Comments & Questions: CITYGATE ASSOCIATES “FIRE DEPARTMENT CONSOLIDATION FEASIBILITY ANALYSIS FOR THE CITIES OF MONTEREY, PACIFIC GROVE AND CARMEL”

I. Citygate Associates found that Carmel-by-the-Sea, compared to the Monterey and Pacific Grove fire departments, has “the most ‘fragile’ line firefighter staffing situation and, regardless of consolidation, should strive to add a 3rd full-time firefighter to the engine every day to staff this unit more effectively and at a level comparable to its neighboring fire departments." The additional cost was determined to be $400,000/year to the City.

For FY 2007/08, budgeted Fire expenditures are $1,678,154; not only is this expenditure $59,892 less than Fire expenditures for the preceding fiscal year, it should be $400,000 more for a total Fire expenditure budget of $2,078,154 for FY 2007/08, according to Citygate Associates.

Reference:
Expenditures:

Fire--------------FY------------Police
$ 1,455,521---- 2005-06----$ 2,208,606
$ 1,738,046---- 2006-07----$ 2,495,500
$ 1,678,154---- 2007-08----$ 2,673,132
$ 1,750,950---- 2008-09----$ 2,775,686
$ 1,823,150---- 2009-10----$ 2,866,712

Total Expenditures:
FY 2005-06 $ 11,585,933
FY 2006-07 $ 12,673,147
FY 2007-08 $ 13,094,894
FY 2008-09 $ 13,057,685
FY 2009-10 $ 13,468,207

(Source: City of Carmel-by-the-Sea, General Fund Budget Summary - Revenues and Expenditures, FY 2005-06 Thru FY 2009-10)

Questions: Why has the City Council of Carmel-by-the-Sea under funded the City’s Fire Department? Why did it take a consultant to tell the City Administration and City Council that the City should have a “3rd full-time firefighter to the engine every day to staff this unit more effectively and at a level comparable to its neighboring fire departments?”

II. One Citygate Associates recommendation regards CalPERS; specifically Carmel “should pay off their CalPERS side fund obligation by issue bonds at a lower interest rate than is being charged by CalPERS,” regardless of whether the City decides to consolidate fire operations with the cities of Monterey and Pacific Grove.

Question: With a City Administrator and a Finance Manager, now Administrative Services Director, why did it take a consultant to tell them that the city “should pay off their CalPERS side fund obligation by issue bonds at a lower interest rate?”

III. Citygate Associates found that the “fiscal, legal and operational changes in the fire service make small departments no longer viable in providing fully effective emergency services.”

Questions: Could the same claim be made of a small city’s small police department? In other words, if fire service consolidation is in the best interests of Carmelites, then shouldn’t the city examine potential police department consolidation with other cities? Otherwise, the city’s Police Department budget will continue to grow and be the city’s largest expenditure, increasing from 19.1% of total actual FY 2005-06 expenditures to 21.3% of total proposed FY 2009-10 expenditures. Note: During the same time period, the Fire Department increased from 12.6% of actual FY 2005-06 expenditures to 13.5% of proposed FY 2009-10 expenditures.

IV. Citygate Associates recommends that “Carmel, Pacific Grove and Monterey strongly consider forming a Fire Services Joint Powers Authority;” a Joint Powers Authority (JPA) is an institution permitted under California State Government Code Section 6500-6536 whereby two or more public authorities can operate collectively.

For more information regarding Joint Powers Authority in California, click on Post title above or copy, paste and click
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=gov&group=06001-07000&file=6500-6536

V. Do the members of the Carmel-by-the-Sea Fire Department agree with Citygate Associates Finding #21? “Far more important than fiscal considerations are the operational advantages of consolidation and the creation of a fire department that is sized to provide effective service throughout the three-city area well into the foreseeable future.” Additionally, do the Fire Department members agree with the following statement by Citygate Associates? “There is clear recognition that neither operationally nor with appropriate cost effectiveness can Carmel maintain its own fire headquarters function basically from now on.”