HomeMy WebLinkAboutSupplemental email from Robert GoldbergRobin Roberts
From:
Robert Goldberg <rgoldberg@live.com>
Sent:
Thursday, January 25, 2018 1:56 PM
To:
Robin Roberts
Subject:
Supplemental Information On OCFA Contract
Attachments:
Fire.00FA salaries l.pdf; OCFA Charges Worksheetunmodified.xis; OCFA.Charges 17.18
Lixit OCFA.Equity Letter.6.21.17 1.pdf
Hi Robin,
Could you please forward the mail below and attachments above to the three Ad Hoc Fire Services Committee
members whose email addresses I don't have-- Thomas, Garofano, and Horning.
Thank you very much,
Robert
From: Robert Goldberg <raoldberi[Slive.com>
Sem: Thursday, January 25, 20181:46 PM
To: Ellery Deaton; Sandra Massa-Lavitt; mmaronta@emall.com: Joe Kalmick
Cc: Jill Ingram
Subject: Supplemental Information On OCFA Contract
Dear Ad Hoc Fire Services Committee Members,
In preparation for your last meeting, staff gave each of you an extensive background Information packet which
Included copies of the contract and amendments. I don't know what supplemental information you have
subsequently received, but I want to share several other very Informative background documents that I have
in my possession. All of these are in the public domain and were obtained through various channels and at
various times:
1) The current OCFA labor contract: I have attached just the two pages related to salaries. Section 1 shows the
annual September pay increases in the four years from 2016-2019 (4.5%,4.2%, 3.2%, and 1.25%).
2) Ten -Year Table of Cash Contract Charges: This spreadsheet table (sent to me by the OCFA) provides a
breakdown of our actual charges from FY 09/10 through 17/18, and gives estimated charges from 18/19
through 21/22. The last two columns to the far right give the Total Annual Cash Contract Charge and the Total
Annual % Increase. Note that the latter may exceed the "cap" of 4.5% (such as the 5.39% Increase this year
and the projected 5.85% increase next). This is due to two factors. The first is that the cap calculation is not
multiplied by (does not apply to) the Prior Year Service Charge. Instead, it is multiplied by the FY 09/10
"Uncapped Service Charge" ($4.2 million, see row 7) plus all of the prior annual budget growth increases
(column E). The spreadsheet will show you the formulas. The logic here is that this sum is OCFA's actual
current cost of providing service to us and what they agreed to cap. This sum will be more than our "Prior Year
Service Charge" until after all 10 "Catch-up Payments" are added in by the end of FY 19/20. The second
contributing factor is that the annual 59,479 "Shortfall Catch-Up Payment" is added to our Total Service
Charge on top of the 4.5% increase.
3) Annual OCFA Letter to the City regarding Charges for Upcoming Fiscal Year, I have attached the most
recent Letter dated May 31, 2017 for FY 17-18 which began last July. It explains that OCFA base costs will rise
6.28% in FY 17/18, what factors at OCFA caused this Increase, and how the 6.28% is translated into our
increased contract charges. It also makes clear the base cost increase over the 4.5% cop (1.78%) will be
"banked" and applied to the City's charges in a subsequent year.
4) June 21, 2017 Letter to Councilwoman Deaton from Lori Zeller Assistant Chief OCFA: This letter addresses
a couple of questions posed by a member of the public regarding the amount that we pay OCFA. It gives the
background on how our contract charge was originally determined — grandfathered in from when County Fire
began serving the City in 1982-- and states that the current cash contract methodology of determining our
charges cannot be changed "without a change to the JPA." The letter also provides OCFA's estimate of what
they would charge a new member city with the same staffing as ours-- $6.8 million. You may recall that our
consultant, Michele Hernandez, had mentioned this figure at your last meeting in response to Mr. Maronta's
asking if we could possibly renegotiate the contract.
I hope this information is perhaps helpful for your deliberations this coming Monday, or otherwise of interest.
Robert Goldberg
Seal Beach
P.S. I have requested the City Clerk send a copy of this email to those Committee members whose email
addresses I do not have.
MEMORANDUM OF UNDERSTANDING
RELATING TO EMPLOYEES IN THE FIREFIGHTER REPRESENTATION UNIT
2016-2020
ORANGE COUNTY FIRE AUTHORITY
AND
ORANGE COUNTY PROFESSIONAL FIREFIGHTERS ASSOCIATION
IAFF - LOCAL 3631
FOR THE
FIREFIGHTER UNIT
This Memorandum of Understanding sets forth the terms of agreement reached between
the Orange County Fire Authority and the Orange County Professional Firefighters
Association, AFF - Local 3631, as the Exclusively Recognized Employee Organization for
the Firefighter Unit for the period beginning September 1, 2016, through August 31, 2020.
The parties agree that if either side wishes to begin labor negotiations for a successor MOU
within eighteen (18) months prior to the expiration of this MOU, it may request to do so and
the other party will agree to start the negotiations process no later than sixty (60) days after
such request.
Page 1 of 154
ARTICLE XXIV
Section 1.
Base Salary Adiustments
A.
Effective on the first day of the second pay period following Board approval
S 151P2016
of this MOU, employees covered by this Agreement shall receive a four and
one half percent (4.5%) base salary increase.
B.
Effective in the pay period including the date which is exactly one (1) year
201-7
from Board approval of the MOU, employees covered by the Agreement
shall receive a four and two-tenths percent (4.2%) base salary increase.
C.
Effective in the pay period including the date which is exactly two (2) years
$F 2018
from Board approval of the MOU, employees covered by the Agreement
shall receive a three and two-tenths percent 53.2%) base salary increase.
D.
Effective in the pay period including the date which is exactly three (3) years
2A79
from Board approval of the MOU, employees covered by the Agreement
shall receive a one and one-quarter percent (1.25%) base salary increase.
Section 2.
Fire Pilot Ranee Adjustment
A.
Effective the "first full" pay period in January 2001 (Pay Period 3), the range
for the classification of Fire Pilot will be adjusted and maintained to the
equivalent of Fire Captain.
Section 3.
Specialty Pay
A.
Paramedic Pay
Effective the first "full" pay period in January 2001 (Pay Period 3),
employees who are certified to perform paramedic services and who are
assigned by the Authority to perform such services regularly shall be
paid—in addition to their regular salary—approximately fifteen (15)
percent of top step Firefighter base salary per month, prorated on an
houTbasis. Such employees who work an overtime shift as a paramedic
to cover a designated paramedic position, due to the absence of the
regularly assigned employee, shall also receive paramedic pay on a
prorated basis for that overtime shift or portion thereof.
2. Employees who maintain an active paramedic certification and who are
assigned to perform paramedic duties intermittently shall receive
paramedic pay on a prorated basis for each hour the employee performs
paramedic duties.
3. Paramedic pay shall apply to workers' compensation and be considered
as part of the employee's base pay for the eaming of other benefits, as
provided by law.
Page 102 of 154
E
APPENDIX o Salary__.
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Page 136 of 154
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sl ORANGE COUNTY FIRE AUTHORITY
P.O. Box 57115 Irving. CA 92619-7115 1 Fire Autbolity Road, hyine. CA 92602
Jeff Borrnss, M Chief (714)573-6000 wmyacfeara
R00.1��
May 31, 2017
Jill Ingram, City Manager -
City of Seal Beach
2118" Street
Seal Beach, CA 90740.6379
Dear Jill:
Subject Final Cash Contract Charges— FY 2017/18
As required by the First Amendment to the JPA Agreement, this letter provides your final charge
for FY 2017/18. The final cash contract charge to the City of Seal Beach for fila services provided
by the Orange County Fire Authority is $5,163,804. Toted charges include a base service charge,
a shortfall catch-up payment, vehicle replacement costs, and station maintenance costs. The base
service charge is based on the FY 2017/18 Budget, which was adopted by our Board on May 25,
2017.
Costs applicable to cash contract base service chargee increased by 6.28% as shown in
Attachment 1. This increase resulted primarily from increased salary and retirement coats due to
Board approved employee MOU changes, as well as staffing restorations. Because the service
charge cup is 4.5%, the remainder will be recorded (banked) and paid in a subsequent year in
which the service charge cost adjustment is less than the 4.5% cap. The percentage increase of
4.5% has been applied to the base service charge as well as the entire shortfall amount calculated
for Seal Beach per the JPA agreement as shown on Attachment 2.
The amount needed to restore the Facilities Maintenance account to $15,000 per station based on
current year's estimated charge is $13,508. This amount will be included on your quarterly service
charge invoices, and is based on estimates of total FY 2016/17 year-end expenditures. A
reconciliation of actual expenditures will be completed after the close of the 2016/17 fiscal year,
and we will advise you of the final facilities maintenance charge and adjust your quarterly billing
if necessary,.
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[ Akm(me• Mimioe Viejo•P o."•aenveo Seem M.,,.b•Sae Clemeab•9mhee Cepieeano•Seoie Ave• Sed Hank• Sinn •Tuan•Vllm Pink
WMmi.w • Yofie U de • ant W4woW d Ameofl)".Cooety
AND SMOKE ALARMS SAVE LIVES
Jill hpatn, City Manager
May 31, 2017
Page 2 of 2
The final charge is comprised of the following components:
Description
Charge
PY 2016/17 Adjusted Base Service Charge
"2010 Shortfall" Installment Payment
FY 2017/18 Final 4.5%.Increase
$4,795,278
59,479
223,817
FY 2017/18 Service Charge
$S 74
Plus Facilities Mamtemnoe Charge
Plus Vehicle laaemeot ChaMe71
13,508
722
Total FY 2017/18 Clarge
$5,163,904
Detailed calculations are attached for your information, if you have any questions, please contact
Deborah Gunderson at (714) 573-6302.
Respectfully,
ON,
Lori Zeller, Assistant Chief
Business Services
Attachments
cc: Bllery Denton, Council Member, City of Seel Beach
Ken Cruz, Division Chief
Deborah Gunderson, Budget Manager
Victoria L. Bentley, Director of Finance, City of Seal Beach
Attachment i
ORANGE COUNTY FIRE AUTHORITY
FINAL CASH CONTRACT BASE SERVICE CHARGE CALCULATION
FY 2017/18
PERCENTAGE CHANGE APPLIED TO CASH CONTRACTS
(A) 2016/17 Budget for Salaries & Employee
Benefits and Services & Supplies
2017/18 Budget Increases/Decreases
from 2016/17
Salary
Retirement
Health, Workers Comp, and Other Insurance
Medicare
Services & Supplies
TOTAL
$319,224,794
$ CHANGE % CHANGE
14,489,617 4.54%
2,414,989 - 0.76%
1,695,203 0.53%
160,602 0.05%
1,284,504 0.40%
$20,044,915 6.28%
Cap on Increase per JPA Agreement 4.50%
Carry forward % 1.78%
(A) Based on the 2017118 Budget Adopted in May 2017
ORANGE COUNTY FIRM AUTHORITY
CASH C0N779ALT CHARGE PERCENTAGE CHANGE CALCM477ON
FQULCRARGS FOR FY M17/18
$180,011,955 1 0197223,788
Ia New StafOng for FMO (A)
Ia 1d Aoadamy Cw1e (B)
la b Pil
Ia llWD.., III (fl)
a lvaRB WIwI.d IDefaacPla,mer&
A. Revimv Cenwct CM(B)
amt 73,937.930
la New StaHb,g for FSF20 (A)
Im2od Acwk ny Cule(B)
Ia Hel'wopta Pibt(C)
Lem OVM90 Wild" Deface Pleads& Plan Review Cotmart Cat( B)
Redremd¢ n.m7a3B
h/Worlana Camp lneuraam
38,243,511
Iem New SimiMe fm FS820 (A)
Ia New Startle& fa FSM20 (A)
Ia 2d AeudemYC (R)
(7,159
la Helleopur Pilot(C)
d Defmm Planner & Rmiav ConlnctCwt(
la tth,
frac Baliwpwmt(C)
Hmlth, Workers Come. and Oflmrinsamnce
Wo kere C ma
38,M1ji1
mreua ONer HeoeRla
1,50,390
2,710,948
Ia New Startle& fa FSM20 (A)
(7,159
I Iid Acwdm,y Cab(B)
(7 08
I
frac Baliwpwmt(C)
(2,104
la Ova ill Wild" DeRwm Pimmc& Plan Review Connect Cat( &)
f3gs
Medicare & 014"BortgW,
2,543,390
2,703293
ALS&RB
b IWJ117
"a..m
28,155,421
Ona-71me Ilam Excluded (P)
Sirucmrel Ffm Fmd Ovnn ((l)
is CCC Facillies Wimmaroe Budget (H)
Lem 2d Awdwny Caa(B) .
I Ov'sBR WlldieM DePeme Plenna & Plan Review Coness, Cwt( E)
Nt.eMI011t 1-A
CapoulmremopmlPAAsreement 4,59%
arty ferwara % 1.711%
A) Increase for the addition ofnew Sudden 20 (Irvine) is a Structural Fire Fund cont
B) Bxclada(bets aawciated with 2nd FF Academy ere ono- it.. cost, and net mNcilded In mli me at this pato eller VY 2017/18.
C) Indesnes to Air Ops program ere aveludd.
D) Service Delivery linhancanmts Phase Bl ere not funded by cash centrad oitim, and therefore exchded.
E) learmsm due 0 fio-fudd progame such as Planning and Development are, moludd
F) Ono-dme itade me,axcludd from this calculation
G) SWenval Fire Fad costa include: Property Tax Administration Charges, County Island Crust n, Annual Properly Ten ProJwtion Study,
TRAN iesuanw cunt and intareat expemq and interest mpame fat interned borrowing,
H) Bxcluda onnh contract city facilities maintenance budget
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a ORANGE COUNTY FIRE AUTHORITY
_ PC) BON 571111ninq. CA 92619-7115 1 rim Authoriw Rvat. Irvinie.CA92602
Jeff Bowman, Fire Chief (714)$73-6000 snvw.acfa.org
June 21, 2017
Ellery, Damon, OCFA Director
City of Scal Beach
211 80 Street
Seal Beach, CA 90740
RE: Letferfrom Mission It Iefo resident Stephan Al. Wmnrobski, dated June 12, 2017
Dear Director Denton:
1 am in receipt of the recent letter sent to Seal Beach City Council Members by Mr. Wontrobski, a resident in the
City of Mission Viejo. The key issues raised in this letter are highlighted below, along with OCFA responses.
Issue 91: •'1 have been told that the OCFA hos stated the reason Seal Beach & eha,wed sn much is doe it,
the high peremnage of seniors living M .Seel Beach. "
Reanomy; Thisstnrcntent is incorrect. OCFA's mnhael darnge to the circ of Seal Reach is calculated based
an ilia teens of file Joint Pintars Agreement (JPA) and nat based nn the Percentage of seniors
living in the ci0.
OCPA's member agencies pay for fire services through two different pay structures. A general knowledge of the two
vnictures is helpfitl to understanding OCFA funding, Sixteen of OCFA's 24 member agencies pay for fire services
through a Structural Fire Fund (SFF) and 8 members pay through cash contracts. The city of Seal Beach is a cash
contract member.
The SFF is maintained by the County of Orange and was in place prior to Proposition 13. A fire tax (included in the
I % property in levy) is collected by the County from properly owners in thesejurisdictions, accumulated in the SFF,
and transmitted to OCFA for fire services, pursuant to the JPA. California property tax assessments and allocations
are set by statutes, and the OCFA has no comms over the amounts it receives from the SFF.
Cash contract cities were not originally part of the SFF prim to Proposition 13; therefore, these jurisdictions don't
have a fire tax as a portion of their 1% property tax levy Bowing to OCFA. Instead, these cities pay for fire services
from their General Funds by contract with OCFA. OCFA's cash contract charges are based on the original methods
in place at the time the city became a member of Orange County Fire, with annual growth based on OCFA's budget,
and a cap governing the maximum amount the contract charge can increase each year.
The County Fire Department began serving the city of Seal Beach in 1982, well before the formation or the OCFA
In 1995. Original charges were established by the County in 1982, and since OCFA formation, charges have
continued to build on the original base, plus amount growth tied to OCFA-s budget, with a not -to -exceed annual cap
on increases. This nathod is dictated by the OCFA's IPA and is not based on the percentage of seniors living in
Said Beach. Also, as a result of the cap an increases, OCFA's toms have grown faster than its contract charges and
therefore, Seal Beach's charge is lower then OCFA would charge a new city joining today with the same number of
frontline personnel.
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Ina Abrams. • Mlnian Vinic- Mitmia • xancha Sara Map rai,s n Clemente • An lura CaPswnn • Santa AM • Sal Bmit • Sham • Twin • vllh No
wetnmmta • Ymla LUWa -ant UrcncomoraN MosafOmnge Count}
RESIDENTIAL SPRINKLERS AND SMOKE ALARMS SAVE LIVES
BBery Deacon, OCFA OIrector
RE: Lear, to Seal Beach Council members doled lune 11, 1017
1~ 21,2017, Page 2
As an example, below is a comparison of Seal Beach's 2016117 contract charge vs. the Truck & Engine Company
Costs (T&E) that would be charged to a new city joining OCFA, The T&E methodology alloatea OCFA budgetary
costs based on the number of personnel being proposed to serve in a city, and is all-inclusive of everything required
to provide Bre and emergency services (Fire Chief, Division CMM Battalion Chiefs, Emergency Medial Services
staff, training staff, dispatch, specialty resources, administrative services, de.).
Sul Beach— Stations 44 and 48
(8 daily staff x 3 shifts a 24 frontline employees)
16117 Acral
Contract Charge
16/17 T&E Certs
for New City
Actual Seal Both Cub Contract Charge
4,795,278
New City Truck At engine Company Ceara
6,779,738
Meteors,
$1,984,460
Funhennom as you are aware, OCFA is a regional fire service agency. The citizens and businesses within Seal Beach
are also served by Bre stations in surrounding cities which are also served by the OCFA. Upon receipt of a 911 all,
the OCFA dispatches the closest available unit, which may nes be a unit located in Sal Bach's fire stations.
Issue N2: "Why is Lagoon Woods wllh a 100% senior population paying less than Seal Beach on a per
resident basis for OCFA services? And why Is Seal Beach paying more than double on u per
resident bads thmr Tuula, with Is also a contract city? And why is Seal Beach the highest charged
OCFA contract city on a per resident basis?"
Response: OCFA's nmmbers pay for Jere services through ton dljferent pay structures. Laguna Woods is a
SFF member funded by proper0y tares, whereas Seat Beach and Tustin are cash contract
members, vid, charges based an the JPA and not based or, "permsldenl"calcutanmrs.
Like Seal Beach, the city of Tustin was served by the County Fire Department well before the formation of the OCFA.
Original charges were established by the County in 1980, and since OCFA formation, charges to Tustin have
continued to build on the original base, plus normal growth tied to OCFA's budget, not -to -exceed the annual cep on
imsesses. OCFA staff cannot change the method for charging cash contract cities without a change to the JPA. In
addition, the cash contract charge methodology dictated by the JPA cannot be changed during the term of the JPA
(which runs until June 30, 2030). These ane the contractual protections that were built into the JPA to assure cash
contract cities' charges would not be increased differently from the methods and caps that they agreed to uponjoining
the JPA.
1 hope this infomtation is helpful in clarifying the issues raised in the above referenced later. Please contact me at
(714) 573-6020 if you have any further questions.
Sincmaly,
Ya. s_ V
Lori Zeller,
Assistant ChicUBusiness Services
Anachzn t
m: Jill Ingram, Seal Beach City Manager
Ken Crux, Division Chief