Finance Highlights 2011 0506 - Laserfiche WebLink

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2. Review of FY 2012 Alameda County Fire Department Budget for the City of San Leandro Alameda County (ALCO) Fire Chief Gilbert presented the FY 2011-12 budget presentation for fire services. Gilbert provided an overview of the fire department and the origination. As an entity, ALCO Fire is a dependent fire district, not a true county fire district and does not receive general fund money; monies that ALCO Fire receives can not be shared with any other county department. ALCO Fire Department provides services for the following agencies: 6 Alameda County Unincorporated Area Communities (e.g. Ashland); Cities of San Leandro, Dublin, Newark, Union City; and both the Lawrence and Livermore Laboratories. All agencies pay based on a shared cost allocation, e.g. Alameda County pays 30 %, City of San Leandro pays 20 %, Dublin pays 11%, and all other agencies are proportional. The City of San Leandro has 5 stations and 7 companies. San Leandro is allocated 63 bodies for 3 shifts, 0.5 Deputy Marshal, 0.5 Fire Marshal, and repair of apparatus and equipment. By participated in the shared cost, there is a reduction of overhead and redundancy, thus on overall savings of 10 %. San Leandro is responsible for payment $17.8 million of the $104.7 million overall budget. This is not an exact 20% because the City of San Leandro does not participate in all programs that other jurisdictions participate in. Overall there is a 1.9% increase for the City • of San Leandro for FY 2011-12, and this does not include the cost of equipment or apparatus replacement. it is the recommendation of Gilbert to purchase two new engines. ALCO Firefighters have negotiated a 3 -year contract and there will be no COLA increases. The budget increase is due several variables, including increase of Workers' Compensation and Risk Management Insurance, PERS Retirement rates, and medical and dental rate increases. Gilbert provided an explanation of the pros and cons of providing constant staffing and explained to the Committee that there is a 5% cost savings to pay overtime vs. hiring more staff. Gilbert also stated that ALCO Fire anticipates bidding Workers' Compensation to other insurance carriers for less expensive rates. Mayor Cassidy asked who oversees rate increases and budget recommendations. Gilbert stated that there is a committee of several City Managers and County Administrators. Cassidy asked if there were agencies that have a 2 -year budget as the City of San Leandro anticipates changing to a 2 -year budget next fiscal year. Gilbert stated that currently the City of Union City does and they are able to provide them with the necessary information. Mayor Cassidy requested that Gilbert research peak periods within the City to review the possibility that staff can be reduced. Gilbert stated that he could, however it would take some time. Mayor Cassidy requested that Gilbert return to the Finance Committee in September. Councilmember Gregory inquired on the status of the Operational Center relocation project. Gilbert stated that the bids were scored and four bids met the criteria. He is only allowed to negotiate with the #1 scored bid, and currently it is on hold due to a pending appeal. 3. Discussion Regarding Plan For Possible Future Refinancing Of Public Safety Retirement Plan Side Fund Finance Directory Vesely informed the Finance Committee that a RFQ (Request for Qualifications) has been issued for a Financial Advisor. It is in the best interest of the City to contract with a Financial Advisor to assist the City with any financing projects that may cone, e.g. the Public Safety Side Fund and alternative financing to purchase necessary fire equipment.