Item #04
Date: January 18, 2022
To: Mayor and City Council
From: Ron Karlen, Fire Chief
Jim Schaad, City Manager
Subject: Contract Agreement Between the City of Marysville and D-10/Hallwood Community Services District
Recommendation:
Pass a Motion to 1) approve Resolution 2022-XX and 2) authorize the City Manager, to enter into a contract agreement between the City of Marysville and the D-10/Hallwood Community Services District for emergency services to be provided.
Rationale for Recommendation:
The City of Marysville recently had the need to breach the current contract after a recent cost analysis was conducted where fees for service were below operational cost supported by the Marysville Fire Department.
Background:
The City of Marysville has provided contractual services to the D-10/Hallwood Community Services District for several years and have enjoyed a good relationship during this time. Both parties have met in good faith and have agreed to a negotiated contract through a comprehensive analysis of cost share through a formula evaluating Fire Department budget and D-10/Hallwood calls for service percentages.
An appointed ADHOC committee met to discuss the terms from the City perspective and all parties have agreed to the proposed contract.
Fiscal Analysis:
The past contract established an annual payment of $115,000 per year. The new contract increases the first year to $170,000 of which $40,000 will be placed into the equipment replacement account to cover apparatus and equipment replacement costs. An increased based on the Bay Area CPI will be added the second year and a new cost analysis completed on the third year to evaluate more accurately the cost share based on the Fire Department budget and calls for service formula.
Alignment with City Council Goal(s):
This Agenda Item helps support Goal #4: Enhance Public Safety. Additional revenue will assist in covering costs associated with the Fire Department operation and equipment replacement sustainability for the future.
Attachments:
1) Agreement Between the City of Marysville and District 10/Hallwood Community Services District 2) Resolution 2022-XX