Agenda Report
Fullerton City Council
MEETING DATE: MARCH 15, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
FROM: JEFFREY W. COLLIER, ACTING CITY MANAGER
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH MANAGEMENT PARTNERS, INC. TO EVALUATE OCFA PROPOSAL
SUMMARY
Professional Services Agreement with Management Partners, Inc. for analysis and cost comparison of Orange County Fire Authority proposal.
RECOMMENDATION
Approve Professional Services Agreement with Management Partners, Inc. and authorize City Manager, or designee, to execute and administer the agreement, in a form approved by City Attorney.
Appropriate $74,900 from the General Fund to cover cost of consulting services.
BUDGET POLICY PRIORITY STATEMENT
This item matches the following Budget Policy Priority Statements:
Public Safety
Fiscal and Organizational Stability.
FISCAL IMPACT
Approval of the Professional Services Agreement (PSA) and appropriation request will increase the General Fund budget by $74,900. The total appropriation request includes all fees and expenses.
DISCUSSION
City Council authorized the City Manager on March 2, 2020 to request a Fire Services Proposal from the Orange County Fire Authority to allow the City to compare the cost of providing emergency fire and paramedic services. The proposal from OCFA offers emergency services including all-hazard emergency response, fire prevention, public education and fire dispatch services by contract.
OCFA presented the proposal to City Council on January 18, 2022. The excerpt of the OCFA proposal shown below summarizes the estimated costs and savings associated with a move to OCFA.
OCFA Proposal Cost Budget Comparison with Annual Increases 2021/22
2022/23
2023/24
2024/25
OCFA Service Charge
$21,509,990
$22,477,939
$23,489,447
$24,546,472
OCFA % Increase (Maximum)
4.50%
4.50%
4.50%
Fullerton FD Budget (Note 3)
$27,307,520
$29,183,547
$31,188,456
$33,331,103
% Increase
8.26% (Note 3)
6.87% (Note 4)
6.87% (Note 4)
6.87% (Note 4)
Annual Savings
$5,797,530
$6,705,607
$7,699,010
$8,784,632
Cumulative Savings (Notes 1 & 2)
$5,797,530
$12,503,137
$20,202,147
$28,986,779
Note 1: Excludes one‐time start‐up costs and the City’s annual Unfunded Actuarial Accrued Liability (UAAL) payment to the Public Employees’ Retirement System (PERS). Costs quoted are valid for the current fiscal year ending in June 2022.
Note 2: This table does not factor in other savings that the City should realize associated with Workers’ Compensation and other departmental efficiencies.
Note 3: FY 2020/21 Fire Budget (source: City of Fullerton FY 20-21 Budget) Note 4: Percent increase calculated using 7-year average increase in annual Fullerton Fire Department budget from FY 2015/16 to FY 2021/22.
Following the OCFA presentation, City Council directed staff to conduct an analysis comparing the cost of emergency fire and paramedic services currently provided by the Fullerton Fire Department, as well as at a structure and service level recommended by the City’s Fire Chief, against the OCFA proposal. Staff proposes retaining a qualified consultant to perform this work due to the complexities of such an analysis and current staffing limitations. The consultant analysis and report will support the City’s efforts to objectively evaluate the cost and benefits of the OCFA proposal.
Staff reached out to four qualified consulting firms to determine each firm’s ability and estimated cost to provide the scope of service requested by the City. Only one firm indicated its ability to provide the analysis and services within the City’s requested time frame.
A number of factors generate an urgency to select a qualified firm and move forward with the analysis and cost comparison, including, most significantly, the tight labor market which has increased recruitment challenges. These recruitment and retention challenges for the Fire Department necessitated expediting the selection of a qualified consulting firm. In addition, the City of Brea continues discussions regarding termination of the “shared command” structure between the cities of Brea and Fullerton. Termination of the “shared command” structure would have significant cost and operational impacts to take into consideration when analyzing the long-term provision of fire services for the City of Fullerton.
Management Partners, Inc. will provide an independent, third-party examination of the Orange County Fire Authority’s proposal to provide fire services to the City of Fullerton.
Attachments:
Attachment 1 – Professional Services Agreement with Management Partners, Inc.
PSA with Management Partners, Inc.
March 15, 2022 - Page 2