The City of Morgan Hill is expected to move Calfire into the two Santa Clara County fire stations in the city limits early next month in order to reestablish the Morgan Hill Fire Department.
On Wednesday, the City Council voted unanimously to approve the purchase of the two fire stations from the County for about $2.9 million.
One of the stations is located on Old Monterey Road in north Morgan Hill, and the other is on the corner of East Dunne Avenue and Hill Road.
The city will be able to move its new fire services contractor, Calfire, into the stations Jan. 3, and staff expect to close on the purchase of the properties by Feb. 1.
The City will finance the purchase with a 22-year lease-purchase agreement, City staff said. The City will pay $294,000 annually until the properties are paid off.
The purchase of the stations completes the City’s transition to a new contractor for fire services.
Earlier this year, the Council decided to contract with Calfire in order to save on costs, without sacrificing current service levels. The five-year contract with Calfire, which starts Jan. 3, is about $19.2 million.
The City currently contracts with the Santa Clara County Central Fire District for fire and EMS services. Last year that contract cost about $5.6 million. The current contract requires the City to purchase the County’s fire stations when the contract is terminated.
Under Calfire, even with the purchase of the two County fire stations, the City expects to save about $795,000 per year on fire and EMS services, City staff said.
Also at Wednesday’s meeting, the Council unanimously approved the purchase of firefighting breathing apparatus for about $32,000, a contract with the County Department of Environmental Health for hazardous materials inspection services, and hiring Dr. Howard Michaels as the City’s emergency medical services consultant at a cost of $16,800 annually.
In other Council news:
Mayor Steve Tate, Councilman Larry Carr and Councilwoman Marilyn Librers were sworn into office for their new terms which started Dec. 1. Also sworn in were City Clerk Irma Torrez and City Treasurer Mike Roorda.
All five officials won re-election to their respective seats in the Nov. 6 election.
Councilmember Gordon Siebert was unanimously chosen to serve as Vice Mayor for 2013.
The Council unanimously approved the use of unappropriated drainage impact fee revenues to pay for about $355,000 in extra, unanticipated costs related to the Butterfield Boulevard southern extension.
The extra costs are for consultant work related to drainage, soil importation, utility conflicts, and other costs, according to City staff. The work was performed by consultants Mark Thomas and Co. and CSG Engineering.
The City had to use the local fund because the original source of funds for the project – the former redevelopment agency – is no longer available, City staff said. While the $14 million contract with RGW Construction for the road project was paid for with former RDA funds, the state Department of Finance announced Wednesday that it will not allow the use of the same funds to add to the cost, City Manager Ed Tewes said.
Since the state closed redevelopment agencies last year, all expenses unappropriated at that time require DOF approval.
The road project, which will extend Butterfield Boulevard from its current terminus at Tennant Avenue in a southwesterly direction to Monterey and Watsonville roads, is behind schedule due to a lack of work by the contractor on aspects of the project, according to a City staff report. The completion deadline was recently extended to Dec. 23, but staff do not think the contractor will meet that deadline.
The staff report noted that the City will pursue charging RGW Construction “liquidated damages” for each day beyond the approved deadline that the project is delayed.
Furthermore, RGW Construction has already filed two claims with the City – one seeking $3.1 million for engineered earth fill requirements, and one seeking about $6,700 for grout installation, the staff report said. The City has rejected both claims, but expects the contractor to file more related to various costs on the project before the roadway is complete.
With City Attorney Danny Wan announcement last month that he will be leaving his Morgan Hill job for a general counsel position with a much larger agency – the Port of Oakland – the Council Wednesday also approved a contract to hire Gary Baum as the interim City Attorney.
The contract allows a maximum amount of $85,000 for Baum’s services as City Attorney until a new permanent city attorney is hired, according to a City staff report. The contract goes no later than March 31, 2013.
The contract, which was on the consent calendar of Wednesday’s agenda, will pay Baum a monthly salary that is about the same as what the City currently pays Wan in salary and benefits, according to City staff.
