Consolidated Fire Protection District of Los Angeles County Municipal Service Review and Sphere of Influence Update

Local Agency Formation Commission for the County of Los Angeles 80 S Lake Ave #870 Pasadena, CA 91101 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted by the Commission (LA LAFCO) on July 8, 2020 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... 1 About CFPD .................................................................................................................................... 1 Legal Requirements and Purpose ................................................................................................... 1 Summary of MSR Findings ............................................................................................................. 2 COVID-19 Pandemic and Potential Consequences on CFPD ........................................................ 3 INTRODUCTION ................................................................................................................. 4 Sphere of Influence (SOI) ................................................................................................................ 4 Sphere of Influence Updates .................................................................................................... 5 Municipal Service Review (MSR) Requirements ............................................................................. 5 Purpose of this MSR and Scope of Work ........................................................................................ 7 Methodolgy ...................................................................................................................................... 8 Data Collection ......................................................................................................................... 8 Interviews ................................................................................................................................. 8 Department Profiles ................................................................................................................. 9 County Auditor-Controller Audit Reports .................................................................................. 9 Analysis and Criteria Sources ................................................................................................ 10 SERVICE REVIEW – CFPD ............................................................................................... 13 History and Formation of CFPD .................................................................................................... 14 Form of Government and Staffing ................................................................................................. 14 Sphere of Influence ....................................................................................................................... 15 Extraterritorial Services Provided by CFPD ........................................................................... 16 CFPD Service in Incorporated Cities ............................................................................................. 16 Pre-Proposition 13 ................................................................................................................. 17 Post Proposition 13: Newly Incorporated Cities Annexed ...................................................... 17 Post Proposition 13: Fee for Service ...................................................................................... 17 Forester and Fire Warden Services Provided Countywide .................................................... 18 Fiscal Health .................................................................................................................................. 19 District Operating Revenues .................................................................................................. 19 District Operating Expenditures ............................................................................................. 26 Services Provided by CFPD .......................................................................................................... 28 Principal Act Services Provided ............................................................................................. 29 Principal Act Services Not Provided ....................................................................................... 35 i Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Latent Services ...................................................................................................................... 35 CFPD Performance Standards ...................................................................................................... 36 ISO Rating Among CFPD’s Nine Divisions ............................................................................ 36 Response Time Standards Among CFPD Stations ............................................................... 37 FUTURE EXPANSION OF SPHERE TO ADDITIONAL CITIES ............................................ 38 Jurisdictions Analyzed ................................................................................................................... 38 La Verne ................................................................................................................................. 38 Manhattan Beach ................................................................................................................... 44 Redondo Beach ..................................................................................................................... 49 San Gabriel ............................................................................................................................ 54 Vernon .................................................................................................................................... 59 West Covina ........................................................................................................................... 64 Recap of Future SOI Expansion Study Areas ............................................................................... 69 Transitioning to Fee for Service and Annexation .......................................................................... 69 Pension Transition ................................................................................................................. 69 Annual Cost Increase Caps ................................................................................................... 70 Capital Replacement and Repair ........................................................................................... 71 Annexation ............................................................................................................................. 71 COMPARISON TO LARGER FIRE DEPARTMENTS AND DISTRICTS ................................ 72 Los Angeles Fire Department ........................................................................................................ 73 San Francisco Fire Department .................................................................................................... 73 Orange County Fire Authority ........................................................................................................ 74 Sacramento Metropolitan Fire District ........................................................................................... 75 MSR DETERMINATIONS ................................................................................................... 77 Population, Growth, and Housing .................................................................................................. 77 Disadvantaged Unincorporated Communities in CFPD SOI ......................................................... 79 Present and Planned Capacity of Facilities ................................................................................... 79 Financial Ability of CFPD to Provide Services ............................................................................... 81 Reserve Planning for Fire Services ........................................................................................ 82 Opportunities for Shared Facilities ................................................................................................ 84 Accountability for Community Service Needs ............................................................................... 86 Pertinent Little Hoover Commission Special District Report Findings .................................... 86 Transparency Practices Among Larger Fire Agencies ........................................................... 88 SOI Recommendations ................................................................................................................. 89 ii Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDICES ................................................................................................................... 91 Appendix 1: CFPD Boundaries and Sphere of Influence as of June 2020 ................................... 92 Appendix 2: Los Angeles County Fire Service Providers .............................................................. 93 Appendix 3: CFPD Fire Stations and Standard EMS Response Times ........................................ 94 Appendix 4: CFPD Organizational Chart ....................................................................................... 95 Appendix 5: CFPD Annexation Process ........................................................................................ 96 Appendix 6: Disadvantaged Unincorporated Communities (“DUCs”) ........................................... 97 iii Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 TABLE OF FIGURES Figure 1: CFPD Operating Revenue History .......................................................................................... 20 Figure 2: CFPD Revenues as Compared to All California Fire Districts ................................................. 21 Figure 3: Measure E Parcel Tax Rates as of 2019 ................................................................................. 24 Figure 4: Changes in Major CFPD Revenues Year-to-Year ................................................................... 25 Figure 5: Actual CFPD Expenditures based on Audited Financials ........................................................ 27 Figure 6: CFPD 2019-20 Budgeted Operating Expenses ....................................................................... 27 Figure 7: CFPD Fire Services Under Principal Act (Health and Safety Code Section 13862) ............... 29 Figure 8: EMS and Related Incidents ..................................................................................................... 30 Figure 9: Other CFPD Incidents ............................................................................................................. 31 Figure 10: Lifeguard Incidents ................................................................................................................ 33 Figure 11: Wildfire and Structural Fire Incidents ..................................................................................... 34 Figure 12: CFPD ISO Ratings by Division, 2017 .................................................................................... 36 Figure 13: Fire Department Expenditures, La Verne .............................................................................. 40 Figure 14: Fire Department Revenues, La Verne ................................................................................... 40 Figure 15: Population Forecast, La Verne .............................................................................................. 41 Figure 16: CFPD Serviceable Areas, La Verne Area ............................................................................. 43 Figure 17: Fire Department Expenditures, Manhattan Beach ................................................................ 45 Figure 18: Fire Department Revenues, Manhattan Beach ..................................................................... 46 Figure 19: Population Forecast, Manhattan Beach ................................................................................ 46 Figure 20: CFPD Serviceable Areas, Manhattan Beach Area ................................................................ 48 Figure 21: Fire Department Expenditures, Redondo Beach ................................................................... 50 Figure 22: Fire Department Revenues, Redondo Beach ........................................................................ 51 Figure 23: Population Forecast, Redondo Beach ................................................................................... 51 Figure 24: CFPD Serviceable Areas, Redondo Beach Area .................................................................. 53 Figure 25: Fire Department Expenditures, San Gabriel .......................................................................... 55 Figure 26: Fire Department Revenues, San Gabriel .............................................................................. 56 Figure 27: Population Forecast, San Gabriel .......................................................................................... 56 Figure 28: CFPD Serviceable Areas, San Gabriel Area ......................................................................... 58 Figure 29: Fire Department Expenditures, Vernon ................................................................................. 61 Figure 30: Fire Department Revenues, Vernon ...................................................................................... 61 Figure 31: Population Forecast, Vernon ................................................................................................. 62 Figure 32: CFPD Serviceable Areas, Vernon Area ................................................................................ 63 iv Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 33: Fire Department Expenditures, West Covina ........................................................................ 65 Figure 34: Fire Department Revenues, West Covina ............................................................................. 66 Figure 35: Population Forecast, West Covina ........................................................................................ 66 Figure 36: CFPD Serviceable Areas, West Covina Area ........................................................................ 68 Figure 37: Summary of Fire Services for Cities Studies ......................................................................... 69 Figure 38: Profile of Peer Fire Agencies Reviewed ................................................................................ 72 Figure 39: Population Forecast, CFPD Territory and Los Angeles County ............................................ 78 Figure 40: CFPD Equipment Inventory ................................................................................................... 80 v Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 LIST OF ABBREVIATIONS USED ACO Accumulated Capital Outlay Funds ACS American Community Survey ALS Advanced Life Support CAFR Consolidated Audited Financial Report CalPERS California Public Employees' Retirement System CEO Chief Executive Officer CFPD Consolidated Fire Protection District CKH Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 COVID-19 Coronavirus Disease CPR Cardiopulmonary Resuscitation DHS Los Angeles County Department of Health Services DOF California Department of Finance DUC Disadvantaged Unincorporated Community EMS Emergency Medical Service EMT Emergency Medical Technician FFW Los Angeles County General Fund Forester and Fire Warden GIS Geographic Information System HCD California Department of Housing and Community Development INSB Interoperability Network of the South Bay ISO Insurance Services Office LACERA Los Angeles County Employees Retirement Association LAFCO Local Agency Formation Commission LAFD City of Los Angeles Fire Department MSR Municipal Service Review NFPA National Fire Protection Association OCFA Orange County Fire Authority OPEB Other Post-Retirement Benefits RHNA Regional Housing Needs Assessment RPTTF Redevelopment Property Tax Trust Fund SFFD San Francisco Fire Department SMFD Sacramento Metropolitan Fire District SOI Sphere of Influence SRA State Responsibility Area TRA Tax Rate Area vi Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 EXECUTIVE SUMMARY The Local Agency Formation Commission (“LAFCO”) for the County of Los Angeles is preparing a Municipal Service Review (“MSR”) and Sphere of Influence (“SOI”) review for the Consolidated Fire Protection District of Los Angeles County (“CFPD”). LAFCO acts as the county-wide oversight agency that coordinates logical and timely changes to local government boundaries. ABOUT CFPD CFPD is one of the largest fire departments in the State of California and currently provides services to all unincorporated areas in County of Los Angeles (“County”), 58 cities in Los Angeles County, as well as the City of La Habra in Orange County. CFPD’s SOI covers a total area of 3,298 square miles, 72 miles of coastline, and protects a total of 4,276,079 people. It operates with an annual budget that is over $1.2 billion and employs a total of 4,692 employees, including firefighters and administrative support staff that support the day-to-day activities of CFPD. CFPD is a full-service fire department that has the necessary resources to respond to many different types of incidents, varying from typical fire suppression and Emergency Medical Services (EMS) incidents to the more rare and specialized incidents such as wildfire suppression and hazardous materials incidents. Appendix 1 shows the CFPD boundaries and SOI as of April 2020. LEGAL REQUIREMENTS AND PURPOSE The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Government Code Section 56430 et. seq., (“CKH”) requires that LAFCOs prepare periodic reviews of services provided by most local agencies and provides discretion on the manner in which a commission may go about undertaking these reviews. These reviews are instrumental in making determinations on jurisdictional and SOI boundaries, informing commissions, affected agencies, and the general public of opportunities for improving service delivery. 1 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 The purpose of this MSR is to perform a comprehensive update and address expressed interest of six cities outside of the CFPD’s SOI to annex to the CFPD SOI. As such, this MSR focuses on the CFPD and evaluates the level of fire protection service it is currently providing, and the future ability to provide fire services to certain cities within Los Angeles County that may choose to annex into CFPD in the foreseeable future. SUMMARY OF MSR FINDINGS Based on the analysis and review presented herein, RSG can make the following findings: § The failure of the Los Angeles County Fire District 911 Firefighter/Paramedic Emergency Response Measure (“Measure FD”) poses a concern about CFPD’s ability to meet operational needs, particularly among communities where it does not collect a fee-for- service. § The precise scale of pension and Other Post-Employment Benefits (OPEB) obligations associated with CFPD is unknown because these are blended in the County’s overall pension plan Los Angeles County Employees Retirement Association (LACERA); future liabilities may constrain the County’s ability to provide retirement benefits, while maintaining its own fiscal health in the face of a forthcoming recession due to COVID-19; § While currently making improvements as of the drafting of this MSR, CFPD should share its strategic planning and transparency practices to better communicate its vision and accountability to taxpayers, as well as address growing capital replacement and equipment needs; and § CFPD is the largest local fire agency in the State and by virtue of its relatively large budget and operational staff, is likely to offer an alternative to cities outside the SOI seeking to control costs on fire services. § CFPD operates within its authority under the Principal Act, requiring no resolution of application to LAFCO for approval of latent powers (see page 29 for more information). 2 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 § Pursuant to LAFCO’s Sphere of Influence Policy, RSG is recommending that the CFPD SOI be defined as a Larger than Sphere of Influence given the expectation for future growth of the district’s boundaries and associated services within the area. To allow for annexation should both the cities and CFPD agree, expand the CFPD SOI at this time to include the six (6) cities studied: La Verne, Manhattan Beach, Redondo Beach, San Gabriel, Vernon, and West Covina (see page 89 for SOI Recommendations). COVID-19 PANDEMIC AND POTENTIAL CONSEQUENCES ON CFPD During the time of preparation of this MSR, the COVID-19 pandemic broke out across the world including the United States, resulting in the infection of nearly 17,000 Californians as of the writing of this MSR. Health care workers and other essential service providers have been on the front lines of responding to the health crisis, many of these same workers face higher risk of infection, including CFPD EMS personnel. As of May 31, 2020, CFPD announced that at least 31 of the 345 employees tested by the department, tested positive for the virus. Efforts to control the spread of the coronavirus have included a statewide stay-at-home order by Governor Newsom on March 19, 2020, the ensuing shutdown of many parts of the state economy, and a nationwide spike in unemployment with nearly 40 million Americans filing for unemployment by the end of May 2020. State and Federal resources have been directed to support the economic effects of the pandemic as well, and the long-term economic consequences of an apparent recession are not yet known. Even without certainty on these health and economic impacts, public agencies are likely to experience more fiscal challenges in the coming months if not much longer due to the ongoing pandemic. However, RSG cannot yet provide a complete determination regarding the forthcoming fiscal and operational challenges on CFPD or any public agency at this time. At a minimum, the findings in this MSR should be contextualized with the ongoing COVID-19 pandemic and its possible consequences by LAFCO, CFPD management, and the Los Angeles County Board of Supervisors. 3 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 INTRODUCTION CKH directs Los Angeles LAFCO and the other 57 LAFCOs in California to discourage urban sprawl, encourage the orderly formation and development of cities and special districts, and to preserve agricultural land. LAFCOs act as the county-wide oversight agency that is responsible for coordinating logical and timely changes in local governmental boundaries, including annexations and detachments of territory; incorporations of cities; formations of special districts; and, consolidations, mergers, and dissolutions of districts. In this manner, LAFCOs play an important role in assuring the thoughtful, appropriate, and efficient reorganization, simplification and streamlining of quality local governmental services. As part of these objectives, LAFCOs establish and periodically review Spheres of Influence (SOI) for local agencies through a process known as a Municipal Service Review (MSR) and Sphere of Influence Update. These processes are described below. SPHERE OF INFLUENCE (SOI) In 1972, LAFCOs throughout the state were tasked with determining and overseeing the sphere of influence for local government agencies. A Sphere of Influence is a planning boundary that may be outside of an agency’s jurisdictional boundary (such as a special district service area or city limits) that designates the agency’s probable future boundary and service area. Factors considered in a sphere of influence include current and future land use, capacity needs, and any relevant areas of interest such as geographical terrain, location, and any other aspects that would influence the level of service. Per Government Code Section 56425, a sphere of influence shall consider and prepare a written statement of its determinations on the following factors: 1. the present and planned land use in the area, including agricultural and open space lands; 2. the present and probable need for public facilities and services in the area; 4 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 3. the present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; 4. the existence of any social or economic communities of interest in the area; and 5. the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. The purpose of a sphere of influence is to ensure the provision of efficient services while discouraging urban sprawl and the premature conversion of agricultural and open space lands by preventing overlapping jurisdictions and duplication of services. On a regional level, LAFCOs coordinate the orderly development of a community through reconciling differences between different agency plans. This is intended to ensure the most efficient urban service arrangements are created for the benefit of area residents and property owners. SPHERE OF INFLUENCE UPDATES From time-to-time, a sphere of influence may be modified as determined by the Commission; the procedures for making sphere amendments is outlined in CKH, and in some cases, further refined by a Commission’s own guidelines. Pursuant to Government Code Section 56430, a Commission must first conduct a Municipal Services Review, in this case, for the designated area contemplated to be served by CFPD, prior to updating, or amending the CFPD SOI. For purposes of this MSR, RSG identified a “Sphere of Influence Policy” adopted by the Commission on November 13, 2019, which will be addressed in the “SOI Recommendations” section (page 89) of this MSR. MUNICIPAL SERVICE REVIEW (MSR) REQUIREMENTS Section 56425(g) of CKH requires that LAFCOs evaluate a given SOI every five years, or as necessary; and the vehicle for doing this is known as a Municipal Service Review. Pursuant to Government Code Section 56430, Municipal Service Reviews are to make determinations 5 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 considering the seven (7) required topics based on the Cortese-Knox-Hertzberg Act. These seven topic areas include the following: 1. Growth and population projections for the affected area; 2. Location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence(s); 3. Present and planned capacity of public facilities and adequacy of public services, adequacy of public services, infrastructure needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence; 4. Financial ability of agencies to provide services; 5. Status of, and opportunities for, shared facilities; 6. Accountability for community service needs, including government structure and operational efficiencies; and 7. Any other matter related to effective or efficient service delivery, as required by Commission Policy. The focus of an MSR is to ensure that public services are being carried out efficiently and the residents of any given area or community are receiving the highest level of service possible, while also discouraging urban sprawl and the premature conversion of agricultural lands. If an MSR determines that certain services are not being carried out to an adequate standard, LAFCO can recommend changes be made through making sphere changes and dissolution or consolidation of service providers to provide the best service possible to the population. In addition, this MSR considers aspects specific to CFPD including staffing levels, equipment and apparatus’, station locations, resources and feasibility related to future demand and the delivery of services. MSR’s attempt to capture and analyze information about governance structures and 6 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 efficiencies of service providers, and to identify opportunities for greater coordination and cooperation between providers, while the service review may be a prerequisite to a sphere of influence determination and may also lead a LAFCO to take additional action within its authority. PURPOSE OF THIS MSR AND SCOPE OF WORK This MSR reviews the operational and geographic character of the CFPD. This MSR was initiated due to recent consideration by six local government fire departments expressing potential interest in annexing authority and services to CFPD. As a result, the MSR is designed to meet the requirements of the law for LAFCO to conduct periodic MSRs and SOI updates. Specifically, with respect to the urban and rural fire protection services provided by CFPD to existing local agencies, and six possible fee-for-service agencies, namely the cities of La Verne, Manhattan Beach, Redondo Beach, San Gabriel, Vernon and West Covina. However, it is important to note that this MSR evaluates CFPD, taking into consideration the fact that future cities may consider transitioning services to CFPD. In addition to the Municipal Service Review and Sphere of Influence Update, this MSR briefly evaluates the current operations, services, and practices of six municipal fire departments in cities that could elect to be annexed into CFPD (following an SOI expansion and consideration of a subsequent annexation application). This MSR also allows the opportunity to evaluate potential operational structures for local agencies, such as consolidation, dissolution, or the merging of given services or areas. The primary focus of the MSR is the feasibility and service level, however there is a financial aspect to be considered. This study does not evaluate ambulatory care or services as these are carried out by the Los Angeles County Department of Health Services (“DHS”). DHS serves as the lead agency for the emergency medical services system in the County and is responsible for coordinating all system participants in its jurisdiction, encompassing both public and private sectors. In California, counties have been given the primary responsibility for assuring that EMS systems are developed and implemented appropriately, and for designating a local EMS agency. In the County, CFPD allows fee-for-service cities that wish to annex into CFPD to negotiate its own ambulance services 7 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 and if the city declines this option, DHS will coordinate ambulatory services with a private company to cover that city’s geographic area. METHODOLGY RSG worked in coordination with LAFCO staff throughout the duration of this MSR. Key tasks and activities in the completion of this MSR include Data Collection, Interviews, Department Profile Development, Determination Analysis, Public Review of MSR, and the adoption of the final MSR. DATA COLLECTION To fully understand key factors and current issues involving the CFPD and various cities, RSG conducted an initial working session with LAFCO staff to determine the project scope and process and formalize overall MSR objectives, schedules, policy and fiscal criteria, city service standards, and roles and responsibilities. The MSR began with a complete and thorough review of available data and documents. In collecting data, adopted budgets, comprehensive financial reports, capital improvement plans, strategic plans, and general plans were assessed to develop a comprehensive overview of the CFPD and of a given agency. In addition, various reports and documents were utilized from the Southern California Association of Governments, California Department of Finance, the Census Bureau, LAFCO, and ESRI Business Analyst. Population growth rates were determined by utilizing Department of Finance reported numbers from 2010 to 2019, followed by applying an average annual growth rate of .39 percent to that value for the County, and an annual growth rate for CFPD of .38 percent. This aspect will be discussed in greater detail below. INTERVIEWS In coordination with LAFCO, during the months of January and February of 2020, RSG initially met with executive leadership of the CFPD and various City Managers and Fire Chiefs of interested cities. In addition, RSG conducted interviews with a current fee-for-service city to gain 8 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 insight on how the fee-for-service model is working in current practice. Throughout these interviews, RSG was able to gain insight into how resources are allocated, key factors to consider, how staffing decisions are made, and finally how services are provided to the community. RSG was also able to collect information on the overall operation of the departments, including staffing, community satisfaction, financial conditions, and resources, among other aspects. The interviews also allowed for the discussion of any unique aspects or key considerations in the completion of this MSR. DEPARTMENT PROFILES Following Data Collection and Interviews, RSG developed department profiles based on the criteria noted prior and required for the completion of the MSR per the Cortese-Knox-Hertzberg Act. This includes key characteristics including services offered, staffing levels, station locations, population and growth, service providers, infrastructure and financial condition, and boundary areas and maps. Department profiles can be found in the following sections of this MSR. COUNTY AUDITOR-CONTROLLER AUDIT REPORTS The County Auditor-Controller does periodic audits of functions and departments of the County, including CFPD. The County Auditor-Controller has prepared several audit reports specific to CFPD for public review, including nearly 15 prepared since 2011. (These reports are available on the County Auditor-Controller’s website (http://auditor.lacounty.gov/audit-reports/). Topics studied have included the following: § Personnel practices and policies (3 reports in last 10 years); § Information and communication (5 reports); § Assets (1 report in last 10 years) § Procurement (3 reports) § Fiscal policies (2 reports) 9 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Throughout our review, we have considered and have incorporated relevant finding areas in the MSR. ANALYSIS AND CRITERIA SOURCES National Fire Protection Association The National Fire Protection Association (“NFPA”) is a national non-profit organization that is devoted to eliminating death, injury, property, and economic loss due to fire, electrical and related hazards. NFPA is responsible for reducing fire risk through development and updating building codes and firefighting standards that all fire departments nationwide must adhere to. NFPA devotes a considerable amount of time and resources into research, training, and outreach and advocacy to continue the organization’s mission of reducing the risk that fire poses to the lives of individuals and property by upgrading the quality of buildings and increasing public knowledge of how individuals can play a part in reducing risk. Insurance Services Office Fire Protection Class Rating The Insurance Services Office (“ISO”) creates ratings for fire departments and the communities these departments serve. ISO gives overall fire protection class ratings ranging from 1 to 10 with a rating of 1 being the best and a rating of 10 means the department does not meet the ISO’s minimum requirements. ISO calculates a community’s overall fire protection class rating by evaluating the community on a 0 to 105.5 scale using the following criteria: § 50 percent of the rating is derived from the quality of the local fire department. Activities that are monitored include maintenance and testing of department equipment according to NFPA 1901, staffing levels, type and extent of training provided to department personnel, and proximity of stations to its residents. § 40 percent of the rating is based on the community’s water supply. Determinations for water supply is based on if sufficient water supply for fire suppression beyond daily maximum consumption, surveying all components of the water supply, review hydrant 10 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 inspections and frequency of flow testing, and the number of fire hydrants that are no more than 1,000 feet from the representative location. § 10 percent of the rating is based on the quality of emergency communications within a community. ISO determine the quality of emergency systems by evaluating the emergency reporting system, communication centers including the number of telecommunicators, computer-aided dispatch facilities, and the dispatch circuits and how the center notifies firefighters about the location of the emergency. § 5.5 percent of the rating is based on community risk reduction. This portion of the rating gives incentives to communities who strive to proactively reduce fire severity. The areas of community risk reduction evaluated are fire prevention activities, fire safety education, and fire investigations. Most insurance companies use these ratings to determine the home insurance rates that will be charged to homeowners in the respective city. Insurance companies charge higher premiums to communities with ratings closer to 10 and lower insurance premiums to communities with ratings closer to 1. Not all insurance companies rely on ISO ratings and may use their own criteria for determining insurance premiums. Emergency Medical Technicians and Paramedic Standards To provide adequate emergency medical services to its residents, CFPD requires that every firefighter on the department is a licensed Emergency Medical Technician - Defibrillation (EMT- D) and employs a large work force of paramedics. EMT-1 is the level of EMT certification that is ranked below EMT-D, however, CFPD requires its firefighters to be EMT-D in order to utilize the extra abilities that come along with that certification. EMT-1s are licensed to provide basic life support services such as Cardiopulmonary Resuscitation (CPR) and administering oxygen, EMT- Ds can provide the same services as an EMT-1 in addition to being trained to operate and automatic external defibrillator, and paramedics are licensed to provide advanced life support (ALS) services such as inserting intravenous therapy lines and administering drugs. EMT and paramedic licenses are regulated by the National Registry of Emergency Medical Technicians. 11 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Any person who serves as an EMT in the County must meet the following requirements: 1. Complete an EMT training course from a nationally approved EMT program. 2. Following the completion of an EMT training course, the candidate must pass the National Registry Exam. The exam consists of a cognitive (knowledge) and psychomotor (skills) sections. 3. After passing the National Registry Exam, the candidate must apply for an EMT certification from a local California EMS agency. Local EMS agency certifications are applicable statewide. 4. EMTs must continue to keep their EMT certification current through continued EMS education and testing requirements. Any person who serves as a paramedic in the County must meet the following requirements: 1. Must hold a National Registry certification or state certification to serve as an EMT. 2. Complete a nationally approved paramedic training program. 3. Pass the National Registry Exam. The exam consists of a cognitive (knowledge) and psychomotor (skills) sections. 4. Apply for and pass the California Paramedic License Exam. 5. Apply for and pass the County EMS Agency Paramedic Accreditation Exam. 6. Keep paramedic accreditation current through continued EMS education and testing requirements. 12 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 SERVICE REVIEW – CFPD CFPD is a dependent special district providing fire protection service to all unincorporated areas in County of Los Angeles, 58 cities in Los Angeles County, as well as the City of La Habra in Orange County. It is governed by the Board of Supervisors and funded by a combination of property taxes, fees for service, and other revenues. In total, CFPD employs a total of approximately 4,700 full-time employees across all its operations and administrative services. As shown in Appendix 3, 31 different agencies provide fire protection in the County; the largest of these is CFPD. CFPD is the only special district providing fire services in the County, with a sphere of influence covering all unincorporated Los Angeles County plus 58 of the County’s 88 incorporated cities. In addition to these Los Angeles County cities, CFPD also provides contract fire protection services to the City of La Habra (population 63,542) in adjacent Orange County, bringing the total population served between the two counties to nearly 4.3 million, based on January 1, 2019 population estimates from the California Department of Finance and approximately 3,298 square miles of land1. Elsewhere in the County, fire services are provided by local cities, but CFPD is among three agencies that serve most residents. When combined with the next two largest providers (the Los Angeles City Fire Department and the Long Beach Fire Department), these three fire agencies serve approximately 85 percent of the County’s residents. Not only does CFPD cover the largest amount of territory within Los Angeles County, it also maintains by a substantial margin the largest budget of any such fire district in California, with an operating budget of $1.23 billion2. CFPD owns and/or operates 174 fire stations throughout the 1 Source: Consolidated Fire Protection District 2 Source: 2019-20 budget 13 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 County and the City of La Habra. (Please see Appendix 3 for a map presenting the location of CFPD fire stations.) In addition to fire protection, CFPD provides several other public safety services, including dispatch, fire and rescue, emergency medical service, and lifeguard, as well as prevention and public education services. HISTORY AND FORMATION OF CFPD Prior to 1923, fire protection services in the County were provided by organized volunteer fire departments at a smaller city or community level. California State Law 2583 was passed in 1923, which allowed for property taxes to be collected for the purposes of fire protection districts in unincorporated areas. As a result, 29 fire protection districts were formed in the County between 1923 and 1925. In 1948, CFPD was formally established as a dependent special district under California law as various fire districts throughout the County began to consolidate under one umbrella. FORM OF GOVERNMENT AND STAFFING The CFPD is a dependent special district formed under California law. The Los Angeles County Board of Supervisors acts as its board of directors. CFPD operates under Health and Safety Code Section 13800. Health and Safety Code Section 13801 states “the Legislature finds and declares that the local provision of fire protection services, rescue services, emergency medical services, hazardous material emergency response services, ambulance services, and other services relating to the protection of lies and property is critical to the public peace, health, and safety of the state.” Operationally, CFPD has nearly 4,700 employees, led by 1 Fire Chief, 2 Chief Deputies, and 8 Deputy Chiefs who manage 10 separate budget units consisting of the following: 1. Emergency Services: o Emergency Medical Services 14 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 o Lifeguard o (Fire) Operations 2. Prevention Services: o Health Hazardous Materials o Prevention 3. Business Services: o Administrative o Executive o Financing Elements o Leadership and Professional Standards o Special Services Appendix 4 contains the current organization chart of CFPD from their 2019-20 operating budget. SPHERE OF INFLUENCE CFPD provides its services to unincorporated areas of the County, 58 of the County’s cities, and the City of La Habra, located in Orange County on the border of Los Angeles County. CFPD’s jurisdiction spans a total of 3,298 square miles, includes 72 miles of Pacific Ocean coastline, and the unincorporated portions of Catalina Island. CFPD covers a vast geographical area that is composed of many different types of terrain and communities. The terrain covered includes many large urban centers, suburban communities, vast forest territories in the Northern portion of the County of Los Angeles, and large stretches of 15 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 coastline and sandy beaches along the Pacific Ocean. CFPD’s SOI is largely inconsistent with many cities in the County still providing its own fire services from within. EXTRATERRITORIAL SERVICES PROVIDED BY CFPD Based on consultation with CFPD, it has been determined that there are a few instances of extraterritorial delivery of services taking place. CFPD currently provides the following extraterritorial services: § Dispatch services to the cities of La Habra Heights, La Verne, and Vernon. § Lifeguard services to the at city-owned beaches for the cities of Avalon, Rancho Palos Verdes, Redondo Beach, Manhattan Beach, and Santa Monica. § Lifeguard services to County-owned beaches in the cities of Torrance, Los Angeles, and El Segundo. CFPD SERVICE IN INCORPORATED CITIES § CFPD’s service area includes not only all unincorporated County within local responsibility area, but also 58 cities in Los Angeles County and the City of La Habra. As outlined in Appendix 2, Fire services provided by CFPD came into the district’s service area based on one of three models: 40 cities served by the CFPD prior to Proposition 13 where the district collects a share of the property tax levy and other revenue for service; § 7 cities that incorporated after Proposition 13 passed in 1978; and § 11 cities that annexed into CFPD and pay for services out of their respective general fund, plus the City of La Habra (located in adjacent Orange County) that contracts with CFPD for fire services. Appendix 1 presents a list of Fire Service Providers throughout the County. 16 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 PRE-PROPOSITION 13 Prior to the passage of Proposition 13 in 1978, CFPD had the ability to levy a property tax rate to fund services. When unincorporated areas were annexed or a city contracted with the CFPD, the District levied its tax rate to generate funding to pay for services. As a result, CFPD was able to levy taxes based on financial needs to deliver services. At the time of Proposition 13, CFPD served 40 cities throughout the County. Seven additional cities incorporated after 1978. As with all taxing agencies, CFPD was proportionally allocated a share of the 1 percent property tax in existing district areas. As a result, the ability to levy taxes to balance costs to revenues was lost. The CFPD collects and expends revenues on a district-wide basis, providing a consistent level of service regardless of revenues derived from a given city of jurisdiction. POST PROPOSITION 13: NEWLY INCORPORATED CITIES ANNEXED CFPD had continued to annex developed areas after the passage of Proposition 13 as most of the areas being incorporated were already within CFPD. Areas of a newly incorporated cities that were not in CFPD were concurrently annexed at the time of incorporation. These cities had the option to detach from CFPD and form their own fire departments at the time of incorporation but opted to stay with CFPD and resulted in CFPD retaining a share of the property tax levy for fire service rather than it being transferred to the new city upon incorporation. POST PROPOSITION 13: FEE FOR SERVICE Beginning in the early 1980’s as a result of Proposition 13, a Fee-for-Service model was developed. This model charges annual fees to all cities that desire to contract for services. To date, 11 Los Angeles County cities have fee-for-service contracts with CFPD following annexation, the most recent of which was the City of Hermosa Beach which transitioned to CFPD on December 30, 2017. Under the fee-for-service structure, CFPD bills the city an annual fee for the cost of services which are based upon the positions and cost-shares established at the time the contracts were approved by the respective city councils. 17 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 The City of La Habra is in Orange County and has not annexed into the CFPD, but contracts with CFPD for fire protection services under a similar fee-for-service model as the 11 Los Angeles County cities that have annexed into the CFPD. FORESTER AND FIRE WARDEN SERVICES PROVIDED COUNTYWIDE Prior to 1992, the Los Angeles County Fire Department operated as one fire department but was legally and financially two separate agencies. These two agencies were the General Fund Forester and Fire Warden (“FFW”) and CFPD. The FFW was responsible for suppression of forest and brush fires in Los Angeles County as well as the construction and maintenance of fire lines or breaks necessary to check and prevent the spread of forest fires. FFW’s responsibilities were not limited to unincorporated areas because state law provided the Board of Supervisors authority to protect and reforest watershed areas without restriction to unincorporated area. The FFW was also responsible for structural fires in unincorporated territory that was not within CFPD’s SOI. CFPD was responsible for fire protection and emergency medical services within the cities and unincorporated areas that were within CFPD’s SOI. FFW was funded through County’s General Fund and was subject to the budget process each year while CFPD received its funding through property taxes levied on the homes that were within CFPD’s territory. The two service providers being separate entities started to cause some difficulties and the fire chief at the time decided that it would be in the County’s best interest to fiscally unify the two parties in order to ensure the future financial security and efficiency of CFPD. The County CEO at the time agreed to the unification and CFPD began to carry out the responsibilities that were formally carried out by FFW. On October 6, 1992, CFPD and FFW were unified by the County in a two-step process. First, CFPD expanded its SOI and annexed all unincorporated areas in Los Angeles County. The County General Fund transferred $5.4 million and 17 percent of its share of future property tax to fund CFPD services in the newly annexed areas. The second step involved a Board of Supervisors approved county-wide property tax transfer to CFPD to fund FFW services. 18 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 The CFPD Fire Chief also holds the title of Forester and Fire Warden and has been given the authority by Los Angeles County Codes 2.20.050, 2.20.060, and 2.20.070 to provide recommendations to the County Board of Supervisors regarding the regulations and criteria for providing fire services in unincorporated areas of Los Angeles County. FISCAL HEALTH As a dependent special district, CFPD is funded independent of the County General Fund, and relies primarily on property taxes, fee-for-services, and special tax to provide essential fire protection, emergency medical, and other services. DISTRICT OPERATING REVENUES RSG compiled a 3-year history of audited financial information from CFPD based on the Consolidated Audited Financial Report (“CAFR”) filed by the County Auditor Controller; at the time of this Review, the 2018-19 CAFR had not been posted by the County Auditor Controller but an update will be made if this data is released prior to the public review hearing. For reference, operating revenues in the 2019-20 budget are approximately $1.2 billion. Figure 1 shows all the revenue sources of CFPD. 19 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 1: CFPD Operating Revenue History Revenues 2016-17 2017-18 2018-19 Taxes $ 812,973,000 $ 854,886,000 $ 902,212,000 Licenses, Permits, and Franchises 18,238,000 16,371,000 16,848,000 Fines, Forefeitures, and Penalties 2,747,000 2,347,000 2,428,000 Revenue from use of Money and Property Investment Income 1,350,000 1,302,000 1,543,000 Rents and Concessions 100,000 100,000 101,000 Intergovernmental Revenues Federal 5,691,000 14,651,000 5,375,000 State 15,256,000 14,742,000 17,068,000 Other 3,956,000 1,178,000 1,294,000 Charges for Services 212,751,000 244,264,000 211,710,000 Miscellaneous 2,957,000 3,406,000 2,927,000 Total Revenues $ 1,076,019,000 $ 1,153,247,000 $ 1,161,506,000 Source: Los Angeles County CAFR for Fiscal Years 2016-17, 2017-18, and 2018-19 Variance in the fiscal year 2017-18 Federal Intergovernmental Revenues from fiscal year 2016-17 and fiscal year 2018-19 is due to an effort by CFPD to address grant claim backlogs. Taxes comprised 78 percent of all revenues collected by CFPD in fiscal year 2018-19 and include property taxes and special (parcel) taxes levied in four areas of the district. As shown in Figure 2, fire districts in California typically receive 70 percent of their revenue from taxes, although most do not assess parcel taxes to supplement their revenue3. The second largest source of revenue (21 percent) came from charges for services, which in the case of CFPD are charges to contract cities under the pay-for-service model. Intergovernmental transfers, which include Federal Emergency Management Agency and mutual aid transfers, made up only 2 percent of all revenues in 2018-19; by contrast, these same revenues represent close to 7 percent of all revenues for all fire districts in California. 3 Source: State Controller’s Office Annual Report, fiscal year 2018 20 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 2: CFPD Revenues as Compared to All California Fire Districts All Other Revenue All Fire Districts Intergovernmental Revenue CFPD 21% Charges for Services 18% 70% Taxes 78% 0% 20% 40% 60% 80% 100% Property Taxes More than 88 percent of the tax revenue collected by CFPD is derived from property taxes. Property taxes consist of portions of the general (1 percent) property tax levy collected by CFPD within its non-fee-for service area, as well as a separate share of the general levy collected throughout the County for Forrester and Fire Warden services assumed by CFPD. Overall, relative to other revenues generated by CFPD, property taxes are increasing at a higher rate, due to assessed value appreciation since the 2008 Great Recession and the wind down of redevelopment agencies that began in 2012. § CFPD Fire District Share: In 2018-19, the County Auditor Controller’s office reports that CFPD collected a total of $671,526,301 in property tax revenue from collections within the Tax Rate Areas (“TRA”) corresponding to the unincorporated County and the 47 incorporated cities within which CFPD directly provides fire protection services. This consists of $599,161,975 of general levy property taxes apportioned directly to CFPD and another $72,364,326 of Redevelopment Property Tax Trust Funds (“RPTTF”) collected 21 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 indirectly via the dissolution of redevelopment agencies. According to the County Auditor Controller’s office, CFPD receives an average of 12.8 percent of the 1 percent general levy depending on the TRA. § CFPD Share for Countywide Forestry and Fire Warden: According to the County Auditor Controller’s office, CFPD collected a total of $123,145,641 in property tax revenues in 2018-19 consisting of $114,677,530 of general levy property tax revenues and $8,448,111 in RPTTF revenue. As Forestry and Fire Warden services cover the entire County (not just the CFPD territory), these revenues reflect collections Countywide. On average, the CFPD Forestry and Fire Warden share of the general tax levy is 0.8 percent of the 1 percent general levy. Since 2009-10, revenues from taxes (including property taxes as well as parcel taxes) have increased by 45 percent while revenues overall have increased by 33 percent, according to the County Auditor Controller. Still, as an agency reliant on property taxes, CFPD is vulnerable to economic downturns (like the Great Recession and potential economic impacts from the COVID- 19 crisis) that place strain on agencies when assessed values decline, particularly because these costs are not indexed to service demands, such as is the case with a fee-for-service model. Parcel Taxes Notwithstanding the failure of the Los Angeles County Fire District 911 Firefighter/Paramedic Emergency Response Measure (“Measure FD”) in March 2020, CFPD continues to assess one additional parcel tax to fund operational costs in its jurisdiction, known as Measure E. According 22 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 to records from the County Auditor Controller4, parcel tax revenues totaled $84,595,438, or nearly 10 percent of all tax revenue collected by CFPD. The Measure E parcel tax is assessed on all taxable real property in CFPD boundaries with the exception of fee-for-service jurisdictions, the special tax is billed on the Annual Property Tax Bill under Detail of Taxes Due, Direct Assessments. Approved by the voters in 1997, Measure E tax proceeds pay for essential fire suppression and emergency medical services. The tax increases every year with the cost of living adjustments and is capped at a maximum annual increase of 2 percent. The special tax rate varies depending upon the property type and use, as shown in Figure 3. While County Auditor-Controller records indicate three other parcel tax accounts for the communities of Azusa, Signal Hill, and unincorporated Wrightwood that is located within Los Angeles County, these are all part of the Measure E parcel tax. The Measure E revenue collected from Azusa annually is credited towards the city’s annual fee since it is a fee-for-service jurisdiction. 4 Pursuant to AB 2109, agencies are to report parcel taxes to the State Controller, who in turn publishes this information for the general public. However, no such records were available on the State Controller’s Parcel Tax Reporting website although officials at the County Auditor- Controller’s office report that these reports were filed. Therefore, the information contained herein is from the County Auditor-Controller’s office. 23 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 3: Measure E Parcel Tax Rates as of 2019 Special Tax Rate Land Use Special Tax Rate w/Sprinkler Credit Single-Family Residential $70.10 N/A Mobile Home in Park $35.05 N/A Multi-Family Residential 2 or more $88.55 + $0.0089 per sq. ft. $88.55 + $0.0086 per sq. ft. units less than 4 stories over 1,555 sq. ft.* over 1,555 sq. ft.* Non-Residential, Commercial/ $84.84 + $0.0571 per sq. ft. $84.84 + $0.0550 per sq. ft. Industrial less than 4 stories over 1,555 sq. ft.* over 1,555 sq. ft.* $103.29 + $0.0698 per sq. ft. $103.29 + $0.0667 per sq. ft. High Rise, 4 stories or more over 1,555 sq. ft.* over 1,555 sq. ft.* Special Use (Refineries and Major $129.11 + $0.0871 per sq. ft. $129.11 + $0.0832 per sq. ft. Chemical Handlers) over 1,555 sq. ft.* over 1,555 sq. ft.* Vacant Land - 2 acres or less $17.53 N/A Vacant Land - more than 2 acres $23.13 N/A and less than or equal to 10 acres Vacant Land - more than 10 acres $46.29 N/A and less than or equal to 50 acres Vacant Land - more than 50 acres $70.10 N/A Source: CFPD * Capped at 100,000 square feet per parcel Charges for Services CFPD also generates funding from its Fee-for-Service cities that pay an annual fee based on the cost sharing agreement that was determined when the city agreed to annex into CFPD. In general, CFPD generates approximately $211 million (18 percent) of its revenue from fee–for- service agreements with the 11 cities annexed into the district territory and La Habra, which is strictly a fee-for-service jurisdiction (not annexed) in Orange County. Each of these fee-for- service charges vary by jurisdiction, based on resources in each city, calls for service, and the network of nearby fire stations as specified in each contract. Despite the addition of Hermosa Beach to CFPD in 2017 to bring the total number of cities in Los Angeles County served under this model to 12, charges for services have increased by 33 percent over the last 10 years as compared to a 45 percent increase in CFPD taxes over the same time 24 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 period. CFPD advised RSG that the reason for the discrepancy between the increases in charges for service and CFPD taxes could be attributed in part to an adjustment in services as requested by some of the fee-for-service cities. Intergovernmental Revenues In general, intergovernmental revenues consist of Federal, State, and local reimbursements for disasters and mutual aid agreements. By their nature, these revenues tend to fluctuate the most as shown in Figure 4 below. As wildfires become more of a normal recurrence due to climate change, one can expect that these costs and (provided federal and state resources are not otherwise compromised) their corresponding reimbursements would increase in the future. Figure 4: Changes in Major CFPD Revenues Year-to-Year 60% 40% 20% 0% -20% -40% -60% 25 01-9002 11-0102 21-1102 31-2102 41-3102 51-4102 61-5102 71-6102 81-7102 91-8102 Taxes Charges for Services Intergovernmental Revenue All Other Revenue Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Measure FD (Implications of Failed March 2020 Ballot Measure) Following support of the Board of Supervisors, the CFPD placed Ballot Measure FD on the March 3, 2020 ballot to provide additional funding for CFPD. Measure FD was a proposed additional parcel tax to be assessed on taxable real property located within the CFPD territory, excluding the 12 fee-for-service cities, Palos Verdes Estates, and Lynwood. After evaluating the needs of the service area, CFPD sought needed additional funding to replace fire equipment and modernize its current technology and equipment. Additionally, the increase in wildfires and large jump in the number of paramedic calls has led to a strain on department resources, triggering the need for additional firefighters and upgraded equipment. If passed, Measure FD would have established a $0.06 per square foot parcel tax to upgrade fire equipment and hire more firefighters, according to CFPD. It was estimated that the ballot measure would have generated an additional $134 million annually for CFPD if approved. The Measure was required to receive two-thirds of the vote to pass and take effect. According to the County Registrar-Recorder/County Clerk, the Measure received less than 53 percent of votes in support and failed to meet the required 2/3 voter approval threshold. CFPD officials are currently working with the County CEO to refine a plan for addressing funding, equipment, and personnel needs; when ready, it will be discussed with the Board of Supervisors at public meetings. DISTRICT OPERATING EXPENDITURES Figure 5 shows the actual CFPD expenditures from 2016-17 through 2018-19, based on the County CAFR for these respective years. Total expenses amounted to $1.12 billion in 2016-17 increasing to $1.20 billion in 2018-19. For context, the 2019-20 budget estimates expenditures increasing to $1.29 billion. As shown in Figure 5, the overwhelming majority of CFPD expenditures are allocated to employee salaries and benefits. 26 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 5: Actual CFPD Expenditures based on Audited Financials Expenditures 2016-17 2017-18 2018-19 Salaries and Employee Benefits $ 945,408,000 $ 1,010,756,000 $ 1,063,262,000 Services and Supplies 143,996,000 138,117,000 133,602,000 Other Charges 4,884,000 6,977,000 6,163,000 Capital Assets 24,733,000 20,809,000 2,524,000 Total Expenditures $ 1,119,021,000 $ 1,176,659,000 $ 1,205,551,000 Deficiency of Revenues over Expenditures $ ( 43,002,000) $ ( 23,412,000) $ ( 44,045,000) Other Financing Sources (Uses) Sales of Capital Assets $ 263,000 $ 265,000 $ 115,000 Transfers In 9,669,000 2,202,000 39,272,000 Transfers Out (12,114,000) (3,500,000) (5,756,000) Appropriations for Contingencies - - - Changes in Fund Balance 45,785,000 3,090,000 30,163,000 Total Other Financing Sources (Uses) $ 43,603,000 $ 2,057,000 $ 63,794,000 Net Change in Fund Balance $ 601,000 $ ( 21,355,000) $ 19,749,000 Beginning Fund Balance $ 21,168,000 $ 21,769,000 $ 414,000 Ending Fund Balance $ 21,769,000 $ 414,000 $ 20,163,000 Source: Los Angeles County CAFR for Fiscal Years 2016-17, 2017-18, and 2018-19 Because the CFPD financial statements contained in the CAFR are not detailed by function or budget unit, RSG also analyzed the 2019-20 budget which contains details of operating cost and positions by function. Figure 6 below presents a breakdown of the 10 budget units; the following section describes the activities of each of these functional units. Figure 6: CFPD 2019-20 Budgeted Operating Expenses Fire Department Budget Detail Salaries & Supplies & Other Total Positions Benefits Services Emergency Services $ 902,166,000 $ 48,931,000 $ 7,652,000 $ 958,749,000 3,525 Emergency Medical Services Budget Unit 11,299,000 4,223,000 15,522,000 58 Lifeguard Budget Unit 54,386,000 3,048,000 - 57,434,000 294 Operations Budget Unit 836,481,000 41,660,000 7,652,000 885,793,000 3,173 Prevention Services 77,017,000 2,002,000 - 79,019,000 395 Health Hazardous Materials Budget Unit 23,497,000 605,000 - 24,102,000 144 Prevention Budget Unit 53,520,000 1,397,000 - 54,917,000 251 Business Services 116,715,000 105,660,000 26,156,000 248,531,000 775 Administrative Budget Unit 37,287,000 53,155,000 2,892,000 93,334,000 306 Executive Budget Unit 15,741,000 7,027,000 633,000 23,401,000 86 Financing Elements Budget Unit /1 - - 20,191,000 20,191,000 Leadership & Professional Standards Unit 18,383,000 3,712,000 - 22,095,000 90 Special Services Budget Unit 45,304,000 41,766,000 2,440,000 89,510,000 293 Total 2019-20 Budget $ 1,095,898,000 $ 156,593,000 $ 33,808,000 $ 1 ,286,299,000 4,695 Source: Consolidated Fire Protection District Fiscal Year 2019-20 Annual Budget and CFPD Staff 27 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 SERVICES PROVIDED BY CFPD On average, CFPD has responded to an average of 427,187 calls annually over the three-year period between 2016-2018. Approximately 76 percent of responses are for EMS incidents with the remaining 24 percent including fire incidents, lifeguard incidents, and other various incidents, which include false alarms, mutual aid, hazardous materials responses, and miscellaneous incidents. As outlined below, the County is responsible for providing a variety of services, as well as serving a variety of terrain and landscape. The County is extremely diverse in regard to terrain, building type, diversity, living conditions, and density. As a result, the CFPD must be equipped and staffed for any type of response. The Fire District Protection Law of 1987 (Health and Safety Code Section 13800 – 13970) (“Principal Act”) authorizes the formation of fire districts and the power to provide of certain services. Section 13862 of the Principal Act enumerates six (6) categories of these services, specifically: 1. Fire protection services. 2. Rescue services. 3. Emergency medical services. 4. Hazardous material emergency response services. 5. Ambulance services, pursuant to the Emergency Medical Services System and the Prehospital Emergency Medical Care Personnel Act, Health and Safety Code Division 2.5 (commencing with Section 1797). 6. Any other services relating to the protection of lives and property. Since 2000, additional services outside these six areas in the Principal Act (referred to as latent powers) may be provided upon application and approval by LAFCO pursuant to CKH Section 56824.10. In consultation with LAFCO staff, RSG understands that LAFCO has not initiated a resolution of application for any latent services by CFPD; this MSR thus evaluates services 28 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 provided by CFPD within the context of the Principal Act and identifies any services that would require LAFCO approval. Figure 7 provides an inventory of the services provided by CFPD and the corresponding Principal Act statutory reference that grants these powers to fire districts. Figure 7: CFPD Fire Services Under Principal Act (Health and Safety Code Section 13862) Principal Act Service Provided? Fire protection services. Yes Rescue services. Yes Emergency medical services. Yes Hazardous material emergency response services. Yes Ambulance services No Any other services relating to the protection of lives and property. Yes Other (Latent) Services None PRINCIPAL ACT SERVICES PROVIDED Fire and Rescue Fire and Rescue tasks involve, but are not limited to, commanding and coordinating responding units, operating fire equipment to extinguish fires, and searching for and rescuing trapped persons. CFPD adheres to the recognized standards set forth nationally by the NFPA and at a state level by CalFire. CFPD responded to an average of 8,385 fire incidents annually. The number of fire incidents accounts for approximately 2 percent of the total number of responses on an annual basis. The number of structure fires has been trending downward over previous decades as a result of better fire prevention and building activities; however, the number of wildfires has increased greatly in recent years. Emergency Medical Services (EMS) CFPD provides medical services to patients in the field who require immediate medical assistance and do not have the time or ability to get to a medical facility for treatment. The department 29 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 operates paramedic assessment engine companies and paramedic squads, each staffed with at least one paramedic firefighter who can perform Advanced Life Support (ALS) care for patients. CFPD does not transport any patients but will allow one of its responding paramedics to accompany the transporting ambulance company to the hospital in order to provide any ALS services that may not be provided by a Basic Life Support ambulance company. CFPD responds to an average of 323,981 EMS calls on an annual basis, which equates to approximately 76 percent of total responses by CFPD. Figure 8 below presents CFPD’s call volume in the areas of Fire and Rescue and Emergency Medical Services. Figure 8: EMS and Related Incidents Fire & Rescue, EMS 2016 2017 2018 Averages % Emergency Medical Responses 3 17,781 3 24,102 3 30,059 3 23,981 76% Fire Incidents 8 ,267 8 ,315 8 ,574 8 ,385 2% Other Incidents 1 8 1,585 6 1,268 5 4,239 6 5,697 15% Lifeguard Incidents 2 3 0,533 2 8,322 2 8,516 2 9,124 7% Total Incidents 4 38,166 4 22,007 4 21,388 4 27,187 100% Source: CFPD 2018 Statistical Summary 1) Includes false alarms, mutual aid provided, Haz-Mat, and miscellaneous incidents 2) Includes ocean rescues, medical calls, boat rescues (distress), missing persons, oxygen therapy, and drownings Health and Hazardous Materials / Other Services CFPD participates in activities aimed at protecting public health and the environment from improper handling, storage, and disposal of hazardous materials. Hazardous materials specialists regulate facilities deemed to be using hazardous materials through regular inspections and by responding to any emergency hazardous materials incidents. The Health and Hazardous Materials Division participates in six environmental regulatory programs, including Hazardous Waste Generators, Hazardous Materials Handlers, Aboveground Storage Tanks, California Accidental Release Facilities, Uniform Fire Code Hazardous Materials Management Plans, and Underground Storage Tanks. The hazardous materials division responds to an average of 650 hazardous materials emergencies annually. 30 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 9 presents CFPD’s call volume in what can be considered other areas, including Hazardous Materials, False Alarms, Mutual Aid Assistance, and Miscellaneous Incidents. Figure 9: Other CFPD Incidents Other Incidents 2016 2017 2018 Averages % False Alarms 2 5,439 2 3,370 2 3,887 2 4,232 37% Mutual Aid Provided 2 ,409 2 ,804 1 ,919 2 ,377 4% Haz-Mat 6 78 5 91 6 81 6 50 1% Misc. Incidents 5 3,059 3 5,403 2 7,752 3 8,738 59% Total Incidents 8 1,585 6 2,168 5 4,239 6 5,997 100% Source: CFPD 2018 Statistical Summary Education and Community Programs Section 13875 of the Principal Act permits a fire district to prepare and disseminate information and operate educational programs, including but not limited to those which help prevent fire, eliminate life hazards, and prepare for medical emergencies. Under this authority, CFPD works to connect with members of the community it protects through classes and other events to help educate the public about fire and medical risks and how people can effectively mitigate those risks. Some of these events are aimed at educating the public on what to do in the event of a fire, how to reduce the risks of starting fires, CPR training, and explorer programs to help educate and train future firefighters. Forestry and Fire Prevention Divisions Section 13879 of the Principal Act permits a fire district to abate hazardous weeds and rubbish pursuant to Health and Safety Code Section 14875-14922. The Forestry Division is primarily responsible for brush clearance and fuel modification programs. This division conducts over 40,000 brush clearance inspections annually to reduce the risk of wildfires. The Division is also responsible for annual review, revision, and implementation of the Los Angeles County Strategic Fire Plan, which is designed to minimize the costs and losses of 31 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 wildland fires by utilizing Geographic Information Systems (GIS) to identify communities at risk for wildland fires. The Fire Prevention Division focuses on educating the community about the benefits of proper safety practices and identifying and eliminating all types of hazardous conditions, which pose a threat to life, the environment, and property. The division is under the command of an assistant fire chief and is divided into five regional units. These units are responsible for conducting new construction field inspections and plan checking, hazardous material inspections, and investigating fires that have occurred. Pursuant to Sections 13870 through 13872.5, a fire district may issue a written order or citations to correct or eliminate fire or life hazards. Under this authority, the Fire Prevention Division completes plan check reviews and final inspections for new construction projects in high-fire- hazard areas ensuring adequate defensible space for residential and commercial structures. Personnel is also responsible for reviewing all environmental documents for CFPD ensuring compliance with the California Environmental Quality Act and monitors the implementation of the County’s Oak Tree Ordinance, an ordinance that protects oak trees throughout the County. Other Services Related to the Protection of Lives and Property - Lifeguards CFPD protects 72 miles of coastline, including 31 miles of sandy beaches, along the Pacific Coast of Los Angeles County and Catalina Island. On average, these beaches have accounted for an average annual beach attendance of 58,394,841 people. CFPD uses its workforce of 283 lifeguards to watch over beach attendees daily and provide them with services such as medical assistance, ocean rescues, distressed boat rescues, missing persons reports, and oxygen therapy. CFPD lifeguards respond to an average of 29,124 beach incidents annually, with 11,355 being ocean rescues, 15,979 medical responses, 418 distressed boat rescues, 1,131 missing persons, 238 oxygen therapy services, and 3 drownings. Figure 10 below presents CFPD’s call volume in the area of Lifeguard Services. 32 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 10: Lifeguard Incidents Lifeguard Incidents 2016 2017 2018 Averages % Ocean Rescues 1 2,956 9 ,866 1 1,242 1 1,355 39% Medical Calls 1 5,605 1 6,687 1 5,646 1 5,979 55% Boat Rescues (Distress) 4 73 3 58 4 23 4 18 1% Missing Persons 1 ,178 1 ,170 1 ,046 1 ,131 4% Oxygen Therapy 3 17 2 41 1 55 2 38 1% Drownings 4 - 4 3 0% Total Incidents 3 0,533 2 8,322 2 8,516 2 9,124 100% Beach Attendance 5 5,950,559 6 3,188,840 5 6,045,125 5 8,394,841 Source: CFPD 2018 Statistical Summary Other Services Related to the Protection of Lives and Property – Wildland Protection Wildland protection includes any fire suppression services in areas where there are no structures or residents and the terrain is mostly brush and other vegetation. With the increase in wildfires in California, wildland protection has received increased attention to mitigate the fire threat to small areas before the fire spreads to engulf more area and begin to threaten structures and the lives of residents. CFPD provides wildland protection aid to other cities and counties around California when there is a large-scale wildfire that requires the assistance of a large firefighting force. There has been an average of 26,239 acres burned over the last three years in Los Angeles County. This figure has been trending upward recently with a total of 63,648 acres burned in 2018 alone. CFPD also staffs fire suppression camps that are responsible for wildfire suppression, maintenance of fire roads, and other miscellaneous projects concerned with wildfires. Effective fire management entails the coordination among Federal, State, and local agencies. CalFire acts as the lead agency at the State level and has established Fire Hazard Severity Zones. These are ranked as Moderate, High and Very High. Much of the County is considered a Local Responsibility Area, meaning that fire services are carried out at the local level by a city or special district. The Angeles Forest is in the County and it is a Federal responsibility. The CFPD has structural fire protection responsibility in the forest. 33 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 As shown on Appendix 3, CalFire is responsible for oversight of several areas within the County, known as State Responsibility Areas (SRAs), but contracts with CFPD for service within its jurisdiction. This is the case for areas surrounding the Santa Monica Mountain Range, the Angeles National Forest and the Los Padres National Forest. Specific to this MSR, the City of West Covina and the City of La Verne contain areas noted as Very High Fire Hazard Severity according to CalFire. Figure 11 presents CFPD’s statistics in the areas of fire damage. Note that these figures include all types of fire damage and are not specific to Wildland Protection. Figure 11: Wildfire and Structural Fire Incidents Fire Statistics 2016 2017 2018 Averages Acreage Burned 6,396 8,672 63,648 26,239 Fire Loss in Dollars Property or Structure $ 78,290,853 $ 93,901,408 $ 290,003,114 $ 154,065,125 Vehicle Contents 18,064,728 18,675,078 22,270,615 19,670,140 Miscellaneous Property 22,955,959 1,468,072 1,412,559 8,612,197 Total Fire Loss $ 119,311,540 $ 114,044,558 $ 313,686,288 $ 182,347,462 Source: CFPD 2018 Statistical Summary Other Services Related to the Protection of Lives and Property – Air Support CFPD maintains a fleet of eight helicopters and has access to contract aircraft that are available for leases during the wildfire season. These helicopters are used for paramedic transports in extreme situations where medical transport is needed immediately, hoist rescues, and wildland firefighting where the helicopters are used for collecting and dropping water and foam on wildfires. In 2018, CFPD’s fleet of helicopters responded to 295 fires, provided 692 EMS transports, performed 128 hoist rescues, and dropped a total of 2,416,300 gallons of either foam or water. Other Services Related to the Protection of Lives and Property – Dispatch CFPD provides dispatch services for fire units from CFPD’s Fire Command and Control Facility located at 1320 North Eastern Avenue, Los Angeles. Every dispatch staff member is a trained 34 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Emergency Medical Dispatcher that is trained to provide lifesaving instructions over the phone while callers wait for the arrival of emergency units. All emergency vehicles are equipped with mobile data computers and automatic vehicle locators that allow for efficient communication and allocation of emergency units. Dispatch is an important division of the department as it plays an integral part in the department being compliant with NFPA response time standards. PRINCIPAL ACT SERVICES NOT PROVIDED Based on RSG’s review and as mentioned on page 7, the CFPD does not provide ambulance services but instead relies on other agencies to perform these services, specifically DHS and incorporated cities. LATENT SERVICES Based on RSG’s review of CFPD, the district does not provide any services outside the Principal Act authority and therefore no resolution of application for latent services is required. 35 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 CFPD PERFORMANCE STANDARDS ISO RATING AMONG CFPD’S NINE DIVISIONS As described on page 10, ISO provides ratings on a scale of 1 to 10 (with 1 being highest) to reflect the relative responsiveness and effectiveness of fire service, water supply, and other essential resources to suppress fires. On May 11, 2018, the Fire Chief issued a memorandum to each of the County Supervisors reporting on the most recent ISO rating for the nine (9) Divisions of CFPD. A summary of the report findings is presented in Figure 12 below and shows that all but one of the divisions (Division 2) achieved a second-highest rating of 2. Improvements in several Divisions are noted between the prior rating (1998). Figure 12: CFPD ISO Ratings by Division, 2017 Prior ISO New ISO Division County Unincorporated Area, Plus these Cities Class (1998) Class (2017) Carson, Gardena, Hawthorne, Lawndale, Lomita, Palos Verdes Division 1 3 2 Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates Azusa, Baldwin Park, Bradbury, Claremont, Covina, Duarte, Division 2 3 3 Glendora, Hermosa Beach, San Dimas Division 3 La Canada Flintridge, Santa Clarita 4 2 Artesia, Bellflower, Cerritors, Hawaiian Gardens, Lakewood, La Division 4 2 2 Mirada, Norwalk, Paramount, Pico Rivera, Signal Hill, Whittier Division 5 Lancaster, Palmdale 2 2 Cudahy, Huntington Park, Inglewood, Lynwood, Maywood, South Division 6 2 2 Gate Agoura Hills, Calabasas, Hidden Hills, Malibu, West Hollywood, Division 7 4 2 Westlake Village Division 8 Diamond Bar, Irwindale, La Puente, Pomona, Walnut 2 2 Bell, El Monte, Bell Gardens, Commerce, Rosemead, South El Division 9 3 2 Monte, Temple City Source: Chief Daryl L. Osby memorandum to Board of Supervisors dated May 11, 2018. 36 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 RESPONSE TIME STANDARDS AMONG CFPD STATIONS CFPD has established internal standards for response to fire and EMS calls for service based on the population density, road network, and number of incidents surrounding each station. These densities are considered rural for a population density of less than 500 persons per square mile, suburban for a population density between 500 and 1,000 persons per square mile, and urban for a population density in excess of 1,000 persons per square mile. The CFPD standards either comply with or are more restrictive than the response-time standards established by NFPA, as described on page 10 of this MSR. RSG analyzed these standards for all CFPD stations within their jurisdiction. While CFPD covers all types of territory including rural, suburban and urban, with nearly 4.3 million residents and an area of 3,298 square miles, the overall population density of the territory is approximately 1,296 persons per square mile, which is effectively an urban standard across the entire CFPD territory. Appendix 3 presents a map of the 174 CFPD fire stations as well as the surrounding area within CFPD’s drive time standard of 7-minutes from the station to a call for emergency medical service. Based on this data, 92 percent of the CFPD’s 4.3 million residents live within 7-minutes of a fire station. While Appendix 3 may appear to show a much smaller portion of the area served by a local fire station, approximately one-quarter of the CFPD territory falls within State Responsibility Area and is very rural in nature. 37 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 FUTURE EXPANSION OF SPHERE TO ADDITIONAL CITIES In recent years, there has been a dialogue to shift fire services to a regional approach rather than having individual cities be responsible for operating and maintaining effective fire and medical response services throughout California. The primary motivations for a city to abandon its own fire department in favor of a regional entity include resource availability, increased safety and response times, training resources for staff, joint purchasing, potential cost savings, and reduced personnel related obligations and reduced pension obligations a city might currently be facing or will face in the future. The regional approach model is not specific to fire services, and can be seen by police or sheriff operations, park and recreation districts, and water agencies. Some of the perceived drawback of the regional model include the loss of oversight, the loss of cost control measures, and the overall equity for funding a regional model. In addition, some may express the concern that services such as plan checks or some of the more administrative aspects of a fire department may not be delivered at the current level. This section of the MSR evaluates the potential of expanding the CFPD SOI to include six smaller Los Angeles County cities, which could increase the number of fee-for-service jurisdictions from the current total of 12, 11 by annexation and 1 by contract, to as many as 18. JURISDICTIONS ANALYZED Within the last approximately 18 months, 6 cities have expressed interest or considered an evaluation of annexing fire services to the CFPD. This includes the cities of La Verne, Manhattan Beach, Redondo Beach, San Gabriel, Vernon, and West Covina. As part of this evaluation process, CFPD undertook an internal feasibility study for each possible annexation to consider the implications of annexation. LA VERNE La Verne is a mixed-use city that is primarily residential, with an estimated 2019 population of 33,201 and 12,168 housing units. La Verne is located northeast of downtown Los Angles and is 38 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 situated at the base of the San Gabriel Mountains, which brings an increased risk of wildfires, and also has State Route 210 that runs through the City and the Brackett Field Airport, which both bring the potential for increased call volume. The City spans a total area of 8.43 square miles and is bordered by the City of San Dimas to the west, by the Cities of Claremont and Pomona to the east, La Verne Fire Department in Brief: by Pomona to the south, and by the unincorporated areas • 26% of General Fund Budget of the San Gabriel Mountains to the north. • $278 per capita for Fire City Fire Department Description services • ISO Rating of 3 The City of La Verne was incorporated in 1906 and the La Verne Fire Department was formed in 1911 as a volunteer department and began to transform to into a professional fire department in the 1950’s. La Verne participates in mutual aid agreements with both the CFPD and the United States Forest Service. The Department is administered by a fire chief who oversees the department’s fire operations division and fire prevention division. The fire chief is assisted by three battalion chiefs who help with day-to-day fire operations and a fire marshal who oversees the fire prevention division. The department currently has an ISO fire protection class rating of 3. La Verne Fire Department is divided into three divisions: fire operations, fire prevention, and training. The department currently staffs three fire stations, fire prevention division, and training division with 36 full-time employees, 34 sworn and two non-sworn employees. The Department also has an apprentice firefighter program with approximately 15 personnel working as the fourth member on the engine company. The Department provides its services out of three fire stations. Station 61, located at 2061 Third Street, serves as the department’s headquarters and houses four fire apparatus, one paramedic assessment engine, one quint that is cross staffed by engine staff, one reserve engine, and one rescue ambulance that is staffed daily by five uniformed personnel. This station also houses one battalion chief, the deputy fire marshal, and the administrative offices. The Fire Department 39 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 shares this facility with the La Verne Police Department. Station 62, located at 4785 Wheeler Avenue, houses one paramedic assessment engine that is staffed daily by 3 uniformed personnel. Station 63, located at 5100 Esperanza Drive, houses one rescue ambulance and is staffed daily by 2 uniformed personnel. Fire Department Operating Budget The City of La Verne Fire Department has an operating budget of approximately $9.2 million in Fiscal Year 2019-20. Most of the budget is reserved for salaries and benefits equating to roughly $8.2 million of the total budget. Figure 13 shows a steady increase in the Fire Department budget for Fiscal Years 2017-18, 2018-19 and 2019-20. Based on a recent feasibility study, CFPD has two potential options to staff La Verne’s stations if the City decided to annex into CFPD. Option A is estimated to cost La Verne $8,912,609 and option B is estimated to cost $8,752,961. Figure 13: Fire Department Expenditures, La Verne Expenditures 2017-181 2018-192 2019-202 Salaries and Employee Benefits $ 7 ,486,053 $ 7 ,710,982 $ 8 ,165,257 Other Operating Costs 7 82,100 8 77,369 1 ,077,400 Total Expenditures $ 8 ,268,153 $ 8 ,588,351 $ 9 ,242,657 Source: City of La Verne Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual expenditures by La Verne for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year As shown on Figure 14, the department is almost primarily funded through the General Fund with an estimated $7.3 million, and the remaining budgeted amount being recognized in the Paramedic Fund and the Proposition 172/Public Safety Fund. Figure 14: Fire Department Revenues, La Verne Revenues 2017-181 2018-192 2019-202 General Fund $ 7,331,653 $ 7,627,321 $ 8,242,757 Paramedic Fund 790,500 815,000 847,900 Proposition 172/Public Safety Fund 146,000 146,000 152,000 Total Revenues $ 8,268,153 $ 8,588,321 $ 9,242,657 Source: City of La Verne Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual revenues received by La Verne for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year 40 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Future Growth in City Figure 15 shows actual population of La Verne for 2005, 2010, and 2015 and the estimated population growth that the City can expect through 2035. In order to forecast the future population, RSG looked at the population data provided by DOF as of January 1, of each year and Based on data received from the American Community Survey (“ACS”) ranging from 2012- 2016, the median household income for La Verne is estimated to be $78,385 annually. Figure 15: Population Forecast, La Verne Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Population 33,131 33,127 33,220 33,239 33,201 33,284 33,702 34,126 34,554 California is amid a housing crisis and there is a desperate need for the development of affordable housing units. It is a state mandate for local governments to build a pre-determined number of affordable units and this is referred to as the Housing Element and Regional Housing Needs Allocation (“RHNA”). As a part of RHNA, the California Department of Housing and Community Development (“HCD”) determines the number of affordable units that need to be built in every city. RHNA numbers are established in cycles. The upcoming 6th cycle will run from October 2021 through October 2029. In the upcoming cycle, HCD has determined that La Verne will need to build 1,269 new affordable units. La Verne currently has an estimated 12,168 housing units as of 2019 and the number of housing units will increase by approximately 10 percent by 2029 as a result of the 6th Cycle allocation. CFPD Annexation Implications CFPD provides fire suppression and emergency medical services to all the bordering cities and surrounding unincorporated areas, including the unincorporated portions of the City’s Sphere of Influence. Under Option A, Station 61 would staff an engine and a paramedic squad with 5 uniformed personnel, Station 62 would house one paramedic assessment engine staffed by 3 personnel, and CFPD would recommend that a private ambulance company staff a rescue ambulance that would be housed at Station 63. Option B would provide the same number of 41 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 staffing as Option A, but there would be no paramedic assessment ability at station 62 as it would only house an engine rather than a paramedic assessment engine. CFPD currently staffs 16 fire stations within 5 miles of La Verne’s borders and these stations house 25 fire apparatus that are staffed daily by 72 uniformed personnel. If La Verne were to annex into CFPD’s SOI, CFPD would be able to draw upon a total of 18 fire stations, 28 fire apparatus, and 80 uniformed personnel to respond to incidents in La Verne and the surrounding areas. The private ambulance company would also be available to assist with any medical transports. An advantage to expanding the SOI and annexing into the CFPD may be a reduction in the number of fire stations if redundancy is evident based on the location of nearby CFPD stations that may be within a CFPDs response-times, such as 7-minutes for an EMS call for service. Without taking into account other factors such as station capacity, calls for service, and other factors, 91 percent of La Verne’s residents are within a 7-minute EMS response time distance of an existing CFPD fire station, as shown on Figure 16. 42 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 16: CFPD Serviceable Areas, La Verne Area 43 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 MANHATTAN BEACH Manhattan Beach is a mixed-use, primarily residential, with an estimated 2019 population of 35,922 and 15,018 housing units. The City has two miles of beachfront along with a pier that attracts many visitors to the City, especially during the summer months. The City of Manhattan Beach is in the southwest area of Los Angeles County. The City spans a total of 3.88 square miles and is bordered by the City of El Segundo to the north, the Cities of Hawthorne and Redondo Beach make up the eastern border, Redondo Beach and Hermosa Beach border the City to the south, and the western border of the City is made up of a 2 mile stretch of beachfront along the Pacific Ocean. The Cities of Hawthorne and Hermosa Beach are both border cities that have fire and emergency medical services that are currently being provided by CFPD and the Cities of El Segundo and Redondo Beach both provide their own fire and emergency medical services to their residents. Manhattan Beach’s SOI does not include any unincorporated areas. City Fire Department Description Manhattan Beach Fire Department in Brief: The City of Manhattan Beach was incorporated in 1912, • 12% of General Fund Budget and the Manhattan Beach Fire Department was officially • $412 per capita for Fire formed in 1923. The department began as a volunteer services fire department that was run by a fire chief and has now • ISO Rating of 2 grown into a professional fire department that has an operations division providing fire suppression and emergency medical services, and a fire prevention division. The fire chief oversees all department activities with fire operations being overseen by three battalion chiefs and the fire prevention division is overseen by the fire marshal. The department currently has an ISO fire protection class rating of 2. The department is run by a fire chief who oversees all fire department operations. The fire department currently staffs two fire stations with 31 full-time employees, 30 sworn and 1 non- sworn, and two part-time employees for a total of 33 employees. 44 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 The Department provides its services out of two fire stations. Station 1, located at 400 15th Street, currently houses two firefighting apparatus and one command vehicle. This station also serves as the fire department headquarters and the facility is shared with the Manhattan Beach Police Department. Station 2 located at 1400 Manhattan Beach Boulevard, houses one firefighting apparatus. Station 2 is currently undergoing a remodel to modernize the facility and make it suitable to house female firefighters; construction is expected to be finished in fall 2020. Manhattan Beach is part of the South Bay Regional Public Communications Authority that provides dispatching services to both the Manhattan Beach Fire Department and Police Department. The department has an automatic aid agreement with the Redondo Beach Fire Department and CFPD and has mutual apparatus and equipment loan agreements with the Redondo Beach Fire Department and the El Segundo Fire Department. Fire Department Operating Budget The City of Manhattan Beach Fire Department has an operating budget of approximately $14.8 million in Fiscal Year 2019-20. Most of the budget is reserved for salaries and benefits equating to roughly $11.8 million of the total budget. Figure 17 shows the steady increase in the Fire Department budget for Fiscal Years 2017-18, 2018-19, 2019-20. Based on a recent feasibility study, it is estimated that CFPD can carry out services at a cost of $10,661,614 annually. Figure 17: Fire Department Expenditures, Manhattan Beach Expenditures 2017-181 2018-192 2019-202 Salaries and Employee Benefits $ 1 0,755,486 $ 1 1,617,653 $ 1 1,830,139 Materials and Utilities 1 ,148,997 1 ,434,818 1 ,568,764 Internal Services 6 25,691 1 ,007,717 1 ,007,476 Capital Projects and Equipment 3 6,678 1 25,788 1 0,000 Debt Service 3 84,186 3 86,332 3 86,219 Total Expenditures $ 1 2,951,038 $ 1 4,572,308 $ 1 4,802,598 Source: City of Manhattan Beach Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual expenditures by Manhattan Beach for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year 45 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 As shown on Figure 18, the Department is almost exclusively funded through the General Fund with an estimated $14.4 million, and the remaining budgeted amount being recognized from the City’s Capital Improvement Fund. Figure 18: Fire Department Revenues, Manhattan Beach Revenues 2017-181 2018-192 2019-202 General Fund $ 12,566,852 $ 14,185,976 $ 14,416,379 Capital Improvement Fund 384,186 386,332 386,219 Total Revenues $ 12,951,038 $ 14,572,308 $ 14,802,598 Source: City of Manhattan Beach Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual revenues received by Manhattan Beach for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year Future Growth in City Figure 19 shows actual population of Manhattan Beach for 2005, 2010, and 2015 and the estimated population growth that the City can expect through 2035. In order to forecast the future population, RSG looked at the population data provided by DOF as of January 1, of each year and calculated the compound annual growth rate from 2000 through 2019. The annual growth rate for Manhattan Beach was 0.31% and this growth rate was used to project the future populations. Manhattan Beach has experienced slow, steady growth over the past decade, with a few small decreases, and this trend can be expected to continue through 2035. Based on data received from ACS ranging from 2012-16, the median household income for Manhattan Beach is estimated to be $144,868 annually. In the upcoming RHNA cycle, HCD has determined that Manhattan Beach will need to build 791 new affordable units. Manhattan Beach currently has an estimated 15,018 housing units as of 2019 and the number of housing units will increase by approximately 5% by 2029 as a result of the 6th Cycle allocation. Figure 19: Population Forecast, Manhattan Beach Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Population 35,952 35,900 36,066 36,010 35,922 36,033 36,595 37,166 37,745 46 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 CFPD Annexation Implications CFPD currently provides fire suppression and emergency medical services to the Cities of Hermosa Beach to the south and Hawthorne to the northeast. The remaining border cities are served by their respective local city fire department. Under the staffing proposal from the feasibility completed by CFPD, Station 1 would house a quint and a paramedic squad staffed by 6 uniformed personnel, and Station 2 would house a paramedic assessment engine staffed by 3 personnel. The battalion chief that is currently assigned to station 1 would no longer be stationed there, and the chief officer position would be staffed out of CFPD Station 161 in Hawthorne. CFPD currently staffs 8 stations within 5 miles of Manhattan Beach’s borders and these stations house 12 fire apparatus and 35 daily personnel. If Manhattan Beach were to annex in, CFPD would be able to draw upon 10 fire stations, 15 fire apparatus, and 44 daily staff to respond to incidents in the greater Manhattan Beach region. As shown on Figure 20, much of Manhattan Beach lies within 7-minutes of an existing CFPD station. Based on RSG’s analysis of population in the area, approximately 93 percent of Manhattan Beach residents would be within this EMS standard response time area. 47 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 20: CFPD Serviceable Areas, Manhattan Beach Area 48 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 REDONDO BEACH Redondo Beach is a mixed-use city, primarily residential, with an estimated 2019 population of 68,473 and 31,101 housing units. The City has a stretch of sandy beaches and a pier that attracts many visitors daily, especially during the summer months. The City of Redondo Beach is in the southwestern area of Los Angeles County. Redondo Beach is partially a coastal city that spans a total area of 6.3 square miles. The City is bordered by the Cities of Hawthorne and Lawndale to the north, the Cities of Lawndale and Torrance to the east, Torrance to the south, and the western border of the City is made up of the Pacific Ocean, the City of Hermosa Beach, and the City of Manhattan Beach. The bordering cities of Hawthorne, Hermosa Beach, and Lawndale all receive fire and emergency medical services from CFPD, while Torrance and Manhattan Beach currently provide fire and emergency medical services directly to their residents. Redondo Beach’s SOI does not include any unincorporated areas. City Fire Department Description Redondo Beach Fire Department in Brief: The City of Redondo Beach was incorporated in 1892 • 24% of General Fund Budget and the Redondo Beach Fire Department was developed • $412 per capita for Fire the same year as a volunteer fire department. The services department is run by a fire chief who oversees the • ISO Rating of 2 departments fire operations division, fire prevention division, and a community emergency response team. The fire chief is assisted with running the day-to-day operations by three division chiefs. The Redondo Beach Fire Department currently has an ISO fire protection class rating of 2. The department currently staffs three fire stations and additional divisions with 66 full-time employees, 63 sworn employees, and one part-time employee. The Department provides its services out of three fire stations. Station 1, located at 401 South Broadway, houses three fire apparatus and one command vehicle with a total daily staffing of 10. Station 2, located at 2400 Grant Avenue, houses three fire apparatus staffed daily by eight 49 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 employees. Station 3, located at 280 Marina Way, opened in 1980. A new portion of the station was built in 2012 and now houses a harbor patrol boat and a paramedic squad, with both units being cross staffed daily by two employees. The Redondo Beach Police Department staffs and operates the City’s dispatch center that provides call-taking and dispatch services 24 hours a day for both the Police and Fire departments. The department has been a part of the Interoperability Network of the South Bay (“INSB”) that provides radio system coverage since 2016. The INSB provides radio system coverage to the cities of El Segundo, Gardena, Hawthorne, Hermosa Beach, Manhattan Beach, Redondo Beach, and Torrance. The department is also a part of automatic aid agreements with El Segundo, Manhattan Beach, and Torrance. Fire Station 3 is a shared facility that also acts as a station for CFPD’s lifeguard division. Fire Department Operating Budget The City of Redondo Beach Fire Department has an operating budget of approximately $23.3 million in Fiscal Year 2019-20. Most of this budget is reserved for salaries and benefits equating to roughly $17.7 million of the total budget. Figure 21 below shows the steady increase in the Fire Department budget for Fiscal Years 2017-18, 2018-19 and 2019-20. Based on a recent feasibility study, it is estimated that CFPD can carry out services at a cost of $15,011,749 annually under Option A and $18,161,632 annually under Option B. The additional cost of Option B is a result of CFPD staffing one additional paramedic assessment engine at Station 2. Figure 21: Fire Department Expenditures, Redondo Beach Expenditures 2017-181 2018-192 2019-202 Salaries and Employee Benefits $ 1 5,357,182 $ 1 6,527,193 $ 1 7,686,514 Maintenance and Operations 6 06,945 7 02,594 5 48,585 Internal Service Fund Allocations 4 ,949,812 4 ,875,067 5 ,095,865 Capital Outlay 2 96,904 - - Total Expenditures $ 2 1,210,843 $ 2 2,104,854 $ 2 3,330,964 Source: City of Redondo Beach Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual expenditures by Redondo Beach for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year 50 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 As shown on Figure 22 department is primarily funded through the General Fund with an estimated $18.5 million, Harbor Tidelines in the amount of $2.2 million, and the remaining budgeted amount being recognized from Intergovernmental Grants, Disaster Recovery, Harbor Uplands, and Solid Waste Funds. Figure 22: Fire Department Revenues, Redondo Beach Revenues 2017-181 2018-192 2019-202 General Fund $ 18,561,492 $ 19,587,228 $ 20,650,249 Intergovernmental Grants 48,000 48,000 48,000 Disaster Recovery 307,632 17,060 17,060 Harbor Tidelands 2,215,038 2,051,970 2,211,757 Harbor Uplands - 175,659 184,445 Solid Waste 78,681 224,937 219,453 Total Revenues $ 21,210,843 $ 22,104,854 $ 23,330,964 Source: City of Redondo Beach Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual revenues received by Redondo Beach for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year Future Growth in City Figure 23 shows actual population of Redondo Beach for 2005, 2010, and 2015 and the estimated population growth that the City can expect through 2035. In order to forecast the future population, RSG looked at the population data provided by DOF as of January 1, of each year and calculated the compound annual growth rate from 2000 through 2019. The annual growth rate for Redondo Beach was 0.42% and this growth rate was used to project the future populations. Redondo Beach has experienced slow, steady growth over the past decade, with a few small decreases, and this trend can be expected to continue through 2035. Based on data received from ACS ranging from 2012-16, the median household income for Redondo Beach is estimated to be $103,782 annually. Figure 23: Population Forecast, Redondo Beach Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Population 68,463 68,424 68,438 68,361 68,473 68,761 70,217 71,704 73,223 51 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 In the upcoming RHNA cycle, HCD has determined that Redondo Beach will need to build 2,591 new affordable units. Redondo Beach currently has an estimated 30,101 housing units as of 2019 and the number of housing units will increase by approximately 8% by 2029 as a result of the 6th Cycle allocation. CFPD Annexation Implications CFPD provides fire suppression and emergency medical services to the bordering Cities of Hermosa Beach and Hawthorne. The rest of the bordering cities receive fire services from city fire departments. CFPD has two options from its current proposal to provide fire services to Redondo Beach. Option A would assign an engine, a quint, and a paramedic squad with 9 personnel to Station 1, an engine and paramedic squad with 5 personnel to Station 2, and a harbor patrol squad with 2 personnel at Station 3. This would allow for a daily staff of 16 uniformed personnel. Option B would have the same staffing levels as Option A but would assign an additional engine to Station 2 with 3 personnel to bring the daily staffing of that station to 8 personnel and a total daily staffing of 19 personnel. Both CFPD proposals staff paramedics on each unit. CFPD currently staffs 14 stations within 5 miles of Redondo Beach’s border that house a total of 24 fire apparatus with a daily staff of 69 uniformed personnel. CFPD would be able to draw upon a total of 17 fire stations, 30 fire apparatus, and a daily staff of 85 personnel if Redondo Beach were to annex into CFPD and choose Option A to staff the Redondo Beach stations. Under Option B, CFPD would be able to call on the same 17 stations but would be able to use an additional engine assigned to Redondo Beach’s Station 3 for a total of 31 apparatus and a staff of 88 to respond to incidents. Approximately 91 percent of Redondo Beach residents, like their counterparts in Manhattan Beach and Hermosa Beach, live within 7-minutes of an existing CFPD fire station, as shown on Figure 24. 52 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 24: CFPD Serviceable Areas, Redondo Beach Area 53 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 SAN GABRIEL San Gabriel is a primarily residential city that has an estimated 2019 population of 41,178 and 13,566 housing units. The City of San Gabriel is located to the northwest of downtown Los Angeles. San Gabriel spans a total of 4.13 square miles. The City is bordered to the north by the City of San Marino, bordered by unincorporated areas of the County and the City of Rosemead to the east, bordered by Rosemead to the south, and is bordered by the City of Alhambra to the west. Interstate 10 runs along the southern border of San Gabriel. Rosemead and the unincorporated areas that border the east side of San Gabriel currently have fire and emergency medical services provided by CFPD and the Cities of Alhambra and San Marino both provide fire and emergency medical services directly to their residents. San Gabriel is a mixed-use community with much of the city being residential. The City of San Gabriel’s SOI includes unincorporated areas located to the northeast of the city’s official boundary; however, it must be noted that CFPD provides fire services to all unincorporated areas of the County. City Fire Department Description San Gabriel Fire Department The fire department is run by a fire chief who oversees the in Brief: department’s fire operations division, fire prevention division, • 22% of General Fund Budget and ambulance services. The fire chief is supported by three battalion chiefs who support the day-to-day operations of the • $219 per capita for Fire services fire department. The City of San Gabriel currently has an ISO • ISO Rating of 3 fire protection class rating of 3. The department currently staffs its two fire stations with a total of 36 full-time employees; 34 employees are sworn. The department provides its services out of two fire stations. Station 51, located at 1303 South Del Mar Avenue, houses two fire apparatus and one command vehicle with a daily staffing of six uniformed personnel. This station also has an emergency operations center and an apparatus/equipment storage building that can accommodate four engines. Station 52, located at 115 North Del Mar Avenue, houses one fire apparatus and a daily uniformed staff of 54 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 three. Both stations are currently undergoing renovations to accommodate a mixed gender workforce. The San Gabriel Fire Department currently receives dispatching services from the Verdugo Fire Communications Center, which provides fire and EMS dispatch to 12 area fire departments. The department has automatic aid agreements with the 12 fire departments that also receive dispatch services from the Verdugo Fire Communications Center. San Gabriel makes its specialty units such as hazardous material and urban search and rescue apparatus on an as needed basis. Fire Department Operating Budget The City of San Gabriel Fire Department has an operating budget of approximately $9.0 million in Fiscal Year 2019-20. Most of this budget is reserved for salaries and benefits equating to roughly $7.2 million of the total budget. Figure 25 shows the steady increase in the fire department budget for Fiscal Years 2017-18, 2018-19 and 2019-20. Based on a recent feasibility study, it is estimated that CFPD can carry out services at a cost of $6,835,199 annually under Option A or $6,737,060 annually under Option B. The difference between these two amounts is that Option A staffs a Paramedic Assessment Engine at Station 52 and only staffs an Engine under Option B. Figure 25: Fire Department Expenditures, San Gabriel Expenditures 2017-181 2018-192 2019-202 Salaries and Employee Benefits $ 6 ,760,317 $ 6 ,915,029 $ 7 ,242,180 Operations 3 73,858 3 78,660 3 25,540 Contractual Services 3 47,931 3 14,765 3 16,950 Utilities 8 6,500 9 6,918 8 9,310 Allocations 1 ,083,226 8 96,226 1 ,034,580 Debt Service - - 7 ,700 Total Expenditures $ 8 ,651,832 $ 8 ,601,598 $ 9 ,016,260 Source: City of San Gabriel Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual expenditures by San Gabriel for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year The department is solely funded through the General Fund with an estimated $9.0 million as of 2019-20, as shown in Figure 26. 55 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 26: Fire Department Revenues, San Gabriel Revenues 2017-181 2018-192 2019-202 General Fund $ 8,651,832 $ 8,601,598 $ 9,016,260 Source: City of San Gabriel Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual revenues received by San Gabriel for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year Future Growth in City Figure 27 shows actual population of San Gabriel for 2005, 2010, and 2015 and the estimated population growth that the City can expect through 2035. In order to forecast the future population, RSG looked at the population data provided by DOF as of January 1, of each year and calculated the compound annual growth rate from 2000 through 2019. The annual growth rate for San Gabriel was 0.18 percent and this growth rate was used to project the future populations. San Gabriel has experienced slow, steady growth over the past decade, with a few small decreases, and this trend can be expected to continue through 2035. Based on data received from ACS ranging from 2012-16, the median household income for San Gabriel is estimated to be $54,015 annually. Figure 27: Population Forecast, San Gabriel Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Population 40,570 40,568 41,223 41,270 41,178 41,252 41,625 42,001 42,380 In the upcoming RHNA cycle, HCD has determined that San Gabriel will need to build 3,010 new affordable units. San Gabriel currently has an estimated 13,566 housing units as of 2019 and the number of housing units will increase by approximately 22 percent by 2029 as a result of the 6th Cycle allocation. CFPD Annexation Implications CFPD provides fire suppression and emergency medical services to the City of Rosemead to the south, Temple City abutting the eastern border, and the unincorporated areas in the eastern portion of the City of San Gabriel’s SOI. The bordering Cities of Alhambra to the west and San 56 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Marino to the north both currently receive in house services from each city’s respective fire department. CFPD currently has 2 options for San Gabriel to choose from if it were to annex into CFPD’s SOI. Option A calls for station 51 to house a paramedic assessment engine and a paramedic squad with 5 uniformed personnel and station 52 would house a paramedic assessment engine with a daily staff of 3. Both stations would have a daily staff of 8. Option B calls for the same staffing levels for Station 51 that were proposed under Option A but would staff Station 52 with an engine rather than a paramedic assessment engine. Option B would provide the same daily staffing level as Option A with 8. CFPD currently staffs 11 fire stations within 5 miles of San Gabriel’s city boundary that house 15 fire apparatus and 47 uniformed personnel. Under the proposed staffing levels from the feasibility study prepared for San Gabriel, CFPD would be able to draw from a total of 13 fire stations, 18 fire apparatus, and a daily staff of 55 to respond to incidents around San Gabriel. RSG estimates that approximately 85 percent of San Gabriel residents live within a 7-minute response time area of an existing, nearby CFPD station, as shown on Figure 28. 57 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 28: CFPD Serviceable Areas, San Gabriel Area 58 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 VERNON The City of Vernon is largely industrial with a very small residential population estimated at 301 residents and 75 existing housing units. The City houses an estimated 1,800 businesses that employ an estimated workforce of 55,000 people. Vernon is home to many industries, including manufacturing, storage warehouses, food distribution facilities, clothing design and distribution, truck repair facilities, railroad terminals and storage yards, freight delivery sites, office buildings, and restaurants. The City of Vernon is located southeast of downtown Los Angeles. Vernon spans a total of 5.2 square miles. The City is bordered to the north and to the west by the City of Los Angeles, bordered by the Cities of Bell and Commerce to the east, and bordered by the Cities of Huntington Park and Maywood to the south. The City is almost entirely industrial and commercial with a very small residential population. Interstate 710 is located to the east of the City and directly runs through the eastern portion of the City boundary. The bordering Cities of Bell, Commerce, Huntington Park, and Maywood all have fire and emergency medical services provided by CFPD, and the City of Los Angeles provides its own fire and emergency medical services directly to its residents. Vernon’s SOI includes a small unincorporated island located in the center of the City located south of Bandini Bouvard along Downey Road to Exchange Road, as well as another unincorporated island further south along Downey Road, between Fruitland and Slauson Avenues, adjacent to a border it shares with the City of Maywood. Vernon Fire Department in City Fire Department Description Brief: The City of Vernon was incorporated in 1905 as the first • 29% of General Fund Budget exclusively industrial city in the southwestern United States. The Vernon Fire Department officially commenced operation • $58,000 per capita for Fire services in 1926. The department is administered by a fire chief who • ISO Rating of 1 oversees all department activities including the fire operations division, training division, and fire prevention division. The fire 59 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 chief is assisted in the day-to-day administration by an assistant fire chief and three battalion chiefs. The City of Vernon currently has an ISO fire protection class rating of one. The Vernon Fire Department currently has a staff of 50 uniformed personnel, including the fire chief (who is currently in a temporary role, and who would not transfer to CFPD if Vernon annex into CFPD,) and 2 non-uniformed personnel. The department provides its services out of four fire stations. Station 76, located at 3375 Fruitland Avenue, houses one fire apparatus and one command vehicle. The department staffs its stations in 3 shifts, A, B, and C; and the command vehicle is only staffed with a battalion chief on the A Shift and utilizes battalion chiefs from CFPD on the other two shifts. As a result of this, the daily uniformed staff for Station 76 is five uniformed personnel on A Shift days and 4 uniformed personnel on the B and C Shift days. Station 76 also serves as the department’s training center with a classroom, training captain’s office, and a four-story training tower. There is also a State Certified Rescue Systems 1 and a confined space training site. Station 77, located at 4301 Santa Fe Avenue, houses one fire apparatus with a daily staff of four uniformed personnel. Station 78, located at 2800 Soto Street, houses two fire apparatus staffed daily by five uniformed personnel. Station 79 located at 4530 Bandini Boulevard, houses one fire apparatus staffed daily with three uniformed personnel. Vernon currently receives its dispatch services from CFPD. The City also participates in a mutual aid agreement with the cities of Compton, Downey, La Habra Heights, Long Beach, Montebello, and Santa Fe Springs, and it participates in an automatic aid agreement with CFPD and the City of Los Angeles. Fire Department Operating Budget The City of Vernon Fire Department has an operating budget of approximately $17.6 million. Approximately half of this budget is reserved for salaries and benefits equating to roughly $8.8 million of the total budget. Figure 29 shows the steady increase in the fire department for Fiscal Years 2017-18, 2018-19 and 2019-20. Based on a recent feasibility study, it is estimated that CFPD can carry out services at a cost of $12,003,018 annually. 60 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 29: Fire Department Expenditures, Vernon Expenditures 2017-181 2018-192 2019-203 Salaries and Benefits $ 1 7,641,037 $ 1 7,576,579 $ 8 ,847,915 Supplies and Services 7 03,597 1 ,112,453 8 ,447,176 Capital Outlay 3 01,800 5 77,031 3 65,800 Total Expenditures $ 1 8,646,434 $ 1 9,266,063 $ 1 7,660,891 Source: City of Vernon Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual expenditures by Vernon for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year 3) 2019-20 budget assumed CFPD transition in mid 2019-20, which did not occur yet. Total General Fund revenues to the Vernon fire department have averaged between $17.7 and $19.2 million as shown on Figure 30. Figure 30: Fire Department Revenues, Vernon Revenues 2017-181 2018-192 2019-202 General Fund $ 18,646,434 $ 19,266,063 $ 17,660,891 Source: City of Vernon Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual revenues received by Vernon for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year Future Growth in City Figure 31 shows actual population of Vernon for 2005, 2010, and 2015 and the estimated population growth that the City can expect through 2035. In order to forecast the future population, RSG looked at the population data provided by DOF as of January 1, of each year and calculated the compound annual growth rate from 2000 through 2019. The annual growth rate for Vernon was 6.50 percent and this growth rate was used to project the future populations. Vernon is a unique case, because the entire city is mainly commercial and industrial with a very small residential population. The population of Vernon may stay constant over the next 15 years as the focus of City leadership is not to provide more residential housing. Based on data received from ACS ranging from 2012-16, the median household income for Vernon is estimated to be $38,333 annually. 61 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 31: Population Forecast, Vernon Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Population 123 302 302 302 301 321 440 603 826 In the upcoming RHNA cycle, HCD has determined that Vernon will need to build 8 new affordable units. Vernon currently has an estimated 75 housing units as of 2019 and the number of housing units will increase by approximately 11 percent by 2029 as a result of the 6th Cycle allocation. CFPD Annexation Implications CFPD provides fire suppression and emergency medical services to the Cities of Huntington Park and Maywood to the south, and to the Cities of Bell and Commerce to the east. Los Angeles City Fire Department provides its services to the north and west of Vernon’s borders. Under the current proposal from the feasibility study prepared by CFPD, Station 76 would house an engine, a paramedic squad, and a truck staffed daily by 9 personnel and Station 77 would house an engine with a daily staff of 4. Stations 78 and 79 would be closed if CFPD were to carry out fire services for the City of Vernon. CFPD currently staffs 17 fire stations located within Vernon’s border that house a total of 31 fire apparatus and a daily staff of 98 personnel. CFPD would be able to draw upon a total of 19 fire stations, 35 fire apparatus, and daily staff of 111 to respond to incidents in Vernon. As shown on Figure 32: CFPD Serviceable Areas, Vernon Area, approximately 77 percent of the land area and 89 percent of the resident population falls within a 7-minute response time of an existing CFPD station. 62 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 32: CFPD Serviceable Areas, Vernon Area 63 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 WEST COVINA The City of West Covina is primarily residential and commercial that has an estimated 2019 population of 112,097 and 34,189 housing units. Retail merchandising is the City’s principal business activity with Westfield West Covina, Westfield Eastland, Edwards Theater and Lakes Entertainment Center, Auto Plaza, and Restaurant Row being important locations. The City is also home to five medical facilities and one trauma center. The City of West Covina is located to the east of downtown Los Angeles. West Covina spans a total of 16.04 square miles. The City is bordered to the north by the City of Covina and unincorporated area, the City of Walnut and unincorporated area to the east, Industry, La Puente, and unincorporated areas to the south, and the City of Baldwin Park and unincorporated area to the west. The City is primarily residential and commercial, with retail merchandising its principal business activity. Interstate 10 runs directly through the northern part of the City. All the bordering cities and unincorporated areas currently receive fire and emergency medical services from CFPD. West Covina’s current Sphere of Influence contains unincorporated areas in the north, east, and southwest areas of the City. City Fire Department Description West Covina Fire Department in Brief: The City of West Covina was incorporated in 1923, and the West Covina Fire Department was created in 1951. The • 31% of General Fund Budget department is administered by a fire chief who oversees all • $180 per capita for Fire department activities including the fire operations division and services fire prevention division. The fire chief is assisted by three • ISO Rating of 3 assistant fire chiefs who help run the day-to-day operations of the department. The City of West Covina currently has an ISO fire protection class rating of three. The department provides its services out of five fire stations. Station 1, located at 819 South Sunset Avenue, houses two fire apparatus and is staffed daily by five uniformed personnel. Station 2, located at 2441 East Cortez Street, houses two fire apparatus and one command unit 64 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 that is staffed daily by six uniformed personnel. Station 3, located at 1433 West Puente Avenue, houses one fire apparatus that is staffed daily by three uniformed personnel. Station 4, located at 1815 South Azusa Avenue, houses two fire apparatus staffed daily by five uniformed personnel. Station 5, located at 3650 East Shadow Oak Drive, houses one fire apparatus that is staffed daily by three uniformed personnel. The City of West Covina has its own dispatch center that serves as the City’s public safety answering point and provides dispatch services for the fire department, police department, and other city vehicles. The dispatch center is under the supervision of the West Covina Police Department. The department participates in the Area B Mutual Aid agreement and participates in an automatic aid agreement between the City and CFPD. Fire Department Operating Budget The City of West Covina Fire Department has an operating budget of nearly $19.5 million in 2019- 20. Figure 33 shows the steady increase in the fire department budget for Fiscal Years 2017-18, 2018-19 and 2019-20. The City of West Covina provided RSG with the total operating budget for FY 2019-20 but did not provide a breakdown of the operating budget by line item, therefore RSG stated the total operating budget in Figure 33. Based on a recent feasibility study, it is estimated that CFPD can carry out services at a cost of $17,080,095 annually. Figure 33: Fire Department Expenditures, West Covina Expenditures 2017-181 2018-192 2019-202 Salaries and Benefits $ 16,672,604 $ 17,419,535 $ - Supplies and Services 668,514 1,093,444 - Allocated Costs 261,387 597,314 - Total Expenditures $ 17,602,505 $ 19,110,293 $ 19,487,037 Source: City of West Covina Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual expenditures by West Covina for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year. The department is entirely funded by the City’s General Fund, as shown in Figure 34. 65 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 34: Fire Department Revenues, West Covina Revenues 2017-181 2018-192 2019-202 General Fund $ 17,602,505 $ 19,110,293 $ 20,136,381 Source: City of West Covina Fiscal Year 2019-20 Annual Budget 1) 2017-18 figures represent actual revenues received by West Covina for Fire Protection 2) 2018-19 and 2019-20 figures are the budgeted amounts for the respective Fiscal Year Future Growth in City Figure 35 shows actual population of West Covina for 2005, 2010, and 2015 and the estimated population growth that the City can expect through 2035. In order to forecast the future population, RSG looked at the population data provided by DOF as of January 1, of each year and calculated the compound annual growth rate from 2000 through 2019. The annual growth rate for West Covina was 0.15 percent and this growth rate was used to project the future populations. West Covina has experienced slow, steady growth over the past decade, with a few small decreases, and this trend can be expected to continue through 2035. Based on data received from ACS ranging from 2012-16, the median household income for West Covina is estimated to be $71,217 annually. Figure 35: Population Forecast, West Covina Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Population 108,639 108,773 108,685 108,388 108,116 108,278 109,093 109,914 110,741 In the upcoming RHNA cycle, HCD has determined that West Covina will need to build 5,397 new affordable units. West Covina currently has an estimated 34,189 housing units as of 2019 and the number of housing units will increase by approximately 16 percent by 2029 as a result of the 6th Cycle allocation. CFPD Annexation Implications CFPD provides fire suppression and emergency medical services to all the cities and unincorporated areas surrounding West Covina. Under CFPD’s current proposal, Station 1 would be closed, Station 2 would house a quint and paramedic squad staffed by 6 personnel, Station 3 66 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 would house an engine and a paramedic squad with a daily staff of 5, Station 4 would have an engine and a paramedic squad with a daily staff of 5, and Station 5 would be closed. CFPD currently staffs 24 stations within 5 miles of West Covina’s border that house a total of 37 fire apparatus and 115 uniformed personnel. CFPD would be able to draw upon a total of 29 fire stations, 45 fire apparatus, and a daily staff of 137 uniformed personnel to respond to incidents near the West Covina. As shown on Figure 36, most of the developed portions of West Covina are currently within a 7- minute response time of an existing CFPD fire station. RSG estimates that 87 percent of the resident population would be within this serviceable area. Representatives of the CFPD and the City of West Covina are currently considering an alternate proposal, one in which the CFPD would provide structural fire protection to West Covina utilizing three fire stations. These discussions are in the preliminary stages and would ultimately require confirmation of adequate service and staffing levels, as well as quantifying all costs. In addition, the two parties would need to reach agreement on a contract in which West Covina became a fee-for-service city, and secure LAFCO approval to annex into the CFPD. 67 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 36: CFPD Serviceable Areas, West Covina Area 68 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 RECAP OF FUTURE SOI EXPANSION STUDY AREAS This MSR evaluated 6 of the 30 Los Angeles County cities that currently do not receive fire service from CFPD for future expansion. Figure 37 below presents a summary of these cities current fire service costs and operations, as well as the percentage of the resident population that would be located within 7-minutes of an existing CFPD fire station nearby. Figure 37: Summary of Fire Services for Cities Studies % of General ISO City % of Residents City Evaluated Budget $/Capita Fund Rating Stations Near CFPD Station La Verne $ 9 ,242,657 $278 26% 3 3 91% Manhattan Beach 1 4,802,598 $412 12% 2 2 93% Redondo Beach 2 3,330,964 $340 24% 2 3 91% San Gabriel 9 ,016,260 $219 22% 3 2 85% Vernon 1 7,660,891 $58k 29% 1 4 89% West Covina 2 0,136,381 $180 31% 3 5 87% Note: Percent of residents near CFPD station represents population within 7 minutes of an existing CFPD station. TRANSITIONING TO FEE FOR SERVICE AND ANNEXATION Upon LAFCO’s completion of the MSR and SOI update, the aforementioned cities and CFPD may choose to pursue an annexation. Appendix 5 outlines the steps in the major steps in the annexation process undertaken by the parties. Commonly, several issues arise in the transition of fire services from a local (municipal) fire department to CFPD (or for that matter, any other successor agency). The most common issues include pension and other post-employment benefits (“OPEB”), controlling future cost increases on a fee-for-service model, and repair and facility replacement costs. PENSION TRANSITION Pension liability makes up a large portion of any public agency’s budget and unfunded liabilities are one of the largest stressors on future financial decisions made by public agencies. In the 69 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 context of annexation to CFPD, a sworn city employee transferring to CFPD would become a member of the Los Angeles County Employees Retirement Association (LACERA) on the first day of the month following the transfer of service to CFPD. The transferring city employee would leave his or her retirement contributions on deposit with California Public Employees’ Retirement System (CalPERS) and establish reciprocity with LACERA. Reciprocity allows for a person to move from one retirement system to another without losing the benefits the individual has earned. The retirement liability that had been accrued by the city employee during his or her time as a city employee would remain as a liability for the city and would not be transferred to CFPD. CFPD would then be responsible for the retirement contributions of the new employee for the time that the person remains under employment by CFPD. At the time of retirement, the reciprocal member would receive retirement benefits from both agencies based on the benefits of reciprocity. Any service time within the CalPERS system or other reciprocal system is not used to determine the amount the County will contribute towards the members’ retiree health insurance premiums. For a sample of the contract language related to pension transition, refer for Appendix 2. ANNUAL COST INCREASE CAPS Typically, the cost to provide fire services increases annually. This is no different for the fee-for- service cities or those cities with their own municipal fire departments. This may lead to uncertainty for cities that wish to annex into CFPD as the individual city loses a certain level of cost control when its fire services are contracted out. As a result, there is an annual payment cap that is put in place when a city becomes a Fee-for-Service city. In order to provide some ability for cities to forecast future costs, the annual payment cap provision is as follows: • There will be a four percent (4 percent) payment cap in place for the first five years of the agreement. This payment cap only applies to the city’s annual fee payment (salaries, benefits, and overhead costs) and does not apply to any additional costs such as conversion costs or capital improvement projects. • In the sixth year of the agreement, the payment cap would be the average of the preceding four years’ percentage increases in the annual fee and then add one percent to that. For 70 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 the seventh year and each year after, the payment cap is the average of the immediately preceding five years’ percentage increase plus one percent. • In any year that the City’s annual fee payment exceeds the preceding years payment amount, plus the applicable payment cap, payment of the excess amount would be deferred to a subsequent fiscal year when the increase in the annual fee payment for that fiscal year over the preceding fiscal year is less than the payment cap. The excess amount would be repaid by the City in any subsequent fiscal year to the extent the City’s annual fee payment increase in that fiscal year is less than the excess amount for that fiscal year. CAPITAL REPLACEMENT AND REPAIR When CFPD succeeds a municipal fire department, the city and CFPD negotiate a succession plan for any fire equipment or capital to ensure that ownership, maintenance, and replacement needs are addressed. After an initial feasibility study, CFPD would evaluate the condition and useful life of fire apparatus and capital facilities and propose plan for transitioning responsibility and cost to the city. This can include the city being asked to pay for replacement facilities or repairs or having CFPD take this on itself. ANNEXATION Upon the completion of an agreement for provision of fire services, LAFCO may entertain an application for annexation to effectuate the transition to CFPD. The CFPD requires a prospective fee-for-service city to annex into the CFPD prior to receiving services. 71 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 COMPARISON TO LARGER FIRE DEPARTMENTS AND DISTRICTS Using State Controller data for fiscal year 2018 (the most recent data available for comparison), RSG analyzed revenues and expenditures on a per capita basis for comparison to CFPD. While no fire agency in California is as large as CFPD, the next largest agencies in California include fire departments in the City of Los Angeles, the City/County of San Francisco, the Orange County Fire Authority, and the Sacramento Metropolitan Fire District. For context, RSG used total expenditures of $1,186,253,825 from CFPD’s report to the State Controller for fiscal year 2017-18, which are $6.1 million (0.5 percent) more than the actual expenditures provided to RSG. Based on the State Controller reported figures, CFPD expended on average $277 for each of the 4,276,079 residents of its service area in that year. As compared to CFPD, these four largest fire agencies do not provide lifeguard, hazardous materials oversight, or forestry and fire warden duties that CFPD provides within its jurisdiction. Figure 38 provides a brief statistical profile of CFPD and the four peer fire departments and districts studied in this MSR; profiles of these peer agencies are described below. Figure 38: Profile of Peer Fire Agencies Reviewed Peer Agencies LAFD SFFD OCFA SMFD CFPD City/County Joint Powers Independent Dependent Agency Type City Department Department Authority Special District Special District 2018 Expenditures (Actuals) $ 1 ,005,673,790 $ 3 60,559,204 $ 4 03,482,405 $ 2 12,028,877 $ 1 ,186,253,825 Population Served 4 ,040,079 8 83,869 1 ,982,715 7 56,782 4 ,276,079 Expenditures Per Capital $ 2 49 $ 4 08 $ 2 03 $ 2 80 $ 2 77 Total Stations (as of May 2020) 1 06 4 5 7 9 4 1 1 74 Personnel 3 ,500 1 ,668 1 ,054 not available ISO Rating (if available) 1 2 1-4 not available Unique Services (if any) Contract Svcs County, 24 Cities County, 2 Cities County, 58 Cities for City of + La Habra San Fernando Source: Agency websites 72 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 LOS ANGELES FIRE DEPARTMENT The Los Angeles Fire Department (“LAFD”) of the City of Los Angeles had 2018 operating expenditures of $1,005,673,7905 and a population of 4,040,079 as of January 2019. This is equivalent to $249 per capita for a somewhat smaller range of services as compared to CFPD. As a department within the City of Los Angeles, revenues cannot be isolated for the fire services alone. The City of Los Angeles is funded primarily by a combination of Property Tax and Sales and Use Tax. According to the City of Los Angeles Comprehensive Annual Financial Report (Year ended June 30, 2019), the LAFD had approximately $700 Million in expenditures. LAFD is the second largest Fire Department in the County behind CFPD. Between CFPD and LAFD, this makes up approximately 80 percent of all service being provided to County residents. LAFD operates 106 neighborhood fire stations located across the Department’s 469 square-mile jurisdiction. In addition to Fire Suppression and EMS, LAFD has several specialized service areas including Homeland Security & Arson, Urban Search and Rescue, Hazardous Materials, Air Operations, Dive Team, Mobile Medics, and Fire Communication. LAFD is made up of approximately 3,500 sworn and civilian members and maintains a fleet of five fire boats, six helicopters, numerous ambulances, truck companies, engine companies and other specialized equipment. LAFD currently maintains an ISO rating of 1 as of October 2016, as reported on their website. SAN FRANCISCO FIRE DEPARTMENT The San Francisco Fire Department (“SFFD”) of the City and County of San Francisco had 2018 operating expenditures of $360,559,204 and a population of 883,869 as of January 2019. SFFD 5 Source: State Controller’s Office, 2018 data. LAFD data includes fire and emergency medical services expenditures which were reported separately. 73 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 expended on average $408 per resident, though this community does see a relatively high increase in business and leisure travelers relative to the size of the City, which may explain why the cost appears to be relatively high. Like LAFD, because SFFD is a department of a City, no revenue breakdown can be provided. Again, the City and County of San Francisco is funded primarily by a combination of Property Tax and Sales and Use Tax. According to the City and County of San Francisco Comprehensive Annual Financial Report (Year ended June 30, 2019), the SFFD had approximately $375 Million in expenditures. The City and County of San Francisco Fire Department (“SFFD”) is the one of the largest Fire Department in Northern California and serves approximately 1.5 Million residents. SFFD operates 51 fire stations located across the Department’s 49 square-mile jurisdiction. The Department also staffs 3 Airport Division locations. In addition to Fire Prevention and Investigation, SFFD has several Divisions including Support Services, Training, EMS, Airports and Homeland Security. SFFD is made up of approximately 1,668 sworn and civilian employees. SFFD’s resources consist of 43 Engine companies, 19 Truck companies, a fleet of Ambulances, 2 Heavy Rescue Squad units, 2 Fireboats, and multiple special purpose units. SFFD maintains an ISO rating of 2 as reported in 2005. ORANGE COUNTY FIRE AUTHORITY Orange County Fire Authority (“OCFA”) a joint powers authority provides special district and fee- for-service fire protection services to unincorporated Orange County and 24 incorporated cities, had 2018 operating expenditures of $403,482,405 and a population totaling 1,982,715 as of January 2019. On average, OCFA expended $208 per capita for fire and EMS services in 2018, the lowest of the peer group reviewed, although they do not provide the same range of services as CFPD. The primary source of revenue is made up by Property Tax. According to the Orange County Fire Authority Financial Report (Year ended June 30, 2019), the OCFA had approximately $412 Million in expenditures. 74 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Personnel costs comprised approximately 84 percent of the total expenditures of OCFA, comparable to the 85 percent in CFPD in the same year. Revenues differ however, as CFPD relies more heavily on property and special taxes, while OCFA has measurably higher levels of revenues from charges for services and intergovernmental transfers (which include from fee-for- service jurisdictions). Like CFPD, OCFA has grown by adding additional fee-for-service cities since its formation several years ago. The Orange County Fire Authority (OCFA) provides services across 24 cities and all unincorporated areas in Orange County across its 575.72 square-mile jurisdiction. OCFA is made up of 1,051 firefighters that staff out of 79 stations along with 154 OCFA Reserve Firefighters working at 10 stations. The agency provides several specialized services to the community including Community Risk Prevention, response to all fires, Medical Aids, Rescues, Hazardous Material incidents, Wildland Fire, Aircraft Fire and Rescue services to John Wayne Airport, and other miscellaneous emergencies. OCFA has seven (7) divisions reporting ISO ratings of 1 to 4, according to a report on their website from 2014. SACRAMENTO METROPOLITAN FIRE DISTRICT Sacramento Metropolitan Fire District (“SMFD”), the second largest fire special district in California to CFPD, provides services to the cities of Citrus Heights and Rancho Cordova as well as all of unincorporated Sacramento County with 2018 operating expenditures of $212,028,877 and a service area population of 756,782 as of January 2019. This is equivalent to $280 per capita for SMFD services. At roughly one-fifth the size of CFPD and serving only two incorporated (fee-for-service) cities, SMFD shares only the fact that it too is a special district with CFPD. The primary source of revenue is made up by Property Tax. According to the Sacramento Metropolitan Fire District Comprehensive Annual Financial Report (Year ended June 30, 2019), SMFD had approximately $215 Million in expenditures. 75 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Metro Fire operates 41 fire stations that are located across the department’s 359 square-mile service area. In addition to fire suppression and EMS, Metro Fire also provides specialized services such as Air Operations, Hazardous Materials, Swiftwater Rescue, Homeland security, and Technical Rescue. Metro Fire is made up of approximately 676 sworn and civilian members and maintains a fleet of approximately 360 pieces of equipment. Information on Metro Fire’s ISO rating was not readily available on their website. 76 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 MSR DETERMINATIONS As a large agency, CFPD could be expected to deliver fire services on a more efficient basis in terms of both cost and manpower, but over the last decade, despite growing property tax revenues and an increase in the number of fee-for-service cities (that pay 100 percent of their cost for service), the ability of CFPD to maintain this is increasingly challenging. To be clear, there can be no denying that fire services are often best provided by agencies that have the scale and resources to respond, particularly with the increase in wildfires, EMS incidents, and long- term pension obligations that any fire agency faces. At the same time, Los Angeles County continues to add population, thereby increasing the need for more emergency medical services that constitute most of the calls for service. A lack of operational funds, particularly due to the failure of special tax Measure FD in March 2020, raises concerns about the current model, despite the fact that it may still offer a superior and less costly fire prevention service to other agencies in the County. Finally, both the public and CFPD would benefit with the implementation of more transparency and budgeting best practices. Requisite CKH determinations for this MSR are presented by topic below: POPULATION, GROWTH, AND HOUSING To determine population and growth estimates, RSG utilized data obtained from the California Department of Finance (DOF). This MSR provides revised population estimates as of January 1, 2018, and provisional population estimates as of January 1, 2019, for the state, counties, and cities and includes a calculation of annual percent growth. To determine the future population projections, RSG looked at historical trends dating back to 2000 based on Department of Finance data. This data was used to calculate the compound annual growth rate for the period of 2000 through 2019. The compound annual growth rate was then used to project the population from 2000 through 2035. The annual growth rate for CFPD’s 77 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 SOI is 0.38 percent, which is very close to the annual growth rate for all Los Angeles County, which was calculated at 0.39 percent. Based on historical data and future projections, it can be assumed that CFPD provides service to approximately 40 percent of the County of Los Angeles residents. This also is the anticipated trend moving forward because the Los Angeles Fire Department and the Long Beach Fire Department serve an additional 43 percent of the County’s population and any significant increases in population served would be due to annexations into CFPD. The table and charts below outline the population count and comparisons from the CFPD Sphere of Influence to the County population count. As Figure 39 details, the population growth for the CFPD Sphere of Influence is relatively similar to that of the County, assuming no additional cities annex in to CFPD. This is important to consider in determining the feasibility of CFPD to take on more population and area, and the fact that CFPD population growth is like that of the greater Los Angeles County. Figure 39: Population Forecast, CFPD Territory and Los Angeles County Year 2015 2016 2017 2018 2019 2020 2025 2030 2035 Countywide 10,155,753 10,185,851 10,226,920 10,254,658 10,253,716 10,293,705 10,496,004 10,702,279 10,912,608 CFPD Only 4,094,154 4,096,024 4,097,007 4,098,794 4,096,325 4,111,891 4,190,613 4,270,842 4,352,607 78 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 DISADVANTAGED UNINCORPORATED COMMUNITIES IN CFPD SOI As part of the MSR, RSG considered the impact of the SOI related to Disadvantaged Unincorporated Communities. A Disadvantaged Unincorporated Community (“DUC”) is defined as an area of inhabited territory located within an unincorporated area of a county in which the annual median household income is less than 80 percent of the statewide median household income. State law considers an area with 12 or more registered voters to be an inhabited area. LAFCO designated the DUCs in the County using 2016 ACS Census data, meaning that any unincorporated area where the median household income is less than $54,1916. For a comprehensive overview of the DUCs, please see maps in Appendix 6. As the only fire service provider in unincorporated Los Angeles County, CFPD serves all the County DUCs. These DUCs are located throughout the San Gabriel Valley, the Gateway Region, the High Desert, the Los Angeles Basin, and one near Santa Clarita. Because DUCs are exclusive to unincorporated areas, annexation of any incorporated city into the CFPD SOI would not impact any DUCs. PRESENT AND PLANNED CAPACITY OF FACILITIES The CFPD holds an extensive amount of equipment, apparatuses, and assets that it uses and maintains to carry out services. Figure 40 outlines equipment and apparatuses used in areas including Emergency Operations, Reserve Equipment, Lifeguards, Air and Wildland, and Forestry. 7 Source: LAFCO DUC Map, data from 2012-16 American Communities Survey (ACS) 5-Year Summary, Bureau of the Census, US Department of Commerce. 79 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Figure 40: CFPD Equipment Inventory Emergency Operations Air and Wildland Battalions 22 Facilities 4 Fire Stations 174 Aircraft Mechanics 1 8 Engine Companies Helicopters Type I 171 Bell 412 5 Type III (OES) 5 Firehawk 5 Type VI 34 Fire Suppression Camps Truck Companies Paid 4 Light Forces 4 Correctional 5 Quints 25 Fire Suppression Crews Paramedic Units Paid 4 Air Squads 3 Correctional 2 4 Assessment Engines 27 Dozers 1 0 Assessment Quint/Light Force 2 Dozer Transport Trucks 1 0 Engines 6 Fuel-Tender 1 Squads 71 Heli-Tenders 9 Hazardous Materials Squads 4 Heavy Equipment 1 9 USAR Squads 2 Lifeguard Division Emergency Support Teams 3 Lifeguard Stations 2 4 Swift Water Rescue Units 5 Lifeguard Towers 1 59 Fire Boats 2 Beach Patrol Vehicles 5 8 Foam Units 4 Rescue Boats 8 Mobile Air/Light Units 4 Paramedic Rescue Boats 2 Water Tenders 14 Baywatch Paramedic Squads 2 Reserve Equipment Forestry Division Engines 58 Forest Tree Nurseries 5 Trucks/Quints 10 Plants Distributed 1 7,322 Squads 31 Battalion SUVs 21 Source: CFPD 2018 Statistical Analysis The failure of Measure FD raises concerns about the quality and usefulness of equipment and facilities. A May 2018 study commissioned by the County Board of Supervisors highlighted many serious operational needs of CFPD, and as later cited by the Board in December 2019: § “Local firefighters and paramedics are using decades old equipment. § 20-year-old fire engines and rescue vehicles frequently break down and are costly to repair and maintain. 80 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 § The Fire District’s antiquated 30-year-old 9-1-1 communications system is incompatible with modern wireless and digital systems; this poses challenges for paramedics who need to communicate directly with emergency rooms while transporting patients, and does not provide global positioning system mapping, a critical tool to reduce response times. § Up-to-date equipment is needed, including thermal image cameras used to locate and rescue children, the elderly, and people with disabilities who are particularly vulnerable during fires, floods and earthquakes.” FINANCIAL ABILITY OF CFPD TO PROVIDE SERVICES In March 2017, CFPD released a report including a five-point strategic plan that addressed the operational and management focus of the district. An update to the strategic plan has not been posted to the CFPD’s website since that time. The five elements include the following: 1. Fiscal Sustainability; 2. Exemplary Services; 3. Workforce Development; 4. Operational Effectiveness; and 5. Emergency Preparedness. 81 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 Among the priorities of the CFPD strategic plan was addressing revenue challenges. For some time, CFPD has faced revenue shortfalls that constrain its ability to provide service. This was among the reasons why CFPD sought the Board of Supervisors support to put Measure FD on the March 2020 ballot. According to the December 3, 2019 Board motion from Supervisor Barger, “…more funding is needed to hire and train additional firefighter/paramedics and replace aging safety gear, communications tools and lifesaving rescue equipment.” RESERVE PLANNING FOR FIRE SERVICES According to the 2018-19 CAFR, the County maintains a “Rainy Day” fund (established in 2009 in response to the Great Recession) of approximately 10 percent of revenues to cover unforeseen fiscal challenges in the General Fund or other departments, although it does not appear that as a dependent special district CFPD has any dedicated portion of this fund. According to CFPD management, CFPD reserves are funded from prior year carryovers and if deployed for capital or other expenditures, require a budget approval prior to the use of such funds. Moreover, it does not appear that CFPD has established an equipment or capital replacement fund to address operational needs of for district services. The lack of funding for a public safety capital has been raised before the CFPD’s governing body, the County Board of Supervisors. On August 15, 2013, the Board of Supervisors received an audit report7 from the County Auditor Controller that made several findings about the fiscal health of CFPD with respect to capital asset purchases, including the following: “Understandably, Fire provides critical services, and must be able to purchase fixed assets and equipment when needed. However, Fire may be able to minimize or avoid deficits through 8 Review of the Consolidated Fire Protection District Budget and Financial Position for Fiscal Year2011-12, Los Angeles County Auditor Controller. http://file.lacounty.gov/SDSInter/auditor/audit_reports/198787_2013-08- 15ReviewoftheConsolidatedFireProtectionDistrictBudgetandFinancialPositionforFiscalYear2011- 12_BoardAgendaItem45_September4_2012_.pdf 82 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 strategic timing of its acquisition of fixed assets and capital improvements, consideration of potential market-based financing options to pay for these acquisitions, and decisions of how to use its Fund Balance, Designations, and/or ACO funds to smooth the cyclical impact of economic downturns.” It further went on to recommend that “Fire needs to work with the CEO to refine its existing plans for fixed assets and capital improvement needs, including consideration of financing alternatives that will meet the District's requirements, while minimizing deficits.” Upon review, one major theme was apparent – the need for capital purchases and long-term infrastructure needs. As the Audit office noted in 2013, CFPD’s routine/ongoing operating revenues exceeded operating expenditures by $9.6 million. However, decisions to purchase needed fixed assets and equipment generated an additional $20.9 million of expenditures, resulting in an $11.3 million deficit. The report also notes that, understandably, CFPD provides critical services, and must be able to purchase fixed assets and equipment when needed. However, the report also notes that CFPD may be able to minimize or avoid deficits through strategic timing of its acquisition of fixed assets and capital improvements, consideration of potential market-based financing options to pay for these acquisitions, and decisions of how to use its Fund Balance, Designations, and/or ACO funds to smooth the cyclical impact of economic downturns. It is unclear to RSG whether such a refinement to CFPD practices has occurred, particularly since funding for replacement of these assets has been done on a pay-as-you-go basis, as CFPD does not have an established equipment replacement policy or practice that measures prorates replacement costs over the useful life of assets, unlike some best performing local agencies. Moreover, there is reasonable concern whether fiscal challenges may lie ahead for CFPD given: 1) the failure of Measure FD in March 2020 upon which CFPD stated an acute need for funding for capital (as well as personnel), and 2) the unknown economic and fiscal consequences of the COVID-19 pandemic. 83 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 More recently, in December 2019, the Supervisor Barger’s motion to place Measure FD on the ballot raised similar concerns about the financial capacity of CFPD to maintain necessary emergency equipment. In consultation with CFPD, following the rejection of ballot Measure FD, a funding mechanism and strategy is still to be identified. Finally, the County’s LACERA retirement obligations should not be ignored even though CFPD is a dependent special district and not (at least directly) responsible for fulfilling pension and OPEB liabilities. According to the June 30, 2019 actuarial report, LACERA reports total unfunded liabilities of over $17 billion. Recently the County has been using surplus funds to pay down this liability, but clearly much is left to be done. This is not a unique issue to any county or public agency, but the resilience of the County and CFPD is tied to a long-term solution to its pension crisis. OPPORTUNITIES FOR SHARED FACILITIES CFPD operates under a regional approach of providing emergency services to the cities it serves and unincorporated areas of the County. This gives CFPD the ability to use its overall size and economy of scale to draw from many different facilities and different types of emergency apparatus in the area where an incident has occurred. This regional approach also allows for CFPD to more efficiently respond to large, complex, or simultaneous incidents that require a large amount of apparatus, personnel or specialty apparatus for incidents involving hazardous materials or urban search and rescue. Most cities have mutual or automatic aid with neighboring agencies that allow for cities to draw upon the resources of other departments. Mutual aid is a voluntary exchange of resources. However, there is usually a lag time in dispatching these additional units causing longer response times and leading to increased risk for citizens involved and the personnel who are waiting on additional units to arrive. The regional approach allows for large amounts of units to be dispatched simultaneously to reduce response times and increase the likelihood that firefighters will be able to manage incidents effectively and reduce safety risks and property loss. 84 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 As an example, CFPD dispatchers utilize standardized response profiles that allows them to immediately dispatch the appropriate number of resources to incidents without having to assess the scene before requesting more resources from aid agreements. In addition to resources including personnel and apparatuses, there is the potential option for shared facilities related to fire stations. On a case by case basis, a given station could potentially be closed due to neighboring stations providing an adequate level of service. This could also be the case for a station that receives minimal activity. This in turn could reduce costs by reducing capital improvement obligations as well as staffing a station that may not be necessary. Currently, CFPD has mutual aid agreements with every independent fire department in the County, apart from the City of Torrance Fire Department. These mutual aid agreements allow for CFPD to call upon other agencies to provide support at incidents when applicable. These agreements also allow for independent departments to call upon CFPD to provide support when there are large scale incidents that the department cannot handle on its own. The mutual aid agreements are often utilized, drawing in resources and staff from CFPD to smaller agencies. Going forward with the increase in wildfires expected due to climate change, the sustainability of the current mutual aid model has come into question without additional ongoing funding, according to the December 2019 Board motion: “(CFPD’s) mutual aid system is no longer reliable. Today’s fast-moving, historically large wildfires are unpredictable and dangerous. We cannot count on firefighters from other areas helping in the event of disaster, since large wildfires often threaten other parts of California at the same time that they threaten our area.” In a follow-up discussion with CFPD management, CFPD cited two reasons why mutual aid agreements are less reliable today. First, they contend that statewide many fire agencies have not recovered from the last recession and are still working with scaled-back resources that reduce the statewide capacity overall. Second, weather conditions in the state have increased the frequency of major wildfire incidents, such that resources in one part of the state that may have been less necessary locally during an otherwise rainy season are now in demand locally due to more incidents of fire and less rainfall. One recent example of this was the lack of mutual aid 85 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 resources available during the Woolsey fire in Ventura and Los Angeles Counties, because the Camp fire in Northern California was still very active. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS As cities annex into CFPD, it is important for staffing levels to be modified and appropriate to ensure the continued support that a city should expect. Moreover, when comparing information made available to the general public on the CFPD website to those of both peer agencies and the smaller city-run fire departments that may be annexed into CFPD, we noted significant discrepancies in voluntary disclosure. For example, records of average response times, a common metric employed by many public agencies to inform taxpayers and stakeholders of the effectiveness of emergency operations, were readily available on budget or websites for most department and districts although no such data could be obtained easily by RSG in the preparation of this MSR. With GIS analysis, RSG was able to estimate that approximately 92 percent of resident population of CFPD lives within the district’s 7-minute response time standard for emergency medical services, but the general public would normally not have the ability to perform this analysis. No information was available on the CFPD’s website about the four existing parcel taxes approved by the voters that benefit CFPD, which we felt was unfortunate and potentially confusing to stakeholders or voters that would consider future special tax measures (such as Measure FD). PERTINENT LITTLE HOOVER COMMISSION SPECIAL DISTRICT REPORT FINDINGS As part of the review of CFPD and this MSR, RSG reviewed the Little Hoover Commission’s 2017 report titled Special Districts: Improving Oversight and Transparency. While many of the Little Hoover Commission’s findings may be concluded to be applicable to addressing the legacy of numerous and extraordinarily small and underfunded special districts, we believe best practices can be taken from the conclusions of this report, particularly as CFPD expands into smaller cities. Specifically, we can make the following observations about CFPD framed in two recommendations (Numbers “1”and “19) of the Little Hoover Commission’s recommendations: 86 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 1. The Legislature (governing body) should require every special district to have a published policy for reserve funds, including the size and purpose of reserves and how they are invested – this should include a published policy for reserve funds, including the size and purpose of reserves and how they are invested. RSG noted that CFPD’s website did not appear to be intuitive or user-friendly. 2. Every special district should have a website. Key components should include: o Services provided. RSG noted that CFPD did little to explain the function of FFW services that are provided countywide, outside of the boundaries of the District, as well as its performance standards and metrics. Furthermore, a strategic plan that addresses the County’s plan for ensuring these standards are maintained was not readily available nor posted on the CFPD’s website. RSG also noted that the CFPD website did not disclose its most recent (2017) ISO rating, despite that it was shared via a memo to each County Supervisor in May 2018 and noted some improvements in performance. Fire chiefs are able to obtain their ISO rating report at no cost, while the general public must pay for this report from ISO. o Governance structure of the district, including election information and the process for constituents to run for board positions. RSG found that while the relationship to the Board of Supervisors may be self-evident to some, the process for raising concerns about Fire services or standards as well as avenues for citizen oversight is not clear to the general public, particularly for those in incorporated cities. o Compensation details – total staff compensation, including salary, pensions and benefits, or a link to this information on the State Controller’s website. Compensation information for CFPD was not available on their website, nor is it available on the State Controller’s transparency website (https://publicpay.ca.gov). o Budget (including annual revenues and the sources of such revenues, including without limitation, fees, property taxes and other assessments, bond debt, 87 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 expenditures and reserve amounts). As stated earlier, much of this information was vague, outdated, or incomplete. o Reserve fund policy. CFPD claims that they do not have any reserve or equipment replacement or replenishment fund. As the concern over the condition of critical public safety equipment was raised in the December 2019 Board Motion for Measure FD, RSG believes that more disclosure about the lack of funding for infrastructure and policies and practices for addressing should be more easily attainable by a member of the public. o Most recent annual financial report provided to the State Controller’s Office, or a link to this information on the State Controller’s website. RSG did not locate parcel tax reports, required by Assembly Bill 2109 on the State Controller website, though the County Auditor Controller was able to provide copies of these reports to RSG when asked. o Link to the Local Agency Formation Commission and any state agency providing oversight. No such information was available on the CFPD website. TRANSPARENCY PRACTICES AMONG LARGER FIRE AGENCIES After this review, RSG analyzed accessible information across four Fire agencies, including the City of Los Angeles Fire Department, Orange County Fire Authority (OCFA), the City and County of San Francisco Fire Department, and Sacramento Metropolitan Fire Department. During this review, RSG found information including financial and operational data, to be more accessible while reviewing the OCFA and the City of Los Angeles Fire Department. SFFD and Sac Metro provided information that was relatively easy to obtain. It is also important to note that OCFA and Sac Metro have “tabs” on their websites titled “Transparency” which provide valuable information and data. As outlined above, transparency was a key recommendation when assessing a given special district. CFPD notified RSG that it has been working with a vendor since September 2018 to revamp CFPD’s website, and CFPD 88 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 just announced the update in a recent press release. While much of the content of the website is improved, additional information is recommended to address many of the transparency issues that were cited earlier. SOI RECOMMENDATIONS At least three of the six cities studied (Vernon, West Covina, and San Gabriel) have been identified as having significant fiscal challenges on the State Auditor’s review and ranking of California Cities in 2019. All three ranked in the top 20 among over 400 cities in California as facing fiscal distress due to reserve, revenue, and/or debt issues. These challenges likely remain, particularly due to the COVID-19 crisis. In fact, West Covina recently declared a fiscal emergency. On a per capita, basis, West Covina’s fire budget was relatively small, but still represents a substantial portion of their General Fund budget. Annexation is not triggered by expanding the CFPD SOI to these cities, but it does avail the cities and LAFCO the ability to more quickly react to the fiscal needs local government must face to deliver services, particularly nondiscretionary services like fire and emergency medical services, efficiently and effectively. This is not a matter of simply having sufficient personnel or fire stations, as our preliminary research shows that the relationship between the number of fire stations does not necessarily improve a city’s ISO rating. In fact, since all six cities would be able to demonstrate that most of their residents could be served by existing CFPD stations, this circumstance does suggest that the CFPD, cities, and LAFCO should evaluate annexation and savings through redundancy where it is appropriate to do so. For these reasons, RSG is recommending that LAFCO expand the CFPD SOI to include all six cities at this time. Certainly, CFPD has to determine if and when they are prepared to take on additional services, respond to the failure of Measure FD to bolster the viability of the pre-Prop 13 cities it currently serves, and also look at improving efficiencies and transparency to be comparable to what many Californians can expect from a fire protection agency, much like its peers such as LAFD and OCFA. 89 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 The Commission originally adopted an SOI for the CFPD in 1983, and the Commission most recently amended the SOI for the CFPD in 2017. The CFPD currently has an SOI that is a “Coterminous SOI;” as defined in the “Sphere of Influence Policy” adopted by the Commission (November 13, 2019), a Coterminous SOI is an SOI “that includes the same physical territory as the jurisdictional boundaries of that city or special district.” Adding these six cities to the CFPD SOI would change the SOI to a “Larger Than SOI;” as defined in the “Sphere of Influence Policy,” a Larger Than SOI “includes territory that is larger than the jurisdictional boundary of the subject city or special district. 90 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDICES 91 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDIX 1: CFPD BOUNDARIES AND SPHERE OF INFLUENCE AS OF JUNE 2020 92 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDIX 2: LOS ANGELES COUNTY FIRE SERVICE PROVIDERS Pre-Prop 13 Service Area (County + 40 Cities) Post-Prop 13 Service Area (7 Cities) Population Population Population Unincorporated County 1 ,046,858 1 Agoura Hills 2 0,842 1 Artesia 1 6,919 21 Lancaster 1 61,604 2 Calabasas 2 4,239 2 Baldwin Park 7 7,286 22 La Puente 4 0,795 3 Diamond Bar 5 7,495 3 Bell 3 6,556 23 Lawndale 3 3,436 4 Malibu 1 2,046 4 Bellflower 7 8,308 24 Lomita 2 0,763 5 Santa Clarita 2 18,103 5 Bell Gardens 4 2,972 25 Maywood 2 7,971 6 West Hollywood 3 6,660 6 Bradbury 1 ,077 26 Norwalk 1 06,744 7 Westlake Village 8 ,378 7 Carson 9 3,604 27 Palmdale 1 57,854 8 Cerritos 5 0,711 28 Paramount 5 5,497 Fee for Service Cities (12 Cities) 9 Claremont 3 6,511 29 Pico Rivera 6 4,033 1 Azusa 5 1,313 10 Cudahy 2 4,264 30 Rancho Palos Verdes 4 2,560 2 Commerce 1 3,021 11 Duarte 2 1,952 31 Rolling Hills 1 ,892 3 Covina 4 8,876 12 Glendora 5 2,122 32 Rolling Hills Estates 8 ,247 4 El Monte 1 17,204 13 Hawaiian Gardens 1 4,690 33 Rosemead 5 5,097 5 Gardena 6 1,042 14 Hidden Hills 1 ,885 34 San Dimas 3 4,584 6 Hawthorne 8 7,854 15 Huntington Park 5 9,350 35 Signal Hill 1 1,795 7 Hermosa Beach 1 9,847 16 Industry 4 32 36 South El Monte 2 1,293 8 Inglewood 1 12,549 17 Irwindale 1 ,506 37 South Gate 9 6,777 9 La Habra (Orange County) 63,542 18 La Canada Flintridge 2 0,602 38 Temple City 3 6,583 10 Lynwood 7 1,343 19 Lakewood 8 1,352 39 Walnut 3 0,551 11 Palos Verde Estates 1 3,544 20 La Mirada 4 9,558 40 Whittier 8 7,526 12 Pomona 1 54,310 Other LA County Fire Agencies (all Served by Fire Department of Respective City) 1 Alhambra 8 6,931 11 La Habra Heights 5 ,485 21 San Fernando 2 4,804 2 Arcadia 5 8,891 12 La Verne 1 3 3,201 22 San Gabriel 1 4 0,726 3 Avalon 3 ,845 13 Long Beach 4 75,013 23 San Marino 1 3,271 4 Beverly Hills 3 4,627 14 Los Angeles 3 ,976,838 24 Santa Fe Springs 1 8,068 5 Burbank 1 05,952 15 Manhattan Beach 1 3 5,894 25 Santa Monica 9 1,447 6 Compton 9 8,711 16 Monrovia 3 8,373 26 Sierra Madre 1 1,134 7 Culver City 4 0,173 17 Montebello 6 3,847 27 South Pasadena 2 6,082 8 Downey 1 14,212 18 Monterey Park 6 1,597 28 Torrance 1 46,908 9 El Segundo 1 7,066 19 Pasadena 1 42,599 29 Vernon 1 3 01 10 Glendale 2 06,283 20 Redondo Beach 1 6 8,042 30 West Covina 1 1 07,442 Source: California Department of Finance, January 1, 2019 Population estimates 1) Six (6) agencies that were studied for possible includion into SOI in this MSR. 93 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDIX 3: CFPD FIRE STATIONS AND STANDARD EMS RESPONSE TIMES 94 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDIX 4: CFPD ORGANIZATIONAL CHART 95 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDIX 5: CFPD ANNEXATION PROCESS 1. The City Council of a potential fee-for-service city votes to request a proposal from CFPD for the provision of fire, EMS, and related services. 2. CFPD prepares the preliminary feasibility study to outline CFPD’s proposed staffing to provide services, the estimated annual cost to the city, and an evaluation of the city’s financial solvency to pay for fire services. The feasibility study must be authorized by the Los Angeles County Board of Supervisors and then it is sent to the city. 3. If the city decides to proceed, the city and CFPD would enter negotiations for annexation into CFPD. The City would be required to sign a Reimbursement Agreement that ensures payment to CFPD of its cost for evaluating the city fire department’s facilities, apparatus, and equipment to determine potential one-time costs of conversion to CFPD Operation. 4. CFPD would then request that the Local Agency Formation Commission (LAFCO) to conduct a Municipal Service Review (MSR) for a sphere of influence (SOI) update that is necessary as a result of the annexation into CFPD. 5. Upon successful negotiations the city would sign an annexation agreement and adopts a $0 Joint Property Tax Transfer Resolution. CFPD submits to the Board of Supervisors a Resolution Making Application to LAFCO, $0 Joint Property Tax Transfer Resolution, Negative Declaration, and legal Description. Upon Board approval, CFPD then submits these items to LAFCO. 6. Upon completion of the MSR and approval of the Board Resolution, LAFCO adopts an amended SOI, holds a public hearing, and approves the annexation. 7. LAFCO then records the annexation on the date requested, notifies the County Engineer, County Assessor, the CFPD Fire Chief, and the State Board of Equalization upon completion of annexation procedures. The city then must adopt an ordinance to use CFPD’s Fire Code and an ordinance for CFPD to be the administering agency for hazardous materials programs, if applicable. 96 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 APPENDIX 6: DISADVANTAGED UNINCORPORATED COMMUNITIES (“DUCS”) 97 Municipal Service Review and Sphere of Influence Update Consolidated Fire Protection District of Los Angeles County Adopted July 8, 2020 98