JUN 2 6 2012 Clerk of the Napa Superior Court*

An assessment of CAL FIRE services vs. cost of full service NCFD as a result of a Cost Benefit Analysis has not been completed. Response, County Auditor-Controller. The Auditor-Controller agrees with this finding.

There is a reasonable probability of saving a major part of the $8,267,184 CAL FIRE contract budget if Napa County transitions CAL FIRE services to the NCFD. Response, County Auditor-Controller. The Auditor-Controller partially agrees with this finding. Although the monies would be made available, there is no evidence at this time that supports the probability of the savings as a cost-benefit analysis has not been completed.

The current CAL FIRE agreement with Napa County is $8,267,184 which includes an "Administrative Charge" of 11.96% equaling $988,755 in the 2001-12 FY. This $988,755 savings could be allocated for administration of a NCFD. Response, County Auditor-Controller. The Auditor-Controller partially agrees with the finding only in that if the agreement with CAL FIRE did not exist, the $988,755 could then be allocated elsewhere. However, since there has not been a cost-benefit analysis completed, the Auditor-Controller cannot determine at this time if these funds would be available for NCFD.

Substantial accumulated County Fire Protection funds, of approximately $10,000,000, are available that could be used for transition from CAL FIRE services to a full service volunteer and career NCFD. Response, County Auditor-Controller. The Auditor-Controller partially agrees with this finding. The fund balance of the Fire Fund is to be used for Fire related purposes only, which could include transition costs. However, the fund balance is also the only reserve the Fire fund has for any future capital needs or unforeseen expenditures that may arise. For example, one fire engine can cost up to $500,000 to replace and a natural disaster, such as an earthquake or major fire, would exhaust all the funds quickly. It is prudent to keep a healthy fund balance for these situations as well as capital needs. Therefore, it would not be recommended for these funds to be spent down completely for any one purpose. Finding #14. The Volunteer Departments in Napa County are very cost effective providers of Fire/EMS services. Response, County Auditor-Controller. The Auditor-Controller agrees with this finding. Responses to Recommendations: Recommendation #6. Napa County complete a CBA, by an independent firm, of all the fire protection services provided by CAL FIRE and NCFD before contracting CAL FIRE services for the agreement year 2014-2015. Response, County Auditor-Controller. The recommendation requires further analysis by the Napa County Fire Chief and the Board of Supervisors. The Auditor-Controller would assist in the analysis as requested.