1995-0130_ORANGE COUNTY FIRE AUTHORITY_Correspondence from AAOC12822 Garden Grove Boulevard, Suite D, Garden Grove, California 92643
(714) 638-5550 FAX (714) 741-9457
January 30, 1995
Carolyn Nash, Mayor
Members of the City Council
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Joint Powers Agreement creating the Orange County Fire Authority - AAOC
position and recommended action
Dear Mayor Nash and Councilmembers:
On Monday, January 23, 1995, I corresponded to you on behalf of AAOC, requesting
continuance of any further action regarding the proposed joint powers agreement creating the
Orange County Fire Authority (OCFA). AAOC and other private sector groups had only recently
received the proposed agreement and this lengthy document raised a number of questions and
issues of concern, many of which were included in my correspondence to you.
Based on the information AAOC has gathered since January 23, today I am writing to inform you
that our association is now taking a neutral position on the proposed joint powers agreement
itself. AAOC is, however, recommending specific council action, as outlined below, for those
cities which choose to adopt the agreement creating the OCFA.
Following our initial review of this document in December, AAOC took a position to "oppose
as written" the joint powers agreement creating the Orange County Fire Authority. In early
January our association determined that opposition to the agreement was not justified until
additional information was gathered. Thus, while researching the agreement, AAOC began to
formally request continuance of this issue in the eighteen cities considering adoption. As I
mentioned in my January 23 letter, AAOC's request for continuance was based solely on our
desire to thoroughly evaluate the agreement and gain answers to the many questions it raised
prior to final approval by the cities involved. It was our hope that by allowing more time your
city council would have the benefit of broader community and business input as well as the
opportunity to address any issues of concern prior to adoption of the agreement.
In order to gather the information necessary to properly evaluate this proposal and hear from
some of its principle proponents, we hosted a meeting on Thursday, January 26, with members
of the OCFA negotiating team. This meeting also included representatives of business and
citizen groups from throughout Orange County and it provided a forum through which many
questions were answered and issues resolved. The discussion was highly informative and
revealed to us some of the critical reasons why the eighteen member cities have been pushing
so hard for this agreement. Clearly, the agreement will provide cities with more control over the
administration of fire services. The meeting was very helpful and ultimately your negotiating
team was able to allay our concerns on all but two issues.
FEB 1995
A nonprofit organization for the advancement of the rental housing industry -
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Mayor Nash and Councilmembers
January 30, 1995
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The issues which remain have been at the forefront of our association's concerns since our initial
review of the joint powers agreement. In question are the issues of fee levying authority and
accountability.
Under the agreement, the OCFA would posses the authority to levy taxes, assessments, and fees
related to fire service. California law provides safeguards to taxpayers should the OCFA choose
to exercise its taxing and assessing authority. In each case there are varying requirements for
public notification, public hearing, and voter approval. However, these safeguards do not exist
in the area of fee levying. Thus, the OCFA's twenty member board may vote to establish fees
related to fire service with no guarantee that the city councils or the citizens of the member cities
would have any hearing, discussion, or notification before such fees are adopted. This scenario
is of great concern to AAOC. The OCFA would have the power to impose fees upon the citizens
and businesses within its jurisdiction and do so in the relative anonymity of the OCFA board
room, rather than in the limelight of the city council chambers.
During our meeting with the cities' negotiating team we were pleased to learn that less than 1%
of the revenue currently funding the Orange County Fire Department is derived from user fees.
However, there are no provisions within the agreement limiting or capping the future expansion
of user fees as a revenue source. Further, even after our meeting with the negotiating team,
AAOC is still uncertain as to the degree of member city participation required during the fee
approval process. According to the agreement, other than paramedic or ambulance user fees,
there is no requirement that fees be approved by the member cities affected. Thus, in our
opinion, it is all the more likely that there will be limited city council or public input on such
issues.
The OCFA's taxing/fee levying authority and limited accountability is a potentially dangerous
combination, which, if abused, could blind side citizens, businesses, and possibly even cities with
unanticipated new expenses. Let's not lose sight of the significance of this eventuality, after all,
our nation begun its Revolution over the iss>>e of "taxation withow representation."
Although fee levying authority and accountability remain issues of concern to our association,
they are issues which can be mitigated. AAOC believes that the city council in each member
city should require that, before their representative to the OCFA Board of Directors can vote on
any proposed user fees and/or fee increases, he or she must bring the issue before the city council
for concurrence. AAOC would suggest that such concurrence be an agenda item during open
session of a regularly scheduled city council meeting. In this way citizens and businesses would
have an assurance of input and accountability since discussion of all proposed OCFA fees would
take place in a local public forum.
Ideally, this requirement for council concurrence would be included within the text of the joint
powers agreement itself. However, in recognition of the agreement's February 3 adoption
deadline and the fact that such an amendment would result in delays beyond this date, AAOC
believes that the same objective can be achieved through separate council action. By using this
approach, your city will be able to meet the February deadline and still provide your council,
citizens, and businesses with a level of certainty that any fees that might be proposed by the
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Mayor Nash and Councilmembers
January 30, 1995
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OCFA will receive concurrence locally before they are adopted.
In the event that the agreement's February 3 approval date is changed, and further revision to the
document is possible, AAOC would recommend that a requirement for council concurrence of
any proposed fees or fee increases be included within the text of the agreement itself. This
approach would of course eliminate the need for separate council action.
AAOC sincerely appreciates the efforts made by so many cities and the cities' negotiating team,
to hear our concerns and address our issues before adoption of the Joint powers agreement
creating the OCFA. We do see great value in what the eighteen member cities and the county
are trying to accomplish. After all, our association has believed for quite some time that the
regional approach to fire service delivery is the most efficient and therefore, we look forward to
the cost saving opportunities that would be available to cities through the OCFA. Our concerns
regarding the OCFA have never stemmed from the concept itself, but rather from the details
involved and from our desire to assure that a balance had been reached which meets the needs
of both the public and private sectors.
Thank you for your thoughtful consideration of our input on this issue and your sincere
consideration of our recommendation. Our association would welcome the opportunity to meet
or speak with you and further discuss our findings. In the meantime, if you have any questions
regarding this recommendation or AAOC's position on this issue, please do not hesitate to
contact AAOC's Director of Public Affairs, Rich Lambros at (714) 638-7401.
Sincerely,
'`'� a. ,,.,."" am'
Wilfo "Bill" D. Gower, Jr. l
President
cc: George Scarborough, City Manager