila along with projected revenues. A task force relating to messaging and engagement should be deployed to provide a steady flow of information and continually gauge community support. If Council and community support continues, representatives from Tukwila and the Kent RFA will then come together to negotiate amendments to the RFA Plan to allow annexation, while union negotiations are occurring concurrently. The amended RFA Plan must then be approved by both governmental bodies, voters must approve the annexation, the RFA Plan, and the fire benefit charge, and if successful, an interlocal agreement will be negotiated based upon the approved RFA Plan. The Committee believes a reasonable timeline for implementation has potential to culminate in a vote in early 2016. This recommended timeline assumes that the Council receives regular briefings and each phase will only proceed if Council and community support exist. (Attachment 4, Recommended Phases and Timeline) Summary of Recommendation The 2014 Fire Exploratory Committee recommends to the Mayor and the City Council that the City of Tukwila should fully explore the feasibility of annexing to the Kent Regional Fire Authority. If it is supportive, the City Council can endorse this recommendation by a motion either this evening, or at a future Regular Meeting following additional Committee of the Whole discussion. The Committee suggests a motion to endorse further exploration of feasibility of annexing to the Kent Regional Fire Authority and the creation of a Steering Committee to address the phases recommended by the Fire Exploratory Committee. Attachments: 1. Fire Department Summary 2. Comparison of Fire Service Options 3. Regional Fire Authority Online Reference List 4. Recommended Phases and Timeline 5. Fire Benefit Charge 101 Attachment 1 City of Tukwila Fire Department 2013 Summary City of Tukwila Assessed Value Area AV per Square Mile 2014 Regular Tax Levy 2014 Levy Rate Residents Jobs Estimated daytime population 4.6 billion 9.7 square miles 474 million $14,100,000 $2.98 19,486 42,000 150,000 Fire Department Number of Stations Staff Levels Minimum Staffing Level Staffing Model Total Calls for Service 4 18 13 48 hour shifts, 3 crews 4803 • Aid /Medical 3330 • Fire Response 313 • Other 1160 Services Provided: Fire Suppression, Emergency Medical, Fire Prevention /Marshal, Emergency Management, Hazardous Materials, Technical Rescue, Marine Operations, Explorer Post, Public Education FTEs Uniformed 62 • Chief 1 • Assistant Chief 1 • Battalion Chiefs 5 • Captains 16 • Firefighters 39 Civilian 5 • Administrative 2 • FMO Project Manager 1 • FMO Clerical 1 • CERT /Public Ed 1 Total 67 Attachment 1 Fire Department General Fund Budget 2013 Actuals Notes Administration Suppression Prevention Training Facilities HazMat Rescue Emergency Preparedness Rescue & Emergency Communication /Dispatch Total General Fund $ 834,054 8,119,818 721,553 364,764 111,490 64,008 8,237 310,404 45,228 129,354 $ 10,708,909 Oversight - Chief, Asst. Chief, Admin Support Daily field operations Enforcing codes, public outreach Training, quality control, safety Operations and maintenance of stations Hazardous material response and mitigation Specialized rescue response and mitigation Foundation for emergency management in City Life support Valley Com charges *General Fund Total includes O &M = $425,935 and ER &R = $112,053 Facilities Year Built Square Footage Maintenance Costs Fire Station 51 Fire Station 52 Fire Station 53 Fire Station 54 Fund 303 Expenses (Facility Improvements) 1975 1971 1997 1961 15,519 3,300 6,109 4,000 $ 35,488 9,531 14,723 17,361 6,964 $ 84,067 Total Maintenance Costs Fleet Information 2,221 tech hours, 32% of total tech hours 2014 Fire Exploratory Committee - Comparison of Fire Service Options Attachment 2 Continue Municipal Fire Department Join Existing Regional Fire Authority Create Regional Fire Authority Annex to Existing Fire District Create Fire District Contract with Neighboring Jurisdiction Potential Partners N/A Kent RFA City of Renton FD 2 North Highline FD 2 (Burien, Normandy Park) North Highline (Boulevard Park, Top Hat, Beverly Park, Shorewood, Mt. View, South Park, White Center) None Kent RFA Statutory Provisions N/A RCW 52.26 RCW 52.26 RCW 52.04 RCW 52.02 RCW 35A.11.040 RCW 39.34 Approval Process N/A 1. City Council adopts a resolution requesting the annexation. 2. RFA Board adopts a resolution amending its plan to establish terms of annexation. 3. City Council adopts another resolution approving the annexation and related plan amendment. 4. Election — majority approval required in the City only. (RCW 52.26.300) 1. Planning committee formed (three elected officials from each partner) 2. Committee adopts a Regional Fire Protection Authority Service Plan 3. Each partner governing body certifies Plan and places issue on ballot 4. Election — majority approval of combined area required (60% approval if fire benefit charge proposed) 1. City Council initiates by ordinance. 2. Fire Commissioners concur. 3. Election — majority approval required in City and in District (RCW 52.04.061, 071) 1. Petition signed by not less than 10 percent of registered voters who voted in last municipal election 2. Election requiring 3/5 majority approval 1. Upon development of an ILA, each participating jurisdiction's elected body will approve by adoption of a resolution. Governance 7 member City Council 3 Kent City Councilmembers, 3 Fire District 37 Commissioners, 1 non - voting advisory board member from Covington, appointed by Covington Council, 1 non - voting advisory board member from SeaTac, appointed by SeaTac Council PLUS negotiated role for Tukwila To be specified in the Plan. Elected officials of participating jurisdictions and elected commissioners of the authority (RCW 52.26.080) 3, 5, or 7 Commissioners directly elected at -large or by district. 3, 5, or 7 Commissioners elected at -large or by district. Negotiated advisory (non- voting) role Revenues /Funding $10,600,000 Budget; $1.50 tax levy, EMS levy, grants, inspection and permit fees, City general fund $1.00 levy plus FBC per established formula $1.00 per $1,000 with a FBC or $1.50 operating levy $1.00 per $1,000 with a FBC or $1.50 operating levy $1.00 per $1,000 with a FBC or $1.50 operating levy City budget Advantages *History, legacy, tradition *No change -risk *Retain leadership, governance *Current labor contract good *Local control of assets *Fully integrated EMS *Economies of scale *More staff and resources to meet service demands *Dedicated funding source *Direct correlation between funding and service *FBC distributes costs relative to service requirement *Relief to City's budget *Economies of scale *Dedicated funding source *Direct correlation between funding and service *FBC distributes costs relative to service needs *Relief to City's budget *More staff and resources to meet service demands *Economies of scale *Dedicated funding source *Direct correlation between funding and service *Relief to City's budget *FBC distributes costs relative to service needs *Relief to City's budget Same *Economies of Scale *Stepping stone to future annexation *Staffing flexibility *Does not require ballot measure 2014 Fire Exploratory Committee - Comparison of Fire Service Options Attachment 2 Continue Municipal Fire Department Join Existing Regional Fire Authority Create Regional Fire Authority Annex to Existing Fire District Create Fire District Contract with Neighboring Jurisdiction *Excellent relationship established via training consortium *Experienced, established RFA with effective leadership *Potential for future expansion to the West *Compatible shift schedules *FBC may be tailored to Tukwila's demographic needs Challenges *Tax- limiting legislation * Volatility of general fund revenue streams *Expensive with no other funding options *Staff limitations due to budget *Overtime costs *Facility deficits *Apparatus access limitations *No aid car in service *Small - scaled staffing *Reduced governance, control over service delivery *Requires 60% voter approval, then 50% approval every six years *Must consolidate labor contracts *Separation of certain services (EMS, fire inspectors) *Reduced governance, control over service delivery *Requires 60% voter approval, then 50% approval every six years *Must consolidate labor contracts *Separation of certain services (EMS, fire inspectors) *Loss of governance *Loss of governance *No potential partners *Loss of governance, although advisory participation is negotiated *Must be funded from existing City Budget Perspectives on partnership N/A Kent RFA leadership is interested in continuing discussions on a possible annexation of Tukwila to the RFA. The City of Renton plans to explore the feasibility of establishing an RFA with representatives from the City and from FD 25. If an RFA is established they are open to future partnership opportunities. Neither FD 2 or North Highline plans to create or join an RFA. Neither FD 2 or North Highline is interested in annexation at this time. N/A Attachment 3 Regional Fire Authority — Online Reference List RFA FAQ by Valley Regional and Riverside Fire Authority legal counsel: http: / /www.awcnet.org /portals /0/ documents /training /materials/ conference /2011 /24sustainapproachfi reservicerfafaq.pdf Chapter 52.26 Revised Code of Washington — Regional Fire Service Authorities: http:// app.leg.wa.gov /rcw /default.aspx ?cite =52.26 MRSC Regional Fire Protection Service Authorities Information and Resource Page: http: / /www.mrsc.org/ subjects /governance /spd /rfpsa.aspx • Kent Fire Department Regional Fire Authority (King County) - Includes City of Kent and King County FPD No. 37 (Covington annexed) - Election held April 27, 2010 - Effective July 1, 2010 • North County Regional Fire Authority (Snohomish County) - Snohomish County FPD Nos. 14 and • North Mason Regional Fire Service Authority (Mason County) - Includes Mason County Fire District No. 2 and Mason County Fire District No. 8 - Effective January 1, 2014 • Riverside Fire Authority (Lewis County) - City of Centralia and Lewis County Fire District No. 12 - Election in November 2007 • South Whatcom Fire Authority (Whatcom County) - Whatcom County FPD Nos. 2, 6, 9, and 10 - Election in November 2008 • Valley Regional Fire Authority (King County) - Cities of Algona, Auburn, and Pacific - Election in November 2006, formed in January 2007 • South East Thurston Fire Authority (Thurston County) - Includes Yelm, Thurston County FPD No. 2, FPD No. 4 (Rainier annexed) - Election held on February 9, 2010 • West Thurston Regional Fire Authority (Thurston County) - Includes Thurston County FPD No. 1 and Thurston County FPD No. 11 - Election in August 2009 MRSC Index to Electronic Documents: http: / /www.mrsc.org/ research /libraryresults.aspx ?cat =2431 Kent Regional Fire Authority: http: / /www.kentfirerfa.org/ Kent RFA Annual Reports, Budgets and Plan: http:// www. kentfirerfa .org /index.aspx ?nid =94 Attachment 4 Financial Analysi. 1 • Review data, forecast FBC revenue, determine feasibility • City Council receives briefings at this stage and throughout Messaging and Engageme • Steady flow of information to electeds, public and press • Stakeholder input Plan Amendmen • Assets, vehicles, capital, LEOFF 1, governance, etc. Labor Negotiations • Concurrent with other phases Resolutions • City Council adopts resolution requesting annexation • RFA Board adopts resolution amending Plan to allow annexation • City Council places measure on ballot • Voters must approve annexation, Plan amendment, FBC • Voter outreach 2 -4 months ILA Developmen 1 • ILA is developed based upon an adopted RFA Plan 2014 Q4 2015 Q1 01-04 Q2 -Q3 Q2 -Q4 Q4 2016 Q1 April Q3-04