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HomeMy WebLinkAbout1996 04 08 Regular Item C ;., ~OMMISSION AGENDA ITEM c REGULAR X CONSENT INFORMATIONAL Meeting MGR IlrJt'f IDEPT --.!)~ Authorization / 8 April 1996 REQUEST: The Fire Department requesting the City Commission review the staffs response to the "ANAL YSIS OF COST ESTIMATES FOR EMERGENCY MEDICAL TRANSPORT - CITY OF WINTER SPRINGS, FLORIDA - FIRE DEP ARTMENT PROPOSAL" Prepared for: Lifefleet Atlantic Ambulance Service~ by: Fishkind & Associates, Inc.. PURPOSE: The purpose of this item is to assure that the City Commission is informed of all the pertinent details regarding this issue, and to provide the Commission with information prepared by the Department in response to the Fishkind report. CONSIDERATIONS: · This Commission item is needed to respond to a recently published Transportation Cost Model prepared by Fishkind & Associates, for Lifefleet Atlantic Ambulance Service that is being distributed to local governments by Lifefleet. · The Fire Department intends on keeping the City Commission informed of all information relative to this issue, and to insure that the financial safeguards that were enacted with City Ordinance # 613 are strictly adhered to. o The Fire Department has been providing Emergency Medical Services to the Citizens of this community since 1974. · The Fire Department has been providing Transport Services since January 15, 1996. Atlantic Lifefleet Ambulance provided Transport Services to the City from January 1991 to January 15, 1996. o The Fishkind report maintains that the City understated the full cost of providing transport services as a result of the City utilizing incremental cost rather than a full cost methodology. ~ · Attachment "B" reveals that the actual impact on the Fire Department budget since assuming the transport services on January 15, 1996 is an additional $15.97 per transport. Based upon a conservative collection rate of 50% ofthe transport fee of$184.63, the Department will receive a net increase in revenues of$76.35 per transport. The yearly projected net revenue for the transport service is $58,022.20 based upon a 50% collection rate and a total of760 transports. ISSUES: · Is there excess capacity in the Winter Springs Fire Pepartment as stated in the Fishkind Report? Staff agrees that the Winter Springs Fire Department has excess capacity when excess capacity is defined as resources that can be applied to other activities without affecting the level of service of the organization. Staff does not agree with excess capacity as used in the Fishkind Report since the Fishkind Report fails to articulate the prohibitions on the reduction of service levels in their utilization of the concept of excess capacity. Fishkind's use of the excessive capacity concept suggest that the excess capacity could be eliminated without resulting cost. This is not true in Winter Springs since none of the excess capacity available for transport services can not be eliminated from the Fire Department budget without corresponding reduction of service levels. · Are the incremental costs provided by the City accurate? The Fishkind Report states that the incremental costs prepared by the City "are a reasonable basis for estimating the incremental cost". Staff agrees with the Fishkind Report. · Was the City's cost analysis compiled on the basis of a "full cost" model? The Fishkind report states that the City's analysis of cost was provided on the basis of incremental cost rather than a full cost basis. Staff agrees with the Fishkind report. Staff never represented that its analysis was based upon a "full cost" cost model. However, staff does not agree that a "full cost" model is applicable to the question of whether the City should take over emergency transport. Although the "full cost" model presented in the Fishkind report is an interesting academic exercise, it does not address the real issue involved in the questions of the feasibility of the City taking over emergency transport. If the issue was something similiar to "would it be more cost effective to utilize the excess capacity in the Fire Department to perform expanded fire prevention activities or to maintain fire hydrants" a full cost model would probably be more applicable. There are many different cost models. The desired cost model should be the model that best addresses the issues confronting the decision makers. An "incremental" type cost model is more applicable to the issues involved in the question of the feasibility of the City of Winter Springs taking over emergency transport, than a full cost model. Staff believes the more pertinent issues in this question are as follows: 1. Can the City provide an equal or higher level of service? The actual experience to date reflects that the time between the initial call for help and the initiation of transport has decreased since the City began providing emergency transport. On average Lifefleet arrived on the scene in 8 minutes, the City's service arrives in less than 5 minutes. 2. Can the City provide an equal or higher level of service without an any additional cost to the taxpayer? Experience to date reflects the out of pocket cost to the citizen has decreased from an average of$325.00 (information provided by Seminole County) per call from Lifefleet to $184.63 from the Fire Department. This has resulted in a net savings of$140.37 to the customer. 3. Can the City provide an equal or higher level of service to the taxpayers at no additional cost and without the need to add additional tax dollars to the Fire Department budget to provide these services? Actual experience to date demonstrates no additional tax dollars being required to fund these services, and a net revenue to the Department of$76.35 per transport based upon a 50% collection rate. CONCLUSIONS: 1. There are many different cost models. The desired cost model should be the model that best addresses the issues confronting the decision makers. An "incremental" type cost model is more applicable to the issues involved in the question of the feasibility of the City of Winter Springs taking over emergency transport, than a full cost model. 2. Experience to date indicates that the feasibility projections of the City were valid. 3. At the point in time when cost analysis suggests that the private sector can provide an equal or higher level of service, at a lower out of pocket cost to the customers and the City, the City will look positively toward privatizing emergency transport services again. )' .. FUNDING: No additional funding is requested. RECOMMENDATION: The Commission accept this report and provide additional direction the Commission deems necessary. ATTACHMENTS: Attachment "A" - ANALYSIS OF COST ESTIMATES FOR EMERGENCY MEDICAL TRANSPORT - CITY OF WINTER SPRINGS, FLORIDA - FIRE DEPARTMENT PROPOSAL. Attachment "B" - Fire Department Transport Report dated 1 April 1996 COMMISSION ACTION: Attachment "A" EiSHKiND & ~IATES EII'E'" ., w..... .,~ . ~: ~ ':'>~"t ..,~ ~t:: . <:' ~~':~ , -,., . ':. . -~ ~'."'.."" '.0... J:;: ANALYSI.S OF COST ESTIMATES FOR EMERGENCY MEDICAL TRANSPORT CITY OF WINTER SPRINGS, FLORIDA FIRE DEPARTMENT PROPOSAL PREPARED FOR: L1FEFLEET ATLANTIC PREPARED BY: FISHKIND & ASSOCIATES, rNC. 12424 RESEARCH PARKWAY, SUITE 275 ORLANDO, FLORIDA 32826 407 -382-3256 MARCH 6, 1996 ~~ . Research Parkway. Suite 275, Orlando, Florida 32826 . (407) 382-3256 . FAX (407) 382-3254 ATTACHMENT "A" . f . f -: EXECUTIVE SUMMARY ANALYSIS OF COST ESTIMATES FOR EMERGENCY MEDICAL TRANSPORT CITY OF WINTER SPRINGS (1) Incremental cost per transport will be $342 per trip not $185 per trip Winter Springs reports that the cost per transport will be $184.63. However, this estimate understates the true costs to the City. The estimate fails to account for overhead, fringe benefits, retirement costs, maintenance, and operating costs. Furthermore, even this estimate of $342 is low because it does not count the costs of using excess capacity in the Fire Department. (2) Revenue shortfall will range from $91,000 to $101,000 per year With revenues at $185 per trip, the City's transport service will generate substantial losses which the tax payers of the City will have to make up. The tax payers would be better off without the City providing transport. (3) County subsidy not accounted for by the City Presently, Seminloe County and the City have a mutual aid compact. Each helps the other with first response to an emergency call so as. to provide excellent response times and service. However, if the City provides transport, its rescue units will be otherwise engaged. This will force the County to provide more responses. (4) Full cost of City Transport will be over $1,357 per trip. The estimated cost per trip of $342 is an incremental costs which assumes that the excess resources in the Fire Department are employed at no cost. When the cost of using these excess resources is included, the true full cost to the City's transportation city will be $1,357 in 1996. (5) Methodology and data sources A nationally recognized cost accounting model developed by the American Ambulance Association was used to estimate the full costs of providing transport service. The model was calibrated using data provided by the City or taken from the City's 1995/96 budget. 1 ATTACHMENT "A" . . -: ANALYSIS OF COST ESTIMATES FOR EMERGENCY MEDICAL TRANSPORT CITY OF WINTER SPRINGS 1.0 Introduction LifeFleet Atlantic requested that Fishkind & Associates, Inc. conduct an independent and unbiase.d analysis of the City of Winter Springs, Florida, to provide emergency medical transportation services. Or focus is strictly on the cost and revenue estimates developed by the City. We have not examined the ability of the City to perform the services It intends. to provide, projected response times, or examined the related operational Issues. Fishkind & Associates, Inc. are independent economic and financial consultants. We have no other connection with LifeFleet Atlantic other than this assignment. We are being paid $500 for this report and will be compensated on an hourly basis for consultations and presentations. All of the data and assumptions used in this report are provided herein. The model used to conduct the analysis was developed by Arthur Andersen LLP for the American Ambulance Association, AAA, and is in the public domain. We believe that our results are conservative and can be readily replicated using the model. To the maximum extent possible, the data uses here were either provided by the City or available through the City's budget. Whenever this in not the case, the sources and assumptions used herein are clearly discussed. 2.0 Methodology To evaluate the cost estimates for the City of Winter Springs to provide emergency medical transportation services, Fishkind & Associates, Inc. used a cost accounting model developed by Arthur Andersen, LLP for AAA. The model is contained in a detailed computerized spreadsheet. This model provides a detailed framework for exploring full costs, both direct and indirect, of providing emergency medical transportation services. 2 ATTACHMENT "A" . . The AAA model was developed by Arthur Andersen LLP, and it was extensively reviewed by Professor Charles Horngren. Professor Horngren is the Edmund W. Littlefield Professor of Accounting at Stanford's Graduate School of Business. He concludes that the AAA model is the appropriate model for analyzing the cost of providing emergency medical transport services like to proposed by Winter Springs. Fishkind & Associate"s, Inc. calibrated the AAA model using the information provided by the Winter Springs Final Budget Fiscal Year , 1995/96 for the Fire. Department, and with information provideq by Fire Chief Lallathin, of the Winter Springs Fire Department. 3.0 Cost Analysis of Winter Springs to Provide Emergency Medical Transportation Services According to the Chief Lallathin, of the Winter Springs Fire Department, it stated it could provide quality emergency medical transportation services as follows: Cost per transport $184.63 (all inclusive) Additional Manpower o Additional Equipment 2 ambulances (already purchased) Uncollectable accounts 25% Billing Fee $9 per transport We have analyzed these data developed by the City. Generally, they are a reasonable basis for estimating the incremental costs to the City. However, this is not a suitable basis for determining the full costs to the City for prov}ding emergency medical transportation services. The City's estimates must be considered only an incremental cost analysis because their estimate assumes that the existing Fire Department has .excess human and physical resources to contribute to the transport program. Such resources are not without costs. 3 ATTACHMENT "A" , , 4.0 Results of the Analysis of the City of Winter Springs Cost Estimates for Providing Emergency Medical Transportation Services (1) True Incremental Cost Per Transport $342 not $185 Using the AAA model and the assumptions provided by the City as described above, the true incremental cost of providing emergency medical transportation services is estimated to be not $184.63 per transport, as the City has estimated, but $342 per transport for the first. year. The City's estimates understate the indirect costs for the operation. The City has probably calculated the direct salary costs for their personnel fairly accurate, along with the costs of pension benefits, overtime, and expenses for continuing education of the staff. A sum!TIary schedule developed from the AAA model is included in Appendix 1. This provides the details of our analysis based upon the City's basic assumptions. Finally, it is important to note that this in only an incremental cost analysis. The full cost is actually much higher when the costs associated with utilizing the Fire Departments excess resources are included. A full cost analysis is provided in Appendix 2. (2) Subsidies Will Exceed $89,000 Per Year The expected revenues flowing to the City from providing transportation services are estimated to be about $140,000 per year initially and will rise to over $276,000 by the year 2000. However, total costs will initially exceed $194,000 and rise to almost $306,000 by the year 2000. As a result, there will be an estimated deficit of almost $89,000 initially. This deficit will jump to just over $98,000 by the year 2000. Over the first five years of operation, the transportation service will likely cost the taxpayers of Winter Springs almost an extra $474,000. Thus, the tax payers of Winter Springs would be better off if the City does not enter the emergency medical transportation business. (3) Subsidies From Seminole County Not Included The estimates provided here are conservative. The true deficit will be higher than estimated here. The main reason is that there is a hidden subsidy to Winter Springs if it provides emergency medical transportation services. The City has a mutual aid pack with Seminole County for 4 ATTACHMENT "A" emergency medical services. When there is a call in the City, the City's EMS units provide the first response. If a City unit is on a call and another City unit is either unavailable or too far away, then a County unit is dispatched. Winter Springs has commenced transporting victims. In doing so, that City unit will be out of service while it is transporting the patient. Transportation and follow-up will likely take the unit out of service for approximately 60 minutes. This will place a greater burden on the remaining City units and will result in a higher probability that .a County unit will be called to provide service to a City resident. Since the County does not charge for such first response service to the City under the current mutual aid compact, the City receives a subsidy from the County when the City unit is on a transport and the County must respond. Depending upon the transportation load the City experiences, the County may be required to add resources to meet the augmented service calls. This cost has not been included in the analysis presented here. . (4) Cost Estimates Provided are Only Incremental Costs Not Full Costs for the Service The cost estimates presented in this report are based upon the City's estimates of how it will staff its transportation service. The City claims it can provide full service with existing staff, along with two transport vehicles. This is insufficient to staff an emergency transportation service 24 hours per day, 365 days per year. This means that the City will rely on its excess capacity in the Fire Department to provide much of the transportation related resources necessary to staff and equip a full-time emergency transportation service. On a stand alone basis, a full-time emergency medical transportation service would likely require a staff of 12, with two ambulances. Appendix 2 provides a summary analysis of such a service using the AAA model. The cost per transport would exceed $1,357 on a full cost basis, based upon the City's expected level of transportation requirements. Clearly, this would not be cost effective. However, it does reflect the full costs of such a service were it not for the existing capacity in the Winter Springs Fire Departm-ent. 5 ATTACHMENT "A" Finally, it is useful to observe that many fire departments across the U.S. have significant excess capacity. This is largely the.result of less need to suppress fires because of improved building design, better building materials, and increasing use of sprinkler systems. Fac~d with excess capacity, fire departments can either down size or search for new missions. Many departments have focused on emergency medical transportation as one way to absorb their excess capacity. However, it must be emphasized that employing excess capacity in this way does not mean that the use of such resources is free. To the contrary, it can be very expensive, as pointed out in this report. . 6 ATTACHMENT "A" APPENDIX 1 AAA MODEL ANALYSIS OF PROPOSED . EMERGENCY MEDICAL TRANSPORTATION BY THE CITY OF WINTER SPRINGS, FLORIDA ATTACHMENT "A" WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS REVENUE, EXPENDITURES, PROJECTED PROFIT OR SHORTFALL, AND BREAKEVEN ANALYSIS REVENUE: Schedule Flscel Yeer Fiscal Vear Fiscal Vear . Fiscal Vear Flscel Vear Reference 1996 1997 1998 1999 2000 Total Gross Revenue from Transports A $140,319 $ 166,208 $ 196,873 $233,196 $276,221 $1,012,816 Uncollectable Amount A (35,080) (41,652) (49,218) (58,299) (69,055) (263,2041 Additional Annual Revenue - Nontransport A 0 0 0 0 0 0 Net Revenue A $105,239 $ 1l.1.656 $147,655 $174,897 $ 207 ,165 $ 7.59,6 12 EXPENDITURES: Direct Costs: Salaries, Benefits and Continuing Education 8 $ 105,209 $119,011 $134,632 $162,316 $172,332 $ 683,4 99 Ambulance and Ambulance Replacement C 19,600 19,600 19,600 19,600 19,600 98,000 Fleet Maintenance D 19,873 23,061 26,842 31.370 36,786 137,920 Medical Equipment and Supplies E 15,560 17,296 18,809 20,660 22,663 94,767 Vehicle Uabllitv Insurance F 10,000 10,500 11,025 11,576 12,166 65,266 8illing Out source Services G 6,840 8,269 9,973 12,043 14,641 61,656 Other Direct Costs H 0 0 0 0 0 0 Total Direct Costs $ 177 ,082 $197,716 $220,881 $247,464 $277,966 $1,121,098 Indirect Costs: Total Indirect Costs 17 ,708 19,772 22/088 24,745 27,797 112,110 Total Costs $194,790 $217,487 $242,069 $272,109_ $306,763 !',233,208 PROJECTED PROFIT (SHORTFALL) ($89,661} ($ 92"!!';!?J ($96,316) ($97 ,302) ($98,6971 ($473,6961 8REAKEVEN ANALYSIS: Gross Revenue per Transport to Recover Costs J $342 $332 $322 $314 $307 $321 ;x:. ~ ~ ;x:. C") :::r:: 3:: fTl :z ~ 03/08/96 FISHKIND & ASSOCIATES, INC. USING AAAMODEl1 Page 1 = ;x:. :x:- -I -I :x:- C) :::c 3:: IT1 ::z: -I 03106/S1 e = :x:- filu'Y,.. 1810 lUll IUO uSIa 2000 r"'O.-.I\" '1~.701 '1'1.011 '134.0:12 '162,:115 .. n .3':U H., lncon'f Usa 41651.551) 1191 tl92.0J2) U!)O 1'9~.:J15) 1999 Ct91.3021 2000 IUO.5111 0,,.... DII,e., U1.613 t10.1~ tUG.2U U5.13t . '05.634 ~~.ct. eI),JOO '11,112 122,OU8 124,10 U1,181 " .n ! .", .;us -Ill PROJECTED SHORTFALL .... ,.., "" >000 "" WINTfR SPRINOS FIRE DEPARTMENT INCREMENTAL COST flASIS PROFIT OR laSS ANALYSIS FISCAL YEARS 1996.2000 fl9l"1'40 a ASSOCLATES. t~. USf.IQ AAAMOOEL 1 ,.... I WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS )::> -l -l )::> n :c 3: IT1 ~ 03/08/96 GROSS AND NET REVENUE = FISHKIND & ASSOCIATES, INC. USING AAAMODEL1 )::> Page 1 WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS GROSS REVENUE PER TRANSPORT Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 1996 1997 1998 1999 2000 Base Rate per Transport $184.63 $190.17 $195.87 $201.75 $ 207 .80 Other 0.00 0.00 0.00 0.00 0.00 Subtotal: $184.63 $190.17 $195.87 $201.75 $207.80 Mileage: Rate Charged/Mile $0.00 $0.00 $0.00 $0.00 $0.00 Average Miles per Transport 4.0 4.0 4.0 4.0 4.0 Subtotal: Mileage Charge $0.00 $0.00 $0.00 $0.00 $0.00 Total Gross Revenue per Transport $184.63 $190.17 $195.87 $201.75 $207.80_ )::> ---j ---j )::> n :r: 3: /T1 ~ 03/08/96 FISHKIND & ASSOCIATES, INC. USING AAAMODEL1 Page 1 - )::> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS SALARY, BENEFITS AND CONTINUING EDUCATION COSTS Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Position 1996 1997 1998 1999 2000 (Sch.8-1) (Sch. B-2) (Sch. B-3) (Sch. B-4) (Sch. B-5) Ad ministra tive/Support Support Position 1 $0 $0 $0 $0 $0 Support Position 2 0 0 0 0 0 Support Position 3 0 0 0 0 0 Firefighter IParamedic: Level 1 105,209 119,011 134,632 152,315 172,332 Level 2 0 0 0 0 0 Level 3 0 0 0 0 0 Level 4 0 0 0 0 0 Level 5 0 0 0 0 0 Total Personnel Costs $105,209 $119,011 $134,632 $152,315 $172,332 )::. -i -i )::. n :c 3: rr1 ~ 03/08/96 FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 Page 1 - )::. WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS '.....on Suppan Poahlon 1 Suppan POlhloo 2 &"ppon Poahlon :I fh.UOhl.'/P....nedlc: hw'" It....a 2 by" 3 levul4 hn'& )::> -l -l )::> n :c 3: rr1 :z -l 03108/98 = )::> 111 Ho<.wly R.', '25.00 21.00 ~1.00 12.00 13.00 116.6-0 ".50 11.50 SALARY, BENEFITS & CONTINUING EDUCATION COSTS 1996 121-1.5.tll 131 151-131'~ 181 111-131'\4 181-131'14 181-181+111+1.1 1101 tllI-121'll01 1121-131+ 141 + 151+ 101 + I 1131 Ow-wtlm. 141 fUA Total W.n-..... "-tlfe, 1..., R......od T.... lola' COlli lalary, he" R... T..., 'anme4lo O'l.-,Imo Huhh Comp. 8Wl.It,. ."".f1t. He",,, .1 Coni. Ed. P'Umlunt, OT. H., .f 160% S"lty 'umJurn 1614 ~ -!!... 814 COil Cont. Ed.IV.., C.... Sandhi" Coni. Ed. flE. nJ. '62.000 n/. nJ. '1.600 13.8.0 13.1~0 18.280 nJ. nJ. 1110.280 nJ. .3.800 nJ. nJ. 1.500 3.06. 2.8~1 7.11. nl. nJ. 50..50 nJ. 43.880 nI. nJ. 1,500 3,06. ~..21 1.11. nJ. nJ. 50.060 '..00 36..00 3.lKlO 6,310 1.600 ~.612 ~.163 8.104 76 1.360 62.806 1..60 38,810 3.lKlO 6,1ti3 1.600 ~.12' ~.3n ..663 16 1,'.3 6..63. :n.~6 48.346 3.lKlO 8..60 1,600 3.24' 2.1.' 1.625 16 1,1.. 8..313 ~'.16 ,U,336 3.lKlO 1.302 '.600 3.463 2,980 1.... 16 1..68 10.308 28.26 62.325 3.lKlO 7.1" 1.600 3...3 3.130 ..302 16 I.... ".240 flSIIKIND 6 ASSOCIATES. INC. US&NQ AAAMOOEll 0.0 0.0 0.0 2.0 0.0 0.0 0.0 0.0 11'1-1121'1131 To.aI C."'P"ullloft .. Cont. [d. 10 o o 106.20. o o o o 2.0 '106208 "-vo , WINTER SPRINGS fiRE DEPARTMENT INCREMENTAL COST BASIS 'odd." Suppon Po.hloo 1 Suppon PO"lloo 2 s..,ppon Pgt4llon 3 FI.ollgh..tJPatM'Ndlc: l....d I hn.' bvel J In.... .. lava 6 ::t::o -l -l ::t::o n :c 3: IT1 :z -l 0~IOU/90 = ::t::o = 111 Hourtw "'.. 125.76 21.6~ 21.63 12.38 13.38 16.91 11.00 16.03 SALARY. BENEfiTS & CONTINUING EDUCATION COSTS 1991 m-I.6'111 131 161-111'" III 171-111' ,. IBI-131'" IBI-III.171'IBI 1101 1111-121'1101 11>1-131+141'161'181'1 (1)1 O..,..,lmo 141-131'" HiA To,.. Wo""",' R.Un. To,at .........04 T.t" lo.aI COIU lal....... T.... "'I. T.... r.,.rnodka O....l1.lm. H ..hh Comp. hnoU" IlIf\olh. HoUR .f Cont. t:.. rr."""m.OT, H., .. 160~ Iia",y r,.mtum 16,. ~~ "" Co.. Coni. Ed./V.., c.... aWl.'h. .. Coni. Ed. nil nJ. 163.610 nJ. n/. 11.676 13.709 13.210 16,6~B n/. n/. 162.09B n/. .....8&0 n/. n/. 1,676 3.109 2.B99 7,020 nJ. n/. 62.014 nJ. 00,900 n/. nJ. 1.676 3.149 2,699 7.020 nJ. n/. 62.010 18.60 ~6.966 3.900 6.070 1.616 2.6B7 2.217 ..~1B 16 I.~91 60,098 20.09 40,038 ~,OOO 6.926 1.676 2.6103 2,402 ..7BO 76 1.60. U.IOB 23.96 07,136 ~ .110O 7.0B6 1.616 ~.301 2.B.0 7,7BI 16 1,79. 88.211 26.09 60.016 ~.OOO 1.621 1.676 3.667 3,048 B.IBI 16 1,912 12.329 27.00 63,606 3 .110O 7.976 1.676 3.713 3,234 B.6BI 76 2.02B 1e.~1IO FISIIKIND. ASSOCIATES. INC. USING AAAMODEL I 0.0 0.0 0.0 2.2 0.0 0.0 0.0 0.0 1t01-IUI'lnl Tot" C:.""PM\ullon .. Cont. Ed. 10 o o 119.011 o o o o 2,1. lUJ.lU..1.. ......,. I WINTER SPRINGS FIRE DEPAATMENT INCREMENTAL COST BASIS SALARY, BENEFITS & CONTINUING EDUCATION COSTS 1998 III \21-1.6'111 131 161-131'" 1.1 171-13"" ..1-.31'" 111-1."171'(.1 1101 II11-IWIIOI 1121- m..OI'161.l81'1 1131 1141-1121'1131 Ov.,Um. 141 fL6A T.,.. Wo...... R.tlr.. To.at Req~ed hcat tohl C...: 5.h,IY. 1.... 10.a! Hourly Ra.. T.,.. ranmedlQ OVw1lm. Huhh Compo BW\ofh. IWl.fh. Hou... 0' Coni. (d. h.mIu",.OT. No, of C."'PanUIJon Po.hl." Ral. 160% """1 ".mJum 16~ ~ ~ ." C.I' Coni. Ed.lV.., C."I 8.n.,l1. & Coni. EcI. fTE, . C.nl. fd. SuppoR Poll'lon , .2..62 n/. '66.107 nl. n/. ....64 13.0.2 '3.310 10.026 nJ. n/. 1B3.8U 0.0 '0 SuPPOR P05hloo :l 22.20 nl. 40,340 nl. nf. 1.064 3.244 2.700 7.010 n/. n/. 64.010 0.0 0 SuJlIN)fI POllllloo :I 22.20 nl. 4..340 n/. n/. 1.064 3.244 2.700 7.018 nJ. n/. 64.018 0.0 0 fI4'f1vJl'O.Il'.I.lwr~e: lent' 12.73 18.10 30.086 3.800 6.034 1.064 2..06 2.204 ...02 76 1.432 66.033 2.4 134..32 bv" 2 13.78 20..8 4',231 3.800 0,103 1..64 2.001 2,414 7.011; 76 1.662 68.00. 0.0 0 Lonl] 118."4 24.07 48,107 3.800 7.217 '.D6" 3.442 2.860 0,040 76 1.060 10.240 0.0 0 Lo,," .. 11.60 20.2. 62,340 3.000 7.14. 1.064 3.... 3.140 8.468 78 _.ueu 74.413 0.0 0 le'ul6 10.67 27.06 66.612 3.800 0.210 1,864 3.000 3.331 0.010 76 2.008 10.600 0.0 0 U . 1li.B32 ):::> --i --i ):::> n :I: 3:: IT1 Z 03/00/80 --i FISHKIND & ASSOCIATES, INC. USING AAAMODEL1 = '~.I ):::> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS SALARY, BENEFITS & CONTINUING EDUCATION COSTS 1999 111 m-I.5'11l 1JI 151-131'~ III l7I-IJI'~ 111-tJI.~ 111-111+111+111 1101 (111-121'(101 1121- tJI + '41 + 151 + III +, lnl IUI-I12I'IUI Ovwtlmo 141 HI" To.al Work.,' IMtlr., h." Roq......, Total hi" Cut: '''..-y. Toe" h... Houtty Rol. Tota' P.,. ",.dlo Owwtlmo Huhh Comp. 8Wld"_ 8enllh, HDun .. Coni. Eel. Premlum,OT. H., .f COIn9W\...lon AUI 160~ Salary rnmlum 16% ~ --.!.It. I~ Co.. C04lI, Ed.N.., CUll Ihn.Uu .. Coni. Ed. HE. . Cont. (d. 121.32 n/. 161.122 nl. nil 11.131 13.011 13.400 10.\23 n/. n/. 116.045 0.0 10 22.06 n/. 41.130 nl. n/. \,131 3.34' J.114 1.041 n/. nf. 66.112 0.0 0 22.06 nI. 41,130 nf. nl. 1,131 3.34' 2.811-4 7.04' n/. nf' 66.112 0.0 0 13." 10.11 30.201 3.000 6.803 '.731 2.744 2.362 1.133 76 \,476 61.211 2.1 '62.3" 14.21 21.31 <42,414 3.000 1.211 '.738 2.013 2.640 7.260 16 1,610 11.6\1 0.0 0 .18.84 26.4\ 60.042 3.800 1,406 ',131 3.646 3.031 8.320 16 1,1106 12.203 0.0 0 10.03 21.0. 63,810 3. 000 7.018 1,131 3.n4 3.236 8.146 76 2.020 11.011 0.0 0 11.t2 28.10 61.111 3,900 8.462 1.731 4,002 3.431 O. tll 76 2. t6\ 80,860 0.0 0 2.7 1161.;U~ ruhlon ~ppoft POlhloo I Suppon Poahlon 2 Suppon Po.hlOt\ 3 Fhollull'lf,r"eIIOl1lJlc: Lu'''' h'il12 bv" :I L...... .. Ln'.6 )::> --j --j )::> n :r: 3:: rrl :z: 03108/01 --j FISIIKINO. ASSOCIATES. INC. USlNQ AAAMOOElI = p..;. I )::> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST,BASIS 'o.hlon &,ppon PalA.,on I "'ppon POdllon 2 St.tppon Po.hlon 3 F'f.11 gJ\ '.,/P a, -.nedlc: Lt\!. 1 lav" :I bnl3 Ln.... Len' fi )::> -l -l )::> n ::c ~ fTl :z -l 03108/8G = )::> SAlARY. BENEFITS & CONTINUING EDUCATION COSTS 2000 111 121-1.6'111 1'1 161-1'1'~ 181 1lI-131'~ III-IW" 111-111+ 111+111 1101 1111-121'1101 1121-131+141+161+181+' 1131 1141-1121'1131 Overtime 141 flU Tot.1 W.rt!..,.' Rotlro, Tot'" 1IoqW04 T.,.. ht..C..tlh..,.... 10". fe.at H...tv ..... T.... 'anm~o OVertlm. Huhh Compo h"dh, IWlofh, H..". of ClIH'lt. [4. ho"'''''''.OT. N., .t C."'plll'l.....n R.lo 160,," SalotV ,..",h.U1'l 16~ C". --12!.. 8\4 C.,t Coni. Ed.IY.., CO.II lendh. . Coni. Ed. FTEt & ConI. Ed. '20.14 n/. 168.628 n/. n/. 11.82' 14,081 13.612 10.432 n/. n/. 181.868 0.0 10 23.84 n/. ",182 n/. n/. I.B23 3.441 2.060 8.214 nl. n/. ti1.311 0.0 0 23.84 n/. 4".HI2 n/. n/. 1.823 3.44' 2.860 B.214 n/. nl. 61.311 0.0 0 13.61 20.28 40.3B3 3.800 8,811 I.B23 2.B21 2.423 1.013 16 1.618 6B.B62 2.8 '12.332 14.03 21.86 43.148 3.800 8.416 1,823 3.082 2.826 1,611 16 1,848 83.2110 0.0 0 11.46 28.11 62.182 3.800 1,120 I.B23 3.061 3.130 8,004 16 I.U3 14.348 0.0 0 10.61 21.88 66.621 3.800 8,218 1.B23 3.BB1 3.332 8,042 16 2.0B8 18.ne 0.0 0 18.70 28.64 6B.BS2 3.S00 8.118 I.B23 '.122 3.634 0.410 16 2.218 B3.203 0.0 0 2.8 1l1l.33L FISItKLNO. ASSOCIATES, INC. USINQ AAAMOOEll ".V. I WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS AMBULANCE AND AMBULANCE REPLACEMENT COST Fiscal Y 8ar Fiscal Y 8ar Fiscal Year Fiscal Year Fiscal Y 8ar 1996 1997 1998 1999 2000 WBCI::iASE OPTION Cost per Ambulance $49,000 NJA NJA NJA NJA Number of Ambulances 2 2 2 2 2 Beginning Book Value of Ambulances $98,000 $78,400 $58,800 $39,200 $19,600 Divided by: Remaining Useful Life (in years) 5 4 3 2 1 Total Ambulance Cost $19,600 $19,600 $19.600 $19,600 $19.600 LEASE..oe.JION Annual Lease Payment per Ambulance Number 01 Ambulances Total Lease Cost NJA NJA ,N!A NJA N/A ,N!A N/A N/A N/A N/A N/A _N!A N/A N/A JU~___ :l:> -i -i :l:> n :r: 3:: fT1 ~ 03/08/96 FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 Page 1 - :l:> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS FLEET MAINTENANCE COSTS Schedule Fiscal Year Fiscal Year Fiacal Year Flacal Year Fiscal Yaar Reference 1996 1997 1998 1999 2000 Direct Lebor Costs D-t $6,000 $6,300 $6.615 $6,946 $7,293 Fuel and Maintenance C9sts D-2 13,873 16,751 20,227 24.424 29,492 Total Fleet Maintanance Costs $19,873 $23,051 $26,842 $31,370 $36,785 :P -l -l :P n :r: :3: ~ 03/08/96 -l FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 Paga 1 - :P = WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS FLEET MAINTENANCE: DIRECT LABOR COSTS Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 1996 1997 1998 1999 2000 Average Annual Salary $25,000 $26,250 $27,563 $28,941 $30,388 Fringe Benefits 5,000 5,250 5,513 5,788 6,078 Average Direct labor Costs $30,000 $31,500 $33,075 $34,729 $36,465 FTEs 0.2 0.2 0.2 0.2 0.2 Total Direct Labor Costs $ 6,000 $6,300 $6,615 $6,946 $7,293 :x:- --i -l :x:- CI :c :s: ~ 03/08/96 --i FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 Page 1 - :x:- WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS FLEET MAINTENANCE: FUEL & MAINTENANCE COSTS ::t:> -l -l ::t:> n ::r:: _ 3: fT1 ~ 03/08/96 FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 Page 1 - ::t:> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS MEDICAL EQUIPMENT AND SUPPLIES Schedule Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Reference 1996 1997 1998 1999 2000 Capital Medical Equipment $10,000 N/A N/A N/A N/A Radio/Communications Equipment 8,000 N/A N/A N/A N/A Subtotal Capital Equipment Per Ambulance $18,000 N/A N/A N/A N/A Number of Ambulances C 2 N/A N/A N/A N/A Beginning Book Velue of Capital Equipment $36,000 $28,800 $21,600 $14,400 $ 7,200 Divided by: Remaining Useful Life (in years) 5 4 3 2 Annual Cepital Equipment Costs $7,200 $7,200 $ 7 ,200 $7,200 $7,200 Medical Disposable Supplies 8,360 10,095 11,609 13,350 15,353 Total Equipment & Supplies Cost $15.560 $17,295 $18,809 $20,550 $22,553 Number of Emergency Transports: 760 874 1.005 1,156 1,329 )::> -l -l )::> n :c 3: fT1 ~ 03/08/96 FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 Page 1 - )::> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS VEHICLE LIABILITY INSURANCE COSTS Reserve for Liability or Settlements Fiscal Year 1996 $10,000 Fiscal Year 1997 $10,500 Total Vehicle Liability Insurance Cost $10,000 $1Q2QQ.. )::> -i -i )::> () :r: 3: ~ 03/08/96 -i FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 . - )::> Fiscal Year 1998 $11,025 $11,025 Fiscal Year 1999 $11,576 $11,576 Fiscal Year 2000 $12,155 $ 1 2, 1 55 Page 1 WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS BILLING OUTSOURCE SERVICES Fiscal Year Fiscal Year Fiscal Year Fiscal Yeaf Fiscal Year 1996 1997 1998 1999 2000 Cost of Billing Outsource per Transport $9.00 $9.45 $9.92 $10.42 $10.94 Number of Emergency Transports 760 874 1,005 1,156 1,329 I Total Billing Outsource Services Cost $6,840 $8,259 $9,973 $12,043 $14,541 )::> -l -l )::> n :r:: 3:: ITl ::j 03/08/96 FISHKIND & ASSOCIA TESt INC. USING AAAMODEL 1 Page 1 - )::> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS INDIRECT COSTS Schedule Flecftl Yeftr Flecftl Yeftr Flecftl Yeftr Flecftl Yeftr Flecftl Yeftr Reference 1996 1997 1998 1999 2000 T otftl Direct Costs 1 $177,082 $197,716 $220,881 $247.454 $277,966 Indirect Cost Rate Input Sheet 10% 10% 10% 10% 10% Total Indirect Costs , $17,708 $19.772 $22,088 $24,746 $27.797 )::> -j -j )::> n :r: 3: ITl ~ 03/08/96 FISH KIND & ASSOCIATES, INC. USING AAAMODEL 1 Page 1 - )::> . WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS BREAKEVEN ANAL VSIS Schedule Fiscal Ye., Fiscal Year Fiscal YDAt Fiscal Year Fiscal Yeer Reference 1996 1997 1998 1999 2000 Tolol Tolol Cosl of EMS TronspDfI $194,790 $217,487 $242,969 $272,199 $305,763 $1,233,208 Leu: Addilionol Nonllonsport Rovenues A 0 0 0 0 0 0 Sublotal: Cosl 01 EMS T,anspo,tto be'Recovored Through Tronsport Revenues $194,190 $217,487 $242,969 $272,199 $305,763 $I,233,20B Divided By: T Olal Emergency Transpolls (per RFPI A 760 B74 1,005 1,156 1.329 6,124 B,eakovon Net Revonuo por Transport $256 $249 $242 $235 $230 $241 Divided By: COlloclion Role 75% 75% 76% 76% 75% 75% Breakovon Groll Rovonuo pOI Tronsport $342 $332 .322 $314 $307 $321 )::> -i -i )::> n :I: 3: rr1 Z -i 03/0B/96 FISHKIND & ASSOCIATES, INC. USING AAAMODELl Poge 1 = )::> .. " r APPENDIX 2 FULL COST ANALYSIS OF THE PROPOSED EMERGENCY MEDICAL . - TRANSPORTATION SERVICE OF THE CITY OF WINTER SPRINGS, FLORIDA SUMMARY TABLE ONLY FROM THE AAA MODEL OF EMERGENCY TRANSPORT COSTS ATTACHMENT "A" )::> --i --i )::> n ::c 3:: rr1 :z --i = )::> WINTER SPRINGS FIRE DEPARTMENT INCREMENTAL COST BASIS, REVENUE, EXPENDITURES, PROJECTED PROFIT OR SHORTFALL, AND BREAKEVEN ANALYSIS REVENUE: Gross Revenue from Transports Uncollectable Amount Additional Annual Revenue. Nontransport Net Revenue EXPENDITURES: Direct Costs: Salaries, Benefits and Continuing Education Ambulance and Ambulance Replacement Fleet Maintenance Medical Equipment and Supplies Vehicle liability Insurance Billing Out source Services Other Direct Costs Total Direct Costs Indirect Costs: Total'ndiroct Costs Total Costs PROJECTED PROFIT (SHORTFALL) BREAK EVEN ANALYSIS: Gross Revenue per Trensport to Recover Cost. 03/06/96 Schedule Flscel Yeer Fiscal Year Flscel Yeer Flscel Yeer Flscel Yeer Rofcrcnca 1996 1997 1998 1999 2000 A $140,319 $166,208 $196,873 $233,196 $276,221 A (35,080) (41,662) (49,218) (58,299) (69,055) A 0 0 0 0 0 A $105,239 $124,656 $147,655 $174.B97 $207.165 B C D E F G H $631,256 $714,064 $807,793 $913,889 $1,033,981 19,600 19,600 19,600 19,600 '19,600 19,873 23,061 26,842 31,370 36,785 15,560 17 ,295 1 B,809 20,560 22,653 10,000 10,500 11,025 11,576 12,155 6,840 8,269 9,973 12,043 14,541 0 0 0 0 0 4703,128 $792,769 $894,042 $1,009,028 $1,139,625 70,313 79,277 89,404 100,903 113,963 $773,441 $872,046 $983,446 $1,109,931 $1,253,588 ($ 668,202) ($747 ,390) ($835,792) 1$935,034) ($1.046,422) $1,367 $1:330 $1,305 $1.280 .1 ,257 J FISHKIND & ASSOCIATES, INC. USING AAAMODEL 1 ~ ,"." " Total $1,012,816 (263,204) o $769,612 $4,100,994 98,000 137,920 84,767 66,256 61,656 o $4,538,693 453,869 $4,992,452 (~232.840) $1.299 Page 1 Attachment "8" FIRE DEPARTMENT TRANSPORT REPORT - 1 April 1996 The following information is the ACTUAL impact to the Fire Department budget since assuming Emergency Medical Patient Transport Services 15 January 1996 for the City of Winter Springs. PERSONNEL SERVICES: No additional impact to the budget has been created since the Fire Department assumed the transport service function. FUEL: , Based upon the miles per gallon the Rescue unit averages, the cost of diesel fuel per gallon, and the number of average miles round trip per transport, this has created a $1 .18 per transport fuel cost. OPERATING SUPPLIES: From October 1, 1995 - January 14, 1996 the Fire Department used an average of $8.99 of Operating Supplies, per Emergency Medical Patient that was treated by the Winter Springs Fire Department, and transported by lifefleet Atlantic Ambulance Service. From January 15,1996 - March 31,1996 the Fire Department has used an average of $12.78 of Operating Supplies, per Emergency Medical Transport. This indicates supply costs have increased $3.79 per Emergency Medical Transport over and above what the community was previously providing and was budgeted. BILLING SERVICES FEE: The cost for billing services is $9.00 per transport. An additional cost of $2.00 per transport is averaged for postage, long distance phone charges, and reports. This totals $11.00 per transport for these costs. VEHICLES: No additional impact to the budget has been created since the Fire Department assumed the transport service function. NET COST PER TRANSPORT: $15.97 AMOUNT BILLED PER TRANSPORT: $184.63 RETURNED REVENUE PER TRANSPORT 100% COLLECTION RATE: $168.66 RETURNED REVENUE PER TRANSPORT 75% COLLECTION RATE: $122.50 RETURNED REVENUE PER TRANSPORT $76.35 Attachment "B" ,,-'. ,.~.-.~, . . ,_.......~~ ", ~........