10C Action 2007 0604 - Laserfiche WebLink

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. ~ EXHIBIT 1 Mayor Young and members of the City Council, You have been aware of the concerns I've expressed about the negative fmancial situation due to our contract with the Alameda County Fire Department. In the Finance Committee and in session with the entire Council I have asked questions and given opinions that express my frustration with our existing contract terms and yearly budget increases. Earlier this month I spent time with the management of the Alameda County Fire Department to better up.derstand our mutual responsibilities. The conclusion of that meeting clarified my frustration. The Alameda County Fire Department has become a public agency operating as a private monopoly with no accountability. Cost increases are unchecked and will continue to grow out of control to the detriment of the City of San Leandro. It is time for us to do something. Until I spent the time researching this, I did not see the extent of this problem. It is likely you are not aware of all of the contract terms that put San Leandro in an egregious financial position. Here are some of the facts. 1. In the last 6 years, our fire contract has increased $5 M dollars, going from $10 M in 2000 to $15M this year. That is almost $IM increase per year and a 50% increase over 6 years. 2. Each year the City Council is approached with an increase, but we are given no choice but to approve it. 3. Last fiscal year 05-06, in order to balance our budget, the Police department cut 8 police officers to save over $1 M . In the same year the County Fire Department asked for an $800k increase to their contract. The City Council pushed back resulting in authorization of a $600k increase. But by the end of the year, the actual overtime budget was predicted to come in: at $200k over budget, which is why tJ;1is fiscal year 06-07 they received more than $900k as an increase to their contract. 4. No matter what budget number is approved, the Alameda County Fire Department can invoice and will receive more money. 5. Over the last 5 years, the Year End actuals have exceeded the budget amount on . average of $162k per year. The way our contract is written, we have to pay and then we have to go on to approve an increase to the contract for the next year. . 6. For each of these overages, while the City is informed, there is no process to review and no process to refuse or reduce payments to overages of the contract. These amounts are regularly in excess of our City Manager's signing authority, yet the Council never reviews nor approves these contract changes. 7. As a regular process, the County Fire Department invoices in advance for services. For example, we pay in February for services rendered in March. This creates an ongoing $1 M in negative cash flow to the City Reserves. 8. The bargaining teams between the Firefighters and the County receive no input from any of the member agencies. San Leandro, Dublin, and Lawrence Berkeley