HomeMy WebLinkAboutFig Garden Fire Protection District Rider No 2City of
FRMtlf REPORT TO THE CITYCOUNCIL
January 29, 2008
FROM: RANDY R. BRUEGMAN, Fire Chief
Fire Department
AGENDA ITEM NO. 1b
COUNCIL MEETING 1/29/08
APPROVED
BY
DEPARTMENT DIRECTOR(
CITY MANAGER
SUBJECT: RECOMMEND APPROVAL OF RIDER NO. 2 TO FIG GARDEN — CITY OF FRESNO FIRE
PROTECTION SERVICES AGREEMENT
KEY RESULT AREA: 0209003000
Public Safety
RECOMMENDATIONS
Staff recommends Council approve Rider No. 2 to the fire service agreement between the Fig Garden Fire
Protection District and Fresno Fire Department.
EXECUTIVE SUMMARY
During the course of the annual audit conducted for the Fig Garden Fire Protection District, the certified public
accountant suggested additional clarifications to existing provisions in the agreement be made with regard to
application of the Consumer Price Index to the District's annual capital allocation, reduction in tax revenue
service fees to the City for any tax administrative charges made by the County of Fresno, and clarification of
those revenues to be retained by the District from various non -tax revenue sources. Staff concurs with the
recommended changes and has worked with District counsel and the City Attorney to draft the appropriate
language for City Council consideration and approval.
KEY OBJECTIVE BALANCE
Customer, Employee, and Financial Satisfaction will be enhanced by providing additional clarification to the
current contract for services, which benefits the Fig Garden Fire Protection District, the residents of the District,
and the City of Fresno, as this contract continues to provide for a consolidated safety response into this area.
Presented to Cd 1 Sn9� 0 t3
Date
Disposition &d2_
REPORT TO CITY COUNCIL
Recommend Approval of Rider No. 2 to Fig Garden -
City of Fresno Fire Protection Services Agreement
January 29, 2008
Page 2
BACKGROUND
During the course of the annual audit conducted for the Fig Garden Fire Protection District, the certified public
accountant suggested additional clarifications to existing provisions in the agreement effective January 1, 2006,
be made. These clarifications areas follows:
Application of the Consumer Price Index to the District's $30,000 annual capital allocation
from property tax revenues;
• Reduction in tax revenue service fees to the City for any tax administrative charges made
by the County of Fresno; and
• Clarification of those revenues to be retained by the District from various non -tax revenue
sources (e.g., sale of District assets, retained earnings balances of District on hand as of
June 30, 2005, and all interest earnings on said sums).
Staff concurs with the recommended changes and has worked with District counsel and the City Attorney to
draft the appropriate language for City Council consideration and approval.
FISCAL IMPACT
There are no material negative impacts to the General Fund as a result of these language clarifications.
RRB/cc:mc 011608
Attachment:
Rider No. 2
) I -, Q; 06
CIN OF FRESNO
City Clerk's Office (Original)
RIDER NO. 2
TO
FIG GARDEN — CITY OF FRESNO FIRE PROTECTION SERVICES AGREEMENT
This Rider No. 2 modifies the Agreement effective January 1, 2006, entered into between the
CITY OF FRESNO, a California municipal corporation (City), and FIG GARDEN FIRE
PROTECTION DISTRICT, a political subdivision of the State of California ("Districf').
WHEREAS, the District, following consultation with its auditor and the City, following
discussions with the District, have jointly determined to modify the Agreement in certain
respects and to do so by this Rider No. 2.
NOW, THEREFORE, BE IT AGREED THAT the Agreement is hereby modified and
supplemented as follows:
Paragraph 3 of the Agreement is amended to read as follows:
"3. DISTRICT AGREES TO:
(a) Allow City to have exclusive use and occupancy of the Fig Garden Fire Station in
order to provide fire protection services to the Service Area as herein described,
and to other territories served by the Fresno Fire Department, provided the Fresno
County Sheriffs Office, at its sole cost and risk, may continue it occasional use of
an office on the Station property.
(b) Be responsible for the structural condition of the buildings at the Fig Garden Fire
Station and agrees that the buildings shall be maintained in as good a condition as
they are now. District is responsible for all exterior and interior maintenance of
the buildings, including repair of air-conditioning, heating units and roof of the
Station, after City has expended a total of $25,000 annually on such repairs, not
including cost for grounds maintenance. District is not responsible for
maintenance of the grounds, painting or replacement of carpets, furniture, or
appliances.
(c) To compensate City for providing fire protection services to the District, District
shall pay to City all property tax and other revenues, including but not limited to
state, federal and county payments actually received by District for fire protection
service, exclusive of the special assessment, save and except the sum of $20,000
per year and those sums described in subsection (h), which shall be retained by
District. Beginning January 1, 2007, and annually on each January 1, thereafter,
said amount retained by the District shall be increased by the percentage change
in the U.S. Bureau of Labor Statistics Consumer Price Index (Urban Wage
Earners and Clerical Workers for the Los -Angeles -Anaheim -Riverside area) for
the period from April 1, of the preceding calendar year, to March 31 of the current
calendar year. This provision shall be effective in this manner, as long as the
index mentioned above is published by government authorities in the same form
and based on the same type data being used on the effective date of the
Agreement, and shall be redefined by the parties in the event of any change in
form and/or basis of indices, to a reasonably comparable standard. Each annual
adjustment computation by City is hereby incorporated by reference herein. It is
estimated the net (of the retained $20,000) compensation provided under this
paragraph in year one will be $463,400.
(d) To compensate City for occupying and using the Fig Garden Fire Station as a City
fire station, in addition to the compensation listed in paragraph (c) above, District
shall pay City the revenue actually received from the special assessment approved
by the District's electors, which assessment shall be levied in an amount not less
than $529.88 per year, per single family residence in the District. It is estimated
the special assessment will generate in year one net (of the $30,000 referenced
below) revenues of $386,100. Such amount shall be paid to City during and for
periods that City occupies and uses the Fig Garden Fire Station as a City fire
station. The sum of $30,000 from the assessment shall be retained by District
annually in a special account to be used for major repairs and/or replacement of
the structures on the site of the Fig Garden Fire Station, as requested by City and
agreed to by the District. Beginning January 1, 2007, and annually on each
January 1, thereafter, said amount retained by the District shall be increased by
the percentage change in the U.S. Bureau of Labor Statistics Consumer Price
Index (Urban Wage Earners and Clerical Workers for the Los -Angeles -Anaheim -
Riverside area) for the period from April 1, of the preceding calendar year, to
March 31 of the current calendar year. This provision shall be effective in this
manner, as long as the index mentioned above is published by government
authorities in the same form and based on the same type data being used on the
effective date of the Agreement, and shall be redefined by the parties in the event
of any change in form and/or basis of indices, to a reasonably comparable
standard. Each annual adjustment computation by City is hereby incorporated by
reference herein.
(e) Payment to the City shall be made, subject to receipt of revenues from the County
Auditor, in two installments, April 300 and December 3151 of each calendar year.
(f) The amount to be paid for the initial period (less than one year) shall be prorated.
(g) Beginning on the effective date of this Agreement, the amounts to be paid to the
City pursuant to subsection (c), annually, shall be reduced by the tax collection
and property tax administration charges of the County of Fresno.
(h) Beginning on the effective date of this Agreement, the District shall also retain all
those sums: (1) shown as retained earnings, as reflected in the District's annual
audit report for the period ending June 30, 2005, and the retained earnings
reflected in such audit reports in all subsequent years, including all interest earned
on said sums and (2) the proceeds resulting from the sale of the fixed assets of the
District."
Except as otherwise provided herein, and in Rider No. 1, the Agreement shall remain in
full force and effect.
IN WITNESS WHEREOF, THE PARTIES' AUTHORIZED AGENTS HAVE EXECUTED
THIS RIDER NO. 2.
FIG GARDEN FIREJWTECTION DISTRICT
I�
Title:
CITY OF FRESNO
By. �� C
Title: A55I sfartt Othi M a n a C
APPROVED AS TO FORM:
Dale E. Bacigalupi
District Legal Counsel A t
Y—
APPROVED AS TO FORM:
James Sanchez
Ci ttor ey
ATTEST:
Rebecca E. Klisch
City Clerk