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HomeMy WebLinkAboutFIN 2019-05-28 Item 2B - Budget - Fire Department Financial UpdateCity of Tukwila Allan Ekberg, Mayor TO: INFOR ATIONAL E ORANDU Finance Council Committee FROM: Vicky Carlsen, Finance Director Jay Wittwer, Fire Chief CC: Mayor Ekberg DATE: May 22, 2019 SUBJECT: Fire Budget Discussion ISSUE Review current and historical Fire Department budget, staffing, and service levels to determine a sustainable model which meets the City's financial and policy goals. BACKGROUND This section provides historical information on the Fire department as well as narrative discussing several aspects of the budget development process. The final section provides the current budget projection. Current Staffing Levels Total Fire Department Staffing The 2019-2020 Budget authorizes a total of 67.0 Full -Time Equivalents (FTE's) in the Fire Department. The table below summarizes these Budgeted FTE's. Position FTE's Notes Fire Chief 1 Assistant Fire Chief 1 Battalion Chief — EOC & Fire Marshall 2 Captains (Inspectors) — Fire Marshall's Office 2 Captains — Training Consortium 2 Work with the South King County Fire Training Consortium as part of City's financial commitment Senior Project Coordinator — Fire Marshall's Office 1 Plans reviewer Assistant to the Chief 1 Administrative Support Technician 2 1 supports the Fire Chief, 1 supports the Fire Marshall's office Emergency Management Specialist 1 Battalion Chiefs — Suppression 3 One per shift Captains — Suppression 12 4 per shift, 1 per Fire Station Firefighters — Suppression 39 13 per shift Total FTE's 67 There has not been a change in the number of Budgeted FTE's since 2013. 67 INFORMATIONAL MEMO Page 2 Minimum Staffing Levels - Suppression As noted in the chart above, there are several activities, such as Fire Marshall, Training, and Emergency management which have staff and budgets allocated to these services. The majority of staffing (54 FTE's) and budget is dedicated to suppression with 24/7 coverage for calls for service within the Tukwila community. This memo is focused on the Suppression services within the Fire Department. Shift Coverage - 48/96 In 2009, per the newly adopted labor agreement, the Tukwila Fire Department began operating on a 48-hour, 3 shift model, with 18 personnel assigned to each shift. This translates into a shift being on for 48 hours, then off for 96 hours, also referred to as a "48/96" model. This was a change from what is known as the Modified Detroit schedule of a 24 hour schedule. The chart below shows the shift schedule for both the 48/96 and the Modified Detroit: Example of Modified Detroit and 48/96 Schedule Day 1 I, Day 2 1, Day 3 ! Day 4 Day 5. Day 6 Day 7 48/96 (Current Schedule) On On Off Off Off Off Then repeats Modified Detroit On Off On Off On Off Off Then repeats Minimum Staffing Per current policy, the minimum staffing level is for 13.0 FTE. Each station has three firefighters (one Captain and two firefighters) who respond to calls with engines or the ladder, with the battalion chief stationed at Station 51. When staffing level for the shift is at least 15, the aid car can be placed in service, which increases the level of service and can reduce response time by having an additional unit in service. The chart below summarizes daily staffing levels based on the number of FTE's available. Station Apparatus Minimum Staffing 13.0 FTE Additional Staffing 14.0 FTE Aid Car Staffing 15.0 FTE FS 51 Battalion Chief 1 1 1 FS 51 Engine 3 3 FS 52 Engine 3 3 3 FS 53 Engine 3 3 3 FS 54 Ladder 3 4 3 FS 54 Aid Car 0 0 2 Total Staffing 13 14 15 When the City added pipeline positions in 2014 (discussed below), an additional 3 to 5 (unbudgeted) FTE were added. Currently, the policy is to fill up to 3 pipeline positions, which effectively increases the staffing to 19 personnel per shift. For each shift of 19 FTE, there are two slots set aside for vacation and two slots set aside for Kelly Days (explained below). That leaves an additional two slots available for education leave or sick leave before staffing falls to minimum staffing of 13. When additional sick leave, Kelly 68 INFORMATIONAL MEMO Page 3 doya, training days, or other activities occur that reduce staffing below 13. the current policy is that other staff are called in on overtime to maintain the minimum staffing level. Summary ofCurrent Shift e: _ "Br ' Shift��'"�"- '._ - Shift.,' Total Staff per Shift 18 19 19 Less: Vacation Slots -2 -2 -2 Less: Re|h Day Slots -2 -2 -2 Staffing Level Prior toUnexpected Leaves 15 15 15 Minimum Staffing 13 13 13 Slots Available for Unplanned Leave 2 2 2 Kelly Day A Kelly Day is an additional day provided to meet FLSA and contractual requirements. Due to FLGA ru|ee, each personnel are provided a certain number of"Kelly [)aya", which is @ day off during an FL8A periDd, and are scheduled ahead of time similar to a planned vacation day. Starting in2OOQ.the total number ofKelly Days per each position ia14days. This was Gnincrease from 13 per the prior labor agreement, which was provided in lieu of a 1 % pay increase. Pipeline Positions |DMarch 2O14.the Council approved the use Qf3pipeline positions. The pipeline positions were intended to create potential cost savings and increase operational effectiveness. When G firefighter retires, the individual in the pipeline can step into the vacated position. When a nBc[U|t enters the academy, it can take between six and nine months before @ recruit is fully trained. These pipeline positions were approved byCouncil 8t the March 3.2O14meeting. In jU|V 2016. in expectation of additional [8tireUO8DtS and in an effort to [educe overtime uS8ge, the Council increased this tVauthorize aDadditional 2UptV5pipeline positions. |O@June 2D1O 080O' it was stated that through the middle of the year, the department had filled 55 24-hour overtime shifts due tVminimum staffing requirements. |fthe three pipeline positions had not been in existence, the department would have filled 132 24-hourOverti0e shifts due to 0iDi0UrO staffing issues. The memo also stated that because of the pipeline positions, the aid car was in oen/ioa more frequent|y, increasing service levels tothe communities. The additional pipeline positions would enhance the department's capability tokeep upwith pending retirements and is more efficient and cost effective than the utilization of excessive overtime. The chart below shows total authorized positions and pipeline positions. ' �������m �� Authorized ' ` � 0101 ^ ` 201' 2012i 2013 i ' ^ 7 i ' 2018 FTEo 05! 80 67/ 87 67/ 6767 67 67 The additional pipeline positions add to the number of firefighters available per shift. 69 INFORMATIONAL MEMO Page 4 Staffing level considerations There are several factors which come into play when balancing current staffing levels for suppression. Vacation leave Per contract, each personnel are guaranteed e certain level of vacation leave. The table below ohovva the average usage of total vacation leave per year, by hours. As you can see wanmL|on hours use has slowly increased over the years with aslight reduction iD2U18. Vacation Hours Taken Suppression Only 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 n ZUlO 2011 20I2 30I3 2014 2015 2016 2017 2018 Me|lv D8y Per the contract and FLSA guide|inee, as described earlier, the number of Kelly Days per personnel has remained constant at 14since 2OO9. The table below shows the average usage of total Kelly []myS per year as expressed in hours. As you can see this has remained fairly consistent at about 16thouoand per year. Kelly []ay usage increased in 2016 and 2017 along with the increase in pipeline positions. Further analysis is needed todetermine why Kelly Day usage decreased in2O18. 70 INFORMATIONAL MEMO Page 5 o Kelly Hours Taken Suppression Only , 2010 2011 2013 2013 2014 2015 2015 2017 2018 Traininq/OthorUaaqe There is required training and other education which firefighters complete each year. Some of this is done during normal scheduled work hours, while others impact daily staffing levels. The number Ofhours for training and education outside ofthe normal work schedule is shown below. As the chart demonstrates, overtime training hours is not consistent from year to year with it ranging from 8 low ofapproximately 2SOt0a high Ofover 1.1OOiD2O17. Training OT Hours Suppression Only 2011 2010 2011 20I2 2013 2014 2015 2016 I017 ZOlO Training Hours n/a 296 323 973 510 912 676 1,119 586 Sick Leave and Long -Term DisGb|hV Sick leave can change bvday and bxshift. Below are two charts depicting sick leave hours from 2O1Othrough 2O18. The first chart compares January through April inall years and the second one compares January through December from 2O1Othrough 2O1Gand January through April for 2019. Both charts combine regular sick leave with long-term disability as our financial system 71 INFORMATIONAL MEMO Page 6 does not segregate long-term disability from sick leave. Along with long-term disability, sick leave usage appears to be trending upward with the trend beginning in 2015. As the table below shows, the number of hours of sick leave has increased from just over 10,000 hours in 2010 to a peak of 14,000 hours in 2018. Sick leave usage can have a significant staffing and budget impact, especially if covered through overtime staffing. 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2011 2012 Sick Hours Taken Suppression Only 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sick Hours 8,549 9,668 9,506 9,614 11,356 11,085 12,091 13,141 13,699 Using sick leave usage through April 2019, the projection is for a similar usage of sick leave in 2019 as was experienced in 2018. 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Sick Hours Taken Jan -April Suppression Only 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sick Hours 2,601 3,551 2,739 3,608 4,125 3,616 4,968 4,887 5,997 5,828 Long -Term Disability Whereas sick leave is intended for a short period of time, there is also the case when a firefighter is out for a longer period of time due to an injury, health issue, or other issue. 72 INFORMATIONAL MEMO Page 7 One factor contributing to the budget situation this year is the number of firefighters out on long- term disability, which we have defined as at least one consecutive month of sick leave. Below is a chart that shows how many firefighters are out on long-term disability each month. The chart is an estimate through June and only reflects those currently out on extended leave. Names have been removed for privacy. Data on long-term disability for prior years will be presented at a later date one the research has been completed.As the table shows, in January there is one firefighter at on long-term disability, whereas in March and April there were four to seven firefighters out on long-term disability. Dates on long-term disability Employee January February March April May June 4/1/18 - ? FF 1 1/7/19 - 6/1/19 FF 2 3/2/19 - 7/1/19 FF 3 3/10/19 - ? (intermittent) FF 4 1/21/19 - 4/28/19 FF 5 2/5/19 - 4/18/19 FF 6 3/19/19 - 5/5/19 FF 7 1/16/19 - 2/19/19 FF 8 5/15/19 - 7/1/19 FF 9 Retirements/Leaves of Service and New Hires for Suppression Each year, individuals leave the department due to retirement, another opportunity or unfortunately, due to a death but the Department also makes new hires. On average, the Department loses one to three firefighters per year and seeks to maintain consistent staffing levels by hiring new employees. When the Department hires a new firefighter, they first have to undergo approximately four months of training before they are deemed qualified as available for service. While the new firefighter is not able to fill a roster spot on a shift during these initial four months, they are paid salary and benefits. The chart below compares the Department's departures and hires for the time period 2010 through 2019. 10 8 6 4 2 Departures & Hires All FD Since 2001 2010 2011 2012 2013 2014 2015 IS Departures 81 Hires 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Departures 0 3 5 3 3 3 3 3 9 3 Hires 2 1 4 4 3 9 6 3 6 2 73 INFORMATIONAL MEMO Page 8 Deployments Another facto[ that affects staffing levels is deployments. When a natural disaster occurs somewhere e|ge, often we will send firefighters to assist with recovery. Some recent aX@0p|eg include responding to the Oso disaster in our own state and the hurricanes that occurred on the east coast last year. When firefighters are deployed to assist with recovery, they are typically gone for several days which affects staffing levels. Most often, the City iSreimbursed for the costs associated with these deployments but OcC8SioOG||y. the City is not reimbursed for all CDStG. /\ddhioD@| information on deployments will be provided at later date. SUrnm8rvOf Staffing Considerations OverUmeUamqe Overtime is used to ensure that nn|ninnuno staffing is nlat due to any nemSoD. from vacation, Kelly Days, sick leave, long-term diaabi|ities, retine0ents, or other issues. For examp|e, when a firefighter goes out on long-term disability for an extended length of time (at least one month), the usual two g|Via available for education and sick leave drops to one. When more than one firefighter on the same shift is DO long-term disGbi|ity, any firefighter calling in Sick automatically results in [OiOiDlUDl staffing overtime. The overtime usage has fluctuated over time. The table below ahoxvo the number of minimum staffing overtime hours used 2011 through 2018 (overtime hours were not tracked per project code until 2011). MiOiD1UDl Staffing (]THours Suppression Only 2010 2011 2012 2013 2014 2015 2016 2017 2028 The following chart shows total overtime by category. Minimum staffing overtime can range from 74 INFORMATIONAL MEMO Page 9 E Minimum Staffing Muc 13Eqvipment Overtime Categories 76ofWhole, byHours ZZU"'Now. �A a A Training 02, Meetings NUM Disaster Response mopxCode Ect»er 0xeimhvoahb City Events E Fire Investigation N Shift Extension Overtime 2011 2012 2013 2014 2015 2016 2017 2018 Grand Total Minimum Staffing 5,167 5,648 9,325 7,359 6,968 3,972 3I24 6,678 48,140 Training 599 585 1'333 926 1,855 955 1,453 1,066 8,781 Meetings 1,210 1,205 1'372 883 695 793 987 600 7,584 Disaster Response 239 30 4,031 89 26 1,439 416 6,268 Misc 503 235 777 1,469 1'024 1,165 711 318 6,I01 NoPACode 398 188 778 21 432 639 211 OO 2,746 Other 198 32 45 127 283 406 940 2,031 Reimbursable 161 142 163 197 221 lSO 214 488 1,835 Equipment 87 123 284 573 180 131 147 112 1,635 City Events 174 232 260 %ZG 175 125 209 55 1,455 Fire Investigation 164 126 73 387 175 206 337 161 1,447 Shift Extension 247 67 155 218 126 174 81 132 1,201 The cost of overtime has increased due tothe change inusage and also the increase inaverage compensation over the past few years. As the table ahoxve. the cost per hour has consistently 75 INFORMATIONAL MEMO Page 10 Total Overtime $ Paid ° 2010 2011 2012 2013 2014 2015 2016 2017 2018 Overtime$ $407,964 $446,557 $440553 $754,079 $857,927 $658,738 $495,855 $514,312 $647,876 Overtime Hours 8,221 8,907 8,831 14,592 16,I27 12,065 8,717 9,038 11,046 $/Hr $ 49.63 $ 50.13 $ 49.89 $ 51.68 $ 53.20 $ 54.60 $ 56.89 $ 56.90 $ 58.65 Akey administrative and policy question imwhat can bedone to reduce the overtime usage and costs going forward. BudqetPmoeeo The Finance staff budgets for personnel costs as well as liability insurance and fleet costs. Fire staff budget supplies and services. All departments develop their budgets within the parameters set by Administration and Council. When Finance drafts the budget for paneoOne|, all approved positions are fully funded at the existing labor agreement rate schedules plus an estimate for COLA increases. Benefits are adjusted based on known or estimated rate increases. Positions that are not atthe top step include an increase in both salary and benefits to account for any step increases due during the biennium. Any vacant position igbudgeted at the lowest step plus benefits and medical @tthe full family rate. Overtime is typically budgeted at previousyearlevels unless m department can prove the need for additional budget. One change inhow overtime was budgeted occurred with the 2017-2018 biennium. Prior to 2017. the overtime budget |iO9 item included both overtime and associated benefits. Beginning with the 2O17budget, the overtime line item iSstrictly overtime pay. Benefits associated with overtime are budgeted in the correct benefit line. Thane are ofevv items that are not budgeted and which the City departments are expected to absorb the difference within their original adopted budget. ° Pipeline positions are not budgeted. It is expected that these coats will be offset by a reduction inovertime costs and usage. p As e policy, the City also does not budget for pending or possible reti[eDlantS, specifically the vacation and sick leave payouts. 76 INFORMATIONAL MEMO ° The budget does not include funds for possibledep|oynlante. Typically,the budgetwill be amended once costs and reimbursement information can be estimated. Often, reimbursement funds are not received until the following year. * The City does not usually amend the adopted budget to account for any labor agreements that settle wages higherthanwhat is included in the adopted budget. Departments are expected toabsorb the difference. 2O19Projected Year -End Staff is preparing a projected year-end nloda| along with a discussion on the assumptions that will be included in the model. The model will be completed and presented at a future meeting. DISCUSSION To begin the discussion on next steps to address the fire department's projected overbudget o|tueUon, two options regarding policy are being presented below as possible vvoyo to keep the fire department within budget. Additional options could be presented atalater date. Po|icyCUecueaon There are some policy choicesthat relate toboth the fire department budget oowell molevels of service. As discussed above, there are a few items that, as a policy, the City does not budget for when drafting the biennial budget: • Pipeline pOsjUVne—nm|ery and benefits for @n entry level firefighter |s approximately 888thoUaand. • Known ratirernents— based on current infmrnnation, payouts in June are expected to beapproximately $72thousand total for three firefighters. Additionally,the current policy sets nnininnunn staffing levels at 13per shift. If staffing fe|b/ below 13,minimum staffing overtime iatriggered. Two suggestions that could keep the Fire department within budget follow. 1) Increase budget/revenues to support current level of service and staffing The first method would be to increase the fire department's budget to include funding for the pipeline positions and add budget for retirements that have already occurred in20Sas well as those that are planned for later in the year. Funds could either come from increasing existing revenue sources, adding new revenue sourceo, decreasing budgets in other departments, or a combination of all the above. 29 Decrease minimum staffing level to 12 on days when rnininlunn staffing is not met Apolicy option for the Fire Department would be tochange the level ofservice to12rather than 13. When nlininnurn staffing is below 13, rather than ca|UMQ in one shift of overtime, the Fine Station 52aid car could beplaced in service rather than mnengine. The aid car can respond to most calls but the reduction in service would come into play when o fire call oon1ae from Station 52'o area. An engine from another station xvoU|d become the first due in unit. lengthening the response time. Engine 52iealso the second inengine for most fire calls inthe City. |fthis engine ieswapped out for the aid car, this will cause odelay ina second engine arriving onscene, putting the first -in unit at risk. The "two in -tm/o out" rule by the State OSHA / L& |. is required for entry into a hazardous environnnent, such as a fire. Each of^TUkwUg'sfire units are Staffed at3. o 77 INFORMATIONAL MEMO Page 12 second staffed fire unit needed Fireground staffing levels (NFPA 1710 will also be which will require anincrease ofaid from our neighboring fire agencies. From January 1, 2019 through April 30. 2019. there were 00 days when nninhnunl staffing was be|ON/ 13, resulting in nniM|nnun1 staffing overtime. Each shift of overtime costs approximately $1,400. If, on those GOdava. minimum staffing was reduced to 12 and the aid car placed in service, total savings in overtime costs would have been $O4thousand. Service Levels Another policy decision is related to service |ave|a. Staff will be bringing forward information on existing service levels to the Public Safety committee inthe near future. This information will be beneficial indiscussing the Fire department budget. Toenhance the discussion onservice levels, staff is gathering data on co|/ ateUaUca. Some of the information being gathered is oa|| types by year and calls by station. Detailed cm|| statistics will help guide future discussions on how best to address the budget situation with the fire department. RECOMMENDATION For information only ATTACHMENTS 78