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01-16-1996 (City Council) Agenda Packet AGENDA WYLIE CITY COUNCIL WORKSESSION Wylie Municipal Complex January 16, 1996 7:00 p.m. CALL TO ORDER WORKSESSION 1. Discuss and Review Ambulance Contract Proposals 2. Discuss and Review Park Master Plan 3. Discuss Plans and Procedures for Future Annexations STAFF REPORTS CITIZEN PARTICIPATION ADJOURNMENT Posted on this thel2th day of January, 1996 at 5:00 p.m. THE WYLIE MUNICIPAL COMPLEX IS WHEELCHAIR ACCESSIBLE. SIGN INTERPRETATION OR OTHER SPECIAL ASSISTANCE FOR DISABLED ATTENDEES MUST BE REQUESTED 48 HOURS IN ADVANCE BY CONTACTING THE CITY SECRETARY'S OFFICE AT 442-8100 OR TDD 442-8170 Memorandum From the Office of the City Manager DATE: January 15, 1996 TO: Council Members FROM: Mike Collins, City Manager RE: Work Session- January 16, 1996 There are three subject areas that are on the agenda to be discussed at work session. A summary of issues to be presented has been prepared for each of the items. AMBULANCE CONTRACT We only received one bid proposal and that was from Central Ambulance Company. The other potential bidder that we had discussions with,Rural Metro,made a determination that they could not submit a competitive bid. I met with them on Thursday afternoon to determine why they did not submit a bid proposal. The company representatives, which included the Dallas area General Manager, talked about three specific reasons. They believe that the current service provider was at a competitive and financial advantage because they already had land and a facility. Also, they had already established an operating revenue cash flow from the service area surrounding the City of Wylie proper. These factors, coupled with what they believe to be a short contract period, would not allow the company to recover its up-front start up costs necessary to deliver this service. The company gave every indication that they would bid again in two years. Focusing now on the bid that we received,the conclusion of staffs initial analysis is that the subsidy proposed by Central Ambulance should be negotiated to a much lower rate. The attached table illustrates Central's proposal. The table also illustrates two suggested methods from which a different subsidy level could be calculated. There is an argument that would support a subsidy level that is in direct proportion to the amount of revenue generated in Wylie. This would directly relate the amount of investment that Central claims is necessary to operate a system in Wylie or annual cost per unit hour and the amount of revenue generated in Wylie. An even stronger argument should be made that the amount of subsidy paid should be solely based on a per capita basis. This position is supported by the fact that when the ambulance company calculates its annual unit hour costs of operations, these figures are not based on the call load, but on the size of the service area and the population. The City Staff's negotiating position with Central will be that the City's subsidy level should be zero,based on the figures we have represented on the attached table. The subsidy level negotiated with Central will be presented to City Council on Tuesday night. It is recommended that the issue of whether or not facilities will be modified or newly constructed, and at what cost, should be considered after an agreement is reached regarding the base service subsidy. The City Council has several options regarding this process. The Council can continue to direct staff to negotiate until an agreement is reached on an acceptable subsidy level,or the Council might agree the subsidy level as proposed, is acceptable, realizing that in two years we could issue a modified RFP and start the process over. Also, the City Council could reject this bid and start the process over. If Council elected to to this, several changes to the RFP could be considered. For example, the contract period could be lengthened,maybe five years,to allow capital costs to be recovered over a longer period of time. The contract could be structured as"performance-based", in which the only specifications included would be the response time and back up ambulance response time. This would allow the contractor to locate the ambulance station in any area it chose. Staff at this time will be negotiating with Central Ambulance on Monday afternoon. Our primary objective is to negotiate the best deal possible under the specifications of the Request for Proposal. Our hope is to make this process work and not have to rebid. We could not have anticipated, based on the active involvement during this process by Rural Metro, that we would receive only one bid. A respectful reminder to Council that this information is proprietary and should be kept confidential. PARKS AND OPEN SPACE MASTER PLAN Through a series of public hearings and meetings,the Park Board has identified goals and objectives which have guided the development of the Parks and Open Space Master Plan. As stated in the Executive Summary of the Plan: The Parks and Open Space Master Plan for the City of Wylie is a long range guide to the development of a park system capable of supporting the expected recreational needs for the community as it approaches its ultimate population. This is the initial plan prepared by the City to address the immediate and long-range needs of the City for recreational facilities. The January 15, 1994 election approving the '/2 cent sales tax for parks, recreation, and library projects made funding available for the first time which enabled the City of Wylie to invest in its park and recreational infrastructure. The development and approval of the Parks and Open Space Master Plan will provide the Park Board, the Parks and Recreation Facilities Development Corporation and the City Council the information necessary to effectively plan and make decisions regarding the future of park and recreational facilities in Wylie. J. T. Dunkin of J.T. Dunkin and Associates will be at the Council's Work session to present the Plan. Particular components of the Plan to be reviewed include the Needs Assessment and the Goals and Objectives, both of which help determine the needs for space and facilities in our park system for the short- and long-term forecast. PLANS AND PROCEDURES FOR FUTURE ANNEXATIONS Annexations which have recently come before the Council generated discussion which centered on specific issues for the individual parcels under consideration. Staff has identified some general annexation policy and procedure issues for the Council's review. Questions that any city should consider with regard to annexations include: - When is the right time to annex a given property? - How much area should be annexed? - Should consideration be given to the establishment of logical boundaries? How does the city weigh the service plan requirements of the provision of the minimum amount of services needed to meet the existing needs of the property versus what will the ultimate expenses be if and when the property develops to its highest and best use? To some degree, the State law addresses these questions, i.e., limiting the amount of land a city may annex per year and providing for minimum requirements for the provision of services. However, the policy decisions are still in the hands of the local government. Annexation allows a city to extend municipal services, regulations, voting privileges and taxing authority. By doing so, the city may protect the health and welfare of its citizens, and logically regulate the growth of the area through the implementation of the Comprehensive Plan and the Capital Improvement Plan. By considering the desired end result, cities can begin to answer some of the questions listed above. If a goal is to logically regulate the growth of an area, consideration needs to be given toward identifying logical boundaries which will permit future land use and infrastructure development. Although it is difficult to predict when an area will develop and when infrastructure improvements will be needed, it is much easier for cities to work with undeveloped property than it is to inherit non-conforming land uses and construction which would not meet minimum city code. STAFF ANALYSIS SUMMARY CENTRAL MAINTAINS IN IT'S PROPOSAL: Annual Unit Hour Costs (Service Area)* $ 478,445 Revenues/% Generated (Service Area) $ 300,964 - 100% Wylie Only 199,521 - 66.3% All Other 101,443 - 33.7% CENTRAL PROPOSES IN IT'S PROPOSAL: Subsidy Paid by City of Wylie $ 142,900 STAFF SUGGEST THAT: Annual Unit Hour Cost Attributed to Wylie Based on% Revenue Generated $ 318,963 Revenue from Wylie ( 199,521) Subsidy Required from City $ 109,442 Population Service Area 24,800 Wylie at 9,600 (39%) Annual Unit Hour Cost Attributed to Wylie Based on% Population $ 186,593 Revenues from Wylie ( 199,521) Subsidy Required from Contractor $ 12,928 * Service Area Comprised of Wylie, Sachse, Lucas, Murphy, Parker and County which totals a population of 24,800