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Home My WebLink About4622 Ordinance - Amending PMC 3.35.010 Ambulance UtilitySlide 1FCS GROUP Presentation to City Council October 11, 2022 Martin Chaw, Project Manager Skye Jiang, Sr. Analyst Ambulance Utility Rate Study 2022 Slide 2FCS GROUP About FCS Group ▪Utility rate and fee consulting ▪Utility management consulting ▪Financial planning and analysis ▪Economic services Slide 3FCS GROUP Scope of Work Update previous ambulance utility rate study (2019) -Current level of service + Open new Station #85 (2023) -Depending upon growth, addition of new Station #87 -Depending upon growth, addition of new Station #86 Determine a proposed rate for non-emergency lift calls for service Slide 4FCS GROUP Ambulance Utility ●RCW 35.21.766 authorizes cities to form an ambulance utility »Utility rates cannot exceed total costs »Rate revenue funds cost of operating utility (includes apparatus, but cannot include capital spending or major facility renovation) ●Cost of Service study required »Demand –cost to respond to incidents »Availability –cost to be on standby and available to respond to incidents ●City of Pasco’s ambulance utility »Created in 2007 ●Responded to over 7,300 incidents in 2021 Slide 5FCS GROUP Fire Services in Pasco St. #81 St. #82St. #83 St. #84 St. #85 Slide 6FCS GROUP Trends in Incidents and Response Times 2019 2020 2021 Number of Incidents 5,842 6,194 7,342 Average Response time (minutes)6.07 6.35 6.03 Unit Notified to Enroute 1.20 1.23 1.04 Unit Enroute to Arrived at Scene 4.87 5.12 4.99 City Residential Population 75,432 76,379 78,700 Number of Incidents per 1,000 population 77.5 81.1 93.3 % Increase in Incidents per 1,000 population 4.6%15.0% Slide 7FCS GROUP Funding Fire Services Fire Services Fire Impact Fees Ambulance Utility Rates General Taxes ▪Fees assessed on new development to fund construction of fire stations and apparatus ▪Collected over time as new development occurs ▪Future study to update the fire impact fees ▪Monthly rates assessed to residents and businesses for operation of ambulance services ▪By City policy, ambulance rates to recover 83%of Ambulance Utility operating costs ▪Continue to pay 17%of Ambulance Utility operating costs ▪Includes $420,000 annual transfer from GF to Ambulance Utility Fund Slide 8FCS GROUP New Fire Stations 2023 2024 2025 2026 Station 85 (Fire engine + equipment + Ambulance, 15FTEs) Station 87 (Teleboom engine + equipment, 12FTEs) Station 86 (Fire engine + equipment + Ambulance, 15FTEs) *Photo: Teleboom fire truck Forecasted station on-line (depending upon growth) Slide 9FCS GROUP Analysis –Key Assumptions Economic & Financial Factors 2022-2030 Annual Rate General Inflation 6.0% Labor Cost Inflation 6.0% Benefit Cost Inflation 4.0% Revenue Growth 3.2-5.2%* Customer Growth 3.2-5.2%* *Revenue and customer growth expected to increase in 2023 and 2024 due to additional employment from new to City industrial and commercial growth. Slide 10FCS GROUP Fire Department Funding $13.1 M $13.9 M $14.6 M $15.5 M $16.3 M $7.6 M $8.0 M $8.4 M $8.9 M $9.4 M$20.7 M $21.9 M $23.1 M $24.4 M $25.8 M $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2023 2024 2025 2026 2027MillionsCity of Pasco Fire Department Sources of Funding (Current Level of Service + Station 85) Ambulance Utility General Fund Subsidy Total Slide 11FCS GROUP Ambulance Utility Sources of Funding $6.9 M $7.6 M $8.2 M $8.9 M $9.6 M $1.4 M $1.5 M $1.7 M $1.8 M $2.0 M $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2023 2024 2025 2026 2027MillionsAmbulance Utility Sources of Funding (Current Services incl. Station 85) Ambulance Utility General Fund Subsidy General Fund subsidy represents 17% of ambulance utility rate revenue requirements. Rate revenue requirement reflect total co st of ambulance utility, less non-rate revenues (e.g., transport payments, WA State GEMT revenues, etc.). Slide 12FCS GROUP Ambulance Utility Rate Revenue Requirement ($M)* with Station 85 Only $6.9 M $7.6 M $8.2 M $8.9 M $9.6 M $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2023 2024 2025 2026 2027MillionsAmbulance Utility Revenue Requirement and Monthly Utility Rates (Current Services incl. St.85) Ambulance Utility *Amounts shown reflect net operating costs, inclusive of new Station 85 (scheduled to open in 2023), less non-rate revenues include ambulance transport fees, Washington State Ground Emergency Management Transportation payments. $16.66** per month $17.42** per month $18.61** per month $20.31 per month $21.22 per month Current Monthly Rate: $16.20 per ERU(2022) **SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period. Slide 13FCS GROUP Ambulance Rates Phase-In Strategy $16.66 $17.42 $18.61 $20.31 $21.22 $1.37 $1.22 $0.80 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 2023 2024 2025 2026 2027Monthly RateMonthly Ambulance Utility Rates (Current Services + Station 85) Monthly Rate Phase-In Strategy Current Rate **SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period. $18.03 without grant $18.64 without grant $19.41 without grant $16.20 No SAFER grant No SAFER grant Slide 14FCS GROUP Ambulance Utility Funding –New Stations 87 & 86 $6.9 $7.6 $8.2 $8.9 $9.6 $1.1 $1.1 $1.2 $1.2$1.5 $1.5 $1.6 $1.4 $1.5 $1.7 $1.8 $2.0 $8.3 M $10.4 M $13.0 M $13.9 M $14.9 M $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 2023 2024 2025 2026 2027MillionsAmbulance Utility Sources of Funding (Current Level of Service + St. 85, 87, 86) AU (Current+85)AU (87)AU (86)GF (Current+85)GF (87)GF (86)Total Complementary General Fund operational cost for added Stations is not reflected. Only Ambulance Fund Costs are in graph depiction. Slide 15FCS GROUP Ambulance Utility Rate Revenue Requirement with New Stations 85, 86 and 87 ($M) $7.2 M $7.8 M $8.4 M $9.1 M $9.9 M $1.1 M $1.1 M $1.2 M $1.2 M$1.5 M $1.5 M $1.6 M $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2023 2024 2025 2026 2027AU Revenue Requirement ($M)Ambulance Utility Rate Revenue Requirement (Current Services incl. St. 85, 87, 86) Current incl St.85 Station 87 Station 86 Timing of rate impacts for Station 86 and 87 forecast only. $16.66** per month $20.17** per month $24.73** per month $26.37 per month $27.39 per month **SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period. Slide 16FCS GROUP Ambulance Rates Phase-In Strategy $16.66 $17.42 $18.61 $20.31 $21.22 $2.75 $2.62 $2.67 $2.72 $3.50 $3.39 $3.45 $1.37 $1.49 $0.94 $16.66 $20.17 $24.73 $26.37 $27.39 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 2023 2024 2025 2026 2027Monthly RateMonthly Ambulance Utility Rate (Current Services incl. St. 85, 87, 86) Monthly Rate (Current + St85)St 87 St 86 Phase-In Strategy Total Current Rate **SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period. $16.20 Slide 17FCS GROUP Comparison with Jurisdictions Richland Kennewick Pasco Current (2022) Monthly Ambulance Utility Rate $10.00 $14.12 $16.20 Levy Collection 2022 $19.2M $14.4M $11.8M Residential Population 59,609 87,649 77,326 # of Fire Stations 5 5 4 # of People Covered per Station 11,920 17,530 19,330 Service Area (in square miles)42.7 (excludes Hanford)29.2 37.5 # of Square Miles Covered per Station 8.6 5.8 9.4 Ambulance Calls for Service (2020)5,299 7,357 4,626 Ambulance Calls per Station 1,060 1,471 1,157 Density (pop per square mile)1,544 3,057 2,271 Slide 18FCS GROUP Non-Emergency Lift 2019 2020 2021 Number of non-emergency lift incidents 204 283 252 Number of Incidents per 1,000 population 2.7 3.7 3.2 % Increase in Incidents per 1,000 population 37%-14% ●Currently no fee assessed for non-emergency lifts ●To offset any costs, Staff recommends establishment of a penalty fee to licensed care facilities. Slide 19FCS GROUP Conclusions & Next Steps ●Next Steps »Increase rates to fully fund Ambulance Utility operations, including new stations 85 (eff Jan 2023) »Discussion related to growth and resulting community needs to guide timing of construction of new stations 86 and 87 ●Questions? Slide 20FCS GROUP Thank you!