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THE CITY OF 11 CITY COUNCIL AGENDA REPORT pLE ASANTON April 16, 2019 Finance TITLE: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AN UPDATED REVENUE SHARING AGREEMENT WITH THE CITY OF LIVERMORE RELATED TO PROVIDING FIRE PROTECTION SERVICES TO THE DEPARTMENT OF VETERANS AFFAIRS LIVERMORE MEDICAL CENTER SUMMARY In October 2012, City Council authorized a contract with the Department of Veterans Affairs (VA) for the Livermore-Pleasanton Fire Department Joint Powers Authority (LPFD JPA) to provide emergency services, including fire protection, to the Veterans Affairs Hospital (VA Hospital) located in Livermore. The contract generated a total of $4.3 million for the Cities of Livermore and Pleasanton, which was split evenly between the two Cities in accordance with a Revenue Sharing Agreement signed in December 2012. An Agreement to extend the VA Hospital contract through April 30, 2023 was executed in May 2018. In August 2018, the VA contacted LPFD JPA staff requesting a 4th Firefighter be added to the initial response company serving the VA Hospital. The VA agreed to pay for the personnel costs associated with this request. As the personnel costs associated with the 4th Firefighter will be borne solely by the City of Livermore, the proposed Revenue Sharing Agreement between the City of Livermore and the City of Pleasanton reflects the City of Livermore receiving 100% of the additional VA Hospital funding for that 4th Firefighter. RECOMMENDATION Adopt the attached resolution authorizing the City Manager to sign an updated revenue sharing agreement with the City of Livermore related to providing fire protection services to the VA Hospital. FINANCIAL STATEMENT In return for contract services, the VA pays a base annual amount of $967,092 in the first year with annual escalations of 5% in each extension year. These monies are currently split evenly between the Cities of Livermore and Pleasanton per a revenue sharing agreement signed between the two cities in December 2012. The proposed updated Revenue Sharing Agreement between the two cities continues to provide an equal split of these revenues. As noted above, the City of Livermore will receive 100% of the additional funding for the 4th Firefighter.