Welcome to the new "Budget Highlights & New Initiatives" section of our district update. This space is dedicated to keeping our community informed about key financial priorities and upcoming projects for the new fiscal year. Here, you'll find an overview of how resources are being allocated, major investments in wellness, infrastructure, and community programs, as well as innovative initiatives designed to support growth, equity, and sustainability across the district.

As part of an ongoing effort to enhance community engagement and build resilience, staff proposes the establishment of a Community Emergency Response Team (CERT) cache. The CERT cache will be a carefully organized stockpile of essential emergency supplies and equipment, maintained by the District, to support volunteers in responding to local emergencies and disasters. It is specifically designed to provide immediate resources for CERT teams during the critical early stages of a disaster before additional aid or larger-scale resources can be deployed.

The budget for this project is $400 thousand, which will cover the purchase of storage containers for the cache as well as outfitting them with the necessary supplies and equipment. This includes essential CERT items such as first-aid kits, personal protective equipment (PPE) including gloves, helmets, safety goggles, and communication tools like radios or satellite phones. Additionally, the cache will be stocked with search-and-rescue gear, such as flashlights, ropes, and blankets, as well as water, food, and sanitation supplies to sustain volunteers during extended operations.

The cache will be strategically stored in a central location for easy access and quick deployment during emergencies. Its primary purpose is to ensure that CERT volunteers are equipped with the tools they need to respond effectively and swiftly when disaster strikes, enabling them to assist in the community’s immediate recovery and resilience efforts.

The objective of this project is to establish public charging stations that will enable individuals to charge their electronic devices and access the internet during emergencies or natural disasters. By providing this vital service, the project aims to support the community’s communication needs, enhance public safety, and ensure people can stay connected during times of crisis when power outages may disrupt essential services. The budget allocated for this project is $22 thousand.

Last fiscal year, with the Board's approval, the District launched an initiative focused on supporting the mental health and well-being of both fire line personnel and administrative staff. The program provides employees with access to up to 25 psychological counseling sessions annually. Specifically designed to address the unique stressors and trauma experienced by fire line personnel, the program also extends its services to administrative staff, ensuring comprehensive support for all members of the team. By addressing mental health concerns, the program aims to enhance overall employee well-being, allowing staff to function more effectively, reduce burnout, and improve work performance. The positive impact on mental health is expected to result in increased job satisfaction, improved morale, and greater efficiency within the workplace.

For fiscal year 2025-26, staff has allocated a budget of $225 thousand to continue and expand this essential program. In addition to this funding, staff are proposing an additional $26 thousand to hire an on-call crisis advisor. This professional would be available 24/7 to provide immediate support in times of urgent mental health needs. The presence of an on-call crisis advisor would significantly enhance the program’s ability to address emergencies, provide timely interventions, and ensure that employees receive prompt assistance during high-stress situations. This addition is designed to strengthen the District’s commitment to prioritizing mental health and ensuring that support is available whenever it’s needed most, contributing to a more resilient and mentally healthy workforce.

Staff is planning to replace our existing accounting system (MIP Fund Accounting) and payroll system (ADP) and potentially integrate our current HR system (NeoGov). At present, these systems operate independently, requiring extensive manual integration between them. While they continue to function, they are becoming outdated and may struggle to support future operational changes and organizational growth. Staff are seeking to upgrade to a more comprehensive system that offers enhanced functionality, greater capabilities, improved reporting flexibility, and increased automation. Given the rapidly changing technological landscape and evolving business needs, transitioning to a more advanced system will help improve operational efficiency, security, and scalability. Additionally, it will provide better support for both current and future reporting requirements and ensure alignment with the District's growing administrative operations. For the initial phase of this project, staff has allocated a budget of $100 thousand, which may include hiring a consultant to assist with a detailed needs assessment and to facilitate the creation and execution of the RFP (Request for Proposal) process.

During the last fiscal year, the District successfully piloted the Explorer Scholarship Program, designed to offer young adults the chance to gain hands-on experience and knowledge in the fire service through structured training. This program is specifically tailored for individuals aged 14 to 21 and operates as a work-site-based initiative, providing a practical learning environment. The scholarship helps offset the cost of entry into the fire service profession, particularly for applicants who demonstrate financial need. Each participant's maximum program cost is $4,311.

The District plans to continue offering the Explorer Scholarship Program in the upcoming fiscal year and for the foreseeable future. For FY 2025-26, the District has allocated a budget of $20 thousand to support the continued growth and expansion of this valuable initiative. The program not only provides career development opportunities for young adults but also fosters the next generation of fire service professionals

For fiscal year 2025-26, staff plans to engage a vendor to conduct a comprehensive facility condition assessment for all District buildings. This assessment will provide a detailed evaluation of the current state of the facilities, identifying areas that require immediate attention as well as those that may need long-term maintenance or upgrades. The results will be invaluable in helping staff prioritize repairs, plan for necessary maintenance, and strategically allocate resources for upcoming capital projects, ensuring the longevity and functionality of District properties. Staff is allocating $100 thousand for this project.

As part of the Grand Jury response approved by the Board in September 2024, the District plans to initiate a project aimed at formally documenting organizational risks and evaluating internal controls, in line with the recommendations. The results of this project will be reported to the Board of Directors. Based on the outcomes of the project, the District will also determine if there is a need for annual reassessments moving forward.

The project will involve hiring a consultant to assist the District with the following:

• Identifying organizational risks that could potentially impact the District’s accounting and financial management functions.
• Conducting an assessment of the District’s existing internal controls to determine if they adequately address the identified risks.
• Recommending modifications to current controls and identifying any new controls that should be implemented to strengthen the District’s internal control framework.

Additionally, the scope of the project may include support in implementing any new or modified controls, as well as providing a questionnaire for annual reassessments, should they be deemed necessary. The allocated budget for this project is $30 thousand.

The District’s current training site is situated at a Pacific Gas and Electric (PGE) facility within the Ravenswood Substation, located on Willow Road, approximately half a mile west of Dumbarton Bridge in Menlo Park, CA. Recently, PGE notified staff that they would require the lot where the training props are currently located. However, PGE has confirmed that the training props can be relocated within the same facility, just to a different area of the lot. These fire-training props are crucial for a variety of emergency response training exercises, enabling personnel to practice in realistic, hands-on scenarios. In response to the need for relocation, staff has allocated a budget of $225 thousand for this project. This budget will cover the costs associated with moving the props, as well as the purchase and installation of additional necessary equipment, including dumpsters, porta-potties, and moving containers, ensuring the site remains fully operational and equipped for ongoing training activities.

The District is currently self-insured for workers' compensation claims up to a limit of $1 million. For claims exceeding this amount, the District pays an insurance premium to cover the additional costs. Over the past year, however, both the number and severity of claims, as well as the associated insurance premiums, have increased significantly compared to historical trends. This rise in costs is partly due to the unpredictable nature of workers' compensation claims, which can fluctuate based on various factors, such as the frequency of incidents and the complexity of medical treatments. Given the ongoing upward trend in both claims and premiums and the need to ensure adequate financial coverage for the District's workforce, there is an increase of $450 thousand to the workers' compensation budget for the upcoming fiscal year. This adjustment will help offset the rising costs and ensure that the District remains adequately prepared to manage any future claims.