REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
August 20, 2024
FROM
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Amendment to Revenue Agreement with Fontana Fire Protection District for Fire Protection and Emergency Medical Services
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Fire Protection District, approve Amendment No. 9, retroactively effective July 1, 2024, to Revenue Agreement No. 18-354 with the Fontana Fire Protection District, decreasing the annual amount by $403,371, from $42,903,405 to $42,500,034 for 2024-25, to compensate the San Bernardino County Fire Protection District for its costs of providing fire protection and emergency medical services to the Fontana Fire Protection District, with no change to the contract term of July 1, 2018, through June 30, 2038.
(Presenter: Dan Munsey, Fire Chief/Fire Warden, 387-5779)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this amendment will not result in the use of Discretionary General Funding (Net County Cost) as this is a revenue contract. The Fontana Fire Protection District (District) is compensating San Bernardino County Fire Protection District (SBCFPD) for the cost of providing service in accordance with the terms of Agreement No. 18-354 (Agreement). This amendment will decrease the annual compensation to SBCFPD by $403,371, for a total revenue amount of $42,500,034 for 2024-25. Revenue and appropriation for this Agreement are included in SBCFPD’s 2024-25 budget and will be included in future recommended budgets as appropriate.
BACKGROUND INFORMATION
On June 26, 2018 (Item No. 80), the Board of Directors (Board) approved the Agreement, allowing SBCFPD to provide fire protection and emergency medical services to the District. The term of the Agreement is for 20 years, beginning July 1, 2018, and ending on June 30, 2038. The compensation amount for providing services is adjusted annually in accordance with Section 3.B. of the Agreement. Adjustments are based on various factors, including but not limited to increased salary and benefit expenses resulting from negotiated Memoranda of Understanding with the labor unions. SBCFPD has been providing services to the District since 2008.
To date, the Agreement has been amended eight times. The Board approved Amendment No. 8 on October 3, 2023 (Item No. 59), which increased SBCFPD’s compensation amount by $2,930,255, from $39,973,150 to $42,903,405 for 2023-24.
Approval of Amendment No. 9 will decrease the Agreement’s annual amount by $403,371, from $42,903,405 to $42,500,034. The net decrease in the annual amount is primarily due to a decrease in salaries and benefits costs as a result of the County’s pension obligation bonds being paid off in 2023-24. There is no change to the term through June 30, 2038.
Amendment No. 9 is retroactive to July 1, 2023, due to a delay in contract costing and negotiation. The District approved the amended Agreement on July 23, 2024. All other terms of the Agreement shall remain the same. This item is being presented at the next available meeting following operational, fiscal, and legal reviews.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Rick Luczak, Deputy County Counsel, 387-5455) on July 29, 2024; Finance (Ivan Ramirez, Administrative Analyst, 387-4020) on July 30, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on August 5, 2024.