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19-0115_ORANGE COUNTY FIRE AUTHORITY_E14_Agenda Report1t15t2019
Ê.14
City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City CouncilTO
FROM
SUBMITTED BY
Æn¡^ in Siegel, City Manager
Jacob Green, Assistant City Mana n ¡f,f
Lindsey Stigall, Management AnalYsff '
DATE:January 15,2019
SUBJECT Resolution Approving the Fourth Amendment to the Amended
Orange County Fire Authority Joint Powers Agreement
RECOMMENDATION
Adopt a Resolution approving the Fourth Amendment to the Amended Orange County
Fire Authority Joint Powers Agreement.
DISCUSSION/ANALYSIS
At the request of the Orange County Fire Authority (OCFA), staff is recommending the
City Council adopt via Resolution, a Fourth Amendment to the Amended Joint Powers
Authority (JPA) Agreement to formalize the OCFA's commitment to its "snowball"
accelerated pension liability paydown plan (Attachment 1).
JPA History and Proposed Fourth Amendment to the Amended JPA Agreement
The Orange County Fire Authority (OCFA) was formed in 1995 to provide regional fire
protection and related services to the County of Orange and 18 member cities.
Subsequent to formation, six additional cities have become members of the OCFA. The
original JPA Agreement was amended on September 23, 1999, and renewed in 2010 by
the First Amendment, which provided for a term that runs through 2030. 1n2013, OCFA's
members approved a Second Amendment to the Amended JPA, in an attempt to address
equity concerns by the City of lrvine; however, the Second Amendmentwas subsequently
invalidated by court judgment. ln 2015, a Third Amendment was approved by OCFA's
members which eliminated alternate Directors to the OCFA Board.
OCFA is now seeking approval of a Fourth Amendment to formalize the OCFA's
commitment to its "snowball" accelerated pension liability paydown plan (Attachment 2).
City Council Agenda Report
January 15,2019
Paqe 2 of 3
ln order to become effective, the Fourth Amendment must be approved by at least two-
thirds (e.9., 16 of 24) of the member agencies' governing bodies.
Background - OGFA's "Snowball" Accelerated Pension Paydown Plan
At, its meeting of September 26, 2013, the Orange County Fire Authority (OCFA) Board
of Directors adopted an accelerated pension liability paydown plan, otherwise known as
the "snowball" plan. The snowball plan calls for the OCFA to accelerate payment of its
unfunded pension liability more quickly than the timeframe required for payment by the
Orange County Employees Retirement System (OCERS), thereby saving future interest
costs and improving the funding status of the OCFA's pension plan.
Since the plan was adopted, the OCFA's unfunded pension liability has steadily declined
from $473.8 million to $400.6 million, and the funding status has consistently improved
from 65% to 79o/o. Per OCERS' actuary, OCFA is on track to achieve an 85% funding
level by December 2020, and has achieved interest savings to date totaling $18.3 million.
City of lrvine's June 13 Proposal and June 27 Notice of Withdrawal
On June 13,2018, the City of lrvine provided a proposal to the OCFA requesting, among
other proposal elements, that OCFA commit to a pension pay down strategy. On June
21 and June 25, the OCFA responded to the City's proposal reiterating its commitment to
OCFA's "snowball" accelerated pension liability paydown plan, in addition to other
commitments made by OCFA regarding proposed service enhancements. On June 27,
2018, the City of lrvine provided OCFA with a Notice of Withdrawal seeking the initiation
of good faith negotiations.
OCFA desires to retain lrvine as a member agency, and OCFA has indicated its staff will
continue to negotiate in good faith. At the same time, OCFA desires to continue progress
on the commitments made in its June 21 and June 25 responses to the City of lrvine.
FISCAL IMPACT
There is no fiscal impact to the City associated with the recommended action
ENVIRONMENTAL
In accordance with the California Environmental Quality Act (CEQA) the recommended
action is exemptfrom CEQA per Section 15061(bX3), the general rule thatthe CEQA
applies only to projects which have the potential for causing a significant effect on the
environment. Where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment, the activity is not
subject to CEQA. Adoption of a Fourth Amendment to the Amended Joint Powers
Authority (JPA) Agreement to formalize the OCFA's commitment to its "snowball"
City Council Agenda Report
January 15,2019
Page 3 of 3
accelerated pension liability paydown plan would not be an activity with potentialto cause
significant effect on the environment and is therefore exempt from CEQA.
RIOR CITY COUNCIL
On August 4, 2015, the City Council approved the Resolution and Third
Amendment to the Amended Joint Powers Authority Agreement.
On July 21,2015, the City Council approved supporting the Third Amendment to
the Amended Joint Powers Authority Agreement
On November 5, 2013, the City Council approved the Second Amendment to the
Amended Orange County Fire Authority Joint Powers Agreement.
On February 8, 2008, the City Council approved the First Amendment to the
Orange County Fire Authority Joint Powers Agreement.
On November 2, 1999, the City Council approved the proposed Amendments to
the Joint Powers Agreement creating the Orange County Fire Authority.
On January 21, 1997, the City Council approved the First Amendment to the Joint
Powers Agreement creating the Orange County Fire Authority.
On Augusl2, 1994, the City Council approved, by Resolution, participation in the
Orange County Fire Authority.
COM M I SS I O N/CO M M ITTEE/B OARD REVIEW AND RECOMMENDATIONS:
a
o
o
o
a
a
Not applicable.
NOTIFICATION
Brian Fennessy, Fire Chief, Orange County Fire Authority
Lori Zeller, Deputy Chief, Orange County Fire Authority
Rob Capobianco, Division Chief, Orange County Fire Authority
Sherry Wentz, Clerk of the Authority, Orange County Fire Authority
ATTACHMENT
Attachment 1 - Resolution
Attachment 2 - Fourth Amendment to the Amended Orange County Fire Authority Joint
Powers Agreement
RESOLUTION NO. 1 9-01 -1 5-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORN¡A APPROVING THE FOURTH AMENDMENT
TO THE AMENDED JOINT POWERS AUTHORITY AGREEMENT WITH
THE ORANGE COUNTY FIRE AUTHORITY
WHEREAS, the Orange County Fire Authority (Authority) presently provides fire
protection, prevention and suppression services and related and incidentalservices to the
City of San Juan Capistrano; and,
WHEREAS, the City of San Juan Capistrano and the Authority wish to adopt a
Fourth Amendment to formalize the Authority's commitment to its "snowball" accelerated
pension liability paydown plan (Exhibit.4").
NOW, THEREFORE, BE lT FURTHER RESOLVED, by the City Council of the City
of San Juan Capistrano, that the Fourth Amendment to the Amended Joint Powers
Authority Agreement with the Orange County Fire Authority is approved; and,
PASSED, APPROVED, AND ADOPTED this 15 day of January 2019
BRIAN L. MARYOTT, MAYOR
ATTEST
MARIA MORR¡S, CITY CLERK
Form Date: 12/14/2005
ATTACHMENT 1
FOURTH AMENDMENT TO AMENDED JOINT POWERS AUTHORITY AGREEMENT
ORANGE COUNTY FIRE AUTHORITY
This Fourth Amendment ("Fourth Amendment") to the Amended Joint Powers
Authority Agreement is made and entered into by and between the following public
entities (collectively referred to as "members"): Aliso Viejo, Buena Park, Cypress, Dana
Point, lrvine, La Palma, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los
Alamitos, Mission Viejo, Placentia, Rancho Santa Margarita, San Clemente, San Juan
Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba
Linda (collectively referred to as "Cities" and individually as "City") and the County of
Orange (referred to as the "County"), each of whom is a member of the Joint Powers
Authority, Orange County Fire Authority ("the Authority"). This Fourth Amendment
requires the approval of two thirds of the members to go into effect, and it shall be effective
when approved by a sixteenth member.
RECITALS
WHEREAS, the Authority presently provides fire protection, prevention and
suppression services and related and incidental services (collectively, "Fire Services") to
Cities as well as to the unincorporated area of the County and State Responsibility Areas
("SRA"); and
WHEREAS, the County and several of the Cities entered into a Joint Powers
Authority Agreement to form the Authority as of February 3, 1995, pursuant to the
provisions of Article 1, Chapter 5, Division 7, Title I (commencing with Section 6500) of
the Government Code of the State of California ("Joint Powers Statutes"); and
WHEREAS, pursuant to the Joint Powers Statutes the members are authorized to
jointly provide for the methods of the provision of Fire Services, including the method of
financing the provision of Fire Services; and
WHEREAS, on September 23, 1999, the members entered into an amended Joint
Powers Authority Agreement ("1999 Amended Agreement") which superseded all prior
agreements between the members and is incorporated herein by reference; and
I1328404.2
ATTACHMENT 2
WHEREAS, pursuant to the 1999 Amended Agreement the members provided for
the provision of Fire Services and the joint financing of Fire Services; and
WHEREAS, on July 1,2010, the members entered into the First Amendment to
the Amended Joint Powers Agreement ("First Amendment") which amended several
provisions of the 1999 Amended Agreement; and
WHEREAS, on April 20, 2012, the City of Santa Ana joined the Authority and
became a party to the 1999 Amended Agreement and the First Amendment; and
WHEREAS, on November 18,2013, the required number of member agencies
approved the Second Amendment to the Amended Joint Powers Agreement ("Second
Amendment") which amended several provisions of the 1999 Amended Agreement.
However, a final court judgment subsequently invalidated the Second Amendment, so the
Second Amendment became, and remains, inoperative; and
WHEREAS, on July 14, 2015, the required number of member agencies approved
the Third Amendment to the Amended Joint Powers Agreement ("Third Amendment") to
eliminate alternative Board Directors;
WHEREAS, the Amended Joint Powers Agreement, as amended by the First
Amendment and Third Amendment, is referred to herein as the "Amended Joint Powers
Agreement And lts Operative Amendments";
WHEREAS, the members wish to adopt this Fourth Amendment to the Amended
Joint Powers Agreement And lts Operative Amendments to formalize the OCFA's
commitment to its "snowball" accelerated pension liability paydown plan on the terms and
conditions set forth herein.
NOW THEREFORE, the members agree to amend the Amended Joint Powers
Agreement And lts Operative Amendments as follows:
21328404.2
AGREEMENT
1. Article IV of the Amended Joint Powers Authority Agreement And lts Operative
Amendmenfs ls amended to add Section 7, to read as follows:
7. Pavments to Reduce Unfunded Pension Liabilitv
A. Except as provided in subsection C, the OCFA Board shall appropriate funds
in its budget annually consistent with, or greater than, the budgetary payments
called for in the "snowball" accelerated pension liability paydown plan approved
by the OCFA Board of Directors on September 26,2013, and amended on
November 19, 2015, November 17,2016, and March 23,2017 .
B. Payments will be greater than those appropriated in the OCFA's budget
annually when triggered by a Net General Fund Surplus (per the Financial
Stability Budget Policy). Payments from the "Net General Fund Surplus" are
hereby deemed as derived from revenues received by overfunded structural
fire fund cities as determined by the equity calculation required under Article
lV,Section4-Equity.
C. Appropriations and payments required by subsection A and B may be reduced
to the extent the Board determines, by vote approved by two-thirds of the
Board, is necessary to address a fiscal hardship.
1) For purposes of this section, "fiscal hardship" shall refer to a substantial
reduction in OCFA anticipated revenue and/or a significant increase in
anticipated expenses that are beyond the reasonable control of the
OCFA Board.
2. This Fourth Amendment amends the 1999 Amended Agreement And lts
Operative Amendments, and except as specrTrcally amended herein, the 1999
Amended Agreement And its Operative Amendments shall remain in fullforce
and effect.
ISTGNATURES ON FOLLOWING PAGESI
1328404.2 3
Dated
SIGNED AND CERT¡FIED THAT A COPY
OF THIS DOCUMENT HAS BEEN
DELIVERED TO THE CHAIRMAN OF THE
BOARD
Clerk of the Board of Supervisors
County of Orange, California
NOTICE TO COUNTY OF ORANGE TO BE
GIVEN TO:
County Executive Officer
10 Civic Center Plaza
Santa Ana, CA 92701
APPROVED AS TO FORM
County Counsel
Dated
[Signatures Continued on Page 5]
COUNTY OF ORANGE, a political
subdivision of the State of California
By
Chairman of its Board of Supervisors
By
4
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Aliso Viejo
12 Journey, Suite 100
Aliso Viejo, CA 92656-5335
Phone: (949) 425-2500Fax: (949) 425-3899
APPROVED AS TO FORM:
City Attorney
Dated
CITY OF ALISO VIEJO
By
Mayor
[Signatures Continued on Page 6]
By:
5
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Buena Park
6650 Beach Blvd.
Buena Park, CA 90620
CITY OF BUENA PARK
By
Mayor
[Signatures Continued on Page 7]
Phone
Fax:
(714) 562-3500
(714) 562-35ee
APPROVED AS TO FORM
By
City Attorney
Dated
6
Dated
ATTEST:
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Cypress
5275 Orange Avenue
Cypress, CA 90630
Phone: (714) 229-6688
Fax: (714) 229-0154
APPROVED AS TO FORM
City Attorney
Dated
CITY OF CYPRESS
By:
Mayor
[Signatures Continued on Page 8]
By
7
Dated:
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO:
City Manager
City of Dana Point
33282 Golden Lantern
Dana Point, CA92629
CITY OF DANA POINT
By:
Mayor
[Signatures Continued on Page 9]
Phone
Fax:
(949) 248-9890
(e4e) 248-ee2o
APPROVED AS TO FORM
By:
City Attorney
Dated
8
CITY OF IRVINE
Dated
ATTEST:
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of lrvine
One Civic Center Plaza
lrvine, CA 92606-5208
By:
Mayor
Phone
Fax:
(e4e) 724-624e
(949) 724-6045
APPROVED AS TO FORM
By:
City Attorney
Dated
[Signatures Continued on Page 10]
I
CITY OF LA PALMA
Dated
ATTEST:
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of La Palma
7822 Walker Street
La Palma, CA 90623
By:
Mayor
Phone:
Fax:
(714) 690-3333
(714) 523-7351
APPROVED AS TO FORM
By:
City Attorney
Dated
[Signatures Continued on Page 11]
10
CITY OF LAGUNA HILLS
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO:
City Manager
City of Laguna Hills
25201 Paseo de Alicia #150
Laguna Hills, CA 92653
By
Mayor
Phone:
Fax:
(949) 707-2600
(949) 707-2614
APPROVED AS TO FORM
By
City Attorney
Dated
[Signatures Continued on Page 12]
11
CITY OF LAGUNA NIGUEL
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA92677
Phone: (949) 362-4380
Fax: (949) 362-4340
APPROVED AS TO FORM
City Attorney
Dated
By:
Mayor
[Signatures Continued on Page 13]
12
CITY OF LAGUNA WOODS
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Laguna Woods
24264 El Toro Road
Laguna Woods, CA 92637
Phone: (949) 639-0500Fax: (949) 639-0591
APPROVED AS TO FORM
By:
City Attorney
Dated
By:
Mayor
[Signatures Continued on Page 14]
13
CITY OF LAKE FOREST
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Lake Forest
23161Lake Center Drive, Suite 100
Lake Forest, CA 92630
By:
Mayor
Phone
Fax:
(e4e) 461-3400
(949) 461-3511
APPROVED AS TO FORM:
By
City Attorney
Dated
[Signatures Continued on Page 15]
14
CITY OF LOS ALAMITOS
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Los Alamitos
3191 Katella Avenue
Los Alamitos, CA 90720
By
Mayor
Phone
Fax:
(562) 431-3538
(562) 493-1255
APPROVED AS TO FORM
By:
City Attorney
Dated
[Signatures Continued on Page 16]
15
CITY OF MISSION VIEJO
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Mission Viejo
25909 Pala, Suite 150
Mission Viejo, CA 92691
Phone: (949) 470-3000Fax: (949) 859-1386
APPROVED AS TO FORM:
City Attorney
Dated
By:
Mayor
By
[Signatures Continued on Page 17]
16
CITY OF PLACENTIA
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Placentia
401 E. Chapman'
Placentia, CA 92870
By:
Mayor
Phone
Fax:
(714) ee3-8117
(714\ 961-0283
APPROVED AS TO FORM:
By:
City Attorney
Dated
[Signatures Continued on Page 18]
17
Dated
ATTEST:
City Clerk
NOTICE TO CITY TO BE GIVEN TO:
City Manager
City of Rancho Santa Margarita
22112 El Paseo
Rancho Santa Margarita, CA 92688
CITY OF RANCHO SANTA MARGARITA
By
Mayor
Phone
Fax:
(e4e) 635-1 800
(e4e) 635-1 840
APPROVED AS TO FORM
City Attorney
Dated
[Signatures Continued on Page 19]
l8
CITY OF SAN CLEMENTE
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of San Clemente
100 Avenida Presidio
San Clemente, CA92672
By
Mayor
Phone
Fax:
(949) 361-8322
(94e) 361-8283
APPROVED AS TO FORM:
By
City Attorney
Dated
[Signatures Continued on Page 20]
19
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
CITY OF SAN JUAN CAPISTRANO
By
Mayor
Phone:
Fax:
(949) 443-6315
(949) 493-1 053
APPROVED AS TO FORM
By
City Attorney
Dated
[Signatures Continued on Page 21]
20
CITY OF SANTA ANA
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
By
Mayor
Phone
Fax:
(714) 647-5200
(714) 647-6956
APPROVED AS TO FORM
By:
City Attorney
Dated
[Signatures Continued on Page 22]
21
CITY OF SEAL BEACH
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Seal Beach
211 9th Street
Seal Beach, CA 90740
By
Mayor
Phone:
Fax:
(562) 431-2527
(562) 431-4067
APPROVED AS TO FORM:
By:
City Attorney
Dated
[Signatures Continued on Page 23]
22
CITY OF STANTON
Dated
ATTEST:
City Clerk
NOTICE TO CITY TO BE GIVEN TO:
City Manager
City of Stanton
7800 Katella Avenue
Stanton, CA 90680
By:
Mayor
Phone
Fax:
(714) 37e-9222
(714) 890-1443
APPROVED AS TO FORM
By
City Attorney
Dated
[Signatures Continued on Page 24]
23
CITY OF TUSTIN
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Tustin
300 CentennialWay
Tustin, CA 92780
By
Mayor
Phone:
Fax:
(714) 544-8890
(714) 832-0825
APPROVED AS TO FORM
By:
City Attorney
Dated
[Signatures Continued on Page 25]
24
CITY OF VILLA PARK
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO:
City Manager
City of Villa Park
17855 Santiago Blvd
Villa Park, CA 92861
By
Mayor
Phone
Fax:
(714) 9e8-1500
(714) 998-1508
APPROVED AS TO FORM
City Attorney
Dated
[Signatures Continued on Page 26]
25
CITY OF WESTMINSTER
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Westminster
8200 Westminster Boulevard
Westminster, CA 92683
By:
Mayor
Phone:
Fax:
(714) 8e8-3311
(714) 373-4684
APPROVED AS TO FORM:
By:
City Attorney
Dated
[Signatures Continued on Page 27]
26
CITY OF YORBA LINDA
Dated
ATTEST
City Clerk
NOTICE TO CITY TO BE GIVEN TO
City Manager
City of Yorba Linda
4845 Casa Loma Avenue
Yorba Linda, CA 92885-8714
By:
Mayor
Phone
Fax:
(714) e61-7100
(714) 993-7530
APPROVED AS TO FORM
By:
City Attorney
Dated
27