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Home My WebLink About2013/05/07 Item 04CITY COUNCIL AGENDA STATEMENT _ w~i ~ ""~"CHULAVISfA MAY 7, 2013, Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING AMENDMENTS TO THE FISCAL YEAR 2012/13 FIRE DEPARTMENT BUDGET TO UPDATE THE APPROPRIATION FOR THE ADVANCED LIFE SUPPORT SERVICE PROGRAM STARTUP COSTS SUBMITTED BY: FIRE CHIEF REVIEWED BY: CITY MANA C ,DS - 4/STHS VOTE: YES ^X NO SUMMARY On Mazch 26, 2013, the City Council approved an agreement between the City and American Medical Response Ambulance Service, Inc. (AMR) for Emergency Medical Support Services for the First Responder Advance Life Support, or "FRALS" program. Included within the resolution to authorize the agreement was an approval to appropriate funds for the startup costs associated with the FRALS program. This item presents for City Council consideration adjustments to the Fiscal Year 2012- 2013 Fire Department Budget due to updated FRALS program startup costs and a correction to the original appropriation. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of a governmental plan of action related to the City's preparedness in the event of a natural or manmade disaster and which will not result in direct or indirect significant physical impacts on the environment. Therefore, pursuant to Section 15060 (c) (3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 4-1 MAY 7, 2013, Item Page 2 of 3 RECOMMENDATION That the City Council approve the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On March 26, 2013, the City Council approved an agreement between the City and American Medical Response Ambulance Service, Inc. (AMR) for Emergency Medical Support Services for the First Responder Advance Life Support (FRALS) program. With the approval of the resolution, the City Council authorized an appropriation from the General Fund reserves to the to the Fiscal Year 2012-2013 Fire Department budget, totaling $665,191. This appropriation was for the FRALS program startup costs. As previously reported, per the agreement with AMR, the General Fund will recoup these initial costs by the end of Fiscal Yeaz 2014-15. Staff has recently updated the startup costs related to the implementation of the FRALS program. Due to this update, staff is recommending changes in the General Fund that require Council approval. The following adjustments are needed to the Fiscal Year 2012- 2013 Fire Department budget. 1. In the March 26 staff report, the FRALS program startup costs were identified as $713,556. Of this amount, $665,191 was appropriated by Council through the March 26 resolution. It was incorrectly identified that $48,365 was paid in a prior fiscal year. It was later determined that this amount has not actually been paid and that this amount does need to be appropriated in the current year. These costs are associated with prior yeaz overtime costs for paramedic training. $48,365 is now requested to be appropriated from General Fund reserves to the Fiscal Yeaz 2012-13 Fire Department's Personnel Services category. This approval would result in a net cost to the General Fund of $48,365 in the current year but is included as part of the repayment schedule. 2. A transfer of $53,981 is being requested from the Capital Expense category to the Supplies and Services category. This change will align the budget with the correct expenditure categories. Computers for the program were included in the previous appropriation as part of the Capital category. This purchase is more accurately reflected in the Supplies and Services category as they do not meet the threshold for capital costs. There is no fiscal impact related to this change. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. 4-2 MAY 7, 2013, Item Page 3 of 3 CURRENT YEAR FISCAL IMPACT Approval of the resolution will result in the appropriation of $48,365 and transfer of $53,981 from Capital Expenses category to Supplies and Services category for the FRALS program startup costs. The Fire Department's Fiscal Year 2012-13 will be amended to reflect this appropriation and transfer. In the current fiscal year there is a negative fiscal impact of $48,365 to General Fund reserves. However, these costs will be repaid over a two year period beginning in fiscal year 2013-14. Combined with the appropriation approved on March 26th, the total appropriation for FRALS program startup costs total $713,556. These costs will not be offset in the current fiscal year, resulting in a total negative General Fund impact of $713,556. However, as noted in the March 26, 2013 staff report, the City will recoup these startup cost from AMR over the first two years of the approved agreement, with $570,845 collected in Fiscal Year 2013-14 (80%) and $142,711 collected in Fiscal Year 2014-15 (20%). This reimbursement will fully offset the initial General Fund impact. ONGOING FISCAL IMPACT Combined with the appropriation approved on March 26`h, the total appropriation for FRALS program startup costs total $713,556. These costs will not be offset in the current fiscal yeaz, resulting in a total negative General Fund impact of $713,556. However, as noted in the Mazch 26, 2013 staff report, the City will recoup these startup cost from AMR over the first two years of the approved agreement, with $570,845 collected in Fiscal Yeaz 2013-14 (80%) and $142,711 collected in Fiscal Year 2014-15 (20%). At the end of the Fiscal Year 2014-15, the City will have fully recouped the negative General Fund impact as a result of the FRALS program startup costs that will be incurred in the current fiscal year. ATTACHMENTS None. Prepared by: Angelica Aguilar, Budget and Analysis Manager, Finance Department 4-3 RESOLUTION NO.2013- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING AMENDMENTS TO THE FISCAL YEAR 2012/13 FIRE DEPARTMENT BUDGET TO UPDATE THE APPROPRIATION FOR THE ADVANCED LIFE SUPPORT SERVICE PROGRAM STARTUP COSTS WHEREAS, on Mazch 26, 2013 the City Council approved a revised agreement with American Medical Response Ambulance Service, Inc. (AMR) for Basic and Advanced Life Support Service within the Chula Vista, Imperial Beach and Bonita/Sunnyside Fire Protection District Exclusive Operating Area ;and WHEREAS, Council approved the proposed agreement between the City and AMR for Emergency Medical Support Services implementing the First Responder Advance Life Support (FRALS) Program; and WHEREAS, Council approved an appropriation of $665;191 to the Fire Department's fiscal year 2012-2013 budget for startup costs related to the implementation of the First Responder Advanced Life Support program as follows: a) $378,459 to Supplies and Services; b) $148,312 to Personnel Services; and c) $138,420 to capital Expenses; and WHEREAS, staff is recommending an amendment to these appropriations resulting in $48,365 net fiscal impact to the General Fund. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the fiscal yeaz 2012/13 Fire Department budget and approve the following: a) An appropriation of $48,365 to Personnel Services, and b) A transfer $51,836 from the Capital Expenses category to the Supplies and Services category. Presented by )avid W. Hanneman Fire Chief Approved as to form by K• ~ `~~ ~ ~~~~1 n j Glen R. Go gms City Attorney 4-4