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HomeMy WebLinkAboutFIN 20-15 Cat/ 00 Report to Executive Committee PICKERING Report Number: FIN 20-15 Date: July 6, 2015 From: Paul Bigioni Director, Corporate Services & City Solicitor John Hagg Fire Chief Subject: Regional Fire Services Study Recommendation: 1. That Report FIN 20-15 of the Director, Corporate Services & City Solicitor and the Fire Chief be received; 2. That Council not support a study by the Regional Municipality of Durham of the impact of a proposed Regional merger of Fire Services; and 3. That a copy of this Report and Council's Resolution be forwarded to the Chief Administrative Officer and the Chair and Chief Executive Officer of the Regional Municipality of Durham. Executive Summary: The Fire Protection and Prevention Act(Ontario) identifies the fire protection services that municipalities are responsible for and the methods for providing these services. The level of fire protection services within each Durham municipality is based on each municipality's unique needs and circumstances. Current fire services within the Region is split geographically, with most lakeshore municipalities having full time staff, the northern municipalities relying on a volunteer service delivery model and Clarington using a hybrid full time/volunteer service. Pickering residents are protected by 101 full-time Fire Services personnel working within four fire stations in the City. In addition, the City benefits from several shared service agreements that provide an added layer of safety and security for Pickering residents and businesses. These shared service agreements require each municipality to assist the others such that no local municipality is left to itself when facing.a major fire event. In other words, the City has implemented a multi-dimensional service level strategy to ensure that Pickering residents are always protected. Furthermore, the services available through these shared service agreements is taken into account by Pickering's Fire Department whenever it considers acquiring any new equipment or staff. In this way, redundancies among'the Fire Departments of the various local municipalities is avoided. 154 • FIN 20-15_ July 6, 2015 Subject: Regional Fire Services Study Page 2 Uxbridge Council discussed fire amalgamation in October of last year and noted the following: "Uxbridge currently has the highest assessed property value and a regional fire service would result in a further hit to taxpayers who already pay a premium for other Regional services." This statement also applies to Pickering. Pickering has the highest assessment values for residential homes for all of the Durham Lakeshore municipalities. Any transfer of fire costs to the Region would mean that Pickering residents would be paying more. For 2015, the Regional average home assessed value is $351,000 in contrast to Pickering's average cost of$426,000. With a Pickering home assessed higher, more of the Regional cost is allocated to Pickering. Pickering residents are receiving a high level of service and good value for their tax dollar. It is doubtful that an amalgamated Fire Service would provide an improved level , of service or that it would improve operational efficiencies in any meaningful way. It would, however, result in Pickering residential taxpayers paying more to subsidize other areas of the Region. City staff therefore recommend that Pickering not support a Regional study of any proposed merger of Fire Services. Financial Implications: From a real estate and assessment perspective, Pickering's home prices are the highest of the Durham lakeshore municipalities. Pickering homes have a higher assessed value in contrast to the Regional average and, therefore, Pickering's taxpayers pay an increasing amount of the Regional levy. In other words, Pickering taxpayers subsidize the lower assessed areas within Durham Region from a Regional levy perspective. If the Durham lakeshore municipalities transferred their fire costs to the Region, any savings that Pickering residents would see on the City share of their taxes would be eliminated on the Regional share, and Pickering's taxpayers would have to pay additional amounts to subsidize those communities who have lower average assessed home property values. Discussion: Pickering residents are protected by 101 full-time Fire Services D 9 p Y personnel working within four fire stations in the City. Fire Services personnel are assigned to the following areas: fire prevention/public education (5), administration (6), training (2) and suppression/operations (88). The four fire stations currently in place within the City provide for good response times and overall coverage. The new fifth station in the Seaton area will complement the other four stations and improve response times in the Duffin Heights and Seaton area. While the stations are well spread out to provide these response times, it is important to note that they do not overlap with our neighbouring municipalities' fire station response areas. For example, in an area of Pickering where Ajax can respond more quickly, the City has an automatic aid agreement so that Ajax Fire Services are dispatched automatically. This is one example of the operational efficiencies which Pickering has already created through its mutual aid agreements with neighbouring municipalities. • 155 FIN 20-15 July 6, 2015 Subject: Regional Fire Services Study Page 3 Current Shared Services Pickering Fire Services currently has several shared service agreements with other municipalities. These Agreements include: 1. Durham Region Mutual Aid Agreement: all eight local Durham municipalities participate in the Durham Region Mutual Aid Plan. This Plan requires each municipality to assist the others during a fire emergency when its own resources have been exhausted. 2. The five lakeshore municipalities each have an Automatic Aid agreement in place for responses to Highway 401 in order to provide a more efficient response to border incidents between on-ramps. A similar agreement will be put in place for highway 407 when the section east of Brock Rd. is opened. 3. In October 2014, the new NexGen radio system went live throughout the Region. This system permits full communications interoperability among the local municipalities and the Region Fire and Police Services. The operating costs of this new system are shared among the municipalities and the Region, thereby saving each municipality money. 4. Dispatch was transferred to Ajax in 2010, and we now share dispatching services with Ajax Fire and Emergency Services ("AFES"). 5. Fire Services currently has an Automatic Aid Agreement for an area of Pickering (Westney Rd. and Hwy. 7 area) with AFES. AFES automatically responds to calls with PFS in the defined auto aid area. 6. A Mutual Aid Agreement between Pickering Fire Services and Toronto Fire Services was recently finalized. This will allow the City to share resources with the largest Fire Service in Canada. Efficiency Issues with Municipal Amalgamation The Fraser Institute in its study entitled "Municipal Amalgamation in Ontario" noted that the amalgamation of larger cities did not achieve cost savings. The study suggests that efficiencies are available at the local level when pursuing shared service agreements such as those negotiated by the various Durham Fire Services. The report also noted that when rural areas are amalgamated with urban areas, rural residents begin to demand more urban services and this drives up costs. There are a number of efficiencies that have already been gained through existing shared service agreements among the eight local Durham municipalities. Further opportunities are achievable in the future through agreements with Markham Fire Services and Stouffville Fire Services. 156 FIN 20-15 July 6, 2015 Subject: Regional Fire Services Study Page 4 Municipal Performance Measurement Program - Comparison Of Fire Activity/Statistics Please find below a comparison of fire activity based on the number of residential structural fires per 1,000 households. Number of Residential Structural Fires per 1,000 Households 1.8 1.6 1.4 1.2 1 -- A\01111111.1 ..�lalWi 0.8 ■Nirpolis- • 0.6 0.4 0.2 0 2010 2011 2012 2013 • ••••Ajax •4100Clarington Ammirm,Oshawa Pickering ••••■Whitby As the above chart indicates, during the last four years, Pickering has had the lowest number of residential fires among its Durham Lakeshore neighbours (Source BMA: Municipal Study). The lower activity level indicates to some degree that the City's fire prevention program is working and from a fire amalgamation perspective it indicates that Pickering's current level of residential fire activity does not need nor warrant any additional service level changes. Additional Cost to the Pickering Residential Taxpayer The Durham Region property tax levy shifts from year-to-year based on the relative rate of phase-in change for property classes such as residential and property experiences in relation to the overall rate of change across the Region. This is due to the fact that the Region balances its levy based on its entire assessment base, so the balancing is sensitive to the overall or average rate of (weighted) assessment change. Properties increasing above the Regional average home value, will take on or pay additional Regional taxes. Properties that are below the Regional average home value, will contribute or pay less of the Regional levy each year. Pickering homes on a whole, experience a rate of assessment increase that exceeds the Regional average or Regional average home value and therefore, Pickering taxpayers pick up an increasing amount of the Regional levy each year. 157 FIN 20-15 July 6, 2015 Subject: Regional Fire Services Study Page 5 The assessment values used for property taxation purposes is based on a market valuation date of January 1, 2012. (The market valuation date is simply defined as — what your property would be worth based on an arms length transaction between a willing buyer and seller on a specified date.) The current market valuation date is used for the 2013 up to and including 2016 taxation years (four year cycle). The next market valuation date will be January 1, 2016 and this date will be used for 2017 up to and - including 2020 taxation years. Table One below provides a current snapshot of the residential home price changes for Durham Lakeshore Municipalities. • Table 1 Composite Housing Price Index: 2012 vs. Current January, 2012 May, 2015 Change $ Change % Pickering 350,900 466,700 115,800 33.00 Ajax 340,500 431,700 91,200 26.78 Whitby 331,700 438,900 107,200 32.32 Oshawa 239,500 301,300 61,800 25.80 Clarington 253,900 337,500 83,600 32.93 Source: Toronto Real Estate Board Home Price Index . In reviewing the above table, Pickering house values are increasing in relation to its lakeshore neighbours. If these value change patterns continue, Pickering residents will pay more towards the Regional levy than currently. In its simplest term, this means that Pickering residents will continue to contribute and contribute more towards the Regional levy for the next reassessment cycle. Senior city staff are concerned that the current allocation method of regional costs based on assessment fails to take into consideration the real estate affect of Pickering's geographical position in relation to Toronto and the corresponding assessment/house price impact. In other words, the current Region allocation model needs to be reviewed and revised. Summary Pickering Fire Services has the following positive qualitative factors: • Pickering's apparatus and equipment inventory is up to date and in very good condition. • Pickering's fire staff are well trained and experienced and are familiar with the City to provide a high level of service to our residents. • Our fire services staff are well engaged in the community and provide a very broad range of excellent services. • 158 FIN 20-15 July 6, 2015 Subject: Regional Fire Services Study Page 6 • Senior City management have developed a good relationship with the Pickering Professional Firefighters' Association, and Pickering was one of the first to come to an Agreement on the 24 hour shift. At this current time, there are no visible positive benefits for amalgamating fire services from a service level or cost perspective. Recommendation two reflects currently known information and is based on the best interests of the Pickering resident and taxpayer. Attachments: None Prepared By: Ap• • ed/Endorsed By: Stan Karwowski Paul :ig`In Division Head, Finance &Treasurer Directs r, 'orporate Services & City Solicitor Approved/Endorsed By: • (-. 9-6 John Fire Chief Recommended for the consideration of Pickering City Council 1/2 (' Zoe Tony.Prevedel, P.Eng. Chief Administrative Officer 159