HomeMy WebLinkAbout14 OCFA JT PWRS AG 07-05-94AGENDA___
Inter-Com
DATE:
TO:
O-ONE 29, 1994
HONORABLE FJ~YOR AND MEMBERS OF THE CITY COUNCIL
WILLIAM A. HUSTON, CITY MANAGER
JOINT POWERS AGREEMENT - ORANGE COUNTY ~IRE AUTHORITY
R~COMMENDATION:
That the City Council adopt Resolution No. 94-83 approving a Joint
Exercise of Powers Agreement (JPA) to form the Orange County Fire
Authority.
~ISCAL IMPACT:
The city's draft 1994-95 General Fund budget includes $3,312,673 for
contract fire suppression, prevention and paramedic services. The JPA
includes a provision that for the first '~hree years following formation
of the Fire Authority, any increases in the contract amount shall be
limited to the annual change in the cost of fire operations. After the
three year period, any adjustments in the contract amount would be based
on factors and considerations applicable to all members of the Fire
Authority.
BACKGROUND:
For the past two years, the sixteen cities served by the Orange County
Fire Department and County staff have been studying and negotiating
alternative means of governing and administering the Fire Department.
The issue has not been quality of fire suppression and paramedic
services. There is general agreement that the Fire Department provides
a high level of service. The issue has been that cities comprise 85% of
the Fire Department's se%-vice area but have little substantive say in
· the governance of its operations. The Fire Department's annual
operating budget exceeds one hundred million dollars. Its service
responsibilities are increasing as growth occurs which raises policy
issues concerning future costs and levels of service. Because of the
financial significance and importance of fire services to each city, the
sixteen cities feel they need to exercise greater control over the
financial and policy direction of the Fire Department.
Joint Powers Agreement
June 29, 1994
Page two
The feasibility and legal studies conducted jointly by the sixteen
cities clearly show that the JPA approach is feasible. Until this
fiscal year, State law created some potentially significant problems for
the financial viability of creating a Fire Authority. This year the
State enacted legislation which guarantees that property tax revenue now
allocated to the Fire Department can, in the future, only be used for
Fire Department operations. Until this change in State law, the Board
of Supervisors had the authority to allocate fire fund property tax
revenue to other County programs. Twelve of the sixteen cities have a
portion of their respective property tax rates collected by the County
and dedicated to fire services (similar to the property tax rate
collected within Tustin that is dedicated to County library services).
Those funds would be allocated to the Fire Authority under a provision
of the JPA where the County is obligated to contribute all fire fund
property tax revenue to the Fire Authority. The City of Tustin and
three other cities do not have a property tax rate for fire services but
instead obtain fire services through a cash contract arrangement. Over
the years, Tustin has opted to be a cash contract city in order to
preserve its flexibility on how to provide fire services.
The proposed JPA reflects a consensus among the sixteen cities on how to
assume responsibility for fire services and provides an organizational
structure for joint administration of the fire department. At this
point, no changes are contemplated which would affect ~he day-to-day
operations of the fire department or levels of service. As the Fire
Authority progresses, it might consider options such as allowing cities
to contract for various levels of fire suppression or paramedic
services. Any changes would have to be agreed upon by the majcrity of
the seventeen members (sixteen cities and the County each having one
vote). It is envisioned that over the next three years, the cities and
county would jointly discuss and decide issues such as how ~o structure
contracts for services and an equitable method for pricing contract
services.
Under the present system, the cities have little say in critical issues
concerning the future expansion of the fire department and i~s financial
viability. The JPA establishes a formal entity, the Fire Authority,
where the cities are in ~ position to have direct oversight and the
ability to set policy direction.
It would be in Tustin's best interests to become a me~er of the Fire
Authority for the following reasons:
1. By sharing responsibility for fire service with o~her cities,
the City ~it! be in a better position to influence decisions
regarding future costs and levels of se_~vice.
2. The JPA provides a mechanism where the mer~er ci~ies can
create new mechanisms for pricing services and variable leve~s
of fire suppressions and paramedic services.
Joint Powers Agreement
June 29, 1994
Page three
The City will have full membership and voting privileges as a
member of the Fire Authority.
Being a member of the Fire Authority ensures that the City can
continue to provide a high level of fire suppression and
paramedic services to the community. The City cannot provide
as cost-effective service on its own due to economies of
scale.
Ail members of the Fire Authority will share a common goal of
providing cost-effective fire services. The interests of all
Fire Authority members will be best served by seeking
solutions to issues that are equitable and uniform to all
members.
The City of Tustin owns fire Stations 37 (Red Hill Avenue) and 43
(Tustin Ranch). The present arrangement of leasing the fire stations to
the County would continue with the Fire Authority. The JPA provides
that all County Fire Department assets, liabilities, and agreements
would transfer to the Fire Authority upon its formation. In the future,
the City and Fire Authority can make joint decisions about the status of
the fire station lease agreements and how they fit into the equation for
setting the price of fire contracts between the city and Fire Authority.
As a member of the team of five city Managers who have provided
oversight of the feasibility studies and negotiated the JPA, I feel the
City's interests are best served by becoming a member of the Fire
Authority. The City has limited other options, none of which would
provide as cost effective services to the community. If for any reason
the Fire Authority does not meet the City's expectations, because it is
a cash contract city, it would have the flexibility to pursue other
options.
It is anticipated that all sixteen cities will approve the JPA this
month. The next step will be obtaining Board of Supervisors' approval,
following which the Fire Authority would be formed by September 1, 1994.
jpeocfa.wah
RESOLUTION NO. 94-83
A RESOLUTION OF THE CITY OF TUSTIN APPROVING A JOINT EXERCISE
OF POWERS AGREEMENT TO FORM THE ORANGE COUNTY FIRE AUTHORITY
AND AGREE TO PARTICIPATE IN ACTIVITIES THAT SUPPORT AUTHORITY
FORMATION
Whereas, the City of Tustin has continued to support
efforts to achieve direct participation by city elected
officials in governing fire services that are now provided by
Orange County to the City of Tustin and other Orange County
cities; and
Whereas, it is now the intent of the participating cities
and the county that a fire authority be formed pursuant to
Article 1, Chapter 5, Title 1 of the Government Code of the
State of California to assume all of the services that are now
performed by the Orange County Fire Department; and
Whereas, a primary purpose in forming the authority is to
provide a means for cities, which comprise approximately 85%
of the population served by the fire department, and the
county to formally share governance and financial
responsibility for the fire service program; and
Whereas, one year ago the cities reached a preliminary
written understanding with the county on matters related to
the transfer of tax funds and the transition of service
responsibilities to form an independent fire protection
district and those provisions of the original understanding
that are applicable to a fire authority have been included in
the attached document titled Joint Exercise of Power~
Aqreement Creatinq The Oranqe County Fire Authori=y; and
Whereas, formation of the fire authority in combination
with changes that have been made in state tax policy during
the past year will permit the cities and the county to
substantially achieve their original objectives which are:
(1) city participation in governing municipal fire services
that are provided by the county predominantly within cities,
(2) equity in the distribution of the cost of fire service;
and (3) assurance that existing taxes that are now dedicated
to the fire service will continue to be available for the fire
service and not diverted to other county purposes; and
Whereas, the authority is formed upon adoption by the
cities and the county of a resolution approving the joint
exercise of powers agreement.
Now, Therefore, the City Council of the City of Tustin,
does by this resolution hereby:
Approve and adopt Attachment A; Joint.Exercise of
Powers Aqreement Creatinq The Oranqe County Firo
Authority, and
Request that Orange County Board of Supervisors
approve the agreement at their earliest opportunity
following its consideration by the cities, and
Request the City of Irvine Continue to serve as the
lead agency in proceedings to form the authority,
and
Authorize the Orange County City Manager's
Association, through its Negotiating Committee, to
assume primary responsibility for administrative
activities required to form the authority and
transfer service responsibilities from the county to
the authority.
Agree to pay a proportionate share of the expenses
associated with formation of the authority, subject
to separate action and approval of the specific
proportionate share amount(s) by this City Council
from time to time.
THOMAS R. SALTARELLI, Mayor
Ayes:
Noes:
Abstain:
Absent:
City of Tustin )
County of Orange )
State of California )
I, Mary Wynn, Clerk of the City of Tustin, hereby certify
that the above resolution wad duly and regularly adopted by
the City Council at a regular meeting held on the day
of , 1994, and passed by a vote of the
members present.
In WITNESS WHEREOF, I have hereunto set my hand and seal
this day of , 1994.
Mary Wynn
Clerk of the City of Tustin
,SEX~ BY: 5- 5-~4 : ~:01i%t : RLT.k' 'L'CKER- 714 72t ~045;# 2/1~
,- JOINT PO%VERS AG]~F~[~T
C~.~TING THE
ORANGE COUNI~ ~ AUTHORITY
This Agreement is made this day of 1994 by and between
the following public entities (collectively called the "members"),
CYPRESS, DANA POINT, IRVINE, LAGUNA MT~.T.S, LAGUNA NIGUEL, LAK~
FOREST, LA PALMA, LOS ALAMITOS, MISSION VIEJO, PLAC~NTIA, SAN JUAN
CAPISTRANO, SEAL BEACH, STANTON, TUSTIN, VILLA PARK AND YORBA LINDA
(the "Cities") and the COUNTY OF ORANGE (the "County").
A. County operates the Orange County Fire Department, which
presently provides fire protection and suppression services ~o
cities as well as a smaller unincorporated area.
B. Cities and County agree that the level and quality of
services is excellent and do not seek to change day-to-day control
which remains with the Director of Fir~ Service.
C. County agrees that Cities require additional policy input
~nto and greater control over =he costs of such services and use of
structural fire fund taxes levied therefor.
and
D. cities and County have studied and discussed policy input
cost control for over three years and have determined that
BY: 6- 9-91 : 9:01.k%{ : ~L7A, TUCKE~- 714 724 60~5:#
creation of a joint power entity to administer fire service
operations and delivery serves their needs for policy input and
cost control.
E. Each member is a public agency as definmd by Government
Code ~ 6500 et seq. and is authorized and empowered to contract for
the Joint exercise of powers common to each member.
F. The m-~hers wish to jointly exercise their powers to
provide for mutual protection, prevention and suppression servioes
and related and incidental services, including but not limited to,
creation, development ownership and operation of programs,
facilities, and funds therefor through the establishment of the
"Orange County Fire Authority" or "Authority."
NOW THEREFORE, in consideration of the mutual promises set
out, the parties agree as follows:
AGREEMENT
I., POWERS AND PURPOSF.
!. Authority Created. The Authority is formed by this
Agreement pursuant to the provisions of Article 1, Chapter 5,
Division 7, Title 1 {commencing with Section 6500) of the
Government Code of the State of California. The Authority shall be
a public entity separate from the parties hereto and its debts
shall not be debts of its mombers.
2. ~"mose o5 the A=reement: ¢O~mmn Power to be Exereisg~.
TAe purpose o£ this Agreement is to jointly exercise the foregoing
common powers in the manner set forth here. Each m-tuber
individually has the statutory ability to provide fire euppression,
prevention and related services including but not limited to
emergency medical and transport services, as well as providing
facilities an~ personnel for such services.
3. Effective Da~e o~ Yo~ation. The Authority
formed as of its first meeting on September 1, 1994.
shall be
Pursuant to and to =he extent required by Government Code
Section 6509, the Authority shall be restricted in the exercises of
it= powers in =h~ same manner as is a general law city.
4. Powers. The Authority shall have the power to do any of
the following in its own name:
(a) To exercise the common powers of its members in
providing fire suppression, protection and related
ser%~ces.
(b) To make and enter into contracts, notwithstanding,
the JPA may not enter into development agreements.
(c) To negotiate contracts with represented and
unrepresented employees.
BY: ~- 9-S4 : ~:02.k~f : ~TA TUCKER- 714 72~ 6045:=
(d) To employ much other persons as it deems necessary.
(e) To acquire, hold and dispose of property.
(f) To invest surplus funds.
(g) To incur debts, liabilities, or obligations.
provided that all bonded indebtedness, certificates
of participation or other long-term debt financing
requ_ ires r~he prior consen~ of the members as set
out in Article IV hereof.
(h) To sue and be sued in its own name.
(i) To apply for grants, loans, or other aee±~tance
from persons, firms, corporations, or governmental
entitles.
(j) To use any and all financing mechanisms available
to the JPA subject to the provisions of Artiole IV
hereof.
(k) To prepare and support legislation related to the
purposes of the Agreement.
(1) To install, construct, operate, maintain, repair
and manage new or existing facilities as well as to
(m)
close or discontinue the use of existing
fa=ilities.
To le~y fees and collect payments therefor,
provided that paramedic or ambulance user fees
shall be approved by the member cities affected.
(n) To provide related services as authorized by law.
(o) To levy. and collect developer fees and exactions.
BY: 5- ~-~ ; 9:02.~t : ~L7A~' :L'CKF~- 714 724:545:: 6.'1~
(p) To contract
consultants.
for the
services of attorney~ and
1. -~~R.- The members of the Authority shall be the
original parties hereto and such other cities as may join the
Authority after execution of this Agreement. New members may
on the terms and conditions set out in Article VIII hereof.
2. De$i~netion of Directors. Before the effective date cf
Authority formation, each member by resolution of its governing
body shall designate and appoint it~ representative and an
alternate to act as its director on the Authority Board. Each
representative shall be a current elected member of the governing
body. Each director and alternate shall hold office from the fir~=
meeting of the Board after appointment by the mmmher,s governing
body for a term of four (4) years or as determined under 4(a) of
Article II, or until the selection of a successor by the appointin~
body. Each director and alternate shall serve at ~he 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 and alternate. No director or alternate
will receive compensation from the Authority for his or her
services, with approval of the Board, a director or alternate may
$5'V1' BY: 6- 9-9-J : 9:03k',i : RL'T.-N. .~ TUCK-ER- 714 724 6.045:=- 7/19
be reimbursed for reasonable expen=e~ incurred in the conduct of
=he business of the Authority.
3. ~k~-~. As provided by law, the principal
office of the Authority shall be the Fire Department's Water Street
headquarters or as otherwise desi~ated by the Authority.
(a) First meeting: The first and organizational meeting
of the Authority shall be held at it= principal office on Thursday,
September 1, 1994. At that meeting, the directors may determine
whether to adopt a rotation system of two (2) and four (4) year
terms to provide for increased continuity on the Board and shall
classify themselves into any groups selected.
(b) The Board shall meet at the principal office of the
Authority or at such other place as may be designated by the board.
The time and place of the regular meetings of
determined by resolution adopted by the Board,
resolution shall be furnished to each party hereto. All
meetings, including regular, adjourned and special meetings,
be caused, noticed and held in accord with the Bro~ Act as
be amended from time to time.
the board shall be
and a copy of such
Board
shall
it may
5. uorum- V ' . A majority of the directors shall
constitute a quorum for the purpose of the transaction of business
relating to =he Authority. Each director shall be entitled to one
vote. Unless otherwise provided herein, a vote of the majority of
.$DJ BY: 6-9-9J, : ~' '~ '
~ 0..,k',t : RL'I'A" ?L'CKER- ?l-~ ?24 6045:~ 8/19
=hose present and qualified =o vote shall bs sufficient for the
adoption of any motion, resolution or ordsr and to take any other
action deemed appropriate, to carry forward the objectives of the
Authority.
6. ~J~F~. At its first meeting the Board shall elect
from among its members a chair and vice-~air and thereafter at.the
first meeting in each succeed/rig fiscal year the Board shall elect
or re-elect a chair and vice-chair. In the event that the chair or
vice-chair ceases to be a director, the resulting vacancy shall be
filled in the same manner a= =ha nsx~ regular meeting of the board
held after such vacancy occurs. In the absence or inability of the
c~a~r to act, the vice-chair shall act as chair. The chair, or in
his or her absence =~e vice-c~air, shall 9reside at and conduct all
meetings of the Board.
7. ~inutes. The Board shall provide for the appointment of
a secretary to the Authority. The secretary of the Authority shall
cause to be kept minutes of regular, adjourned regular, and special
meetings of the board, and shall cause a copy of the minutes to be
forwarded to sac~ director.
8. Rules. The Board may adopt from time to time such
bylaws, rules and regulations for the conduct of its affairs as it
may deem necessary.
SENT BY: 6- 9-~4 : ~:08~t : RL~X . TUCKER- 714 724 604~:~ 5~1~
9. Fissal Year. The Authority's fiscal year shall be July
1 of each year to and including the following June 30.
10. AsseD~ of Members.
any matter requiring the approval of the
member shall be evidenced by a copy of
governing body filed with the Authority.
The assent or approval of a member
governing body of the
the resolution of the
11. Committees,
The Board may establish standing or ad hoc committees or
subcommittees composed of Board members, staff and/or the public to
make recommendationm on specific matters.
12. A~di$ional Officers and EmDlo~eee; contra~ services.
(a) As required by state law, Authority shall appoint
the County Auditor or a certified public accountant or treasurer to
perform the duties set out in Government Code Section 6505.5, and
shall appoint an auditor as required by that Section 6505 and
Section 6506. Pursuant to Government Code Section 6505.1, the
secretary and the controller and treasurer shall have charge of the
property of the Authority. The s~cre=ary shall file an honesty
bond in the su~ of Ten Thousand Dollars ($10,000), and the
controller and treasurer in the sum of Five Hundred Thousand
Dollars ($500,000) which fee shall be paid by the Authority. These
bonds nay be waived for independent contractors with equivalent
insurance.
,S~',% BY: 6- 8-9% : ~:O~k%t : gL%.tX '[CKE!R- 71% 72~ 60~5:=10/19
(b) The Board shall appoint general counsel and special
counsel to the Authority to serve as necessary.
(¢) The Board may contract with a member to provide
necessary administrative services to the Authority as appropriate.
Any such city member may be a charter or general law city. Any
administrative duties also may rotate from year to year.
III_ TRANSI T,R OF FIRE OPEIIATIONS
1. Transfer o~ County ~ssets and Li~billties. Upon the
effective date of Authority formation, County shall transfer to
Authority the assets and liabilities of the Orange county Fire
Department, exclusive of the Weed Abatement, Emergency Management
Division and Hazardous Materials Program office, as set out below:
(a) Personnel. On the effective date of Authority
formation, all employees of the Orange County Fire Department will
become employees of the Authority on exactly the same terms and
conditions as they presently are employed, and at its
organizational meeting, the Board shall adopt and ratify existing
Memorandums of Understanding, employment agreements and personnel
rules.
(b) Assets. Ail Fire Department assets, including and
not limited to real property such Fire Headquarters on Water Street
in Orange (but excepting the four deactivated fire stations) and
personal property and ec~/ipment and apparatus, whether or not
located at fire stations, Headquarters, on equipment or otherwise
BY: 6- 9-9t : !:04A.',t : .RL'rk TUCKER- 714 72-I 6045:~1i/19
shall be transferred to the Authority on its effective date of
formation.
(c) Reserves. Ail reserves in the Fire Department budget
existing as of the date of execution of this Agreement ars to be
transferred unincn~hered to the new Authority.
(d) ~. Existing contracts with Structural
FAre FUnd and cash contrac: cities will be transferred to the
Authority as of July 1, 1994, with service to be provided
thereafter by Authority.
(e) Records. Any and all business records and files,
whether computer records, hard copy, microfilm or fiche, historical
data; rosters; personnel records, organizational c-harts, job
descriptions, deeds, easements, equipment logs, warranties, manuals
and so forth, necessary or helplul to provide services.
2. Authority Assumption of LiabilitY. In consideration
for such transfer, Authority shall assume responsibility for any
and all tort and workers compensation incidents that occur on or
after the effective date of Authority formation. The County shall
retain responsibility and liability for any and all incidents that
occur prior to that date and shall retain all risk management
reserves that have been set aside for prior incidents.
Notwithstanding, the' Authority may continue to be a part of
County's self-insured risk management system and shall be
responsible for its contributions thereto.
3. County Provision of Information. Prior to the effective
date of the transfer, CounTy shall provide to Cities or their
.5L\7 BY: 6- ~-~4 : ~:0;~ : RLT.~N ZCKER- 714 724 6045:;12/1~
representative up-to-date lists of all assets including but not
limited to real property, equipment, reserves and so forth) and all
known liabilities [including but not limited to tort and workers
compensation cases and claim~) and any and all developer agreements
and deposits.
IV. FUNDING OF FIRE OPERATIONS
1. ~. within sixty (60) days after the first
meeting of the Board, a general budget for the first fiscal year
shall be adopted by the vote of a majority of all of the directors.
The initial budget and each succeeding budget shall include, but
not be limited to, the following: (a) the general administrative
ewpenses of the Authority to be incurred during the period covered
by the budget; and (b) the allocation of costs among the members of
the amounts necessary to cover the general budget expenditures and
fund reserves. Thereafter, at or prior to the last meeting of the
Board for each fisoal year, a general budget shell be adopted for
the ensuing fiscal year or years by a vote of at least a majority
of all of the directors. A written monthly budget performance
report shall be presented to the Board at its second meeting of the
following month.
2. ExPenditures for the ADDroved Budget. Ail expenditures
within the designations and limitations of the approved general
budget shall be made on the authorization of the board for general
budget expenditures without further action. No expenditures in
SEN7 BY: 6- 9-9~ : ~:05kXt : RLTA\ £UCKF. R- 714 724 6048:=I~/I~
excess of those budgeted shall be made without the approval of a
majority of all of the directors.
3. Contributions for Budgeted Amounts.
(a) Structural Fire l~un~ Citiee. County receives
structural Fire Fund (SFF) from the unincorDorated area and all
cities except Stanton, Tustin, Placentia and Seal Beach. On behalf
of such cities, and the unincorporated area, County shall pay all
SFF to Authority to meet budget exDensee and fu/~d reservee.
(b) Cash contra~ ci%ies. As part Of the budget
process, Authority shall determine amounts owing from Stanton,
Tustin, Placentia, Seal Beach, and cities otherwise receiving SFF
and any future members. Such amounts are due and payable within
sixty (60) days of receipt of a billing therefor. For the first
three (3) fiscal years of Authority's existing, Authority shall
limit annual cost of service increases to cash contract cities to
the annual change in the cost of fire operations as those were
calculated in the fiscal year prior to the effective date of
formation of the Authority.
(c) Failure to make payments due constitutes grounds for
termination of service and expulsion from the Authority. In the
event of non-payment, the Authority shall give sixty (60) days
written notice of such termination and expulsion.
4. Equity. The County and each member City shall be member
agencies in equal standing in the Authority. It is understood that
the cost of service shall not be adjusted by reason of equity for
BY: 6- ~-~ : B:05AN : RUT~ TUCKER- 714 724 6045::14/1~
any member agency for a period of three (3) fiscal years from ~he
effective date of Authority formation. Equity issues shall be
resolved only by a vote of at least a majority of all of the
directors. Any adjustments in future cost to any member agency
shall be based on considerations and factors that are e~uitable to
all members.
5. Special Assess~eR%$..
(a) During the Authority'e first 3 fisoal years, any
imposition of new, special taxes, fees or assessments shall apply
to all members and must be approved by a majority of all directors.
(b) After that 3 year period, special taxes, fees or
assessments shall be approved by a majority of all directors.
6. Approval of Bonded Indebtedness. Prior to any Authority
resolution authorizing the issuance of any bonded indebtedness,
each member shall approve any bonded indebtedness to be incurred by
the Authority. Any withdrawing member shall remain responsible for
bonded indebtedness which it has approved. As used herein, "bonded
indebtedness" does not include short-term tax a~tioipation notes
with a one-year (or shorter) term which requires a magority vote of
all directors.
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V. ACCO G AND AUDITS
1. Accountinq Procedures. Full books and accounts shall be
maintained for ~he Authority in accordance with practices
established by, or consistent with, those utilized by the
controller of the State of California for like public entities. In
particular, the Au~hority's controller and treasurer shall comply
strictly wi~h r~quirements of the statute governing joint powers
agencies, Arl:lole 1, Chap=er 5, Division 7, Title I of the
Govermm~nt Code oft he State of California (commencing with Section
6500). Any transition in accounting systems will occur no sooner
than July 1, 1995.
2. Audit. The records and accounts of the Authority shall
be audited annually by an independent certified public accountant
and copies of the audit reports shall be filed with
Auditor, the State Controller and each member within six
of the end of the fiscal year under examination.
the county
(6) months
VI. PROPERTY RIGI FS
1. Project Faoilitles and Property. On and
effective date of the Authority, all real and personal
including but not limited to, facilities constructed,
after the
property,
installed,
acquired or leased by the Authority, apparatus and equipment,
personnel and ouher records and any and all reserve funds shall be
714 724 6045:~-16/19
held in the name of the Authority for the benefit of the ~hers of
~he Authority in accordance with t-he ter~s of this Agreement.
2. Disposition of Assets UDon Termination. The Authority
may vote to terminate this Agreement, or terminaUion will occur if
only one member is left in the Authority. If terlnination occurs,
all surplus money and property of ~/%e Authority shall be conveyed
or distributed to each member in proportion to the funds provided
to the Authority by the m-~her, whether SFF or cash contract
amounts. Each member shall execute any instruments of conveyance
neceesaryto effectuate such distribution or transfer. In any such
distribution, the amount of SFF derived from each incorporated or
unincorporated city areas shell be considered as received from that
member in the same manner as cash contract payments have
contributed to surplus assets.
3. akiab~lities. Except as otherwise provided here, the
debts, liabilities and obligations of the Authority shall be the
debts, liabilities or obligations of the Authority alone and not of
the parties of this Agreement.
VII. WITHDRAWAL A_ND ADDITION OF NEW MEMBERS
1. City Member Withdrawal. No City member may withdraw its
participation in the Authority for three (3) years from
September !, 1994, or three (3) years from the date on which it
initially becomes a member. After that three (3) year period any
SE',-[ BY: 6- ~-~4 : ~:06.~.~I : ,~L'r.~-,-4 TUS.~R- 714 724 6045:~I'7/II
withdrawing c~ty member must give notice by January 15, of any year
of its intent to withdraw as of July 1 of '.hat year. However,
withdrawal shall not reduce a City me~ber's du~y to pay for bonded
indebtedness of the Authority attributable to that City incurred
prior to withdrawal.
2. A~ttion of New M--her~. A city presently providing it~
own fire services may join the Authority upon consent of a majority
of all directors of the Authority and agreement to terms and
conditions determined by the Board. A new City member may be
required to transfer to the Authority its fire facilities and
assets or to reimburse the Authority for a proportionate share of
facilities which the new City will utilize. The new member also
will be responsible for a proportion of the debts, obligations, and
liabilities of the Authority from these facilities, to the extent
agreed upon by the Authority and the new member at the time of
membership. The Authority Board may determine to waive all or part
of such contribution requirements in return for a offsetting
transfer of the new member's fire fa=ilities and assets to
Authority.
3. Withdrawal Qf County.
(a) County may not withdraT from the Authority for three
(3) years from September 1, 1994, and thereafter may withdraw from
Authorluy only upon notice to Authority by January i of any year to
allow Cities to give notice of withdrawal under Government Code
Section 25643 by March 1, both effective July i of that year. In
o55\T B~: ~- ~-84 : 3:07A.~1 : P~LTk' TCKER- 714
the tax transfer resulting from such withdrawal, this agreement
also shall serve as the County and Cities' agreement to transfer
100% of SFF to cities from which it is derived in exchange for
ongoing Authority fire service to any remaining County
unincorporated area, on the specific terms and condi~ion~
determined by the parties.
(b) In any event, County shall cease to be an Authority
member at such time as no County area remains within the
Authority,s boundaries and the tax transfer provisions of
Subsection (a) hereof.
IX. NOlqCE OF AGRR .MENT
!. I~tial Notice. Within thirty (30) days of the effective
date of this Agreement the Authority shall cause a notice of the
Agreemen~ to be prepared in the manner set forth in Section 6503.5
of the Government Code and filed with the Office of the Secretary
of State.
2. A~itional ~otic~. Within thirty (30) days of the
effective date of any amendments to this Ag-reement, the Authority
shall prepare and file with the Office of the Secretary of State
the notice required by said Section 6503.5.
BY: ~- 9-94 : $:07k'~t : Rb'TAN ~ TUCKER- 714 72-~ 6045:~1'9~{19
3. Not,ce to Members. No=ice =c members shall be deemed
given when mailed to them, first class, postage prepaid, or faxed
to the address/or fax no. se= out by their signatures.
4. ~endment. This Agreement may not be amended or modified
except by a written agreement signed by all of the members.
5. Headiaas. The headings in this Agreement are for
convenience only and are not to be construed as modifying or
explaining the language in the section referred
6. Severabilit¥. Should any par~, term, or provision of
this A~reement be determined by a court to be illegal or
unenforceable, the remaining portions or provisions of this
Agreement shall nevertheless be carried into effect.
7. No continuing Weiver. No waiver of any term of condition
of this Agreement shall be considered a continuing waiver thereof.
IN WITNESS THEREOF, the parties hereto have
Agreemen~ =o be executed and attested by their duty
officers as of ~he date first above written.
caused this
authorized
[SIGNATURE BLOCK FOR MEMBERS]
To include address, phone and fax numbers.