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FINANCIAL STATEMENT Under the new agreement the VA would pay the City of Livermore a total amount of $1,466,244 in the first year of the agreement, with annual escalations of five percent in each extension year. The first-year total includes a base annual amount of$764,244 for services provided by three LPFD firefighters, split evenly between the Cities of Livermore and Pleasanton, of which Pleasanton will receive $382,122. The first year also includes payment of$702,000 for the full cost of a fourth firefighter per shift (equivalent to three full-time employees), costed entirely to Livermore. BACKGROUND Prior to 2012, emergency services and fire protection for the VAMC in Livermore were provided by the Alameda County Fire Department (ACFD). This service was primarily provided from ACFD's Station 8 located on College Avenue in Livermore with LPFD providing assistance when requested via an Automatic Aid Agreement with ACFD. In 2012, ACFD relocated Station 8 personnel to the Lawrence Livermore National Laboratory necessitating the need for the VA to contract with the closest emergency and fire protection provider, which is LPFD. The most recent contract with the VA for LPFD to provide emergency services and fire protection to the VAMC was executed in October 2018 for one year of service with four one-year extensions that would automatically be implemented unless otherwise notified by the VA. In exchange for services, the VA paid the City of Livermore a base annual amount of$1,175,506 in year one of the previous contract, with an annual escalation of five percent each extension year. The base annual amount reflects services provided by a team of three firefighters working in three shifts and is split evenly between the Cities of Livermore and Pleasanton per a revenue sharing agreement last executed in December 2018. Under the 2018 revenue sharing agreement, which was approved by the Pleasanton City Council pursuant to Resolution No. 19-1072, the City of Livermore also agreed to fund the full cost of a fourth full-time employee (FTE) firefighter per shift, which adds an additional 3.0 FTE firefighters to the total contract cost (3 shifts x 1.0 additional FTE per shift). Livermore receives 100 percent of the additional funding provided by VAMC to cover the cost of the fourth firefighter. DISCUSSION Under the proposed contract for emergency and fire protection services for the VAMC in Livermore (Exhibit A to Attachment 1), LPFD responds to the reports of fire and other emergencies with units from both Livermore and Pleasanton. To split the revenue received under the VA contract, the cities have utilized a Revenue Sharing Agreement (Exhibit B to Attachment 1) and LPFD is requesting approval to execute both the contract with the VA and the associated revenue sharing agreement that reflects the new contract terms. The proposed contract with the VA for LPFD to provide emergency and fire protection services to the VAMC in Livermore calls for one year of service with two one-year Page 2 of 3