HomeMy WebLinkAbout09/29/2010 AGENDA FILE
CITY COUNCIL 345 6 Street, Suite 600, Bremerton, WA 98337 ❑ Phone (360) 473 -5280
DATE NOTICE ISSUED: SEPTEMBER 24, 2010
You are hereby notified that the BREMERTON CITY COUNCIL will hold a STUDY
SESSION on WEDNESDAY. SEPTEMBER 29, 2010 beginning at 5:00 PM'in the
First Floor Meeting Chambers of the Norm Dicks Government Center located at
345 a Street in Bremerton, WA.
1. Request to apply for an Economic Development District (EDD) Grant — Vincent
Akhimie; Public Works & Utilities Director; and Thomas Knuckey, Utilities
Managing Engineer
2. Joint discussion between the Bremerton Fire Department and South
Kitsap Fire & Rescue (SKFR) — Bremerton Fire Chief Al Duke; SKFR Chief
Wayne Senter; and Bremerton Assistant City Attorney Ken Bagwell
3. General Council Business (As necessary ...)
This meeting is open to the public but there will be no opportunities for comment...
® Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations
should contact the City Clerk's Office at (360) 473 -5323 by noon on the Monday preceding the Council meeting.
j erfem el 0 9, o Z o / o
!SKFR Fire C ommissio ners
South Kitsap Fire and Rescue is currently governed by a Board of five elected Fire Commissioners. They
manage and oversee the general operation of the South Kitsap Fire and Rescue, as well as the financial
oversight. The Commissioners are elected for six year, staggered terms, and provide a direct link to our
citizens.
Gerald (Jerry) Preuss - Position 1
Term of Office - January 2010 - December 2015
d � a Jerry is currently Chair of our Fire Commissioners. Jerry was appointed
by the Board as Fire Commissioner starting March 23, 2006. He y replaced Position #1 Commissioner Roger Wiley who resigned as
commissioner of South Kitsap Fire and Rescue as of January 31, 2006.
t " t Jerry has strong leadership skills and has been involved in the
} community through the Manchester Port District, South Kitsap Helpline,
First Lutheran Church, and has served on South Kitsap Fire and
Rescue's Community Budget Review Committee Board.
--- D.W. "Dusty" Wiley - Position 2
j` Term of Office - January 2008 - December 2013
.
Dusty grew up in a firefighting family as a son of a South Kitsap Fire and
? Rescue firefighter and commissioner. As a law enforcement officer,
Dusty worked hand in hand with firefighters throughout his career. In
1993, Dusty decided to run for the commissioners post because he felt
the board needed new blood and a fresh outlook. He sees adequately
staffing for future growth and maintaining the District's equipment
arsenal on the cutting edge of technology as the biggest future
' challenges.
Darla Hartley - Position 3
Term of Office - January 2006 - December 2011
Darla is currently the Vice Chair of our Fire Commissioners. Darla was
elected to office in 1988. Darla has always been active in her community
and was prompted by an outgoing predecessor to run for office. Darla is
proud of the open and trust - building environment at South Kitsap Fire
and Rescue.
�.. Dave Gelsleichter - Position 4
Term of Office - January 2004 - December 2015
Dave began his volunteer career in the fire service in 1971, serving in
positions ranging from firefighter to Chief at Sunnyslope, District 6. In
1989 Gelsleichter ran for fire commissioner and was elected, eventually
seeing his vision to merge with South Kitsap Fire and Rescue become a
reality.
Paul Goinik - Position 5
F Term of Office - January 2008 - December 2013
Paul was appointed by the Board as Fire Commissioner starting March
a 10, 2005. Paul was elected to Fire Commissioner in the November 2005
r election. He is a Captain with Bremerton Fire Department and a long
time resident of South Kitsap.
Bremerton Fire D
And
South Kitsa p Fire Fescue
Consolidation Fa
Financial Report
Au ust 2010
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BFD & SKFR Consolidation Fact Finding 1
Introduction
In February of 2010 the elected officials from Bremerton and SKFR asked that the City of Bremerton
and SUR administration initiate a 6 month analysis to determine the feasibility of re- establishing a
regional fire authority planning committee. The time period was to be used to fully answer any
outstanding questions regarding a regional fire authority. The elected officials determined that there was
a need to definitively answer some outstanding issues. Those issues included:
1. Does a consolidation make financial sense?
2. What would the new organization look like from a personnel perspective?
3. How would the new organization operate?
4. Would the citizens realize better service?
Accordingly, City of Bremerton administrative staff and officials and staff from South Kitsap Fire and
Rescue began meeting to address the outstanding questions relating to a potential consolidation of the
two agencies through the regional fire authority process. Two committees were formed to help address
the outstanding questions. A main committee, the BFD /SKFR Fact Finding Committee, consisting of
stakeholders representing both agencies was tasked with oversight of the process. Two subcommittees
were also formed to address specific issues. These committees addressed finances and the collective
bargaining agreements, respectively.
The work completed previously for the West Sound Fire and Rescue Regional Fire Authority was used
as a starting platform for the committees. The committees operated pursuant to two strategic goals: any
potential consolidation must produce a collective service level improvement without increasing net
costs, and any consolidation would not come at the expense of one agency over the other.
The BFD /SKFR Fact Finding Committee consisted of the following individuals:
Al Duke, BFD Fire Chief
Wayne Senter, SUR Fire Chief
Rob Ashmore, Local 437 President
Tim Salters, Local 2876 President
Doug Richards, Local 3817 President
Ken Bagwell, City of Bremerton Attorney
Brian Viergutz, Local 437 Vice President
George Roller, Local 2876 Vice President
Ryan Auston, Local 2876 PAC
Matt Million, Local 2876 Secretary
Brian Marceau, Local 437 E -Board Member
Alex Magallon, Local 437 Member
Scott Hartley, Volunteer Lead Battalion Chief
Darlene Slagle, SUR Accountant
Laura Linder, SUR Executive Assistant
Dawn Salters, SUR Clerical Support
BFD & SUR Consolidation Fact Finding 2
Table of Contents
Page
Cover............................................................................... ............................... 1
Introduction....................................................................... ............................... 2
Tableof Contents ................................................................. ............................... 4
OrganizationalIssues ................................................................ ............................... 5
FinancialIssues ...................................................................... ............................... 6
Collective Bargaining Agreements ............................................ ............................... 7
Healthcare Benefits ............................................................. ............................... .
8
Overtime.......................................................................... ............................... 9
AmbulanceBilling ............................................................... ............................... 10
VehicleMaintenance ............................................................. ............................... 11
Information Technology ......................................................... ............................... 12
Facilities /Grounds / Equipment .................................................. ............................... 13
Clerical /Administrative Support ............................................... ............................... 14
Executive Summary and Recommendation ................................... ............................... 15
Recommendation................................................................. ............................... 16
Appendix A — Future Organizational Chart .................................. ............................... 17
Appendix B — Transitional Organizational Chart ........................... ............................... 18
Appendix C — Healthcare Matrix ............................................... ...............................
19
Appendix D — HRA/FSA vs. 100% Plan ...................................... ...............................
24
AppendixE — Overtime Study ................................................. ............................... 25
Appendix F — Vehicle Maintenance Report .................................. ............................... 26
Appendix G — Information Technology Report .............................. ............................... 28
i
BFD & SUR Consolidation Fact Finding 4
!
i
Organization /Operations
As discussed in the Introduction to this report, the Fact Finding Committee used the West Sound Fire
and Rescue (WSFR) work as a basis to begin the review of how a potential organization resulting from
the consolidation of the Bremerton Fire Department and South Kitsap Fire and Rescue might look in the
future. The prior work also provided a starting point to help determine how the transition from two
separate organizations could meld initially.
It appears that there are very few organizational barriers to melding all services into one department
other than managing change in the workplace. The overall strategic goal in this area is to provide
equitable or improved service levels as one department as measured by the service levels both
organizations provided as separate departments.
The organizational chart in Appendix A represents the possible future organizational chart of the new
consolidated organization. The org chart presented in Appendix A is also representative of how the new
department would operate, at least on a macro level.'
However, it is important to remember that the determination of all eventual operation issues would be
resolved in any work plan proposed by a potential regional fire authority planning committee.
Accordingly, the Fact Finding Committee found that it was difficult to definitively answer how a new
consolidated organization would look from a personnel perspective as well as how it would operate.
Appendix A is based on the best information available to the Fact Finding Committee as well as input
from Chief Duke and Chief Senter.
1 This report will also provide some details about other operational issues in the Financial section of this report.
BFD & SUR Consolidation Fact Finding 5
FINANCIAL REPORT
It is apparent that the most significant question that needs to be addressed is whether a future
consolidation of South Kitsap Fire and Rescue and the City of Bremerton Fire Department is financially
feasible. Any consolidation must make financial sense for the two organizations as well as the citizens
they represent and protect. Accordingly, the Fact Finding Committee, through the Finance Sub -
Committee attempted to address the question of finances. Again, it is difficult to provide absolute
answers. There are many unknown factors relative to finances. While projections can be made as to
future Assessed Valuations of property and future property tax rates, there is no way to guarantee what
an organization's future revenues might look like. However, there are some known factors that can be
addressed as a result of a potential consolidation. This report addresses some of the quantifiable
efficiencies that would result as a consequence of consolidation. The projections are also provided.
A. Organizational Impacts
It is assumed that retirements and attrition will create milestones for leadership to move closer and
closer to a more efficient organizational structure that maintains a lean support and administration, and
maximizes those efficiencies by shifting resources to operations. The greatest need of both organizations
is to increase the number of operational response personnel to ensure a credible initial unit, and effective
response force, responds with a total response time reflected as baseline levels with the Center for Public
Safety Excellence (CPSE), state law, and best management practices the National Fire Protection
Association (NFPA).
Currently BFD has five chief officers actively filling a position and one clerical support position. SKFR
currently has seven chief officers and six support clerical positions. BFD has fifty -three additional
personnel assigned to operations and SKFR has eighty -four. Additionally, SKFR has three mechanics,
two and one -half personnel in facility /grounds /equipment, and one in Information Technology.
Currently, both BFD and SKFR have two each assigned personnel in the Fire Marshal's Office.
The organizational chart in Appendix B represents the transitional organizational chart as the two
agencies meld into one. The eventual attrition of two to five chief officers represents a potential savings
of $275,000 to $515,000 per year. These savings would allow shifting of resources to operations of three
to five additional Firefighters.
Note — The current BFD LEOFF retiree program was not included as part of the new consolidated
agencies responsibility.
Potential Cost Savings: $515,000
BFD & SUR Consolidation Fact Finding
B. Collective Bargaining Agreements
The two major collective bargaining agreements are the Firefighter CBA from both agencies. Both
CBA's are three year contracts that expire at the end of 2011. The general philosophy was that each
agency will negotiate a wage package for their respective bargaining groups and that we would create a
matrix in merged CBA that paid each member from both agencies that amount established through the
legacy organizations. It was further discussed that the work rules could be easily merged to minimize so
that the new consolidated organization operated as a unit rather than two separate agencies under one
umbrella.
The total cost of compensation of both major CBA's is very similar, although the method of payment
and benefits are different. As an example one CBA may favor educational pay while the other may favor
longevity.
There are two options available to complete this task. If labor does support the feasibility of
consolidation, a one year contract could be reached for the transition and then once voters approve the
consolidation, labor and management would enter negotiations immediately after forming. The other
option would be to attempt to accomplish the same melding outside of formal negotiations. The latter
option was attempted through the failed WSFR discussions with three agencies. The former option
allows a timely manner to settle any differences through mediation and binding arbitration. The finance
committee recommends the former option.
Additionally, there is a support services bargaining group under the SKFR Firefighters Local, a Chief
Officers Local in SKFR. Together both agencies have several contract or administrative employees.
These do not represent any serious barriers in melding together but do require some attention to detail to
ensure the transition is smooth.
Potential Cost Savings: $0
BFD & SUR Consolidation Fact Finding 7
C. Healthcare Benefits
Both BFD and SKFR members have generous healthcare benefits for their employees and their
dependents. Both agencies have different programs for providing those benefits through Kitsap
Physician Services. Compared to what SUR now offers their employees, BFD employees generally
have a PPOA (100 %) plan, while their dependents line up closer with the PPO2 (80 -20 %) plan
(Appendix C). SKFR employees, by an overwhelming majority (99 %), use the PPO2 plan. This plan is
less cost in premium dollars compared to the PPOA plan. The PPO2 plan requires more contributions
that the PPOA plan and to off -set that, SKFR created a Healthcare Reimbursement Account/Flexible
Spending Account only for members who use the PPO1 or PPO2 plans. The contribution is less than
what the premium differences between the plans are and results in better management of plan use
(Appendix D). The employees benefit directly from this system because the HRA funds are available
post retirement and are available for employees and dependents.
Comparatively, the plan costs differ by approximately $18,000 annually. The BFD plan is less expensive
but does not provide the long term goal of maintaining benefits levels and controlling premium costs.
The SKFR plan is an improvement for BFD employees and dependents immediately and does not
require SKFR members to make a concession for a lesser plan that may well cost the employer more
over time. For these reasons, the finance committee recommends that the SKFR healthcare plan be
offered as the healthcare plan for the new consolidated department. Obviously, this benefit is considered
a part of negotiations and would be part of the CBA process mentioned earlier in this report.
Potential Cost Savings: ($18,000)
BFD & SKFR Consolidation Fact Finding 8
A Overtime
The Finance Committee used the information presented and accepted by the West Sound Fire and
Rescue Work Plan Planning Committee process. In that report a study of staffing was made for all three
agencies involved in the WSFR discussions. The study revealed predictable times when one or more of
the agencies had staffing above their minimum staffing levels at the same time one of the other agencies
were below their minimum staffing levels. The result was a savings in minimum staffing overtime
through consolidation. (Appendix E)
For this consolidation study, we removed CUR from the study and recalculated what savings may be
made annually through the same method as described above. We found that approximately $72,000
could be saved annually through consolidation without any significant service reductions in either
agency.
There were other areas of overtime savings that we did not calculate but are logically realized through
consolidation. As an example, external meetings where we rely on operational staff to attend would be
reduced because currently each agency has one member representing them which could be reduced to
one. Another example of this savings would be through stand -by expenses. If each agency now has one
fire investigator on call this could be considered to be reduced to one, resulting in efficiency and
savings.
Potential Cost Savings: $72,000
BFD & SKFR Consolidation Fact Finding 9
E. Ambulance Billing
After a careful review of ambulance billing we found that each agency accomplishes the task a little
differently. SKFR has enough volume of ambulance billing that a full time employee, who also assists
with general clerical work, performs this work. The agency has compared payment percentage compared
to contracting services and has found that the efficiency exists in doing this work in- house. BFD does
not have the volume of billing calls to justify a full time employee in -house and contracts this service
out for an annual cost of approximately $37,000. It should be noted that this cost is in addition to some
preparation work that is done in -house prior to sending the billing information to the outside contractor.
Again the Finance Committee used the information created by the WSFR effort on this same issue. We
found that the addition of the BFD ambulance billing workload to the existing SKFR ambulance billing
workload was feasible without any additional cost after the information was loaded onto the billing
software. This initial set -up can be done within the normal work week without overtime or additional
contracting costs.
We recommend that SKFR ambulance billing be used for the new consolidated fire department at an
annual savings of approximately $37,000. There would be no loss in service and perhaps a gain in
percentage paid, which has not been calculated as part of the estimated savings.
Potential Cost Savings: $37,000
BFD & SUR Consolidation Fact Finding 10
F. Vehicle Maintenance
The Finance Committee utilized the previous study that was done in this area for the WSFR effort. The
two agencies both have different ways of doing their vehicle maintenance and repair. Each method has
perceived pluses and minuses. The performance measurement in this area is reliability of the vehicles to
respond day -to -day and prolong expensive replacement costs. These outcomes seem to be similar with
both methods used.
The Fire District's model provides equitable service for less money (Appendix F). Excluding parts, BFD
spent approximately $58,000 in 2009 for this activity. For approximately half of that cost, the new
consolidated agency could hire .5 FTE to supplement the three FTE's currently assigned to Fleet
Maintenance with SKFR. This new .5 FTE employee would assist in the lower end preventative
maintenance work, freeing up existing certified fire mechanics for more complex maintenance work. 3.5
FTE's is enough to maintain the new agencies fleet with equitable outcomes as described above.
This recommendation would save the new consolidated agency approximately $30,000 each year. Not
included in future savings is the positive impact on reduction of reserve apparatus and staff vehicles
which is approximately $50,000 for the first year and $25,000 thereafter.
Potential Cost Savings: $30,000
BFD & SUR Consolidation Fact Finding 11
G. Information Technology
The information technology systems in both agencies differ, however, each system seems to produce
reliable tools for emergency and staff use. SUR has approximately twice the personal computers,
MCT's, radios and other communications equipment compared to what BFD has. SKFR has one FTE
that manages this program and BFD relies on city IT to manage this work. The Finance Committee
found that the Fire District model of IT management was less expensive and produced similar outcomes
of that in the BFD. In 2009, BFD spent approximately $67,000 for IT services. The added work and
costs of the BFD IT work to the infrastructure that SKFR currently has is estimated to be approximately
$48,000 annually (Appendix G). This expense would include additional help through outside vendors
and /or an additional .5 FTE.
The approximate annual savings for the new consolidated agency is approximately $19,000. This does
not include cell phones, network connections, existing software and voice phone lines. These details
would need to be negotiated as part of the final work plan for new agency.
Potential Cost Savings: $19,000
BFD & SUR Consolidation Fact Finding 12
H. Facilities, Grounds Maintenance and EQuipment
Both agencies do this work a little differently and each agencies building inventory and status differ
considerably. BFD's three fire stations are in very good condition and SKFR's sixteen fire stations range
from good to moderate condition. The SUR career fire stations are in better condition than the un-
staffed stations.
Both agencies have modern fire equipment and tools and have different methods for ensuring they are
maintained. Both systems produce favorable outcomes. A review of both agencies systems leads the
Finance Committee to estimate that there will be no immediate cost savings in this area. Both systems
rely on Firefighters, volunteer and civic organizations to assist in grounds maintenance. BFD uses paid
city staff to assist in this work and SKFR has 2.5 FTE.
The current public safety bond that does include some fire apparatus and facility capital costs was not
included as part of the new agencies responsibility.
Potential Cost Savings: $0
BFD & SUR Consolidation Fact Finding 13
I. Clerical/Administrative Support
Currently the BFD has one clerical support position that is on location at fire station 1 and SKFR has six
clerical /support positions. In addition, the BFD does receive support from other city departments.
Both agencies have adequate clerical support to meet their mission and compared with surrounding fire
agencies have a very low percentage ratio of staff to operations. The feasibility study conducted for
WSFR by Emergency Services Consulting Inc. indicated that 18% was good ratio. Currently, both
agencies are far below that percentage. The Finance Committee believes this is a result of budget
tightening that required both agencies to shift as much as practical, support resources to operational
areas.
There is no projected savings in this function for the new consolidated agency. The current individual
systems combined into one consolidated system would be revenue neutral. However, there may be
productivity improvements with a larger workforce creating some opportunities for synergy.
Potential Cost Savings: $0
BFD & SUR Consolidation Fact Finding 14
i
Executive Summary
Problem Statement: There currently is an economic crisis facing many public safety agencies
throughout the nation. In Washington State the cuts include reductions in service, personnel, hours,
wages, benefits, and others. Cities are being hit harder than Districts unless the District is at the
maximum tax rate allowed by law without a benefit service charge. The recovery as estimated by the
United States Fire Administrator will take one to three years for corporate recovery and another one to
two years for government to recover, including public safety agencies.
Solution: Through consolidation, find administrative and operational efficiencies that maintain or
improve current core emergency service levels without subsidizing or raising tax revenue significantly.
Finances: The net potential cost savings from a Bremerton Fire Department and South Kitsap Fire
Rescue consolidation would be approximately $140,000 the first year, $935,000 in the first three years
and $655,000 each year thereafter. The following summary illustrates how over a period of three years
the funding gap would be reduced to zero.
2010 Budget gap as outlined in the SKFR/BFD finance committee estimates are approximately
$2,100,000 for that year. South Kitsap's fire rate and Assessed Values (AV) in both jurisdictions
are the greatest variables in this issue. SKFR's 2010 AV with a combined fire and EMS rate of
1.67/$1000 created the shortfall when laid over the city's AV. The projected combined SKFR
rates for January 2012 are approximately 1.85/$1000. Hypothetically, if the city was to annex
Navy Yard City and Rocky Point and TriLakes is de- annexed from SKFR, that figure goes up to
approximately 1.98/$1000. If you lay that over the city AV the gap is reduced by $1,080,000 or
down to a gap of $1,020,000. By laying the fire districts business model over the BFD another
$420,000 is removed or down to a gap of $600,000. By eliminating over - lapping administrative
positions another $515,000 is removed or a gap of $5,000 a year. If the AV continues to rise at a
rate of 2% collectively after three years, it will reduce the gap another $100,000 every other year.
Once formed the law allows the RFA to increase the revenue by 1 % per year plus new
construction. This is estimated to increase revenue by $250,000 for 2012. In three years time we
have experienced all of the efficiencies noted above and the city's "back payment" to cover that
gap may be eliminated.
Politically: Internally it will mean embracing new ways of doing things. Externally, it will be important
that we use some of the initial savings to increase staff on the operational side of our business. If we can
show our tax payers that they will receive better emergency service without increasing costs in South
Kitsap or the city, we will be successful in forming a new organization that is positioned to survive the
economic storm in the short term and thrive once recovery comes to public safety
BFD & SKFR Consolidation Fact Finding 15
Recommendation
The last six months of fact finding has been enlightening and rewarding. It is always good to look for
ways to do things differently that will likely produce immediate improvements and future efficiencies in
emergency service.
The results of this fact finding project for a new consolidated fire department including the BFD and
SKFR initially and eventually CUR, has led the committee to recommend that the elected officials
from both agencies consider forming a planning committee as required for the formation of a regional
fire authority. That this planning committee be directed to have a work plan with sufficient detail for
consideration of the voters in the November 2011 ballot. A minimum of six months is needed to inform
the public on this issue prior to election, so the work plan will need to be finalized by both agencies
elected officials sometime in April of 2011.
It will be imperative that all internal stakeholders formally support this initiative for it to be successful.
To that end, an internal education program for all stakeholders should begin immediately on this report
and eventually the work plan.
The Fact Finding Committee wishes to thank its elected officials, stakeholders and support staff for
making time to review this critical public safety issue. Out of all of our work we walked away with a
better understanding of both agencies and the true dedication of both to provide the best emergency
service for each of our communities. Our work reinforces the effort to overcome the old saying: "If you
always do what you've always done, then you'll always get what you've always got."
BFD & SUR Consolidation Fact Finding 16
Appendix A
Future re Organizationnal Chart
:ts x I .Sint iY tl tttP4tttLi #t tt tst t k #t t
�:LISiAN15& « � �tyj�y,
BFD & SUR Consolidation Fact Finding 17
Appendix B
Transitional Organizational Chart
CHIEF
FINANCE HR/ADMIN
E7 S SUPPORT
OhAl
7 77 1
C, 7pl ORT ' AMBBI'LL SUPPORT
BG B. B' RAI G P E
BG C B ' ,C FAC IT
Current Chief Officers: SUR — 7 & BFD — 5
If this number changes, the above chart will be modified to
accommodate those changes.
BFD & SKFR Consolidation Fact Finding 18
i
Appendix C
Healthcare Matrix
Annual Deductible Employees Dependents
EE $0 $100 $100 $50 $100
Family $50 Per Dep To a max $300
of $150 $300 $300
Annual Coinsurance
Max
EE $0 $1,000 $1,500 $200 $200 per
enrollee
Family $0 $3,000 $4,500
Coinsurance
Network 100% 90% 80% 100% 80%
Non - Network 70% 70% 60% 25% < 25% <
allowed allowed
Non - network Non - network
Separately between Separately between Separately between difference difference
Coinsurance Accrues
par and non -par par and non -par par and non -par does not does not apply to apply to
coins -max coins -max
Lifetime Maximum (per $2 Million $2 Million
Enrollee) $2 Million $1 Million $1 Million
Dependent Age Limit 25 25 25 25 25
Facility Hospital
Services
$200 Inpatient copay
Inpatient 100% 90% per day, 5 days 100% 80%
maximum per admit,
80%
Outpatient 100% 90% $200 facility copay, 100% 80%
80%
Emergency Room $50 copay, 100% o 0 0 0
and Supplies p Y $75 copay, 90 /o $100 ER copay, 80 /0 100 /0 90 /o
rs p,r ofessional
ry ices/Naturopath
Hospital, skilled Hospital and
Nursing Facility or SNF: 100%
Ambulatory Care 100% 90% 80% 100% Ambulatory
Center Surg Center:
80%
BFD & SUR Consolidation Fact Finding 19
Home/Office or ° $10 copay, 90% 100% not sub not $20 office copay,
100 /o ( ect to $10 copay, $ 1 1 00 pay,
Urgent subject to Deductible) � 100% °
Deductible
Ambulance
100% limited to 90% limited to $2,000 80% limited to $2,000 100% of first
Ground $2 000 er year $50, then 80%
p y per year per year 80%
100% Limited to 90% Limited to 80% Limited to 100% of first
Air $5,000 per trip $5 000 er trip $50, then 80%
p p $5,000 per trip 80%
Lab & X -ray
Facility (inpatient
Hospital, 100% 90% 80% 100% 100%
Ambulatory Surgery
Center
Emergency Room 100% 90% 80% 100% 100%
and Supplies
All other Lab and 100% Not Subject to 90% Not Subject to 80% Not Subject to 100% 100%
Radiology Ded Ded Ded
Mammography and 100% Not Subject to 90% Not Subject to 80% Not Subject to 100% 100%
PSA, diagnostic Ded Ded Ded
Mammography and 100% Not Subject to 100% Not Subject to 100% Not Subject to 100% 100%
PSA, routine Ded Ded Ded
Maternity
See See
Hospital See Facility/Hospital See Facility/Hospital See Facility/Hospital Facility/Hospi Facility/Hospi
Services Section Services Section Services Section tal Services tal Services
Section Section
See See
Professional See Professional See Professional See Professional Professional Professional
Services Section Services Section Services Section Services Services
Section Section
Preventive Care
Annual Routine 100% not subject to 100% not subject to $20 office copay, 100%($200 100%($200
Physical deductible ($500) deductible ($500) 100% to $500 not max) max)
Exam/Immunizations subject to deductible
100% to $200 not 100% to $500 not
Well Baby Care subject to deductible, 90% not subject to subject to deductible, ° o
80% thereafter subject deductible thereafter 80% subject 80 /0 80%
to deductible to deductible
Mental Health
See Facility/Hospital
Inpatient 100% (8 days) 90% (8 days) Services Section (10 100% 80%
days)
BFD & SKFR Consolidation Fact Finding 20
See Professional See Professional See Professional
Outpatient Services Home office Services Home office Services Home / $10 copay $10 copay
or Urgent Section ( 20 or Urgent Section ( 20 Office, or Urgent then 100% then 100%
Visits) Visits) Section (20 visits)
Combined maximum:
Chemical Dependency $14,500 per 24
months
Inpatient 100% 90% See Facility Services 100% 80%
Section
Outpatient 100% 90% 80% $10 copay $10 copay
then 100% then 100%
Rehabilitation- Physical,
Speech, Massage &
Occupational Therapy
See Facility/Hospital See Facility/Hospital 100%(30
Inpatient Services Section (120 90% ($10,000) Services Inpatient days) 80%
days) Section (120 days)
See Professional See Professional
Outpatient Services Home/Office 90% ($2,000) Services Home / 100% 80%
or Urgent (45 Visits) Office, or Urgent
Section 45 visits)
Medical Equipment and 100% ($5,000) 90% ($2,500) 80% ($2,500) 80% 80%
Supplies
See Professional See Professional
See Professional
Spinal and Extremity
Services Home.Office Services Home.Office Services Home.Office $10 copay $10 copay
or Ur
or Urgent section (52 or Urgent section (24 then 100% then 100%
Manipulations visits not subject to gent section (30 visits not subject to (20 visits) (20 visits)
deductible visits) deductible
See Professional See Professional See Professional $10 copay $10 copay
Acupuncture Services Home/Office Services Home /Office or Ur 12 Services Home/Office then 100% � then 100%
Urgent or Urgent (12 or Urgent (12 g ( (12 (12
treatments) treatments) treatments not subject treatments) treatments)
to deductible)
$150 $150
RX Drugs coinsurance coinsurance
maximum per maximum per
enrollee enrollee
Tier 1 $7 Copay $10 Copay $10 Copay 80% 80%
Tier 2 $10 Copay $20 Copay $30 Copay 80% 80%
Tier 3 $30 Copay $40 Copay $50 Copay 80% 80%
Maintenance Drug 2 copays for 90 day 2 copays for a 90 day 1 Copay for 90 day 80% (Tier 80% (Tier
Copays supply Tier 1 &2) supply (Tier 1 &2) supply (Tier 1&2) 1 &2) 1 &2)
Mail Order Included Included Included
BFD & SKFR Consolidation Fact Finding 21
$250,000 lifetime $250,000 lifetime $200,000 lifetime 100% at 100% at
maximum, See maximum, See maximum, See participating participating
Organ Transplant Professional and Professional and Professional and provider- provider -
Facility/Hospital Facility/Hospital Facility/Hospital 80% at non- 80% at non -
Services sections (12 Services sections (12 Services sections (12 par with par with
month waiting period) month waiting period) month waiting period) $350,000 max $350,000 max
Home Health Care 100% (130 Visits) 90% (130 Visits) 80% (130 Visits) 100%(130 100%(130
visits) visits)
Hospice 100% (6 months) 90% (6 months) $50 copay, 80% 100%(6 100%(6
(6 months) months) months)
$500 lifetime $500 lifetime $250 lifetime
Smoking Cessation maximum paid at maximum paid at Maximum paid at
75% constant, not 75% constant, not 50% constant, not
subject to deductible subject to deductible subject to Deductible
Temporomandibular 100 %($1,000 /$5,000 90 %($1,000 /$5,000 80 %($1,000 /$5,000 N/A N/A
Joint Disorders per lifetime) per lifetime) per lifetime)
Audio benefit
Hearing Exam 100% 1 per 24 months $10 Office visit
Copay, 90% 80% Constant to $125 N/A N/A
100% $700 every 24 u per year
Hearing Aids months 90 /a Constant N/A N/A
See Facility/
Occupational Injury See Facility/ Hospital See Facility/ Hospital See Facility/ Hospital Hospital and
(Leif I only) and Professional and Professional and Professional Professional N/A
Services sections Services sections Services sections Services
sections
Vision
Hardware $100 per year $100 per year $100 per year ?? ??
Exam 100% 100% 100% 100% 100%
S leep Disnorder $6,500 $6,500 $6,500 $5,000 $5,000
BFD & SUR Consolidation Fact Finding 22
Premiums - SKFR
Bremerton
Enrollment
EE $ 581.84 $ 447.70 $ 407.42 5
EE +SP $ 1,281.38 $ 985.95 $ 897.19 9
EE +1CH $ 983.74 $ 756.93 $ 688.82 1
EE +2CH $ 1,298.82 $ 999.35 $ 909.43 1
EE +3CH $ 1,519.35 $ 1,169.07 $ 1,063.86
EE +SP +1 CH $ 1,683.24 $ 1,295.16 $ 1,178.59 12
EE +SP +2CH $ 1,998.32 $ 1,537.60 $ 1,399.21 19 est
EE +SP +3CH+ $ 2,218,86 $ 1,707.29 $ 1,553.62 11 est
All LEOFF Retirees $ 1,814.93 $ 1,396.50 $ 1,270.85
Under 65
All LEOFF Retirees $ 912.80 $ 702.35 $ 639.16
Over 65
LEOFF Spouse <65 $ 1,284.78 $ 988.58 $ 899.64
LEOFF Spouse >=65 $ 581.84 $ 447.70 $ 407.42
1 st CH $ 401.90 $ 309.23 $ 281.40
2nd CH $ 315.08 $ 242.42 $ 220.61
3rd CH $ 220.53 $ 169.72 $ 154.43
Cost for Bremerton $ 2,909.20 $ 2,238.50 $ 2,037.10
Members
$ 11,532.42 $ 8,873.55 $ 8,074.71
$ 983.74 $ 756.93 $ 688.82
$ 1,298.82 $ 999.35 $ 909.43
$ 20,198.88 $ 15,541.92 $ 14,143.08
$ 37,968.08 $ 29,214.40 $ 26,584.99
$ 24,407.46 $ 18,780.19 $ 17,089.82
Totals Monthly $ 99,298.60 $ 76,404.84 $ 69,527.95
Annual Plan $ 1,191,583 $ 916,858 $ 834,335
Premium
HRA and FSA $ 0 $ 278,400 $ 348,000 (assumes 58
members)
Total Annual Cost $ 1,191,583 $ 1,195,258 $ 1,182,335
Differences
Additional benefits
(SK plan) $ 87,000
Additional benefits
paid by City (avg.)
Average of 2006 - $ 9,491
2010 (20 10 was
annualized)
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BFD & SKFR Consolidation Fact Finding 23
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Appendix D
HRA/FSA vs. 100% Plan
SKFR MEDICAL /HRA/FSA INCREASES 2006 -2009
1,800.00 - - --
$166.
.10 %"
1,700.00 $113
$121 6.93 %'
6.02%
1,600.00
$130 tl 3
64 9:49% '12W
E
1,500.00 +HRA -80/20
IL
—*--100%
1,400.00 $18 7 .
44.9%
1,300.00
1,200.00 \
2006 2007 2008 2009
Year
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BFD & SUR Consolidation Fact Finding 24
Appendix E
2008 WSFR Overtime Study in
April January October Total OT �' 4-month 1 -year
• • • I
Hours
period period
Total Overtime 295.25 642.25 1165.5 701.75 2804.75 $120,772.54 $362,317.61
BFD 165.00 522.25 248.50 342.75 1278.50 $55,052.21 $165,156.63
SK 13025 120.00 917.00 359.00 1.52 -64a $86,720.33 $197,160.98
• 175.00 334.75 0.00 48.00 557.75
• • ' • 120.25 7307.50 1165.50 653.75 2247.00
Assumptions
1. Bremerton Fire Minimum Staffing = 12
3. SKFR Minimum Staffing = 17
4. No overtime was counted for Drop Boarders Now for BFD (if a PM was on OT for "minimum staffing ", it was not counted)
5. Only Overtime for Sick Leave, FMLA, Comp Time Off, Bereavement, Vacation, and Kelly Days were counted
6. Overtime for hold overs, training, meetings, union leave, etc were not counted
BFD & SUR Consolidation Fact Finding 25
Appendix F
Vehicle Maintenance Report
FTEs and Hourly Rates
City of Bremerton Shop information;
Shop Fees:
$72 per hour shop rate
Equipment cost is added for station visits
Service Schedules:
Engines - 1 out every 2 months, Reserve every 6 months
Medic Units - 1 out every 2 months, Reserve every 6 months
Staff Vehicles - Every 4 months
A- Service; oil change and inspection (3 to 4 per year)
C- Service; all fluids changed, filters changed, tire rotated, inspection (1 per year)
The following data is based on the current BFD fleet of:
°Fia� §t Out;E 'ui i�ient:., Bac Reserve;Equi` rent
3 medic units 2 medic units
3 engines 3 engines
1 ladder truck 1 antique vehicle
7 staff vehicles 1 car pool vehicle
1 duty chief vehicle
1 boat
1 utility truck
First out equipment
• $33,500.32 was spent on shop time & equipment costs (No Parts)
• Based on $72 per hours this was equivalent to 465.30 shop hours
Reserve equipment
• $24,881.66 was spent on shop time & equipment costs (No Parts)
• Based on $72 per hours this was equivalent to 345.60 shop hours
Total hourly expenses:
• $58,381.98 was spent on shop time & equipment costs
• Based on $72 per hours this was equivalent to 810.90 shop hours
BFD & SKFR Consolidation Fact Finding 26
Not taken into account is that the firefighters do most of the transporting of equipment to and from the
shop, minor in- station apparatus repairs, annual pump testing, and small equipment repairs and
servicing.
Summery: In 2009 it cost the fire department $58,381.98 for 810.90 hours of shop time. As a combined
department there could be a less expensive way and hourly rate to handle these repairs. Per our current
CBA a mechanic makes roughly $28 per hour. At that rate, a part-time mechanic working 1040 hours
per year could be hired for around $30,000. Although this would not address the entire workload of
transporting vehicles, pump testing or small equipment repair, it would cover the vast majority of actual
shop time. This estimation shows almost a $30,000 savings in shop costs.
Frequency of Maintenance
This is an area which we believe we could also save some money, although we don't see making any
immediate changes but rather a review of the current practices. The question comes from the frequency
of routine maintenance that is performed by the Bremerton shop. They are bringing in apparatus
approximately every two months, six times per year, for routine oil changes; mileage is not a factor. This
is done for both first out and reserve apparatus. South Kitsap brings in staffed engines twice a year and
ambulances every 5000 miles.
We would recommend a review to see how often these apparatus really need to be serviced based on
hourly use and mileage and not calendar time. It appears that the reserve apparatus specifically may be
over serviced inflating the yearly cost.
Total Fleet Numbers
Currently both departments have a full complement of first out and reserve vehicles. I see no change in
the number of first out vehicles needed to provide service to our communities. The savings would come
in the number of reserve and carpool vehicles needed to support the first out fleet. It would take a year
or so to evaluate the true number of reserve vehicles needed but I do see three areas of efficiency that
would be created by a combined department.
First the total number of reserve vehicles could be cut and a small income would be generated by the
sale of those vehicles.
Secondly you can see by the cities spreadsheet that nearly $25,000 in labor, not including parts, was
spent to maintain those reserve vehicles. By reducing the number of reserve vehicles there would be a
second savings to the fleet budget.
Finally the third savings would come in the amount of staff cars needed for day time employees.
Bremerton will be bringing seven fairly new staff cars into the combined department in addition to
SKFR's three, and this would allow SKFR to potentially cut future staff cars from their proposed
budget.
BFD & SUR Consolidation Fact Finding 27
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Appendix G
Information Technology Report
SKFR currently has just over twice the number of PC's as Bremerton, so all numbers are based on a 50%
increase in our current costs in most areas. A cost savings would be seen in the back end infrastructure.
Currently all of our servers are adequate to meet any additional load we would see. The estimates below
do not include any capital projects such as software upgrades or server upgrades as these would be
budgeted for as needed.
Computer Cost Increase
Workstation Replacement: $5,000.00 /year
Repair/Replacement Parts: $2,500.00 /year
Software: $2,000 /year
Backend/Servers: $0.00 /year
Software Support, $5,000 /year
Radio Communications Cost Increase
Radio Service and Replacement: $3,500.00
Personnel Cost Increase
1/2 FTE Computer /Electronics Technician: $40,000 or $30,000 in OT for existing staff and
outside vendors.
Total Cost: $48,000 - $58,000 /year
Approximate Savings: $9,000 - $19,000 /year
Other Items not included, but would remain constant to what Bremerton is already paying would be Cell
Phones /pagers, Network connections, existing software and Voice phone lines.
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BFD & SUR Consolidation Fact Finding 28