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February 14, 2023
ITEM TITLE
Ambulance Transport System: Adopt a City Council Policy, “Ambulance Transport System Enterprise Fund Reserve Policy”
Report Number: 23-0012
Location: No specific geographical location
Department: Fire
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution adopting a City Council policy for the establishment of a reserve policy for the Ambulance Transport System (“ATS”) Enterprise Fund.
SUMMARY
On April 9, 2021, the Chula Vista Fire Department took over ambulance services for the City of Chula Vista, City of Imperial Beach and the Bonita/Sunnyside Fire Protection District. Fund 410 was created as an Enterprise Fund for the budgetary management of the new program. The Fire Department has drafted a policy to establish reserves to ensure the fiscal health of the fund to meet known and unknown future obligations for the Ambulance Transport System.
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 it will not result in a physical change in 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 required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
On May 12 , 2020, the City Council approved Resolution No. 2020-102 directing the Fire Department to provide exclusive Emergency Medical Ambulance Transport Services (ATS) within the City of Chula Vista, the City of Imperial Beach and the Bonita Sunnyside Fire Protec tion district. The resolution adopted a base rate of $2,800 per transport. On March 23, 2021, City Council adopted Resolution No. 2021-052 approving ancillary fees of $104.70 for oxygen, $76.60 for a night charge and $41.73 per mile for ambulance transports.
An annual operating budget for Fund 410 was created using adopted base and ancillary fees and multiplying those by the anticipated number of transports within each payor group, where charges for services are spent exclusively on operations and support to provide the ambulance service.
Consistent with best practices, a reserve policy has be en established for the ATS Enterprise Fund. The purpose of the reserve is to avoid impact s to the General Fund due to transport revenue shortfalls and to establish reserves necessary to meet known and unknown future needs for the ambulance transport system.
The policy addresses four main reserve categories of Debt Obligation Reserves, Liability Insurance Reserves, Operating Reserves, and Capital Replacement Reserves.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact to the General Fund or the ATS Enterprise Fund as a result of adopting the proposed reserve policy. If approved, funding the reserves will be considered at fiscal year-end, given remaining revenues in excess of annual expenditures.
ONGOING FISCAL IMPACT
Adopting an ATS Enterprise Fund Reserve Policy supports the long -term fiscal sustainability of the ATS Enterprise Fund. If approved, reserves will be funded in the future using residual ATS revenues.
ATTACHMENTS
Attachment 1 – ATS Enterprise Fund Reserve Policy
Staff Contact: Harry Muns, Raymond Smith, Emily Folker