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HomeMy WebLinkAbout13 THIRD AMENDMENT TO ORANGE COUNTY FIRE AUTHORITY JOINT POWERS AUTHORITY AGREEMENTAGENDA REPORT VS �� MEETING DATE: TO: FROM: SUBJECT: Summary JULY 7, 2015 Agenda Item 13 Reviewed: City Manager Finance Director *NIA HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL JEFFREY C. PARKER, CITY MANAGER THIRD AMENDMENT TO ORANGE COUNTY FIRE AUTHORITY JOINT POWERS AUTHORITY AGREEMENT This agenda item is submitted to request approval of the Orange County Fire Authority's Third Amendment to the Amended Joint Powers Authority Agreement to eliminate alternate directors. Recommendation That the City Council adopt Resolution No. 15-39 approving the Third Amendment to the Amended Orange County Fire Authority JPA Agreement and authorize the Mayor to execute the Amendment. Background The Orange County Fire Authority (OCFA) was formed in 1995 to provide regional fire protection and related services to the County of Orange and 18 member cities. Subsequent to formation, 6 additional cities have become members of the OCFA. The original JPA agreement was amended on September 23, 1999, and renewed in 2010 by the First Amendment, which provided for a term that runs through 2030. In 2013, OCFA's members approved a Second Amendment to the Amended JPA which amended several provisions to promote financing equity among the members. Purpose of the Third Amendment Since formation of the OCFA in 1995, the JPA Agreement has provided for each member agency to have representation on the Board of Directors. This provision was key to the formation of the OCFA, as discussed in an early feasibility study in 1991 regarding the formation of a regional Orange County Fire agency, which stated: "Provide equal agency representation on a governing board, regardless of participant size, to address cost, expenditure, equity, and service level issues." Agenda Report July 7, 2015 Page 2 In addition to providing for each member agency to appoint a representative to act as its Director on the OCFA Board, the JPA Agreement also provides for each member agency to appoint an alternate to act in each Director's absence. In discussing AB1217 (Daly), which would reduce member agency representation on the OCFA Board, a majority of the Board concluded that representation of every member agency on the Board remains critically important; however, a majority of the Board also concluded that the provision for alternate Directors could be eliminated. OCFA's primary Directors have a long history of good attendance at Board meetings. When a Director is occasionally unable to attend, they rarely request their alternate to attend on their behalf since the alternate may be less informed on the complex or sensitive topics for consideration. As a result of this dialogue, the OCFA Board of Directors directed its General Counsel to (1) draft a proposed amendment to the JPA Agreement which would eliminate alternate directors, and (2) after OCFA Board approval of the form of the amendment, submit the proposed amendment to the governing bodies of OCFA's member agencies for actual approval. Per this direction, OCFA's General Counsel drafted the Third Amendment, amending Article II, Sections 2 and 5 of the 1999 Amended JPA Agreement. At a Special Meeting on July 1, 2015, the OCFA Board of Directors voted 17-3 to approve the form of the amendment and circulate to the member agencies for approval. (Attachment). In order to become effective, the Third Amendment must be approved by at least two- thirds (e.g., 16 of 24) of the member agencies' governing bodies. Staff is requesting the City Council to approve the Third Amendment. Attachments 1. Resolution No. 15-39 2. Third Amendment to Amended Joint Powers Authority Agreement. RESOLUTION NO. 15-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 15-39, CALIFORNIA, APPROVING THE THIRD AMENDMENT TO THE ORANGE COUNTY FIRE AUTHORITY AMENDED JOINT POWERS AUTHORITY AGREEMENT, AND AUTHORIZING ITS EXECUTION THE CITY COUNCIL OF THE CITY OF TUSTIN FINDS THAT: WHEREAS, the Orange County Fire Authority (OCFA) is a California Joint Powers Authority that was formed in 1995 to provide regional fire protection and related services to the County of Orange and its member cities; WHEREAS the original JPA agreement was amended by an "Amended Joint Powers Authority Agreement" ("Amended JPA Agreement") on September 23, 1999, and the Amended JPA Agreement was subsequently amended; WHEREAS, the City of Tustin is a member of the OCFA and is represented on the OCFA Board by a Director selected by the Tustin City Council. WHEREAS, in addition to appointing a Director on the OCFA Board, the Amended JPA Agreement provides for each member to appoint an alternate to act in the Director's absence; WHEREAS, the OCFA Board has requested that the City Council consider the attached "Third Amendment to Amended Joint Powers Authority Agreement" to eliminate alternate Board members; WHEREAS, when a Director is occasionally unable to attend, they rarely request their alternate to attend on their behalf since the alternate may be less informed on the complex or sensitive topics for Board consideration; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin approves and authorizes the execution of the "Third Amendment to Amended Joint Powers Authority Agreement" by the Mayor. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 7t" day of July, 2015. CHARLES E. PUCKETT, Mayor Resolution No. 15-39 Page 1 of 2 ATTEST: JEFFREY C. PARKER, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Jeffrey C. Parker, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 15-39 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 7t" day of July 2015, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: JEFFREY C. PARKER City Clerk Resolution No. 15-39 Page 2 of 2 THIRD AMENDMENT TO AMENDED JOINT POWERS AUTHORITY AGREEMENT ORANGE COUNTY FIRE AUTHORITY This Third Amendment ("Third Amendment") to the Amended Joint Powers Authority Agreement is made and entered into by and between the following public entities (collectively referred to as "members"): Aliso Viejo, Buena Park, Cypress, Dana Point, Irvine, La Palma, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (collectively referred to as "Cities" and individually as "City") and the County of Orange (referred to as the "County"), each of whom is a member of the Joint Powers Authority, Orange County Fire Authority ("the Authority"). RECITALS WHEREAS, the Authority presently provides fire protection, prevention and suppression services and related and incidental services (collectively, "Fire Services") to Cities as well as to the unincorporated area of the County and State Responsibility Areas ("SRA"); and WHEREAS, the County and several of the Cities entered into a Joint Powers Authority Agreement to form the Authority as of February 3, 1995 pursuant to the provisions of Article 1, Chapter 5, Division 7, Title I (commencing with Section 6500) of the Government Code of the State of California ("Joint Powers Statutes"); and WHEREAS, pursuant to the Joint Powers Statutes the members are authorized to jointly provide for the methods of the provision of Fire Services, including the method of financing the provision of Fire Services; and WHEREAS, on September 23, 1999, the members entered into an amended Joint Powers Authority Agreement ("1999 Amended Agreement") which superseded all prior agreements between the members and is incorporated herein by reference; and 1097988.3 WHEREAS, on July 1, 2010, the members entered into a First Amendment to the Amended Joint Powers Agreement ("First Amendment") which amended several provisions of the 1999 Amended Agreement; and WHEREAS, on April 20, 2012, the City of Santa Ana joined the Authority and became a party to the 1999 Amended Agreement and the First Amendment; and WHEREAS, on November 18, 2013, the members entered into the Second Amendment to the Amended Joint Powers Agreement ("Second Amendment") which amended several provisions of the 1999 Amended Agreement. Litigation has been filed by the County challenging the validity of the Second Amendment, and the litigation remains unresolved as of the date of this Third Amendment; WHEREAS, the parties wish to adopt this Third Amendment to eliminate alternative Board directors; NOW THEREFORE, the members agree to amend the 1999 Amended Agreement as follows: AGREEMENT 1. Article 11, Section 2 of the 1999 Amended Agreement shall be amended to read as follows: 2. Designation of Directors. Each member by resolution of its governing body shall designate and appoint one representative to act as its Director on the Authority Board of Directors (the "Board"), except the County whose Board of Supervisors shall appoint two representatives to act as its Directors. Each representative shall be a current elected member of the governing body. Each Director shall hold office until the selection of a successor by the appointing body. Each Director . a., at@foa+@ shall serve at the pleasure of his or her appointing body and may be removed at any time, with or without cause, at the sole discretion of that appointing body. Any vacancy shall be filled in the same manner as the original appointment of a Director With approval of the Board, a Director 1097988.3 may be reimbursed for reasonable expenses incurred in the conduct of the business of the Authority. 2. Article 11, Section 5 of the 1999 Amended Agreement shall be amended to read as follows: S. Quorum; Voting. A majority of the Directors shall constitute a quorum for the purpose of the transaction of business relating to the Authority. Each Director, , shall be entitled to one vote. Unless otherwise provided herein, a vote of the majority of those present and qualified to vote shall be sufficient for the adoption of any motion, resolution or order and to take any other action deemed appropriate to carry forward the objectives of the Authority. 3. Effective Date. This Third Amendment requires the approval of at least two thirds of the members to go into effect, and it shall be effective on the date of approval by a sixteenth member. 1097988.3