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Home My WebLink AboutN.B. 2 - DRAFT FINAL REPORT, PHASE 1i BTT Ni DUSIN SS 00. SHANNONOASSOCIATES S Draft Final Report, Phase I An Evaluation of Financial Feasibility for an Orange County Fire Protection District mbmitied by: Shannon Associates, Inc. 1400 K Street, Suite 311 Sacramento, California 95814 916/447-8022 October 24, 1991 1 1 1 ti 1 a 1 1 7 1 1 1 J 1 1 PROJECT CONSULTING TEAM Phase I Shannon Associates, Sacramento, California Mr. John Shannon, Project Manager Mr. John McMillan, Consultant Economic and Planning Systems, Berkeley, California Mr. Walter Kieser, Principal ,Mr. Richard Berkson, Consultant Fire Loss Management Systems, Mountain View, California Robert Burns, Principal The Davis Company, Sacramento, California Mr. Michael Davis, Principal A • • ' ACKNOWLEDGEMENTS The Project Team wishes to acknowledge the special assistance of staff from the Cities and 1 the County as listed below: ' Project Steering Committee (City Managers or designees of the following cities) Cypress Placentia ' Dana Point San Juan Capistrano 0 Irvine Seal Beach Laguna Niguel Stanton ' La Palma Tustin Los Alamitos Villa Park Mission Viejo Yorba Linda 1 County of Orange Mr. Larry Holmes, Fire Services Director Mr. Kent MacLeod, Deputy Fire Services Director ' Mr. Chip Prather, Assistant Chief Ms. Joan Steiner, Financial Services Manager, Fire Department Mr. Ron Rubino, Deputy County Administrative Officer Mr. John Wolin, Senior Administrative Manager Mr. Jim Colangelo, Executive Officer, LAFCO City of Irvine - Project Coordination Mr. Paul Brady, Jr., City Manager Ms. Allison Hall, Assistant City Manager Mr. Larry Larsen, Executive Assistant Mr. John L. Fellows III, City Attorney, Irvine Special Legal Counsel ' Ms. Elizabeth Hanna, Rutan & Tucker, Costa Mesa, CA TABLE OF COAs Transmittal Letter General Background • 1 Findings and Conclusions 4 Existing Fire Service Delivery System 6 Financial Feasibility of a Fire District 15 Forming a Fire District 24 Implications of Optional Service Standards 32 Appendices A - Profile of Current Fire Services B - Assessed Values by Jurisdiction C - Technical Schedule: Ten Year Forecast of Revenues and Cost (Submitted under separate cover) • 0 SHANNON OASSOCIA MS October 24, 1991 Fire Equity Steering Committee % Mr. Paul Brady, City Manager City of Irvine One Civic Center Plaza Irvine, California 92714 Dear Committee Members: Enclosed is a draft report of our findings and conclusions on the financial feasibility of forming an Orange County Fire Protection District. It is our conclusion that a fire district will be practical and feasible provided that the new district will receive 100% of all existing Structural Fire Fund property tax revenue. The revenue required includes that portion of the Structural Fire Fund income which is currently allocated to the Special District Augmentation Fund. In order to assure that this precondition will occur, all of the fire services now provided to cities receiving Structural Fire Fund revenue must be assumed by the new district. Although a new fire district will be feasible under the aforementioned conditions, either a district or the current county governed program can expect to undergo significant fiscal challenges in the future. We have forecast the financial condition of the fire department through the year 2001. More than sufficient revenue is expected to be available each and every year to pay the normal operating expenses for the existing service program, and to also have reasonable cash reserves available for emergencies and unforeseen circumstances. Current reserves are shown in the 1991-92 department budget to be approximately $ 8.6 million, or 8.4% of the total 91-92 appropriation. However, the department is confronted with significant growth within its service area. ' Much of this growth has already been approved by the County and the cities being served. Neither the County nor a new district will have sufficient revenue available to fund the ' expansion plans of the department as currently conceived. If current expansions proceed as planned, the fiscal condition of the department will theoretically be in a deficit situation from 1992-93 through 1998-99. The use of reserves, new revenue, the elimination or deferral J of expansion plans, other structural changes in the department's expenditures, or a combination of these actions will be needed. Cities need to be actively involved in these decisions. 1400 K Street, Suite 311 0 Sacramento, CA 95814 4 916/447-8022 J • • ' The fire service is also confronting unresolved concerns over equity among the cities and the unincorporated areas as to the allocation of revenues and costs. These issues cannot be fundamentally addressed until a decision is made to proceed or not proceed with 1 formation of a fire district. A district has numerous options available to it for tailoring service levels, costs, and revenues to the demands in discrete parts of the fire service area. The resolution of these concerns needs to be a high priority for a new fire district, or any ' other governance alternative that would give cities direct control over key fire service policy questions that affect their community. Four cities now pay for fire service with cash payments to the County. Fire service tax allocation factors do not exist for these cities. We have estimated that the cost to these cities will increase between 10% and 20%, and in one instance up to 25% depending on new service expansions. These cost increases will not be caused by the formation of a fire district. Rather they are increases that can be expected if current events proceed, and if the old Cost Allocation Plan Formula (CAP) is re -instated. If a decision is made to proceed with formation of a fire protection district, it is suggested that a proforma transition contractual agreement be reached with the cash contract cities before a district is formed. This will allow the current fire service program to remain stable, both for these cities and the fire department, while practical solutions to the equity concerns are sought. Two new cities (Lake Forest and Laguna Hills) will emerge from the unincorporated area later this year. While this feasibility evaluation does not separately consider the implications of district formation for these new cities, the factors that affect these jurisdictions have been included in the analysis for the unincorporated area. We will be pleased to discuss the implications of this study with Laguna Hills and Lake Forest city officials at their convenience. Phase I of this project has been completed in a very short time frame due to the significance of pending policy decisions about the future of the fire service. We could not have accomplished this goal without the excellent cooperation of the cities and the County. We look forward to reviewing this feasibility study with you. • Sincerely, esidnSannon 1 ' GENERAL BACKGROUND 1In 1980, the County of Orange assumed fire service delivery responsibility from the California Division of Forestry. The new fire department initially served the county unincorporated area and nine cities. Since 1980, the County Fire Department has become ' one of the largest regional fire service programs in California. The department currently serves a population of approximately 800,000 residents in an area that is about 524 square miles. Approximately one-half of Orange County's cities with almost one third of the county's total population now receive fire protection services from the County. Two new ' cities (Lake Forest and Laguna Hills) have recently incorporated. Thus, by January, 1992, sixteen of the County's thirty-one cities will be served by the County Fire Department. • Approximately eighty-five percent of the department's total service area is now within incorporated areas, compared to approximately fifty per cent when the department was formed. The size and scope of the department's operations and service responsibilities have changed significantly in response to this growth. The County's initial budget for fire services upon assumption of the service program from CDF was $25.7 million. The department's ' most recent budget (fiscal year 1991-92) is $102.7 million - a four fold increase over twelve years. In addition to absorbing new service areas when some cities transferred their fire operations to the County, the department has also added major activities related to ' hazardous materials and emergency medical services. Today, the fire department employs over 600 career firefighters who work out of forty-seven fire stations. The entire program is governed by the County Board of Supervisors. These significant changes have occurred in an era of revenue and expenditure limitations for California's local governments. It is estimated that at least seventy five percent of the total cost of fire service is currently funded from property taxes. Property taxes are received either directly from the Structural Fire Fund, or indirectly through the Special District Augmentation Fund, and cash payments from four contract cities. In comparison, between twenty-five and thirty-five percent of the total cost of all services provided by most general purpose local government entities in California is typically funded by the property tax. Considering the constitutional limitations on both property tax revenues and expenditures, fire service managers have much less flexibility when it comes to financing service activities. As a result of changes that have occurred since the department was initially formed two major concerns have evolved among the cities. These concerns are related to: • The cities' lack of control of the growth and management of the department, and 41 Orange County Fire Protection District page 1 • • • Meeting the region's future fire service needs in the most cost effective manner. The process of re-examining the county fire service program began more than two years ago when the County completed a fire master plan. The Orange County Fire Department Master Plan, published in August, 1989, included a projection of future fire service resource requirements (i.e. property, equipment, and staffing), an analysis and projection of future financial resources, and an evaluation of the equity features of the current funding program. In addition, the Master Plan also identified several institutional or governance alternatives for expanding the policy \ management role for the cities. In August, 1990, the Orange County Board of Supervisors directed the County Administrative Officer to work with the Fire Department, and its client cities to address their concerns. A Steering Committee comprised of county administrative and fire officials, and city mangers was formed to undertake this task. In May, 1991, the Steering Committee published its report entitled Fire Financial Equity Study, Phase I. The recommendations of that report were as follows: 1. Redefine the purpose of the Fire Equity Study to study organization alternatives and funding strategies for the future. 2. Direct that the study be co-chaired by the County Administrative Officer and by a City Manager, designated by the cities. 3. Establish in the. study a transition plan which, as a goal, will put the new structure in place by June 30, 1992. 4. Direct the Fire Department to contain or reduce cost within the existing level of service; and assure Special District Augmentation Fund support to the fire department equal to the Structural Fire Fund contribution (to SDAF) during the study and transition period. 5. Extend existing fire service city contracts on a year -by -year basis during the study and transition period and retain any new city incorporations within the Structural Fire Fund. 6. Direct the Fire Department to proceed with action to implement new Fire Prevention Fees effective July 1, 1991. 7. Rescind Resolution No. 90-1129, which implements Paramedic Fees. In addition to the above listed recommendations, the Fire Financial Equity Study, Phase I also enumerated seven major goals that should guide future evaluations of service delivery, and governance alternatives. The recommendations were approved by the Board of Supervisors, and the fire service goals, as listed below, were approved by the Board of Supervisors, and each city. 1 Orange County Fire Protection District page 2 1. Retain the regional approach to fire services for the unincorporated area and all cities within the Structural Fire Fund or those cities which purchase services on a contract basis. 2. Continue to plan and operationally administer the regional fire system on a basis of providing services from the closest resources regardless of government entities' boundaries. 3. Provide equal representation on a new Regional Fire Services Governing Board for all participating agencies regardless of size within the limitation of statutes. 4. Provide a mechanism for future additions or deletions of agencies from the Regional Fire Services entity. 5. Develop an equitable long range financial plan for allocating costs and providing necessary funds, (i.e. property taxes, special district organization, fee programs. contracts, etc.) for operational and capital requirements which maintain the level of service. 6. Provide an approach for County and Cities to continue using mechanisms to negotiate with developers for Development Fee Programs and/or Development Agreements, which provide funding for fire stations and capital equipment. 7. Continue 'level of service" planning using the CAO Forecasting & Analysis Center population database and formulas. This provides for a population \ geographical basis for planning a uniform level of service based on response time standards. As a consequence of these events, and in preparation for further discussions and studies with the County, the cities have chosen to pursue formation of a fire protection district under the Fire Protection District Law of 1987. Before filing an application with the Local Agency Formation Commission to begin district formation proceedings, the cities have undertaken this effort to assess the financial feasibility of the proposed district. 41 Orange County Fire Protection District page 3 • FINDINGS AND CONCLUSIONS • This report evaluates the financial feasibility of reorganizing the Orange County Fire Department into a fire district. The Project Team has worked closely with the County Fire Department to review and up -date information on the financial condition of the department. Each city now served by the department has assisted by reviewing economic and growth projections which are crucial for evaluating long term service and financial requirements. The City Manager, or a designee from each city has assisted by monitoring the study process and by providing advice on key service policy questions. The findings and conclusions of the assessment regarding the feasibility of forming a fire district are as follows: Financial Feasibility of a Fire District • It is fiscally feasible and practical to form a fire district assuming that all cities currently served by the County Fire Department, and the unincorporated area become part of the new district. A decision by one or more cities to not join the district could adversely effect the financial feasibility of the district. The analysis would have to be revised to reflect the changed revenue\expenditure conditions. • A new district will receive 100% of all Structural Fire Fund property tax income, including the property taxes that are now deposited in the Special District Augmentation Fund, if the district assumes all fire services now provided to the cities that receive Structural Fire Fund services. • Operating revenue is projected to grow from its current base of $ 88.5 million, to approximately $ 111.0 million over the next ten years (constant 1991 dollars), and to exceed the department's annual operating cost in each and every year. This positive fiscal condition is weakened significantly when operating costs for new stations are taken into consideration. • Current plans for expanding the department's physical plant, apparatus, equipment, and personnel will add new annual costs amounting to $ 5.6 million in 1992-93, $10.1 million in 1996-97, and $16.8 million by 2001-02. • Unless fundamental decisions are made to reduce or defer planned expenditures (primarily for new stations and company costs), or to increase revenue, deficits are likely to occur in each year over the next seven years. Since the department is prohibited by law from operating in a deficit condition, this circumstance could negatively impact the department's service delivery capacity. • These conditions will affect fire service whether service is provided by the County, or a new fire district. 1 Orange County Fire Protection District page 4 • Formation of a fire district is not expected to negatively impact the county, or any individual city. Issues regarding growth management and planning within the fire service, and equity among the cities, and the cities and the county must be resolved under either a fire district, or the county fire department governance structure. • The Cost Allocation Plan formula no longer meets the needs of either the fire service or the cities, and should be revised in favor of a "share of cost" formula that also reflects changes in level of service requirements. • The relocation cost alone for a new fire headquarters facility has been estimated by the department at $17.0 million, although no specific plan to fund such an effort has been approved. While a new facility might be desirable, it is only one of a number of options now being evaluated by the department to address its space needs. Such a project would have to be determined to be economically viable whether a district is formed or not. • The cost associated with a transfer of facilities to a new fire district is undetermined, but has been estimated by the County to be up to approximately $ 14.7 million. Special Legal Counsel for this project has advised that as a matter of law assets should transfer at no cost along with the services that are assumed by the new district. However, if there is a cost for the transfer of assets at the level estimated by the County, this will have a significant fiscal impact on the new district. Operational Implications of Forming A Fire District ' A new fire district, formed from the existing fire department, will not experience a significant change in operating cost as it assumes responsibility for functions currently provided by county departments. Current "cost applied" from county service departments to the fire department will be replaced by increased district cost, or contracts for administrative support. ' The department\district should develop specific service level standards in all primary service areas, i.e. suppression, prevention, and emergency medical\rescue. These standards should be established based on regional service delivery needs, and should be regarded as the "basic standard" for all participating agencies. • Agencies that require, or desire a service level that is above the "basic standard" should be required to compensate the district for the added service. ' Consideration should be given to establishing special benefit zones as a means of organizing services, and assessing cost above the "basic" level, or for other M special purposes. Orange County Fire Protection District page 5 • 1• EXISTING FIRE SERVICE DELIVERY SYSTEM The Orange County Fire Department is now the largest fire service delivery system in Orange County, and one of the largest fire protection organizations in the State of California. A detailed factual profile of the fire service organization is included in Appendix A to this report. SERVICE AREA & DEPLOYMENT OF RESOURCES The department's approximate 524 square mile service area is divided into seventeen political jurisdictions, including the County and the two recently incorporated cities of Lake Forest and Laguna Hills. The cities served by the County Fire Department include: Cypress Mission Viejo Dana Point Placentia Irvine San Juan Capistrano Laguna Hills (effective 12/91) Seal Beach Laguna Niguel Stanton Lake Forest (effective 12/91) Tustin La Palma Villa Park Los Alamitos Yorba Linda The department's service area is non-contiguous and includes virtually all parts of the County. A Protection Area map, provided by the department, is shown on Exhibit 1. The service area is organized into three major divisions for the purpose of deploying and managing resources. Each division is comprised of two 'battalion" sectors. Resources are deployed based on a "regional service philosophy'; personnel and equipment are assigned, and respond to emergency incidents without regard to jurisdictional boundaries. Division I. Battalion 1 Cypress Seal Beach La Palma Stanton Los Alamitos Division I. Battalion 2 Placentia Yorba Linda 41 Orange County Fire Protection District page 6 • Division II, Battalion 3 Tustin Villa Park Division III, Battalion 4 Dana Point Lake Forest Mission Viejo • Division II, Battalion 5 Irvine Division, III, Battalion 6 Laguna Hills Laguna Niguel San Juan Capistrano Within the service area described above the California Division of Forestry has contracted with the County for the protection of over 175,000 acres (approximately 273 square miles) of wild land area. In addition, the department has mutual aid agreements with all other municipal fire departments within Orange County, and with surrounding counties and cities. The department employs over 800 career firefighters and administrative staff, plus approximately 600 paid \ on-call firefighters. These resources are distributed among forty seven fire stations and the department's headquarters on Water Street in the City of Orange. The specific location of each station, and a detailed description of the personnel and equipment assigned to each station are included in the Factual Profile, Appendix A. ORGANIZATION OF SERVICE AC 7VITTES The County Fire Department is professionally managed by an appointed Director of ' Fire Services, a Deputy Director, and subordinate safety, and civilian managers. The Director of Fire Services reports directly to the County Board of Supervisors. All operational and administrative service activities are organized into four major units (Bureaus). These are the Operations, Fire Prevention, Support, and Administration bureaus. The service functions of each Bureau are briefly described below. • Operations Bureau - All basic fire suppression activities, and day-to-day emergency medicalVescue activities conducted by the three geographical ' divisions are organized within this bureau. The bureau is managed by an Assistant Director of Fire Services. • Fire Prevention Bureau - This bureau is comprised of a fire incident investigations unit, the office of the Fire Marshal, and the Hazardous Materials Program Office. It is managed by an Assistant Director of Fire ' Services. The Fire Marshal's office includes activities such as: 1 Orange County Fire Protection District page 8 i=`= L m• m ■l m i m im m• m Em' m i ll i (IRE OPERAIIONS Asst Oir. Lire Svcs olvl sl ox 1 I I oi�ismnDenier Oi Vision Cnief DIVISION 111 PCF COORDINATION Di Viz ion Cnief Benalion Cnief NEAVV EQUIP Nl CRENS RVISORS .................... — DIRECTOR OF FIRE SERVICES DEPUTY DIRECTOR OF FIRE SERVICES IRE PREVENTION Amt Dir, fire SVice ............... —................. —................ OflANLE COUNO• STRATEGIC PLANNING ADN IH 6 SUPPORi SERVICES UPPOT nmt DiR r, Firs sea AONINISTRATION Amt Dir, Am„n hM HAZARDOUS DOe IENCI CKRKO SERVICES inr e ymr. VtBetlloo[of A6nintaei vvNens9er Ac[txntin9AR�st ing Ngr. !IR[ MNISHK Olvi al on [n ief COSWNICAiIOMS iflA IM IN4 WNI NIStRAT1VC SCRVIC6 CKRLCKY PREPARCON� Oettelion Cnief Bet tenon [nl of Adnin b« et ive NeneOer Cmergrnq Nev9s^<m AIliO SERVICE CEXTER Bettelion Cnief m x x m N the review of new development proposals, plan check/engineering of new structures, up -dating of fire codes, and other special projects. wildland fire prevention activities. the department's Public Information office. code enforcement. disclosure of hazardous materials/locations. county -wide hazardous materials coordination. • Support Bureau - This bureau plans and manages internal support activities such as data processing, communications, training, and automotive services. In addition, planning and coordination for emergency medical service programs are assigned to this unit. The bureau is managed by an Assistant Director of Fire Services. • Administration Bureau - All general administrative support activities for the department are centralized in this bureau which is managed by a Senior Administrative Manager II. Unit functions include personnel, fiscal (accounting, payroll, and purchasing), facilities planning and management, and management analysis. OVERVIEW OF SERVICE DEMAND Exhibit 3 on the immediately following page includes a summary of the department's Casualty and Emergency Response Statistics as reported by the department for 1989. This summary provides an indication of the number and type of emergency incidents in all jurisdictions, including the County. Similar statistical data was compiled and reported for 1987, in the Fire Department Master Plan. A comparison of the 1989 and 1987 statistical data is provided below: 41 Orange County Fire Protection District page 10 1989 % of 1987 % of Incident Actual Total Actual Total Difference Diff. Str. Fire 987 2.3% 846 2.4% 141 16.7% Auto Fire 978 2.3% 928 2.7% 50 5.4% Oth. Fire 1,146 2.7% 864 2.5% 282 32.6% EMS 25,587 60.3% 22,066 60.3% 3,521 16.0% Haz. Mat. 1,374 3.2% 1,212 3.4% 162 13.4% Other 12.382 29.2% 9,053 25.9% 3.329 36.8 Totals 42,454 100% 34,969 100.0% 7,854 21.4% 41 Orange County Fire Protection District page 10 A M `■ M *M B160 M .i M An M L M,0 M Mir M i i i a a n 0 c 2 ?1 Orange County Fire Department 1989 Casualty and Emergency Responses 0 Emergency Hazardous Estimate Structure Fires Auto Other - Medical/Rescue Materials Other Total Losses G' Cypress 68 44 65 1,216 45 473 1,911 5307,885 3. Dana Point 25 38 48 1,045 47 461 1,664 298,630 Irvine 117 164 166 3,325 221 2,608 6,601 1,829,472 Laguna Niguel 7 3 2 71 5 34 122 108,750 La Palma 23 17 23 315 26 242 646 46,515 Los Alamitos 23 17 40 480 33 225 818 750,420 Mission Viejo 54 81 66 1,744 120 853 2,918 597,707 Placentia 124 52 90 1,308 88 796 2,458 568,630 San Juan Capistrano 27 48 36 1,078 47 444 1,680 995,380 Seal Beach 54 62 38 1,792 48 466 2,460 521,682 Stanton 72 71 107 1,807 74 717 2,848 548,390 Tustin 68 68 81 1,965 97 865 3,144 1,761,270 Villa Park 24 10 11 708 12 113 878 107,580 Yorba Linda 57 51 89 1,060 106 848 2,211 1,197,330 Unincorporated 244 252 284 7_,673 405 33297 12095 2,982,148 m x x TOTALS 987 978 1,146 25,587 1,374 12,382 42,454 12,621,789 03 'a o0 of TOTAL 2.3% 2.3% 2.7% 60.3% 3.2% 29.2% 100% 100% -1 oq ti w A comparison of service incident statistics is only one of several indicators which show that demand on the county fire service delivery system has grown steadily. Other growth indicators such as assessed values (i.e improved property), population, and employment reflect significant increases as well in recent years. The department appears to have generally been able to respond to the increases in demand for service. In 1980, when service responsibilities were first assumed from the California Division of Forestry, the new department served a population of about 511,000 from thirty seven fire stations. The initial department budget was approximately $ 25.7 million. Total assessed value in the service area at the time was approximately $ 4.4 billion. Today, the department serves a population of just over 800,000 (an increase of 57%). The total department budget has increased to approximately $103 million. Total assessed values in the expanded service area have grown to approximately $ 61.0 billion. The department now provides service from forty-seven stations. When adjusted for inflation (@ average of 5% annually) since 1980-81, the annual cost of fire protection has increased approximately $ 61.0 million. Almost all of this increase is attributable to service area expansions, and new service activities and capital costs that were not part of the department's expenditure plan during the early post CDF years. Overall, however, total revenues have generally kept pace with increases in service demand until recently. CURRENT FUNDING FOR FIRE SERVICE The 1991-92 county budget projects that approximately $ 61.7 million, of the fire department's total income of $ 102.7 million will be derived directly from property taxes. Within ten of the fourteen cities, plus the unincorporated area, a separate property tax (the Structural Fire Fund) is levied to pay for fire protection. Four cities (Stanton, Seal Beach, Placentia, and Tustin) do not have a separate tax levy and make cash payments to the county. Together, these funding sources account for approximately seventy eight percent of the department's revenue excluding fund balances. The remaining income is derived primarily from user fees. Property taxes are allocated to meet fire service cost in two ways as follows: • Structural Fire Fund (SFF) - Ten of the current 14 cities served by the County Fire Department, plus the unincorporated area have established tax allocation factors (i.e. tax rates) that generate income that is exclusively reserved to pay the cost of fire service. This revenue is placed in the SFF. The newly incorporated cities of Lake Forest and Laguna Hills will continue to contribute to this fund. Forty percent of the income to this fund is retained in the fund, and is applied directly to the cost of fire service. The remaining sixty per cent is allocated to the Special District Augmentation Fund. 1 Orange County Fire Protection District page 12 • Special District Augmentation Fund - After the passage of Proposition 13, the State chose to require that a portion of the State bailout revenue be placed in a "Special District Augmentation Fund" for allocation among special districts at the discretion of the Board of Supervisors. From that time forward sixty percent of the Structural Fire Fund revenue has been placed in the SDAF. In each and every year since SDAF was established, the County has applied those SDAF funds that are received from the SFF to the cost of providing fire service. Prior to 1978-79, a "single tax rate" was levied within all cities in the Structural Fire Fund. The recalculation of special district tax rates following the passage of Proposition 13, and AB 8 resulted in a different tax allocation factor for each taxing entity. Current tax allocation factors range from a low of 0.082647 in Yorba Linda to a high of 0.116771 in Irvine. The median tax burden is 0.102525. Each city's and unincorporated area's tax allocation factor is listed below: Cypress 0.085284 San Juan Capistrano 0.107892 Dana Point 0.105525 Sea] Beach None Irvine 0.116771 Stanton None Laguna Niguel 0.102525 Tustin None La Palma 0.095519 Villa Park 0.097185 Los Alamitos 0.094144 Yorba Linda 0.082647 Mission Viejo 0.102546 Unincorporated 0.104029 Placentia None ALLOCATION OF COST FOR CASH CONTRACT CITIES In 1981, a Cost Allocation Plan formula was established as a means for annually adjusting fire service cost to the cities that are not part of the Structural Fire Fund. The "CAP System" determines cost adjustments based on changes to: • Population • Assessed value of improvements only • Alarms • Service area in square miles Since the regional fire service system is presumed to provide a single level of fire protection to all participants, the CAP formula is a means for calculating annual adjustments without regard to service level changes in a single jurisdiction. In recent years, 1990 and 1991, adjustments for cash contract cities have been established at levels lower than defined by the CAP formula. Concerns regarding equity in the current financing system have evolved in recent years due to: 41 Orange County Fire Protection District page 13 • • • a concern over the accuracy of the CAP formula. • a concern that some cities to pay more (or less) than their fair share of fire service cost. • a perception that the financing system needs to take into consideration that some areas may realistically require a lesser, or higher level of service than the regional standard. The 1989 Master Plan evaluated numerous future revenue options for the department. All forecasts in that study projected future operating deficits as new cost for stations and fire companies are incurred due to growth within the system - particularly in the central and southern parts of the service area. This feasibility evaluation again confirm's that fundamental policy choices need to be made to increase revenue, eliminate or defer costs, or a combination of these actions. These fundamental challenges face the department whether it continues to function as a department of county government, or as a fire district. These issues are discussed further in the chapter on "financial feasibility". 1 Orange County Fire Protection District page 14 FINANCIAL FEASIBILITY OF A FIRE DISTRICT In order to forecast future revenues and appropriations facing the proposed Fire District, EPS developed a 10 -year proforma Budget Model. The Budget Model generates projections of costs and revenues based upon a variety of data and assumptions described below, including historical fire department budget data, current budget data and trends, and forecasts of development and fire service requirements. Detailed documentation of key Budget Model assumptions and calculations is included in an appendix to this report that is provided under separate cover. Exhibit 4 summarizes a ten year hypothetical projection of revenues and appropriations for the proposed Fire District (in constant 1991 dollars) beginning with the 1991-92 adopted budget. Current year (1991-92) unaudited fund balances and reserves from all sources are projected in the 1991-92 department budget to total approximately $19.9 million. This amount includes reserves totaling approximately $8.59 million that are shown as "appropriated" in the department's budget, and are therefore not carried forward into future years. Disposition of these reserves should be a high priority discussion item between the cities and the County. Current reserves are roughly equivalent to 8.4% of the department's annual budget. A fund balance amount is projected to be carried forward in each year of the forecast. However, carry-over balances are projected at a much lower level than the current 41 year balance of $11.26 million since this amount is extraordinarily high compared to prior years. FINANCIAL CONDITTON OF THE DEPARTMENT Similar to other California public agencies, the County Fire Department faces fiscal challenges. The department serves an area that has been a rapidly growing region which has generated demand for fire protection and related services. At the same time revenues have been growing at a slower rate, due in large measure to the effects of the constitutional limits on property taxes. The department has responded to these challenges in a number of ways, including the use of reserves to fund operations; deferred maintenance and other reductions in operating expenditures; the use of paid call firefighters; increased overtime in -lieu of increased staff; increased dependence upon Special District Augmentation Funds; and recently through the generation of new revenue sources, i.e. fire prevention fees. The 1991-92 budget shows significant fund balances available from the prior year, due to reduced and deferred spending in the prior year. These balances are being used to rebuild reserves and restore expenditures (e.g. for maintenance and vehicle replacement) to an acceptable level. Orange County Fire Protection District page 15 I D N Q Stxaaary -- Forecast of Operations (1991 dollars) notes GEVENUES -- Ocwrations(FUBU 1211) Furl Balance Available Grope rty Tax Cash Contract Cities Other Contracts 8 Reintursements User Fees Other Revenues SUBTOTAL Other Budget Units ---------- I ............. .---- lire ACO (1231) Vehicle Replacement (1.2.32) Communications (1241) Developer Fee (1421) E,rgency Mgmt (0121) Pat -Mot Disclosure (0255) ^.,t -Mat Program Office (0260) SUBTOTAL TOTAL Revenues APPROPRIATIONS Fire Operations Salaries 8 Employee Benefits Services and Supplies Other Charges Equipn,nt Miscellaneous SUBTOTAL Other Budget Units ............................. Fire ACO (1231) Vehicle Replacement (1232) C annum ications (1241) Developer Fee (1421) Emergency Mgmt (0121) Nnt-Mat Disclosure (0255) Mat -Mat Program Office (0260) SUBTOTAL TOTAL Appropriations ANNUAL BALANCE (before new companies) 1 M i M U� e m me M i M i Forecast, fiscal year: Adopted........................................................................................................................ 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1908-99 1999-2000 2000.01 2001-02 11,268,592 4,851,240 4,907,768 4,888,760 4,974,482 5,128,923 5,422,103 5,408,139 5,432,607 5,502,963 5,531,241 61,712,668 63,949,283 66,280,933 68,601,676 71,022,478 73,420,282 75,917,273 78,517,868 81,226,692 84,048,587 86,988,627 10,052,205 10,253,249 10,254,254 10,356,797 10,460,365 10,564,968 10,670,618 10,777,324 10,885,098 10,993,949 11,103,888 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 3,904,576 • 1,027,986 1,848,548 1,898,861 1,946,643 1,995,460 2,045,015 2,096,120 2,147,607 2,200,864 2,255,896 2,297,495 598,265 1,235,107 1,270,242 1,306,704 1,344,702 1,382,386 1,421,601 1,462,396 1,504,860 1,549,144 1,595,053 88,564,292 86,042,004 88,516,634 91,005,156 93,702,063 96,446,151 99,432,292 102,217,911 105,154,698 108,255,114 111:420,EE4 7,162,21.1 0 0 0 0 0 0 0 0 0 0 3,104,355 148,808 148,808 148,808 148,808 148,808 148,808 148,808 148,808 148,808 148,8°e 283,290 283,290 283,290 283,290 283,290 283,290 283,290 283,290 283,290 283,290 293,290 1,694,248 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 779,111 779,111 779,111 779,111 779,111 779,111 779,111 779,111 779,111 779,111 779,111 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 14,178,363 3,738,866 3,738,866 3,738,866 3,738,866 3,738,866 3,738,866 3,738,866 3,738,866 3,738,866 3,738,866 102,742,655 89,780,870 92,255,500 94,744,022 97,440,929 100,185,017 103,171,158 105,956,777 108,893,564 111,993,980 115,159,75-- 64,678,491 15,159,75[ 64,678,491 65,001,883 65,326,893 65,653,527 65,981,795 66,311,704 66,643,262 66,976,479 67,311,361 67,647,918 67,986,15` 12,823,114 12,887,230 12,951,666 13,016,424 13,081,506 13,146,914 13,212,648 13,278,712 13,345,105 13,411,831 13,478,87[ 608,815 608,815 0 1,855,591 1,874,147 1,892,888 1,911,817 1,930,935 1,950,245 1,969,747 1,989,445 2,009,339 2,029,433 2,049,727 8,598,281 0 0 0 0 0 0 0 0 0 88,564,292 80,372,075 80,171,447 80,581,769 80,994,237 81,408,862 81,825,658 92,244,635 82,665,805 83,089,181 83,514,774 7,162,241 4,347,220 4,347,220 4,347,220 4,347,220 4;347,220 4,347,220 3,581,121 3,581,121 3,581,121 3,581,12'. • 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 3,104,355 283,290 283,290 283,290 283,290 283,290 283,290 203,290 283,290 283,290 283,290 283,257 1,694,248 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 1,372,539 779,111 779,111 779,111 779,111 779,111 779,111 779,111 779,111 79,111 779,111 779,111 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 615,638 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 539,480 14,178,363 11,041,633 11,041,633 11,041,633 11,041,633 11,041,633 11,041,633 10,275,534 10,275,534 10,275,534 10,275,534 102,742,655 91,413,708 91,213,080 91,623,402 92,035,870 92,450,496 92,867,291 92,520,168 92,941,339 93,364,715 93,790,3C8 0 (1,632,838) 1,042,420 3,120,620 5,405,059 7,734,521 10,303,866 13,436,608 15,952,225 18,629,266 21,369,412 New Company Costs (after 1991-92) 5,438,090 6,330,229 5,492,606 6,644,561 8,384,210 13,571,004 13,638,860 13,707,054 14,671,269 14,744,626 m X New Stntion Construction/Acquisition 0 0 0 0 674,414 674,414 674,414 674.414 674,414 674,414 2 New Station Maintenance 0 400,000 466,667 400,000 466,667 726,667 726,667 726,667 726,667 793,333 Vehicles (new) 36,363 36,363 36,363 131,444 131,444 131,444 131,444 131,444 131,444 131,444 Co. vehicles (new) -- Maintenance 136,640 175,680 156,160 277,760 471,232 471,232 471,232 471,232 490,752 490,752 SUBTOTAL 5,611,093 6,942,272 6,151,796 7,453,766 10,127,967 15,574,761 15,642,616 15,710,811 16,694,546 16,834,569 A ANNUAL BALANCE (after new companies) (7,243,931) (5,899,853) (3,031,177) (2,048,707) (2,393,446) (5,270,895) (2,206,008) 241,414 1,934,720 4,534,873 Before taking new station and company costs into consideration, the fiscal condition of the department is sound. Revenues exceed appropriations in each year after the first. However, this scenario is not realistic over the long term and is shown only to dramatize the significant impact of service expansions on the fiscal condition of the department. Once new station and company cost are reflected, the department is projected to incur a deficit in seven of the next ten years. For example, the addition of new stations planned for the next fiscal year alone could add up to $5.6 million in additional annual operating costs. The department can respond to shortfalls in a variety of ways, including the methods it has historically used, plus actions such as: • Defer new station openings and/or engine company additions. • Increase existing fees and implement new fees (e.g. paramedic fees). • Increase price of existing contracts (e.g. revise CAP to reflect increased levels of service to specific contract cities). FISCAL IMPACTS OF REORGANIZATION TO FORM A FIRE DISTRICT The revenue and cost structure of the fire department would not be substantially altered by a reorganization to a fire district. A new fire district can be financially feasible assuming that it can overcome, in a manner similar to the fire department, cost increases and revenue deficiencies. During reorganization proceedings, LAFCO could impose conditions which could ' increase costs and/or reduce revenues to a limited degree; however, the likely magnitude of these conditions should not significantly affect feasibility of a district. There are several unresolved, potential cost items, including the acquisition of fire department assets from the County and the development of new headquarters facilities, which could create a substantial financial burden upon a new district. The most important question regarding feasibility of a new fire district involves its relative ability to deal with the structural revenue and cost conditions that currently affect the fire department. It is not anticipated that a new fire district, formed from the existing fire department would experience a significant change in operating costs as it assumes responsibility for functions currently performed by County departments. County "costs applied" will be replaced by increased district costs or contracts for continued service from the County. A new fire district can remain in the current 1937 Act Retirement Plan, and a review of risk management, workers compensation and related cost has not revealed any conditions that will result in significant cost changes. County records indicate that in most years between 1980 and 1991, the County allocated more to the fire service from the SDAF than was contributed to the SDAF from the Structural Fire Fund. While the ten year forecast does not include a continuation of this 11 Orange County Fire Protection District page 17 practice, as a special district a new fire district would still be entitled to seek an allocation of funds from the SDAF. Special Legal Counsel is researching the question of the cities' continuing receipt of additional funds from the SDAF over and above the amount of property tax revenue that is now received from the SFF. The County has estimated there may be a cost of up to approximately $14.7 million associated with the transfer of County facilities to a new fire district. Special Legal Counsel has indicated that as a matter of law the facilities should transfer at no cost along with the services that are assumed by the district. As a practical matter this will likely be an issue for negotiation with the County. If such a cost is incurred it will be essential that it be phased over time. To set out a worst case scenario, a ten year pay off period for $14.7 million @ a 5.0 % interest rate would cost a new district approximately $2.0 million annually through the year 2000. The District could incur additional capital costs, currently undetermined, which could affect future years' budgets. A major undetermined cost would be the future headquarters building. No location or target date has been established; however, it is estimated by the County Fire Department that relocation/moving costs alone could total $17 million. The County should not experience a significant financial impact, assuming that 100% of SDAF and Structural Fire Fund property tax revenues are transferred in whole to the District with no change in existing Tax Allocation Factors. The forecast assumes that Emergency Management and Hazardous Materials programs will continue to be provided by the fire service, and that the cost of these services will be offset by revenue from a contract with the County. Alternatively, one or both of these services could be retained by the County. The District should re-evaluate the current CAP methods in order to develop an approach which fairly and efficiently allocates costs to cash contract cities. In the meantime, the current "Cost Increase" CAP should be continued, with possible modifications to reflect significant increases in service levels to individual cities. METHODOLOGY AND KEY ASSUMPHONS In order to minimize potential budget shortfalls which may otherwise occur due to structural revenue deficiencies and new cost, the following revenue and cost assumptions have been reflected in the forecast: • Fund balances available equal 5.0% of revenue. • New fire apparatus associated with station growth are leased or lease/purchased rather than purchased. • Maintenance costs for new stations have been reduced in the first year of opening. 1 Orange County Fire Protection District page 18 Additional measures could be undertaken to reduce costs. Such measures could include deferred maintenance and postponed opening of new stations, or the imposition of new revenues such as the paramedic fee. The paramedic fee alone would generate approximately $5.5 million per year in new income, thereby turning the projected revenue/ appropriation condition from negative to positive without the postponement of stations, or maintenance deferral. Fund Balances Available ' The Fund Balance Available consists of the prior year's revenue balance and budgeted but unspent funds carried forward to the current year. In 1991-92, the Fire Operations Budget Unit (FUBU 1211) has a Fund Balance Available of $11.3 million due to reduced and deferred spending levels in the prior year. This money is being used primarily to help fund deferred capital improvements and to re-establish reserves which had been depleted to a marginal level. Typically, the total balance from all funds has ranged between 5% and 10% of the total appropriation. A 5% fund balance has been assumed in the forecast. Property Tax The primary source of revenue to the existing department is property tax generated by tax allocation factors (TAFs) for cities participating in the Structural Fire Fund (the average TAF is approximately 10 percent of the one percent base property tax rate). Sixty percent of the revenue generated accrues to the County's Special District Augmentation ' Fund (SDAF); however in recent years that SDAF share has been allocated back to the Department, resulting in no net gain or loss of SFF revenue. In fact, since 1980, County records indicate that approximately $18.4 million more has been allocated to the fire department from the SDAF, than was received by the SDAF from the Structural Fire Fund. Again, all SDAF revenue is allocated at the discretion of the Board of Supervisors. Significant growth in residential and commercial development in Orange County contributes to growth in property taxes received by the department. While the current recession is likely to slow the growth in revenues, continued growth is probable for at least five more years, until cities approach full buildout. The cash flow model incorporates forecasts of assessed value growth for each of the ten structural fire fund cities, and the unincorporated area. The total growth in assessed value averages over eight percent, ranging from four to ten percent per year (nominal dollars including inflation at 4.5 percent) varying within individual cities, or about a $5 million nominal increase in total property taxes per year. The forecast assumes the District receives 100 percent of property tax revenues generated, less increment within a County redevelopment area. The property tax is allocated to FUBU 1211 (operations), and assumed to be transferred to other funds as necessary. 1 Orange County Fire Protection District page 19 If adverse economic conditions continue, the forecasted property tax revenues could ' be lower than anticipated. For example, a 10 percent reduction in growth rates would generate approximately a [$4.5 million] increase per year rather than the expected [$5 million]. The effects of this reduction on service levels and upon the need for additional 1 revenue sources are likely to be experienced whether a district is created or not. In addition, if growth slows so does the need for new stations and related staffing/equipment. Contracts and Reimbursements Cash Contract Cities - Historically, the cost to cash contract cities were calculated according to a four factor methodology referred to as the Cost Allocation Plan (CAP). This approach equally weights population, the size of geographic area served, calls for service, and assessed value. Over the past two years, application of the CAP formula would have resulted in contract increases out of proportion to estimated costs of service. Consequently, the department utilized an alternative method which increased contracts in proportion to department -wide cost increases. The forecast applies the "Cost Increase" method which is currently being applied to the cash contract cities. If the Original Cost Allocation Plan is reinstituted in the future to set the cost to cash contract cities, their cost will likely be ten to fifteen percent greater than calculated by the "Cost Increase" method. In any given year, the variance could be greater for individual cities. An alternative method would reflect resource allocations and increased services to individual cities. Utilizing the "resource allocation" CAP estimate results in total cash contract revenues being 20 percent higher than the "Cost Increase" CAP. If a contract city adds a new station (e.q. as proposed in Tustin) its contract costs, under a "resource allocation" approach, would rise by 25 percent or more. Two newly incorporated cities will emerge in December from the current unincorporated area. It is assumed that the creation of these cities will not significantly affect the analysis and conclusions. These areas have been included in the analysis of the unincorporated area. Other Contracts - The department currently provides contract services to various other agencies. Although future changes are likely in the scope of the contracts, the forecast assumes the contracts cover the costs of services, thus creating no net cost or revenue to a future District. Other Reimbursements - The department receives other grants, including Home Owners Property Tax Relief (HOPTR). For purposes of the forecast, this item is included in the property tax estimates and is assumed to be an ongoing state subvention. User Fees The department currently receives user fees for fire prevention services. The forecast assumes that current rates continue into the future, adjusted for inflation and multiplied by population growth and calls for service. 11 Orange County Fire Protection District page 20 The County has adopted, but subsequently rescinded user fees for paramedic services. This revenue source has not been included in the ten year forecast of fire district revenues. However, new revenues, cost reductions/deferrals or a combination of both which is at least equivalent to same $5.5 million that would be generated by the paramedic fee needs to occur. Other Revenues "Other revenues" include primarily interest earnings. The forecast assumes that earnings are proportionate to the total revenues received by the District over the course of a year. Historically, interest earning have ranged from 1 to 2.5 percent of total other revenues; the forecast utilizes 1.5 percent. Revenues to Other Funds Fund Balances Available -- As described above for FUBU 1211, a fund balance of 5% is assumed for future years. The approximate $8.6 million reserve fund balance (i.e. miscellaneous line item) shown for Fiscal Year 91-92 is not carried forward. Property Tax -- As explained above, all property taxes received in future years are assumed to accrue to FUBU 1211, then transferred as necessary to other funds. Interest -- Interest earnings are conservatively assumed to continue at current levels, since no significant change of revenues are assumed to occur in other funds. Fee Revenues -- These revenues are assumed to cover costs in an equal amount; thus future fee revenue will offset costs and result in no net change. State and County Funds -- Emergency Management and Hazardous Materials programs, which are a function provided by the Department for the County, are assumed to continue to receive funding sufficient to cover costs associated with the programs. APPROPRIATIONS Salaries and Employee Benefits (S&EB) S&EB account for over 70 percent of the operations budget. In recent years, these costs have increased by the 'cost of living' index plus 0.5 percent due to cost increases for insurance, workers compensation, and related programs. Total S&EB costs have also increased due, to the addition of positions. The forecast assumes that S&EB costs increase at the rate of inflation plus 0.5 percent, in addition to costs added by new companies. New companies are assumed to be added in accordance with current plans and proposals being considered by the department. Precise timing of new companies will depend upon amount and type of new development, actual population growth and funding 11 Orange County Fire Protection District page 21 availability for new stations. The cost per new company does not include an increase of overhead positions. The costs are increased 0.5 percent over inflation. By the year 2001, S&EB costs due to the new companies will increase to over $14 million, or approximately 12 percent of total district operations costs in that year. Additional costs will also be incurred for station construction and maintenance, and vehicle acquisition and maintenance. Services and Supplies Services and supplies account for 13 percent of the operations budget. In addition to total cost increases due to staff expansion, costs have increased because of inflation and technological upgrading. The forecast assumes a 0.5 percent increase over inflation. Services and supplies associated with new companies are included in the costs of these companies. Other Charges This category currently includes debt service for communications equipment. The debt will be retired by 1993-94. The forecast assumes future communications equipment will be acquired through the Communications Fund (FUBU 1241). Equipment The 'Equipment" category includes purchases exceeding $1,000. The forecast assumes existing levels of expenditures are maintained at current levels. Miscellaneous (reserves) Historically, reserves have ranged from 10 percent of appropriations to an almost nonexistent level in recent years. The 1991-92 budget allocates over $8 million to rebuild reserves. The forecast assumes that the current level of reserves will be sufficient in future years, assuming that reserves are not drawn down to cover shortfalls. Fire ACO (FUBU 1231) Approximately 5 percent of total fire department appropriations are for station maintenance. The forecast assumes these costs continue, adjusted for inflation. In addition, the Department has an upgrade program to address asbestos and related problems; the forecast prorates upgrade costs over a 6 year period beginning in 1992-93. ' Land acquisition and station construction costs are assumed to be added in accordance with current plans and proposals being considered by the department. Maintenance of these stations is reflected by the line item for depreciation. Vehicle Replacement (FUBU 1232) ' The existing program for vehicle replacement totals $3.1 million per year. The 1 Orange County Fire Protection District page 22 forecast assumes this cost continues at the same rate, on average. New vehicles are depreciated assuming an average 12.5 year life. Other Funds Appropriations associated with other funds are assumed to be offset by revenues. For example, interest earnings in the Communications Fund (FUBU 1241) are assumed to be accrued and used as necessary for the purchase of equipment. Appropriations from the Developer Fee Fund (FUBU 1421) are assumed to equal available developer fee revenues. Emergency Management and Hazardous Materials Programs appropriations are assumed to equal user fees and County funding. POTENTIAL IMPACTS OF DISTRICT FORMATION UPON CITIES As discussed previously, the formation of the District will not in and of itself, create financial shortfalls beyond those which could be incurred under the current County Fire Department. One way or the other, financial problems (as predicted in the Baseline Budget Model) will have to be addressed. The more significant issue is the different ways the County may deal with shortfalls as compared to a fire district governed by an independent board of directors. One fiscal distinction between the department and a fire district is how the Special District Augmentation fund (SDAF) would be allocated. SDAF revenue, along with the Structural Fire Fund (SFF) have been the primary revenue sources for the fire department since its creation in 1980. In the past, the County has balanced the fire department budget through allocations from the SDAF. The Board of Supervisors has discretion over SDAF allocations to Special Districts; and, if a fire district were created the Board of Supervisors, would continue to control a primary revenue source to the District. Depending upon County budget priorities and the needs of other special districts, inadequate revenue could be provided to a district by the County, forcing a district to increase in other revenue sources. This potential problem will have to be addressed at the time of district formation. Special legislation will be helpful to confirm the limitations on the county's discretion over the Special District Augmentation Fund after a fire district is formed. Such legislation has been used in Sacramento and Santa Cruz counties. In the event of financial shortfalls due to service expansion, other increasing costs, or declining revenues, the County Fire Department or a district will need to reduce costs, increase use fees, raise contract costs, or seek special taxes. If shortfalls cannot be mitigated by cost reductions or user fees the first response would likely be to obtain additional revenues from the participating cities and unincorporated portions of the County. The Baseline Budget Model (Exhibit 4) assumes that fire service expansions occur as planned by the fire department and described on Exhibit 3. Under this scenario a shortfall of $7.3 million is predicted in 1992-93. Shortfalls continue each year through 1988- 89. Orange County Fire Protection District page 23 FORMING A FIRE DISTRICT Exhibit 5 on the immediately following page includes an overview of the process for forming a fire district. Formation proceedings are governed primarily by the Cortese - Knox Local Government Reorganization Act of 1985, and the Fire Protection District Law of 1987. THE FIRE PROTECTION DISTRICT LAW, 1987 In 1987, the legislature approved a series of sweeping changes to the statutes governing fire protection districts with the adoption of S.B 515 (Bergeson). These were the first major changes to the law since 1961, and were deemed necessary largely in response to a need for greater flexibility in the organization and financing of local fire services. For example, the 1987 Act added the following new features to the law: 1. The number of permissible governing board members was increased from five to eleven. Further amendments to the law in this regard may be helpful in structuring a governing board that is responsive to county and cities goals. 2. Fire districts have clear authority to charge user fees for services, but may not assess development exaction fees. Cities and counties may require exactions on behalf of a district. Districts may charge a fee for service rendered to other public agencies. 3. Most borrowing mechanisms available to all other local governments are now available to fire districts. In addition, fire districts may use the traditional 1911, 1913, and 1915 Acts to finance capital improvements. 4. The 1961 Act permitted districts to establish special fire protection service zones to pay for special facilities and services in a specific geographical area. This practice was expanded to permit a district to use a service zone to do anything that the parent district can do. 5. The new law gives districts the ability to charge special taxes (only upon two- thirds voter approval), and special fire suppression assessments in recognition of unique service requirements. Establishing the latter is similar to setting up special benefit assessments. 6. Large districts may use their local county's rules for contracting out for services, or may use the standard provided in the statute. In this instance the new features of fire district law significantly improve the cities' ability to achieve some of their specific goals, particularly those goals related to improving equity in the financing of fire services. For example, it will be practical for a new district 1 Orange County Fire Protection District page 24 • PROCESS FOR • FORMING A FIRE PROTECTION DISTRICT Exhibit 5 The basic laws governing the formation of a fire protection district are the Cortese - Knox Local Government Reorganization Act of 1985 (Government Code section 56000 et. al.), and the Fire Protection District Law of 1987. STEP ONE Petition or Resolution - The process to formally start district formation proceedings begins with the submittal to LAFCO of "either" a petition, signed by 25 per cent of the registered voters in the proposed district, or a resolution by "any" affected legislative body, plus a Plan for Providing Services. (Section 56650). S'T'EP TWO Certificate of Filine - Within thirty days of the (30 days) receipt of either a petition or resolution the LAFCO Executive Officer must determine if the petition or application (resolution) is complete. If complete, the Executive Officer issues a Certificate of Filing. (Section 56706). STEP THREE LAFCO Hearine - Within ninety days after a (160 days) petition or resolution is determined to be complete, the Local Agency Formation Commission must hold a public hearing on the proposal. (Section 56828). The hearing may be continued for a maximum of 70 days (Section 56840). STEP FOUR LAFCO Determination - Within thirty - five days (35 days) of the LAFCO hearing the Commission must adopt a resolution to approve, or disapprove the proposal. (Section 56851). If disapproved the proposal may not be resubmitted sooner than one year from the date of LAFCO's action, unless approval for an earlier resubmission is granted by LAFCO. STEP FIVE Board of Supervisors' Hearing - Within ninety - (95 days) five days of LAFCO's action the Conducting Authority (i.e. the Board of Supervisors) must hold a public hearing on the proposal. (Section 57002). Board Action - Within thirty - five days of the STEP SIX hearing, the Board must take an action pursuant to (35 days) Section 57077. If there is evidence during the hearing that fifty percent or more of the voters in the proposed district oppose formation of the district, then the Board may order the proceeding terminated. Otherwise the Board must order that the proposal be submitted to the voters. (Section 57100). 1 Orange County Fire Protection District page 25 • • to establish minimum service levels throughout the district, or within zones. Services above t the minimum level might be charged at different rate. This concept is discussed further in a latter section of this report. KEY FEATURES OF FIRE DISTRICT LAW A fire district formed pursuant to the California Health and Safety Code (Sec. 13800 et. al.- Fire Protection District Law of 1987) will function as an independent governmental entity. Excerpts from key provisions of the 1987 legislation are summarized below, and in some instances quoted verbatim, as a way to describe the major operating purposes and parameters of a district. These sections are provided for reference purposes only; their specific application and interpretation may require further analysis by Special Legal Counsel to this project. • Legislative Intent (H & S Code Sec. 13801) - Recognizing that the state's communities have diverse needs and resources, it is the intent of the Legislature in enacting this part to provide broad statutory authority for local officials. The legislature encourages officials to adapt the powers and procedures in this part to meet their own circumstances and responsibilities. • District Boundaries (H. & S. Code Sec. 13810) - Any territory, whether incorporated or unincorporated, whether contiguous or noncontiguous, may be included in a district. • Services (H. & S. Code 13862) - A district shall have the power to provide the following services: (a) Fire protection services. (b) Rescue services. (c) Emergency medical services. (d) Hazardous materials emergency response services. (e) Ambulance services pursuant to Division 2.5 (commencing with Section 1797) (f) Any other services related to the protection of lives and property. • Governing Board (H. & S. Code Sec.13837) - Every district shall be governed by a legislative body known as a board of directors. • Selection of Board of Directors (H. & S. Code Sec. 13837) - The district board may be elected or appointed by the county board of supervisors and the city councils in which the district is located. If the district board is appointed, 1 Orange County Fire Protection District page 26 the board of supervisors and the city council or councils shall appoint directors according to the proportionate share of population for that portion of the county and each city within the district, provided that the board of supervisors and each city council shall appoint at least one director. The board of supervisors or city council may appoint one or more of its own members to the district board. In no case shall the number of directors exceed 11 members. • Terms of office (H. & S. Code Sec. 13843 & 13844) - The term of office of each member of a district board is four years ..... • Fire Commission (H. & S. Code Sec. 13844) - If a county board of supervisors, or a city council has appointed itself as the district board, the board of supervisors or city council may delegate any or all of its powers to a fire commission composed of five or seven commissioners. The board of supervisors or city council shall determine whether the commissioners shall serve at its pleasure or for staggered terms of four years subject to removal for cause. • Service Zones ( H. & S. Code Sec. 13950) - Whenever a district board determines that it is the public interest to provide different services, or to provide different levels of service, or to raise additional revenues within specific areas of the district, it may form one or more service zones..... • Alternative Revenues (H. & S. Code Sec. 13910 et. al.) - Whenever the district board determines that the amount of revenue available to the district or any of its zones is inadequate to meet the costs of providing services ...., the board may raise revenues from: (a) A special tax levy upon two-thirds voter approval. (b) A special tax for both operating and capital purposes pursuant to the Mello -Roos Community Facilities Act of 1982. (c) A special tax pursuant to Chapter 4, Part 1 of Division 2 of Title 5 of the Government Code. (d) An assessment for fire suppression services. (e) Assessments for capital purposes pursuant to the Improvement Acts of 1911, 1913, & 1915. (f) User fees and charges. • Annexation To A District (Government Code Sec. 56848.3) - Prior to the adoption by the local agency formation commission of a resolution making determinations ( i.e. regarding the annexation of territory to a district), the district may request and the commission shall impose, as a term and condition, 1 Orange County Fire Protection District page 27 • • a requirement that the legislative body of the city shall enter into a contract ' with the district. The contract shall require: (1) that the affected territory shall remain a part of the district for a period of at least 10 years.... 1 In those cities that are a part of a new district upon its formation, withdrawal from the district at any point in the future would occur pursuant the detachment provisions of ' current law as outlined in Cortese -Knox. THE LAFCO APPLICA770N The formation process is similar to the process of forming other local government ' agencies, such as cities. It begins with an application (in the form of a petition or resolution, plus a Plan for Services) that is submitted to the Local Agency Formation Commission. • ' In this instance the most effective method for placing a fire district formation proposal before the Local Agency Formation Commission will be the submittal of an "application by resolution". The resolution should be approved by all the taxing entities (i.e. cities and the County) that desire to participate in the district. In general a LAFCO application must be accompanied by a "plan for services" that ' is to include information necessary for the Commission to judge the merits of the proposal such as: • a description of the new governmental entity, the composition and nature of its governing board. ' the specific services to be assumed by the new entity. • the boundary of the new entity. • the planned method(s) of financing services. ' The Orange County LAFCO's application requirements specifically include: • A resolution of application . ' A completed Justification of Proposal Questionnaire including the "plan for services". • A map and a legal description of the proposed boundary. ' A general location map. • Filing fee - the fees include a $ 2500.00 LAFCO fee, an EIR fee up to $1250.00, actual cost for outside legal counsel if required, and actual cost for LAFCO staff expenses to review the proposal, if required. 1 ' Orange County Fire Protection District page 28 • • • Property tax transfer resolutions - each affected agency must adopt a resolution agreeing to the exchange of property tax revenues. Current law gives LAFCO the authority to approve or deny an application to reorganize local government services. If the application is denied by LAFCO, it may not be resubmitted within the next twelve months without prior LAFCO approval for an earlier resubmission. If the application is approved by LAFCO following a public hearing, then it is sent to the Board of Supervisors. The Board of Supervisors will also hold a public hearing on the proposal. Unless there is evidence of a majority voter protest during the hearing the Board must approve and submit the proposal to a vote within the boundary of the proposed district. PROPERTY TAX TRANSFER AGREEMENT If the proposed fire district includes the service areas of all taxing entities ( i.e. the Structural Fire Fund cities and the county unincorporated areas) now served by the county fire department, then 100 per cent of all SFF property tax revenue will be transferred to the new district. The new property tax base for the district would include those taxes currently allocated to the fire department through the Special District Augmentation Fund. ' State law sets forth procedures for apportioning the existing tax revenue among the affected taxing entities in the event that a proposed district includes less than all taxing entities now being served. This feasibility evaluation assumes participation in the proposed district by all cities and the unincorporated area, and the transfer of all Structural Fire Fund taxes, and SDAF revenue received from the SFF, to the new district. Resolutions confirming the cities' and the county's agreement to the transfer of taxes must be submitted to LAFCO. THE LAFCO REVIEW PROCESS Within ninety days following the submittal of a completed application LAFCO must hold a public hearing on the proposal. All parties that have an interest in the proposal will have an opportunity to testify during the hearings. Altogether, the review process could take up to one year to complete if maximum time allowed by the government code are used at each step in the review process. The statement of fire service goals adopted by each of the cities and the County included a target date of June, 1992, for implementing a new governance structure. Given the time required to complete the LAFCO review process, it is unlikely that a district formation proposal could be submitted to the voters until the general election of November, 1992, at the earliest. Exhibit 6 is a "projected schedule for district formation proceedings". This schedule assumes deliberate speed on the part of all involved if a decision is to be made by the voters during 1992. Orange County Fire Protection District page 29 • PROJECTED SCHEDULE FOR FIRE DISTRICT FORMATION PROCEEDINGS Exhibit 6 The following schedule of district formation proceedings has been prepared assuming an election target of November, 1992: ' ACTIVTTY TARGET Review of Fire District Feasibility Study November, 1991 ' Decision To Proceed \ Not Proceed With December, 1991 • Formation Of A Fire District Submittal of LAFCO Application February, 1992 LAFCO Executive Officer Files Certificate March, 1992 Of Sufficiency ' First LAFCO Hearing April, 1992 Second LAFCO Hearing (if required) April, 1992 LAFCO Action April, 1992 Board of Supervisor's Hearing May, 1992 Board of Supervisor's Action June, 1992 Submittal of Ballot Materials August, 1992 ' Election November, 1992 • a 1 Orange County Fire Protection District page 30 FORMING A DISTRICT THROUGH SPECIAL STATE LEGISLATION The County Registrar of Voter's office has assisted in the preparation of an estimate of the cost of an election on the issue of fire district formation. The cost of an election if incorporated with a general election (i.e. November 1992) is estimated to be approximately $205,000. Consideration should be given to forming a district through special state legislation, thereby avoiding the cost of an election. The justification for this approach is: • The primary purpose for forming a fire district is to recognize the significant change that has taken place within the fire department's service population since 1980. Approximately eighty five percent of the population served by the fire department reside within cities, compared to less than fifty percent in 1980, when the department was expanded to include major urban service areas. • Formation of the fire district will not result in a reduction of services, and will not result in the addition of special taxes without a vote. • Formation of a district, without expensive election costs, could have occurred a prior to 1987. Prior to the adoption of the new fire district protect laws, an election would not have been required if the district were formed by the ' Board of Supervisors, unless 51% of the registered voters, or owners of 51% of the assessed value objected to the action. If there is agreement that special legislation should be sought as a means of forming the fire district, this effort should begin immediately. If an election on the district proposal is to be held in November, 1992, then ballot materials should be finalized June, 1992. 1 Orange County Fire Protection District page 31 • IMPLIC47TONS OF OPTIONAL SERVICE STANDARDS As noted in prior sections of this report a new fire district will be able to consider alternative levels of service, and alternative ways to pay for services. The allocation of costs for service in an equitable manner is particularly important where multiple communities are served by one fire protection agency. In the design, management and evaluation of fire protection delivery systems (e.g. fire suppression, emergency medical services, fire prevention, and hazardous materials control), it is necessary to identify the service levels, acceptable risks, and acceptable costs which a community desires. It is also practical to identify "service demand zones" within which the service demands can be identified, resource requirements to provide services can be established, and the services delivered can be managed and evaluated. When establishing services using a "service zone" approach service standards should be established based on the characteristics of the demand zone ( e.g. occupancy types, density of development, fire flow requirements, and demographics). The service demand criteria should be measurable, and a management information system should be available to record and analyze the effectiveness and efficiency of the service delivery system. In addition, fire protection services should be evaluated primarily upon the "service delivery capabilities" that are required, and the extent to which services provided meet recognized and accepted standards. The statistical (i.e. fire incidents) frequency at which service is provided is an unreliable measure of system performance, and is an inaccurate method of allocating cost. SERVICE LEVELS After a fire district is established, it is recommended that "basic service levels" be established. These service levels should be identified within two categories: • Field service delivery: (a) Emergency medical services (b) Fire suppression (c) Fire prevention (d) Fire investigation (e) Fire safety education IOrange County Fire Protection District page 32 (f) Hazardous materials controls • Support service delivery: (a) Management services (financial, personnel, records, etc.) (b) Training/safety (c) (d) (e) (f) FIELD SERVICES Vehicle maintenance Apparatus acquisition and replacement Dispatching and communications Facilities planning and maintenance The allocation of costs for field service delivery can be clearly related to service demand zones and provide a more complete analysis of costs than incident responses. In the case of fire suppression a commonly accepted basic level of service is to have the first engine arrive with three personnel within five minutes at 90% of incidents (a guideline of 5 minutes for the first unit has been established by the OCFD). The purpose of this standard is to control fires prior to flash -over, which is the point of significant life and property risk in fires. A second commonly accepted basic standard is the arrival of all fire resources which are normally required to control a fire incident within 10 minutes. (This guideline has also been established by OCFD). The purpose of this standard is to assure that fires which do reach flash -over can be controlled to the area or building or origin. The resources required to accomplish this will vary depending upon the size, type, density and relative risk of the occupancies involved. What this means is that in areas of higher density or risk additional resources are required. In both of the above examples, these are normally accepted basic levels of service in which the resource requirements and costs can readily be identified within service demand zones. A similar approach to establishing basic standards for emergency medical service (EMS) can be developed. A standard response to EMS incidents is the arrival of a basic life support unit (fire company) within 5 minutes at 90% of incidents and the arrival of an advanced life support unit within 10 minutes at 90% of the incidents. (Guidelines similar to these standards have been established by OCFD). The purpose of these standards is to sustain life and minimize injuries. The resources and costs required to attain these objectives can be readily identified. 1 Orange County Fire Protection District page 33 Similar measurable standards and costs can be identified for all other field services. For example: if a standard is adopted which calls for an annual inspection of all commercial buildings to maintain fire code compliance, the resources and costs of those programs within each service demand zone can be identified. SUPPORT SERVICES Measurable service level standards can also be established for support services. The resource requirements and costs related to the support services needed to provide the desired field services are also readily quantifiable. Although these are not directly related to the service demand zones the costs can be allocated to the zones on a ratio consistent with field services resource requirements. For example: the personnel hours and direct costs of training can be identified and allocated to each firefighter for: • Basic skill training • Skill maintenance training • state mandated EMS training • State mandated Haz Mat training • State mandated driver training and licensing, etc. Where multiple agencies are served by one fire protection agency it is important that basic service levels be clearly identified. Once standards of service have been adopted, some agencies may choose to provide higher levels of service. For example, a city may choose to inspect high hazard occupancies twice per year, or to create a special fire safety education program for schools or commercial occupancies. These expanded services can be funded on a zoned basis. SERVICE DEMAND ZONES Service demand zones are generally geographical areas which consist of similar types of occupancies and/or present similar levels of risk and service demands. Service demand zones should be consistent with fire station service areas, with a travel distance within each zone of not more than one and one-half mile. The boundaries of the demand zone should consider physical boundaries such as freeways, rivers and other barriers. The use of circles or diamonds are inaccurate and should not be used. Also it is essential that a management information system be available to collect and analyze field and support service activities and results. Orange County Fire Protection District page 34 APPENDIX A Profile of Current Orange County Fire Service Delivery System i ` M '1■ M* MEd i 1I M .r ORANGE COUNTY FIRE DEPARTMENT PROFILE OF CURRENT SERVICE DELIVERY SYSTEM A M i Orange County Fire Department (OCFD) is divided into 6 Battalions and operates 47 fire stations. There are 821 career and approximately 600 paid call (volunteer) authorized personnel who provide fire and emergency medical services within an estimated 524 square miles including unincorporated County areas and 14 cities. They serve a population of more than 80,000. The cities of Cypress, Dana Point, Irvine, Laguna Niguel, La Palma, Los Alamitos, Mission Viejo, Placentia, San Juan Capistrano, Seal Beach, Stanton, Tusin, Villa Park, and Yorba Linda. The State of California contracts with the county Fire Department for fire protection of 175,000 acres of State Wildland responsibility areas. OCFD also has Mutual Aid agreements with the United States Forest Service, California Department of 'forestry and Los Angeles County. In addition, OCFD has automatic aid agreements with the military services, the City of Long Beach, and 12 Orange County cities for the closest available fire department resources in the event of an emergency incident. OCFD's equipment includes 86 engines, 13 trucks, 6 water tenders, 5 CCV units, 4 air utility units, 5 crash trucks, 17 paramedic units, 1 fuel tender, 1 Hazardous Materials Unit, and other major pieces of equipment. The Emergency Management Division (EMD) provides emergency planning training services for the County, operates and coordinates staffing of the County's Emergency Operations Center (EOC), and coordinates with Federal, State, other counties, and local city agencies on support and resources in the event of an emergency with Orange County. The Hazardous Materials Program Office (HMPO) provides planning for the County's Hazardous Waste Management Plan. HMPO represents the County on local, regional, State, Federal committees, and other organizations involved in hazardous materials activities. HMPO is responsible for the countywide hazardous waste collection project which assists householders and very small quantity hazardous materials generators with proper hazardous waste disposal. • The Hazardous Materials Disclosure Office (HMDO) is responsible for administering County, State, and Federal hazardous materials disclosure laws within the unincorporated County areas, Costa Mesa, Laguna Beach, and 14 contract cities. HMDO is responsible for developing and executing the hazardous materials emergency area plan, a business emergency plan, maintaining a business and industrial hazardous chemicals inventory,and directing a handler inspection program. Source: Orange County Fire Department Profile; published by the Orange County Fire Department, November 1990; updated by Shannon Associates. A M` M*I= M* M 1 M i i I= M• M 1 M i M i BATTALION I Service Area: 8953 Walker Street, Cypress Engine 12 None Battalion 1 includes the contract cities of La Palma, Cypress, Los Alamitos, Seal Beach, Stanton and the unincorporated areas of Rossmoor, Sunset Beach and Midway City. Within Battalion 1 the Department serves a population of 145,000 in a 33 square mile area. STATION # LOCATION EQUIPMENT PAID STAFF PAID CALL RREF1C-d nERS Station 2 3462 Green Avenue, Los Alamitos Engine 2 3 Captains 23 3 Engineers Engine 202 3 Engineers • Truck 81 (reserve) Air Utility 2 3 Firefighters Station 17 Engine 71 (reserve) Station 3 16861 12th Street, Sunset Beach Engine 3 None 24 Station 12 8953 Walker Street, Cypress Engine 12 None 25 Twin Agent Unit 12 Station 13 7822 Walker Street, La Palma Engine 13 3 Captains 20 Engine 213 3 Engineers Truck 81 (reserve) 3 Firefighters Station 17 4991 Cerritos Avenue, Cypress B-1 Unit 3 Field BC's None Engine 17 6 Captains • Truck 17 6 Engineers Paramedic 1-17 9 Firefighters 6 Paramedics Station 25 8171 Bolsa Avenue, Midway City Engine 25 None 26 Engine 225 A m i m %m m• m 1 m i m L■ m•= ■O m i= i STATION # LOCATION Station 44 718 Central Avenue, Seal Beach Station 46 7871 Pacific Street, Stanton Station 48 3131 Beverly Manor Road, Seal Beach BATTALION 1 (Continued) EQUIPMENT Engine 44 Engine 244 Truck 44 Medic/Engine 46 Medic/Truck 26 Engine 61 (reserve) Engine 48 Paramedic 1-48 Engine 248 (Heavy Rescue) Paramedic (reserve unit) PAID STAFF PAID CALL RREF)%f ERS 3 Captains 30 3 Engineers 3 Firefighters 6 Captains None 6 Engineers 6 Firefighters 3 Captains None 3 Engineers 3 Firefighters 6 Paramedics • A m i■ m '= • ■. 1 i m L m 0m 1 m u n do BATTALION 2 Service Area: Battalion 2 includes the contract cities of Placentia and Yorba Linda, and the surrounding unincorporated areas. within Battalion 2, the Department serves a population of 88,000 in a 28 square mile area STATION # LOCATION EQUIPMENT PAID STAFF PAID CAU. FlRERC+ fERS Station 1 Orange Headquarters Engine 1 None 21 • 180 S. Water Street, Orange Engine 301 Air Utility 1 Dozer 1 2 HFEO Station 10 18402 E. Lemon Street, Yorba Linda Engine 10 None 24 Engine 210 Water Tender 10 Station 20 8663 Orange Olive Road, Olive Engine 20 None 27 Station 32 20990 Yorba Linda Blvd., Yorba Linda Engine 32 3 Captains 20 Engine 232 3 Engineers Engine 332 3 Firefighters Paramedic 1-32 6 Paramedics Station 34 1530 N. Valencia Avenue, Placentia B-2 unit Medic/Engine 34 Truck 34 Utility Truck B-2 Plans Van 3 Field BCs 6 Captains 6 Engineers Firefighters (12) 6 Paramedics None Station 35 110 S. Bradford Avenue, Placentia Engine 35 3 Captains None Paramedic (reserve unit) 3 Engineers Engine 72 (reserve unit) 3 Firefighters A m i■ m %w m• m .f m i m I= m• m mO m u n i STATION # LOCATION Station 53 25415 La Palma, Yorba Linda BATTALION 2 (Continued) EQUIPMENT Engine 53 PAID STAFF PAID CALL FF�S 3 Captains None 3 Engineers 3 Firefighters • A m i. Im %m m• m 1 Im i m L m• m mO m u n i BATTALION 3 Service Area: Battalion 3 includes the contract cities of Tustin and Villa Park and the unincorporated areas of Cowan Heights, Silverado Canyon, Williams Canyon, and Modjeska Canyon. Within Battalion 3 the Department serves a population of 53,000 in a 47.3 square mile area. In addition, approximately 50,000 acres of wildland is included in Battalion 3. STATION # LOCATION EQUIPMENT PAID STAFF PAID CALL FIREFIGHTERS Station 8 10631 Skyline Drive, Santa Ana Engine 8 3 Captains None Engine 63 (reserve 3 Engineers is Paramedic Reserve Unit 3 Firefighters Station 14 29402 Silverado Canyon Road, Silverado Engine 14 None 19 Engine 214 Squad 14 Engine 714 Patrol 14 Station 15 3202 Santiago Canyon Road, Orange Engine 15 3 Captains None Engine 315 3 Engineers Engine 73 (reserve) 3 Firefighters Station 16 28891 Modjeska Canyon Road, Modjeska Engine 16 None 18 Water Tender 16 Squad 16 Station 21 1241 Irvine Blvd., Tustin B-3 Unit 3 Field BCs 30 (Battalion 3 headquarters) Engine 21 6 Captains Engine 221 6 Engineers Truck 21 6 Firefighters Paramedic 1-21 6 Paramedics B-3 Utility Truck is A M L M OM MOM .t M& M U M• M 1 M i M i BATTALION 3 (Continued) STATION # LOCATION EQUIPMENT PAID STAFF PAID CALL FIREFIGHTERS Station 23 5020 Santiago Blvd., Villa Park Medic/Engine 23 3 Captains 17 Engine 223 3 Engineers Water Tender 23 3 Firefighters Station 37 14901 Red Hill, Tustin Engine 37 3 Captains None ' 3 Engineers 3 Firefighters • A m Am m 'lam 1 m i m L m • .■P m i= As BATTALION 4 Service Area: Battalion 4 includes a portion of Irvine, Mission Viejo and the unincorporated areas of Leisure World, EI Toro, Laguna Hills, Trabuco Canyon and Coto de Caza. Within Battalion 4 the Department serves a population of 166,000 in a 30 square mile area. In addition, 45,000 acres of wildland responsibility are included in the Battalion 4 area. STATION # LOCATION EQUIPMENT PAID STAFF Station 18 31242 Trabuco Canyon Rd., Trabuco Canyon Engine 18 3 Captains Engine 318 3 Engineers Engine 218 3 Firefighters Squad 18 Engine 64 (reserve unit) Station 19 23022 EI Toro, EI Toro Engine 19 3 Captains Engine 219 3 Engineers Dozer 19 3 Firefighters AU 19 2 HFEO Station 22 24001 Paseo De Valencia, Laguna Hills B4 Unit 3 Field BC's Engine 22 9 Captains Engine 222 9 Engineers Truck 22 12 Firefighters Paramedic 1-22 6 Paramedics Batt. 4 Utility Truck PAID CALL FIREFIGHTERS 21 • 31 None Station 24 25862 Marguerite Parkway, Mission Viejo Engine 24 3 Captains 26 Engine 224 3 Engineers Paramedics 1-24 3 Firefighters Engine 324 6 Paramedics is i M i■ M%w M•= ■1 M i M L MOM 1M i M i STATION # LOCATION Station 31 22426 Olympiad Rd„ Mission Viejo Station 38 26 Parker, Irvine Station 40 23411 Via Pajaro, Coto de Caza, Trabuco Station 42 19150 Ridgeline Drive, EI Toro Station 45 30131 Aventura, Rancho Santa Margarita BATTALION 4 (Continued) EQUIPMENT Engine 31 Engine 74 (reserve unit) Engine 38 Paramedic 1-38 Engine 40 Water Tender 40 Engine 42 Engine 45 Fire Command I Truck 45 Paramedic 1-45 Truck 86 (reserve) PAID STAFF 3 Captains 3 Engineers 3 Firefighters 3 Captains 3 Engineers 3 Firefighters 6 Paramedics None 3 Captains 3 Engineers 3 Firefighters 6 Captains 6 Engineers 9 Firefighters 6 Paramedics PAID CALL FIREFIGHTERS None None 15 None None • A M i M%M M .1 M i M U M OM 1M i M i BATTALION 5 Service Area: Battalion 5 includes the contract city of Irvine, John Wayne Airport and the surrounding unincorporated areas including Emerald Bay. The department serves a population of 100,000 within a 50 square mile area with approximately 25,000 acres of wildland responsibility. STATION # LOCATION EQUIPMENT PAID STAFF PAID CALL FlRERGHTEFS Station 4 #2 California, Irvine B-5 Unit 3 Field BC's None • Engine 4 6 Captains Haz-Mat 4 6 Engineers Truck 4 9 Firefighters Paramedic 1-4 6 Paramedics Station 11 9802 Emerald Bay Drive, Laguna Beach Engine 11 None 21 Squad 11 Station 26 4691 Walnut Avenue, Irvine Engine 26 3 Captains 25 Engine 226 3 Engineers Engine 326 3 Firefighters Paramedic 1-26 6 Paramedics Station 27 19459 S. Airport Way, Sarna Ana Engine 27 3 Captains None FT -27 3 Engineers • Paramedic (reserve unit) 3 Firefighters Foam Tender Engine 75 (reserve Station 28 17862 Gillette Avenue, Irvine Engine 28 6 Captains None Truck 28 6 Engineers Engine 65 (reserve) 8 Firefighters i =Am m%mm*mmdm i= L =OMEN?= =OMEN?i M i STATION # LOCATION Station 33 366 Paularino Road, Costa Mesa BATTALION 5 (Continued) EQUIPMENT Crash 1 Crash 2 Crash 3 Crash 4 (reserve) Crash 5 (reserve) Mass Casualty Unit Crane Crash 10 HIX 33 PAID STAFF PAID CALL FIREFIGHTERS None 3 Captains 6 Engineers 12 Firefighters • Station 36 301 E. Yale Loop, Irvine Engine 36 3 Captains None Engine 75 3 Engineers 3 Firefighters • i= i= %m m• m .f = i m L= •m mmP m u n i BATTALION 6 Service Area: Battalion 6 includes the contact cities of Dana Point, Laguna Niguel, San Juan Capistrano and a portion of Mission Viejo. The Department serves a population of 60,000 in a 25 square mile area with approximately 10,000 acres of wildland responsibility. STATION # LOCATION EQUIPMENT PAID STAFF PAID CALL FIREFIGHTERS Station 5 30141 Alicia Parkway, Laguna Niguel Engine 5 3 Captains None Paramedic 5 3 Engineers • Paramedic (reserve) 3 Firefighters Parade Engine 6 Paramedics Station 7 31865 Del Obispo, San Juan Capistrano Engine 7 3 Field BC's 25 (Battalion 6 headquarters) Engine 207 3 Captains Engine 307 3 Engineers Paramedic 1-7 3 Firefighters Water Tender 7 6 Paramedics Station 9 26312 Via Curacion, Mission Viejo Engine 9 6 Captains None Truck 9 6 Engineers Utility Truck 9 9 Firefighters Station 29 26111 Victoria Blvd., Capistrano Beach Engine 29 3 Captains 25 • Engine 229 3 Engineers Squad 29 6 Paramedics Engine 76 (reserve unit) Station 30 23831 Stonehill Drive, Laguna Niguel AU 30 3 Captains 25 Engine 30 3 Engineers Engine 230 3 Firefighters Engine 330 Engine 66 (reserve) A m i m *m m• m 1 m i m L I' •m 1 m i m i STATION # LOCATION Station 39 24241 Avila Road, Laguna Niguel BATTALION 6 (Continued) EQUIPMENT Engine 39 Station 49 31461 St. of Golden Lantern, Laguna Niguel B-6 Unit Truck 49 PAID STAFF 3 Captains 3 Engineers 3 Firefighters 3 Captains 3 Engineers 6 Firefighters None • • • 08/07/91 ORANGE COUNTY FIRE DEPARTMENT FIRE STATION INVENTORY OWNED - ALL JURISDICTIONS wwwwww wwwwwwwwwwww»wwwww STA FACLTY LOCATION a a HOT 90724 180 S. NATER ST, ORANGE 01 90729 125 S. WATER ST, ORANGE 01 90731 145 S. WATER ST, ORANGE 02. 90709 116861 3642 GREEN AVE., LOS ALAMITOS 03 90719 12 TH STREET. SUNSET BEACH 04 90721 05 90713 07 90748 08 90725 09 90734 10 90723 11 90706 12 90703 14 90717 15 90750 16 90711 17 90727 18 90720 19 90705 20 90714 21 90741 22 90707 23 90722 24 90726 25 90710 26 90743 27 90732 90701 2 BERKELEY STREET, IRVINE 30141 ALICIA PKWY, LAGUNA NIGUEL 31865 DEL OBISPO, SJC 10631 SKYLINE, LEMON HEIGHT 26312 VIA CURACION, M. VIEJO 18402 E. LEMON DR, YORBA LINDA 259 EMERALD DR., LAGUNA BEACH B953 S. WALKER, CYPRESS 29402 SILVERADO CYN, TRABUCO C. 202 SANTIAGO CYN, ORANGE 8891 MODJESKA CYN RD, MODJESKA 791 CERRITOS, CYPRESS 1242 TRABUCO CYN, ORANGE 5022 EL TORO RD, LAKE FOREST 563 ORANGE -OLIVE RD, OLIVE 241 IRVINE BLVD, TUSTIN 4001 PASEO DE VALENCIA, LAGUNA HILLS 320 SANTIAGO BLVD, ORANGE 5862 MARGUERITE PKWY, M. VIEJO 171 BOLSA AVE, MIDWAY CITY 591 WALNUT AVE, IRVINE 7459 S. AIRPORT WAY, SANTA ANA 28 90733 117802 GILLETTE AVE, IRVINE 29 90704 26111 VICTORIA, CAPISTRANO BEACH • STRU. 8 IMPRV. LAND --------------- ACQUISITION ------------ AOCUISITION DATE DATE 1948 1945 1966 1947 1972 1945 1947 1950 1949 1961 1950 1970 1967 1968 1967 1980 1977 1970 1969 1973 1971 1968 1973 1952 Leased 1948 1947 1969 1941 1945 1959 1970 1984 Leased 1971 1966 1973 Leased 1948 '1948 page 1 1985 1980 1980 1948 1946 1952 1948 1976 1974 1966 1965 1961 1960 1969 1968 1952 1951 1977 1975 1957 Listed under Airport 1972 1971 1961 1959 • 08/07/91 OWNED - ALL JURISDICTIONS ORANGE COUNTY FIRE DEPARTMENT FIRE STATION INVENTORY STA FACLTY LOCATION 30 90740 23831 STONEHILL OR, DANA POINT 31 90736 22426 OLYMPIAD, MISSION VIEJO 32 90742 20990 YORBA LINDA BLVD, Y. LINT 39 90765 24241 AVILA RD, LAGUNA NIGUEL 42 90780 19150 RIDGELINE DR, PORTOLA HI' 45 90781 30131 AVENTURA, RANCHO SANTA MARGARITA 49 90783 31461 GOLDEN LANTERN, LAGUNA NIGUEL 53 25415 LA PALMA, YORBA LINDA 57 57 JOURNEY, LAGUNA NIGUEL -------------- ------------------------------ DEACTIVATED 10600 SANTA ANA GRADENS 60101 DALE STREET 90712 NEWHOPE 90716 OLD SAN JUAN CAPO • STRU. & IMPRV. LAND ................ ACQUISITION ............ AOCUISITION DATE DATE 1977 1975 1988 1985 1984 1980 1982 1972 1988 1988 1987 1987 page 2 1989 1989 1990 1949 1966 1930 1980 1989 1989 1990 1940 1949 1966 1930 1980 • APPENDIX B • Assessed Values by Jurisdiction • ORANGE COUNTY FIRE DEPARTMENT ASSESSED VALUATIONS BY JURISDICTION FY 1980/81 thru FY 1990/91 JURISDICTION Structural Fire Fund Cities Cypress Dana Point Irvine Laguna Niguel '1 La Palma Los Alamitos Mission Viejo San Juan Capistrano Villa Park Yorba Linda Subtotal SFF - Cities '2 Unincorporated '3 Cash Contract Cities Placentia Seat Beach Stanton Tustin Subtotal - Cash Contract TOTAL ASSESSED VALUE '4 ORANGE COUNTY FIRE DEPARTMENT FY 1990/91 $2,212,474,983 3,403,440,270 14,291,196,637 4,335,094,932 807,095,272 713,872,065 5,159,264,507 2,155,465,993 524,783,698 3,744,739,253 $37,347,427,610 $16,723,976,044 $1,857,377,321 1,661 ,832,131 994,191,647 3,166,746,166 $7,680,147,265 $61,751,550,919 FY 1989/90 $2,031,797,972 2,616,133,926 12,763,578,249 N/A 739,363,645 671,613,374 4,574,041,662 1,752,595,579 471,503,892 3,124,982,885 $28,745,611,184 $17,778,340,774 $1,748,482,194 1,528,375,586 929,857,602 2,784,519,804 $6,991,235,186 $53,515,187,144 FY 1988/89 $1,729,730,863 N/A 11,403,254,328 N/A 653,748,052 609,590,455 3,698,141,236 1,450,360,227 412,142,585 2,604,477,513 $22,561,445,259 $17,060,354,004 $1,561,320,703 1,371,332,888 832,810,028 2,347,424,047 $6,112,887,666 $45,734,686,929 SOURCE: County of Orange Assessed Valuations, prepared by The Auditor -Controller. Extracted by OCFD/Firiancial Services NOTE 1: Assessed Valuations prior to City Incorporation are included in the Unincorporated area. NOTE 2: In the report of Assessed Valuations, this category is known as COUNTY INCLUDING CSFP. NOTE 3: In the report of Assessed Valuations, this category is known as COUNTY OUTSIDE INCLUDING CSFP. NOTE 4: values are prior to Homeowners Exemption. Page 1 of 4 ORANGE COUNTY FIRE DEPARTMENT ASSESSED VALUATIONS BY JURISDICTION FY 1980/81 thru FY 1990/91 JURISDICTION Structural Fire Fund Cities Cypress Dana PoinY1 Irvine Laguna Niguel•1 La Palma Los Alamitos Mission Viejo '1 San Juan Capistrano Villa Park Yorba Linda Subtotal SFF - Cities '2 Unincorporated '3 Cash Contract Cities Placentia Seal Beach Stanton Tustin Subtotal - Cash Contract TOTAL ASSESSED VALUE •4 ORANGE COUNTY FIRE DEPARTMENT FY 1987/88 $1,656,465,169 N/A 10,759,640,972 N/A 599,825,880 565,812,571 N/A 1,376,714,737 383,372,076 2,142,321,368 FY 1986/87 $1,497,100,380 N/A 9,458,927,822 N/A 545,775,580 498,501,538 N/A 1,276,670,864 356,187,267 1,858,943,580 $17,484,152,773 $15,492,107,031 FY 1985/86 $1,378,976,896 N/A 8,159,407,068 N/A 514,363,534 445,511,381 N/A 1,153,316,512 337,716,825 1,613,427,571 $13,602,719,787 $18,970,179,299 $17,397,131,256 $15,599,045,491 $1,457,953,373 1,347,782,932 778,357,429 2,156,263,349 $5,740,357,083 $42,194,689,155 $1,323,499,306 1,248,195,404 707,552,853 2,053,073,066 $5,332,320,629 $1,194,833,261 1,125,637,079 652,884,661 1,826,926,815 $4,800,281,816 $38,221,558,916 $34,002,047,094 SOURCE: County of Orange Assessed Valuations, prepared by The Auditor -Controller. Extracted by OCFD/Financial Services NOTE 1: Assessed Valuations prior to City Incorporation are included in the Unincorporated area. NOTE 2: In the report of Assessed Valuations, this category is known as COUNTY INCLUDING CSFP. ' NOTE 3: In the report of Assessed Valuations, this category is known as COUNTY OUTSIDE INCLUDING CSFP. NOTE 4: values are prior to Homeowners Exemption. Page 2 of 4 *ORANGE COUNTY FIRE DEPARTMO ASSESSED VALUATIONS BY JURISDICTION FY 1980/81 thru FY 1990/91 JURISDICTION Structural Fire Fund Cities Cypress Dana Point '1 Irvine Laguna Niguel '1 La Palma Los Alamitos Mission Viejo '1 San Juan Capistrano Villa Park Yorba Linda Subtotal SFF - Cities '2 Unincorporated '3 Cash Contract Cities Placentia Seal Beach Stanton Tustin Subtotal - Cash Contract TOTAL ASSESSED VALUE •4 ORANGE COUNTY FIRE DEPARTMENT FY 1984/85 $1,254,770,879 N/A 7,187,294,628 N/A 484,788,128 401,075,147 N/A 1,041,060,922 316,081,119 1,382,018,237 $12,067,089,060 $14,242,313,352 $1,103,300,457 1,035,280,602 587,855,380 1,689,507,277 $4,415,943,716 FY 1983/84 $1,194,605,928 N/A 5,726,500,878 N/A 453,219,166 371 ,236,366 N/A 967,362,382 293,443,094 1,216,964,159 $10,223,331,973 $12,224,433,185 $1,027,606,294 993,134,235 510,009,594 1,458,778,796 $3,989,528,919 $30,725,346,128 $26,437,294,077 SOURCE: County of Orange Assessed Valuations, prepared by The Auditor -Controller. Extracted by OCFD/Financial Services NOTE 1: Assessed Valuations prior to City Incorporation are included in the Unincorporated area. NOTE 2: In the report of Assessed Valuations, this category is known as COUNTY INCLUDING CSFP. NOTE 3: In the report of Assessed Valuations, this category is known as COUNTY OUTSIDE INCLUDING CSFP. NOTE 4: values are prior to Homeowners Exemption. Page 3 of 4 ORANGE COUNTY FIRE DEPARTMENT ASSESSED VALUATIONS BY JURISDICTION FY 1980/81 thru FY 1990/91 JURISDICTION Structural Fire Fund Cities Cypress Dana Point '1 Irvine Laguna Niguel '1 La Palma Los Alamitos Mission Viejo '1 San Juan Capistrano Villa Park Yorba Linda Subtotal SFF - Cities '2 Unincorporated '3 Cash Contract Cities Placentia Seal Beach Stanton Tustin Subtotal - Cash Contract TOTAL ASSESSED VALUE '4 ORANGE COUNTY FIRE DEPARTMENT FY 1982/83 $1,057,645,001 N/A 5,252,878,231 N/A 410,679,970 339,765,183 N/A 869,752,093 276,179,907 1,106,276,702 $9,313,177,087 $11,344,235,180 $974,990,887 988,139,622 489,379,880 1,371,372,799 $3,823,883,188 FY 1981/82 $989,559,407 N/A 4,426,525,438 N/A 368,011,237 297,317,889 N/A 723,766,365 249,406,788 922,566,544 $7,977,153,668 $9,926,131,800 $858,524,162 810,457,154 431,066,338 1,170,642,118 $3,270,689,772 $24,481,295,455 $21,173,975,240 FY 1980/81 $202,977,542 N/A 881,382,546 N/A 80,642,675 66,943,412 N/A 148,325,956 54,857,090 191 ,445,986 $1,626,575,207 $2,120,012,481 $189,127,888 185,897,596 91,749,834 233,269,717 $700,045,035 $4,446,632,723 ' SOURCE: County of Orange Assessed Valuations, prepared by The Auditor -Controller. Extracted by OCFD/Financial Services NOTE 1: Assessed Valuations prior to City Incorporation are included in the Unincorporated area. NOTE 2: In the report of Assessed Valuations, this category is known as COUNTY INCLUDING CSFP. ' NOTE 3: In the report of Assessed Valuations, this category is known as COUNTY OUTSIDE INCLUDING CSFP. NOTE 4: values are prior to Homeowners Exemption. Page 4 of 4 APPENDIX C Technical Schedule For the Ten Year Forecast of Fire Service Revenues and Costs (submitted under separate cover) n U 0 or M go m t mom =I m T m t M•m M% M "! m V