Municipal Service Review and Sphere of Influence Study: Special Districts Providing Fire Protection and Emergency Medical Services in Unincorporated Monterey County

LAFCO of Monterey County _ LOCAL AGENCY FORMATION COMMISSION OF MONTEREY COUNTY 2020 Municipal Service Review and Sphere of Influence Study: Special Districts Providing Fire Protection and Emergency Medical Services in Unincorporated Monterey County Adopted by the Commission on June 22, 2020 COMMISSIONERS Chair Ian Oglesby, City Member Vice Chair Chris Lopez, County Member Luís Alejo, County Member Joe Gunter, City Member Mary Ann Leffel, Special District Member Matt Gourley, Public Member Warren Poitras, Special District Member Maria Orozco, Alternate City Member Jane Parker, Alternate County Member Steve Snodgrass, Alternate Public Member Graig Stephens, Alternate Special District Member STAFF Kate McKenna, AICP, Executive Officer Darren McBain, Principal Analyst Jonathan Brinkmann, Senior Analyst Gail Lawrence, Clerk to the Commission Shawn Hall, Administrative Assistant Kelly L. Donlon, General Counsel FIRE CONSULTANT Michael P. McMurry LOCAL AGENCY FORMATION COMMISSION OF MONTEREY COUNTY 132 W. Gabilan Street, Suite 102, Salinas, CA 93901 P.O. Box 1369, Salinas, CA 93902 (831) 754-5838 www.monterey.lafco.ca.gov LAFCO of Monterey County 2 EXECUTIVE SUMMARY .............................................................................................................................................. 5 Table of Contents INTRODUCTION ..................................................................................................................................................... 5 REPORT OVERVIEW ............................................................................................................................................... 7 COVID-19 ............................................................................................................................................................... 7 RECOMMENDED LAFCO ACTIONS ..................................................................................................................... 7 KEY FINDINGS ........................................................................................................................................................ 8 OPTIONS FOR CONSIDERATION ......................................................................................................................... 10 1. State Legislative Advocacy Options ................................................................................................ 10 2. County-Level/Countywide Options................................................................................................ 10 3. Local Fire Agency Options .............................................................................................................. 10 4. Communications-Specific Matters ................................................................................................. 11 5. Big Sur and Mid-Coast Areas .......................................................................................................... 11 REGIONAL MAPS .................................................................................................................................................. 14 SECTION 1: MUNICIPAL SERVICE REVIEW (MSR) AND SPHERE OF INFLUENCE FINDINGS ........................ 19 1.1 MUNICIPAL SERVICE REVIEW DETERMINATIONS – PER GOVERNMENT CODE SECTION 56430 ....... 19 1.2 SPHERE OF INFLUENCE DETERMINATIONS – PER GOVERNMENT CODE SECTION 56425(e) ............ 22 SECTION 2: FIRE PROTECTION ORGANIZATION ................................................................................................ 25 2.1 Fire Service Organization and History .............................................................................................. 25 2.2 Previous LAFCO Actions .................................................................................................................. 26 2.3 Wildland Fire Responsibility ............................................................................................................ 28 2.4 Fire Protection Districts ................................................................................................................... 34 2.5 Mid-Coast and Big Sur Volunteer Fire Companies (Brigades) ......................................................... 34 2.6 Community Services Districts........................................................................................................... 36 2.7 Airport District .................................................................................................................................. 37 2.8 Volunteer Fire Companies ................................................................................................................ 37 2.9 Resource Conservation District (RCD) of Monterey County .......................................................... 37 2.10 County of Monterey ......................................................................................................................... 37 2.11 Alliances ........................................................................................................................................... 38 2.12 Staffing ............................................................................................................................................. 39 2.13 Level of Service: Fire Protection Districts and Fire Companies ...................................................... 42 2.14 Cost of Fire Operations ................................................................................................................... 43 2.15 Finance and Alternative Funding .................................................................................................... 44 2.16 Other Funding Sources .................................................................................................................... 46 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 3 SECTION 3: EMERGENCY MEDICAL SERVICES (EMS) ORGANIZATION ......................................................... 49 3.1 Background ........................................................................................................................................ 49 3.2 EMS Funding ..................................................................................................................................... 49 3.3 Current System .................................................................................................................................. 50 3.4 Outcome-Based EMS Response ........................................................................................................ 50 SECTION 4: CONCLUSION ...................................................................................................................................... 53 SECTION 5: INDIVIDUAL DISTRICT PROFILES .................................................................................................... 55 5.1 Aromas Tri-County Fire Protection District ..................................................................................... 57 5.2 Cachagua Fire Protection District .................................................................................................... 63 5.3 Carmel Highlands Fire Protection District ....................................................................................... 67 5.4 Cypress Fire Protection District ....................................................................................................... 71 5.5 Gonzales Rural Fire Protection District ........................................................................................... 75 5.6 Greenfield Fire Protection District ................................................................................................... 79 5.7 Mission Soledad Rural Fire Protection District ................................................................................ 83 5.8 Monterey County Regional Fire Protection District ........................................................................ 87 5.9 Monterey Peninsula Airport District (Fire Protection and Emergency Medical Services Only)...... 91 5.10 North County Fire Protection District of Monterey County .......................................................... 95 5.11 Pebble Beach Community Services District (Fire Protection and Emergency Medical Services Only)................................................................................................................................................ 99 5.12 South Monterey County Fire Protection District .......................................................................... 103 5.13 Big Sur Volunteer Fire Brigade ....................................................................................................... 107 5.14 Mid-Coast Volunteer Fire Brigade ................................................................................................ 111 5.15 County Service Area 74 (Monterey County Emergency Medical Services) .................................. 115 SECTION 6: APPENDICES ....................................................................................................................................... 119 6.1 Acknowledgements ......................................................................................................................... 119 6.2 Agency Comment Letters and Emails on the Administrative Draft Study ..................................... 120 LAFCO of Monterey County 4 EXECUTIVE SUMMARY INTRODUCTION This report provides information about the services and boundaries of special districts providing fire protection and pre-hospital emergency medical services (EMS) in unincorporated Monterey County. The purpose of this study is twofold: 1. Illustrate the issues facing fire protection and emergency medical service agencies in the unincorporated area of Monterey County, as well as showcasing their efforts to protect the County; and, 2. Complete Municipal Services Review and Sphere of Influence determinations and recommendations to meet State-mandated requirements. Fire protection and emergency services have evolved over many years in the County and the challenges that they face are many. In unincorporated Monterey County, these services are provided by a network of Federal, State, and local agencies, volunteer firefighters, and private ambulance providers. The maps on the following two pages show the boundaries of local fire protection agencies and the responsibility areas of state and federal firefighters. This report focuses on the crucial role of special districts that deliver fire protection and EMS. It does not address fire protection and EMS in Monterey County’s cities. LAFCO will comprehensively address all City services countywide in a subsequent municipal service review in accordance with the annual work program. The population of the unincorporated area is approximately 105,000. About 98% of this population lives within the boundaries of a fire agency. The entire county is included in the County EMS Agency’s jurisdiction. The fire agencies in this study receive about 15,334 primary response calls a year for fire protection and EMS, about a third of all such calls in the County. The special districts providing fire protection services cover about 1,497 square miles, almost half (45.6%) of the 3,281 square miles of land area of Monterey County. In addition, all Monterey County residents benefit from County Service Area 74 that provides countywide support for emergency medical services supplied by many participating agencies. As a group, special districts receive approximately $47.4 million a year to provide fire and emergency medical services in unincorporated Monterey County. District comparisons are included in table form below, within this executive summary. The Key Findings section within this Executive Summary highlights the report’s most significant observations and conclusions. These findings were developed from LAFCO’s research and from meetings with the fire and EMS agencies’ representatives in 2019 and early 2020. The Executive Summary also includes a list of options for future consideration, and potential action, by the wider fire/EMS community, post-completion of this study. Implementation of these options for near-term and longer-term incremental improvements to fire protection and EMS is generally beyond LAFCO’s scope. However, LAFCO could have an informational or other supporting role in assisting the further development of some of these options in the future. This report also complies with State law for LAFCOs. The Cortese-Knox-Hertzberg Act requires that the Commission conduct periodic reviews and updates of the Spheres of Influence of all cities and districts in Monterey County (Government Code section 56425[e]). It also requires LAFCO to conduct a service review of municipal services before adopting sphere updates (Government Code section 56430). This report includes recommended determinations responding to these legal requirements. The Recommended LAFCO Actions section, immediately below, reflects these determinations. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 5 LAFCO of Monterey County 6 REPORT OVERVIEW Interviews were conducted with officials from each of the agencies. During the interviews, there were common denominators of issues facing the agencies. There were also wide variations to the finances, staffing, and geographic areas served. This study is intended to capture an overview of the complexities and the major issues that the fire and EMS agencies face in the unincorporated areas of Monterey County. Some of the issues could entail extensive additional research. Fundamentally, as the financial underpinning of the fire districts, property tax revenues are mostly inadequate to properly fund most of the districts. This is largely due to Proposition 13 (passed in 1978) and subsequent tax allocation formulas. This has been identified as a foundational structural issue regarding consistent funding that requires action beyond the local level. COVID-19 During the preparation of this report, the COVID-19 pandemic is having a significant global impact as well as impacting all of the agencies. The pandemic is impacting virtually every aspect of the agencies’ personnel, operations, finance, administration and governance. It will most certainly change the landscape of how the agencies do business and it remains to be seen what the new “normal” will be. From a practical perspective, much of what was prepared in this report did not contemplate those impacts since most of the data gathering predates the pandemic. Priorities will need to be adjusted accordingly and additional financial pressure will likely exacerbate some issues, which could have significant impacts to providing services. RECOMMENDED LAFCO ACTIONS The Executive Officer recommends that the Commission consider and adopt a resolution: 1. Finding that the action is exempt from provisions of the California Environmental Quality Act (CEQA) as “information collection” under Section 15306 of the State CEQA Guidelines and based on the determination that this action does not have the potential for causing a significant effect on the environment (Section 15061(b)(3)); 2. Adopting the 2020 Municipal Service Review for all thirteen special districts providing fire protection and emergency medical services in unincorporated Monterey County; 3. Removing the City of Greenfield from the Greenfield Fire Protection District’s sphere of influence and affirming the currently adopted spheres of influence of the other special districts in the Study; and 4. Encouraging all parties in the wider fire/EMS community, and the County of Monterey, to consider and explore the ideas expressed in the Options for Consideration section at the end of this report’s Executive Summary section, and to continue expanding existing partnerships and dialogues, as part of the ongoing effort to support and improve fire/EMS services in unincorporated Monterey County. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 7 KEY FINDINGS 1. Each agency is providing services within their respective jurisdictions. All of those interviewed reported being able to sustain services for at least another five years. 2. The range of possible LAFCO actions (consolidation, formation, dissolution, annexations, detachments) would not likely resolve long term structural funding problems faced by the fire protection agencies and are generally not being requested by the fire agencies as a means of addressing their funding difficulties. 3. 98% of residents in Monterey County live in a city or special district providing fire protection and EMS services. No major inhabited areas in the County are unserved. 4. Special districts providing fire protection and EMS services and volunteer fire companies in unincorporated Monterey County handled 15,334 incidents annually, including structural fires, wildland fires, emergency medical calls, traffic collisions, hazardous materials incidents and others. 5. Over the past 10 years, LAFCO has approved annexations to Cypress, Carmel Highlands, North Monterey County, Monterey County Regional, and South Monterey County Fire Protection Districts (FPDs), as well as other organizational changes such as detaching the City of Greenfield from the Greenfield FPD. Fire agencies and LAFCO find that current district boundaries and spheres of influence (SOIs) are appropriate, and LAFCO staff concurs with this finding. No changes to SOIs are being requested at this time with the exception that this study recommends that the City of Greenfield be removed from the Greenfield FPD’s SOI. 6. Some agencies have struggled with financial sustainability largely because of a funding model based primarily on property tax, which has proven inadequate to support operations. 7. Fiscal health of the agencies varies widely, with the most financially secure agencies concentrated in the Peninsula area. 8. There is a significant financial gap between the cost of operations of primarily volunteer operations and the cost of career firefighter operations. 9. Cachagua and the fire companies on the coast have successful volunteer programs due to their grass roots level recruitment and community connection by their chiefs. However, funding for the primarily volunteer operations is inadequate for equipment and facility replacement. Cachagua and Mid-Coast reported utilizing surplus equipment from other agencies to be able to afford equipment. 10. None of the fire agencies reported having adopted service level standards related to response times or weight of a response. The County General Plan, however, has identified emergency response standards for fire and EMS. 11. The EMS Agency has expressed desire in modifying the countywide ambulance contract’s service model. The local fire districts are concerned that any changes to the service model not adversely affect the agencies’ services or revenues1. Several districts expressed the critical importance of receiving service from the closest ambulance. Further, some of the fire agencies expressed that there may be public models that may provide additional funding into the EMS system. 12. Longer fire seasons and more severe fires along with more people at risk due to growth raise the stakes for wild land fire exposure. 13. There are reportedly inconsistencies between agencies regarding approaches to fuel reduction/vegetation management and related approach to enforcement of clearance requirements. 14. Fire insurance providers have responded to larger, more destructive fires in recent years by dropping fire insurance coverage entirely or raising insurance rates significantly for homeowners and business 1 Section 6.2, Comments on the Administrative Draft includes a letter from the Monterey County EMS Agency dated June 8, 2020 commenting on this key finding. LAFCO of Monterey County 8 owners in high fire risk areas. This has resulted in an acute need for property owners living in high risk areas to seek cost effective fire insurance solutions. 15. The County General Plan requires that a condition of development in the unincorporated area not currently in a fire district is annexation into a fire protection district or restriction of the deed to identify the lack of local fire protection. It is unclear if the policy is consistently implemented and a meeting to follow up is recommended. 16. Some fire protection districts may have difficulty replacing retiring tenured board members due to lack of population in the district, partly as a result of city annexations, which further reduce the remaining in-district population. 17. Continued and expanding growth of tourism, particularly along the Big Sur coast, is resulting in increased service calls for the volunteer fire brigades, as well as the Peninsula-area districts and districts that visitors travel through on their way to the coast.. 18. The Mid-Coast volunteer brigade expressed interest in forming a fire protection district. The Big Sur volunteers wish to remain a volunteer organization. 19. Public Safety radio infrastructure costs have become overwhelming due, in part, to the advent of digital radios. Radio equipment life expectancy has been reduced and coverage diminished due to limited range of digital radios (compared to analog radios). The costs have risen sharply. 20. Monterey County Emergency Communications Department had twelve openings at the time of their interview and is constantly recruiting for qualified dispatch staff while their workload has continued to increase. Photo credit: Big Sur Volunteer Fire Brigade MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 9 OPTIONS FOR CONSIDERATION While LAFCO does not have the authority for implementation of the following options, the observations during the report data gathering process displayed some areas where improvements may be possible. The intent is to illustrate these items in hopes of facilitating the best possible service to the public. 1. State Legislative Advocacy Options a) Encourage County, local fire agencies, Fire Districts Association of California, Cal Chiefs, and California Special Districts Association (CSDA) legislative efforts to include support for funding for special districts that provide fire protection, including initiatives to increase property tax funding to a baseline level, and/or other revenue stream creation. b) Encourage County, local fire agencies, and CSDA legislative efforts to include support for improving the statewide fire insurance issue of dropped coverage and high premiums in high fire risk areas; efforts may include support for legislation that improves the State Department of Insurance’s oversight of insurers. 2. County-Level/Countywide Options a) Consider developing a funding strategy countywide to augment fire protection: Benefit assessment, special tax, sales tax, Transient Occupancy Tax (TOT), property tax transfer. Could be countywide or assistance to individual districts. May include creation of countywide unincorporated area County Service Area (CSA) benefit assessment or parcel tax to fund existing FPDs. b) Support the ongoing coordination of the Fire Safe Council, fire agencies, California Department of Forestry and Fire Protection (CAL FIRE), County Resource Management Agency (RMA), and the Resource Conservation District in their efforts to conduct vegetation management and defensible space projects and inspections. Coordinate a review of existing laws, ordinances and regulations to determine if there are gaps and/or conflicts that should be addressed by a County ordinance regarding vegetation management and related environmental impacts. c) Encourage the fire agencies and County EMS to work collaboratively to research and explore various models for EMS delivery to develop an “outcome-based” system that maximizes alternate revenue sources in the best interest of the patient while recognizing existing fire agency resource deployment.2 d) Conduct a summit/workshop of key leaders in the County and CAL FIRE to communicate key issues to various departments, including district boundaries (Office of Emergency Services (OES), Planning, Building, Communications, EMS, Fire). Outcome would be intended to assure departments have accurate information for interpretation of the General Plan regarding construction/development in areas without local fire protection. e) Facilitate a meeting of Monterey County staff that negotiates the Payment in Lieu of Taxes (PILT) payments and the fire protection agencies that provide local services on the Los Padres National Forest to seek Payment in Lieu of Taxes support from the federal government for the fire agencies. 3. Local Fire Agency Options a) When feasible, each fire agency is recommended to articulate a level of service approved by the agency’s governing body. The purpose is to communicate the agency’s abilities and limitations, given identified funding levels, which helps to give the public a choice regarding the service level they choose to fund. 2 Section 6.2 Comments on the Administrative Draft includes a letter from the Monterey County EMS Agency dated June 8, 2020 and an email from the Pebble Beach Community Services District dated June 9, 2020 commenting on this option for consideration. LAFCO of Monterey County 10 b) Consider expanding the use of city-district Memoranda of Agreement (MOAs) to allow special districts providing fire protection and EMS services to retain the “base” property tax for parcels that are annexed to a city (Example: Monterey County Regional and City of Salinas). c) Review existing automatic aid agreements to assure equity and appropriate response plans and update if necessary, including kind, type and quantity of resource commitment. d) The three special districts in the Salinas Valley (Gonzales, Soledad, Greenfield) all have sparse populations to draw from for board member recruitment as a result of city annexations. Consider consolidation while retaining the contracts with the cities in order to fill board member positions if board member recruitment becomes unsustainable. e) Fire districts to consider annexing adjoining unprotected areas including public lands and/or prepare service agreements with State and Federal agencies (if one doesn’t exist) to assure clear understanding of responsibilities, financial consideration, resource commitments, and liability protections. 4. Communications-Specific Matters a) Explore collaborative solutions among County Emergency Communications Department and the police, fire, and EMS stakeholders to address County Emergency Communications Department resource challenges such as staffing levels, backup center plan, call center facility space needs, and obtaining specialized Information Technology (IT) services and funds for communications equipment and technology. b) Support the continued efforts between the County Emergency Communications Dept. and CAL FIRE regarding the connection of the computer aided dispatch (CAD) systems. This will enhance call transfer times and accuracy, which improves overall communications and assists responders. c) Develop a strategic plan to replace and fund needed radio infrastructure for the fire radio system in coordination with the Monterey County Information Technology Department who oversees the Next Generation Emergency Network (NGEN) radio system. d) Assure policies and procedures are in place for interoperable radio communications between fire units and AMR ambulances, including appropriate command channel utilization. Conduct training on the procedures and assure follow up accountability, coordinating with Fire Communications and Ambulance Communications (AMR). e) Develop a more robust use of Geographic Information System (GIS) for purposes of emergency response, data collection and display of data and explore opportunities for the Monterey County IT Department’s GIS services to work with county fire agencies in collaborative and cost-effective ways. 5. Big Sur and Mid-Coast Areas a) Support collaborative efforts between Mid-Coast and Big Sur Volunteer Fire Brigades. Both organizations share similar values of service to the local community and maintain strong connections with community members and organizations. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 11 Table ES-1 ANNUAL PRIMARY RESPONSE CALLS FOR SERVICE FOR DISTRICTS PROVIDING FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES ISO Public Annual Estimated Area E stimated Total Staffing Number of Fire District Protection Calls for (Square Miles) Population (Volunteers) Stations Classification4 Service Aromas Tri-County FPD 1 7.3 5,800 4 / 4X 6.67 (0) 1 511 Cachagua FPD 108.0 1,000 9 / 10 21 (21) 2 121 Carmel Highlands FPD 9.3 1,075 2 / 9 13.3 (0) 1 204 Cypress FPD 1 1.4 7,600 2 / 9 16.8 (0) 2 1 ,731 Gonzales Rural FPD1 5 8.4 6 50 3 / 3X (5 in City) 18 (14) 1 840 Greenfield FPD2 4 3.2 7 00 5 / 10 28 (20) 1 1 ,573 Mission Soledad Rural FPD3 5 9.6 1,150 3 / 10 (4 in City) 6.5 (0) 1 1 ,442 Monterey Co. Regional FPD 399.6 3 8,350 3 / 10 77 (12) 7 3 ,579 Monterey Peninsula Airport District 0 .8 N/A 2 12 (0) 1 172 North County FPD 122.9 4 2,000 4 / 10 37 (15) 3 3 ,437 Pebble Beach CSD 8 .3 4,100 1 30.2 (0) 2 856 South Monterey Co FPD 637.2 4,600 8 / 10 36.6 (35) 4 455 Big Sur Volunteer Fire Brigade 254.0 4,350 8 / 10 29 (29) 3 303 Mid Coast Volunteer Fire Brigade 4 1.0 2 70 5 / 7B 16 (16) 1 110 County Service Area 74 (EMS) 3 ,771.0 433,000 N/A N/A N/A 37,023 Data Sources: -Estimated Area: LAFCO district maps and Monterey County GIS system - Estimated Population: 2010 U. S. Census data, updated where recent estimates are available or rounded up by approximately 5% to reflect incremental growth since 2010 where post- 2010 updates are not available - ISO Rating: As provided by the Districts - Annual Calls for Service: As provided by the Districts and Monterey County Emergency Communications Department, information from 2018 and 2019 1,2,3 The County does not list calls separately for: 1) the City of Gonzales and the Gonzales Rural FPD, 2) the City of Soledad and the Mission Soledad Rural FPD, and 3) the City of Greenfield and Greenfield FPD. Therefore, the total call volume for the City and its corresponding contracted service area FPD are shown for each. 4 The ISO Public Protection Classification, or ISO Rating, is issued by the Insurance Services Office, Inc. ISO’s Rating gauges the capability of a fire agency to respond to structure fires. ISO collects information on a community’s public fire protection and analyzes the data using a fire suppression rating schedule. ISO then assigns a Rating from 1 to 10, with “1” representing the best protection and “10” indicating no recognized protection. A rural area often receives a lower rating than an urban area due to the longer response times and a scarcity of fire hydrants. Insurance companies use ISO Ratings as a basis for determining property insurance rates. If the listing shows two numbers, unless otherwise noted, the first number is for properties with a credible source of water (usually hydrants) and within 5 road miles of a fire station, and the second number is for properties without a credible source of water. Notes: This table only lists calls referred to the primary response jurisdiction. Additional calls are referred for mutual and automatic aid. The population estimated for Aromas Tri-County FPD is for the entire district, which is within the boundaries of San Benito and Santa Cruz Counties, as well as Monterey County. 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The great majority of this population (approximately 102,825, or 98%) lives within the boundaries of the fire agencies (Fire Protection Districts (FPDs) and Community Services Districts (CSDs)) examined in this study. Most population growth in Monterey County in recent decades has occurred in the cities. The unincorporated population has remained fairly constant, with census population figures of 100,258 in 2000 and 100,213 in 2010. By special district, the largest unincorporated populations are in North County and Monterey County Regional FPDs. Each of these special districts serves about a third of the overall unincorporated Monterey County population. The Association of Monterey Bay Area Governments (AMBAG) does not prepare specific population projections for special districts. However, AMBAG’s 2018 Regional Growth Forecast projected only an overall 2% increase – from about 104,600 to approximately 106,400 in year 2040 – for unincorporated Monterey County. 1.1.2 The Location and Characteristics of Any Disadvantaged Unincorporated Communities (“DUCs”) Within or Contiguous to the Sphere of Influence State law defines DUCs as unincorporated communities with an annual median household income that is less than 80 percent of the statewide annual median household income. The only three unincorporated communities in Monterey County with incomes below 80% of the statewide median income are Boronda, Castroville, and Pájaro. Boronda is within the boundaries of Monterey County Regional FPD, and Castroville and Pájaro are both within North County FPD. No DUCs have been identified within or contiguous to the spheres of influence of special districts providing fire protection service in unincorporated Monterey County. The boundaries of County Service Area 74 (Emergency Medical Services) cover the entire county, including any communities that qualify as DUCs countywide. The existing local government fire protection agencies in the County include within their boundaries most of the County’s inhabited communities. The only significant exceptions are coastal communities south of Carmel Highlands, and scattered communities within the southern Salinas Valley and in the County’s southernmost areas (Parkfield, Jolon). Parkfield is within South Monterey County FPD’s SOI, but its median income levels exceed the DUC threshold. Jolon is near South Monterey County FPD’s district boundary, but does not qualify as a DUC and is neither within nor contiguous to its SOI. South Monterey County FPD annexed San Ardo and San Lucas in 2015. The southern coastal area is served by the Mid-Coast Volunteer Fire Brigade and the Big Sur Volunteer Fire Brigade. These two volunteer organizations have been protecting the area, along with Federal and State firefighters, since the 1970s. There are no identified DUCs in this area. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 19 1.1.3 Present and Planned Capacity of Public Facilities, Adequacy of Public Services, and Infrastructure Needs and Deficiencies (Including 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) Each special district providing fire protection and emergency medical services owns and operates facilities as are warranted and possible within their financial means. The public districts reviewed in this report maintain a total of 25 fire stations, ranging widely in physical condition. Additional fire protection is provided through city, State, Federal, and volunteer firefighting agencies. All agencies also maintain and replace fire apparatus as needed. Specific identified needs, deficiencies, and agency plans are outlined in the individual district profiles in this study. As discussed above, there are no DUCs within or contiguous to the SOI s of the agencies in this study. The special districts are operating at the levels of service that are possible based on available funding within their individual jurisdictions. Some special districts, such as Aromas Tri-County and North County FPDs, have needed to cut staffing levels within the last decade. Agency response times to fire and EMS calls vary. Rural special districts typically have longer response times, due to travel distances and road conditions. None of the special districts in this study currently have adopted level of service standards. County Service Area 74 (Emergency Medical Services) provides funding for the County Emergency Medical Services Agency and, to a smaller degree, the fire districts as first responders. The County EMS Agency contracts for, and monitors, ambulance service throughout the County. This service is provided by American Medical Response West (AMR), except in the Carmel Valley area where it is provided by the Monterey County Regional FPD. 1.1.4 Financial Ability of Agency to Provide Services The demands on a fire protection agency vary due to the size and geography of the agency’s boundaries, land use, demographics, the existence and length of highways, whether the area is included within CAL FIRE’s State Responsibility Area, and other factors. These factors help determine the level of funding required to provide an adequate level of service. Special districts providing fire protection services within unincorporated Monterey County receive a wide range of total revenue, varying from $109 (Cachagua) to $3,067 (Carmel Highlands) per resident, depending on in-district assessed valuation, the date of a special district’s formation, development activity, property sales within the agency’s boundaries, and related factors as outlined in this study. A special district’s fund balance serves as a safety net. According to the most recent information available to LAFCO, the fund balance of the special districts ranges from about $4,000 to $19.3 million. On the low end of this range are the Gonzales, Mission Soledad Rural, and Greenfield FPDs, whose close relationships with the corresponding city’s fire department greatly reduce the need for the district to maintain reserves. District funding levels and specific financial challenges are discussed on an individual level in the district profiles and in an overview comparison in the Executive Summary. In general terms, the Peninsula-area special districts (Carmel Highlands and Cypress FPDs, Pebble Beach CSD) have the highest per-capita revenues and most robust fund balance levels. Aromas Tri-County, North County, and Cachagua appear to be under the greatest financial strain among the special districts evaluated in this study. State law (Government Code section 26909(a)(2)) requires that a special district file an audit with the State Controller and County Auditor within 12 months of the end of the fiscal year or years under examination. Each special district providing fire protection and emergency medical services maintains a schedule for conducting audits of agency revenues and expenditures. County Service Area 74 (Emergency Medical Services) is audited as part of the County’s comprehensive annual financial report. Nine other special districts conduct annual audits, while four – Greenfield, Mission Soledad Rural, and South Monterey County FPDs – conduct audits every two years. The Gonzales Rural FPD is authorized to LAFCO of Monterey County 20 conduct audits every five years because of the simplicity and small size of its budget. Each of the special districts in this study has provided LAFCO with the most recent audit as required by State law, with the exceptions of Mission Soledad Rural FPD, which did not provide its most recent biennial audit for FY 2015-16 and FY 2016-17 and South Monterey County FPD, which did not provide FY 2015-16 information with its biennial audit for FY 2015-16 and FY 2016-17. 1.1.5 Status of, and Opportunities for, Shared Facilities Firefighters are often on the forefront of forging cooperative efforts between local agencies. Individual local agencies have put into place a set of mutual aid and automatic aid agreements with neighboring agencies. The Federal government owns large tracts of land – primarily forest and military lands – where it is primarily responsible for firefighting. The State government, through the Department of Forestry and Fire Protection (CAL FIRE) is primarily responsible for the control of wildland fires in the County. These Federal and State firefighters cooperate with local fire agencies to protect the community. An example of this cooperation is the sharing of fire stations to house both CAL FIRE and local firefighting resources. For many years, CAL FIRE has provided contractual firefighting services to six special districts: Aromas Tri-County, Carmel Highlands, Cypress, Mission Soledad Rural (via the District’s contract with the City of Soledad), and South Monterey County FPDs, and Pebble Beach CSD. All the agencies served by CAL FIRE’s San Benito-Monterey Unit benefit through cost efficiencies derived through shared management services, and they frequently share fire stations and apparatus. In the Salinas Valley, cities and their surrounding rural areas often join together to provide fire protection. The Gonzales, Mission Soledad Rural, and Greenfield FPDs receive fire protection service from the cities they surround. Local firefighting agencies also participate in a large number of other shared resources including fire insurance, workers compensation, the joint purchasing of equipment, fire training, mobile air support, urban search and rescue, and technical rescue. 1.1.6 Accountability for Community Service Needs, Including Government Structure and Operational Efficiencies Six of the FPDs, as well as the Pebble Beach CSD are governed by directors who are elected at-large by voters. While some special districts have contested elections, others routinely only have the same number of candidates as open seats or lack a full slate. If the number of candidates does not exceed the number of available seats, the need for an election is avoided and the Monterey County Board of Supervisors appoints the directors. On November 26, 2018, the Monterey Peninsula Airport District Board changed to a by- District election process. The boards of directors of four fire protection districts - the Carmel Highlands, Mission Soledad, Monterey County Regional, and South Monterey County FPDs - are directly appointed by the County Board of Supervisors. While these special districts may receive less direct input from voters, they are able to save substantial and much-needed funds by not paying for elections. County Service Area 74 (Emergency Medical Services) is a dependent special district governed directly by the Monterey County Board of Supervisors and is essentially a funding mechanism. Consistent with the public notice requirements of California’s Brown Act, public agendas must be posted by all public agencies at a public location a minimum of 72 hours prior to the meeting. State law also requires that agendas be posted on the agency website, if one exists. All special districts must also allow the opportunity for members of the public to directly address the legislative body on any item of interest to the public at every regular meeting. As of January 2020, Senate Bill 929 requires all independent special districts to maintain a website, unless the district passes a resolution claiming hardship for particular reasons each year. All special districts in this Study currently maintain a website with the exception of Greenfield, Mission Soledad Rural, and South Monterey County FPDs. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 21 1.1.7 Any Other Matter Related to Effective or Efficient Service Delivery, As Required by Commission Policy LAFCO of Monterey County has adopted Sphere of Influence Policies and Criteria within its Policies and Procedures Relating to Spheres of Influence and Changes of Organization and Reorganization. These policies and criteria were adopted, in conformance with State law, to meet local needs. The proposed affirmations of the existing fire protection district spheres of influence are consistent with local policies and criteria. 1.2 SPHERE OF INFLUENCE DETERMINATIONS – PER GOVERNMENT CODE SECTION 56425(e) This chapter provides recommended Sphere of Influence determinations for the special districts reviewed in this study (ten FPDs, Monterey Peninsula Airport District, Pebble Beach CSD, and County Service Area 74). The Executive Officer recommends removing the City of Greenfield from the Greenfield FPD’s sphere of influence, to reflect the now-effectuated citywide detachment from the District. For the other agencies, the Executive Officer recommends that LAFCO affirm the current spheres of influence without change. 1.2.1 The Present and Planned Land Uses in the Area, Including Agricultural and Open- Space Lands Fire protection agencies in unincorporated Monterey County face a variety of challenges posed by an extremely large geographic area (3,300 square miles) with a variety of land uses and topographies. The current and planned future land uses of the County are guided by the general plans of the County and the twelve cities within the County. In general, and based on extensive consultation with the fire agency representatives, fire protection agencies in unincorporated Monterey County have adequate spheres of influence and boundaries. All residents living within Monterey County’s cities, and approximately 98% of unincorporated County residents, are within the boundaries of a local agency providing fire protection service. All County residents reside within the boundaries of County Service Area 74, which supports emergency medical services countywide. Large geographic areas within the County that are not now within local agency’s fire protection boundaries are within a Federal or State Responsibility Area. CAL FIRE and the Federal government take primary responsibility for protecting these areas from wildfires. 1.2.2 The Present and Probable Need for Public Facilities and Services in the Area The needs for fire protection and emergency medical services are significant in the unincorporated area and throughout the County. Most population growth and development activity in Monterey County occurs within the cities. However, city growth can have an indirect effect on fire district services, in that many city residents commute or travel through unincorporated areas on a regular basis, increasing the needs for special district services such as response to traffic collisions or other medical emergencies. Of the many unincorporated communities that exist in Monterey County, two of which – Moss Landing and Castroville – are potentially substantial growth areas. These communities are located within the boundaries of North County FPD, which has experienced acute financial difficulties in recent years. 1.2.3 The Present Capacity of Public Facilities and Adequacy of Public Services that the Agency Provides or is Authorized to Provide The present and probable need for public facilities and services varies for each local public agency providing fire protection service. The level of service provided by each special district varies according to the service area’s needs and available revenues. The existence of mutual and automatic aid agreements allow neighboring agencies to assist each other in meeting regional needs. The dual response from both a fire unit (engine) and an ambulance also helps to ensure adequate response to medical emergencies, which represent the majority of calls. LAFCO of Monterey County 22 1.2.4 The Existence of Any Social or Economic Communities of Interest in the Area, if the Commission Determines That They Are Relevant to the Agency For purposes of this review, a relevant “community of interest” is any group or entity in an unincorporated area that shares common social or economic interests with an area served by a fire protection or emergency medical services district, and that could be potentially annexed to that district or added to that district’s sphere of influence. There are no social or economic communities of interest in the area that have been determined to be relevant to the district. Several remote and sparsely populated areas of unincorporated Monterey County are not within the boundaries of a special district providing fire protection and EMS services. These rural areas are generally within the State or Federal Responsibility Area for wildfire protection. There appears to be little perceived need or interest, on the part of nearby agencies or the residents of these areas, in adding these areas to the fire agencies. CAL FIRE provides wildland fire protection, and vast stretches of Federal open space and military lands are protected by Federal firefighters. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 23 [This page left blank intentionally.] LAFCO of Monterey County 24 SECTION 2: FIRE PROTECTION ORGANIZATION 2.1 Fire Service Organization and History There is no legal mandate within California law for county government to provide fire protection in unincorporated areas. In counties such as Monterey County, where county government does not provide local fire protection services, communities in unincorporated areas formed community services districts, fire protection districts or fire companies to provide local fire protection services. These were originally primarily grassroots, volunteer-based organizations that provided fire protection services in the rural areas. Several gradual changes over decades have led to the current state of fire services in the unincorporated area: • Increase in demands for service: EMS services; traffic collisions; hazardous materials; wildfire intensity has increased; terrorism. • Population increases in many areas and corresponding increases in structures, including in the wildland/urban intermix areas, which adds increased emergency incident volume. • Increase in public expectation for services. • A shift from “community based” volunteers to “intern based” volunteers. • Significant cost difference between volunteer and career operations. • Growing costs of CalPERS and other employee benefits. • Increased training and safety requirements for fire personnel. • Cost increases of facilities, apparatus and equipment, including radio communications. • Reliance on property tax as the primary source of revenue to provide fire services, which is mostly inadequate more than forty years after Proposition 13. • Limited ability within the law to raise other revenue sources. • Annexations by cities that reduce revenue to fire protection in some cases. • Increased regulatory requirements placed on local fire districts regarding administration and finance. • Regulatory requirements that increase the number of personnel at scene to conduct fire operations. • Topography, steep terrain, large amounts of public lands, and vast rural areas with agricultural land make for a diverse and difficult to serve area. • As the fire protection systems have evolved, they have each derived local solutions to deal with many of the listed issues. • Monterey County Regional is a culmination of several successful consolidations, but is at a tipping point and cannot take on more without augmented revenue. • North County and Aromas are working on solutions for fiscal shortfalls, but still do not have sufficient revenue to sustain the current level of service. • Gonzales, Soledad and Greenfield contract individually with the respective cities. These contracts benefit each special district and city. Each city receives a reliable funding source (property taxes) from the special district, while each special district receives continued fire protection and EMS service even if their boundaries and revenues diminish through city annexations. • Cachagua, Mid-Coast and Big Sur actively fundraise to support their operations and are staffed by volunteers. • Cypress, Pebble Beach and Carmel Highlands retain their governance autonomy while utilizing a contract with CAL FIRE to manage all three in a coordinated manner. • South County covers a very large rural area and is staffed exclusively by volunteers and is managed by CAL FIRE. • CAL FIRE contracts to provide services for Aromas Tri County, City of Soledad/Mission Soledad, South Monterey County, Pebble Beach, Cypress and Carmel Highlands and dispatch services for Cachagua and Mid-Coast. Service levels vary by special district. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 25 2.2 Previous LAFCO Actions The Commission approved the previous countywide fire and EMS study in March 2012. Since then, several important changes to agency boundaries and service delivery models have occurred, as further described below. The date shown is the date that LAFCO approved the change. The annexations cited below resulted in a cumulative 110.5-square-mile total reduction of unprotected area in unincorporated Monterey County. Notably, two of these actions, both approved in 2015, resulted in disbandment of two volunteer fire companies (San Ardo and Spreckels) out of the four that had existed at the time of the 2012 study.3 Carmel Highlands and Cypress FPDs, March 2013: Following up on sphere of influence amendments that were an outcome of the 2012 study, the two fire districts annexed lands adjacent to their boundaries, thereby reducing the amount of unprotected area in the Carmel and Carmel Highlands areas by about 7.2 square miles in total. 1. Carmel Highlands FPD, approximately 1,975 acres (LAFCO file 2012-05). 2. Cypress FPD, approximately 2,610 acres (LAFCO file 2012-06). South Monterey County FPD, September 2015: In July 2013, the District proposed to annex all of its existing sphere of influence, consisting of approximately 870 square miles, roughly one quarter of the total land area in Monterey County. Facing significant opposition from property owners in Parkfield and other outlying areas of the annexation proposal, the District ultimately opted to greatly scale back the proposal to an approximately 63-square-mile area more closely adjacent to the existing district boundary. The final annexation area included the 101 corridor and the unincorporated communities of San Lucas and San Ardo. As part of this annexation, and with the full support of the volunteers, the District absorbed the formerly independent San Ardo Volunteer Fire Company. (LAFCO file 2013-05) Monterey County Regional FPD, December 2015: In a 282-acre concurrent sphere amendment and annexation, Regional annexed the unincorporated community of Spreckels, which was heretofore an “island” within Regional’s boundaries. The community of about 700 residents was previously served by the Spreckels Volunteer Fire Company, with financial support from the Spreckels Community Services District. The CSD had also contracted with Regional for fire and EMS response for a period of several years before the annexation since the volunteers’ ability to respond to calls had been in decline. As a companion action to the annexation, the Spreckels CSD agreed to permanently deactivate its fire protection powers, thereby ending the contractual relationship with the volunteers and the existence of the Spreckels volunteers as a firefighting agency. (LAFCO file 2015-01) City of Greenfield – Citywide Detachment from Greenfield FPD, January 2017: Following about two years of planning, the City opted to form its own municipal fire department and detach from the Greenfield FPD. The Fire District, which includes the rural unincorporated lands surrounding the City, had been experiencing challenges from increasing service demands and inadequate funding for years. Through a cooperative partnership with the District, the City assumed ownership of the former GFPD fire station and equipment. The GFPD remains in existence in the outlying unincorporated area, essentially as a revenue- collecting entity. Most of its annual revenues are turned over to the City in exchange for receiving fire and emergency medical services, by contract, from the City’s fire department. The GFPD is governed by an independent board of directors, but has no staff, facilities, or equipment of its own, as the City provides all fire protection and emergency medical services. In this respect, the Greenfield service model is now similar to the City-District relationships for fire and EMS that exist in Soledad and Gonzales. In May 2017, the City voters narrowly passed a parcel-based special tax to fund fire and EMS, enabling the new City fire department to be financially feasible. (LAFCO file 2016-02) Monterey County Regional and North County FPDs, October 2018: As was discussed in the 2012 study, an approximately three-square-mile unincorporated area bounded by the City of Marina, North County FPD, and Monterey County Regional FPD had not been included in either special district’s sphere or 3 Mid-Coast and Big Sur Fire Brigades remain active. Cachagua FPD, while an all-volunteer district, is a public agency. LAFCO of Monterey County 26 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 27 previous annexations. This area included the Monterey Regional Waste Management District and Monterey One Water facilities, as well as the unincorporated portion of the former Armstrong Ranch (long used for grazing; more recently being farmed by a new owner, RAMCO Enterprises LP). The two fire protection districts filed overlapping/“competing” applications to annex this area in early 2018. Ultimately, LAFCO approved annexation of the two major public facilities to North County and most of the other lands to Monterey County Regional. Monterey County Regional’s annexation included two other separate, unrelated outlying large areas of mostly ranchlands (Chualar Canyon and Limekiln Road areas), south and east of its then-existing district boundaries. • Monterey County Regional FPD, approximately 36.6 square miles (LAFCO file 2018-01) • North County FPD, approximately 3.7 square miles (LAFCO file 2018-02) 2.3 Wildland Fire Responsibility 2.3.1 State Responsibility Area (SRA) The State Board of Forestry is responsible for classifying all lands within the State for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the State, per California Public Resources Code Section 4125. SRA is to include forested lands and land that is generally considered wildland. SRA does not include incorporated cities or federal lands. CAL FIRE is the department within State government responsible for carrying out the mandate for wildland fire protection within SRA. The law also allows CAL FIRE to provide fire protection services to local communities and the federal government under contract. When contracting to provide services, authority is delegated to CAL FIRE by the contracting agency. CAL FIRE provides seasonal staffing during the fire season at the State fire stations, including remote stations in South Monterey County. CAL FIRE will respond to reported fires in the SRA and may provide EMS and other incident responses when available. SRA may overlap some or all of a special district’s jurisdiction, as is the case in unincorporated Monterey County. In such instances, a cooperative relationship is necessary to coordinate efforts. Maps of SRA are required by statute to be updated every five years. 2.3.2 Federal Responsibility Areas (FRA) Federal Responsibility Areas (FRA) are lands owned and controlled by the federal government where the federal government has the financial responsibility for preventing and suppressing fires. The agencies that control federal lands within Monterey County include: • U.S. Forest Service: Los Padres National Forest • National Park Service: Pinnacles National Park • Dept. of Defense: Fort Hunter Liggett, Defense Language Institute, Presidio of Monterey • Bureau of Land Management: Various • California National Guard: Camp Roberts 2.3.3 Local Responsibility Areas (LRA) Fire protection in Local Responsibility Area is the responsibility of local government (city, county, special district). LRA includes land within incorporated cities and any land not designated as SRA or FRA. All of the above definitions regarding fire protection responsibility refer to wildland fires. That said, a cooperative response is typical since structural, vehicle and other fires have been known to spread into the wildland areas. EMS, traffic collisions, hazardous materials response, rescue services and other emergency incidents have separate legal authorities and jurisdictional responsibilities. LAFCO of Monterey County 28 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 29 2.3.4 Unprotected Areas Because the County is not mandated to provide fire protection, some areas of the County have no fire agency responsible for fire protection at the local level. These unincorporated areas have been identified commonly as “unprotected areas” for purposes of identification. Communities that desired to have fire protection have petitioned to form fire protection districts, fire companies or community services districts to provide services or have annexed in to existing special districts providing fire protection and EMS services. Each of those local agencies has evolved to their current status. Unprotected areas may or may not overlap with State or Federal Responsibility Areas. The Public Resources Code (Section 4001-4958) identifies CAL FIRE as having primary responsibility for wildland fire protection in SRA. Since CAL FIRE’s primary responsibility is for wildland fire protection in SRA, they may not be in a position to provide local “all risk” fire protection services such as EMS, rescue, hazardous materials response and structural fire protection in the off season. CAL FIRE often uses seasonal fire stations to provide wildland fire protection, and there may not be a resource available for response during the off season or when resources are being utilized on wildland fires elsewhere. Annexation of unprotected areas into existing special districts may put added financial pressure on existing special districts that are already having fiscal difficulties and the original formation was to provide increased level of services to the area designated. The great majority of unprotected area in Monterey County lies within seven distinct areas as described below. For the most part, these areas are uninhabited or sparsely inhabited, are located within the State or Federal Responsibility Areas (SRA/FRA), and consist largely of remote and difficult-to-access lands. Because of these factors, most of these areas are outside any existing special district’s sphere of influence. The special districts providing fire protection and EMS services have expressed little or no interest in annexing them or adding them to their spheres as an interim step toward annexation. The main unprotected areas in Monterey County are: 1. State Parks lands west of Marina and Seaside (Fort Ord Dunes State Park) 2. Bureau of Land Management-administered lands in Fort Ord National Monument (uninhabited; in FRA) 3. Lands south of Carmel Highlands and east of Mid-Coast Volunteer Fire Brigade (several parcels of privately owned lands in rugged terrain) 4. Los Padres National Forest lands, the Tassajara, Arroyo Seco, and Jolon unincorporated communities, Fort Hunter Liggett U.S. Army base, and nearby areas 5. Ranchlands to the east of Cachagua FPD, largely on steep terrain along the western slope of the Sierra de Salinas branch of the California Coast Range 6. Ranchlands along the western slope of the Diablo Range on the east of the Salinas Valley, beyond the eastern boundaries of the Gonzales Rural and Mission-Soledad Rural FPDs 7. Ranchlands east of the 101 freeway, extending to the eastern and southern county lines and including the communities of Parkfield and Priest Valley (Note: this area has long been within South Monterey County FPD’s sphere of influence. The District proposed to annex all lands within its sphere in 2013. Facing opposition, the District greatly reduced its annexation proposal to focus primarily on San Lucas, San Ardo, and the 101 corridor. LAFCO approved the reduced annexation in 2015). Some of the unprotected areas are publicly owned including State Parks and Federally owned land. In some cases, the incident volume can be significant, typically based on population influx. Adjoining local agencies are called upon at times to provide fire and medical services within those jurisdictions. In such cases, the adjoining agency may be able to annex the public land into the special district, or at least have an agreement for response, if one doesn’t already exist. While annexation of public property does not provide any property tax revenue, annexation would give clear authority for incident command and potentially for code enforcement. Absent annexation, an agreement should include, at a minimum, financial agreement between the agencies, command and control authorities for an incident, level of resource commitment, and extension of liability protections to the special district. LAFCO of Monterey County 30 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 31 2.3.5 “Heat Map” A heat map illustrates emergency incidents by location. This information is helpful to illustrate the volume of incidents in a given area relative to fire station locations and resource deployment from a historical perspective to capture trends. Each incident is mapped by location. A cluster of incidents is designated by shading on the map, which intensifies based on the volume of incidents at that location. Intense clustering of incidents could indicate a need for added resources to provide reliable timely emergency services and/or whether incident volume exceeds reasonable expectations for a volunteer operation. A heat map of Monterey County was prepared and illustrates that, for the most part, the incident locations are consistent with populated areas, tourist destinations and transportation corridors. The fire stations are generally located in a strategic manner overall. Further refinement would be necessary at the local level to determine specific needs. There does not appear to be a direct relationship between the number of incidents and the financial condition of the agencies. Incident data for the study was derived from the computer aided dispatch programs from Monterey County Emergency Communications Department and CAL FIRE. The data includes all emergency incidents for calendar year 2019. A link to an interactive heat map can be found at: https://maps.co.monterey.ca.us/portal/apps/Styler/index.html?appid=972ffa7e561548399941cac7bfa59082 2.3.6 Fire Insurance Wildfires in recent years have caused huge losses to the fire insurance industry in California. During various interviews with fire officials, fire insurance was cited as a factor that many residents reported as an issue. Some insurance companies are not renewing policies while others have had premiums increased dramatically. Since lenders on property typically require fire insurance coverage, property owners are left in a position with few options. Historically, insurance companies utilized ratings provided by the Insurance Services Office (ISO) based on the rating of the local fire agency. The updated rating method often uses assessments of individual properties based on a “risk meter”, including internet mapping and/or site visits. Structures located in the wildland interface and intermix areas are most at risk for substantial rate increases, if the insurance company renews the policy. One organization that property owners can access, in the event of cancellation of a fire insurance policy, is the California Fair Access to Insurance Requirements (FAIR). The FAIR Plan is an association located in Los Angeles comprised of all insurers authorized to transact basic property insurance in California. Coverage is available to all California property owners, provided submission guidelines are met. The FAIR Plan provides insurance as a last resort, and should be used only after a diligent effort to obtain coverage in the voluntary market has been made. There is no public funding, or taxpayers’ monies involved. The FAIR Plan is not a state agency. LAFCO of Monterey County 32 2.3.7 Vegetation Management, Wildland Fuel Reduction, Clearance Monterey County has a history of large, damaging wildland fires. The three main influencing factors on wildland fires are fuel (vegetation), slope and weather. Since fuel reduction is the one element that can be impacted, vegetation management and clearance around structures are key factors to address. A number of agencies in Monterey County are actively involved in various activities to reduce wildland fuel loading. A variety of strategies, methods and projects have been deployed in an effort to reduce the threat of wildland fires, and to protect structures in the intermix areas. Some examples include: • CAL FIRE is managing some significant shaded fuel break projects at strategic, high risk locations. • Local fire agencies and CAL FIRE conduct property inspections and implement community projects. • Fire Safe Council of Monterey County coordinates projects and is a conduit for fuel reduction grants. They also coordinated publication and updating of the Monterey County Community Wildfire Protection Plan4. • County Public Works is working on roadside clearance with priority given to roadways considered to be primary escape routes. • Monterey County Resource Conservation District coordinates fuel clearance projects and is a resource for non-native plant species removal. • Monterey County RMA is coordinating with agencies related to vegetation clearance and related impacts. The range of projects includes everything from individual property owners clearing around their home to miles of shaded fuel break, which is essentially clearing the undergrowth in an effort to provide a place to stop a fire in strategic locations. Each area of the County is unique in the various aspects that impact fire behavior. Variations in type of vegetation, slope, and microclimate weather all play a role in fire spread potential. Density of structures, road access, water supply, and available timely fire suppression resources also impact the fire spread potential. These complexities require that each area is uniquely addressed to best fit the planned mitigation. Other complications include funding, environmental impacts, available resources to conduct the work effort, and the philosophical view of the property owner. During the interview process, some of those interviewed expressed some concerns: • Whether there is a need for the County to adopt an ordinance related to vegetation management to cover gaps in existing laws/regulations. • Philosophical approach to enforcement of laws/regulations regarding clearance around structures. • Varied approaches to enforcement by the different fire protection agencies since some of the agencies do not have adequate staff resources to provide full fire prevention services. While outside of the specific scope of this report, the recommendation is for the various parties to conduct a workshop summit on the matter. The purpose would be to come up with a plan for moving forward to address the issues and establish responsibility for carrying them out. A key output for the group would be to review existing laws, ordinances and regulations to determine if there are gaps that should be addressed by creating a County ordinance regarding fire prevention and vegetation management. 4 http://www.firesafemonterey.org/uploads/1/0/6/5/10653434/mccwpp_november_2010_v2_signed_updated_appx-d_6-3-2019.pdf MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 33 2.4 Fire Protection Districts California Fire Protection Districts (FPD) are “single-purpose” special districts established under sections 13800-13970 of the California Health and Safety Code (Principal Act). These districts are governed by an elected or appointed Board of Directors and have specified boundaries. The statutes identify the process for formation, governance, finance and the general powers and duties of an FPD amongst other parameters. FPDs may be formed of incorporated or unincorporated, contiguous, or non-contiguous territory. FPDs may levy taxes with voter approval, incur bonded indebtedness for acquisition, construction, completion or repair of district facilities, and enter into contracts. The most common administrative model for FPDs is for the fire chief to also be the chief administrator and report directly to the governing board of directors. In many areas of the State, FPDs were formed as a method of providing fire protection in areas where little other government services were available. At their inception, most were formed as primarily volunteer organizations. As population growth and demand for services has increased, many of these volunteer organizations have morphed into fire agencies with full-time career staff. There are currently 346 FPDs in California5 and ten fire protection districts serving unincorporated areas of Monterey County. 2.5 Mid-Coast and Big Sur Volunteer Fire Companies (Brigades) The Mid-Coast Volunteer Fire Brigade and the Big Sur Volunteer Fire Brigade are the only two remaining all-volunteer fire companies in unincorporated Monterey County. Together, their self-identified service areas are the largest and most significantly populated section of the county that is outside the boundaries of either a city or a special district legally obligated to provide fire protection and emergency medical services. As private nonprofit organizations rather than public agencies, they are not regulated by LAFCO. However, the fire companies must register with the Operational Area Fire and Rescue Coordinator and the Board of Supervisors is authorized to regulate them. During the interview process, Mid-Coast expressed some interest in forming a fire protection district to serve its service area. Big Sur expressed that they have withstood the challenges of recruitment, retention, and rising costs for the past 50 years and will continue to withstand these challenges. At this time, Big Sur is not interested in forming a special district to provide fire protection services in its service area. The Big Sur coast has experienced a boom in tourism within the last three to five years. Even without this recent surge, the two volunteer groups have long operated under a unique challenge of providing services to a large in-district visitor “population,” with revenues funded mostly by annual donations by Big Sur-area residents and businesses.6 Admirably, both volunteer groups have successfully provided services along the Big Sur coast’s extensive and rugged terrain, using a volunteer-based model, since the 1970s. They each report that the majority of their incidents are related to tourism and visitors to the area. While both of the fire companies are currently able to sustain their operations, Mid-Coast in particular expressed concerns for the long-term sustainability of the current model. 2.5.1 Potential District Formation The possibility of forming a new public fire agency to serve the Big Sur coast is one potential response to the numerous and varied challenges of providing fire and EMS operations in this area. In preparing the current study, LAFCO met with Mid-Coast and Big Sur representatives and discussed the potential feasibility of eventually adapting one or both volunteer groups into a public agency – either a Fire Protection District (FPD) or a Community Services District (CSD) with a broader range of other potential powers and services (e.g., road maintenance, lighting, parks and recreation) that may benefit Big Sur communities. Currently, formation of a public district (new FPD or CSD) for fire protection and EMS in the Mid-Coast or Big Sur area is not a workable option. Mid-Coast has expressed interest in changing from a volunteer agency to a public district. However, the potential feasibility of a stand-alone Mid-Coast district would be severely constrained by a limited population base and small number of parcels within its service area. 5 Little Hoover Commission Report, Special Districts: Improving Oversight & Transparency Report #239, Aug. 2017 6 Other, smaller funding sources include annual Proposition 172 fund allocations, grant funds as available, and in- kind donations of surplus equipment by other fire agencies from time to time. LAFCO of Monterey County 34 Formation of a new fire district that would encompass both Big Sur and Mid-Coast may have a greater likelihood of being economically feasible. However, the Big Sur Fire Brigade’s letter, provided in section 6.2 of this study, emphatically expressed Big Sur Fire’s view that a fire district is unnecessary, economically infeasible, and does not make sense for Big Sur, and that their agency wishes to remain a volunteer organization. Based on these facts, this section is presented solely for informational purposes. Formation of a new public agency such as a special district is a significant undertaking and commitment. In Monterey County, new public agencies are formed quite infrequently. The most recent formation of any special district in Monterey County was in 2005, for East Garrison CSD. The most recent formation of a fire protection district in this county was nearly thirty years ago (Cachagua, 1992). Formation of a special district such as a CSD or FPD may be initiated by either one of two methods: 1. By petition of the voters within the geographic area that the proposed new special district would include, subject to minimum thresholds (for a fire protection or community services district, 25% of registered voters with the proposed district’s boundaries must sign), or 2. By resolution of an existing public agency whose jurisdiction includes the lands that would be within the proposed new special district’s boundary. The initiating resolution or petition, as well as an application and a legally required “plan for providing services” demonstrating how the proposed special district will function, are submitted to LAFCO. Of key importance, the application and plan for services must quantify the agency’s anticipated annual expenses and revenues – including any annual benefit assessment or special parcel tax that may be proposed to augment the new special district’s revenues – and demonstrate that the proposed special district will be financially feasible. Following a thorough review of the proposal by staff, LAFCO holds a noticed public hearing on the proposed special district formation. If LAFCO approves the formation, that approval is subject to a subsequent LAFCO hearing for protest proceedings. Should a majority protest occur, the proposal is automatically terminated. Otherwise, LAFCO’s approval of the special district formation proceeds to a confirmation election conducted by the County of Monterey Elections Department at a general or special (typically by mailed-in ballot) election7. The new special district’s formation becomes final if a majority of the registered voters in the proposed territory vote in the affirmative. 2.5.2 Concurrent approval of a funding mechanism, if needed for district feasibility Since special districts formed after Prop 13 don’t receive any of the base property tax (unless the County agrees to a property tax transfer), a method of sustainable funding is necessary to pay for services. LAFCO may approve a proposal that includes the formation of a special district where the commission has determined that the proposed special district will not have sufficient revenue, provided that the commission conditions its approval on the concurrent approval of a special tax or benefit assessment that will generate the needed revenues (i.e. the special district formation question and the benefit assessment or parcel tax to fund the special district would typically be presented on the same ballot). In approving the formation proposal, LAFCO would provide that, if the voters or property owners do not approve the special taxes or benefit assessments, formation of the proposed special district shall not proceed and take effect. Thus, at the election stage, if the voters were to approve the special district formation but not a related and necessary funding mechanism (benefit assessment or parcel tax), then this condition of LAFCO’s approval would not be met, LAFCO would not be able to record a certificate of completion for the special district formation, and the proceedings would terminate. 7 For a FPD formation, the requirement for an election may be waived, under certain conditions, if the formation was originally initiated by petition, and the petition was signed by at least 51% of registered voters within the proposed district’s territory. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 35 2.5.3 Governance In general, a new CSD or FPD must have a five-member board of directors. Under certain circumstances, a FPD’s board may be reduced to three members. The directors may be elected or – in the case of FPDs – they may be appointed by the County Board of Supervisors. Since 2006, new CSDs generally must have an elected board. One exception to this requirement is that the Board of Supervisors may serve as a new CSD’s initial board of directors, and may even continue in that capacity long-term if the in-district registered voters elect to remain a dependent special district of the County. 2.5.4 Cost and Finance Assuming that the operations will remain as primarily volunteer based, a baseline minimum budget of $250,000 per station is necessary to cover basic costs. This assumes covering insurance, protective equipment, maintenance, other operational/administrative costs, and some funding to replace apparatus. A sustainable revenue source will be necessary to support these costs. One basic example is a voter approved special tax to generate $500,000 for operations. There are approximately 1,341 parcels within the proposed area. The basic budget of $500,000 would indicate a necessity of $373 per parcel utilizing a flat rate formula. The parcel count is relatively low for the size of the area due to large parcel sizes and the amount of publicly owned land. 2.5.5 Other Considerations As a public agency, special districts are required to meet some mandates that are designed to assure transparency and sound fiscal management. There is a cost to meet those requirements, some of which include: • Posting and conducting public meetings • Elections • Financial audits • Design and maintenance of a web site • Ethics training Because fire companies are not subject to the public agency requirements, they avoid these costs. The fire companies, however, are not authorized to ask the voters to approve funding measures, conduct public elections and have limits on public funding sources. Thus, the fire companies must rely on donations and fundraising as significant sources of revenue. Another concern related to the formation of a special district is that donations would not likely be as robust since businesses and community members may view the payment of a benefit assessment as a replacement to donations rather than as additional revenue. In other words, people may be less likely to make voluntary contributions if they are paying for an assessment for the service on their tax bill. 2.6 Community Services Districts Community Services Districts (CSDs), formed under California Government Code Section 61000 et. seq., may provide a variety of services to the public based on the authorizing statutes, including fire protection, water, wastewater, solid waste management, lighting, and other services. CSDs may provide some or all of the services that the enabling statutes authorize. In order to provide other authorized services not currently provided (known as latent powers), the special district applies to LAFCO for activation of a latent power. LAFCO has the authority to approve or deny the request to activate latent powers by a special district. CSDs may levy taxes and incur bonded indebtedness with voter approval and may establish service charges, borrow funds and enter into contracts with action by the Board of Directors. Most CSDs have a general manager that reports to the governing board of directors. The district fire chief and other district department heads report to the general manager. In some small CSDs, the general manager may be responsible for department functions as well. One CSD in Monterey County provides fire protection services, Pebble Beach CSD. The District contracts to CAL FIRE for local fire protection services. LAFCO of Monterey County 36 2.7 Airport District The Monterey Regional Airport District is a special district formed to manage and operate the Monterey Regional Airport. Fire protection for aircraft, district facilities and property is currently provided by the City of Monterey Fire Department under contract with the Airport District. 2.8 Volunteer Fire Companies Volunteer fire companies are formed under Section 14825 of the California Health and Safety Code. An important distinction is that fire companies are not considered public agencies, and as such, are not required to meet many of the mandates that public agencies are required to meet. Consequently, they are not subject to LAFCO review of boundaries. They are required to be authorized by the Board of Supervisors. There are two existing fire companies in unincorporated Monterey County along the Big Sur coast (discussed above). 2.9 Resource Conservation District (RCD) of Monterey County The mission of the RCD is to conserve and improve natural resources, integrating the demand for environmental quality with the needs of agricultural and urban users. The RCD is guided by a Board of Directors who are appointed by the County Board of Supervisors to serve voluntarily and represent a broad spectrum of experience including farming, ranching, financial and non-profit land conservancy management. Depending upon available grant funds, the RCD employs multiple staff members with diverse technical backgrounds to support implementation of the RCD mission.8 The RCD is actively working on vegetation management as a method of fuel reduction for fire safety. 2.10 County of Monterey Four agencies within the County Monterey government structure provide allied and cooperative services. 2.10.1 Monterey County Emergency Medical Services (EMS) Agency The mission of the Monterey County EMS Agency is to “enhance, protect, and improve the health of the people in Monterey County by regulating and collaboratively planning, and continually improving the quality and stability of the emergency medical services system.” One of the goals of the EMS Agency’s Strategic Plan is to transition to a quality improvement and data- based EMS System. The EMS Agency supports the Triple Aim, which is a framework developed by the Institute for Health Improvement that describes that health systems must simultaneously pursue three goals, which include: improving the quality of healthcare and the health of populations, reducing the cost of health care, and improving patient satisfaction. 9 Many of the information systems utilized by the EMS Agency, first responders, Ambulance Communications Center and hospitals are evolving to be able to share information to meet these goals. 2.10.2 Monterey County Emergency Communications Department (ECD) The primary purpose of the ECD is to receive and process 9-1-1 calls for service and coordinate the response of emergency equipment and personnel. The Center is the primary Public Safety Answering Point for all 9- 1-1 calls in both the incorporated (cities) and unincorporated areas of the County. City of Carmel-By-The- Sea is a primary Public Safety Answering Point as well. Fire units are dispatched to all calls in their jurisdiction, including medical emergencies, along with transferring medical calls to the ambulance contractor’s dispatcher, AMR. AMR is collocated at the ECD. Depending on the location, some calls are transferred to CAL FIRE for dispatch of fire units. A connection between computer aided dispatch (CAD) systems has been approved. The purpose is to speed up the transfer of 9-1-1 information between dispatch centers to avoid any delays. CAL FIRE is moving forward 8 https://www.rcdmonterey.org/mission 9 Monterey County EMS Agency Strategic Plan, December 2017 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 37 with a scope of work with their CAD vendor to move the project ahead. ECD remains standing by with an approved scope of work and waiting for direction with its vendor. Recently enacted legislation, AB 438, took effect on January 1, 2020. The bill clarifies responsibilities for dispatching of emergency medical resources, including fire units and ambulances. The bill “prohibits a public agency from delegating, assigning, or contracting for “911” emergency call processing services for the dispatch of emergency response resources unless the delegation or assignment is to, or the contract or agreement is with, another public agency.”10 The bill included a “grandfather” clause provided that a contract for 9-1-1 services was in place on or before January 1, 2019 and with concurrence or the public safety agencies that provide pre-hospital emergency medical services. This legislation will likely influence important decisions in Monterey County related to emergency medical dispatch and the related approach. During our interview, ECD staff reported an ongoing difficulty with recruiting and retaining qualified dispatchers. At that time, they were twelve positions down from their budgeted level, which causes significant overtime and has an impact on morale. 2.10.3 Monterey County Resource Management Agency (RMA) RMA Planning and Building staff work cooperatively with fire agencies on permitting/fire plan checks when a structure is being built inside a fire district. County General Plan policies require annexation of new development into a fire protection district as a condition of approval or adding deed restrictions to notify property owners of an absence of fire protection district services when annexations are not feasible. It is not clear if this policy is being implemented in the “unprotected areas” and a meeting of the principle parties is recommended to assure the policy is being implemented. RMA staff has been working cooperatively on vegetation management projects for fuel reduction including reviewing projects. Public Works staff reported conducting roadside clearance in high risk areas as well as staff oversight of other clearance projects. 2.10.4 Monterey County Office of Emergency Services (OES) The Office of Emergency Services coordinates emergency preparedness, response and recovery functions related to disasters. The staff operates the Emergency Operations Center, provides warning and alerting information, maintains inventories of critical assets, including supplies and equipment for emergencies. They also develop emergency operations plan and preparedness for emergencies. Grants for emergency preparedness and response are often channeled through OES. 2.11 Alliances The agencies within the County have a long history of cooperation to coordinate activities. Some examples of the associations and alliances include: • Operational Area Fire and Rescue Coordinator to coordinate mutual aid • Monterey County Fire Chiefs Association • Monterey County Training Officers Association • Monterey County Fire Prevention Officers Association • Emergency Medical Care Commission • Dedicated Fire Dispatch (DFD) Committee (ECD) • Fire Safe Council Each with a different purpose, this partial list of collaborative alliances helps to coordinate issues of mutual concern. 10 California Government Code Section 53110 LAFCO of Monterey County 38 2.12 Staffing One of the biggest challenges facing special districts providing fire protection and EMS services is the cost of transitioning from volunteer to full-time firefighter staffing. The transition from volunteer firefighter organizations to paid staff is a huge financial impact. A single fire engine staffed with two career firefighters is about $1.5 million per year, which is only for personnel costs and does not include other operational costs and overhead. 2.12.1 Volunteer Recruitment and Retention In small communities, volunteer fire agencies continue to provide fire protection services. However, even those communities, where the volunteer fire station is the hub of the community, are struggling to maintain an adequate fire protection force to respond to emergencies. There has been a shift regarding volunteer firefighters over the last couple of decades. Previously, volunteer programs were based on community volunteers that participated in training, worked at their regular jobs in the local community and responded to fires when they occurred. The shift has been to more of an internship for people who are seeking a career in the fire service. Regulatory requirements have established a foundation of over 200 hours of training required prior to a volunteer (or any new firefighter recruit) being able to respond to a call. These requirements are intended to improve safety and efficiency and apply to all firefighters, whether career, part-paid, or volunteer. Potential volunteers sometimes have difficulty to committing to such demands. Because many volunteers are young people seeking fire service careers, there is a constant basic training cycle as qualified volunteers are often hired as career firefighters. This turnover can cause frustration of fire officers who are constantly conducting basic training. This frustration has led to the termination of volunteer programs in a number of combination (career/volunteer) fire agencies. Issues affecting volunteer firefighter programs generally include: • Reluctance of employers to allow employees to leave work for volunteer firefighter responses and training. • Potential volunteers that recognize the risk of firefighting and don’t want to risk injury that could compromise their ability to work at their regular job. • Competing volunteer opportunities for community oriented people along with other demands for time. • Increase in public demand for non- fire emergencies. Increase in call volume can lead to burnout. • Need for the volume/number of volunteers in a small community to provide adequate staffing of necessary positions for the operation. Typically, not all of the volunteers are available for all of the emergencies, so some percentage of the total number is usually available for response. • Need for longer term experienced volunteers with depth of knowledge for driver/operators and fire officer positions. • Cultural shifts and changes in leadership can lead to erosion of a volunteer program. Special districts that have long term successful volunteer programs have typically developed a culture of volunteerism and support for volunteers. • Volunteers want to be useful. If the call volume is too low, or career staff is handling routine calls, the volunteer program can easily erode. Volunteers can lose interest and fade out. • Relationships between career firefighters and volunteers in combination stations influence the continued participation of the volunteers. If volunteers are treated with respect, utilized appropriately and shown appreciation, there is a higher chance of success. • Volunteer firefighter programs are dynamic and require constant care and nurturing. They can erode quickly and often without much fanfare until such time as a significant event occurs. During the interviews, several fire chiefs have embraced the changes and cited having success with recruiting volunteers from the firefighter training academy at Monterey Peninsula College. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 39 2.12.2 Paid Call Firefighters As many agencies with a volunteer staffing model evolve, stipends and/or hourly rates for response or training were added as incentives. These “Paid Call” firefighters (PCF), like volunteers, usually respond from home or work and are not assigned to work shifts at the station. PCF programs are also implemented as the agency evolves from a primarily volunteer fire agency to a combination career/paid call agency. PCFs provide needed depth of resources for major emergencies. Candidates for PCF programs are a combination of community volunteers and people seeking careers in the fire service. For community volunteers, the change to PCF serves as a recruitment and retention tool. People seeking careers use the emergency response experience and training gained as a PCF as an internship to build their résumé. 2.12.3 Reserve Firefighters Reserve Firefighters are part-time employees that work shifts at the fire station in addition to being on-call like a volunteer or paid call firefighter. The reserve firefighter may be required to work as few as 1-2 shifts per month or, in some agency programs, the reserves work the same shift patterns and hours as fulltime career firefighters. Reserve programs are designed to either enhance crew cohesion between career and “call” firefighters or to augment the daily staffing levels on duty. Unlike volunteer and PCF programs, reserves are not usually required to live or work in the community they serve. 2.12.4 Career Staff The alternative to utilizing volunteers is to hire full time career firefighters. Hiring career firefighters assures immediate response and eliminates the reflex time of response to a station to pick up apparatus. Career staffing is the next logical step in the event that a reduction of the volunteer force causes an inability to provide adequate service. Obviously, the biggest issue regarding career firefighters is the cost associated with hiring full time personnel. A number of issues, in addition to payroll, influence those costs and the gap between revenue and expenditure for ongoing staffing costs can be monumental. 2.12.4.1 Retirement The special districts that have career staff often provide retirement for paid/career employees. The two public options are Cal PERS and County 37 Act retirement. The special districts in Monterey County contract with Cal PERS for retirement. Funding for the retirement program is provided by contributions from the employee and the employer. The employee pays a rate based on a percentage of payroll as established in the authorizing statute for the contracted plan. The employer rates are established by a Cal PERS actuary as a percentage of payroll. Double digit percentage increases in those employer rates have caused significant financial hardship for some special districts. Since the actuary considers the unfunded liability of the retirement plan, investment returns by Cal PERS influence the actuarial output. As a result, poor financial returns typically mean that the local agency’s employer contribution will be higher to make up for the poor portfolio performance. Poor investment returns typically occur when the economy is lagging, coincidental to the special district’s declining or flat revenues. This creates a perfect storm of increased pension costs that occur simultaneously with declining ability to pay. This cycle has been repeating for many years. Cal PERS has made several attempts to “smooth” the rates, but this is still a significant problem, particularly for small special districts where revenue is very limited in the first place. The growth of the unfunded liability deficit has outpaced the growth in revenue in many areas. Cal PERS provides industrial disability retirement in lieu of disability for member firefighters who are hurt on the job and cannot return to work. An industrial disability retirement for a young firefighter who retires after an injury is not only a huge loss for the individual and the special district but could also have significant financial impact on the special district for years. Actuaries have difficulty statistically accounting for such a loss on a small scale, thus there can be a huge increase in the employer rate to make up for such a loss. LAFCO of Monterey County 40 2.12.4.2 Workers Compensation As employers, special districts are required to provide workers compensation coverage for firefighters, both career and volunteer. Firefighting is a high-risk occupation and, unfortunately, injuries (sometimes serious) occur. Insurance providers are often joint powers authorities, State Comp, or self-insurance. Claim costs incurred by the special district will most often result in rate increases in the following years, sometimes significant. In addition to the standard workers compensation coverage for medical expenses, career/paid firefighters are subject to Labor Code 4850 et. seq. This body of law requires that the firefighter be compensated at his/her full salary and benefit levels during periods of missed work due to a job-related injury. The nature of 24-hour response availability means that the missing firefighter’s shifts will need to be backfilled with either shift transfers or overtime. This equates to 2 to 2 ½ times the normal cost of filling the position, a cost not often easily absorbed into the budget. Workers compensation costs can also be impacted by presumptions of cause of illness or injury. Since firefighting is a very stressful and hazardous occupation, certain claims for illness or injury are presumed to be job related within the Labor Code. The foundation of the requirement is that the cumulative effect of exposure to toxins and physically demanding work are presumed to be job related. Cancer, heart trouble, hernia and tuberculosis are some of the illnesses/injuries to be presumed to arise out of and in the course of employment. Such claims can have a serious negative impact on a special district in terms of lost time, finance and morale. 2.12.4.3 Overtime The Federal Fair Labor Standards Act (FLSA) delineates the threshold of hours of work for firefighters before they must be compensated at premium rates. Under 24-hour coverage models utilizing a three- platoon system, some level of scheduled overtime is necessary. Based on the model for staffing coverage and hours worked, the same standard applies to volunteers/PCFs/Reserves for “scheduled overtime,” per USC Title 29 Fair Labor Standards, Chapter 8 Section 207 K. 2.12.4.4 Firefighter Training and Mandates Firefighters must train to manage extremely dangerous and complicated situations safely and effectively. Fires, traffic collisions, medical emergencies, rescues, hazardous materials releases, structural collapses, cliff and water rescues, and a multitude of other complex emergencies. To prepare for these challenges firefighter skills and training requirements have grown exponentially. Regardless of their pay status, all firefighter candidates are required to meet the same basic skills requirements before responding to incidents. These mandates have been put in place largely to improve firefighter safety in one of the nation’s most dangerous occupations. Over 200 hours of training are required before a recruit is allowed to respond to emergencies. The training below is mandated in addition to basic firefighting and emergency medical response skills candidates must learn to be safe and effective. • Hazardous environment entry, (2 in, 2 out) CCR, Title 8, Section 5144. • Respiratory Protection (Including requirements for firefighter physicals) • Standardized Emergency Management (SEMS) (CCR Title 19, Section 2400) • First Aid and CPR (CCR, Div. 9, Chapter 1.5 First Aid and CPR Standards and Training for Public Safety Personnel) • Hazardous Materials First Responder, Operational (CFR 1910) • Harassment (1964 Civil Rights Act) • Wildland firefighting certification (RT 130) • Blood Borne Pathogens (CCR Title 8, Section 5193) • Sudden Infant Death Syndrome (Cal. H&S Code) • DMV licensing: Firefighter Endorsement (For driving fire apparatus) MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 41 2.12.4.5 Depth of Force Sufficient numbers of staff on the roster for day to day routine incidents is necessary to provide a basic level of service. There are suggested standards for various fire operations, but the local fire agency determines the numbers and associated levels of service. The staffing model selected by fire agencies is based on funding, demographics, assets at risk, and community tolerance of risk. Similarly, affordability of the approach to staffing (Volunteer, PCF, Reserve, Career) is a key factor to the number of people the agency can maintain on their roster. A basic level of fire protection service requires staffing available on a regular basis. For volunteer/PCF operations, the ratio of three volunteers/PCF’s to one (3:1) is utilized to plan for the number of actual responders to an emergency11. So, for every three volunteers/PCF, the general rule is that one will be available for response to an incident. This ratio takes into account absences, unavoidable family or work commitments, and other commitments. If the response requires four personnel (such as the 2 in – 2 out rule for structure fires) a roster of twelve PCF/volunteers would be in order to assure 4 responders. 2.12.4.6 Mutual Aid and Automatic Aid Mutual aid is an important part of assuring adequate depth of resources for larger emergencies. No single agency can afford to have all of the resources necessary for the range of hazards that they face. Mutual aid is designed for agencies to assist one another for larger emergencies. Additional resources are provided by outside agencies for significant incidents. Mutual aid is a more common occurrence over the last two decades due to the increase in fire activity and reduction of available volunteers at the local level. Automatic aid is an enhanced form of mutual aid. Automatic aid provides the response from the closest available resource regardless of jurisdictional boundary as the first response. There is generally an expectation that the aid agreement is reciprocal and not lopsided in terms of numbers of responses. Agencies that receive a lot more aid than they provide create strained relationships. Monterey County fire agencies utilize both mutual aid and automatic aid extensively. Given current growth rates and patterns in some areas, a closer analysis is necessary on an ongoing basis to assure a balance of reciprocal responses. Data to quantify the number of responses and amount of time spent will assist fire service leaders in making decisions related to discussions with neighboring agencies. There is no specific number of responses that would be considered “excessive”, however factual information on the number and frequency of incidents is key to understanding the problem. Some options for consideration include: • Agency receiving aid excessively to add resources to alleviate some or all of the responses and relieve neighbors of the commitment. • In lieu services or resource exchange (fire prevention services in exchange for responses as an example). • Contract for service to financially compensate for lopsided response agreements. • Determine if response plans can be adjusted to reduce the number of responses to low priority calls. 2.13 Level of Service: Fire Protection Districts and Fire Companies The level of service provided by the fire agencies vary widely within unincorporated Monterey County. None of the fire districts interviewed have defined a level of service that has been approved by the governing body. The importance of articulating a level of service standard is to set the expectation for service and to allow the community the ability to decide whether or not an improvement is necessary, which can be a justification for seeking voter approved enhanced revenue measures. 2.13.1 Standards The National Fire Protection Association (NFPA) is a national standards-setting body that promulgates standards regarding the full range of fire protection matters. NFPA 1710 relates to staffing for career staffed 11 Insurance Services Office LAFCO of Monterey County 42 fire agencies, while NFPA 1720 addresses volunteer fire agencies. NFPA is not a regulatory agency, and application of the standard requires adoption by the agency’s governing body. In the case of fire districts in unincorporated Monterey County, the application of NFPA 1710 for the primarily career fire districts would likely be cost prohibitive since the number of staff, equipment and facilities to be added would be significant to meet the standard. Another approach to communicating the level of service to the community is to establish “in-house” standards based on expected outcomes of an incident. Factors for consideration would be: • Response time standards based on demographics and expected outcomes. • Examples of demographics include residential population (population density), mobile population, assets at risk, land use, special hazards, incident history and volume of incidents. • Concentration and distribution of resources for determining the weight of the response (number of staff and equipment resources to mitigate an incident) as well as identification of high-volume areas with frequent simultaneous incidents. • Equipment kind and type to meet the needs of the response area. • Staffing levels to adequately and safely mitigate an incident (career, reserve, PCF, volunteer). • Training This level of analysis requires significant time and input by the fire district staff, most of whom are already stretched to the limit with existing management and operational responsibilities. Consultants are available for such projects; however, staff will still need to take an active role to provide input and data. A major component to being able to analyze and articulate the level of service is analysis of historical data. The County has a Geographic Information System (GIS) mapping system available, but the special districts report that the cost of requesting geographic analytics is cost-prohibitive. Another important data element is the data contained in the County’s Computer Aided Dispatch (CAD), which has information relative to incident types, incident locations and response times. The combination of the GIS mapping and the CAD data are powerful graphic illustrations of responses. GIS maps on board of fire response vehicles are also effective tools for responders. The fire protection systems that exist today are largely a result of fire district leaders who have used limited available resources to provide the best service possible. These leaders generally have the knowledge of the capabilities of their fire districts, which have focused on best utilization of available resources. Essentially, the agencies are providing services to the best of their ability within funding limits despite not having adopted level of service standards. The Monterey County General Plan, Safety Element, Emergency Services Section has established response goals for response time: “EMERGENCY SERVICES S-6.5 Service level goals for fire and ambulance/emergency service are: • 8 minutes or less, 90% of the time in urban and Community Areas; • 12 minutes or less, 90% of the time in Suburban areas and Rural Centers; • 45 minutes or less, 90% of the time in rural areas (areas not included in a. or b. above)..See Policy S- 5.11,” per Monterey County General Plan, Safety Element, Page S-15, dated October 26, 2010. The General Plan standards do not appear to have a direct bearing on fire district response standards, while EMS may use them as a basis for the ambulance contract within cost limits. 2.14 Cost of Fire Operations Since Proposition 13 changed the landscape of CSD and FPD property tax funding in 1978, special districts receive the amount of taxes based on allocations set by law. The level and types of services offered by the special district are often as much about available funding and less about analyzing the needs and risk of the MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 43 community. After four decades, fire service officials have come to manage their operations within financial constraints to the best of their abilities. The cost of operating a fire agency varies widely. Staffing is the most significant cost in career firefighter agencies. A basic single engine, single station volunteer operation is estimated at $250,000 per year. Even without payroll costs, the agency still needs insurance, workers compensation, web site, financial services, election costs, equipment costs, training, fire prevention, maintenance of vehicles and buildings as well as putting some funds aside for equipment and facility replacement. The addition of career staffing adds a significant cost. A two-person engine company on a 24 hour per day schedule is estimated at $1.5 million per year. This pays for salary and benefits (which also vary), but does not include ancillary services, such as training, fire prevention workload, or supervision. An additional $250,000 is needed to operate the station, equipment and assumes augmentation with volunteers. CAL FIRE cited a cost of $3.11 million for a single three-person engine company on a 24 hour basis. This includes supervision, training, fire prevention and administrative support. Their current contracts in the County do not reflect this amount and they reported using existing staff to subsidize the contracts. As a result, they are not able to complete some of the work to meet CAL FIRE’s primary mission. 2.14.1 Consolidation It is sometimes suggested that consolidating fire services would yield a more efficient fire protection system, while utilizing resources from the financially stable special districts to support services in other areas. There have been a number of consolidations in the past that have led to the current composition of fire districts in the County, including North County FPD and Monterey County Regional as the examples. This has been successful in some areas of the County, but there are limited further opportunities in the unincorporated area without the infusion of additional financial resources. Further, none of the fire districts interviewed expressed a desire to consolidate at this time. For the most part, the fire agencies interviewed also currently do not appear to be considering any annexations. Consolidation is most successful when the agencies have similar operations, resources and needs, along with overlap of duplicated efforts that can be streamlined. Some of the obstacles found in the interview process include: • Disparate financial resources that would require a fire district to subsidize another. • Volunteer/paid call firefighter/reserve firefighter programs that are successful due to their grassroots level community connection. The volunteers have a strong connection to the smaller, community-based organizations. • Concern from fire district officials that taking on the additional responsibility of a neighboring fire district will take away from their current local services and needs. • Philosophical debate of “local control” versus “regional approach” to services. • Mutual aid and automatic aid agreements that have enhanced/augmented emergency response without consolidating governance, finance, and administration. 2.15 Finance and Alternative Funding 2.15.1 Fiscal Sustainability While reviewing the budgets and financial statements of the special districts, it is sometimes difficult to discern the true fiscal condition. Unfunded retirement liability, open workers compensation claims and unsettled lawsuits are notes in the financial that can be reviewed along with budgets and fund balance. Some of the metrics that are customarily utilized don’t always capture the full story. As an example, the financials may show a balanced budget with some reserves, which mask the issue of rising costs and service level cuts, including firefighter layoffs, that were deployed to achieve the balance. Needed equipment replacement and facility costs are often deferred to avoid deficit spending. LAFCO of Monterey County 44 Some of the special districts that contract with CAL FIRE have reduced some overhead payments and are only paying for direct staffing costs on a fire engine. Of course, the cost for administration, overhead, training and fire prevention are still a liability, but being subsidized by CAL FIRE. 2.15.2 Property Tax Property tax is the primary funding source for special districts formed prior to Proposition 13 in 1978 and makes up the majority of the special districts’ budgets with a few exceptions. Special districts receive a prorated share of property tax based on the pre-Prop 13 tax base. Formulas set by State law establish the percentage of property tax received by the special districts within each of the tax rate areas that make up the special district. Special districts formed after Proposition 13 (Cachagua) and the two fire companies (Mid-Coast and Big Sur) do not receive any of the 1% base property tax revenue. South Monterey County Fire Protection District receives less than 1% of each tax dollar generated in the special district’s tax rate areas. The lack of sufficient property tax funding in all four of these cases means that fundraising is an essential activity to provide a fundamental volunteer-based service. Since most of the special districts are so heavily reliant on property tax as their primary revenue source, any change may have significant impact on the ability of the special district to maintain services. 2.15.3 Assessed Valuation and Growth Post- Prop 13, properties are assessed at the time of construction, or in the case of existing properties, at the time of resale. As a result, areas with little new construction and/or slow turnover of existing property will experience little growth in assessed valuation, even in a robust economy. Property tax-funded public agencies that serve communities with relatively low assessed values will generally experience low growth of tax revenue. In some cases, the assessed valuation is too low to support adequate services. Wild swings in property value can have a significant effect on property taxes. For example, the energy plant in Moss Landing was by far the largest taxpayer in the North County Fire Protection District. A major reduction in the assessed value of the power plant caused a significant impact to the special district’s ability to provide services. Another example is the reduction of residential homes intermixed with the agricultural land in the Salinas Valley. In many cases, the homes in the agricultural areas have been razed due to food safety concerns. The indirect impact is the reduction of assessed value of the property, which in turn reduces the tax revenue needed to support fire protection. Because the percentage of the tax dollar is set, assessed value (AV) growth is how a special district’s property tax revenues can increase. Prop 13 limits the increase in taxable assessed value of properties to 2% per year. Reductions in value are not limited. A special district with higher assessed value may see large tax dollar increases from a small increase in growth percentage. Conversely, special districts with comparatively low assessed values may not gain much property tax even with a relatively large growth percentage. New construction is assessed at the time the project is completed. Growth in the tax base comes from the added value of the new development. 2.15.3.1 Reassessment at Sale Existing properties are reassessed at the time of sale. Increases in assessed value contribute to the growth of the tax base for the special district. Communities that are “built out” must rely on growth from sales turnover. The housing market will likely be the driving factor in the amount of growth or decline that will occur during the sale of a property. Further, if the potential for the annexation of new areas is limited or not probable, the potential for growth is limited to infill within the district’s boundaries. 2.15.3.2 Property Tax Allocation for Fire Service: CSDs Community services districts allocate varying shares of property tax to the CSD’s fire department for fire protection services. The remainder is allocated to other public services provided by the special district. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 45 2.16 Other Funding Sources • Benefit Assessment Districts • Community Facility Districts (Mello-Roos) • Special Property Tax • Prop 172 Public Safety Sales Tax • Facility Bonds • Cannabis Tax • Grants • Annexation • Property Tax Transfer Agreement • Payment in Lieu of Taxes 2.16.1 Benefit Assessment Districts (Proposition 218) Benefit assessment fees authorized by Proposition 218 (California Constitution Article XIII D) may be used to fund “Special Benefit” property related services. Special benefit means particular and distinct benefits for the property that is over and above the general benefits conferred on other real property located in the special district or for the public at large. Benefits must have a direct nexus to the parcel. Benefit assessments are frequently used to fund water, sewer, and other infrastructure type costs that serve the parcels in the special district. Structural fire protection has been regularly recognized as a special property related service. Benefit Assessment Fees are not taxes and are not based on the assessed valuation of the property. The fees are based on the cost of providing the specific service distributed across the affected parcels based on a required engineer’s report. Basic process for establishing a weighted benefit assessment: • Engineering study and calculations determining assessment per parcel • Revenues shall not exceed the cost of services • Revenues shall not be used for any purpose other than property related service • Agency shall send written notice of the proposed fee to all parcel owners and a hold public hearing about the proposed fee. • Vote to approve fees can be done in one of two ways: • 2/3 majority of registered voters residing in proposed benefit assessment dist. • A simple majority of property owners subject to the fees. Votes are weighted based on the amount each parcel is proposed to be charged. If approved, benefit assessment fees will be added to annual property tax bill. 2.16.1.1 Number of Parcels in a District Similar to special districts with low assessed valuation, the number of parcels in a special district influences the amount of assessment required per parcel to generate the new revenue. Spreading the tax burden over a relatively small number of parcels reduces the chances for successful voter approval of a new fee or tax. Some parcels (government owned, etc.) may be exempt from assessments and will not be included in the assessment. 2.16.2 Community Facilities Districts (Mello-Roos) Community Facilities Districts (Mello-Roos) are authorized by Government Code 53311 et seq. to fund several types of services. Mello-Roos Districts are most frequently used as a condition of new development to fund public services necessitated by the development. Mello-Roos Districts can also be created in an existing community to fund either existing or new services. Government Code section 53311 specifically authorizes the use of Mello-Roos Community Facilities Districts for funding of fire protection and LAFCO of Monterey County 46 suppression services, ambulance, and paramedic services. Mello-Roos Districts use the same cost calculation and voting methods as Benefit Assessment Districts. 2.16.3 Special Property Tax A special property tax may be imposed with approval by 2/3 of the special district’s voters. The tax may be structured in various ways. (California Constitution Article XIII A) A flat rate special tax may be utilized if approved by 2/3 of the voters, and is a flat amount per parcel. A variation of the flat rate tax is based on parcel land use type and/or square footage of the structure (if any) on the property. 2.16.4 Proposition 172 Public Safety Sales Tax Proposition 172 was passed by the voters on November 2, 1993, which added an additional sales tax for public safety to offset some of the property tax shifts made by the State to the Educational Revenue Augmentation Fund (ERAF). The 0.5% Proposition 172 sales tax revenue is restricted for use to fund Public Safety services. “Public safety” services include sheriff, police, fire protection, district attorney, corrections, ocean lifeguards. “Public safety” services do not include courts, per Government Code 30056. Subject to annual approval by the Monterey County Board of Supervisors during the annual budget development process, Monterey County allocates 9.13% of prior fiscal year audited Proposition 172 sales tax proceeds to special districts that provide fire protection and fire companies. The fire agencies have a formula for distributing that revenue amongst the agencies. 2.16.5 Facility Bonds Bonded indebtedness for facility improvements may be utilized if approved by 2/3 of the voters (California Constitution Article XIII A). A bond may only be used for facility improvements and may not be used for salaries, benefits, or operations. The calculation of bond payments by property owners is based on a percentage of the value of the property (ad valorem). 2.16.6 Cannabis Tax In June 2018, the voters in the Monterey County Regional FPD approved an annual tax on commercial cannabis businesses within its boundaries to fund impacts upon fire prevention services, and response to fires, hazardous materials, and other emergencies at the following rates: $0.18 per square foot on cannabis cultivation; $0.10 per square foot on cannabis nurseries; and $1.00 per square foot on cannabis manufacturing and retailers. The tax generates about $350,000 per year in revenue for Regional. There are questions regarding the potential for future success in other special districts with a similar measure within the County. The perception is that Regional was successful due to the timing of the measure soon after cannabis was legalized. 2.16.7 Grants Several of the special districts within the study have received grant funding from various sources. Grant funding can be an important augmentation to fund one-time expenses such as equipment and facilities. Using grant funding for ongoing operational expenses (staffing) without a plan for sustaining the funding can create layoffs when grant funds expire. One issue related to grants impacting special districts is the use of SAFER12 grants for staffing. SAFER grants are federal grants awarded to fire agencies on a competitive basis based on demonstrated need by the agency. One condition of the SAFER grants is that the agency is expected to sustain the funding for the 12 Staffing for Adequate Fire and Emergency Response; U.S. Fire Administration; FEMA, U.S. Dept of Homeland Security MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 47 added staffing when the 2-3 year grant expires. If the agency is not fully prepared to fund the firefighter positions when the grant expires, layoffs can occur or other cuts will be necessary. 2.16.8 Annexation While not directly a form of new revenue, annexing areas into a special district provides an opportunity for a property tax transfer agreement. A percentage of property tax paid within the annexed area is transferred to the special district that now provides fire protection services. A number of annexations have occurred in Monterey County over the past decade, and most of the special districts have annexed adjacent lands to the extent that it makes sense. 2.16.9 Property Tax Transfer Agreement Since Prop 13 set the property tax rate at 1% of a property’s assessed value in 1978, the public agencies each share a percentage of that 1%. The basis for the share is the amount of prorated tax received by an agency when Prop 13 passed. A property tax exchange agreement is a formal agreement, commonly used during annexations, where a portion of the property tax is transferred from one agency to another, typically from the County’s share of property tax. This can be used to prop up deficiencies in previous tax formulas as well by shifting property tax from one public agency to another. It should be noted that this is a “zero sum” transaction meaning that it is truly a transfer of future revenue from one public agency to another, and not a new source of revenue. In cases of annexations into a city and out of a special district, some property tax transfer agreements have allowed the special district to continue to receive the base amount for a period of time or in perpetuity. The city would receive any growth above the base. This allows the special district to continue to fund services in the adjacent areas. 2.16.10 Payment in Lieu of Taxes The federal government pays local general government agencies (counties) funds to compensate for local services provided on federal land that would otherwise be paid for by property taxes. Monterey County receives some revenue from the federal government under this program. Since the fire companies and some fire districts often provide services on federal land, but are not “general government” agencies, the County would need to assist in the negotiations with the federal government in an effort to seek funding to pay for the services. While not a required activity, the County may be able to assist to help negotiate an additional amount that could help fund the responses on federal land. LAFCO of Monterey County 48 SECTION 3: EMERGENCY MEDICAL SERVICES (EMS) ORGANIZATION 3.1 Background CSA 74 is part of the scope of this study since county service areas fall within LAFCO’s responsibility for municipal service reviews. EMS also accounts for a significant portion of the services provided by fire protection agencies and associated budgets. EMS has evolved over many years. In most cases, fire agencies began providing emergency medical responses in the late 1960’s or early 1970’s. Citizens called the fire station for help since they often knew that firefighters had resuscitators and could administer oxygen. Ambulance service was provided by various methods depending on the community. Mostly privately owned companies provided ambulance services and they were not uniformly regulated. In 1980, the California legislature passed the EMS Act. The legislation did a number of things. Among them: • Authorized the State Emergency Medical Services Authority, which was charged with coordinating and setting standards at the State level. • Authorized the Local Emergency Medical Services Agency (LEMSA) in each county (A few rural counties formed regional JPAs, but most were individual counties as is the case in Monterey County). • Establishes a requirement for a local EMS plan to coordinate and integrate services. • Provides for the creation of emergency medical procedures and protocols. • Provides for certification of certain emergency medical personnel. • Coordination of emergency responses by fire agencies, ambulances, hospitals and other providers in the EMS system. • Medical direction and control of EMS providers by the LEMSA. One of the sections of the law that has generated controversy is Health and Safety Code Section 1797.201. Commonly referred to as “201 rights” this section is one of two sections that grandfather the emergency medical services provided by a city or fire district when the EMS Act was passed in 1980. The law specifies that the county LEMSA and city or fire district would reach an agreement for providing emergency medical services. Absent reaching an agreement, the city or fire district could continue providing the services continually. Cities and fire districts that provided paramedic ambulance transport services before 1980, for instance, could continue to provide that service as long as the service was not interrupted. Cities and fire districts that provided first response basic life support (EMT 1) service could continue at that level, and so on. At the same time, the county LEMSA is charged with coordinating resources and developing a plan for service. This has been the source of a number of debates, legal and legislative actions throughout the State over the past four decades. The nuances are many and vary from county to county. 3.2 EMS Funding 3.2.1 County Service Area 74 (CSA 74) CSA 74 is a county-wide County Service Area that was established to fund emergency medical services in the County. A flat rate benefit assessment of $12 per parcel was passed by the voters and has been in place since 1988. The assessment is applied to approximately 118,000 parcels in the County (including within the incorporated cities) and raises approximately $1.7 million per year. The funds are used to partially fund the County EMS Agency and $500,000 is allocated to providers for EMS training. 3.2.2 Ambulance Fees American Medical Response is the ambulance provider in the County. They bill the patient directly and/or the patient’s insurance company for services based on a fee schedule within the approved contract with the County. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 49 3.3 Current System 3.3.1 Fire Response The closest fire resource is dispatched to medical emergencies due to the volume and proximity of the resources throughout the County. Fire units are most likely to arrive at scene first based on proximity and deployment of resources. This is especially true in rural areas where fire resources are deployed and ambulance response times may be longer. The purpose is to conduct rescue (in some cases) and to stabilize the patient in preparation for transport to a hospital. Approximately half (48%) of residents served by fire agencies in unincorporated Monterey County live within fire agencies that provide first response ALS paramedic service. Training/certification levels of firefighters vary by special district. Cypress FPD, Carmel Highlands FPD, Pebble Beach CSD and Monterey County Regional FPD provide Advanced Life Support (ALS)/paramedic service while the remainder of the special districts provide Basic Life Support (BLS). Advanced Life Support (ALS), Paramedic or EMT-P Basic Life Support (BLS), EMT-1 • Paramedics provide advanced medical care to patients • EMTs provide basic medical care to in the field, including administering medication, patients in the field, including inserting IVs, resuscitating patients, and providing stopping external bleeding, stabilizing breathing support using tubes and ventilation devices. patients, and administering CPR. • Training includes didactic (classroom) training, clinical • EMTs must complete 120 to 150 hours training and field internship. of training to obtain certification. • Paramedics must complete 1,200 to 1,800 hours of • EMTs take the National Registry of training to qualify for certification. Emergency Medical Technicians • Paramedics take the NREMT and the National Registry (NREMT) exam. Paramedic cognitive exam. • Some paramedic training programs offer a two-year degree. 3.3.2 Ambulance Transport The County’s countywide ambulance contract is currently with provider American Medical Response, or AMR. AMR provides EMS transport service throughout the county. AMR staffs each ambulance with one paramedic and one EMT 1. The ambulance service in Carmel Valley, now operated by Monterey County Regional FPD as the one variation to this overall model, has been grandfathered under the EMS Act as previously discussed. Air ambulances may also be utilized in the case of remote locations and/or serious trauma cases. 3.3.3 Radio Communications: Fire/Ambulance One issue that was cited by some of the fire officials during our interviews was a gap in communications between responding fire units and ambulances. Common interoperable radio communications equipment and protocols are important safety concerns for responding units and those that they serve. Field units need to be able to talk directly to each other (without having to go through dispatch centers) to coordinate the response, articulate hazards directly and promptly, and give/receive special instructions. A common radio frequency should be assigned at dispatch for responding units to utilize. Protocols and training are required to reinforce the importance of clear communications. 3.4 Outcome-Based EMS Response The EMS Agency staff reported that an emerging trend is to develop an “outcome-based” response system as one of the next steps in the evolution of EMS. This entails analyzing patient clinical outcome data to determine the proper response to future medical emergencies. LAFCO of Monterey County 50 There are reports that health insurance companies have questioned the cost of services that were determined to be non-emergent after the fact and not paid for those services. That leaves the patient in a position of paying for the services directly, which could impact their willingness to call 9-1-1 for help in future incidents. Given the costs involved, insurance companies’ efforts to reduce exposure and efficiency of matching the resource response to the need are steps in that direction. Conceptually, the plan is to match the EMS response to the specific needs of the patient. Some of the concepts include: • Emergency Medical Dispatch: Used to prioritize calls, triage based on medical need and provides pre arrival instructions to 9-1-1 callers. AMR dispatchers currently provide EMD in Monterey County. • Revise deployment plans for field units and dispatch the appropriate response (fire and ambulance) based on caller inputs while assuring that the level of care is appropriate for the medical need. • Improve data feedback loops, information technology sharing, and quality assurance to analyze data amongst all of the EMS providers, including hospitals. • Reflect the plan in the County ambulance contract so that data requirements can be met by the contractor and the appropriate deployment plan can be developed for the lowest possible cost. The County EMS Agency is currently in the process of preparing a request for proposal to solicit bids for the ambulance contract. In June 2020, the EMS Agency prepared a draft request for proposals (RFP) for ambulance services within the Monterey County Exclusive Operating Area, which covers all of Monterey County except for the City of Carmel-by-the-Sea, Carmel Valley, and Fort Hunter Liggett. The County EMS Agency has posted the draft RFP to its website and requested public comments on the draft RFP from June 4 to July 2, 2020. • Potential “alternate destinations” for patients that don’t need to go to the hospital emergency room. • Case management and alternate care delivery to frequent users of EMS services with non-emergent complaints. These concepts will require extensive collaboration and communication among the EMS partners to advance emergency medical services while working to contain costs. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 51 [This page left blank intentionally.] LAFCO of Monterey County 52 SECTION 4: CONCLUSION The Executive Officer commends the ongoing work and achievements by local fire protection and emergency medical service providers in continuing to provide efficient and effective services to their communities. The fire agencies in unincorporated Monterey County serve the great majority of the unincorporated county’s population. Fiscal health of the agencies varies widely, several of the special districts have experienced acute financial stresses or service cuts in recent years, and the long-term effects of the COVID-19 pandemic on agency finances and service levels remain unknown. Some agencies have struggled with financial sustainability, largely because of a funding model based primarily on property tax. At the present time, all of the agency representatives interviewed for this study reported being able to sustain services for at least another five years, and the agencies collectively have a history of being resourceful and resilient. Following several very substantial boundary changes in the last decade, the fire agencies now generally find that current district sphere of influence and boundaries are appropriate, and LAFCO staff concurs with this finding. None of the fire agencies are currently looking to LAFCO boundary-change actions (consolidation, formation, dissolution, annexations, detachments) as a means of addressing the fiscal challenges their agencies face. However, the Options for Consideration section within this report’s Executive Summary presents a compilation of subject areas identified in the development of this study, for future consideration and potential action by the wider fire/EMS community going forward, following this study’s completion. Encompassing both near-term/incremental, and longer-term/“macro” options to consider, the overarching goal of the Options for Consideration is to support the evolution and long-term continuity of high-quality fire protection and EMS throughout unincorporated Monterey County. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 53 [This page left blank intentionally.] LAFCO of Monterey County 54 SECTION 5: INDIVIDUAL DISTRICT PROFILES Notes regarding the district profiles: 1. District profile data sources: • District area estimated utilizing County of Monterey GIS Data; • Population estimated utilizing 2010 U.S. Census and 2018 American Community Survey (ACS) data; • Assessed valuation and portion of County property tax received are from the County of Monterey Auditor-Controller’s Office; • Other information from the districts: Financial statements and audit reports, district budgets • While County Service Area 74 is included within the County of Monterey’s Comprehensive Annual Financial Report, the revenues for all County Service Areas are reported as if they were a part of the County because the Monterey County Board of Supervisors also serves as the governing board of each of the CSAs. Therefore, the CSA 74 tables utilize the County’s adopted budgets. 2. Financial Summary sections: • Individual district profiles each include a final section that is called either “Options to address the full revenue imbalance” or “Options to address potential future financial challenges.” The reasons for using the section heading “Options to address the full revenue imbalance” may include a district experiencing multiple years of expenditures outpacing revenues, significant budget cuts, deferred replacement of equipment or facilities with small replacement reserve balances, and/or significant debt to income ratios. The reason for providing the section heading “Options to address potential future financial challenges” is to recognize that these districts are not currently experiencing the previously listed financial challenges. • Where available, the line graphs include financial projections that were prepared and provided by the districts. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 55 [This page left blank intentionally.] LAFCO of Monterey County 56 5.1 Aromas Tri-County Fire Protection District Summary/Background Since 1993, the Aromas Tri-County Fire Protection District (ATC) has provided services through a contract with the California Department of Forestry and Fire Protection (CAL FIRE). The District’s Monterey County boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides fire protection and emergency medical services to approximately 5,800 people throughout forty square miles in the northeast corner of Monterey County and adjacent areas of San Benito and Santa Cruz Counties. Monterey County is the District’s principal county because it has the highest assessed value among the three counties within the District’s boundaries. The District was formed in 1952 with an all-volunteer firefighting staff. Through its contract with CAL FIRE, the District currently receives staffing services of 6.67 full-time staff. The District cost shares support staff with five other special districts in Monterey County with CAL FIRE Cooperative Agreement contracts. The shared support staff includes one mechanic, one Communication Operator (9-1-1 Dispatcher), and one administrative support position. The District receives cost recovery funding for its responses to vehicle accidents along the Highway 101 corridor, meaning, when individuals are in accidents responded to by the District, the District charges fees to individuals’ insurance companies to recuperate response costs. The District received 511 calls for service in fiscal year 18-19. The District has an ISO Public Protection Classification of 4 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to meeting agendas and agenda materials, the District’s website provides information about fire prevention education, public safety preparedness, and a virtual bulletin board with information about community programs such as residential burn permits. District Formation and Duties Formation Date 1952 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors elected to four-year terms through at-large elections. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Fire Protection / Emergency Medical Services MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 57 Attributes District Area (est. square miles): • Monterey County 17.3 • Entire District 38.7 Population (estimated): • Monterey County 3,300 • Entire District 5,800 Assessed Valuation (2019): $977,778,014 Total Revenues (FY 17-18) $1,623,930 Number of stations 1 Dispatch CAL FIRE ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 4 Without a Credible Source of Water 4X Regular Financial Audits Annual Annual Revenue Per Capita, Entire District (FY 17-18) $280 Average Portion of County 1% Property Tax Received 14¢/$1 Total Staffing 6.67 Calls for service in FY 18-19 511 Challenges and Opportunities ATC’s main challenges include limited financial resources and recruitment of Board members to fill vacancies. The District’s revenues and expenses are currently on an unsustainable course. The District anticipates that its revenue imbalance will become a major problem, in terms of being able to continue to provide services, sometime within the next five years. ATC is having difficulty sustaining its current level of operations at existing funding levels. In 2012, the District reduced its fire engine staff to a minimum level of two firefighters on duty daily.13 While two firefighters per engine is considered the minimum level for safety, three or more is considered an industry standard for basic operations. A minimum of four at scene is required to conduct operations inside of a burning building or other hazardous environment. The level of staffing is directly related to level of service. Further exacerbating the problem is that ATC has no volunteers to augment the response to incidents. In addition to this staffing cost-saving measure, CAL FIRE does not receive full-cost recovery for its operational coverage and administrative workloads, which are currently provided to the District at no cost. The District’s inability to compensate CAL FIRE for all services rendered is problematic, but is essentially needed to lower District expenditures. The District is exploring possible options and opportunities to address its financial challenges. The District took the unusual step, given its circumstances, of requesting additional property tax funding from Monterey, San Benito, and Santa Cruz Counties in December 2019. The three counties did not grant the District’s request. The District is also exploring the costs and feasibility of taking a benefit assessment district ballot measure forward for voters to consider raising revenues to maintain services. 13 CAL FIRE has indicated that any new full-service contract, which would not include the long-standing ATC contract, would include a minimum staffing of three personnel per fire engine per day at an estimated annual cost of $3.11 million per company. LAFCO of Monterey County 58 Financial Summary District Revenues 2016-2017 2017-2018 Amount % of Total Amount % of Total Property Tax $1,267,319 84.5% $1,335,341 82.2% Use of Money & Property (Interest Income) $19,683 1.3% $24,590 1.5% Aid from other Govt. Agencies (Prop 172 Fund, $86,198 5.8% $83,618 5.1% Homeowner’s Property Tax Relief, Grants) Other Revenue $125,109 8.3% $176,627 10.9% Fire Mitigation Fees $679 0.05% $1,736 0.1% Revenue total $1,498,988 100% $1,623,930 100% District Fund Balance Ending Total Fund Balance (June 2018) $1,549,100 Change in Total Fund Balance (from June 2016 to June 2018) 14% Total Fund Balance/Annual Revenue Total (FY 17-18) 95% Financial Trends and Projections: Over the past decade, the District’s expenditures outpaced revenues until the District implemented cost- saving measures. Significant cost-saving measures included, in 2012, reducing fire engine staffing to a minimum of two firefighters on duty daily and ceasing CAL FIRE cost recovery for its operational oversight of emergency field activities and administrative services. Despite these cost-saving measures, annual expenditures have again risen higher than annual revenues beginning in FY 2018-19. The District plans to purchase a new fire engine in FY 2019-20, which is estimated to cost $525,000. This planned purchase will reduce District reserves by nearly a third. Fire Protection Districts typically build their reserves to periodically replace equipment and facilities as they reach the end of their useful life. Using the District’s estimates prepared by CAL FIRE, it is projected that ATC’s property tax revenues, accounting for nearly 88% of District revenue, will increase by approximately 3.3% annually while expenditures will increase by up to 5% annually over the next three years. The gap between the District’s revenues and expenditures will continue to widen unless additional revenues are secured. The line graph below shows that, if this trend continues, the District will begin to deplete its reserves to fill the gap between revenues and expenditures, which is a cause for concern. Financial Trends and Projections $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Revenues Revenue Forecast Expenditures Expenditures Forecast Reserves Reserves Forecast MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 59 Options to address the full revenue imbalance: The District would immediately need an estimated increase of $240,000 in additional annual revenue to address its structural deficit and provide operational and administrative cost recovery for CAL FIRE services. Such additional funding is needed to maintain the current minimum fire engine staffing level, but would not be sufficient to meet CAL FIRE’s recommended staffing level of three personnel daily per fire engine at an estimated annual cost of $3.11 million. The District previously proposed a benefit assessment district ballot measure in 2016 to restore its staffing levels and to add paramedics to its staffing. However, the measure failed to obtain the required two thirds majority affirmative vote. The District is currently investigating the cost and feasibility of moving forward with a new benefit assessment district ballot measure to increase revenues. The option of completing a new benefit assessment district appears most likely to generate the additional funding needed for the District to maintain services. Photo credit: Aromas Tri-County Fire Protection District LAFCO of Monterey County 60 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 61 [This page left blank intentionally.] LAFCO of Monterey County 62 5.2 Cachagua Fire Protection District Summary/Background Since 1993, the Cachagua Fire Protection District has provided services to the rural community of Cachagua. The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The Cachagua Fire Protection District provides fire protection and emergency medical services to approximately 1,000 people over an area of 108 square miles between the Carmel and Salinas Valleys. The Cachagua Volunteer Company was formed in 1976 to serve this rural area on the eastern side of Carmel Valley. In 1993 the agency sought and received LAFCO approval to reorganize as a fire protection district so that it would be able to levy an assessment to help fund fire operations. The District is staffed by volunteers. The District received 121 calls for service in fiscal year 18-19. The District has an ISO Public Protection Classification of 9 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its biennial audits on time. The District’s website provides information about the District’s volunteer firefighters, newsletters, budgets, audits, and Board meetings. District Formation and Duties Formation Date 1993 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Three Directors elected to four-year terms through at-large elections. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Fire Protection / Emergency Medical Services Attributes District Area (estimated square miles) 108 Population (estimated) 1,000 Assessed Valuation (FY 2018-19) $284,080,239 Total Revenues (FY 2017-18) $108,894 Number of stations 2 Dispatch CAL FIRE ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 9 Without a Credible Source of Water 10 Regular Financial Audits Biennial Annual Revenue Per Capita, Entire District (FY 17-18) $109 Average Portion of County 1% Property Tax Received 0¢/$1 Total Staffing 21 volunteers Calls for service in FY 18-19 121 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 63 Challenges and Opportunities The District’s main challenges include: • Limited revenue sources that are highly dependent on District’s annual receipt of 172 funds and its benefit assessment district, each comprising approximately 50% of annual District revenues, • Difficult-to-predict supplemental District revenue from donations and campaign fire reimbursements, • Significant number of volunteers working outside the District, impacting volunteer availability, • High cost of liability and workers compensation insurance, • Rugged terrain and road conditions creating challenges in responding to emergencies and causing hazardous driving conditions in the district, and • High replacement costs for fire engines and other vehicles, and the existing fire station. The District is also concerned about access to ambulance services. Although American Medical Response, Inc., (AMR) has a Countywide service contract, the nearest ambulance that can respond to a medical emergency in Cachagua is from Monterey County Regional FPD and not AMR. The District would prefer that the nearest available ambulance be able to respond to their medical emergencies. The District has strong community support, is actively involved in the community, and receives donations from community events and fundraisers. Financial Summary District Revenues 2016-2017 2017-2018 Amount % of Total Amount % of Total Property Assessments $51,439 13% 52,292 48% Public Safety Revenues $55,925 14.1% $55,052 50.6% Use of Money & Property (Interest Income) $28 0.001% $25 0.02% Governmental reimbursements $271,072 68.3% $0 0% Other Revenue $18,685 4.7% $1,525 1.4% Revenue total $397,149 100% $108,894 100% District Fund Balance Ending Total Fund Balance (June 2018) $427,092 Change in Total Fund Balance (from June 2016 to June 2018) 15% Total Fund Balance/Annual Revenue Total (FY 17-18) 392% Financial Trends: The District receives the smallest amount of revenue and has the lowest per capita expenditures of all the fire districts. This shows that the District is a highly efficient in its operations. Still, based on the District's audits and budgets, the District is showing a recent 2-year trend (FYs 18-19 and 19-20) of its expenditures staying within its revenues. Since the District is staffed by all volunteers, the District's personnel expenses are significantly lower than a fire protection agency staffed by full-time employees. As a result, the District's reserve fund, which currently holds a balance in excess of $400,000 and is three and a half times greater than the District's annual expenditures of approximately $110,000, is able to offset unexpected revenue imbalances. The District reported it could sustain its operation for the next five years. The District is working hard to function within its annual budget. It has implemented a number of cost savings measures including an improved investment of the reserve fund. The District is able to continue to function LAFCO of Monterey County 64 at its current level of service with its on-board equipment and facilities. However, in order to upgrade its equipment and/or establish a new fire station additional resources will be required both for acquisition and construction and then the follow-on operations and maintenance. Financial Trends and Projections $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address the full revenue imbalance: The District would need an estimated increase of $140,000 in additional annual revenue to reach the estimated funding needed to maintain a volunteer firefighting operation (see section 2.14 Cost of Fire Operations for additional information). A reliable option to increase District revenues would be to create a new benefit assessment district or special property tax. This option would require a two-thirds majority affirmative vote from voters within the District. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 65 LAFCO of Monterey County 66 5.3 Carmel Highlands Fire Protection District Summary/Background The Carmel Highlands Fire Protection District provides services through a contract with the California Department of Forestry and Fire Protection (CAL FIRE). In 2018, the District was open to looking into expanding its boundary to the south to include the area between its current District boundary and Garrapata State Park. This area is currently unprotected and produces calls for service. However, after further study, the District decided not to pursue a sphere of influence amendment/annexation. The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides a high level of fire protection and emergency paramedic medical services to approximately 1,075 people throughout 9 square miles in the coastal area south of Carmel-by-the-Sea and Cypress Fire Protection District. The District was formed in 1932. Through its contract with CAL FIRE, the District currently receives staffing services of 13 full-time staff. The District works closely with two adjacent districts - the Cypress FPD and the Pebble Beach Community Services District - that are also staffed by CAL FIRE. These three special districts operate what is essentially a seamless regional fire department. The arrangement has been formed through cost sharing agreements, without the formality or bureaucracy of a joint powers agreement or consolidation. Each district funds the level of station staffing that they approve, and all three share fire command, fire prevention, training, and support staff functions. The District received 204 calls for service in fiscal year 18-19. The District has an ISO Public Protection Classification of 2 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, basic life support (EMT), and advanced life support (paramedic) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to Board meeting information, the District’s website provides information about fire prevention, fuel reduction, tree removal permits, and the District’s 2020 Residential Chipper Program. District Formation and Duties Formation Date 1932 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors appointed to four-year terms by the Monterey County Board of Supervisors Agency Duties Fire Protection / Emergency Medical Services Pho to credit: Carmel Highlands Fire Protection District MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 67 Attributes District Area (estimated square miles) 9.3 Population (estimated) 1,075 Assessed Valuation (FY 2018-19) $1,377,140,289 Total Revenues (FY 2017-18) $3,297,484 Number of stations 1 Dispatch CAL FIRE ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 2 Without a Credible Source of Water 9 Regular Financial Audits Annual Annual Revenue Per Capita, Entire District (FY 17-18) $3,067 Average Portion of County 1% Property Tax Received 25¢/$1 Total Staffing 13.3 Calls for service in FY 18-19 204 Challenges and Opportunities The District is planning ahead to prepare for potential future challenges. Property tax revenue accounted for 87% of District revenues in FY 17-18. Potential downturns in the economy could result in property tax revenue not keeping pace with inflation. If such an event occurs, the District’s reserves, which held $4.5 million in funding in June 2018, could provide additional resources. The District reported that its fuel reduction costs have been rising. These higher expenditures in recent years were due to the District taking proactive measures in reducing wildfire threats. In general, the District is on firm financial footing. The District had previous concerns over the County EMS Agency’s previous request for proposals (RFP) for the ambulance services. These concerns included that the District be allowed to keep its paramedics, maintain current ambulance response times, and keep mutual aid for ambulance to be delivered effectively, allowing the closest available ambulance to respond to an emergency. In January 2020, the EMS Agency extended its contract with AMR for two years, permitting more time to prepare an RFP for ambulance services14. The 2016 Soberanes Fire burned dangerously close to homes within the District and has reminded many residents of the fires that have threatened their community in years past. The District and the community have been working hard to mitigate future threats by adopting a Fire Defense Plan, reducing and modifying fuels throughout and around the District and increasing awareness to the threat of wildfire in the community. The Fire Defense Plan addresses emergency access road systems, protection of environmentally sensitive plant species, identification of fuels modification treatment and target areas, and addresses undeveloped or vacant lot, land, or open space fuel reduction standards. Many other improvements have been made in emergency response capabilities, mutual aid, communication plans, and water delivery systems. The District continues to be a leader in fuels modification and emergency response capabilities to limit or prevent fires within the District. 14 Section 6, Comments on the Administrative Draft, includes a letter from the Monterey County EMS Agency dated June 8, 2020 commenting on this paragraph. LAFCO of Monterey County 68 Financial Summary District Revenues 2016-2017 2017-2018 Amount % of Total Amount % of Total Property Tax $2,703,610 86.7% $2,872,918 87.1% Use of Money & Property (Interest Income) $62,511 2% $69,670 2.1% Aid from other Government Agencies (Prop $216,253 6.9% $217,394 6.6% 172 Fund, Homeowner’s Property Tax Relief, Grant Revenue) Other Revenue 135,971 4.4% $137,502 4.2% Revenue total $3,118,345 100% $3,297,484 100% District Fund Balance Ending General Fund Balance (June 2018) $4,517,332 Change in General Fund Balance (from June 2017 to June 2018) 0.07% Total Fund Balance/Annual Revenue Total (FY 17-18) 137% Financial Trends: Over the past three fiscal years, the District’s expenditures have increased in comparison to its revenues. The increase in expenditures was primarily due to increased spending in fuel reduction. The District’s reserve balances have sufficient funds to absorb relatively small revenue imbalances. The line graph below shows the current financial trend. Financial Trends $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2015-16 2016-17 2017-18 Revenues Expenditures Reserves Options to address potential future financial challenges: The District has essentially no debt and is doing well financially. The District’s practice maintaining healthy reserves is a prudent way to prepare for future financial challenges. Opportunities for partnerships with other organizations and grants to perform fuel reduction may also support the District in implementing its Fire Defense Plan. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 69 LAFCO of Monterey County 70 5.4 Cypress Fire Protection District Summary/Background The Cypress Fire Protection District provides services through a contract with the California Department of Forestry and Fire Protection (CAL FIRE). The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides a high level of fire protection and emergency paramedic medical services to approximately 7,600 people throughout 11 square miles within the mouth of the Carmel Valley, and unincorporated portions of Carmel and Monterey. The District was formed in 1993. Through its contract with CAL FIRE, the District currently receives staffing services of 16 full-time staff. The District works closely with the Carmel Highlands FPD and the Pebble Beach Community Services District, which are also staffed through CAL FIRE. The residents of these three special districts benefit from a sharing of stations, apparatus, and staffing. The arrangement has been formed through cost sharing agreements, without the formality or bureaucracy of a joint powers agreement or consolidation. The District received 1,731 calls for service in fiscal year 18-19. The District has an ISO Public Protection Classification of 2 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, basic life support (EMT), and advanced life support (paramedic) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to Board meeting information, the District’s website provides information about fire prevention, fuel reduction, tree removal permits, and the District’s 2020 Residential Chipper Program. District Formation and Duties Formation Date 1993 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors elected to four-year terms through at-large elections. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Fire Protection / Emergency Medical Services MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 71 Attributes District Area (estimated square miles) 11.4 Population (estimated) 7,600 Assessed Valuation (FY 2018-19) $4,313,475,902 Total Revenue $5,406,946 Number of stations 2 Dispatch CAL FIRE ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 2 Without a Credible Source of Water 9 Regular Financial Audits Annual Annual Revenue Per Capita, Entire District (FY 17-18) $711 Average Portion of County 1% Property Tax Received 15¢/$1 Total Staffing 16.8 Calls for service in FY 18-19 1,731 Challenges and Opportunities The District takes a proactive approach to prepare for potential future challenges. The District fuel reduction costs rose in FY 18-19. The District decided to increase these expenditures to lower wildfire risks for its residents. The District was able to leverage grant funds to achieve additional fuel reduction. Property tax revenue accounted for 90.3% of District revenues in FY 17-18. In the event of an economic downturn, property tax revenue may not keep pace with inflation. In such circumstances, the District’s reserves, which held $9.1 million in funding in June 2018, could provide additional support if necessary. Overall, the District is financially and operationally viable. The District was concerned with the County EMS Agency’s previous RFP for the ambulance services. In summary, the District’s concerns were that it be allowed to keep its paramedics, maintain current ambulance response times, and keep mutual aid for ambulance to be delivered in an effective manner, allowing the closest ambulance to respond to an emergency. In January 2020, the EMS Agency extended its contract with AMR for two years, permitting more time to prepare an RFP for ambulance services15. The 2016 Soberanes Fire burned dangerously close to homes within the District and has influenced how the District works to mitigate wildfire risks. To reduce wildfire risks, the District adopted a Fire Defense Plan and focused its work on fuel reduction and modification within and around the District. The Fire Defense Plan addresses emergency access road systems, protection of environmentally sensitive plant species, identification of fuels modification treatment and target areas, and addresses undeveloped or vacant lot, land, or open space fuel reduction standards. The District has made improvements in emergency response capabilities, mutual aid, communication plans, and water delivery systems. The District continues to be a leader in fuels modification and emergency response capabilities to limit or prevent fires within the District. 15 Section 6, Comments on the Administrative Draft, includes a letter from the Monterey County EMS Agency dated June 8, 2020 commenting on this paragraph. LAFCO of Monterey County 72 Financial Summary District Revenues 2016-2017 2017-2018 Amount % of Total Amount % of Total Property Tax $4,598,934 85.3% $4,881,075 90.3% Use of Money & Property (Interest $145,841 2.7% $162,129 3% Income) Aid from other Government Agencies (Prop $294,282 5.4% $294,897 5.4% 172 Fund, Homeowner’s Property Tax Relief, Grant Revenue) Other Revenue $346,370 6.4% $64,692 1.2% Fire Mitigation Fees $4,283 1.2% $4,153 0.1% Revenue total $5,389,710 100% $5,406,946 100% District Fund Balance Ending General Fund Balance (June 2018) $9,132,478 Change in General Fund Balance (from June 2017 to June 2018) -3.7% Total Fund Balance/Annual Revenue Total (FY 17-18) 169% Financial Trends: In one of the past three fiscal years, the District’s expenditures exceeded its revenues. The increase in expenditures was mostly due to increased fuel reduction costs. For that year (FY 17-18), the District used a portion of its reserves to offset the increase in expenditures. The District’s reserve balances are sufficient to fund small short-term revenue imbalances. The line graph below shows the current financial trend. Financial Trends $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2015-16 2016-17 2017-18 Revenues Expenditures Reserves Options to address potential future financial challenges: The District does not have any significant debts and is in good financial standing. The District’s maintenance of healthy reserves is a practical way to prepare for future financial challenges. Opportunities for partnerships with other organizations and grants to perform fuel reduction may also support the District’s aims to mitigate future wildfire risk. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 73 LAFCO of Monterey County 74 5.5 Gonzales Rural Fire Protection District Summary/Background Since 1950, the Gonzales Rural Fire Protection District has provided services to the rural area surrounding the City of Gonzales. The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides fire protection and emergency medical services to approximately 650 people throughout 58 square miles in the rural area surrounding the City of Gonzales. The District was formed in 1950 with an all-volunteer firefighting staff. The District currently contracts with the City of Gonzales for services. The City of Gonzales has 18 staff, 4 full-time career staff and 14 paid call firefighters. The City and District received a total of 840 calls for service in 2019. The District has an ISO Public Protection Classification of 3 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to Board meeting agendas, the District’s website provides information about services, financial audits, the current fiscal year budget, and the District’s 2013 service agreement with the City of Gonzales. District Formation and Duties Formation Date 1950 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Three Directors elected to four-year terms through at-large elections. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Fire Protection / Emergency Medical Services Attributes District Area (estimated square miles) 58.4 Population (2010 estimated) 650 Total Revenues Assessed Valuation (FY 2018-19) $1,075,603,691 Total Revenues $221,698 Number of stations None (Utilizes City Station) Dispatch County (Through City) ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 3 Without a Credible Source of Water 3X Regular Financial Audits Annual Annual Revenue Per Capita, Entire District (FY 17-18) $341 Average Portion of County 1% Property Tax Received 15¢/$1 Total Staffing 18 (4 full-time and 14 paid call firefighters) Calls for service in 2019 (includes City) 840 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 75 Challenges and Opportunities One significant challenge for the District will be filling vacancies on the Board. One Board member, who has served for 35 years, will likely not remain on the Board when his term ends in 2022. Finding a replacement for this dedicated Board member and other future vacancies will likely prove challenging. The District has experienced administrative impacts from homeowners’ insurance carriers dropping coverage or increasing premiums dramatically. The Fire Chief’s administrative burden has increased in having to complete paperwork to address insurance companies’ questions and concerns. The City of Gonzales is planning for dramatic growth in the coming years within its designated sphere of influence (approved by LAFCO in 2014). If the City continues to grow and annex portions of the District, the District and the City believe that their service model will still work. As it grows, the City would accept that revenue from the District would decrease; however, the City anticipates that revenues from City growth would more than offset reduction in revenues from the District. The District has assurances from its contract with the City that it will continue to receive fire protection and emergency medical services from the City. The City Fire Department will likely increase its full-time staffing as city growth occurs and service needs increase. Currently, the Gonzales Fire Department relies on 14 paid call firefighters to augment its 4 full- time firefighters. One of the keys to the City’s successful Fire Department is that it consistently recruits Fire Academy graduates from Monterey Peninsula College. Financial Summary District Revenues 2017-2018 2018-2019 Amount % of Total Amount % of Total Property Tax $178,177 82.8% $183,175 82.6% Use of Money & Property (Interest Income) $902 0.4% $973 0.4% Aid from other Govt. Agencies (Prop 172 Fund, $36,052 16.8% $37,550 17% Homeowner’s Prop. Tax Relief, Grants) Revenue total $215,131 100% $221,698 100% District Fund Balance Ending General Fund Balance (June 2019) $3,954 Change in General Fund Balance (from June 2017 to June 2018) 0% Total Fund Balance/Annual Revenue Total (FY 17-18) 2% Financial Trends: In FY 19-20, the District’s expenditures exceeded its revenues. The increase in expenditures was due to the District transferring approximately $90,000 in additional funds to the City for fire services. In FY 19-20, the District used its reserve funding for the additional transfer in funds. The District’s contract with the City requires it to transfer its funds to the City that are in excess of its annual administrative costs. The line graph below shows the current financial trend. LAFCO of Monterey County 76 Financial Trends $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address potential future financial challenges: The District does not have debt and is in good financial standing. The District’s contract with the City of Gonzales guarantees that the City will provide services to the District until 2028 in exchange for the District’s transfer of most of its funds. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 77 LAFCO of Monterey County 78 5.6 Greenfield Fire Protection District Summary/Background Since 1940, the Greenfield Fire Protection District has provided services to the rural area surrounding the City of Greenfield. The District’s sphere of influence is larger than its District boundary since its sphere of influence also includes the City of Greenfield. There are no proposals for expansion. In 2017, LAFCO approved detachment of the City of Greenfield from the District, as further discussed in Previous LAFCO Actions (section 2.2 of this study). Since then, the City has successfully organized a municipal fire department and the citywide detachment has taken effect. There appears to be no likelihood that the City will need to return to being part of the District in the future. Therefore, this study recommends that the City of Greenfield be removed from the District’s sphere of influence. The map accompanying this district profile reflects these recommendations. The District provides fire protection and emergency medical services to approximately 700 people throughout 43 square miles in the rural area surrounding the City of Greenfield. The District was formed in 1940 with an all-volunteer firefighting staff. The District contracts with the City of Greenfield to receive fire protection and emergency medical services from the City Fire Department. The City of Greenfield has 28 staff, 1 full-time Fire Chief, 1 part-time Assistant Fire Chief, 6 full-time firefighters, and 20 paid call firefighters. The City and the District received a total of 1,573 calls for service in 2019. The District has an ISO Public Protection Classification of 5 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. At the time of this writing, the District did not have a website. District Formation and Duties Formation Date 1940 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors appointed to four-year terms by the Monterey County Board of Supervisors. Agency Duties Fire Protection / Emergency Medical Services MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 79 Attributes District Area (estimated square miles) 43.2 Population (estimated) 700 Assessed Valuation (FY 2018-19) $281,291,571 Total Revenues $1,002,218 Number of stations None (Utilizes City Station) Dispatch County (Through City) ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 5 Without a Credible Source of Water 10 Regular Financial Audits Biennial Annual Revenue Per Capita, Entire District (FY 17-18) $1,432 Average Portion of County 1% Property Tax Received 3¢/$1 Total Staffing 28 (7 full-time, 1 part-time, and 20 paid call firefighters) Calls for service in 2019 1,573 Challenges and Opportunities Approximately five years ago, the District’s boundaries included the City of Greenfield and the surrounding rural area. The District was experiencing increasing service demands and limited funding to meet those demands. To address these challenges, the City of Greenfield detached from the District and created the new City of Greenfield Fire Department. The City of Greenfield now provides fire protection and emergency medical services to the District, through a contract, in exchange for most of the District’s annual revenues. City voters passed a parcel-based special tax to increase funding for the new city fire department in May 2017. Additional information on the City of Greenfield’s detachment from the District is provided in the Section “Previous LAFCO Actions.” The District faces challenges with filling vacancies on the Board. One Board member, who has served for 25 years, will not remain on the Board after 2020. Finding a replacement for this dedicated Board member and other future vacancies will likely prove challenging. The City of Greenfield has annexed approximately 500 acres of as-yet undeveloped land within the last five years, with no further annexations known to be planned for the immediate future. As the City continues to incrementally grow and annex portions of the District, the District and the City believe that their service model will continue to operate. As it grows, the City recognizes that revenue from the District will decrease; however, the City anticipates that revenues from City growth will more than offset revenue reductions from the District. The District has assurances from its service contract that it will continue to receive fire protection and emergency medical services from the City unless the contract should terminate by consent of both the City and the District. The District reported that it can sustain services over the next five years. The City’s existing fire station (formerly owned by the District prior to the citywide detachment) needs to be expanded or replaced to meet the fire department’s needs. The fire station property has land that could accommodate an addition to the building. The City Fire Department increased its full-time staffing by three positions in FY 19-20 to meet its growing service needs. Currently, the City of Greenfield Fire Department has 1 full-time Fire Chief, 1 part-time Fire Chief, 3 full-time Captains, 3 full-time firefighters, and 20 paid call firefighters. LAFCO of Monterey County 80 Financial Summary District Revenues 2016-2017 2017-2018 Amount % of Total Amount % of Total Property Tax $185,506 21.4% $229,139 22.9% Use of Money & Property (Interest Income) ($456) -0.1% $55 0.01% Aid from other Govt. Agencies (Prop 172 Fund, $199,525 23% $248,079 24.7% Homeowner’s Prop. Tax Relief, Grants) Other Revenue $484,282 55.7% $524,945 52.4% Revenue total $868,857 100% $1,002,218 100% District Fund Balance Ending General Fund Balance (June 2018) $133,913 Change in General Fund Balance (from June 2017 to June 2018) 40% Total Fund Balance/Annual Revenue Total (FY 17-18) 13% Financial Trends: The District’s contract with the City requires it to transfer its funds to the City that are in excess of its annual administrative costs. The line graph below shows current financial trends. Financial Trends $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2015-16 2016-17 2017-18 Revenues Expenditures Reserves Options to address potential future financial challenges: The District is in good financial standing. It has low revenues and receives a low proportion of property tax. However, the District’s contract with the City of Greenfield guarantees that the City will provide services to the District in exchange for the District’s transfer of most of its annual revenue. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 81 LAFCO of Monterey County 82 5.7 Mission Soledad Rural Fire Protection District Summary/Background The District was formed in 1950 with an all-volunteer firefighting staff. The District provides fire protection and emergency medical services to approximately 1,150 people throughout 60 square miles in the rural area surrounding the City of Soledad. Since 1998, the Mission Soledad Rural Fire Protection District has provided services through a contract with the City of Soledad. The City of Soledad, in turn, contracts with CAL FIRE to provide services to the City and District. Through its CAL FIRE contract, the City of Soledad receives staffing services of 6.5 full-time staff. The District and the City received a total of 1,442 calls for service in FY 18-19. The District has an ISO Public Protection Classification of 3 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District did not provide its most recent biennial audit for FY 2015-16 and FY 2016-17. At the time of this writing, the District did not have a website. The District’s boundary is the same as its sphere of influence, and the District is currently not requesting any changes. In 2019, the County of Monterey approved a major expansion of the historic Paraiso Springs Resort property located in the foothills at the District’s far western edge. Part of this site is within the District boundaries. Pursuant to conditions of approval in the County’s land-use permits, the Paraiso Springs developers will be required to work with the District to bring the rest of the project site into the District’s sphere of influence and boundaries prior to project development. Staff has been in recent contact with the project developers and anticipates receiving a Paraiso Springs sphere amendment and annexation application later in calendar year 2020. Staff encourages the District to consider whether other lands in the vicinity of Paraiso Springs, and/or other lands on the District’s eastern edge16, would be appropriate to include in the upcoming sphere and annexation proposal. District Formation and Duties Formation Date 1950 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors appointed to four-year terms by the Monterey County Board of Supervisors. Agency Duties Fire Protection / Emergency Medical Services 16 Please refer to inset maps included in the District’s map at the end of this profile. Areas for future discussion and potential inclusion in the District are primarily the Local Responsibility Area-designated parcels shown with yellow fill color. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 83 Attributes District Area (estimated square miles) 59.6 Population (2010 estimated) 1,150 Assessed Valuation (FY 2018-19) $1,671,227,798 Total Revenues (FY 2017-18) $236,320 Number of stations None (Utilizes City Station) Dispatch CAL FIRE (Through City) ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 3 Without a Credible Source of Water 10 Regular Financial Audits Biennial Annual Revenue Per Capita, Entire District (FY 17-18) $205 Average Portion of County 1% Property Tax Received 8¢/$1 Total Staffing 6.5 Calls for service in FY 18-19 1,442 Challenges and Opportunities As discussed above, the County approved the Paraiso Springs Resort project in the unincorporated area outside Soledad in 2019. The City of Soledad is also planning for very substantial growth – primarily the 647-acre Miramonte sphere amendment and annexation project, currently on file with LAFCO and under review – in the coming years. These planned future developments would further stretch the City of Soledad’s fire protection and emergency services, which have currently reached service capacity with their current resources. In addition, these services are under increasing pressure from area growth and limited fiscal resources of the City of Soledad and the District. If area growth continues without increases in fire department resources, the City will face rising challenges in providing fire protection and emergency medical services to its service areas. If the fire department is maintained at its current level, it will not be large enough to have the depth of fire services required to stop larger fire incidents. CAL FIRE does not receive full-cost recovery for its operational coverage and administrative workloads, which are currently provided to the City at no cost. If the City of Soledad continues to grow and annex portions of the District, the District believes that their service model will continue to work. As the City grows and annexes areas within the District, revenue transfers from the District to the City will decrease; however, it is anticipated that revenues from City growth will more than offset revenue reductions from the District. The District has assurances from its service contract that it will continue to receive fire protection and emergency medical services from the City. The District reported that it can sustain services over the next five years. In recent years, the District has had challenges retaining its Board members and filling vacancies. The City’s existing fire station, which was built in 1950, needs to be expanded or replaced to meet the fire department’s needs. The City plans to apply for a Community Block Grant to upgrade its existing fire station. The planned Miramonte development also has a fire station planned as part of the development. LAFCO of Monterey County 84 Financial Summary District Revenues 2016-2017 2017-2018 Amount % of Total Amount % of Total Property Tax $128,055 55.8% $129,979 55% Use of Money & Property (Interest Income) $2,035 0.9% $2,211 1% Aid from other Govt. Agencies (Prop 172 Fund, $36,530 15.9% $36,667 15.5% Homeowner’s Property Tax Relief, Grants) Other Revenue $62,764 27.4% $67,463 28.5% Revenue total $229,384 100% $236,320 100% District Fund Balance Ending General Fund Balance (June 2018) $93,315 Change in General Fund Balance (from June 2017 to June 2018) 1.3% Total Fund Balance/Annual Revenue Total (FY 17-18) 39.5% Financial Trends: The District’s contract with the City requires it to transfer its funds to the City that are in excess of its annual administrative costs. The line graph below shows current financial trends. Financial Trends $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address potential future financial challenges: The District is financially stable. The District’s contract with the City of Soledad guarantees that the City will provide services to the District in exchange for the District’s transfer of most of its annual revenue for the term of the agreement, which is until June 30, 2028. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 85 Inset maps (yellow-highlighted areas): Additional areas for potential inclusion in the District as part of a future sphere amendment and annexation Paraiso Springs Resort Anticipated future sphere of influence amendment and annexation LAFCO of Monterey County 86 5.8 Monterey County Regional Fire Protection District Summary/Background Formed in 1934, the Monterey County Regional Fire Protection District provides services from rural areas north of the City of Salinas south to the Federal Ventana Wilderness and the outskirts of the City of Gonzales, from the Cities of Marina, Seaside, and Monterey on the west to the San Benito County line in the east. The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides a high level of fire protection and emergency paramedic medical services to approximately 38,350 people throughout its 400-square mile district. The District originally formed in 1934 as Salinas Rural Fire Protection District. The District changed its name to Monterey County Regional Fire Protection District in 2009. In 2010, LAFCO approved a consolidation of the Carmel Valley FPD into the District. The District provides ambulance service to Carmel Valley residents. The District currently has 77 staff, 65 paid personnel and 12 paid call firefighters. The District received 3,579 calls for service in 2019. The District has an ISO Public Protection Classification of 3 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, basic life support (EMT), advanced life support (paramedic), and ambulance services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to Board meeting information, the District’s website provides information about recent audits, fire prevention, public education programs, and volunteer firefighter program. District Formation and Duties Formation Date 1934 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Seven Directors appointed to four-year terms by the Monterey County Board of Supervisors Agency Duties Fire Protection / Emergency Medical Services Attributes District Area (estimated square miles) 399.6 Population (2010 estimated) 38,350 Assessed Valuation (FY 2018-19) $11,136,715,714 Total Revenues (FY 2018-19) $17,760,083 Number of stations 7 Dispatch County ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 3 Without a Credible Source of Water 10 Regular Financial Audits Annual Annual Revenue Per Capita, Entire District (FY 18-19) $463 Average Portion of County 1% Property Tax Received 13¢/$1 Total Staffing 77 (65 full-time staff and 12 paid call firefighters) Calls for service in 2019 3,579 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 87 Challenges and Opportunities The District’s boundaries are adjacent to five cities, Monterey, Del Rey Oaks, Seaside, Marina, and Salinas. As these cities grow and annex portions of the District in the future, the District could face significant financial impacts, affecting its livelihood. The City of Salinas annexed a few thousand acres adjacent to its City in recent years. However, the District was able to negotiate retention of its base property tax. As other Cities seek to annex lands within the District in the future, the District’s retention of its base property tax is essential to maintaining its financial health. The District opened its new East Garrison Station in 2018, which serves the new East Garrison community of 1,400 homes, California State University Monterey Bay’s East Campus housing of 1,253 housing units, and the surrounding 86 miles of trails within the Fort Ord National Monument. The District collects a special tax within the East Garrison subdivision to fund the District’s services in this response zone in a self-sufficient manner, not relying on District revenues from other sources to operate the station. The District faces the challenge of reliance on property taxes for a significant portion of its revenues (70% of its revenues in FY 2018-19). Outside of the East Garrison community, the District has experienced limited growth in new development within its boundaries. New development would create additional assessed value within the District and, in turn, additional District property tax revenues, which are needed in the long-term to keep pace with rising service costs. To address the need to increase its revenues, the District looks for ways to diversify its revenue sources. In addition to collecting its special tax in East Garrison, the District collects a second special tax in the former Carmel Valley Fire District Boundary to support its EMS and ambulance response. The District also collects a cannabis tax that is only applied to cannabis operations. The District collects these taxes perpetually and spends its tax revenues on providing fire and emergency services. The District reported that it could sustain its operations for the next five years. The District also faces the challenge of a shortage of qualified candidates to meet current and expected vacancies. The shortage of qualified candidates is likely due to the changing priorities of the working-class generation and the increased complexity and responsibilities of the Firefighter position. Photo credit: Monterey County Regional Fire Protection District LAFCO of Monterey County 88 Financial Summary District Revenues 2017-2018 2018-2019 Amount % of Total Amount % of Total Property Tax $11,596,919 48.4% $12,432,343 70% Use of Money & Property (Interest Income) $40,392 0.2% $67,497 0.4% Aid from other Govt. Agencies (Prop 172 $1,494,591 6.2% $1,444,594 8.1% Fund, Homeowner’s Prop. Tax Relief, Grants) Other Revenue $10,319,128 43.1% $3,444,523 19.4% Fire Mitigation Fees $504,148 2.1% $371,126 2.1% Revenue total $23,955,178 100% $17,760,083 100% District Fund Balance Ending General Fund Balance (June 2019) $5,741,934 Change in General Fund Balance (from June 2018 to June 2019) -2% Total Fund Balance/Annual Revenue Total (FY 17-18) 32% Financial Trends: In its FY 19-20 budget, the District’s expenditures are expected to exceed its revenues by nearly $1.5 million. If this occurs, the District’s reserve balances will be sufficient to offset the revenue imbalance. The line graph below shows the current financial trend. Financial Trends $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address potential future financial challenges: As costs for providing fire protection and emergency services increase, the District may reach a point in the future when expenditures exceed revenues on a consistent basis. If this occurs, the District may need to consider additional options for increasing its revenues. One potential option might be to seek voter approval of a ballot measure such as a special tax or benefit assessment district to increase District revenues to the amount needed to maintain services. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 89 LAFCO of Monterey County 90 5.9 Monterey Peninsula Airport District (Fire Protection and Emergency Medical Services Only) Summary/Background Since 2013, the Monterey Peninsula Airport District has provided fire protection and emergency services on the site of the Monterey Regional Airport, which covers an area of approximately 0.8 of a square mile, through a contract with the City of Monterey. The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District originally formed in 1941. The District owns and operates the Monterey Regional Airport and airport properties. Through its contract with the City of Monterey, the District currently receives staffing services of 12 full-time firefighters. The District received 172 calls for service in 2019. The District has an ISO Public Protection Classification of 2 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, and basic life support (EMT). Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. The District’s website provides information about recent audits, fire services, and District Board meetings. District Formation and Duties Formation Date 1941 Legal Authority California State Senate Bill 1300, 1941 Board of Directors Five Directors elected to four-year terms through a by-District election process. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Commercial Airline Services, General Aviation Support and Maintenance, and Military Support as a Landing Facility Attributes District Area (estimated square miles) 0.8 Population (2010 estimated) N/A Assessed Valuation (FY 2018-19) N/A Total Operating Revenues (FY 2018-19) $9,475,051 Number of stations 1 Dispatch County ISO Public Protection Classification 2 Regular Financial Audits Annual Annual Revenue Per Capita N/A Total Staffing 12 Calls for service in 2019 172 Challenges and Opportunities Prior to 2013, the District had employed 12 firefighters to meet its fire protection and emergency response needs. At that time, the Airport reviewed its operational expenditures related to fire protection and found that it could potentially save funds by contracting with the City of Monterey directly for fire protection and emergency response services. The District entered a contract with the City of Monterey for services in MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 91 2013. The District’s contract with the City of Monterey resulted in annual cost savings for the District without the previous pension liability and other costs associated with employing firefighters directly. The contract also benefits the City of Monterey because the City has had a long-term goal of increasing its fire protection and emergency medical services presence in the vicinity of the Monterey Airport. The District approved its Airport Master Plan in 2018. One component of the Master Plan is a multi-phased safety enhancement project at the Airport. This project includes the relocation of about 1,850 linear-feet of Taxiway “A” 52.5 feet away from runway 10R-28L to meet safety standards. Additional components of the project include a new relocated terminal building (where parking is currently located), new hangars and general aviation services on the north side of the airport, and a new fire station. The Airport Master Plan would be implemented over the next 10 years and includes significant costs. The District expects that a significant portion of the costs to be funded by Federal Aviation Administration (FAA) grants. The District faces challenges in providing firefighting and rescue services that are unique to the airport property. This is due to the special nature of potential airport hazards and the requirements of Federal regulations. Airports serving air carrier aircraft with more than 30 seats are required to receive Federal Aviation Authority certification under Title 14, Code of Federal Regulations, Part 139. This certification requires that the airport provide aircraft rescue and firefighting services during air carrier operations. Also, due to Federal air safety requirements the airport must be staffed with personnel who have received specialized training and prepared with specialized equipment to respond to aircraft accidents and gasoline fires. The District has Airport Rescue Fire Fighting (ARFF) vehicles with the ability to move on rough terrain outside the runway and airport area, a large water capacity, a foam tank, and a high-capacity pump. Financial Summary Operating Revenues (From All Sources) 2017-2018 2018-2019 Amount % of Total Amount % of Total Commercial aviation $754,605 8.2% $863,475 9.1% General aviation $390,446 4.3% $435,218 4.6% Terminal leases and concessions $4,171,551 45.4% $4,417,644 46.6% Heavy general aviation $1,068,931 11.6% $1,132,318 12% Light general aviation & other aviation tenants $458,570 5% $454,130 4.8% Non-aviation tenants $1,759,318 19.1% $1,756,559 18.5% Other operating revenue $590,322 6.4% $415,707 4.4% Revenue total $9,193,743 100% $9,475,051 100% District Fund Balance Cash and Cash Equivalents (June 2019) $5,269,056 Change in Total Fund Balance (from June 2018 to June 2019) -6% Total Fund Balance/Annual Revenue Total (FY 18-19) 56% Financial Trends: In FY 16-17, the District’s operating expenditures exceeded its operating revenues by several million dollars. However, the District’s available funds were sufficient to offset the revenue imbalance. The line graph below shows the past financial trend and budgeted operating revenues and expenses in FY 19-20. LAFCO of Monterey County 92 Financial Trends $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address potential future financial challenges: The District collects no property taxes and is generally self-funded, receiving nearly half of its operating revenues from its terminal leases and concessions (46.6% in FY 18-19). LAFCO does not know to what degree and for how long COVID-19 will financially impact the District’s annual revenues. However, the District has taken steps already to reduce expenses given its current financial outlook. Over the next 10 to 15 years, the District expects to apply for and receive significant FAA grants to support implementation of its Airport Master Plan Projects. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 93 LAFCO of Monterey County 94 5.10 North County Fire Protection District of Monterey County Summary/Background Since 1949, the North County Fire Protection District has provided services to rural communities in northern Monterey County. The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides fire protection and emergency medical services to approximately 42,000 people throughout 123 square miles in northern Monterey County. The District currently has 37 staff, 22 full-time staff and 15 reserve firefighters. The District received 3,437 calls for service in 2019. The District has an ISO Public Protection Classification of 4 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to meeting agendas and agenda materials, the District’s website provides information about wildfire preparedness, Fire Marshal documents, and burn permits. District Formation and Duties Formation Date 1949 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors elected to four-year terms through at-large elections. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Fire Protection / Emergency Medical Services Attributes District Area (estimated square miles) 122.9 Population (2010 estimated) 42,000 Assessed Valuation (FY 2018-19) $4,420,805,779 Total Revenues $6,675,392 Number of stations 3 Dispatch County ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 4 Without a Credible Source of Water 10 Regular Financial Audits Annual Annual Revenue Per Capita, Entire District (FY 18-19) $159 Average Portion of County 1% Property Tax Received 9¢/$1 Total Staffing 37 (22 full-time and 15 Reserve Firefighters) Calls for service in 2019 3,437 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 95 Challenges and Opportunities One of the District’s main challenges has been having to reduce services because of a revenue imbalance in FY 2018-19. Due to a $1 million State grant expiring in February 2019 and failure of a 2018 ballot measure for a special tax to replace the grant funding, the District had to cut services by reducing staffing from 31 to 22 employees. Another challenge the District faces is being highly dependent on property tax revenue, which accounted for 73% of its annual revenues in FY 2018-19. When the powerplant in Moss Landing was sold for a much lower price, it resulted in significant reduction in assessed valuation within the District and a corresponding decline in the District’s property tax revenues. Community growth within the District, a factor that could increase property tax revenue, has been almost non-existent in recent years. As of June 30, 2019, the District is paying down significant debt of $1,948,557 in a loan (used to pay off its CalPERS side fund liability) from Santa Cruz County Bank, $1,700,800 in net outstanding postemployment benefits (OPEB) obligation, and $11,500,512 in net pension liability to CalPERS. Annual debt service payments in 2019 were $341,148. The District anticipates increased costs in the next five to ten years as a result of its increasing CalPERS Unfunded Accrued Liability. Other significant upcoming expenses include replacement of firefighting equipment and needed improvements to the District’s three fire stations for accessibility and co-gender facilities. The District is currently looking into possible options and opportunities to address its financial challenges. District representatives reported that a new power company’s battery-based powerplant in Moss Landing and CalAm’s desalination project north of Marina will help to increase overall assessed valuation within the District and, thereby, bring in more property tax dollars for the District. The District is looking to propose a new benefit assessment district ballot measure in a Spring 2021 election that could raise annual revenue, allowing the District to maintain and restore services. Financial Summary District Revenues 2017-2018 2018-2019 Amount % of Total Amount % of Total Property Tax $4,656,224 61.3% $4,900,267 73.4% Use of Money & Property (Interest Income) $9,723 0.1% $9,194 0.1% Aid from other Government Agencies (Prop 172 $750,286 9.9% $739,939 11.1% Fund, Homeowner’s Property Tax Relief, Grant Revenue) Other Revenue $2,155,468 28.4% $1,005,593 15.1% Fire Mitigation Fees $23,539 0.3% $20,399 0.3% Revenue total $7,595,240 100% $6,675,392 100% District Fund Balance Ending General Fund Balance (June 2019) $1,178,552 Change in General Fund Balance (from June 2018 to June 2019) -32% Total Fund Balance/Annual Revenue Total (FY 18-19) 17.7% Financial Trends: In two of the past four fiscal years, the District’s expenditures outpaced its revenues. For these years, the District used its reserve funds to offset the revenue imbalance. The District’s reserve balances are approximately one fifth of its annual expenditures, which means that it has a relatively small reserve fund that can used to absorb revenue imbalances. The District reported that it could sustain its operations for LAFCO of Monterey County 96 the next five years. The District has implemented available cost saving measures. Consequently, measures are needed to augment revenues in order to maintain or restore services to previous levels and build funds for planned expenditures to replace aging equipment and upgrade fire stations. The line graph below shows the current financial trend, which shows an acute need for the District to increase revenue. Financial Trends $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address the revenue imbalance: The District would immediately need an estimated increase of $1.8 million in additional annual revenue to address its current financial challenges and build reserves for future long-term expenditures. Such additional funding is needed to restore staffing to FY 18-19 levels. The District previously proposed a special tax ballot measure in Fall 2018 to replace annual revenue of $1 million from an expiring State grant. However, the measure failed to obtain the required two-thirds majority affirmative vote. The District is currently investigating the cost and feasibility of moving forward with a new benefit assessment district ballot measure to increase revenues by approximately $1.8 million annually. The option of completing a new benefit assessment district appears most likely to generate the additional funding needed for the District to maintain service levels. Photo credit: North County Fire Protection District MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 97 LAFCO of Monterey County 98 5.11 Pebble Beach Community Services District (Fire Protection and Emergency Medical Services Only) Summary/Background The Pebble Beach Community Services District provides services through a contract with the California Department of Forestry and Fire Protection (CAL FIRE). The District’s boundary is the same as its sphere of influence and there are no proposals for expansion. The District provides a high level of fire protection and emergency paramedic medical services to approximately 4,100 people throughout 8 square miles to the north of the City of Carmel and to the west of Cities of Monterey and Pacific Grove. The District was formed in 1982. Through its contract with CAL FIRE, the District currently receives staffing services of 30.2 full-time staff. The District works closely with the Carmel Highlands and Cypress Fire Protection Districts, which are also staffed through CAL FIRE. The residents of these three special districts benefit from a sharing of stations, apparatus, and staffing. The arrangement has been formed through cost sharing agreements, without the formality or bureaucracy of a joint powers agreement or consolidation. The District received 856 calls for service in FY 17-18. The District has an ISO Public Protection Classification of 1 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, basic life support (EMT), and advanced life support (paramedic) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District completes its annual audits on time. In addition to Board meeting information, the District’s website provides information about District financial information, fire prevention, defensible space, and Fire Defense Plans. District Formation and Duties Formation Date 1982 Legal Authority Community Services District Law, California Govt. Code, section 61000 et seq. Board of Directors Five Directors elected to four-year terms through at-large elections. If the number of candidates equals the number of eligible seats, or if there are no candidates, the Board of Supervisors shall make these appointments pursuant to Elections Code section 10515. Agency Duties Fire Protection and Emergency Medical Services, Supplemental Law Enforcement, Wastewater Collection and Treatment, Recycled Water Distribution, and Garbage Collection, Disposal and Recycling. Photo credit: Pebble Beach Community Services District MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 99 Attributes District Area (estimated square miles) 8.3 Population (2010 estimated) 4,100 Assessed Valuation (FY 2018-19) $6,813,639,438 Total General Fund Revenues (FY 2018-19) $13,348,258 Number of stations 2 Dispatch CAL FIRE ISO Public Protection Classification: 1 Regular Financial Audits Annual Annual Expenditure for Fire Protection and $1,544 Emergency Medical Services Per Capita (FY 18-19) Average Portion of County 1% Property Tax Received 9¢/$1 Total Staffing 30.2 Calls for service in FY 17-18 856 Challenges and Opportunities The District takes a proactive approach to prepare for potential future challenges. The District recently acted to increase expenditures in fuel reduction to lower wildfire risks for its residents. Property tax revenue accounted for 94.3% of District General Fund revenues in FY 17-18. In the event of an economic downturn, property tax revenue may not keep pace with inflation. In such circumstances, the District’s general government service fund balance of $7,326,548 (June 2019) could provide additional support if necessary. Overall, the District is financially resilient. The District previously expressed concerns with the County EMS Agency’s RFP for the ambulance services. The District was concerned that it be allowed to keep its paramedics, maintain current ambulance response times, and keep mutual aid for ambulance to be delivered in an effective manner, allowing the closest ambulance to respond to an emergency. In January 2020, the EMS Agency extended its contract with AMR for two years, providing more time to prepare an RFP for ambulance services17. The 2016 Soberanes Fire and other recent fires have reminded the residents of Pebble Beach of the Morse Fire that occurred within the District in 1987. The Morse Fire burned 160 acres and destroyed 31 homes causing an estimated $18 million dollars in damage. Shortly after the Morse Fire, fire prevention efforts began within the District to help prevent another large damaging fire. The District passed ordinances regulating building construction, defensible space, fireworks, open burning of trash and forest debris, and perimeters and access to structures within state responsibility areas. The District adopted a Fire Defense Plan (FDP) to address the threat of wildfire in the Del Monte Forest, in 1988, which is updated every two years and includes the current two-year work plan. The District continues to work on fuel reduction and modification within and around the District. The Fire Defense Plan addresses emergency access road systems, protection of environmentally sensitive plant species, identification of fuels modification treatment and target areas, and addresses undeveloped or vacant lot, land, or open space fuel reduction standards. The District has made improvements in emergency response capabilities, mutual aid, communication plans, and water delivery systems. The District continues to be a leader in fuels modification and emergency response capabilities to limit or prevent fires within the District. 17 Section 6 Comments on the Administrative Draft includes a letter from the Monterey County EMS Agency dated June 8, 2020 commenting on this paragraph. LAFCO of Monterey County 100 Financial Summary General Fund Revenues (For All Community Services Provided) 2017-2018 2018-2019 Amount % of Total Amount % of Total Property Tax $ 11,898,723 94.9% $12,585,293 94.3% Fire Service Special Tax $ 198,247 1.6% $ 200,090 1.5% Prop 172 Funds $ 203,458 1.6% $ 211,907 1.6% Franchise Fees $ 100,772 0.8% $ 129,561 1% Investment Income $ 54,909 0.4% $176,102 1.3% Miscellaneous $ 85,302 0.7% $45,305 0.3% Revenue total $12,541,411 100% $13,348,258 100% District Fund Balance General Government Services Fund Balance (June 2019) $7,326,548 Change in General Government Services Fund Balance (June 2018 to June 2019) 58% General Government Service Fund Balance/Annual Revenue Total (FY 18-19) 55% Financial Trends: The District consistently maintains its revenues above its expenditures. In FY 18-19, the District’s General Fund revenues exceeded its expenses by nearly $4.8 million. The line graph below shows the current financial trend. Financial Trends $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2016-17 2017-18 2018-19 Revenues Expenditures Reserves Options to address potential future financial challenges: The District does not have any significant debts and is strong financially. The District’s maintenance of healthy reserves will allow it to meet future financial challenges. Opportunities for partnerships with other organizations and grants to perform fuel reduction may also support the District’s objectives to reduce future wildfire risk. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 101 LAFCO of Monterey County 102 5.12 South Monterey County Fire Protection District Summary/Background Formed in 1997, the South Monterey County Fire Protection District provides services to a large unincorporated portion of the southern Salinas Valley, including Arroyo Seco, the San Antonio Valley, and the unincorporated area around King City. The District’ssphere of influence is larger than its District Boundary and there are no proposals for expansion. The District provides fire protection and emergency medical services to approximately 4,600 people throughout its 637-square mile district. The District’s predecessor, County Service Area (CSA) 61, was originally formed in 1971 to provide structural fire protection in the unincorporated area within the King City Union School District boundaries. CSA 61 was officially dissolved, and the South Monterey County Fire Protection District formed in 1997. The District currently has 36.6 staff, 1.6 paid personnel and 35 paid call firefighters. The District received 455 calls for service in FY 17-18. The District has an ISO Public Protection Classification of 8 within five road miles of a fire station where there is a credible water source for fighting fires. The District provides fire protection, technical rescue, and basic life support (EMT) services. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. The District is on a biennial audit cycle. However, the District’s audit for fiscal years 2015-16 and 2016-17 did not include FY 2015-16 information. At the time of this writing, the District did not have a website. District Formation and Duties Formation Date 1997 Legal Authority Fire Protection District Law of 1961, Health & Safety Code, section 13800 et seq. Board of Directors Five Directors appointed to four-year terms by the Monterey County Board of Supervisors Agency Duties Fire Protection / Emergency Medical Services Attributes District Area (estimated square miles) 637.2 Population (2010 estimated) 4,600 Assessed Valuation (FY 2018-19) $2,205,727,576 Total Revenues (FY 2016-17) $662,965 Number of stations 4 Dispatch CAL FIRE ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 8 Without a Credible Source of Water 10 Regular Financial Audits Biennial Annual Revenue Per Capita, Entire District (FY 16-17) $144 Average Portion of County 1% Property Tax Received 1¢/$1 Total Staffing 36.6 (1.6 full-time staff and 35 paid call firefighters) Calls for service in FY 2017-18 455 MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 103 Challenges and Opportunities The District faces the challenge of serving a vast area (637 square miles) with four fire stations staffed through volunteer firefighters. Additionally, the District receives an extremely low portion of the 1% property tax, with its allocations averaging only one cent per property tax dollar. Through a service contract, CAL FIRE provides management and administrative services to the District. During the fire season (June to November), to manage its State Responsibility Areas, CAL FIRE staffs three seasonal fire station in or around the District, one within the District’s boundaries in the community of Bradley, one adjacent to the District near the community of Lockwood, and one within the District sphere of influence near the community of Parkfield. When CAL FIRE staffs these three stations, CAL FIRE provides mutual aid and is often the first responder to emergency incidents within or adjacent to the District. When fire season staffing ends each year, the community must rely on the District’s four fire stations to respond to emergencies. The District responds to emergencies in the Lockwood community through sharing of facilities at the CAL FIRE Lockwood Forest Fire Station. To improve its services to the community of Lockwood, the District has plans to build a new fire station in Lockwood by fiscal 2020 next to Nacitone Museum at 68901 Jolon Rd Monterey, CA 93426. The District plans to obtain financing from a long-term low interest loan to build this new fire station. Financial Summary District Revenues 2014-2015 2016-2017 Amount % of Total Amount % of Total Property Tax $277,662 52.1% $337,098 50.9% Use of Money & Property (Interest Income) $6,500 1.2% $18,536 2.8% Aid from other Govt. Agencies (Prop 172 Fund, $118,044 22.2% $146,178 22% Homeowner’s Property Tax Relief, Grants) Other Revenue $43,992 8.3% $77,128 11.6% Fire Suppression Assessment Fee $86,186 16.2% $84,025 12.7% Revenue Total $532,384 100% $662,965 100% District Fund Balance Ending General Fund Balance (June 2017) $1,426,927 Change in General Fund Balance (from June 2016 to June 2017) -5.5% Total Fund Balance/Annual Revenue Total (FY 16-17) 215% Financial Trends: The District’s expenditures slightly exceeded its revenues in FY 14-15 and 16-17, resulting in combined a negative cashflow of approximately $200,000. The District’s reserve balances were sufficient to offset the revenue imbalances. The District’s revenues were higher than its expenditures in FY 15-16 and 17-18, resulting in a combined positive cash flow of approximately $1,088,000. The line graph below shows the current financial trend. LAFCO of Monterey County 104 Financial Trends $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2014-15 2015-16 2016-17 2017-18 Revenues Expenditures Reserves Options to address potential future financial challenges: Although staffing costs for providing fire protection and emergency services are much lower for a volunteer-based operation, the District may reach a point in the future when expenditures exceed revenues on a consistent basis. If this occurs, the District may need to consider additional options for increasing its revenues. One potential option might be to seek voter approval of a ballot measure such as a special tax or benefit assessment district to increase District revenues to the amount needed to maintain services. Photo credit: South Monterey County Fire Protection District MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 105 LAFCO of Monterey County 106 5.13 Big Sur Volunteer Fire Brigade Summary/Background Since 1974, the Big Sur Volunteer Fire Brigade has provided services to the rural community of Big Sur. The Brigade is a 501(c)3 nonprofit, chartered by the State of California, and is not a public agency. Consequently, the Brigade is not subject to the Cortese-Knox-Hertzberg Act of 2000, as amended, or regulated by LAFCO. The Brigade’s profile is provided for informational purposes since it provides fire protection and emergency services in unincorporated Monterey County. The Brigade provides fire protection and emergency medical services to approximately 4,350 people over an area of 254 square miles along the southern half of Monterey County coastline and to the inland to areas within the Los Padres National Forest. The Brigade was chartered by the State of California in 1974 and received its non-profit. The Brigade is staffed by volunteers. The Brigade received 303 calls for service in 2019. The Brigade has an ISO Public Protection Classification of 8 within five road miles of a fire station where there is a credible water source for fighting fires. The Brigade provides fire protection, technical rescue, and basic life support (EMT) services. The Brigade completes its annual form 990 for the Internal Revenue Service (IRS). The Brigade’s website provides information about its volunteer firefighters, newsletters, fire prevention, and burn permits. Brigade Formation and Duties Formation Date 1974 Legal Authority Health & Safety Code, section 14825 et seq. Board of Directors Nine Directors are listed on the Brigade’s website Brigade Duties Fire Protection / Emergency Medical Services Attributes Service Area (estimated square miles) 254 Population (estimated) 4,350 Assessed Valuation (FY 2018-19) $599,022,353 Total Revenues (2018) $570,788 Number of stations 3 Dispatch County ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 8 Without a Credible Source of Water 10 IRS form 990 Annual Annual Revenue Per Capita, Entire Brigade (2018) $131 Average Portion of County 1% Property Tax Received 0¢/$1 Total Staffing 29 volunteers Calls for service in 2019 303 Challenges and Opportunities One of the Brigade’s key challenges has been the rising volume of visitors in its service area. Before the recent COVID-19 pandemic, visitors to the Big Sur area had been expected to increase from 5 million to 10 million in the next five years. Such an increase in visitors will result in a significant increase in service calls. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 107 Reliable mobile phone service throughout the service area is a significant challenge. Lack of mobile phone reception in some areas has delayed reporting of an emergency to first responders. Working with wireless phone companies to increase the number of cell phone towers in the service area would help alleviate this issue. Recruitment of volunteer firefighters is an additional challenge. Although the Brigade currently has 24 volunteer firefighters, the fire chief has identified 30 as the ideal number of volunteers. Since the Brigade is funded primarily from donations from the local community, the fire chief and other volunteers have a double duty of providing service, while committing time for community fundraisers. The Brigade has strong community support. Some businesses in the community provide opportunities for customers to donate to the Brigade. The Brigade is looking to apply for a drone program citizen grant, which could bring in additional resources. The Brigade works well with the adjacent Mid-Coast Volunteer Fire Brigade. The Brigade is open to opportunities to work with LAFCO to explore options to assure the continued viability of its volunteer model. Such opportunities may include many of the options listed under this Studies Executive Summary’s Options for Consideration related to County-Level/Countywide options. Financial Summary Brigade Revenues 2017 2018 Amount % of Total Amount % of Total Contributions and Grants $429,615 74.8% 442,889 77.6% Program Service Revenue $129,722 22.6% $126,476 22.2% Investment Income $81 0% $170 0% Other Revenue $14,694 2.6% $1,253 0.2% Revenue Total $574,112 100% $570,788 100% Brigade Fund Balance Ending Total Net Assets or Fund Balance (Dec. 2018) $3,012,489 Change in Total Fund Balance (from Dec. 2017 to Dec. 2018) -2.6% Total Fund Balance/Annual Revenue Total (2018) 528% Financial Trends: Based on the Brigade’s IRS form 990 filings, the Brigade has a 3-year stable trend of revenues staying above expenses. Since the Brigade is staffed by all-volunteers, the Brigade’s expenses are significantly lower than a fire protection agency staffed by full-time employees. At the end of 2018, the Brigade held healthy fund balance of approximately $2,476,367, which was four times greater than the Brigade’s 2018 expenditures of $484,815. The Brigade reported that it could sustain its operations for the next five years. The line graph below shows the current financial trend. LAFCO of Monterey County 108 Financial Trends $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2016 2017 2018 Revenues Expenditures Reserves Options to address potential future financial challenges: One potential future financial challenge is that, due to increased tourism, the Brigade may reach a point of needing additional resources to increase services to address a high call volume. Under this circumstance, the Brigade may want to investigate options to increase its revenues. One option is to work with the County of Monterey to negotiate PILT funding from Los Padres National Forest since the Brigade is an agency providing local services on a portion of these federal lands. Photo credit: Big Sur Volunteer Fire Brigade MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 109 LAFCO of Monterey County 110 5.14 Mid-Coast Volunteer Fire Brigade Summary/Background Since 1979, the Mid-Coast Volunteer Fire Brigade has provided services to the rural communities of Garrapata, Palo Colorado, Rocky Creek, Bixby, and the Coast from Garrapata State Park south to “South Forty” on Hurricane Point. The Brigade is a 501(c)3 nonprofit, chartered by the State of California, and is not a public agency. Consequently, the Brigade is not subject to the Cortese-Knox-Hertzberg Act of 2000, as amended, or regulated by LAFCO. The Brigade’s profile is provided for informational purposes since it provides fire protection and emergency services in unincorporated Monterey County. The Brigade provides fire protection and emergency medical services to approximately 270 people over an area of 41 square miles along the middle of Monterey County’s coastline and to the inland rural areas. The Brigade was chartered by the State of California in 1979 and received its non-profit status. The Brigade is staffed by 16 volunteers. The Brigade received 110 calls for service in fiscal year 2018-19. The Brigade has an ISO Public Protection Classification of 5 within five road miles of a fire station where there is a credible water source for fighting fires. The Brigade provides fire protection, technical rescue, and basic life support (EMT) services. On an annual basis, the Brigade completes its form 990 for the Internal Revenue Service (IRS). The Brigade’s website provides information about volunteer firefighters, fire safety, and burn permits. Brigade Formation and Duties Formation Date 1979 Legal Authority Health & Safety Code, section 14825 et seq. Board of Directors The Brigade has Five Directors on its Board Brigade Duties Fire Protection / Emergency Medical Services Attributes Service Area (estimated square miles) 41 Population (2018 estimated) 270 Assessed Valuation (FY 2018-19) $279,557,354 Total Revenues (2018) $151,791 Number of stations 1 Dispatch CAL FIRE ISO Public Protection Classification: Within 5 miles of a Station and with a Credible Source of Water 5 Without a Credible Source of Water 7B IRS form 990 Annual Annual Revenue Per Capita, Entire Brigade (2018) $562 Average Portion of County 1% Property Tax Received 0¢/$1 Total Staffing 16 volunteers Calls for service in FY 18-19 110 Challenges and Opportunities One of the Brigade’s significant challenges has been the rising number of visitors in its service area. Before the recent COVID-19 pandemic, visitors to the Big Sur area, directly south of the Brigade’s service area, MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 111 had been expected to increase from 5 million to 10 million in the next five years. Such an increase in visitors, traversing and recreating within the Brigade’s service area, will result in a significant increase in service calls. Mid-Coast Volunteer Fire Brigade would like to replace its mobile radio and vehicle radio equipment. The cost is estimated to be around $32,000 to replace 5 radios, which is a significant expense. The Brigade anticipates that conducting fundraisers and obtaining grants will allow them to purchase this needed equipment. The Brigade reported experiencing less than ideal to poor communications with AMR, the Countywide ambulance company. The Brigade uses its own radio frequency due to canyons in its service area. AMR does not always remember to adjust its radio frequencies to communicate with the Brigade. Reliable mobile phone service throughout the service area is a significant challenge. Lack of mobile phone reception in some areas has delayed reporting of an emergency to first responders. Working with wireless phone companies to increase the number of cell phone towers in the service area would help alleviate this issue. The service area is recovering from the 2016 Soberanes Fire. Homeowners are rebuilding homes lost to fire, many without going through the County of Monterey permitting process. Some homeowners find that it is nearly impossible to purchase homeowners’ insurance. State of California firefighter training standards are making it more difficult to train volunteers. To receive firefighter 1 certification, it requires a firefighter to train at an academy or a CAL FIRE training facility. Volunteer firefighters may not have the flexibility to take months off from work to obtain this training. The Brigade is looking for more opportunities for their firefighters to obtain emergency response training. Since the Brigade is funded primarily from donations from the local community, the fire chief and other volunteers have a double duty of providing service, while committing time for community fundraisers. The Brigade has strong community support and a working volunteer firefighter program. The Brigade’s Fire Chief actively recruits volunteers from the community, which is a key to the success of the program. The Brigade is working on a mutual aid agreement with Carmel Highlands Fire Protection District. The Brigade works well with the adjacent Big Sur Volunteer Fire Brigade. The Brigade may be open to reorganizing as a public fire district and/or consolidating with Big Sur Fire Brigade in the future if such changes prove to be feasible and beneficial. Financial Summary Brigade Revenues 2017 2018 Amount % of Total Amount % of Total Contributions and Grants $361,621 100% 151,782 100% Program Service Revenue $0 0% $0 0% Investment Income $9 0% $9 0% Other Revenue $0 0% $0 0% Revenue Total $361,630 100% $151,791 100% Brigade Fund Balance Ending Total Fund Balance (Dec. 2018) $313,612 Change in Total Fund Balance (from Dec. 2017 to 9.7% Dec. 2018) Total Fund Balance/Annual Revenue Total (2018) 207% LAFCO of Monterey County 112 Financial Trends: Based on the Brigade’s IRS form 990 filings, the Brigade has a trend of declining revenues and expenses. Since the Brigade is staffed by all-volunteers, the Brigade’s expenses are significantly lower than a fire protection agency staffed by full-time employees. At the end of 2018, the Brigade held healthy fund balance of approximately $313,612, which was approximately 1.5 times greater than the Brigade’s 2018 expenditures of $191,045. The Brigade reported that it could sustain its operations for the next five years. The line graph below shows the current financial trend. Financial Trends $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 2016 2017 2018 Revenues Expenditures Reserves Options to address potential future financial challenges: One potential future financial challenge is that, due to increased tourism, the Brigade reaches a point of needing additional resources to increase services to address a high call volume. Under this circumstance, the Brigade may want to investigate options to increase its revenues. One option is to work with the County of Monterey to negotiate PILT funding from Los Padres National Forest since the Brigade is an agency providing local services on a portion of these federal lands. Photo credit: Mid-Coast Volunteer Fire Brigade MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 113 LAFCO of Monterey County 114 5.15 County Service Area 74 (Monterey County Emergency Medical Services) Summary/Background Formed in 1989, County Service Area (CSA) 74 is a funding mechanism to support the provision of emergency medical services throughout all of Monterey County. CSA 74’s sphere of influence and boundary contain all parcels within Monterey County. Therefore, no changes to its sphere of influence and boundary are anticipated. CSA 74 provides funding for basic life support (EMT), advanced life support (paramedic), and ambulance services to approximately 433,000 people throughout its 3,771-square mile service area. Voters approved a benefit assessment on real property in 1988. Due to changes from passage of Proposition 218 in 1996, voters approved replacing this funding mechanism with a special tax in 2000, which is assessed at $12.00 per service unit18 on every parcel in the County. CSA 74 provides its special tax funds for the operation of the County Emergency Medical Services (EMS) Agency and related programs. The County EMS Agency plans, coordinates, and evaluates the various elements of the countywide paramedic system. The Monterey County EMS system includes over 100 participating agencies including ground and air ambulance providers, fire agencies, hospitals, law enforcement agencies, community colleges, American Red Cross chapters, and the American Heart Association. In FY 18-19, the EMS Agency received approximately $1.7 million from CSA 74 and approximately $218,000 in Maddy funds, a State program that allows the County to levy an assessment of $4.00 per $10.00 of fines for specified traffic violations. The EMS Agency’s primary responsibility is to contract for, and monitor, ambulance services. American Medical Response West (AMR) operates under a service agreement with the County and is the primary ambulance provider for Monterey County. AMR is contractually responsible to provide primary service to the entire County except within the boundaries of the Carmel Valley portion of the Monterey County Regional Fire Protection District and Fort Hunter Liggett. Each ambulance is staffed with at least one paramedic and one emergency medical technician. AMR’s operations are funded primarily through service fees paid by individuals served and their insurance companies. AMR receives reimbursement from the County of up to $100,000 per year for the expense of using peripheral providers to improve response times to five peripheral areas: Highway 1 to Mile Marker 13, Parkfield, South Shore Lake San Antonio, Highway 101 south of Alvarado Road, and Cachagua. AMR responded to 37,023 calls for service in 2019. The EMS Agency also distributes CSA 74 funds to first responders, while continuing to monitor and certify EMS training. Additional background information on CSA 74 and the County EMS Agency is provided in sections 2.10.1 and section 3 of this study. CSA 74 is a County-dependent special district directly governed by the Monterey County Board of Supervisors. Board meetings are open and accessible and are publicly noticed in accordance with the Brown Act. CSA 74 completes regular financial audits through the County’s Comprehensive Annual Financial Report. Board agendas, minutes, and meeting packets are posted on the County’s website. The County Emergency Medical Services Agency maintains a website that includes information on upcoming advisory committee meetings, documents and reports, the EMS system, organization and staff, administration and finance, ambulance billing, and the EMS strategic plan. 18 Monterey County Code Section 15.29.055 defines the amount of “service units” per type and use of parcels. A single family dwelling equals one service unit. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 115 District Formation and Duties Formation Date 1989 Legal Authority County Service Area Law, Government Code, section 25210 et seq., and Monterey County Code, chapter 15.29 – County Service Area: Ambulance Service Charges. Board of Directors The County Service Area is a County-dependent special district directly governed by the Monterey County Board of Supervisors. Agency Duties Emergency Medical Services Attributes District Area (estimated square miles) 3,771 Population (2018 estimated) 433,000 Assessed Valuation (FY 2018-19) $69,460,992,190 Total Budgeted Revenue (FY 2019-20) $1,737,000 Number of stations N/A Dispatch Contract Ambulance Provider ISO Public Protection Classification N/A Regular Financial Audits County’s Comprehensive Annual Financial Report Annual Revenue Per Capita, Entire District (estimated 18-19) $4 Average Portion of County 1% Property Tax Received 0¢/$1 Calls for service in 2019 37,023 Percentage of calls for Medical Emergencies 100% Challenges and Opportunities One of the challenges that CSA 74 faces is that its special taxes are not indexed to keep pace with inflation. As a result, the relative value of the $12 per service unit special tax in today’s dollars has diminished by more than a third in the last 32 years. Another challenge is that EMS outcome analysis is influencing insurance payments in a retrospective way. Insurance companies are starting to investigate the results of emergency room trips. In some instances, when an emergency room trip results in a non-emergency, some insurance companies are refusing to cover the expense or will only cover part of the expense. One opportunity is to increase the use of Emergency Medical Dispatch system (EMD) codes to correctly categorize emergency calls and send appropriate resources. LAFCO of Monterey County 116 Financial Summary CSA 74 Fund Balance Ending Total Fund Balance (June 2019) $3,299,253 Change in Total Fund Balance (from June 2018 to 1% June 2019) Total Fund Balance/Annual Revenue Total (2019) 190% County Approved Minimum Reserve $1,500,000 CSA 74 Adopted Budget 2018-2019 2019-2020 Amount % of Total Amount % of Total Taxes $1,654,000 96.2% $1,663,000 95.7% Use of Money & Property (Interest Income) $45,000 2.6% $52,000 3% Charges for Services $20,000 1.2% $22,000 1.3% Revenue Total $1,719,000 100% $1,737,000 100% Financial Trends: In FY 17-18, CSA 74’s expenditures exceeded revenues by approximately $178,000. According to the FY 19- 20 approved budget, expenditures are expected to outpace revenues by approximately $294,000. CSA 74’s reserve balances are sufficient to fund these relatively small revenue imbalances. The line graph below shows the current financial trend. Financial Trends $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2016-17 2017-18 2018-19 2019-20 Revenues Expenditures Reserves Options to address potential future financial challenges: As the relative value of CSA 74’s special tax collected decreases in the future, CSA 74 may reach a point in the future when expenditures consistently exceed revenues. If this happens, CSA 74 may need to explore options to increase revenues. One potential option might be to seek voter approval of a special tax or benefit assessment to increase revenues necessary to maintain services. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 117 [This page left blank intentionally.] LAFCO of Monterey County 118 SECTION 6: APPENDICES 6.1 Acknowledgements Information that LAFCO received from special district representatives and various Monterey County representatives was essential in developing this study. Special district staff and Board members met with LAFCO staff and LAFCO’s Fire Consultant. They provided copies of audits, financial statements, budgets, service contracts, maps, computer aided dispatch (CAD) data, and correspondence. Key Special District and Monterey County representatives who contributed to development of the draft document included: CAL FIRE Chief David Fulcher, CAL FIRE Assistant Chief Reno DiTullio, Jr, CAL FIRE Assistant Chief George Nunez, Cachagua Fire Chief Jesse Reimer, Gonzales Fire Chief Jason Muscio, Greenfield Fire Chief Jim Langborg, Monterey County Regional Fire Chief Michael Urquides, Monterey County Regional Deputy Chief David Sargenti, Monterey Fire Chief Gaudenz Panholzer, Monterey Peninsula Airport District General Manager Michael La Pier and Deputy Director of Strategy and Development Chris Morello, North County Fire Chief Jess Mendoza, North County Division Chief Joel Mendoza, Pebble Beach CSD General Manager Michael Niccum, Big Sur Fire Chief Matt Harris, Mid-Coast Fire Chief Cheryl Goetz and Assistant Chief Jake Goetz, Monterey County Director of Health Services Elsa Jimenez, Monterey County EMS Director/EMS Bureau Chief Teresa Rios, Monterey County Emergency Services Manager Gerry Malais, Monterey County Resource Management Agency Deputy Director John Dugan, Monterey County Director of Emergency Communications Lee Ann Magoski, and Assistant County Administrative Officer Nicholas Chiulos. Members of special district boards of directors contributed additional valuable insights during interviews. These special district board of directors included: President Bob Eaton and Treasurer Don Bonsper from Cachagua FPD, President Lynne Semeria from Carmel Highlands FPD, President Andrea Borchard from Cypress FPD, President Victor Lanini from Gonzales Rural FPD, President Roy Morris from Greenfield FPD, Director John Kesecker from Mission Soledad Rural FPD, Vice President Jeffrey Froke, Ph. D., and Director Richard Verbanec from Pebble Beach CSD, and President Frank Pinney from Big Sur VFB. LAFCO was also able to obtain valuable information on State and agency websites and through the public media. LAFCO’s earlier 2012 Municipal Service Review and Sphere of Influence Update provided additional background information about the special districts. Population estimates for special districts were calculated from 2010 U. S. Census and 2018 American Community Survey (ACS) data. Photo credit: Big Sur Volunteer Fire Brigade MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 119 6.2 Agency Comment Letters and Emails on the Administrative Draft Study Comment letters on the Administrative Draft Study, and a synopsis of comments received by email, are provided on the following pages. LAFCO of Monterey County 120 RE: Comments to Administrative Draft 2020 Municipal Service Review and Sphere of Influence Study: Districts Providing Fire Protection and Emergency Medical Services in Monterey County Dear Ms. McKenna: Every couple of decades or so, there is a discussion of creating a special district for Big Sur, California, and each time the discussion arises and is further studied, the incontrovertible conclusion is that creating a governmental agency in Big Sur, especially a fire district, is economically infeasible and simply does not make sense. The Monterey County Local Agency Formation Commission (“LAFCO”) in the above-referenced administrative draft report (“Draft Report”) again raises this issue and recommends the consideration of “funding a special study to determine the best approach to funding and governance of the Big Sur Mid-Coast areas to include exploring feasibility of forming a new FPD in Big Sur/Mid-Coast or using an existing FPD to serve the area.” We disagree with this recommendation and ask it to be removed in the final LAFCO report because it is clear that any such special study will conclude a fire district is economically infeasible and does not make sense for Big Sur. As the Draft Report points out, the Big Sur Volunteer Fire Brigade, (dba Big Sur Fire) formed in 1974, has been providing fire protection and emergency services to most of the Big Sur area with sufficient number of community volunteers and stable trend of revenues well above its expenditures. A similar conclusion is made for the smaller Mid-Coast Volunteer Fire Brigade which provides services in the northern Big Sur area of Palo Colorado. These two volunteer fire brigades are not alone and without any additional assistance during a wildfire. The lands covered by the two fire brigades are located within the State Responsibility Areas (“SRA”) pursuant to Public Resources Code section 4125. The California Department of Forestry and Fire Protection (“CAL FIRE”) provides fire protection in the SRA. Additionally, there are numerous reciprocal mutual aid agreements to provide additional emergency coverage for Big Sur. CAL FIRE’s assistance to the San Benito-Monterey Unit is far reaching. In CAL FIRE’s Informational Report for State Responsibility Area Fire Prevent Fee (Fiscal Year 2016-2017), the San Benito-Monterey Unit’s expenditures for fire prevention activities amounted to $935,164 in 2015 and $909,048 in 2016. Other expenditures utilizing the Fire Prevention Fee which was suspended in July 2017 and now funded through the State’s Cap-and-Trade program, are summarized below: PO Box 520, Big Sur, CA 93920 - (831) 667-2113 - NONPROFIT 501(C)(3) - www.bigsurfire.org 121 Activity 2015 2016 Cumulative Total Fire Prevention Activities $ 935,164 $ 909,048 $ 1,8744,212 Vegetation Management Program $ 67,608 $ 80,360 $ 147,968 Defensible Space Inspection Program $ 828,604 $ 504,838 $ 1,333,442 Land Use Planning $ 93,441 $ 106,539 $ 199,980 Fire Hazard and Risk Mapping $ 9,634 $ 13,074 $ 22,708 CAL FIRE Administration $ 231,788 $ 258,385 $ 490,173 Total $2,166,239 $1,872,244 $4,038,483 The above table is intended to show that sufficient public funds from taxes, including those paid by Big Sur residents, are flowing through Monterey County (including Big Sur) for fire-related activities. It is important to point out that about seventy two (72%) of the Big Sur Coast Planning Area, defined by Monterey County as over seventy miles in length and stretching from the Carmel area on the north, south to the San Luis Obispo County line near San Simeon, is within public ownership, with the U.S. Forest Service being the largest land owner in the planning area. The U.S. Forest Service employs approximately 10,000 wildland firefighters. Positions range from wildland firefighters, helitack crews, hotshot / handcrew, engine crew, smokejumpers as well as those engaged in fuel management. The Big Sur’s Soberanes Fire is a good example of an effective unified command of CAL FIRE and U.S. Forest Service with the two brigades providing local knowledge to assist in fire suppression activities. That is, Big Sur, as SRA, not only benefit from CAL-FIRE’s fire protection, but also from fire protection services provided by the U.S. Forest Service. With the two Fire Brigades, CAL FIRE and others through reciprocal mutual aid agreements, Big Sur is sufficiently covered notwithstanding the increase in tourism. The remaining twenty-eight percent (28%) of private lands in the Big Sur Coast Planning Area is insufficient, in numbers, to financially support a fire district. Many of the lands are zoned 40 to 320-acre minimum parcel size pursuant to restrictive policies in the Big Sur Coast Land Use Plan. Taxes imposed on these large parcels located on the small percentage of private lands in the planning area would be insufficient to support a fire district. As the Draft Report points out, the costs in operating a fire district are substantially higher than that for a volunteer fire brigade. The Draft Report states, “The transition from volunteer firefighter organizations to paid staff is a huge financial impact. A single fire engine staffed with the minimum industry safe standard of two career firefighters is about $1.5 million per year, which is only for personnel costs and does not include other operations costs and overhead.” The Draft Report further states, “CAL FIRE cited a cost of $3.11 million for a single three-person engine company on a 24-hour basis.” The owners of the private lands, comprising only 28% of the planning area, would be charged with an exorbitant amount of taxes for receiving less services, which simply does not make sense, particularly since it is not typically the property owners requiring the service. The majority of the calls to the brigade are for services to visitors of the area, and the largest recent fire, Soberanes Fire, was started by an illegal campfire by a visitor or visitors of the State Parks system. The Draft Report references the County General Plan as follows: “The County General Plan requires that a condition of development in the unincorporated area not currently in a fire PO Box 520, Big Sur, CA 93920 - (831) 667-2113 - NONPROFIT 501(C)(3) - www.bigsurfire.org 122 district is annexation into a fire protection district or restriction of the deed to identify the lack of local fire protection.” The County General Plan applies to inland areas only and does not apply to the Big Sur Coast Planning Area. That said, the General Plan also includes the following narrative: The California Department of Forestry and Fire Protection (CAL FIRE) is charged with wildland fire protection for much of Monterey County. CAL FIRE provides wildland fire protection to 1.3 million acres of State Responsibility Area (SRA) from seven fire stations and one conservation camp located in Monterey County. In addition to the CAL FIRE equipment located within Monterey County, there are two air tankers, an aerial command aircraft and a helicopter located in adjacent San Benito County. The state funded fire equipment located in Monterey County is sufficient to meet the stated CAL FIRE goal of controlling 95% of SRA wild fires in the first burning period. The County General Plan also includes the following policy to address fire prevention: S-5.6 Inter-jurisdictional coordination shall be enhanced by maintaining agreements with local, state, and federal agencies to provide coordinated emergency response. The Monterey County Operational Area Emergency Plan shall be maintained and enhanced in consultation with all applicable agencies. The Big Sur Coast Land Use Plan, which applies to the Big Sur Coast Planning Area, as updated by the Big Sur and South Coast Land Use Advisory Committees (although not yet adopted by Monterey County Board of Supervisors) includes language of support for the volunteer fire brigades by including, for example, the following paragraph: Big Sur is known for self-reliance for addressing natural hazards. Local planning efforts including, but not limited to, the CWPP, CHMP and disaster and evacuation planning, are intended to reduce the vulnerability to the natural hazards. Local organizations, including Big Sur Community Emergency Response Team, Big Sur Fire, Mid-Coast Fire Brigade and Big Sur Health Center, provide disaster preparedness and response to protect lives, property and the environment. The above paragraph expresses an important intangible benefit of volunteer fire brigades which cannot be measured in dollars. Big Sur is known for its self-reliance, and the Big Sur Volunteer Fire Brigade (Big Sur Fire) is at the core of the Big Sur community’s self-reliance stance. Big Sur Fire is composed of neighbors and friends connected to and an essential part of the Big Sur community. Big Sur Fire is not only financially supported by the community, but also spiritually and communally, and is not at the mercy of government and its ever-evolving budget and bureaucracy. Recruitment, retention and rising costs will always be a challenge, but the Big Sur Volunteer Fire Brigade has withstood that challenge for the past 50 years and will continue to withstand the challenge. The reality is the public, as a general rule, does not know or care who is paid and who is not. They are only concerned with rapid response and treatment by a PO Box 520, Big Sur, CA 93920 - (831) 667-2113 - NONPROFIT 501(C)(3) - www.bigsurfire.org 123 compassionate provider who can help them, ease their pain and provide reassurance. That is what the Big Sur Volunteer Fire Brigade has provided to the visitors and community members of Big Sur and will continue to do so. There is no reason to dismantle this part of the Big Sur fabric and replace it with a governmental entity that comes with significant tax consequences. For those reasons, the following statements in the Draft Report must be deleted as being inaccurate: Mid Coast expressed interest in forming a fire protection district. Big Sur was not opposed to exploring the idea of joining Mid-Coast in that effort. (p.10) The Brigade may be open to the possibility of reorganizing as a public fire district (a scenario that is described elsewhere in this study) and/or consolidating with Mid-Coast Fire Brigade in the future, if such changes come to viewed as mutually beneficial to both volunteer brigades. (p. 124) The recommendation to fund a special study which includes exploring feasibility of forming a new FPD in Big Sur/Mid-Coast or using an existing FPD to serve the area (p. 12) should also be deleted for the foregoing reasons. Big Sur Fire is committed to continue to work toward improvements in service level and management that support our mission and appreciate the opportunity to work with LAFCO to explore a wide variety of options to assure the continued viability of our model. Thank you for this opportunity to comment on the Draft Study. Big Sur Fire Board of Directors Frank Pinney – Chairperson, Big Sur Fire Kenneth Comello Douglas Drummond Matthew Glazer Corinne Handy Shana Kropp Barbara Sexton Joe Stutler MaryAnn Vasconcello PO Box 520, Big Sur, CA 93920 - (831) 667-2113 - NONPROFIT 501(C)(3) - www.bigsurfire.org 124 Nationally Accredited for Providing Quality Health June 8, 2020 Kate McKenna LAFCO Executive Officer 132 W. Gavilan St. #102 Salinas, CA 93902 Subject: 2020 Municipal Service Review and Sphere of Influence Study: Fire Protection Districts. Dear Ms. McKenna, The Monterey County EMS Agency has received and reviewed the draft 2020 Municipal Service Review and Sphere of Influence Study: Districts Providing Fire Protection and Emergency Medical Services in Monterey County. The EMS Agency appreciates the services provided by the Fire Protection Districts and organizations that perform fire protection and EMS in Monterey County. The EMS Agency works to ensure the provision of high-quality EMS through its statutory and regulatory responsibilities of EMS system planning, implementation, coordination, evaluation, and medical control. In fulfilling these responsibilities, the EMS Agency has recently released a draft RFP for ambulance services to obtain ambulance and prehospital medical services at a reasonable cost to the user. The draft RFP may be viewed on the EMS Agency website at www.mocoems.org. After EMS Agency review of this report, the EMS Agency provides the following comments: In the Executive Summary, Introduction, on page 5, the first paragraph after the two listed purposes of the study, there is a discussion and listing of the network of organizations providing emergency services. As the listing expands beyond the fire districts addressed in this report, it should also be pointed out that private ambulance providers are part of the organized system of response and patient care in Monterey County. In the Key Findings section on page 9; item 11 states that local fire districts are concerned that changes to the service model in the countywide ambulance contract not adversely affect the fire districts services or revenues. The recently released for public comment draft RFP for ambulance services is for ambulance services only within the County Exclusive Operating Area and does not address the fire districts within their jurisdictions. The RFP for ambulance services is the process used to obtain the most qualified provider of ambulance and prehospital medical services at the most reasonable cost to the patient and community. 125 June 8, 2020 Page 2 In the Options For Consideration section, on page 11, item 2.3, the EMS Agency is working to obtain an ambulance service provider that will meet the needs of the people of Monterey County with the highest quality service at a reasonable cost to the patient and the community through the Ambulance Services RFP process. The RFP for ambulance services seeks to continue mitigating the cost of ambulance services by not incurring cost of the service upon those not using the ambulance services and seeking to transfer much of the cost of ambulance services to third party payors such as insurance companies, Medicare, and Medi-Cal. On page 41, section 2.12.4.4 addresses required Firefighter Training and Mandates. The fourth bullet- point listed requirement for Advanced First Aid and CPR is not quite accurate. Advanced First Aid is a specific course and is not what is required under CCR, Div. 9, Chapter 1.5 which does specify the course, testing, and teaching requirements for Public Safety First Aid which includes first aid and CPR practices and training. This may be better stated: • First Aid and CPR (CCR, Div. 9, Chapter 1.5 First Aid and CPR Standards and Training for Public Safety Personnel) Page 53, Section 3.4, Outcome-Based EMS Response, provides a list of concepts that should also include Case Management and alternate care delivery to frequent users of EMS services with non-emergent complaints. Sections 5.3, 5.4, and 5.11 related to Highlands FPD, Cypress FPD, and Pebble Beach CSD all assert concerns with the Monterey County EMS Agency RFP for ambulance services. This concern is related to the District’s ability to keep their paramedic services. The RFP for ambulance services does not address the provision of paramedic services by any fire district or department except as a matter of discussion of the current EMS system. On page 99, Section 5.9 provides a discussion of services provided by Monterey Peninsula Airport District which includes paramedic services. As of this date, Monterey Fire Department does not provide paramedic staffing for the Airport District. Thank you for accepting our comments on this report. Please feel free to contact us should you have any questions regarding our comments or for EMS related questions. Sincerely, Teresa Rios, Bureau Chief Monterey County EMS Agency (831)783-7082 riost@co.monterey.ca.us 126 Cachagua Fire Protection District Don Bonsper, June 8, 2020 I have attached some minor comments from Cachagua FPD on the draft report. We are always concerned about prompt ambulance service so there are a couple of suggestions concerning that topic. And there is an update to the financial info. Other than that, the report looks good. It is definitely a major undertaking. Comments on LAFCO Administrative Draft Report Cachagua Fire Protection District June 8, 2020 Page Section Comment 9 11 It is critical that CFPD receive service from the closest ambulance. AMR will never be the closest. If AMR is responding from the mouth of Carmel Valley it will have to pass two staffed ambulances, Mid Valley and the Village, en route to Cachagua. 9 15 Just for info, there is no plan to increase the CFPD SOI. Outcome based must focus on response times and what capabilities arrive at the 11 2.3 scene. It is not clear what impact this might have on CFPD. Any form of reimbursement 11 2.5 for services is welcomed. There is no proposed amendment to SOI of Cachagua. This is mentioned later in 21 1.1.7 the report. Delete in this section. Check medical map. Monterey Regional coverage is wildland fire only. It does 27 not show ambulance service. 29 Map appears to be wildland fire only. 38 2.12 This level of expense is a non-starter for CFPD. This could be an important source of revenue for CFPD. We support efforts to 49 2.16.10 make it happen. It is critical that CFPD receive service from Carmel Valley. This will always be the 52 3.3.2 closest if available. 65 5.2 Delete the second sentence in the first paragraph. 65 Under Table of Attributes: Change number of stations in table to 2. 66 Under Challenges and Opportunities: Delete sometimes from second sentence of second paragraph. Delete all after emergencies in third sentence. 67 5.2 Under Financial Trends please insert the following paragraph: Cachagua receives the smallest amount of revenue and has the lowest per capita expenditures of all the fire districts. This should be classified as the winner of "Bang for the Buck" award if one existed. Still, based on the District's audits and budgets, the District is showing a recent 3- year trend (FYs 17-18, 18-19,and19-20) of its expenditures staying within its revenues. Since the District is staffed by all volunteers, the District's personnel expenses are significantly lower than a fire protection agency staffed by full-time employees. As a result, the District's reserve fund, which currently holds a balance in excess of $400,000 and is three and a half times greater than the District's annual expenditures of approximately $110,000, is able to offset any unexpected one-time expenditures. The District reported it could sustain its operation for the next five years. The District is working hard to function within its annual budget. It has implemented a number of cost savings measures including an improved investment of the reserve fund. The District is able to continue to function at its current level of service with its on-board equipment and facilities. But in order to upgrade its equipment and/or establish a new fire station additional resources will be required both for acquisition and construction and then the follow-on operations and maintenance. Adjust revenues and expenditures to show the two lines close together with 68 Graph revenues on top. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 127 Monterey County Regional Fire Protection District Michael Urquides, June 2, 2020 In the draft MSR, it appears the call volume is incorrect for fire districts. Perhaps they are only showing medical calls on the totals. For example, on page 93, it shows 2,551 for MCRFD but our total was 3,582. North County Fire District was 1,000 calls off as well. Perhaps you received feedback from others. Monterey County Emergency Communications Department (ECD) just completed their annual report, which showed all the calls for each jurisdiction in 2019. Obtain a copy from ECD. It will provide accurate call information for the Fire and EMS Study. Monterey Peninsula Airport District Chris Morello, May 18, 2020 Page 14 - Fund Balance for MPAD 2018-19 for Cash and Cash Equivalents should be: $5,737,701 Page 21 – correction needed - the MPAD moved to a By-District Election Process beginning in 2020 elections Page 36 – section 2.7 we suggest adding two clarifications as provided in the comments Page 99 – we suggest adding a sentence after the year the District was formed as provided in our comment Page 99 – correction needed same as page 21 comment Page 100 – the Master Plan is a 20-year planning document. The Safety Enhancement Project is one component of the Master Plan. We have provided suggested language change provided - note 4 comments on this page Page 101 – Financial Trends graph – that information does not appear to be correct – please provide the source data so that we can identify where this is being pulled from Page 102 – one comment we suggest adding one additional word. North County Fire Protection District Jesús Mendoza, May 22, 2020 Our administrative staff has reviewed the draft report regarding North County Fire Protection District. I went ahead and highlighted some items on the PDF that I attached along with some comments/ suggestions. The report is accurate for the most part except for what I highlighted on the attached report. I provided notes on this email as a reference also. • NCFD population records indicate 42,000 population served vs 38,000 • County revenue is at 9 cents per dollar vs 11 cents per dollar • The previous failed tax ballot was a special tax measure requiring two thirds majority vote vs Benefit assessment Pebble Beach Community Services District Mike Niccum, June 9, 2020 Page 8, Recommended action 2. Should it be 2020 Municipal Service Review? Page 11, 2.3, PBCSD will work collaboratively with the EMS Agency to review options for the Ambulance RFP that might make more financial sense for emergency responders in hard to serve areas. Page 12, 4.2, This is an issue I have been working on for over 10 years. Some progress was made about 8 or 9 years ago, but the CAD to CAD solution will improve the response time to every incident in Pebble Beach, Carmel Highlands, Cypress, Aromas and South County fire districts as well as any automatic responses to neighboring jurisdictions. Page 14, Table ES-2, This table contains the portion of the total District revenue allocated to Fire Protection services but the fund balance references the entire District fund balance including garbage, wastewater LAFCO of Monterey County 128 and recycled water enterprise funds. The portion of the general fund balance allocated to general government services is $7,326,548 which also includes supplemental law enforcement and undergrounding overhead utilities services. Page 112, last paragraph, The PBCSD Fire Defense Plan (FDP) was originally adopted in June 1988. The FDP is updated every two years and includes the current two-year work plan. One final overall comment relates to the impact of tourism on local fire protection districts. In Pebble Beach during the tourist peak season, the population served increases significantly. It also impacts smaller districts like North County Fire Protection District which have to respond to incidents related to tourists traveling through district on the way to Monterey Peninsula. This issue was mentioned page 10, key finding 17 about the impact of tourism on the Big Sur Community. Monterey County Emergency Communications Department Lee Ann Magoski, June 2, 2020 Page 10 – Item 20 “Monterey County Emergency Communications Department” (add Department to this statement) Page 11 – 4.3 Added In coordination with the Monterey County Information Technology Department who oversees the NGEN radio system. 4.4 Coordinate these with Fire Communications and Ambulance (AMR) Page 37 2.10.1 – The last sentence, I believe it should read the Ambulance Communications Center. Not communications centers. Page 37 – 2.10.2 Carmel is a primary PSAP as well In reference to the CALFIRE, made a change to make it one word. Also updated to say that CALFIRE is moving forward with a scope of work with their CAD vendor. ECD remains standing by, our scope has been approved and waiting for direction with our vendor. Page 38 2.11 Alliances - Fire Comm users Committee should Dedicated Fire Dispatch Page 47/48 2.16.4 Prop 172 Subject to annual approval by the Monterey County Board of Supervisors during the annual budget development process, Monterey County allocates 9.13% of prior fiscal year audited Proposition 172 sales tax proceeds to special districts that provide fire protection and fire companies. The fire agencies have a formula for distributing that revenue amongst the agencies. MSR & Sphere Study –Fire Protection and EMS in Unincorporated Monterey County 129