COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

July 26, 2010

BOARD MEETING DATE:

August 10, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

David S. Boesch, County Manager

SUBJECT:

Agreement with California Department of Forestry for Fire Protection Services for the period July 1, 2009 through June 30, 2012

RECOMMENDATION:

Adopt a Resolution authorizing execution of an agreement with California Department of Forestry (CAL FIRE) to provide fire protection services for the term of July 1, 2009 through June 30, 2012, for a total county fiscal obligation of $21,900,000.

BACKGROUND:

Since 1962, the County has contracted with CAL FIRE to provide fire protection services in County Service Area #1 (CSA #1) and other unincorporated areas of the County not protected by cities or fire districts. In addition to fire and emergency medical services, CAL FIRE provides fire protection planning for new construction, fire prevention activities and life safety inspection in the County areas. CAL FIRE also oversees the operations of three volunteer fire companies.

Through an oversight by staff, the contract was not adopted last fiscal year prior to the expiration of the past three-year contract. However, all services have continued as described in the contract over the past year and by executing this agreement now, this oversight will be remedied.

It should be noted that the prior three-year agreement required CAL FIRE to provide actual annual state cost estimates by the middle of the fiscal year, as the state budget is generally not adopted prior to the end of the fiscal year. The County contract was then amended by the Board to reflect actual costs of the contract. This adjustment has been done annually since FY 06/07.

DISCUSSION:

Because CAL FIRE contracts with multiple jurisdictions, CAL FIRE requires all contracting jurisdictions to sign the standard State-issued contract form. CAL FIRE does provide equal benefits to its employees and also follows a strict non-discrimination policy aligned with the County’s non-discrimination language

County Counsel has reviewed and approved the Resolution and Agreement as to form.

This contract also provides that the County will pay ancillary costs, including administrative fees, supplies and fixed asset costs for fire protection services in the areas covered by this agreement. The amount of the ancillary costs is not included in the $7,279,678 budgeted for personnel services, as it is a direct reimbursement from the County to the vendor.

This action supports the Shared Vision 2025 Environmentally Conscious Community goal as fire protection services protect and preserve our natural and built environment.

Performance Measure(s):

Measure

FY 2008-09
Actual

FY 2009-10
Projected

FY 2010-11

Projected

Percent of fire and EMS responses within time criteria

84%

90%

90%

Number of fire related deaths and injuries

0

0

0

FISCAL IMPACT:

The total amount of the County’s fiscal obligation to CAL FIRE for the three-year contract is $21,900,000. This amount includes $7,279,678 for FY 09/10 which is an actual adjusted amount for personnel costs.

The CAL FIRE contract is funded from two sources. Property tax revenue in the Structural Fire Fund pays for fire protection services provided to properties in unincorporated area that are not in another fire protection district. Property and special tax revenue for fire protection services provided to CSA #1, which is a special district that includes the San Mateo Highlands, is the other source of funding.

Due to an ongoing operating deficit in the Structural Fire Fund, the General Fund provided a $915,000 subsidy to the CAL FIRE contract in FY 2009-10. The Board Finance and Operations Committee continues to explore alternatives to eliminate this General Fund subsidy and to set aside funds for vehicle and fire station replacement.