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HomeMy WebLinkAbout2010-11-17 e-packetSPECIAL MEE~C'ING ~`' ~"~~ ~~~ CITY COUNCIL ~~ `~'` *~' ~t'; OF THE '~~'~ CITY OF SOUTH SAN FRANCISCO ~.~` i P.O. Box 711 (City Hall, 400 Gra~xd Avenue) a~' ~`?~'~ South San Francisco, California 94083 Meeting to be held at: CI"I'Y HALL LARGE CONFERENCE. ROOM 400 GRAND AVENUE SC)11'I'I-I SAN F1ANCISCO, CA WEDNESDAY, NOVEMBER 17, 2010 NOTICE IS HEREBY GIVEN, pursuant to Section 54.956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special. Meeting on Wednesday, the 17"' day of November, 2010, at 6:30 p.m., at City Hall, in the Large Conference Room, 400 Grand Ave, South San Francisco, California. Purpose of the meeting: 1. Call to Clyder. 6. 2. Ra11 Call. 3. Agenda Review. 4. Public Comments - cc~nmsertts are lirnited to items an the Special Meeting Agenda. 5. Followup items from October Study Session regarding Library and Fire I}epariments' Core Services. Conference with Legal Council -Existing Litigation Pursuant to Government Code Section 54956.9 (a) Baykeeper v. City of South San Francisco. ~°~~x' S~~•~ 0 ~, J O c'~LIFOR~l~ taff e ort DATE: November 17, 2010 TO: Honorable Mayor and City Council FROM: Jim Steele, Finance Director SUBJECT: FOLLOWUP ITEMS FROM OCTOBER S'TLJDY SESSION REGARDING FIRE AND LIBRARY DEPARTMENTS' CORE SERVICES RECOMMENDATION It is recommended that the City Council review the attached materials on two program areas for the upcoming study session. The Council had requested. additional information about these two areas as part of the five year budget realignment plan. BACKGROUND/DISCUSSION At an October 20, ZO10 study session, staff presented the Council with information that showed a structural deficit of $6.3 million annually within 5 years, and suggested some policy questions that could be helpful in prioritizing ongoing City core services. Tlzat staff report is attached. At the October 20 study session, Council asked staff to bring back more information on two program areas: the Literacy Programs offered by the Library,, and the Basic Life Support (BLS) program offered by the Fire Department. Summary information is provided below, with program descriptions attached from the Library Director and Fire Chief. Literacy Programs: Project Read 2010-11 Staffing FIE: (Regular/Permanent Staff) 3.00 Hourly staff funded from Outside Revenue 1.12 Total FIE: 4.12 2010-11 Total Budget $ 599,024 Less Annual Outside Revenues to Offset General Fund Adopted Budget*: ($117,000) Less Midyear Grant and Donation Revenues, which offset Midyear Budget Amendment Expenditures ($211,596) = Net Cost to General Fund, Project Read: $270,428 Staff Report Study Session Follow-up on Library and Fire Department Core Services Date: November 17, 2010 Page 2 of 3 Community Learning Center (CLC) 2010-11 Staffing FTE: Regular, General Fund Supported 1.9 Hourly, General Fund Supported .43 Regular, Downtown Redevelopment Agency Supported .6 Regular, Grant and Donation Supported 1.5 Hourly, Grant and Donation Supported 3.58 Total FTE: 8.01 FTE 2010-11 Total Budget $706,410 Less Grant & Donation Revenue and Redevelopment Agency support ($389,142) =Net Cost to General Fund, CLC: 317 268 Total General Fund Net Cost for Pro'ect Read and CL(:: $587,696 Basic Life Support (BLS): Below is a summary of the last 6 years of BLS' financial performance: BLS Program History 04-OS OS-06 06-07 07-08 08-09 (3) 09-10 Daily Hours in Operation 12 12 12 24 12 Expenses 109,387 263,303 312,464 371,149 570,258 425,087 Less Direct BLS Revenue Less Revenue from Additional ALS Calls (1): Less Health and Safety Training Revenue from BLS staff (2) General Fund: 109,387 (114,385) 103.740 1. There are times when having the BLS unit available allows an ALS unit to transport an ALS patient. These revenues are not broken out in the General Ledger separately, and are estimated by the Fire Department. 2. BLS staff generate some training revenue. Those costs are not broken out separately in the General Ledger and are estimated by the Fire Department. 3. In 08-09 AMR decreased the number of inter-facility BLS transport referrals it had previously been providing to SSF Fire as part of its business plan changing. (377,688) (52,3,:?26) (509,224) (311,965) (201,947) - Unknwn Unk.nv~/n Unknwn Unknwn (84,400) Unknwn Unk:nv/n Unknwn Unknwn (35,000) Staff Report Study Session Follow-up on Library and Fire Department C'or•e Services Date: November 17, 2010 Page 3 of 3 FISCAL IMPACT The General Fund provides funding of $691,436 annually to the: Literacy and BLS programs over and above their fee and grant revenue. CONCLUSION Feedback from the City Council on the priorities of these two programs within the City's core services is requested. B y: `__' Jim eele Finance Director Approved: ~~y M. Nagel Crty Manager Attachments: October 20, 2010 Staff Report Memos from Library Director and Fire Chief on Literacy and BLS Programs 5°~~x' S-~'~~ o r, y, "' y J . ~..~ O Staff Report DATE: October 20, 2010 TO: Honorable Mayor and City Council FROM: Barry M. Nagel, City Manager SUBJECT: GENERAL FUND BUDGET REALIGNMENT AND NEXT STEPS FOR EVALUATING THE CITY'S CORE SERVICES RECOMMENDATION It is recommended that Council review and provide feedback regarding the information below. BACKGROUND/DISCUSSION: Structural Def cit As Council may recall, during 2009, staff projected along-term budget gap or structural deficit of between $5-6.0 million, comprised of the following factors. (Numbers have been updated to reflect higher PERS costs now estimated): Increased PERS costs by 2014-IS to compensate for market declines $3,100,000 and statewide em to ee lon evity trends _ Underfunding of capital improvements (investment in city roads, parks, $],700,000 buildings, and facilities Unsustainable cuts made over the past 5 years to building, parks, and $],800,000 street maintenance budgets, plus underfunding of new facilities' maintenance2 3 (est.) _ Storm Water Regulatory Requirements, net of $350,000 added to 2010- $ 600,000 l 1 budget: _ Less Employee Benefits restructured during 2009-10 bargaining ($ 900,000) process: _ Subtotal, estimate of Structural Deficit: _ $6,300,000 ~ Does not include any provision for annual funding of post-retirement health care obligations (OPEB), estimated at $59 million. The City has set aside $6.8 million for this purpose from rE;serves and savings through June 30, 2010. On an actuarial basis, the City would need to set aside an additional $3.5-4.~0 million annually (est.) to pay down this liability over thirty years. The City has not adopted a funding plan to address this liability. ' Joseph Fernekes Recreation Building and Centennial Trail Maintenance. ' Net of half year funding for Deputy Fire Chief position, restored in 20l ~D-1 ] -1- Staff Report Subject: General Fund Five-Year Budget Realignment Project Page 2 of 3 Prior Discussions with the City Council and the Budget Subcommittee In order to begin putting together afive-year budget realignment plan totaling $6.3 million, Department Heads put together a listing of their core services. Core services are defined as a list of city services which are prioritized according to how critical they are to the community. Those core services were previously provided to the Council at the September l4, 20l 0 Study Session, and are attached as Attachment A. A $6.3 million structural deficit represents 10% of the General Fund meaning that solutions totaling 10% of the current General Fund budget need to be in place by 2014-] 5 to realign future revenues with expenditures. If Council decides it would be preferable to hold public safety services harmless from additional budget reductions, the non- safety departments would have to reduce more than 10% to came up with the full $6.3 million in needed reductions. Public Safety makes up 58% of the General Fund and if they were left harmless, the non-Public Safety departments would be required to come up with across-the- board reductions totaling approximately 25% of their programs. and services. However, across- the-board reductions are not recommended, as they do not address what the City's core services are, and do not approach reductions in a prioritized fashion. "ro illustrate across-the-board impacts on departments, core services have been divided at 10% and 25%. Ten percent assumes al] departments would be reduced equally (l0%). Twenty-five percent (25%) reductions are identified for all miscellaneous departments, assuming Public Safety is held harmless. Policy Decision, Feedback from Council In order to weigh how best to achieve $6.3 million in budget savings, and assuming a prioritization process would come into play instead of across-the-board cuts, staff believes the following policy questions are helpful to consider: l . What are the City's Core Services? What is it the City is in business to do? To help answer these questions, it may be useful to consider: a. What services or programs do other cities t}~pically provide? What services or programs are not as common to be offered other cities? b. What services or programs are typically provided by other levels of government (county, state)? c. What services or programs are more frequentl;~ considered to be the responsibility of citizens and businesses, rather than government? d. Where are there program areas where citizens hive other ways of obtaining these programs/services from alternate service providers? -2- Staff Report Subject: General Fund Five-Year Budget Realignment Project Page 3 of 3 2. What is an appropriate cost recovery level? a. Is it more important to provide less costly services and programs to residents, or to have more services? What about non-residenrts? b. Should cost recovery calculations for program (;valuation include administrative costs and facility costs (facility maintenance cosl:s, utility and water costs), or just direct program costs, as has been the City's practice? 3. Is it more important to continue to pay the traditior.~ally higher City wage and benefit levels at the cost of having to scale back additional sf:rvice levels? Alternatively, is it more important to continue providing or even restorf; services to the community if that can be achieved through contracting those services'? If contracting results in pay and benefit levels that are less than what the City pa:ys,, and the services provided are comparable to what the City staff provide, would outsourcing services be more cost- effective? 4. Is it more important to have aCity-provided, City-produced service, since we know our citizens/customers best, or, in some cases, would provision of that same service by another entity (through consolidation with neighboring cities, for example) be acceptable if the cost savings were significant and the services we;re~ comparable? CONCLU510N: Additional discussion and policy direction from the Council is needed in order to continue work on the five-year-budget realignment plan. Prepared b `~ .Nagel City Manager Attachments: A. Core Services by Department -3- CITY OF SOUTH SAN FRANCISCO INTEROFFICE MEMORANDUM DATE: November 17, ZO10 TO: City Council via the City Manager FROM: Valerie Sommer, Library Director SUBJECT: Library Core Services -overview of Project Read, Community Learning Center, Main Library Circulation Services The purpose of this IOM is to provide a summary of programrriatic activities and usage statistics, along with program expenditures and revenues in order to provide more detailed information to the Library Department's Core Services chart. 'The Library Department's two literacy programs, Project Read and the Community Learning Center, as well as Circulation Services at the Main Library, are the three Library Core Services to be discussed at the November 17, 2010 City Council Study Session. Project Read Established in 1985 as one of the first library literacy programs in California, Project Read is a free volunteer-based community literacy program serving adults, children and their families. • Adult Literacy Program: Open to English-speaking adults who read below the seventh grade level. Tutoring sessions for adult learners are focused on reading, writing and critical thinking skills and are supported by volunteer t~ztors who receive 15 hours of tutor training in addition to workshops to support learner skill improvement. • Family Literacy Services: open to parents with low l.itc;racy skills who have at least one child five years or younger. Workshops, tutoring sessions and special programs promote the goal of "raising a reader", getting an early start iri being able to support the homework and literacy needs of children who are getting ready to attend school and supporting parenting and life skills. • Learning Wheels Outreach Van: this is a "preschool on wheels" that provides story times and children's book distributions "out in the community", and identifies and refers parents to the Adult Literacy/Tutoring component of our program. • Special programs: financial coaching; healthy lifestyle skills building; computer use training. Project Read's model is successful for learners who have not succeeded in a standard classroom setting. Our tutoring program promotes anoutcomes-based model; learners identify short and long-term goals, such as "getting a driver's license," "readin.g to my children," promoting at work," "becoming a citizen," and one-on-one lessons with volunteer tutors are developed around these goals. Project Read services help literacy students and their families succeed at home, at work, at school, and in the community. -4- Project Read statistics: Current: • South San Francisco Learners = 109 • South San Francisco Tutors = 49 Past Five years: • 456 South San Francisco Learners have reached literacy goals • 276 South San Francisco Tutors have assisted these learners Many of these learners have families; the program he;lp~s to "break the cycle of illiteracy" in these homes and improves the lives of children and extended families of learners. Annual workshops and special programs: • 20, with total attendance of 300 - 350 (includes repeats, especially for program series) • Topics: financial management and coaching, healthy Hiving skills and information, book club, educational topics Project Read staffing: • General Fund: 3 full time staff members supporting basic adult literacy services, grant administration, program preparation and presentation, curriculum development • Grant funded (for illustrative purposes only; these are accepted as grant acceptances/budget amendments during the year and aa•e not part of the budget process): 1.12 (FTE) part-time staff members providing Learning; Wheels services and assistance with the Health Literacy and Financial Literacy projf;ct:s Project Read volunteers: • Current volunteers: 206 (includes tutors, office assistance, Trivia Challenge volunteers, special event and program volunteers) • Annual hours of service provided: 10,576 Project Read funding: Salaries $224,907 3 full time staff rne;mbers Benefits $127,112 3 full time staff members Supplies & Services $5,498 Office supplies, books, etc. Interde artmental charges $29,911 IT, insurance, equipment replacement General Fund Bud et $387,428 _ Midyear Grant & Donation Funded Expenditures $211,596 Learning Wheel:>, financial & Health Literacy approved by CC as. grant acceptances budget amendments _ Total Bud et $599,024 General fund and Chant Expenditures Grant & Donations Revenues $211,596 Learning Wheel ,, financial & Health Literacy Annual Revenues to offset adopted budget $117,000 _ State funding, contracts, Trivia Challenge fundraiser Net cost to General Fund $270,428 _ -5- Community Learning Center Established in 1999 in response to a series of community focus groups targeting services in the Old Town neighborhood, the Community Learning Center (CL,C) was established to provide homework assistance to local elementary school age children and classes and programs to improve the skills and lives of local adults and families. The Community Learning Center's educational programs, which focus on family support and community building, assist South San Francisco residents in reaching their full potential. Community Learning Center programs: • Improve academic performance and keep children in school • Build independent and confident English language :learners and prepare them to become citizens • Increase access to computers for adults and children. (c;loses digital divide) • Reduce gang involvement • Provide families with training, resources and support to reduce violence and enhance educational and financial success • Support parents in helping their children with homework • Assists immigrants in becoming more involved in their community • Prepare adults for employment and job advancement Community Learning Center statistics - in fiscal year 2009-2.010, the Community Learning Center served 1,459 individuals: • 293 adults participated in English Classes • 326 adults participated in Computer Classes and Lab • 220 children participated in Homework Assistance Programs • 94 adults attended Citizenship Class • 8 adults participated in Native Language (Spanish) ~tut:oring • 296 children were engaged in the Children's Activity Area while their parent attended classes and workshops • 222 adults participated in collaborative project workshops (Police Academy, parent support groups, Childcare Coordinating Council workshops, etc.) Community Learning Center staffing: • General Fund: 1.9 full time staff members (plus .1 RDA funding) for 1 Manager and 1 Administrative Assistant; .43 FTE -part-time hourly staff members -office and reception assistance; provide children's activities whilE; parents are attending classes • Grant funded (included in annual budget process): 5,.08(FTE) staff members providing afterschool homework assistance, computer classes, workshops • RDA funding: .10 FTE for CLC Manager (Linder); .5 FTE for Literacy Services Coordinator (Bookbinder) Community Learning Center volunteers: • Current volunteers: 28 • Annual hours of service provided: 2,379 -6- Community Learning Center funding: Salaries $162,415 1.9 full time & .43 hourly staff members Benefits $84,697 1.9 full time staff members Supplies & Services $10,765 Includes $2,312 water, $208 phone Interdepartmental charges $59,391 IT, insurance, equipment replacement General Fund Bud et $317,268 _ Grants & Donations $322,282 5.08 FTE staff members RDA $66,860 .6 FTE _ Total Bud et $706,410 Main Library Circulation Services The Circulation Program, Main Library is responsible for: • Checking out and checking in approximately 666,00() Library items circulated each year, as well as checking in Library materials owned by other libraries and returned to the Main Library • Library Cards: 3,000 new Library cards were issued at Main and Grand libraries in fiscal year 09-10; approximately 38,000 SSF residents have an "active" library card, of which 26% are children through age 14 (non- active cards are purged from the database every 2- 3years) • Providing staffing for 54 open hours a week, spread over 7 days, as well as an additional 8.5 hours a week to cover opening and closing procedures • Re-shelving all materials that have been returned by patrons • Maintaining the Library collections of 112,000 items, including weeding damaged, missing and out of date materials; pulling reserve items; changing item status for new and special display items; shifting collections to address space needs • Billing for lost and damaged items • Contacting patrons regarding problems with returned items, such as incomplete book on CD sets; arranging payment schedules for patrons with large fines/fees on their records • Preparing specialized collection and patron database li:;ts for use in identifying missing items, non-circulating items, patrons "sent" to collections, reserve lists, etc. • Representing SSF on a Peninsula Library System planning and policy making committee; planning for and implementing system upgrades and database changes on the local level • Daily fines and fees collections ($103,500 per year) ,and daily accounting process • Providing general troubleshooting on public computer:>; assisting patrons in use of computers, pay station, printers, photocopiers, microfilm machine • Customer service, including answering telephones, filling patron item requests, answering simple informational or directional requests, providing information on library programs, policies, procedures, accepting and processing materials donations, representing the Library at community fairs and events, maintaining community information displays • Managing and deploying library volunteers -7- Main Library Circulation staffing: • General Fund 7.86 FTE: 1.8 full time staff members; ]l .35 FTE -part-time regular staff members; 4.71 FTE -part-time hourly staff member:; Main Library Circulation volunteers: • Current volunteers: 62 • Annual hours of service provided: 2,500 Main Library Circulation funding: Salaries $306,952 ($126,1:26 full time; $177,826 part time) Benefits $108,038 General Fund Bud et $414,990 _ Fines & Fees $103,500 Overdue and lost items, printing fees, etc. California State Library Revenues $140,000 Direct Loan (checkouts by non-residents), Interlibrary Loan (SSF materials sent to other lil>ra~ries to fill reserves) Total cost to General Fund $171,490 Total bud;;et minus grants, donations, and general fund revenues -8- CITY OF SOUTH SAN FRANCISCO INTEROFFICE MEMORANDUM DATE: November 11, 2010 TO: Barry M. Nagel, City Manager FROM: Philip D. White, Fire Chief SUBJECT: BASIC LIFE SUPPORT (BLS) AMBULANCE PROGRAM Since its creation in 1910, the South San Francisco Fire Department has been a provider of emergency medical services for the City's residents and businesses. In 1975, the Department implemented its paramedic program. In 1982, these services; were expanded further to include Advanced Life Support (ALS) ambulance transportation. Bf;cause of increasing call volume a second ALS ambulance was later added in 1994. Approximately 57% of the calls received by the Department in 2009 were medical in nature. Even with the second ambulance in service there were numerous instances when no ambulances were available in South San Francisco. In response, an auto>matic aid agreement with the San Mateo County pre-hospital care provider was developed. Over the years it has been in effect the agreement calls for the sending of ambulances into a neighbors operating area when their ambulance resources have become depleted as a result of high call volume, multi-casualty incidents, etc. Unfortunately, more times than not when the County's pre-hospital care provider's ambulances were sent to South San Francisco they were often redirected to other calls while enroute, had unacceptable long response times (greater than ]l2 minutes) or on high call volume days were entirely unavailable. As a result, the Department took steps to reduce its reliance on the County for ambulance back- up by maximizing the availability of its own ALS ambulances. This was accomplished by having patients who did not require ALS level of care be transferred to a BLS ambulance for transport. Since at that time the Department did not have its own BLS ambulance service contracts were developed with local private ambulance companies to send a BLS ambulance when the Department's ALS ambulances responded to a medical emergency. Because of the low frequency of turnovers to these BLS ambulances it was not cost effective for these private ambulance companies to "shadow" our ALS ambulances on calls and they soon opted out of their contracts. To remedy this, the Department's BLS Ambulance Program was implemented in January 2005. The BLS ambulance is available seven days a week from the hours of 7:00 a.m. to 7:00 p.m. and is housed at Fire Station 61. It is staffed by two Emergency Medical Technicians (EMT's) who are contract employees with an average rate of pay of $17'.00 per hour that also receive certain benefits (medical, dental, etc) similar to regular employees. In FY 08-09 the BLS ambulance briefly operated on a 24 hour basis. Due to poor call volume as a result of American Medical Response (AMR) decreasing the number of BLS transports it had previously referred, the hours -9- of operation were again reduced to 12 in FY 09-10 where it: has remained ever since. In the six years it has been in operation the BLS ambulance made net contribution to the General Fund Reserves for three of those years. Five Year BLS Ambulance Profit/Loss Summary FY 0405 FY 05-06 FY 06-07 FY 07-OP. FY 08-09 FY 09-10 Hours of Operation 12 12 12 12 24 12 Revenue $377,688.00 $523,226.00 $509,224.00 $311,965.00 $284,947.00 Expense $109,387.00 $263,303.00 $312,464.00 $371,149.00 $570,258.00 $425,087.00 Net Contribution to/Draw from General Fund Reserves $109,387.00 $114,385.00 $210,762.00 $138,076.00 -$258,293.00 -$140,140.00 First and foremost, the BLS Ambulance Program ensures ghat a "third" ambulance is available when the Department's two ALS ambulances are unavailable while responding to other 9-1-1 calls. "Call backs" for the BLS ambulance to return to tl>e City limits to function as a `third ambulance" occurs 65 times a month or 780 times a year. Based on current trends it is projected 100 of these "call backs" will result in a transport of a patient. The BLS ambulance when called back to function as a "third" ambulance is projected to generate approximately $36,400 in FY 10-11. A "third" ambulance is essential for persons who require emergent transport as a result of a sudden illness or injury. Emergent transport is indicated when a victim's medical condition cannot be stabilized by the paramedics at the scene of an emergency. Examples of conditions which require emergent transport include patients with a blocked airway, uncontrolled bleeding, complications of emergency childbirth involving a breach presentation, etc. To maximize the availability of the Department's ALS ambullances for persons whose condition requires an advanced level of care, a patient's illness or inj~ur;y is evaluated by paramedics at the emergency scene to determine if they are eligible for transport by BLS ambulance. Examples of some conditions which allow for transport by BLS ambulance include illnesses without cardiac or respiratory disease complications, and the paramedic has determined they are in fair or good condition with stable vital signs. Examples of injuries that will be considered for BLS ambulance transport include isolated musculoskeletal injuries (sprains, strains and fractures) which do not require bleeding control, repositioning of the afi:ected limb prior to splinting and/or administration of pain medication. Based on current trends this will occur 9 times a month or 112 times annually. As a result, the BLS ambulance is projected to generate approximately $40,768 in FY 10-11 when it transports those patients who do not require an advanced level of care. To minimize any transfer of care delays for patients wha have been identified as being eligible for BLS ambulance transport, the BLS ambulance "shadows" the Department's ALS ambulances when they are dispatched to the scene of a medical emergencies. In the event the patient is transported by ALS ambulance the BLS ambulance becomes available as the City's "third ambulance" or to respond to other requests for service. When not providing back-up emergency ambulance services within South San Francisco, The BLS ~unbulance is available to transport non-ambulatory residents and non-residents to and from their physician's office, treatment -10- centers, clinics and hospitals. Based on current trends this ~~ill occur 66 times a month or 791 times annually. As a result, the BLS ambulance is projected by the Fire Department to generate approximately $230,339 in revenue from non-emergency transports. In the event that multiple patients require transport, or patients at the scene of the emergency are requesting transport to different receiving hospitals, or a patient is requesting transport to a specialty care center outside of the Department's ALS ambulance service area (hospitals in Santa Clara or San Francisco Counties) the BLS ambulance can be utilized. If the patient requires ALS level of care during transport, a paramedic from the engine company will ride to the hospital with the patient. Transport by the BLS ambulance when indicated also provides aloes-cost alternative to more expensive transport in the Department's ALS ambulances. The average number of BLS ambulance transports per day in the first quarter for FY 10-11 was 2.75. This compares to a 1.45 daily average for all of FY OS--10. January 2010 to Present BLS Ambulance Trending Data $100,000 __ _ _. _. _.__ _ _, 100 $90,000 ___ _ _ ___ _- _ _ ___._-. ; 90 $80,000 -- -_.. _.__._. ____._.._ __---------- -- - /'_-__ 80 $70,000 -_-_..---.____. __. ---..---------____~_.______- -- --- ~- 70 $60,000 _ - _ - + 60 ~ Collected ~ Billed $50,000 -__ _ _ __ 50 Trips --Linear (Collected) $40,000 _ __ __ _ _ _ _, 40 -Linear (Billed) Linear (trips) $30,000 _ _ - _ _ __ - 30 $20, 000 _ . _ _.-- _ .._ _ _ --- --- -- - + 20 $10,000--_~ -~ ~ _.. -- - -{ --- --~ --' * 10 $- Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 0 The average number of BLS ambulance transports projected )to occur in FY 10-11 is 1,369 (3.75 per day) if current trends continue. The average charge fir a BLS ambulance transport by the Fire Department is $911.00. The average amount collected per transport is $364.00. The difference between what is charged and what is collected is based upon the types of insurance typically used to pay for BLS ambulance transports. The majority of patients transported by the BLS ambulance are insured by either Medicare or Medi-Cal. Using the current trend of 2.75 transports per day the Fire Department projects this would result in the collection of $292,292 in revenue (based on the current insurance payer mix and historic collection rate of 80%). The cost of providing this service for the same time period would be $425,087. The Fire Department therefore projects that ,thf; City will draw $34,580 from the General Fund Reserves for FY 10-11 after deducting the costs for providing the service. In FY -11- 11-12 and beyond, the amount of revenue generated could rise as the BLS ambulance calls for service increase as a result of its ongoing marketing efforts. The BLS program recovers its cost in other ways as well. 'These include the additional revenue generated by the Department's ALS ambulances responding, to 9-1-1 requests outside of the City limits. Because the BLS ambulance can serve as a "third" ambulance the Department is able to make its ALS ambulance available to more areas of San Mateo County and on a more frequent basis than what previously occurred. This increased utilization of the ALS ambulance made possible by the BLS ambulance serving as a `third ambulance" was responsible for increasing ALS ambulance revenue by $48,000 in FY 09-10 and is projected to do the same in the current fiscal year, according to Fire Department projections. The BLS program is also responsible for presenting health and safety training to residents and employees of local businesses. EMT's who staff the BLS ambulance in addition to their other duties are required to become instructors and present health and safety training. Examples of training offered include first-aid, CPR, fire extinguishers, building evacuation, emergency response to hazardous materials incidents, etc. Health and safety training is projected to generate $35,000 in net revenue for FY 10-11, according to Fire Department Projections.. Summary of BLS Ambulance Revenue and Expenses FY 09-10 Hours of Operation Revenue /Cost Recovery Sources "Third Ambulance" Transports ALS Amb. to BLS Amb. Transfers Non-Emergency Transports Increased 9-1-1 ALS Ambulance Utilization Health and Safety Training Revenue Sub-total Expenses Draw from General Fund Reserves 12 hours $36,400.00 $4,004.00 $161, 543.00 $48,000.00 $35, 000.00 $284, 947.00 $425, 087.00 -$140,140.00 -12- Summary of BLS Ambulance Projected Revenue and Expenses FY lali Hours of Operation 12 hours Revenue /Cost Recovery Sources "Third Ambulance" Transports $36,400.00 ALS Amb. to BLS Amb. Transfers $40,768.00 Non-Emergency Transports $230,339.00 Increased 9-1-1ALSAmbulance Utilization $48,000.00 Health and Safety Training _ $35,000.00 Revenue Sub-total $390,507.00 Expenses _ $425,087.00 Draw from General Fund Reserves -$34,580.00 In addition to the aforementioned benefits, the BLS Program is also an important recruitment tool utilized by the Department to attract and screen future employees while at the same time meeting its commitment to create a more diverse workforcf;. Persons who wish to pursue a career in the fire service benefit greatly and are at a competitive advantage over their peers if they are able to list previous employment with a fire department. As a result, the Department is able to attract employees who are extremely motivated 1:0 learn and interested in providing excellent customer service to patients and their families who require ambulance transportation services as they pursue their long term objective of a career in the fire service. Many of these EMT's have later been hired back as paramedic/firefighters by the Department after they have completed paramedic school because they have demonstrated a strong work ethic and commitment to the Department's mission while working on the BLS ambulance. Because of their previous employment with the Department they ,arf: also familiar with its policies, procedures and other work practices and are thus able to become more proficient sooner than other probationary employees which reduces the need for as much training and/or oversight. Like other municipalities, the City has experienced decreasing revenues as a result of the worse economic downturn since the Great Depression. This problem is exacerbated by State takeaways and rising employment costs. Since 2003 the Fire Department has taken steps to reduce expenditures where feasible; to develop better cost recave;ry for services delivered, and to increase revenues when possible. The City Council has asked for each Department to develop creative methods by which to do this. The BLS Program is, but one example the Department has taken to increase revenues and has shown the potential to contribute to this effort not only in the past but the future as well. -13- Trends in Fire Department Revenue Collection $3.500,000 $3.000.000 $2,1i2s,173 2,693,762 .... $2,4,,.5602.483,187 .~_ $2.500.000 - $2,aao,64o $2,000,000 ~ ^ Health and Safety $1,624,~s BLS Ambulance slsu,9s1 ^ Paramedic Service $1.500,000 , ^ Fire Prevention $1.000.000 $500,000 - $- 03-04 04-05 05-06 06-07 07-08 08-09 OS3-10 In closing, like many successful businesses, the Department has developed several different revenue streams as seen in the chart above. The purpose of this is to increase the likelihood for success as can be seen by a 90% revenue increase that occurred between FY 03-04 and FY 09- 10. This is also done to spread risk so that regardless of an individual revenue stream's performance overall revenue goals will still be realized. Since FY 03-04 the Department has achieved its revenue goals with the exception of FY 08-09 which was at the height of the current economic downturn. The Department is confident that the BLS Program performance will continue to improve to where once again it is making ne;t contributions to the General Fund Reserves as it did in FY's OS-06, 06-07 and 07-08. However, it has taken the necessary steps to minimize the likelihood of it affecting the achievement its overall revenue goals in the event this takes longer than anticipated. -~~~ ~ Philip D. White Fire Chief -14-