2020-01-21 CC Agenda Packet - ITEM #16 - PRESENTATION - Successor Agreementri
Successor Agreement
for Emergency Police
& Fire Dispatch
Services
CITY OF EL SEGUNDO
Alow
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Hired Outside Consultant to Review Costs
• Comprehensive Cost of Service &Allocation Study
• Contracts Differ
• Request
from
City of
Redondo Beach
• Member
City
Review
of Longstanding Methodology
• Methodology
• Meetings with staff, member cities, and contract cities
• Review of cost allocation methodologies from comparable agencies
• Data analysis
• Development of cost allocation model
• 31 recommendations
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New Cost Allocation Policy
Ties Costs as Closely as Possible to Services Provided
LM
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Phone Calls Dispatchers Surge Capacity Upfitting Administration
9-1-1 Calls
Non- Emergency Calls
Actual Dispatch To Handle Major Radios Overhead Charges
Services Incidents MDCs
Provided
Lightbars, Etc.
Impacts of New Cost Allocation Policy
Comparison of Old Methodology vs. New Policy
REGIOJAIq�A�
CATIDNS A �
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Background on Current Agreement with EI Segundo
• Executed in July 2010
• Term: October 2010 to September 2020
• Initial Annual Assessment: $1,150,000
is FY 2019-20 Assessment: $1,372,870
• Cost Allocation Policy
Model: $1,852,694
• Increase Under New
Policy: $ t-+197824
(35%)
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SignificantTerms of NewAgreement
• Incorporation of New Cost Allocation Policy w/ 4 Year Phasing
• Preservation of Legacy Pricing for Q1 of FY2020/21
• 10 Year Term, Beginning July 1, 2020
• Incorporation of Performance Standards
• Remedies for City if Standards Not Achieved
• Right for City to Terminate Fire Dispatching Services
• Change in Late Payment Penalty Structure
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4Year Phasing &Annual Caps
• FY 2019-20 Assessment: $1,372,870
• Cost Allocation Policy Model: $1,852,694
• Increase Under New Policy: $ 479,824
• Annual Caps
• Fiscal
Year
2020-2021:
$1,493,738
• Fiscal
Year
2021-2022:
$1,699,634
• Fiscal
Year
2022-2023:
$1,869,811
• Fiscal
Year
2023-2024:
$2,044,684
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Fiscal Impact
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CATIDNS A �
Summary
• Costs to City Increase an Average of 9.7% per Year in Years 1-4
• Subject to Full Cost Allocation Policy in Years 5-10
• Deficits in Cost Allocation for Member Cities Total $828,561:
• Year 1 - $410,090
• Year 2 - $256,740
• Year 3 - $140,559
• Year 4-$ 21,172
• Deficit Mitigation:
• Premiums Charged to Member Cities; or
• Appropriation of Available Reserves
REGION, 10
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Questions?
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