Presentation on theme: "Outsourcing Fire/Emergency Medical Services (EMS)"— Presentation transcript:
1Outsourcing Fire/Emergency Medical Services (EMS) August 2, 2011 – Mayor requested staff to research outsourcing EMS for the 2013 budget.Staff will begin working on the 2013 budget in February 2012.
2Fire Services As requested by City Council Outsourced fire services are generally offered in a specific regional or geographic area serviced by an established volunteer, municipal, district, or state fire department.Larger metropolitan areas (example: Pasadena, Texas)California, Florida, WashingtonFew private fire service companies exist that provide service to municipalities.One third-party company has contacted the City48 total authorized positions45 funded positionsISO PPC2 rating/classification – we have to maintain most of those authorized funded positions
3EMS Services As requested by City Council Several organizations provide contractual emergency medical services (EMS) throughout the country and the region.Estimated cost to outsource EMS services$700,000 - $1,000,000Use/purchase of assetsPrice structure to citizens
4Budget for City of Copperas Cove Fire/EMS Department FY $3,405,689 FY $3,229,145 FY $3,003,768 FY $3,103,956
5Outsourcing Options Fire only EMS only Fire and EMS Emergency Services District – Fire and/or EMSHealth Code – Chapter 775Voter initiative (petition)If Civil Service is adopted and EMS is outsourced, the City will still have the same startup costs to implement Civil Service.To not incur the additional costs of implementing Civil Service, fire service would have to be outsourced or a voter initiative to create an Emergency Services District would have to come forth.NFPA recommends the minimum staffing levels for fire suppression and ISO takes into consideration the staffing levels when issuing their rating on the community (insurance costs).
7Local Government Code Chapter 143 Municipal Civil Service for Fire Fighters and Police OfficersInformation relating to cost estimates has been provided by and researched through other cities’ experiences and staff calculations to develop a reasonable/fair basis of the financial impact of adopting Civil Service Law for fire fighters. Actual costs could be higher or lower depending on several factors.
8Intended purpose of Local Government Code Chapter 143
9Originally enacted by the state legislature in 1947, the purpose of the Act “is to secure efficient fire and police departments composed of capable personnel who are free from political influence and who have permanent employment tenure as public servants.”Local Government Code, Section
11Chapter 143 of the Texas Local Government Code outlines the provisions of the Fire Fighters’ and Police Officers’ Civil Service Act.This state law dictates to cities that have adopted the law specific provisions of how affected employees must be hired, promoted and disciplined and what benefits they must be paid.
13The Copperas Cove Fire Fighters’ Association has obtained the required number of signatures of registered voters on a petition providing for a vote for or against the proposition adopting the State Fire Fighters Civil Service law, Chapter 143 Local Government Code, for the City of Copperas Cove Fire Department.On September 6, 2011, the City Council called for this election to be held on Tuesday, November 8, 2011.
15November 8, 2011January 7, 2012 (within 60 days)Between Jan 7, 2012 and October 30, 2012October 30, 2012Election DayChief executive appoint Commission membersAdoption and publication of rules before implementationFully Implement Chapter 143
16Adoption and publication of rules before implementation Pays: Longevity, Education, Assignment, Certification, Shift Differential, & Fitness IncentiveEligibility List: 6 or 12 monthsHiring Process – Interviews?Classification systemNumber of employees under each classificationSalary Pay PlanProbationary period: 6 or 12 monthsVacation leaveContinue: Birthday leave, Bereavement/Personal time off, Holidays?
18Loss of “At-Will” Employer Status The State of Texas is an “At–Will” state meaning thatEmployment relations may be broken by either party without cause provided there is no express contract for a definite term.Civil Service changes the “At-Will” status by providingLimited circumstances whereby a covered employee may be disciplined and/or terminated.A Civil Service employee has the right to appeal a disciplinary decision to the Civil Service Commission or to an independent third-party hearing examiner.The decision of the Civil Service Commission can only be appealed to state district court.
19Applicant Eligibility, Recruitment, and Selection Maximum age of 36 for entry–level fire fighters.Civil Service will reduce the pool of experienced applicants eligible for employment with the Copperas Cove Fire Department.Additionally, the City’s freedom to reject applicants would be limited.Hiring is restricted to the applicant list based on the test results and the department must exhaust the unexpired list when hiring individuals.
20Applicant Eligibility, Recruitment, and Selection (cont.) Current OperationsCivil ServiceTestingInterviews/Background CheckFitness6 month probationTestingBackground CheckFitnessMinimum of 6 month probation, maximum of 12 month probationDuring probationary period, employees do not have protections of Civil Service Law.
21Applicant Eligibility, Recruitment, and Selection (cont.) Once Civil Service is adopted each fire fighter serving more than six months.Entitled to civil service classification and status.Not required to take a competitive examination to remain in their current position.Civil Service will require fire fighters employed less than six months, at the time of adoption, to undergo competitive testing in order to retain their position. The City will bear the cost of all testing.An employee of the fire department whose primary duties are emergency medical services is considered to be a fire fighter covered by the Civil Service Act.
22Service Requirements for Promotion Eligibility Promotions are governed by the Civil Service rules.Civil Service requires that personnel be employed for a specified amount of time in one level or position before they are eligible to promote to the next level.All persons eligible to be considered for promotion must pass an examination, and the highest score on the exam, with few exceptions, must be promoted.An existing position or a position created in the future either by name or by increase in salary may be filled only from an eligibility list that results from an examination held in accordance with this chapter.Amount of time in current positionHighest score on exam must be promotedAll eligible persons must pass the examPromotional position must be filled from the eligibility list
23Civil Service Commission Civil Service would require City Council to appoint a Civil Service Commission, which in turn must appoint a Civil Service Director.The Commission’s duties would include:Create and administer extensive civil service rules and procedures.Create and administer promotional examinations for each rank in the department.Pass judgment on all disciplinary actions taken by Fire Department management.Entertain fire fighters’ appeals from a variety of departmental actions, including by job applicants who are disqualified from employment by their physical examination results.
24Added Administrative Costs In addition, an aggrieved fire fighter would have the right to bypass Commission procedures and demand that a termination, suspension, demotion or promotional by-pass can be heard by a hearing examiner rather than the Commission. This alternative procedure would require hiring and paying for one–half of the costs of a hearing examiner. Due to the nature of these proceedings, the City would incur additional legal expenses in defending against such lawsuits.The City of Copperas Cove will be required to provide administrative support and office resources to the Civil Service Commission and Director. Based upon the experiences of other local municipalities who recently implemented Civil Service, an additional administrative position will be required to establish rules, administer payroll and benefits for fire fighters, and to support the Civil Service Director and Commission.The City is required to provide Administrative SupportAdminister payroll & benefitsSupport Civil Service Director & CommissionAny grievance filed for hiring or promotionalThe City bears responsibility for ½ the cost for the hearing examiner.Incur additional legal fees to defend the City’s hiring or promotional decision.
25Division of City Staff and Tax Burden Approval of Civil Service status will provide added benefits for Fire/EMS personnel, but not to other City employees.The potential exists to create a separate class of employee.Tax BurdenApproval of Civil Service for fire fighters would increase the cost of maintaining the department.City funding is largely derived from property and sales taxes, with sales taxes nearly flat for the current fiscal year.Property Tax makes up 45% of General Fund revenueSales Tax makes up 19% of the General Fund revenueReminder: Civil Service Law states employees under Civil Service are permanent employees.For current staffing, out of the 48 Fire/EMS positions, only 15 employees list addresses within the City of Copperas Cove.According to City records, 33 of 48 Fire/EMS positions reside outside the City of Copperas Cove.
26Loss of FlexibilityFire/EMS positions already enjoy the same job protections as other City employees as well as certain legal rights that do not exist in the private sector.At the same time, City management has the flexibility to meet the changing needs of our community by assigning fire personnel according to their talents and best use.Civil Service would change this flexibility as Department managers would have little or no control over hiring, promotion, discipline, or termination decisions.
27Temporary Duties - §143.038 Out-of-Class or Step-Up Pay A person fills the next higher rank of position as designated by a supervisor.This may not be construed as a promotion.The designated person is entitled to the base salary of the higher position plus the designated persons other pay.Fire fighters assigned to temporarily serve in a higher classification, i.e., Lieutenant or Battalion Chief, are entitled to the base salary of the higher positionEven for ½ a shiftAdministrative issues created
28Salary - §All fire fighters in the same classification are entitled to the same base salary.In addition to the base salary, each fire fighter is entitled to each of the following types of pay, if applicable:(1) longevity or seniority pay(2) educational incentive pay(3) assignment pay(4) certification pay(5) shift differential pay(6) fitness incentive payIt is highly recommended to enlist the services of a consultant in developing the classification structure and the pay plan.
29Assignment Pay - §May authorize assignment pay for fire fighters who perform specialized functions.Criteria for the pay must be applied equally and be established by ordinance.
30Certification/Incentive Pay - §143.044 If each fire fighter is afforded an opportunity to qualify for certification, the municipality's governing body may authorize certification pay.Same for education and fitness incentive pay.Criteria for the pay must be applied equally and be established by ordinance for each qualified fire fighter.Certification/incentive pay is in addition to regular pay.
31Accumulation & Payment of Sick Leave – §143.045 A fire fighter is allowed to accumulate 15 workings days of sick leave a year.The maximum accrual level would be unlimited under Civil Service.A fire fighter who leaves the classified service for any reason is entitled to receive in a lump-sum payment the full amount of their salary for accumulated sick leave up to 90 days (1,080 hours).Currently capped at 960 hours.Currently only receive ½ of sick hours balance if with the City for 20 years.
32Accumulation & Payment of Sick Leave – §143.045 (cont.) This would be a new cost that would have to be budgeted for annually.Conditions for payment of accumulated sick leave after the adoption of the Civil Service Law would change and, in fact, increase the liability of the city for accrued sick leave.Additional Impact: § – The municipality shall provide in its annual budget a sum reasonably calculated to provide funding for sick leave benefits for the fiscal year covered by that budget.Sick leave under this section cannot begin to accrue until the civil service law is enacted and employees are classified. Austin Fire & Police Departments v. City of Austin 224 S.W.2d 337 (Tex.Civ.App.-Austin 1949)
33Vacations – §Each fire fighter is entitled to earn a minimum of 15 working days' vacation leave with pay in each year.Unless approved by the municipality's governing body, a fire fighter may not accumulate vacation leave from year to year.Chapter 143 does not provide for the carry-over of vacation leave balances from year to year; thus fire fighters would be forced to use or receive payment for their leave each year unless City Council intervened to permit a carryover.Current city policy allows for the carryover of vacation hours.Current policy allows a maximum carryover accrual of 288 hours.
34Line of Duty Illness/Injury – §143.073 A municipality shall provide to a fire fighter a leave of absence for an illness or injury related to the person's line of duty.The leave is with full pay for a period commensurate with the nature of the line of duty illness or injury.If necessary, the leave shall continue for at least one year.
36Financial Impact Summary CategoryCurrentCivil ServiceExams$ 1,850$ 5,275Legal$ -0-$ 32,000Discipline$ 45,000HR Support$ 50,325Temporary Duties$ 249,000Establish Salary Classification System$ 20,000 + “True up”Assignment Pay$ 33,250Certification Pay$ 204,000Sick Leave Funding$ 89,606Vacation$ 5,376$ 3,360Injury Pay$ 15,205Total$ 244,476$ 747,021 + “True up”Financial Impact Summary$20,000 for salary is the estimated consultant cost to develop the classification system and pay plan.“True up” is the salaries adjustment after the classification system and pay plan are established.
37Examinations – §143.021 Current Operations Civil Service 2 testing a year$18.50/test50 applicants at each testFiscal impact: $1,8502 testing a year$18.50/entrance test75 applicants for entrance test$1,250/promotional testing2 promotional opportunities/yearFiscal impact: $5,275§ defines the entrance exam§ ,033,034 define promotional exam, review, and appeal of the examOral interviews and review of personnel files are not authorized under civil service law for new hires (can look at backgrounds) or promotions unless approved by the Civil Service Commission & the governing body.Neighboring community - cost of one (1) promotional exam: $5,000Oral interviews…may be used for new hires if made a part of the local rules.are prohibited under civil service law for promotions.
38Legal/HR Services Policy preparation $32,000/one time Discipline (§ )Disciplinary Actions $20,000/yearArbitration (1 hearing) $25,000/yearHuman Resources staffing1 additional position $48,000/yearDoes not include specialized trainingOffice space considerations $2,325/one time
39Temporary Duties – §143.038 Current Operations Civil Service These temporary assignments are not paidPart of the job dutiesFiscal impact: $0Approximately 10 substitutions (temporary assignments) a weekFiscal impact: $249,000
40Salary – §143.041 Current Operations Civil Service City Council sets the salariesIncreasesOrganization-wide cost of living adjustments (COLA)Individual performance merit increasesFiscal impact: determined each yearCity Council sets pay plan structureConsultant to create plan: $20,000IncreasesBuilt into pay plan and automaticNot performance basedFiscal impact:$20,000 first year“True up” of current salariesIncreases based on pay plan
41Assignment Pay – §143.042 Current Operations Civil Service City Council sets the assignment pay.Currently, a paramedic assigned to an ambulance receives $25 per shift.Fiscal impact: $33,250City Council sets the assignment pay.Keeping assignment pay as currently set and paid.Fiscal impact: $33,250
42Certification/Incentive Pay – §143.044 Current OperationsCivil ServiceCity Council sets the certification payParamedicIntermediateAdvancedMasterFiscal impact: $204,000City Council sets the certification payParamedicIntermediateAdvancedMasterFiscal impact: $204,000City Council may authorize additional pays set out in the Civil Service Act
43Accumulation & Payment of Sick Leave – §143.045 Current OperationsCivil ServiceAccrual of 96.2 hrs/yearMaximum of sick leave to carry from year to year: 960 hoursMaximum payoutOnly after 20 years of continual service to COCC480 eligible hoursAverage salary: $15.35Total: $8,961Accrual of 180 hrs/yearMaximum of sick leave to carry from year to year: “without limit”Maximum payoutWhen a fire fighter leaves for any reason1,080 eligible hoursAverage salary: $15.35Total: $20,161
44Accumulation & Payment of Sick Leave – §143.045 (cont.) Current OperationsCivil ServiceFire fighters eligible to retire (20 years): 3Accumulated sick leave hours: 1,923Eligible for payout: 50%Fiscal impact: $32,865Eligible fire fighters for lump-sum payment: ALLAccumulated sick leave hours: 10,606Eligible for payout: 100%Fiscal impact: $226,819(Current FD Sick Leave Liability assuming it is payable in full)Explain how these relate and that this is the impact if we were Civil Service right now.
45Funding Sick Leave – §Annually budget a sum reasonably calculated to provide funding for sick leave benefits for the fiscal year covered by that budget.Example:48 positionsEarn 180 hours annually, historically use 80 hours annuallyAverage salary: $15.35Estimated annual budget: $89,606This is the amount required by § to budget each year to fund the potential liability of sick leave payout.
47Funding Sick Leave – §143.116 (cont.) Cumulative AmountEquivalent to…Year 1$89,606$0.0083/$100 on the tax rateYear 5$359,100funding 7 police officersYear 7$507,000funding the libraryYear 10$725,400funding 13 fire fighters$752,000overlaying 10 miles of streetsseal coating 22.7 miles of streets$107,850$0.01/$100 on the tax rate
48Vacation – §143.046 Current Operations Civil Service Growing accrual based on years of service from 180 to 264 hrs/yearMaximum of vacation leave to carry from year to year: 288 hoursMaximum payout288 eligible hoursAverage salary: $15.35Total: $5,376Minimum accrual of 180 hrs/yearCivic service law does not require leave to carry from year to year, unless approved by City CouncilMaximum payoutZero (0) eligible hoursAverage salary: $15.35Total: $3,360
49Line of Duty Illness/Injury – §143.073 Current OperationsCivil ServiceTML covers 70% of payEmployee leave time used for remaining 30% of pay if elected by the employeeTML covers 70% of payCity pays remaining 30% of payIf leave extended beyond 1 year, employee may use leave time
50Line of Duty Illness/Injury – §143.073 Current OperationsCivil ServiceMaximum impact:Injured January 1st2,715 regular hours workedAverage salary: $15.35Employee leave used: $15,205City cost: $Maximum impact:Injured January 1st2,715 regular hours workedAverage salary: $15.35Employee leave used: $City cost: $15,205There have been two (2) actual line of duty injuries within the last year that resulted in lost time from work to qualify for Temporary Income Benefits.
52Financial Impact Summary CategoryCurrentCivil ServiceExams$ 1,850$ 5,275Legal$ -0-$ 32,000Discipline$ 45,000HR Support$ 50,325Temporary Duties$ 249,000Establish Salary Classification System$ 20,000 + “True up”Assignment Pay$ 33,250Certification Pay$ 204,000Sick Leave Funding$ 89,606Vacation$ 5,376$ 3,360Injury Pay$ 15,205Total$ 244,476$ 747,021 + “True up”Financial Impact Summary$20,000 for salary is the estimated consultant cost to develop the classification system and pay plan.“True up” is the salaries adjustment after the classification system and pay plan are established.
53Repeal of Local Government Code Chapter 143, if Adopted
54Repeal ProcessThe language of the Act, which allows voters to place their fire departments under chapter 143, is clear. However the provisions, which would give citizens the power to repeal the state-mandated civil service system, are ambiguous.As the law is written in Chapter (e), a majority of the qualified voters must vote to repeal the statute. Such a requirement is virtually unattainable, since it would require more than one-half of the total number of registered voters to vote for repeal.
55Repeal ProcessIt should be noted, although this provision remains in the statute, the courts have ruled in a case involving the City of Stephenville that only a majority of the votes received in the election in favor of repeal may repeal the statute. This has been the only successful repeal of the statute.
56Local Government Code Chapter 143 Questions and Comments