HomeMy WebLinkAboutNB 3 FIRE PROTEC DIST 03-01-93NEW BUSINESS N0. 3
3-1-93
AGENDA
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DATE: FEBRUARY 24 1993 I n t e r- C o m U S T1�
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: WILLIAM A. HUSTON, CITY MANAGER
SUBJECT: FIRE PROTECTION DISTRICT - PHASE III STUDY
RECOMMENDATION:
That the City Council authorize the City to participate in Phase III of
the fire protection district study.
FISCAL IMPACT:
The City's share of Phase III of the study is $4,900. The full cost of
$82,654 is divided on an equal basis between the County and the sixteen
cities involved in the study. The City's share can be covered by
expenditure savings in the 1992-93 General Fund budget.
DISCUSSION:
The City Council previously authorized the City's participation in the
study concerning the feasibility of creating a fire protection district.
The first two phases of the study have concluded that it is economically
and organizationally feasible to create a fire protection district. The
district would be administered by the County and twelve cities that
presently make up the County's structural fire fund (these are the
cities that have a separate tax rate for County fire services). The
four cash contract cities, which includes Tustin, would contract with
the district for three years from the date of formation of the district.
At the end of three years, the City would have the option of continuing
to contract with the district or becoming a full member of the district.
Full membership would require that a portion of the City's property tax
rate be allocated to the district. This decision can be made by the
City Council after a complete analysis by the City concerning the cost -
benefit of contracting with the district, joining the district, or
another option.
The City has participated in the negotiations with the County over the
past eighteen months. An agreement, in principal, concerning transfer
of assets; risk management/liability; transfer of property taxes to the
district; services to be provided, etc. has been reached. The
City/County bargaining team is in the process of drafting a letter of
understanding for submittal to the Board of Supervisors and sixteen City
Councils. The letter of understanding and final feasibility study will
be submitted to the City Council within thirty days. In the interest of
time, due to deadlines that must be met to achieve the January 1, 1994
Fire Protection District - Phase III Study
February 24, 1993
Page two
formation date, it is necessary to proceed with Phase III of the study
as soon as possible. Phase III will handle the processing of an
application through the Local Agency Formation Commission (LAFCO),
processing special state legislation concerning the transfer of property
taxes to the district and development of a transition plan. The
transition plan covers the details of transferring responsibilities of
the fire department from the County to the district.
From the City of Tustin's standpoint, its' continued participation in
the formation negotiations and agreeing to contract with the district
for at least three years following its' formation is beneficial. It
will be to the City's advantage to resolve issues concerning the basis
for setting the fire service contract price, levels of service, etc.
through a fire district rather than the present arrangement.
Staff will make a detailed presentation to the City Council when the
full study and resolution concurring with formation of the district are
submitted to the City Council next month.
WAH
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