TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Mario Rueda, Fire Chief
DATE: September 10, 2025
SUBJECT: APPROVAL OF BUDGET APPROPRIATION IN THE AMOUNT OF $144,228.23 AND AUTHORIZATION OF PAYMENT IN
THE AMOUNT OF $256,100.70 TO THE CITY OF SOUTH
PASADENA FOR PAYMENT OF LATE INVOICES FOR
SHARED COMMAND SERVICES
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Safe Community
Fiscally Responsible and Transparent City Government
BACKGROUND
In 2017, the Cities of South Pasadena and San Marino agreed to a Fire Management Shared Services Agreement (Agreement) that provided an innovative and economical solution to providing administrative and command supervision for the two (2) adjacent Cities with nearly identical fire department organization and make-up. The objective of the new Agreement was to provide a cost-effective solution to fulfill 24-hour a day, 365 days a year, administrative and emergency supervision of the on-duty fire department personnel, along with Emergency Management duties of both Cities by one (1) of the three (3) on-duty Division Chiefs. The transition to this shared staffing model was achieved with very few significant obstacles. The Agreement continues to meet the objectives of 24-hour Chief Officer supervision, excellent service to residents of both Cities, and providing reduced costs.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
DISCUSSION
The City of South Pasadena hired a new Fire Chief in September 2024. The Fire Chief, along with a new contract Finance Director, conducted an audit of Shared Command costs and payments for previous fiscal years. The audit by City of South Pasadena staff indicated that previous years of Shared Command payments had not been invoiced to the City of San Marino and asked to meet with San Marino staff to resolve the issue. During the months of March and April of 2025, San Marino’s Finance and Fire Departments resurrected documents and conducted an audit of Shared Command records from fiscal years 2022-23 and 2023-24. Ultimately, the City of South Pasadena reversed their previous position that no fees for Shared Command services were owed, and submitted late invoices for fiscal years 2022-23 and 2023-24 totaling $256,100.70. This recent invoice has been audited by San Marino Finance and Fire Departments and is accurate and is owed to South Pasadena.
Key Timeline and Correspondence
Payment for Shared Command Services for Fiscal Year 2022-23 July 2023: The San Marino Fire Department requested FY 2022-23 invoices.
South Pasadena stated no payment was due and offered a refund for overcharges paid during Fiscal Year 2021-22.
On July 27, 2023, the City of San Marino contacted the City of South Pasadena as a reminder, requesting invoices for shared command for fiscal year 2022-
23. San Marino’s Finance Department customarily closes out the previous fiscal year’s invoices during the month of August, and at that time had not received any invoices for the entirety of the current fiscal year. The City of South Pasadena was informed that San Marino’s due date for all invoices was August 7, 2023. Later that same date, San Marino received a reply from the City of South Pasadena’s Finance Department stating, “Chief Szenczi did not have any shared fire command for FY 2022-23.” Furthermore, the email stated, “regarding the errors that were identified, we did a deep analysis on the January 2022- June 2022 Shared Fire Command that Chief Szenczi did.
We identified overcharges that were made and will issue a refund back to San Marino. The total amount for the overcharge is $11,934.07.” San Marino requested a meeting with the South Pasadena Finance Department to clarify the provisions and understanding of the Shared Agreement in an email as follows.
“The salary of the shared Division Chief is meant to be split 50-50 between the two Cities (with some exclusions, see Section F.5 of the attached agreement). I think it may be best if we meet sometime in the next week to discuss. Please let me know what dates you have available and I will confirm.” San Marino did not receive a reply to the email. I followed up personally with the then South Pasadena Fire Chief, and he confirmed their Finance Department had completed an audit and determined there was nothing owed for Shared Command for FY 2022-23. This information was shared with San Marino’s Finance team, and no further action was taken by the City of South Pasadena. The San Marino Finance team then proactively recorded an estimated expenditure for Fiscal Year 2022-23 of $111,872.47 based on hours worked that we were aware of as we would likely be invoiced when South Pasadena recognized their error.
Payment for Shared Command Services for Fiscal Year 2023-24 July 2024: San Marino requested FY 2023-24 invoices; staff was once again told no payment was owed.
On July 29, 2024, the City of San Marino again requested an invoice from the City of South Pasadena for Shared Command services prior to the close of the fiscal year. South Pasadena staff did not respond to the request. I followed up personally with the Fire Chief who informed me that South Pasadena’s Finance Department concluded there was no payment due from San Marino. I explained that I was at a loss, and that San Marino’s records indicate an estimated payment due of $130,000. The then South Pasadena Fire Chief explained that their records of Shared Command did not indicate any monies owed. I shared this information with the San Marino Finance team.
Conclusion
San Marino made repeated, documented efforts to obtain timely invoices and clarification from South Pasadena, within normal fiscal timelines, in alignment with standard fiscal procedures and closure deadlines. Given the previous confirmations from South Pasadena that no monies were due, the late reversal is disappointing. South Pasadena has committed to timely invoicing of Shared Command services in the future.
FISCAL IMPACT & PROCUREMENT REVIEW
On April 2, 2025, the City of San Marino received an invoice in the amount of $256,100.70 for Fire Command Staff Services. In Fiscal Year 2022-23, the San Marino Finance Department recorded an estimated expenditure of $111,872.47. The San Marino Fire Department is requesting a FY 2024-25 budget appropriation in the amount of $144,228.23 to Account #103-34- 4110-0000 (Shared Fire Command Contract Services) for past Fire Command Shared Services for Fiscal Years 2022-23 and 2023-24.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve a FY 2024-25 budget appropriation in the amount of $144,228.23 to Account #103-34-4110-0000 (Shared Fire Command Contract Services) and authorize the Finance Department to issue payment in the amount of $256,100.70 to the City of South Pasadena for Fire Command Shared Services for Fiscal Years 2022-23 and 2023-24. If the City Council concurs with Staff’s recommendation, an appropriate motion would be:
“I move to approve a budget appropriation in the amount of $144,228.23 to Account #103-34-4110-0000 (Shared Fire Command Contract Services) and authorize the payment in the amount of $256,100.70 to the City of South Pasadena for Fire Command Shared Services for Fiscal Years 2022-23 and 2023-24.”
ATTACHMENTS
1. South Pasadena Fire Command Staff Services Invoice #2025-2224 for July 1, 2022, to June 30, 2023, and July 1, 2023, to June 30, 2024
2. Cooperative Agreement between the Cities of South Pasadena and San Marino for Sharing of Fire Department Command Staff (Division Chief)
3. Email with South Pasadena Finance Department for FY 2022-23 Invoice