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Home My WebLink AboutReg 2015-10-19 Item 6C - Update - Regional Fire Authority Annexation Steering CommitteeCOUNCIL AGENDA SYNOPSIS 1 rritiai+ Mee tirrq Dale Prepared Iiy _ Mayor's i emi Coll nil I irview 10/19/15 M C B ltr� 10/19/15 Motion Date ❑ Resolution illt.g Date ❑ Bid Award Mtg Date ❑ Public Hearing i ftg Date ❑ Other Mtg Date C: \'I'l;Golz' ' Discussion II ITEM INFORMATION ITEM No. 153 STAFF SPONSOR: MAYOR'S OFFICE ORIGIN.IIL, AGENDA DX111: 10/19/15 AGENDA ITEM TITLE Regional Fire Authority Annexation 10/19/15 Motion Date ❑ Resolution illt.g Date ❑ Bid Award Mtg Date ❑ Public Hearing i ftg Date ❑ Other Mtg Date C: \'I'l;Golz' ' Discussion II IN Ordinance Aftg Date kitg Mtg Dale 0 SPONSOR ❑ Council E Mayor ❑ FIR ❑ DCD ❑ .Finance ❑ Tare f 1 IT ❑ P&R ❑ Police ❑ Ply' SPONSOR'S SUMNI CRY This is a progress update on the Kent Regional Fire Authority annexation project RI VIE\'V1 1) BY ❑ CA &P Cmte ❑ F&S Cmte Transportation Cmte Cmte ❑ Arts Comm. ❑ Parks Comm. Pf Planning Comm. 04/15; 6/15; 8/15 COMMITTEE CHAIR: 1 /4 COW Mtg- ❑ Utilities DATE: 9/14; RECOMMENDATIONS: SPONSOR/ADMIN. COMMITIEE Not applicable Not applicable COST IMPACT 1 FUND SOURCE Exi'I:NDrrURE ltLQ 'IRI:ID AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments : MTG. DATE RECORD OF COUNCIL ACTION 04/13/15 Briefing 6/15/15 Briefing 8/17/15 Briefing MTG. DATE ATTACHMENTS 10/19/15 Informational Memorandum date 10/14/15, with attachments 153 54 TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton City Council FROM : David Cline, City Administrator BY: Moira Carr Bradshaw, Senior Planner DATE: October 14, 2015 SUBJECT: Regional Fire Authority Annexation ISSUE This is the fourth progress update on the issue of annexation of fire and emergency medical services to the Kent Regional Fire Authority (RFA). BACKGROUND The Steering Committee established by the City to review this issue has spent the past seven months discussing the qualities of regional fire service versus local. Specifically they've been reviewing the level of service and type and quality of operations of the Tukwila Fire Department as compared to the Kent RFA. Attachment A is a draft summary of findings that begins to answer the question of why consider annexation to the Kent RFA. DISCUSSION A finance proposal was presented to the Steering Committee for the first time at their October 14t'' meeting. This proposal includes a cost comparison (initially presented in July) comparing Tukwila costs for fire service to Kent RFA costs for fire service to Tukwila. Proposed revenues using the Kent RFA financing model of property tax plus finance benefit charge for Tukwila property was also presented. An important financial item in the budget analysis is the inclusion of annualized capital costs into the budget comparison. The proposal includes a 20 year Capital Plan that anticipates growth and includes all fire related capital needs and timing for fire station rebuild. FINANCIAL IMPACT There is a range of financial impacts to the variety of property owners in the City from residential to industrial. That information is now available and is being presented and reviewed at the Steering Committee on the 14t' and 28 of October. The financial impacts will also be determined by policy direction to be set by the Council in the near future. A separate work session for the City Council is tentatively scheduled for November 10 to discuss the cost and revenue implications to the City as an organization and the impacts those decisions will have on property owners RECOMMENDATION Information only, no action required_ ATTACHMENT A DRAFT Regional Fire Authority Plan Needs Statement B Cost Comparison Worksheet C Budget Presentation 155 1 56 INFORMATIONAL MEMO Page 2 Attachment A D— R -A -F -T Needs Statement 1. The City of Tukwila considers the Kent Fire Department RFA a successful, highly competent, nationally accredited regional service provider with whom a jurisdictional border is shared. 2. For decades, the City of Tukwila has been successfully collaborating with the Kent Fire Department, through such programs as the Zone 3 partnership and mutual aid agreements. 3. Since the inception of the Kent Fire Department RFA in 2012, . the City of Tukwila has enjoyed enhanced collaboration with the Kent Fire Department RFA through the South King County Fire Training Consortium, sharing training personnel, systems and methods. 4. To ensure that fire and emergency services continue to be delivered to the City of Tukwila community at existing or improved levels, the City of Tukwila desires to join the Kent Fire Department RFA in a shared belief that proportionally allocating cost is more equitable for its community. To that end, the Kent Fire Department RFA utilizes a benefit charge funding system that may be used to fund up to 60% of the RFA's operating expenses. 5. Consolidation of the City of Tukwila and the Kent Fire Department RFA provides greater flexibility in designing and opportunity for deploying an effective response force and provides additional services to the Tukwila community, such as non - emergency medical services. 157 158 Cost Comparison Worksheet Rounded to thousands Operational Costs Equivalent Levy Rate for Operational Costs City RFA 2015 Projected Proposed Actuals Budget Difference 10,188 10,538 350 2.03 2.10 0.07 Capital Equipment 150 133 -17 Apparatus 900 405 -495 Facilities 1,300 1,642 342 2,350 2,180 -170 Equivalent Levy Rate for Capital 0.47 0.43 (0.03) Total Operational & Capital Costs Equivalent Levy Rate for Operational & Capital 12,538 12,718 180 2.50 2.53 0.04 Interlocal Agreement Prevention & Investigation 793 902 110 Emergency Management 321 339 18 1,114 1,242 128 Equivalent Levy Rate for Prev, Investigation, EM 0.22 0.25 0.03 Total Operational & Capital, Prev, Investigation, EM 13,652 13,959 307 Costs Equivalent Levy Rate for Operational, Capital, Prev, 2.72 2.78 0.06 Investigation, EM Operational costs for the City include $797K in indirect (soft) costs, does not include LEOFF 1 or firemen's pension costs City: Assumes 10 year replacement admin -type vehicles, 15 year replacement for heavy -duty apparatus RFA: Assumes 7 -10 year replacement admin -type vehicles, 20 year replacement for heavy -duty apparatus C :II,Jsers \Vicky- C \DesktoplCopy of Fire Budget Only,xlsx Expenses 10/14/2015 4:30 PM) 59 160 2015 Regional Fire Authority Annexation OCTOBER 19, 2015 - BRIEFING Fire Services Annexation Steering Committee Questions: Same or better level of service Equivalent or lower costs Operating Budget Comparison City Council August 2015 Update Tukwila Budgeted Fire Costs RFA Estimated Fire Costs $10,250,875 Difference $703,082 $10,953,954 Operating Budget Comparison Division Budget Administration $748,812 Suppression 7,954,891 Training 389,380 Facilities (maint, supplies) 110,860 Special Operations 60,537 Ambulance /Rescue /Aid 189,325 Operations Total $9,453,805 Operating Budget Comparison Soft Costs Allocation Information Technology $190,542 Human Resources 134,025 Finance (Includes insurance) 391,214 City Attorney 15,378 Public Works 34,278 Parks Maintenance 31.633 Total $797,070 Operating Budget Comparison Division budget $9,453,805 Soft Costs 797,070 Total Operations $10,250,875 RFA Estimated Operating Costs $10,953,954 Difference was $703,082 Operating Costs Adjustment Operating costs - projected year end $9,190,939* Soft Costs 797,070 Total Operations $9,988,009 RFA Estimated Operating Costs $10,537,656 Difference is now $549,647 *Estimate of year end could change Cost Comparison Worksheet Summarize Operating Costs Comparison Annualized Capital Costs Comparison Include Equivalent Levy Rate Comparison Prevention, Investigation and Emergency Management Costs Cost Comparison Worksheet Rounded to thousands City 2015 Projected Actual RFA Proposed Budge Difference Operational Costs $10.19 M $10.54 M $0.35 M Equivalent Levy $2.03 $2.10 Operational costs for the City include $0.8M in indirect costs o) $0.07 Cost Comparison Worksheet Rounded to thousands City Annualized Capital Estimates RFA Proposed Estimates Difference Equipment $150 $133 $(17) Apparatus $900 $405 $(495) Facilities $1,300 $1,642 $342 Total Capital $2,350 $2,180 $(170) Equivalent Levy $0.47 $0.43 $(0.04) City: Assumes 10 year replacement for admin -type vehicles, 15 years for heavy -duty apparatus RFA: Assumes 7 -10 years for admin -type vehicles, 20 years for heavy -duty apparatus. Cost Comparison Worksheet Rounded to thousands City 2015 Projected Actuals RFA Proposed Budget Difference Total Operations & Capital $12.54 M $12.72 M $0.18 M Equivalent Levy $2.50 $2.53 $0.03 Difference Cost Comparison Worksheet Rounded to thousands Interlocal Agreement City 2015 Projected Actuals RFA Proposed Budget Prevention & Investigation $793 K $902 K $110 K Emergency Management $321 K $339 K $18 K Total $1.11 M $1.24 M $128 K Equivalent Levy $0.22 $0.25 $0.03 Cost Comparison Worksheet Rounded to thousands City 2015 Projected Actuals RFA Proposed Budget Difference Total Operational, Capital, Prevention, Investigation, Emergency Management $13.65 M $13.96 M $307 K Equivalent Levy $2.72 $2.78 $0.06 LEOFF 1 and Firemen's Pension remain a cost to the City so are not included in any of the calculations above Concerns /Questions Good to better service Fully budgeting for costs Next Steps /Schedule By year end: Completion of Steering Committee Review Report out by Steering Committee to Mayor and City Council City Council Work Session on financial impact and policy choices