1995-0201_ORANGE COUNTY FIRE AUTHORITY_Staff Memo0 0
MEMORANDUM February 1, 1995
TO: Honorable Mayor and City Council C
FROM: George Scarborough, City Manager d`{
SUBJECT: Answers to Questions Raised by Orange County Apartment Association
Concerning Fire Authority
Attached is a response sheet, prepared by special legal counsel to the City Managers
Negotiating Team, regarding issues raised by the Apartment Association. We have been
advised by the Apartment Association that they are now maintaining a neutral position
on the formation of the JPA. We do not know whether they will be in attendance at this
afternoon's special City Council meeting.
GS
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Questions fmot the Orange County Apartment Own= Association Conaetmng the
Joint Pawera Agreement C mating the Orange County Fire Authority, and
Responses from Rutan and Tucker, Attorneys at Law, and
Lsgal Counsel to the City Manager's Negotiating Team.
10.4k,I:1.7.1
1. Bylaws, Policies and Prowdures. Will the OCFA establish bylaws, policies, and
procedures (i.e. staffing levels, response times, minimum manning, levels of
service)? Who will develop these and will City Councils be allowed to
independently approve prior to their adoption?
Response: No. The OCFA wn7143fabbA regulations for adminwatdve mata►s The
Rot Chief will cnraw to establish pokczm and procediew Jbr agBi Rg le1e1*,
response slow mbdmum mann* and levels of &mice.
2 Cost Savings. The staff report points out that this is not a coat saving proposal.
considering this, and the size and magnitude of the OCFA, how can anyone
approve this agreement without seeing a budget?
Response: 71w Cawily staff report pointe our nkat this ik nota cast saviggr f:r the
However, two f intmcial equity saidier and a feasibr'kty iody bidicaw that the
Pine Authority would be a cast zamr 4p for the C UW and their reddmz Far cmwy q,
atpramt the Fire Depwment is mquket to buy all of in unicas from the County
rather than private vendors
3. Approval of the Budget. When will a budget be available for the OCFA? Who
willdevelop it? Who will adopt it? Will it be approved by the OCFA Board of
Directors or just the Executive Board? Will City Councils be allowed to
independently approve?
Response: The IFA regaars that a budget be adopted 60 days from the Rear Board
mee ft It must be approved by a majority of all Mhazwx It is an available public
document
4. Urgency to Approve Fire Authority. Why is there such a rush to approve this
new $74 million government agency?
Response: The Ommm County Board of Superw"s esiabbake d an effective date of
Febmmy 3, .1993 for doe formation of the OCFA. The Ol dw had abaady armd to
fam a Fina Authority In Iuly sulpa m Me ?sorsa chmpL We are now vey
conaernad wick the re ductwn offar sevdcai nmd&V from the County ban&rsW&y
This it not a new goverrvnepig instead it is a changoe bi the govenmiocc
I Liabilities. Under the agreement the OCFA seems to assume all e:dsting
liabilities of the Orange County Fire Department. What are these liabilities?
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Will they unnecessarily bind the OCFA? Could the OCFA be liable for any
losses incurred by the County bankruptcy?
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Response: Undw the current resbucatrlggplat; the OCFA would acct any
liabtTi m derived from day-to-day opmu ons only on and after the of fer" dare of
forot dmL As far as the bankn9 ay gores, the OCFA could be subject to a reduced
reseve amount wvevkd is the Or County Invealnr u Pool ib dye same emu at
other County departme w and irtroe wm
6. Legality of Turning Over County Fire Assets. While Orange County is in
banlauptcy is it legal For the County to give its fire assets to the Authority?
Response: Yes It is our understanding dikp ocen is moWnSfmmod
7. EWec &m Committee. According to the agreement, the Board of Directors shall
designate the "functions to be performed" by the Executive Committee. Other
than this the agreement is silent as to the role of the Executive Committee or
limitations on its powers. What assurances do citizens, business and member
Cties have that this small committee (per the agreement a 5 or 7 member
committee thus requiring only 3 or 4 votes to pass a motion) does not end up
making critical decisions for the entire body?
Response: The formation of the Rwcuive Committee is subject to the Brown Act
In gene* the Executive Comminee is carr idffed an advisory body and must miurm
neeornmendadom to die entire Board for a vela
& Number of Cities Required to Form Fire Authority. In order for the OCFA to be
established how marry of the 18 proposed member Cities must approve the
agreement?
Response: B is preferred dirt all l8 Cider go forward with the fonnadon of the
OCFA and &b has beers ax+umed and agreed to fur four yens
9. Fire Protection. What happens to the fire protection for any City that does not
join the OCFA?
Response: We beSeve that if a Cry doer not approve the ggneeneW by February 4
199$ they MW candnue m recdw fere protection as outlined in their current
ag eeercerat with the C.outuy. Howeve, the City would'vele ap the oppartusiy to be
mpresented as the Board and, tharfb% have no audkwiw to trate on fere issue
10. Approval Date. What is the latest date that this agreement can be approved?
Response: February 4 1995
11. Fund Raising. If funding is cut then how would the OCFA get/raise funds?
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Response: Funding altemathw would have to be detarnkaci should this occur. Me
tax far Bre Fits Authority is pn=led under State law. Fees conm*we only one
parent (about one ntrht dollars) of Ac total budge[ The Audumi y mff
Mdace taxes with fees. The &mound Fire Avid (SFF) pneruffy be passed
davugh to (Sties
:.ala. ► `Ic.'�y.,1:Aa11 ly •
i. Authodty to Levy Tames. According to the JPA, the OCFA will have the
authority to levy taxes and assessments. What voter approval is required? If it is
213 as per Proposition 13, is it a 2/3 vote of the voters in each City or it 213 vote
of the voters in the entire OCFA territory? In other words, does each City have
an independent vote?
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2. Other Assessments. Other than real property tau, what other forms of tax and
assessment would the OCFA have the power to authorize?
Response: The OCFA would have the smnepwm as a general law eq The
OCFA does not have the power to duwfiy levy or receive pmpeny taxes
3. State Fwuling. Was part of the reason for forming the OCFA to try to prevent
the State from taming back more funds? If so, what is to prevent the State from
taking the funds away anyway?
r ..I I A..
1. Fes Iucreases. Under the quorum rules outlined in the agreement it appears that
a vote of as few as six directors could result in a fee or fee increase. Is this the
rase or is there a super majority requirement for fee increases? What procedure
would be used? Would City Councils have to approve new fees or fee increases
or would the OCFA Board be able to levy fees without any additional oversight?
Response: A quorum for the OCFA would be slx &= w= City Cowx* do act
have to approve feet but matey members would wok Counted app vvol In some
cartery such as doe Uniform Fire Code, Jets would be appy w d by each CouruxL The
OCFA does not prvpose to increase fam which now we ase parent of the bum
This is why we need to protect die taxer akwady dalkated far, foe p ooft-dom R is far
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2 Cast Recovery. Would fees be limited to cost recovery? I£ so, who determines
what are reasonable operating costs (the OCFA staff, the OCFA board, member
Cities, independent group)?
Response: Yrs Scale law addressbtg opaaaV costa alluff for reasonable casts and
ovatmad The OCTA Board of LWaclors would apip ove operatiV caw according to
the law.
3. Fees Charged. Will the OCFA be able to directly charge fees for inspections,
services and/or responses? If so, will each jurisdiction have any say about such
charges?
Response: The OCFA legally cannot charge for %ffldaP fbe reponse. It stray
char for special ruponses such as ha nkus waste *wNw ear drank driving dtw& w
authorized by State law Oarent other "services and errspecdoW wM continue to be
a*nbdsstered as they are now
4. Cost Controls. What cost control measures would exist at OCFA to assure that
fees do not become necessary in the future.? If costs can be recovered through
fees and fee increases, what incentives will be in placed to encourage reduced
costs?
Response: The feasibility studias art rnine a var&W of cast conbal measures In
addition, we bdiew the t:}tiea and theft OCA raprmta hw are comtnitad to
looking at all cast conbat measures to emus diey ars in the beat baffest of Ae&
efamm Crxtaurly public and basin= uyW is welconsed and encoraagad
5. Protection from 1h=ssive Fees. What protection does the public have From
excessive fees and charges? How do we prevent more damage to the business
environment by uncontrolled costs?
Response: State law gaverras Ate amount of fee and, ofta4 when they are allowed
The biles are comrniited to condvllbtg costs because to do an is in the best bttaeme
of du& corn uMf *A
6. Fee Increases to the General Public. The agreement seems to have tight control
on how much the OCFA can raise costs to its members Cities, by limiting annual
increases to the Cities' equity contribution and requiring Cities to approve
ambulance and paramedic fees. However, within the agreement there does not
seem to be any controls or limits placed on fees or fee increases to the general
public Why?
Response: The JPA addresm the govffnM beard of doe OCFA. Fern and fee
increase are outlined in .State law. 774 JPA is bound by State (and aII other) taws
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Reliance an Response Fees and Service Charges. What assurance do citizens,
businesses, and member Cities have that over time the OCFA will not become
dependent upon 'response flees" and/or "service charges" similar to those already
being used by the Orange County -City Hazardous Materials Emergency Response
Authority?
Response: Thu question appears to be Aw7ar to #3 above App dwre are no
pans to for far rappsssiort serviceR odor• serme clxrww would oor aha m
be admbdWered as Aq are now and are one percent of the bury The goal Js to
proaerx Ass movie; %*kh arc su,Q4cient to pay for opowdonx The hazardwa waste
charge* ars audiwized by State law. 'Response" chw3w are not
8 Fkecutive Committee Authority. Is there anything preventing the OCFA Board
from granting the Executive Committee the authority to levy fees?
Response: Yea„ ndes regardm dakpaws of powers
1, Regulatory Authority. What regulatory authority would the OCFA have?
Response: Again, the OCFA wauU have the same audtority as a gmerd Jaw city.
7&e opavdons me cNaim a in the same way.
2. Contnnl of Fire Code Regulations. Would Cities stili be able to control fire code
regulations or would the OCFA supersede?
Response: Ahwl &W* The Cines wr7J atabum control over fee meat wtt and
assmiaaed fees.
I Firc Authority Influence. Even if Cities and the County maintain their authority
over fire regulations, wouldn't the OCFA be in a position to strongly influence, if
not control, local governments' decisions on fire regulations? Example: OCFA
Staff could report to its Board of Directors that if each member City and the
County adopt OCFA's proposed fire code and building code amendments, then
OCFA could reduce its minimum manning per engine. Using this scenario, if the
OCFA Board agreed with staffs recommendation it would certainly put great
pressure on all member Cities and the County to adopt the recommended code
an=dments (even those Cities whose OCFA director voted against the
recommendation). Wouldn't local governments eventually lose their autonomy on
fire regulation to the OCFA Board? Could an individual City break ranks with
OCFA on regulatory issue without ramifications?
lilesponso: We do ,tot believe their wal be any change in injbtatcu We be ew a
City Caumg work[ nor aoogx the neconanaukWo is of OCFA staff xy the Casmca
felt it was not in the beat buwwt of drdr dkt' m This problem doer not occur now.
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Ye.y a City could break rondos with impunity.
4, Unnecessary Regulations. What, if any, control(s) would be in place to prevent
excessive, burdensome, or unnecessary types of regulation? Will the input of
business and industry be actively sought before regulation is adopted? Will there
be any established and regular liaisons with the business community or will the
OCFA rely solely upon posed agendas and open meetings as a vehicle for
business community involvement?
Response: The OCFA mV conowe to maintain a liaison with the business
community. We uW the.Apanwwa Owners,4xwckLfkn m particl%WL
1. PateaW Additional Costa The County staff report on the JPA creating the
OCFA points out that this is not a cost-saving proposal and may in fact cost more
money. What are the additional costs associated with the OCFA? la if worth it,
especially at a time when the County and Cities are looking for ways to cut and
control costs?
Response: This question appomr A7 be similar to that a*ad In #2 of the "Gandbr
cafto7 above. h may have been taken aut ofcmaw frons the (',bury sszf"rrpwg
which indicates tut this is not a coat saybW for the County. Howewhz, two faunchd
eguey se. &*w and a feaxbiW M udp indican that die Pbv Authorhy would be a cast
=WW for dw O9ttes.
2. Attacher Level of Government. If there is "no cost savings" why establish another
level of government?
3. Fire Service Options. Would participation in the OCFA limit a City's ability to
explore or participate in other cost saving approaches to fire service (i.e.
consolidation, contracting out, privatization)?
4. Oversite to Ensue Cost Controls. Much of the variable coat associated with fire
service is a function of staffing levels, response time, minimum manning, and
desire level of service. What oversight would be placed upon OCFA staff to
assure cost control and/or coat savings in these areas?
Response: Thrse are martens to be discussed wilt the Mie CW..
S. Equity Adjustment. According to the agreement, member Cities will have their
contributions to OCFA capped for the first 3 years at current levels_ At the end
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of three years however, there will be an "equity adjustment" and the amount of
each City's annual contribution may change (some Cities may increase while
others decrease). The agreement spcalts of a 2% cap on contribution increases.
Would this cap apply to the initial equity adjustment at the end of three fiscal
years? If not, what limitations are there? Would the 2% cap apply to all future
contribution increases after the initial equity adjustment?
IUMP(M e: It it na clear what an "initial" equity adjustment is. D should be noted
that equity adjumnentr are 1" mandamry at the end of bate yam 7*q stay or
nw not o=v, depes ft on lite riatation at the tlma Any actual fratdbw
atustntew *0 ramie SkaE law dianQrs