CITY OF CARMEL-BY-THE-SEA

Council Report
December 2, 2014
To:

Honorable Mayor and Members of the City Council

Doug Schmitz, City Administrator

Submitted by:

Gaudenz Panholzer, Fire Chief

Subject:
Report on Fiscal Year 2013-2014 Fire Services True-Up
______________________________________________________________________________
Recommendation(s): Accept report on Fiscal Year 2013-2014 Fire Services True-Up.
Executive Summary: Per the contract for fire services Carmel-By-The-Sea has with the City of
Monterey, a true-up has been prepared for fiscal year 2013-2014. As a
result of that true-up and a correction to the charge for fire inspector
services, Monterey owes Carmel a total of $16,409.
Analysis/Discussion: In accordance with Section 6.2 of the Agreement to Provide Fire Services
Between the Cities of Monterey and Carmel-by-the-Sea, Monterey Fire has
completed the annual true-up for fiscal year 2013-2014. A detailed
accounting of actual costs incurred by Monterey to provide fire services to
Carmel-by-the-Sea for that time period has been provided to City
Administrator Doug Schmitz. The true-up shows that Monterey's actual
costs for FY14 were $16,409 less than the fiscal year budget projection.
The chart below provides a summary of the changes from the FY14 budget
projection to the actual costs.

Command & Support Staff

Fire Suppression Staff
Overtime
Other Personnel Costs
Operating Expenses
Admin Charge
PERS Credit
GRAND TOTAL
FY14 Adjustment
ADJUSTED GRAND TOTAL

City Council Meeting of 12/2/2014

Page 161

FY 14
Projection
$191,494
$1,317,553
$152,740
$192,041
$44,091
$36,820
$(57,800)
$1,876,938
$(17,450)
$1,859,488

FY 14
True-Up
$213,387
$1,305,629
$144,883
$144,142
$56,663
$36,175
$(57,800)
$1,843,080
$
$1,843,080

Difference
$21,893
$(11,924)
$(7,857)
$(47,899)
$12,572
$(644)
$(33,858)
$
$(16,409)

Agenda Item: 8.A

Page 1

Report on November 3, 2014, Fire on Monte Verde Street

December 2, 2014
Page 2
Highlights of the reasons for the difference are as follows:

The most significant difference is in reductions to Other Personnel

Costs. These include lower than projected workers compensation
rates, FLSA Pay, Holiday Pay and annual/separation leave balance
payoffs.
Command and Support Staff costs increased primarily due to an
adjustment in calculating the cost of a part-time Fire Inspector. The
adjustment more accurately reflects the actual cost of fire
inspection services provided to the City of Carmel-by-the-Sea and is
addressed in Montereys proposed Amendment #1 to our fire
services Agreement.
Salaries at the Carmel-by-the-Sea station were lower than projected
due to the annual rotation of personnel. Several personnel at lower
salary steps rotated to the Carmel station mid-fiscal year. This
annual rotation is conducted through a union bidding process that
could not be forecast when FY14 fire service fees were projected.
Overtime costs were significantly reduced as our cities shared six
SAFER Grant funded Relief Firefighters to backfill vacancies
throughout the fiscal year instead of incurring overtime by the
former constant staffing model. Such benefits of the SAFER Grant
are expected to continue through FY15, after which the current
grant expires.

In accordance with Section 6.2 (a) of the Agreement, the above amount,
plus interest, will be paid by Monterey within ninety calendar days of
Carmels receipt of the true-up. The interest will be calculated from July 1,
2014, until the date of payment to Carmel-by-the-Sea, at the annualized
FY14 Service Year Factor interest rate of 0.87% (or 0.0725% per month).
Monterey Fire continues to work on controlling the costs associated with
providing fire services both to Monterey and to partner cities. Continued
collaboration will occur to refine the provisions of the contract and the
costing methodology.

2
City Council Meeting of 12/2/2014
Page 162

Agenda Item: 8.A

Page 2

Report on November 3~ 2014~ Fire on Monte Verde Street

December 2~ 2014
Page3

Fiscal Impact:

Provides unanticipated revenue of $16A09 to the General Fund

Budgeted (yes/no)
No

Funding Source( general fund, grant, state)

General Fund- Public Safety

Previous Council
Action/Decision History:

N/A

APPROVED:
Date: ~~ /I)IJt/.

IY
j

City Council Meeting of 12/2/2014

Page 163

Agenda Item: 8.A

Page 3