MEMORANDUM ROBERT MCFALL, INTERIM CITY MANAGER STEPHEN C. LIEBERMAN, FIRE CHIEF - FIVE CITIES FIRE AUTHORITY

MEMORANDUM TO: FROM: SUBJECT: DATE: CITY COUNCIL ROBERT MCFALL, INTERIM CITY MANAGER STEPHEN C. LIEBERMAN, FIRE CHIEF - FIVE CITIES FIRE AUTHORITY CONSIDERATION OF PROVIDING INPUT AND/OR DIRECTION TO THE FIVE CITIES FIRE AUTHORITY ("FCFA") REPRESENTATIVE REGARDING THE FCFA'S PRELIMINARY BUDGET FOR FY 2015/16 MAY 26, 2015 RECOMMENDATION: Review the Five Cities Fire Authority ("FCFA") preliminary budget and provide input and/or direction to the City's appointed Five Cities Fire Authority representative. FINANCIAL IMPACT: There is no financial impact related to the Council providing input and/or direction to the City's appointed FCFA representative. BACKGROUND: At the May 12, 2015 Council meeting, staff was requested to place the FCFA preliminary budget on an upcoming agenda, specifically to provide Council the opportunity rto provide input and/or direction regarding the preliminary budget to the FCFA representative. This request was made in accordance with Section 8 of the City Council Operations Manual entitled, "Guidelines for Council Direction on Items from Appointed Boards and Committees." Council members appointed to serve on regional and local boards and committees are granted authority to make decisions in the best interest of the City as well as the general public and interests served by the specific agency. Section 8 of the City Council Operations Manual provides that prior to an item that meets certain criteria, which is scheduled to be voted on by a board or committee that a member of the City Council has been appointed to, is heard by the board or committee, the item should be placed on the City Council agenda for direction and/or input. The FCFA preliminary budget item meets that criteria as it will result in a financial impact to the City of over $10,000. ANALYSIS OF ISSUES: The FCFA Joint Powers Authority ("JPA'') Board is currently considering the preliminary budget for FY 2015/2016, as presented to the Board by the Fire Chief. The key points under discussion are: Specific application of the cost allocation formula defined in the JPA, resulting in assuming approximately 48% of the total operating budget, as opposed to the previous 45%; Item 11.a. - Page 1

CITY COUNCIL CONSIDERATION OF PROVIDING COMMENTS TO THE FIVE CITIES FIRE AUTHORITY ("FCFA") REPRESENTATIVE REGARDING THE FIRE AUTHORITY'S PRELIMINARY BUDGET FOR FY 2015/16 MAY 26, 2015 PAGE2 Consideration of an additional Battalion Chief position; Consideration of increasing the hourly rate for Fire Fighter Reserves; and Consideration of establishing a debt service schedule to replace one fire engine. For Council's information, specific details of the requests are contained in the attached Preliminary Budget proposal. Also attached is the JPA Board direction to the Fire Chief from the May 15, 2015 meeting regarding the budget proposal. At this point, the full budget request has been incorporated into the preliminary budget to be considered by Council at its May 26, 2015 meeting for budget implication and balancing purposes. Following the final determination by the FCFA JPA Board, the budget will be adjusted accordingly for Council's final consideration. Staff has no recommendations associated with this item, as it is intended solely for the purpose of providing input and/or direction to the FCFA representative. Staff will be available for any clarifying questions the City Council may have. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Review the FCFA Preliminary Budget and provide input and/or direction to the City's appointed representative; or 2. Provide direction to staff. ADVANTAGES: The City Council has the opportunity to provide input and/or direction to the FCFA representative with regard to the FCFA's preliminary budget for FY 2015/16. DISADVANTAGES: No disadvantages are identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, May 21, 2015. The Agenda and staff report were posted on the City's website on Friday, May 22, 2015. Attachments: 1. FCFA Preliminary Budget Staff Report 2. Board direction provided to the Fire Chief from May 15, 2015 Board Meeting on Budget Proposal Item 11.a. - Page 2

ATTACHMENT 1 MEMORANDUM TO: FROM: SUBJECT: FIVE CITIES FIRE AUTHORITY BOARD OF DIRECTORS STEVE LIEBERMAN, FIRE CHIEF DEBBIE MALICOAT, TREASURER CONSIDERATION OF PRELIMINARY BUDGET FOR FISCAL YEAR 2015-16. DATE: MAY 15, 2015 RECOMMENDATION: It is recommended the Board of Directors receive and provide direction on the preliminary budget for fiscal year 2015-16. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The preliminary budget for fiscal year 2015-16 serves as a guideline to the budget to be adopted in June 2015. The preliminary expenditure total of $3,921,500 includes the addition of a Battalion Chief position and an increase in compensation for Reserve Firefighters, as discussed in more detail. BACKGROUND: The proposed FY 2015-16 budget of $3,921,500 reflects slight changes to individual non-staffing line item budgets based on staff's review of the ongoing operational needs of the department and foreseeable one-time expenditures. The budget includes 19 full time employees, two part-time employees and 28 Reserve Firefighters. A new Battalion Chief position is included in the employee count, at an estimated cost of $175,500. Additional information and discussion about this- position is provided later in this report. The budget includes a reduction in contractual services of $49,200 from the previous year, due primarily to the services previously related to the assessment election. An increase of approximately $28,000 is anticipated in retirement expenses due to the actuarial calculation of required contributions to CalPERS. In addition, with the implementation of the Affordable Care Act and changes in employee coverage options, health insurance contribution costs are expected to increase by $30,600. The budget anticipates an unexpended savings from FY 2014-15 non-staffing line items of approximately $178,400. This savings is expected to be offset by additional staffing costs of approximately $221,000 due to several factors including unanticipated unemployment costs for the SAFER grant-funded employees that were laid off during the fiscal year, the unexpected non-work injury of a Captain that requires backfilling his shifts by another employee at the overtime pay rate, and the current Acting Battalion Chief position. Item 11.a. - Page 3

FIVE CITIES FIRE AUTHORITY BOARD OF DIRECTORS PRELIMINARY BUDGET FY 2015-16 MAY 15, 2015 PAGE2 At the inception of the JPA, costs were allocated 45% to, 35% to Grover Beach, and 20% to Oceana. Since that time, contributions have continued to be allocated based on the 45/35/20 split. However, this year, staff proposes to utilize the allocation formula in the JPA agreement. The JPA agreement uses a four-part allocation formula with 25% of the costs spread to the partner agencies based on proportion of population, 25% based on proportion of assessed property values, 25% based on a fixed proportion, and 25% based on proportion of service calls. After applying the allocation formula, the proportional share for each community has adjusted slightly to 48% to, 33% to and 19% to Oceana. Each jurisdiction's contributions are as follows: FY 2014-15 $1,582,448 1,230,793 723,710 FY 2015-16 $1,846,838 1,283,895 754,667 Increase $ / % $264,390 / 17% 53, 102 / 4% 30,957 / 4% Should there be no unforeseen major expenses in FY 2015-16 the Authority will have an ending fund balance of approximately $224, 100. This fund balance reflects a reserve of approximately 6% of ongoing expenditures. This is below the Board's goal of a 15% reserve. Significant budget changes from the previous fiscal year include the addition of a Battalion Chief position and an increase to the pay rates for Reserve Firefighters as discussed in more detail below. Battalion Chief The Five Cities Fire Authority is served by one Battalion Chief, responsible for training, operations, emergency management and operations, development of policies and procedures, supervision of all personnel and duty coverage 24x7x365. The fire prevention program is assigned to a Fire Captain who also is responsible for an engine company shift schedule. Other program assignments which include communications and technology, fleet management, employee scheduling, maintenance, repair, and replacement of personal protective and other equipment have been pushed down to the Captain and Engineer levels due to staffing constraints and workload requirements. This added workload on the Captain and Engineer classification has caused a scheduling conflict with required national and state training requirements. During the recent Fire Chief recruitment, an "Acting Battalion Chief' was created to assist the interim Fire Chief with management responsibilities and duty coverage. This interim program created a vacant Captain's position which in turn offered a career development opportunity by allowing Engineers to rotate into the vacant Captain's Item 11.a. - Page 4

FIVE CITIES FIRE AUTHORITY BOARD OF DIRECTORS PRELIMINARY BUDGET FY 2015-16 MAY 15, 2015 PAGE3 position. This program is currently in place, providing two Battalion Chief level personnel to share workload and duty coverage. After observing workflow, program management and related productivity, and interviewing over 50% of the staff, the Fire Chief has determined the need for a second Battalion Chief position. A second mid level management employee will enhance productivity and oversight in these areas: Focused employee supervision, evaluation, and coaching with an appropriate span of management control Assumption of program responsibility from shift-based suppression personnel Direct management of the fire prevention program, including plan review, inspection coordination, cost recovery and overall expansion of inspection program with a continued goal of risk mitigation Assume lead responsibility for developing a community-wide disaster preparedness and public education program Perform role of Public Information Officer as directed by Fire Chief Perform emergency management function to support City Emergency Operation Center activation Shared Duty Coverage with existing Battalion Chief, commanding emergency operations While both management and represented personnel support this addition to staff, other alternatives exist for Board consideration. The existing "Acting Battalion Chief' assignment could be extended at an annual cost estimated at $120,000. Risk associated with this option include continued overtime for backfilling an open Captain's position, the potential that no other interested candidate exists for this rotational assignment, and that the FCFA is reducing suppression personnel by leaving a Captain's position unfilled. Another alternative would be to not continue the acting position and to rely on the existing Battalion Chief and Fire Chief to absorb additional workload and share duty coverage. While this alternative would result in the most favorable cost impact to the organization, a failure to fill the additional Battalion Chief position would result in a continued "reactive" operational approach to management of the organization, and require that program management responsibilities continue at the suppression staff level. Reserve Firefighters The "Firefighter" job classification is filled by part time employees. Minimum job qualifications for this critical position include: successful completion of an accredited fire academy and a valid California Emergency Medical Technician (EMT) card. This position has significant employee retention challenges. Recruitment efforts that in the past yielded 10-15 applications are currently resulting in 5-6 applications. Further Item 11.a. - Page 5

FIVE CITIES FIRE AUTHORITY BOARD OF DIRECTORS PRELIMINARY BUDGET FY 2015-16 MAY 15, 2015 PAGE4 screening and successful completion of a Live Scan fingerprinting process has reduced viable candidates. The current hourly pay scale is: Probationary $1 O/hour Firefighter $11/hour Driver/Operator $12/hour Recent payroll surveys have indicated that this hourly rate is not competitive with fast food positions, yet the Firefighter position requires a specific skill set and the ability to perform arduous tasks in stressful situations. An hourly increase would assist in both recruitment and retention of this critical position. Staff recommends an increase of $2.00 per hour with a plan to review and adjust the rate in the subsequent budget period {2016/2017). Based on budget assumptions that the reserve firefighter program requires approximately 30,000 hours annually for coverage, the total impact to the organization is $60,000. Looking toward the future There are several changes that could occur that would result in amendments to the FY 2015-16 budget. First, the Authority's long-term need for unified dispatching service is not addressed in the preliminary 2015-16 budget. Currently and Oceana independently contract with for dispatching services. The FCFA budget does not include these costs. It is anticipated that during the fiscal year, staff will move forward with a resolution to this issue. Second, during the fiscal year, the Fire Chief anticipates engaging the services of a qualified consultant to assist in the preparation of a strategic plan for the organization. Any recommendations or changes that arise as a result of that strategic plan are not anticipated in the current budget and may not be able to be accommodated without amending the budget. Third, the budget does not provide funding for equipment or apparatus replacements that will be necessary in the future. The current fund balance may be sufficient to provide for the repair or replacement of an unanticipated equipment failure; however it is not sufficient to provide for the ongoing and recurrent need to replace equipment and apparatus. Replacement Fire Engine As previously reported by staff, fire engines should remain in service for 15-20 years {with the last five years of service in reserve status). The FCFA fleet has two engines that will be 20 years old in 2016, and one engine which will be 12 years old in 2016. The third engine was manufactured by a company that is no longer in business and requires proprietary parts which are both expensive and difficult to source. Item 11.a. - Page 6

FIVE CITIES FIRE AUTHORITY BOARD OF DIRECTORS PRELIMINARY BUDGET FY 2015-16 MAY 15, 2015 PAGES The FCFA JPA partners have current debt service related to the acquisition of Truck 5. This $1 million vehicle was 75% funded with a federal grant, and the JPA partners incurred debt service to pay off the remaining $250,000. One annual debt service payment remains in the amount of $38,500, payable in FY 2015-16. Initial estimates for a replacement fire engine range from $525,000 to $575,000. A 10-year lease/purchase contract would require an annual debt service payment of approximately $69,000 for a ten year period with no down payment. Once ordered, the fire engine will be delivered after an 8-month build, and the first payment would be due in the 12th month. If a replacement vehicle is not ordered, the aging fleet will continue to require a substantial investment in maintenance. ALTERNATIVES: The following alternatives are provided for Board of Directors consideration: 1. Approve staff recommendation; 2. Do not approve staff recommendation; or 3. Provide direction to staff. ADVANTAGES: The preliminary FY 2015-16 budget provides for the immediate needs of the Authority. DISADVANTAGES: The preliminary FY 2015-16 budget does not provide for the long term needs of the Authority. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in accordance with the Brown Act on Tuesday, May 12, 2015, in front of the following buildings: City Hall, 300 E. Branch Street, Arroyo Grande; Headquarters - Station 66, 140 Traffic Way, ; City Hall, 154 S. 8th Street, ; Station 68, 701 Rockaway Avenue, Grover Beach; and Oceana Community Services District, 1655 Front Street, Oceana. The Agenda and report were posted on the Authority's website on Tuesday, May 12, 2015. No public comments were received. ATTACHMENTS: Preliminary Budget Item 11.a. - Page 7

FIVE CITIES FIRE AUTHORITY BUDGET SUMMARY For the Fiscal Year Ending June 30, 2016 Actual 2013 2014 Fiscal Year 2015 Budget Amended Estimated Original Budget Budget Actual 2016 Beginning Fund Balance $ 278,484 $ 366,827 $ 470,772 $ 394,289 $ 394,289 $ 224,136 Revenues 4,019,662 4,499,090 3,733,751 3,912,651 3,900,991 3,921,500 Expenditures: Salaries & Benefits Current Expenses Equipment Replacement Total Expenditures 3,466,589 3,656,018 415,569 501,153 40,146 314,457 3,922,304 4,471,628 3,174,000 3,322,700 3,544,338 3,372,000 536,800 579,200 417,191 496,500 47,000 126,000 109,615 53,000 3,757,800 4,027,900 4,071,144 3,921,500 Prior period adjustment (9,015) Change in Fund Balance 97,358 27,462 (24,049) (115,249) (170,153) Ending Fund Balance $ 366,827 $ 394,289 $ 446,723 $ 279,040 $ 224,136 $ 224,136 Key assumptions: Reserves at $14/hr Added Battalion Chief Item 11.a. - Page 8

FIVE CITIES FIRE AUTHORITY BUDGET PROJECTIONS For the Fiscal Year Ending June 30, 2016 FD DEPT ACT ACCOUNT NAME REVENUES 290 0000 4301 INTEREST 290 0000 4422 ARROYO GRANDE FIRE REIMBURSEMENT 290 0000 4443 GROVER BEACH FIRE REIMBURSEMENT 290 0000 4444 OCEANO FIRE REIMBURSEMENT 290 0000 4458 STATE GRANT 290 0000 4491 SAFE GRANT 290 0000 4726 FIRE IMPACT FEES 290 0000 4729 FIRE-FIRST RESPONDER SUPPORT 290 0000 4730 FIRE-STRIKE TEAM REIMBURSEMENT 290 0000 4807 EXPENSE RECOVERY Actual 2013 2014 155 1,551,420 1,551,420 1,206,660 1,206,660 709,520 709,520 254,970 426,654 535,327 548 4,116 26,087 21,231 5,272 147,191 93,501 68,500 Current Year Budget Act1v1ty Current 2016 Budget vs 2016 Budget VS Budget Estimated 2015 Amended 2015 Original Base Budget Adjustments 2015 2015 2016 Budget Budget - 200 200 360 - (200) - 1,582,448 1,582,448 1,582,448 1,846,838 264,390 264,390 1,230,793-1,230,793 1,230,793 1,283,895 53,102 53,102 723,710-723,710 723,710 754,667 30,957 30,957-30,000 30,000 39,505 - (30,000) - 160,700-160,700 100,000 - (160,700) (160,700) 500-500 500 500 - - 20,600-20,600 20,600 20,600 - - - 148,700 148,700 171,975 - (148,700) - 15,000-15,000 31,100 15,000 - - EXPENDITURES 290 4211 5101 SALARIES FULL-TIME 290 4211 5102 SALARIES PERMANENT PART-TIME 290 4211 5103 SALARIES TEMPORARY PART-TIME 290 4211 5105 SALARIES OVERTIME 290 4211 5108 HOLIDAY PAV 290 4211 5109 SICK LEAVE PAY 290 4211 5110 ANNUAL LEAVE BUY BACK 290 4211 5111 VACATION BUY BACK 290 4211 5112 SICK LEAVE BUY BACK 290 4211 5113 VACATION LEAVE PAY 290 4211 5114 COMPENSATION PAY 290 4211 5115 ANNUAL LEAVE 290 4211 5121 PERS RETIREMENT 290 4211 5122 SOCIAL SECURITY 290 4211 5123 PARS RETIREMENT 290 4211 5126 STATE DISABILITY INS (SDI) 290 4211 5127 DEFERRED COMPENSATION 290 4211 5131 HEALTH INSURANCE 290 4211 5132 DENTAL INSURANCE 290 4211 S133 VISION INSURANCE 290 4211 5134 LIFE INSURANCE 290 4211 5135 LONG TERM DISABILITY INSURANCE 290 4211 5136 RETIREES HEATLH INSURANCE 290 4211 5141 WORKERS COMPENSATION 290 4211 5142 UNEMPLOYMENT INSURANCE 290 4211 5143 UNIFORM ALLOWANCE 290 4211 5147 EMPLOYEE ASSISTANCE PROGRAM Subtotal 1,286,088 1,231,330 30,616 21,650 333,193 403,254 205,832 364,216 68,574 62,551 18,495 30,122 19,566 6,300 16,180 17,916 3,722 4,209 52,067 30,966 25,753 26,623 10,674 4,659 484,604 417,332 144,409 147,369 3,744 5,435 13,748 15,418 2,170 905 212,328 201,435 20,816 20,157 4,522 4,382 2,085 1,920 6,734 6,084-5,121 69,500 80,077 240 6,270 3,754 4,512 521 479 3,039,935 3,120,692 1,427,000-1,427,000 1,294,819 1,560,500 133,500 133,500 43,600-43,600 1,750 42,100 (1,500) (1,500) 315,400-315,400 360,410 368,000 52,600 52,600 189,300 148,700 338,000 454,165 189,300 (148,700) - 61,600-61,600 70,687 61,600 - - - - - 44,564 - - - 6,300-6,300 6,393 7,000 700 700 17,900-17,900 42,800 40,000 22,100 22,100 4,200-4,200 2,557 4,000 (200) (200) - - - 16,087 - - - - - - 28,011 - - - - - - 5,864 - - - 389,800-389,800 447,604 448,200 58,400 58,400 130,700-130,700 160,147 144,200 13,500 13,500 5,400-5,400 4,302 6,200 800 800 14,400-14,400 15,434 10,800 (3,600) (3,600) 1,800-1,800 1,995 3,000 1,200 1,200 252,200 252,200 251,238 300,300 48,100 48,100 20,200-20,200 20,097 20,800 600 600 4,700-4,700 4,545 5,200 500 500 2,300-2,300 2,105 2,400 100 100 5,300-5,300 6,723 8,400 3,100 3,100 - - 1,475 - - - 101,100-101,100 106,262 139,300 38,200 38,200 1,500-1,500 46,745 5,000 3,500 3,500 18,000-18,000 2,890 5,000 (13,000) (13,000) 600-600 600 700 100 100 3,013,300 148,700 3,162,000 3,400,269-3,372,000 210,000 358,700 2 Item 11.a. - Page 9

FIVE CITIES FIRE AUTHORITY BUDGET PROJECTIONS For the Fiscal Year Ending June 30, 2016 FD DEPT ACT ACCOUNT NAME 290 4211 S201 SUPPLIES - OFFICE 290 4211 S206 SUPPLIES - EMS 290 4211 S208 POSTAGE/MAILING 290 4211 S2SS SPECIAL DEPARTMENT SUPPLIES 290 4211 S272 PROTECTIVE/SAFETY CLOTHING 290 4211 S273 SMALL TOOLS 290 4211 S301 ADVERTISING 290 4211 S303 CONTRACTUAL SERVICES 290 4211 S306 PRINTING SERVICES 290 4211 S31S PRE-EMPLOYMENT PHYSICALS 290 4211 S316 JOB RECRUITMENTEXPENSE 290 4211 S324 FORENSIC MANDATE SERVICES 290 4211 S32S HAZMAT/SAFETY PROGRAM 290 4211 S401 UTILITIES 290 4211 S403 TELECOMMUNICATIONS 290 4211 SSOl TRAVEL)CONFERENCE/TRAINING 290 4211 SS03 MEMBERSHIPS & SUBSCRIPTIONS 290 4211 SS04 PUBLIC RELATIONS 290 4211 SS08 MISC EXPENSE 290 4211 SSS3 RENT-BUILDING AND LAND 290 4211 SSSS BANK CHARGES 290 4211 SS76 LIABILITY INSURANCE-JPA SHARE 290 4211 S599 WEED ABATEMENT 290 4211 S601 MAINTENANCE - VEHICLES 290 4211 S602 MAINTENANCE - OFFICE EQUIPMENT 290 4211 S603 MAINTENANCE - MACHINERY & EQUIPMENT 290 4211 S604 MAINTENANCE - BUILDINGS 290 4211 S60S MAINTENANCE - GROUNDS 290 4211 S606 MAINTENANCE - RADIO COMMUNICATIONS 290 4211 S608 GAS & OIL Subtotal 290 4211 6101 DATA PROCESSING EQUIPMENT 290 4211 6103 COMPUTER LICENSING SOFTWARE 290 4211 6201 MACHINERY & EQUIPMENT Subtotal SAFER GRANT FUNDED 290 4219 SlOl SALARIES FULL-TIME 290 4219 SlOS SALARIES OVERTIME 290 4219 S108 HOLIDAY PAY 290 4219 S109 VACATION PAY 290 4219 Sll3 SICK LEAVE PAY 290 4219 S114 COMPENSATION PAY 290 4219 S121 PERS RETIREMENT 290 4219 S122 SOCIAL SECURITY Actual 2013 2014 S,743 6,979 7,211 S,497 1,384 1,SSO ls,079 18,1S7 26,138 22,3S9 1,283 1,714 496 396 109,2SO 18S,088 3,43S 1,89S 3,794 1,64S 1,846 74 3,889 l,7s9 3,061 3,000 30,893 3S,332 7,844 11,440 20,784 18,181 3,674 2,862 S,101 6,414 1,811 2,334 ls,000 30 ls,000 20,206 16,634 2,292 11,S30 62,892 S4,312 1,044 1,173 7,733 14,401 S,169 7,2SO 103 23 8,711 8,372 39,673 4S,782 41S,S69 S01,1S3-8,31S 232,667 2,123 ls,007 29,708 66,783 40,146 314,4S7-229,72S 264,077 6,660 22,394 11,631 1S,7S4 S,212 3,08S S,074 3,S02 17,766 82,096 96,196 20,664 26,929 Current Year Budget Act1v1ty Current 2016 Budget vs 2016 Budget VS Budget 'Estimated 201S Amended 201S Original Base Budget Adiustments 201S 201S 2016 Budget Budget 6,SOO - 6,SOO 8,213 7,000 500 500 8,000-8,000 7,242 8,000 - - 1,800-1,800 2,0SO 1,800 - - 20,000 16,600 36,600 24,197 20,000 {16,600) - 32,SOO - 32,SOO 17,2S3 35,000 2,500 2,500 3,000-3,000 1,488 3,000 - - 1,100-1,100 32S 1,000 {100) {100) ls0,200 ls0,200 84,163 101,000 {49,200) (49,200) S,000 - S,000 3,021 5,000 - - S,000 - S,000 1,272 5,000 - - 3,000-3,000 42S 2,000 (1,000) (1,000) S,000 - S,000 99 3,000 (2,000) (2,000) 6,SOO - 6,SOO 4,329 15,500 9,000 9,000 38,000-38,000 38,069 38,000 - - 32,000-32,000 ls,773 20,000 {12,000) (12,000) 13,SOO - 13,SOO 14,S68 13,500 - - 3,700-3,700 2,417 3,700 - - 6,000-6,000 3,127 6,000 - - l,soo - l,soo 2,927 2,500 1,000 1,000 ls,000 - ls,000 ls,000 15,000 - - 300-300 ls 300 - - 24,000-24,000 ls,886 20,000 (4,000) (4,000) ls,000 - ls,000 S,121 12,000 (3,000) {3,000) S7,000 21,400 78,400 79,S26 7S,OOO (3,400) 18,000 3,000-3,000 704 3,000 - - 13,000-13,000 7,726 13,000 - - - 8,000-8,000 S,S89 8,000 - - 6,000-6,000 246 6,000 - - 8,200 4,400 12,600 11,369 8,200 (4,400) - 4S,OOO - 4S,OOO 4S,0Sl 45,000 - - S36,800 42,400 S79,200 417,191-496,SOO (82,700) (40,300) 10,000 2,000 12,000 7,4S4 10,000 (2,000) - 27,000 4,000 31,000 22,026 33,000 2,000 6,000 10,000 73,000 83,000 80,13S 10,000 (73,000) - 47,000 79,000 126,000 109,61S - S3,000 (73,000) 6,000 84,900-84,900 SS,122 - (84,900) (84,900) 4,SOO - 4,SOO 3,900 - (4,500) (4,500) 4,600-4,600 4,222 - (4,600) (4,600) - - 18,990 - - - - S,718 - - - - - - 2,296 - - - 28,200-28,200 31,Sll - (28,200) (28,200) 6,900-6,900 7,34S - (6,900) (6,900) 3 Item 11.a. - Page 10

FIVE CITIES FIRE AUTHORITY BUDGET PROJECTIONS For the Fiscal Year Ending June 30, 2016 FD DEPT ACT ACCOUNT NAME 290 4219 5126 STATE DISABILITY INS (SDI) 290 4219 5131 HEALTHINSURANCE 290 4219 5132 DENTAL INSURANCE 290 4219 5133 VISION INSURANCE 290 4219 5134 LIFE INSURANCE 290 4219 5141 WORKERS COMPENSATION 290 4219 5142 UNIFORM ALLOWANCE 290 4219 5147 EMPLOYEE ASSISTANCE PROGRAM Subtotal Actual 2013 2014 2,677 3,515 45,005 55,408 5,070 6,478 715 1,056 591 692 15,100 14,600 - - 133 175 426,654 535,326 Current Year Budget Act1v1ty Current 2016 Budget vs 2016 Budget vs Budget Estimated 2015 Amended 2015 Ongmal Base Budget Adjustments 2015 2015 2016 Budget Budget 1,100-1,100 977 - (1,100) (1,100) 16,800-16,800 12,185 - (16,800) (16,800) 1,700-1,700 1,445 - (1,700) (1,700) 300-300 263 - {300) (300) 700-700 95 - (700) (700) 4,800-4,800 - - (4,800) (4,800) 6,000-6,000 - - (6,000) (6,000) 200-200 - - (200) (200) 160,700 160,700 144,069 (160,700) (160,700) GRAND TOTAL EXPENDITURES 3,922,304 4,471,628 3,757,800 270,100 4,027,900 4,071,144 3,921,500 (106,400) 163,700 4 Item 11.a. - Page 11

2015-16 Expenditure budget less costs recovered through fees/charges Expenditure budget to allocate t? jurisdictions 3,921,500 (36,100) 3,885,400 25% of budget to allocate $ 971,350 Funding Formula: 1) 25% based on proportion of population Arroyo Grange Total Population - - ---- - ~ 17,334 13,153 7,286 37,773 % 46% 35% 19% Source: Ca Dept of Finance Jan 2014 population Ca Dept of Finance Jan 2014 population 2010 Census Allocation: $ $ $ 445,752 338,235 187,363 2) 25% on-proportion ofass es!;ea Total Assessed Value 2,441,687,041 1,345,531,552 544,982,804 4,332,201,397 56% 31% 13% Source: County _Auditor/Controller Tax Rate Info & Assessed Valuation report for 2014-15 Gross Secured Assessed Value for each jurisdiction Allocation: 547,466 301,690 122,194 ------ --------.----~~--------- ~-------- --------- --~----- ----,...---~~---------- ~-------- -- - ) i I i 5 Item 11.a. - Page 12

3) 25% based on fixed proportion - service levels at inception of JPA 36.5% 36.5% 27.9~ Allocation: 354,543 354,543 O_CSD,262,265 4) 25% based on proportion of service calls 1,564 51% Calendar 2014 total response info from Chief Lieberman 907 30% Based on situs - where call occurs, not which station responds 573 19% Total service calls 3,044 Allocation: 499,077 289,427 182,846 Total Allocation 1,846,838 1,283,895 754,667 Allocation% 48% 33% 19% Current Variance % Increase 1,582,448 264,390 17% 1,230,793 53,102 4% 723,710 30,957 4% 3,885,400 3,536,951 6 Item 11.a. - Page 13

ATTACHMENT 2 Memorandum To: Robert McFall, Interim City Manager Cc: Five Cities Fire Authority Board Members: Barbara Harmon, John Shoals, Karen White, Board Treasurer Debbie Malicoat From: Stephen Lieberman, Fire Chief/ Executive Officer Date: Subject: May 20, 2015 Notes from Audio Recording - Five Cities Fire Authority Board Direction to Fire Chief, May 15 2015 Meeting EfWtiQ W WW#S*i A i'#iaii#wli4 *fu S I,. MQEWM SI Good afternoon Bob. As requested, listed below is the 11 Board Direction 11 to me at the conclusion of the 5/15/15 FCFA Board Meeting staff report on the preliminary budget. The draft minutes for the meeting have not been prepared as of this date. FCFA staff has contacted the manufacturer of the audio compression software that was recently purchased in order to post recordings to the FCFA web site as the file size of the 5/15/15 recording is precluding staff from uploading the file to the web site. Board Direction related to preliminary 2015/2016 FCFA Budget: 1) Include more comprehensive budget assumptions 2) Move forward with enhanced internal controls for expenditure tracking (Mutual Aid/ Strike Team overtime expenditure as compared with Mutual Aid I Strike Team reimbursement, develop spreadsheet to accompany Firehouse database tracking vehicle maintenance) 3) Continue to scrutinize line item expenditures I will be preparing a comprehensive budget document for FCFA Board review at the regularly scheduled June 19, 2015 meeting that includes these items. Please contact me with any questions or if you desire additional information. Item 11.a. - Page 14