Calfire was the only fire and emergency medical services provider that responded to the city’s request for proposals that could reduce the existing costs for those services.
And while city staff are encouraged by the proposal by the state fire agency, there are several “open issues” that have to be discussed by the city, Calfire and Santa Clara County before a contract can be signed, according to Morgan Hill Community Services Director Steve Rymer.
The city published the request for proposals for a new contract in Dec. 2011. The goal is to reduce the cost of the current contract, which is about $5.2 million this year, with the county’s Central Fire District.
The current five-year contract expires in 2013, and council members want to sign a new contract by July 2012 – the start of the next budget year. The city’s goal is to reduce the annual cost for fire and emergency medical services by about $500,000, and to have a single service provider that is governed by only one entity.
Calfire’s initial proposal for fire and EMS services to Morgan Hill estimates it could shave the city’s current costs by more than $770,000 per year, with the first year of the contract costing about $4.7 million.
However, that does not take into account the city’s initial costs for two fire stations that are currently owned by the CFD, Rymer said. With a potential new provider, the city would likely have to purchase the stations and firefighting equipment.
The city hired an independent consultant who appraised the properties – one on Old Monterey Road and one at Dunne Avenue and Hill Road. Rymer declined to release the results of the recent appraisal because it could affect the city’s negotiations with the county which are in process.
Despite some shortcomings that will have to be worked out in the coming weeks, Calfire’s proposal maintains the current service levels of three firefighters per engine – including a paramedic, and will meet the city’s standard of 8-minute response or faster to 95 percent of calls, according to consultant John Goss of Ralph Anderson & Associates.
Furthermore, since Calfire already has a station in the city limits, and has its own fleet of engines and apparatus, that could facilitate a “boundary drop” that would ease the response to calls.
“Calfire’s response was very responsive, and very thorough,” Goss said. “It reflected a lot of detailed preparation on their part.”
But some aspects of Calfire’s proposal have to be resolved as they might not meet the city’s service needs.
One of these is who will provide hazardous materials responses, as Calfire does not provide such services, according to city staff. Another is the cost of providing mechanic’s services for the apparatus fleet.
The city also wants to verify that Calfire’s assumptions that sharing certain staff and resources with the county, and using County Communications for EMS calls are OK with the county supervisors, and will not result in further costs to the city.
Relying on the county for aspects of the service might undermine the city’s goal of keeping all fire and EMS-related services governed by a single entity, according to councilmember Larry Carr. The people of Morgan Hill only get to elect one of the five county supervisors, whereas they elect all five council members – a key consideration when implementing services that do not benefit anyone outside Morgan Hill.
Other service providers, including the city of San Jose and a private contractor, expressed initial interest in the city’s RFP, but Calfire was the only provider that followed through with a proposal, Goss said.
City staff and the consultant plan to return to the council with an update on the continuing discussions with Calfire May 2, according to Rymer.
