HomeMy WebLinkAbout13 OCFA FIN PLAN 06-18-01AGENDA REPORT
MEETING DATE: JUNE 18, 2001
350-05
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. NAULT, FINANCE DIRECTOR
APPROVAL OF THE ORANGE COUNTY FIRE AUTHORITY
FINANCING PLAN FOR THE REGIONAL FIRE OPERATIONS
AND TRAINING CENTER CONSTRUCTION PROJECT
NO. 13'
~ ,,[/ '/'
SUMMARY:
The Orange County Fire Authority (OCFA) has requested that its member agencies approve the
issuance of not to exceed $28.5 million long term debt to finance the construction of their Regional
Fire Operations and Training Center.
RECOMMENDATION:
Adopt Resolution No 01-62 approving the issuance of long term bonded indebtedness by the
Orange County Fire Authority for the purpose of financing the Regional Fire Operations and
Training Center.
FISCAL IMPACT:
The City's proportional share of the long term debt repayment obligation will be included in the
calculation of cash contract charges pursuant to Article IV.3.B of the Amended Joint Powers
Agreement. The total cash contract charge will not exceed the caps on annual adjustments.
DISCUSSION:
The Orange County Fire Authority (OCFA) has requested that its member agencies approve the
issuance of long term bonded indebtedness to finance the Regional Fire Operations and Training
Center. The following provisions from the Amended Joint Powers Agreement are applicable to this
proposed debt issuance:
· OCFA must obtain approval by two-thirds of its members to issue long term debt.
· OCFA shall be a public entity separate from the members of the JPA and its debts, liabilities,
and obligations shall not be the debts, liabilities, and obligations of its members.
As a consequence of the latter provision, the obligation to repay this debt issuance falls on OCFA,
not the individual members.
The Authority has provided a Preliminary Financing Plan outlining the structure and terms of the
proposed debt issuance (Attachment 1). A Financial Technical Advisory Committee (FTAC) was
established by OCFA to provide an independent third party review of this financing plan. The
FTAC reviewed and unanimously approved the Preliminary Financing Plan in April, 2001.
Members of the FTAC include:
· Tim Casey - City Manager, City of Laguna Niguel (Chair of the City Manager
Budget and Finance Committee)
· Ron Nault - Finance Director, City of Tustin
· Gary Burton - Chief Financial Officer, County of Orange
· Joan Steiner - Assistant Chief, Orange County Fire Authority
OCFA held a workshop for their Budget and Finance Committee and Board of Directors to review
and discuss the Preliminary Financing Plan on May 9, 2001. The Board of Directors unanimously
recommended that the Plan be forwarded for final approval by the Board.
OCFA staff also held a workshop providing an overview of the Preliminary Financing Plan for all
member City Managers, Finance Directors, and the County's Assistant CEO on May 23, 2001.
The Authority's Board of Directors approved the Plan on May 24, 2001 and adopted a resolution
authorizing OCFA staff to submit the Plan to the members for approval by their City Councils/Board
of Supervisors. A copy of OCFA's adopted resolution is provided as Attachment 2.
OCFA's goal is to obtain approval by one hundred percent of its members.
that each member adopt the resolution approving OCFA's issuance of
indebtedness and return the executed resolution to OCFA by the end of July.
OCFA is requesting
long term bonded
ult
Ronald
Finance Director
RAN:ts
Attachments:
1. Preliminary Financing Plan
2. Resolution of the OCFA Board of Directors Approving the Preliminary Financing Plan
3. OCFA Regional Fire Operations and Training Center Information Booklet
RAN ApDrovalOfO~'an ..'~e Coun:yF~reAt. tn ~.~y F ~nanc~ng Pla..~ F~C 0n s:r uc[,onP~ o;.ect2C01 .coc
1 RESOLUTION NO. 01-62
2
3
4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
APPROVING THE ISSUANCE OF LONG TERM BONDED INDEBTEDNESS BY
THE ORANGE COUNTY FIRE AUTHORITY FOR THE PURPOSE OF FINANCING
THE REGIONAL FIRE OPERATIONS AND TRAINING CENTER
5
6
WHEREAS, the City of Tustin is a
"Authority"); and
member of the Orange County Fire Authority (the
7
8
9
10
11
12
13
14
WHEREAS, the Amended Orange County Fire Authority Joint Powers Agreement dated as of
September 23, 1999 (the "JPA Agreement") establishing the Authority requires that two-thirds of the
members of the Authority approve the issuance of long term bonded indebtedness by the Authority;
and
WHEREAS, the Authority has requested that its member agencies approve the issuance of
long term bonded indebtedness for the purpose of financing the Regional Fire Operations and
Training Center (the "Facility"); and
WHEREAS, the Authority has submitted to the City a Preliminary Financing Plan dated as of
May 24, 2001; and
WHEREAS, the City desires to approve the issuance of long term bonded indebtedness for
the Facility as described in the Preliminary Financing Plan;
15
16
17
18
19
2O
21
22
23
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, does
hereby resolve as follows:
SECTION 1:
Each of the foregoing recitals is true and correct.
SECTION 2: In accordance with the JPA Agreement, the City hereby approves the
issuance by the Authority of long term bonded indebtedness in a principal amount not to exceed
$28,500,000 (the "Bonds") with a true interest cost not to exceed 5.5% and with a final maturity of not
more that nine years for the purpose of financing the Facility. The City acknowledges that in the
event that two-thirds of the members of the Authority approve the issuance of the Bonds, the
Authority may issue the Bonds without any further approvals from the City.
SECTION 3:
This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the
18th day of June, 2001.
24
25
26
27
ATTEST:
Tracy Wills Worley
Mayor
28 Pamela Stoker
City Clerk
ATTACHlvIENT 1
Orange County Fire Authority
Regional Fire Operations Training Center (RFOTC)
Preliminary Financing Plan
May 24, 2001
ORANGE COUNTY FIRE AUTHORITY
RFOTC - PRELIMINARY FINANCING PLAN
TABLE OF CONTENTS
II.
III.
IV.
RECOMMENDED RFOTC FINANCING STRUCTURE ......................... l
Ao
B.
C.
D.
E.
F.
G.
H.
BACKGROb~D ..................................................................................... 1
LEGAL STRUC'I-URE ALTERNATIVES ..................................................... 1
ANALYSIS OF CASH FLOWS REGARDING DEBT/CASH MIX .................. 2
SIZE OF ISSUE, COST AaND INTEREST RATES ......................................... 3
MATUR~TY/TER~ ................................................................................ 4
INTEREST RATE MODE ......................................................................... 4
RATINGS AND INSURANCE ................................................................... 4
METHOD OF SALE ................................................................................ 4
RFOTC CONSTRUCTION SCHEDULE AND STATUS .......................... 6
APPROVAL BY THE MEMBER AGENCIES ........................................... 6
RFOTC FINANCING SCHEDULE ............................................................. 7
SUMMARY OF 1 O-YEAR FINANCIAL FORECAST ......................................... EXHIBIT A
SUMMARY OF ESTIMATED COSTS OF ISSUANCE ......................................... EXHIBIT B
I. RECOMMENDED RFOTC FINANCING STRUCTURE
A. BACKGROUND
The OCFA Executive Committee selected a financing team consisting of a joint
partnership of PMG Financial Consulting and Kelling, Northcross and Nobfiga, lnc
serving as Financial Advisors; and Stradling, Yocca, Carlson and Rauth serving both as
Bond Counsel and Disclosure Counsel. After careful consideration, the OCFA staff, the
FTAC and Financial Advisor determined that the RFOTC should be structured as a fixed
rate issue and be marketed as a negotiated sale. The OCFA Executive Committee then
selected Stone & Youngberg to serve as Senior Managing Underwriter and Bank of
America and J.P. Morgan to serve as Co-Managing Underwriters.
B. LEGAL STRUCTURE ALTERNATIVES
RECOMMENDATION: REVENUE BONDS OF THE AUTHORITY~ PAYABLE FROM OCFA NET
GENERAL FUND REVENUES
The legal structure recommended by the financing team is JPA revenue bonds payable
from a pledge of net OCFA General Fund revenues (payment on bond debt service made
after funding the OCFA's operations and maintenance expenditures).
The OCFA has several structuring options; however, revenue bonds and certificates of
participation (COPs) are the two most applicable structures given the complexity of the
OCFA's credit and the market's acceptance of these structures. Revenue bonds are a type
of m-exempt security issued by municipalities to finance capital improvement projects
and equipment acquisitions. Revenue bonds differ from COPs in that the issuer must have
the power to issue revenue bonds. The OCFA has this power. Revenue bonds are secured by
a pledged source of revenues. The issuer generally pledges general operating revenues to
pay the annual debt payments.
The revenue bond structure xvas selected for several reasons. In general, revenue bonds
are a familiar structure to the market and are favorably received by investors. For OCFA
in particular, the revenue bond pledge highlights the broad pledge of revenues, including
property tax revenues, which the Authority can make under State la,v; this power
favorably distinguishes OCFA fi'om cities and most other municipal credits. Finally, this
structure was selected to balance the operating requirements of the Authority xvith the
requirements of bond investors.
The revenue bond structure, however, requires a public hearing by the City of Irvine, the
location of the project site, subject to Government Code Section 6586.5 (a) (2). The
finding to be made is that the financing of the facility results in one or more significant
public benefits as listed in government Code Section 6586. The significant benefit here is
Section 6586(d), a finding that the facility will result in a more efficient delivery of local
agency services to residential and commercial development.
An alternative to issuing revenue bonds is COPs. COPs represent an undivided interest in
the payments made by a public agency pursuant to a financing lease, or an installment
purchase agreement. COPs are not treated as indebtedness of the issuer under state law.
Under the typical COP lease financing structure, payment obligations are subject to; 1)
annual appropriation of lease payments; 2) potential termination of lease payments if
there is a loss of use of the facility; and 3) the need for borrowed interest (or capitalized
interest). Another disadvantage of the COP structure is the required establishment of a
non-profit public benefit corporation/authority for the purpose of serving as lessor in the
financing.
The following summarizes the terms and provisions of the RFOTC recommended revenue
bond structure:
LEGAl, STRUCTURE
AUTHORIZING PARAMETERS
TOTAL PROJECT COST
BOND ISSUE PAR AMOUNT
CASH CONTRIBUTION
PAYMENTS
INTEREST RATE MODE
PAYMENT DATES
OPTIONAL CALL PROVISIONS
RATING
TIMING
J-PA REVENUE BONDS
$28.5M NOT-TO-EXCEED TOTAL BOND ISSUE; 5.5%
NOT-TO-EXCEED INTEREST RATE
APPROXIMATELY S50M
APPROXIMATELY $25M (NET AFTER 10% RESERVE
AND COST OF ISSUANCE)
APPROXIMATELY $25M ($22M FROM OCFA
CAPITAL RESERVES, $3M FROM STATE GIL~,NT)
APPROXIMATELY S4. I M / 9 YEARS / LEVEL ANNUAL
FIXED
~'VI_ARCH AND SEPTEMBER
TO BE DETERMINED, WILL EVALUATE THE COST
IMPLICATIONS OF 7 YEAR PAR CALL
EXPECT INSURANCE AND RATINGS (MOODY'S/S&P)
SEPTEMBER 2001/ TO COINCIDE WITH AWARD OF
CONSTRUCTION CONTRACT
C. ANALYSIS OF CASH FLOWS REGARDING DEBT]CASH M~X
RECOMMENDATION: ACHIEVE A 50/50 DEBT AND CASH MIX
The Authority's projected cash riOT indicates that the debt repayment can be comtbrtably
managed over a nine-year term, avoiding the complexities of structuring the repayment
beyond the current 10-year member commitment period. The RFOTC financing will
entail both a $25 million cash contribution from OCFA and a bond financing £or $25
million in net proceeds. Having examined OCFA's balance sheet, the OCFA staff, FTAC
and financing team believe that this 50/50 mix accomplishes an optimal mix between
cash and debt financing.
The proposed amount of debt leaves OCFA with debt service requirements of
approximately 3% of its projected 2001/02 operating revenues. By way o~' comparison,
according to Moody's Investors Services, the median debt burden for all Cali['omia cities
is 3.5%, for cities with polm~Iations in excess of 250,000 is 6.4% and for counties is
approximately 2.4%. Taking into account future lease payments under the OCFA's
master lease program, the projected debt burden goes to approximately 4.25%. OCFA
should be viewed as having a moderate and manageable level of debt by the rating
agencies and one of the credit strengths is the relatively fast amortization of the debt
(nine years).
From the perspective of available fund balances, a $25 million cash contribution results
in reasonable and prudent unreserved fund balances over the next several years, even
affcr accounting for the 15°,4 operating'reserves and other reserves. This is a reasonable
and prudent level of available balance for capital and operating contingencies. A cash
flow summary is attached as Exhibit A. It is important to note that the cash flow
projection assumes a very conservative rate of property, tax growth, assuming only Y2 of
the growth projected by RSG for the fiscal years 2003/04 through 2009/10.
The exact amount of the cash contribution will be £malized ~ollowing the receipt of
construction bids in order to provide sufficient funds in the event bids come in higher
than estimated.
D. SIZE OF ISSUE, COSTS AND INTEREST RATES
RECOMMENDATION: NOT-TO-EXCEED PAR VALUE
!.iV. T~_REST .~4 TE
OF $28.5 MILLION AND 5.5%
Based on funding $25 million in net proceeds, the estimated amount of the bond issue
would be $28,115,000, including a 10% debt service reserve fund (which is ultimately
applied to debt service), estimated costs of issuance and undenvriter's discount of
approximately $300,000. A summary is attached as Exhibit B itemizing the estimated
costs of issuance. This estimate does not include a bond insurance premium. Bond
insurance will be pursued and evaluated for cost effectiveness in light of any conditions
imposed by the bond insurers. If insurance is obtained, the amount of the issue would
increase t:,trt debt service ,~,cu!d be lower compared to an uninsured issue. Based on
market conditirjns as of mid April, annual gross debt service would be slightly under
$3.86 million. The estimated true interest cost, which takes into account the interest rates
and underwriting discount, would be a little under 4.5%.
Based on the current timetable, the bond sale is scheduled to take place in September.
The actual interest rates are subject to market conditions at the time the bonds are sold.
Interest rates may move.as a result of general interest rate movements as well as supply
and demand conditions specific to the municipal market and the State's issuance of
power related debt. To provide room for potentially higher interest rates, it is
recommended that the not-to-exceed true interest cost for the purpose of member agency
approval be set at 5.5%. At the not-to-exceed level the annual debt service increases to
approximately $4.1 million, which is supportable by the cash flows.
The not-to-exceed par value of the bonds is $28.5 million. This contingency will
OCFA staff operating flexibility to complete the financing.
E. MATURITY/TERM
RECOMMENDATION: NINE-YEAR AMORTIZATION MATCHING REMAINING NINE YEARS ON
lO-YEAR SERVICE CONTRACTS
Investors will be particularly interested in the amortization of the OCFA's debt based
upon the length of the OCFA's contracts with its participating members. Assuming a
September 2001 issuance and given the fact that the OCFA will have nine years
remaining on its I O-year contracts to provide services to member cities, the financing
team recommends a final maturity that matches the remaining life of the contract re/m, 9-
years.
Another approach is to amortize the debt further beyond l0 years. Due to the uncertainty
of member agency participation beyond the current contract period and given the
OCFA's demonstrated ability to fund nine-year debt service on a $28.5 million bond
issue based on the Authority's cash flows, the financing team is recommending against
issuing bonds with a maturity exceeding nine years.
F. INTEREST RATE MODE
RECOMMENDATION: FIXED RATE MODE
The financing team recommends that OCFA issue its bonds in a fixed-rate mode. There is
sufficient uncertainty regarding your long-term cash floxvs, both in terms of revenues and
long-term reserves, that we cannot recommend that you incur any additional risk in the
form of variable interest rates. Furthermore, a variable rate structure may add a level of
complexity (for example, letter of credit counter-party risk and interest rate volatility)
that may make gaining member approval more difficult.
RATINGS AND INSURANCE
RECOMMENDATION: PURSUE BOTH INSURANCE AND RATINGS
Given the complexity of the OCFA Joint Powers Authority, the number of member
agencies and various credit considerations, the financing team recommends soliciting
bids for municipal bond insurance. An insurer will be selected based on the lowest most
responsive bid. Also, ratings will be requested from both Standard & Poor's and
Moody's. Rating results should be received during July 2001. If the OCFA receives an
"A" or better rating from both agencies, the financing team will evaluate the cost
effectiveness of insurance given the cost of the lowest bid.
H. METHOD OF SALE
RECOMMENDATION: NEGOTIATED SALE TO ALLOW FOR EXTENSIVE RETAIL PRE-
MARKETING (AS APPROVED BY THE BUDGET & FINANCE AND EXECUTIVE COMMITTEES)
The two most common sale methods are competitive and negotiated. Under the
competitive sale method, the OCFA would solicit bids from underwriters to purchase its
4
bonds. The bonds are sold to the bidder that submitted the lowest overall interest rate.
With a negotiated sale, the issuer selects the underwriter in advance. The underwriter
participates in structuring the issue, and the issuer participates in agreeing to interest rates
and underwriter spreads based on various market factors.
The RFOTC issue will be sold through a negotiated sale to produce the lowest overall
cost of financing. Listed below are some of the areas we considered ~vhen making this
recommendation.
OCFA Credit Complexities
· OCFA has not previously issued debt and does not plan to issue additional debt in the
foreseeable future. This is a drawback because the OCFA is an unknown credit in the long-
term tax-exempt market and OCFA debt will be considered less liquid in the secondary,
market compared to frequent issuers.
· OCFA has severely limited revenue raising ability and little control over its key expenditures.
The financial condition of each cash contract city is relevant to OCFA's overall credit, which
adds some degree of complexity. This is further complicated by the caps on the cash contract
charges.
· OCFA has exposure to future labor negotiation issues due to the potential for binding
arbitration in future contract negotiations.
· The introduction of AB 1104 by Assemblyman Maddox represents a credit issue because of
the uncertainties posed by this legislation.
· The RFOTC financing structure will be somewhat unique when compared to "plain vanilla"
revenue bonds or Certificates of Participation.
Retail Marketing
· OCFA debt is expected to be attractive to the large retail investor base living in Orange
County and elsewhere in California due to the quality of the underlying tax base and
economy and the relatively shorter term of the debt.
· Retail investors are not as yield sensitive as institutional investors such as mutual funds;
therefore, retail investors may accept a lower yield, resulting in savings to OCFA.
· A negotiated sale permits the use of an exclusive retail order period which may be targeted to
Orange County/Southern California investors.
Unstable Market Conditions
· The financial markets have been fairly volatile. Therefore, it will be advantageous to have
the flexibility ora negotiated sale, allowing OCFA some greater flexibility, in timing its bond
sale than could be accommodated with a competitive sale.
The volume of bonds in the market is growing, and this factor is compounded by the large
upcoming State issuance of power and transmission bonds. With a high volume of competing
bonds in the market, attracting investor interest to OCFA's smaller issue can be more
difficult.
II. RFOTC CONSTRUCTION SCHEDULE AND STATUS
The OCFA accepted an irrevocable offer of dedication from the Irvine Company for 16.5
acres of land to be used for the RFOTC. The property is located in the City of I~'ine and
was valued at over $10 million in 1996 and currently is estimated to be worth S16
million. In addition, in 1999 the OCFA ',,,'as awarded a $3 million state grant for the
construction of a training facility. The total estimated cost of the RFOTC is $50 million.
Therefore, all debt analyses are based on a net cost of S47 million. Once completed, thc
new facility will house a 24-hour Emergency Communications Center, a Training Center,
an Automotive Center, a Material Management Center, administrative and executive
functions, and a Public Services and Support Center.
A conceptual four-year project and baseline implementation plan has been developed for
the RFOTC. The information below summarizes past and future RFOTC implementation
progress:
FY 2000/2001:
OCFA took ownership of the property, hired a construction management team; updated
the needs analysis, hired an architect, and developed the budget for the project.
FY 2001/02:
OCFA is overseeing the completion of the projcct dcsig-n, awarding the construction
contract, and hiring an essential facilities inspector.
FY 2002/03:
OCFA will monitor the actual construction, develop furniture and moving plan, and make
preparations for the disposition of cun'ent OCFA headquarters' properties.
FY 2003/04:
OCFA will implement the relocation to the new faciliw and the disposition of current
buildings.
III. APPROVAL BYTHE MEMBER AGENCIES
The Authority's Amended JPA document requires that any long-term bonded
indebtedness to be incurred by OCFA be approved by two-thirds of the member agencies.
IV. RFOTC FINANCING SCHEDULE
Following is the current financing schedule for the purpose of indicating the steps and
time frames for implementing a debt transaction for the financing of the RFOTC. The
timeline reflects that bonds will be priced in September 2001 and the financing will
coincide with bid award.
Date
April - May, 2001
May 9, 2001
May 24,2001
Week of May 21, 2001
June - July, 2001
July 11,200l
Activity
Financing team'staff prepare recommended financing plan. review
plan with the FTAC. First draft legal documents and preliminary
official statement.
Present workshop on prelimina~' financing plan to the Board of
Directors.
Present preliminary financing plan to the Board of Directors for
approval.
Workshop for all Member Cities and Count)' - Overview of
Financing Plan.
Make presentations to rating agencies and bond insurers. Obtain
member cities/county approval of financing plan (2/3 member
approval required). OCFA staff to assist as needed with
presentations to City Councils/Board of Supervisors.
Present Preliminary. Official Statement to the Budget and Finance
Committee.
July 20, 200 l
July 26, 2001
July 27, 2001
Sept 12. 2001
Sept27,2001
Obtain ratings and insurance bids.
Obtain approval from the Board of Directors to distribute the
Preliminar3' Official Statement.
Print and mail the Preliminary. Official Statement.
Present final financing plan and documents to the Budget and
Finance Committee.
Obtain final approval of the financing plan and documents from the
Board of Directors. Price bonds, award construction contract, and
sign the bond purchase contract agreement.
ATTACHMENT 2
RESOLUTION NO. 2001-07
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OIL4~NGE COUNTY FIRE AUTHORITY
APPROVING A PRELIMINARY FINANCINO PLAN'
FOR THE REGIONAL FIRE OPERATIONS & TILMNING CENTER
WHEREAS, the Board of Directors (the "Board") of the Orange Count' Fire Authority
(the "Author/ty") desires to issue long-term bonded indebtedness to finance a Regional Fire
Operations & Training Center (the "Facility."); and
WHEREAS, the Aa,nended Orange Count],.' Fire Authority Joint Powers Agreement dated
as of September 23, 1999 (the "JPA Agreement") requires that the Authority. obtain the consent
of not less than two-thirds of its members in order to issue long-term bonded indebtedness; and
WHEREAS, there is on file with the Clerk of the Board a PreliminaO' Financing Plan
dated as of May 24, 200l (the "Preliminary. Financing Plan"); and
WHEREAS, the Authority desires to approve the Prelimina.q,.' Financing Plan and submit
it to its members in order to obtain their consent to having the Authority issue long-term bonded
indebtedness to finance the Facility;
NOW, THEREFORE, the Board of Directors of the Orange County Fire Authority
HEREBY RESOLVES as follows:
1. Each of the above recitals is true and correct.
The Preliminary. Financing Plan is hereby approved and the Fire Chief, and his
designees, are authorized and directed to submit the Preliminary. Financing Plan to
the members of the Authority. and to request that the members approve the
Authority to issue up to $28,500,000 of long-term bonded indebtedness (the
"Bonds") with a true interest cost not to exceed 5.5% and a maturity of not more
than 9 years in order to finance the Facility'.
The Fire Chief, and his designees, are authorized to take all steps necessao' to
obtain the approvals of the member agencies and to cause the necessao' financing
documents to be prepared for submission to this Board at a later date.
This Resolution shall take effect immediately upon its adoption.
Chai fthe OCFA Board of Directo'rs
DOCSOC~817505v P24381.0001
Resolution No. 200 !-07
Page - 2
STATE OF CALIFORN'IA
COU.,'NTY OF ORANGE
CITY OF OI:L,-XNGE
SS.
I, Nancy Swanson. Clerk of the Orange County Fire Authoriu', do hereby certit5' that the
tbregoing Resolution No. 2001-07 was duly passed and adopted at a regular meeting of the Board of
Directors of the Orange County Fire Authority held on the 24th day of May, 2001 by the following roll
call vote, to wit:
AYES:
NOES:
ABSENT:
Bob Bell, Villa Park; Steve Berry., alternate, Buena Park; Ken Blake, La Palma; Shawn
Boyd, Seal Beach; Joe Brown, Laguna Niguel; Sherri Butteffield, Mission Viejo; Carol
Gamble, Rancho Santa Margarita; John Greiner, San Juan Capistrano; Tony Lam,
Westminster; Chris Lowe, Placentia; Frank McCoy, Cypress; Marilynn Poe, Los
Alamitos; Susan Ritschel, San Clemente; Dr. Brenda Ross, Laguna Hills; Ken Ryan,
Yorba Linda; R. Craig Scott. Laguna Hills; Todd Spitzer, Count?' of Orange; Tracy
Worley, Tustin; Helen Wilson, Lake Forest.
None.
Harold Kaufman, Dana Point; Patsy Marshall, Buena Park; Chris Mears, Irvine; David
Sha'~wer, Stanton; Tom Wilson, County of Orange.
NANCY SWANSON
Clerk of the Orange Count' Fire Authority
Regional
Fire
0 perations &
Training
Center
0 C F A
Orange County Fire Authority
Board of Directors
Shawn Bo,/d, Seal Beach
Chair
Susar~ 13itschel, San Clemente
Vice Chair
Tedd Spitzer, Coumy of Orange
'[orn Wilson, County of Orange
(TB'3), Alisio Viejo
Patsy Marshail, Buena Park
Frank McCoy, Cy.~ess
I-tarold Kaufman, Dana Point
Chris Mears, Irvine
Ken Blake, La Pa!ma
R. Craig Sco~t, Laguna Hil!s
,Joe Brown, La,quna Niguel
Dr. Brenda Ross, La§una Woods
Helen Wilson, Lake Forest
Marilyn.q Poe, Los Alamitos
Sherri Butterfield, Mission Viejc
Chris Lowe, Placentia
CaroJ Gamble, Rancho Santa Margarita
John Greinor, San Juan CapisLranc
David Shawver, S~.anto;}
Tracy Wills Worley, Tustin
Bob Bell, Villa Park
Tony I.am, Westminster
Ke,~ Ryaq, Yorba Linda
Orange Connty Fire Authority
PO Box 86, Orange. CA 92856-9086 * 180 S. Water St., Orange CA 92866-2123
Chip Prather, Fire Chief(714) 744-0400 www.ocfa.org
April, 2001
Dear Friends:
I would like to share with you tile OCFA plan to "Safeguard tile Future." Tile following pages contain
information developed to inform Orange County Fire Authority residents and businesses of our vision
to build a new Regional Fire Operations and Training Center. This campus will be comprised of 911
emergenq, communications center, training, and public safety support facilities which will meet the
needs of current and future Orange COtlnty generations to come.
This document highlights why the center is needed and bow it will improve the reliability of fire
protection and emergency medical service systems. The time for undertaking this project could not
be more appropriate. The dedication ora 16.5-acre site, a S3 million planning grant from the State,
and a positive financial forecast aJI contribute to making this campus feasible.
We have developed an extensive public outreach effort to the communities surrounding the project
to keep them informed on the progress of our project and elicited their input oil design consider-
ations. OCFA elected officials who play a key role in approving the design, budget and financing
requirements are also provided with regular briefings and updates on the project.
I personally extend an invitation to each of you to share our vision and support this important under-
taking which allows us to meet the future emergencs, services needs of our communities.
Sincerely,
Chip Prather
Fire Chief
Serving the Cities of.' Alisio Viejo · Buena Park · Cypress · Dana Point · h'vine · La Palina · I.aguna Hills ° Laguna Niguel · Laguna
Woods · I.ake Forest · Los Alamilos ° Mission Viejo ° Placenria · Rancho Santa Margarita · San Clemente ° San Juan Capistrano ·
Seal Beach · Stanton ° Tustin · Villa Park ° Westminster o Yorba Unda
and Unincorporated Areas of Orange Counq,
Our Vision
You can count Oil uS...
Every member of the Orange County Fire
Authority contributes to the quality of life within
our communits'.
We protect and support the needs of our
"neighbors" to the fullest extent possible while
helping and supporting ourselves.
We believe in our proud traditions and our
dynamic future.
Our community respects and values our services and
we constantly reinforce that the responsibilities
with which we are entrusted are well placed.
Our Mission
We proudly serve the changing needs of our
communities by providing.the highest quality
regional emergency, safe~y, and support ser,&es with:
Professionalism
Enthusiasm
Organizational Integrity
Pride
Leadership
Effectiveness
Our people pledge a commitment to preserving the
quality of life. We protect lives, propert3;, and tile
environment with compassion, vigilance, and
dedication to excellence.
Table of Contents
Introduction page 1
Executive Summary
page 3
Project Overview page 7
Financial Strategy page 10
Conclusion page 11
Appendix page 13
OCFA
I n troduction
Ever since the Orange County Fire Oopartment was formed in 1980 and later
became the Orange County Fire Authority (OCFA)in 1995, a new training center
has always been a distant dream. That dream, however, is qow becoming a
reality as progress continues with the new Regional Fire Operations and Training
Center or RFOTC.
To embark on this large and complex project, it was necessary to retain the
services of a strong project management firm. In July 2000, the local Orange
County firm of Holmes & Narver was selected to oversee and advise OCFA on all
aspects of the project through move-in. The international company of Hellmuth,
Obata, and Kassabaum (I-t01(), was hired in September 2001 as the design
professional to finalize a needs assessment, develop design plans, and provide
design administration through construction. Pending financing approval from
OCFA's 22 member cities and County of Orange in early summer 2001,
groundbreaking and construction is planned for fall 2001.
]'his document provides an overview of the Regional Fire Operations and Training
Center (RFOTC) project. It is intended to give readers insight into OCFA's need to
design and construct a 911 emergency communications center, fire training, and
support facilities.
This document is broken down into four sections.
· The first section is an Executiv-~ Summary providing an overview of the
business need for a new headquarters campus.
· 'ihe second section will present a Project Overview with a brief description
of the components lor the new campus.
· The third section will discuss Financial Strateg!es being considered to pay
for the project.
· The fourth sec[ion is the Conclusion: summarizing the need for the headquerter
campus.
· The Appendix provides a erie[ Overview of the OCFA, its membership, the
services provided and how it operates.
Executive Summary
The Orange County Fire Authority (OCFA) serves as the fire
departrnent for 22 Orange County cities and the County's
unincorporated area, and is committed to serving more than
1.2 million citizens. Primary services include firefighting,
emergency medical services, hazardous materials response,
and search and rescue. Additional responsibilities include fire
code enforcement, plan review, and public safety education.
These services are provided by 1543 employees that includes
754 career firefighters, and 483 reserve firefighters who
respond from 63 fire stations. Support staff are located
throughout facilities located in the Cit3, of Orange. Challenges
faced by OCFA personnel require a high degree of preparation
and training. While the cornerstone of the department is
primarily fire protection, fire prevention, and emergency
service delivery, the department also reaches into the
community through activities such as, Junior Firefighter
programs in the schools, the Explorer program, CPR training,
and participation in community events.
Statement of OCFA's Current Facili~' Issues
When the OCFA became an independent organization by
forming a Joint Powers Authority IJPA)in 1995, it absorbed
many of the responsibilities and services that had previously
been perfor.m, eo by the County. To respond to this growth over
the years, OCi-A increased space by remodeling and enlarging
older buildings which now includes 13 facilities spread
throughout the City of Orange. These properties represent
over 70,000 sf of space, of which over 28,000 sf is leased.
The existing Headquarters in Orange, consists of a 911
emergency communications center, vehicle maintenance and
repair, warehousing, equipment repair, tire prevention, a training
office, administration and support activities. While some
activities are located in decentralized leased facilities, the
majority of tho essential facility functions occur in structures
that were constructed in or before the 1960's.
These facilities do not meet modern earthquake or security
standards; do not have reliable utilities; are undersized; and
do not allow for expansion to keep pace with changes in
technology. In addition to the physical condition of these
facilities, the separation of support departments spread out
over multiple locations, most within leased space, is not cost
efficient and does not encourage or support effective
management and communication goals or practices.
Despite the importance of training for firefighter safety and
performance, the OCFA does not have a dedicated training
facility. As one of the largest fire departments in the State of
California. there is not adequate classrooms or areas to
practice the most basic of firefighting techniques. Training
must be scheduled at facilities owned by others. OCFA, and
the community its serves, would benefit from a modern
trainlng comp!ex where timely, consistent, and verifiable
training can be conducted.
For a number of years the OCFA has known that it needs a
major new complex and now there is an opportunity and plan
for building it.
Setting tile Stage with Our Accomt)lishments
Over the past several years, 0CFA has been successful in
making significant strides towards a new Regional Fire
Operat:.ons and fraining Center, due in part to the following
accomplishments:
· Secured ownership of a 16.5 acre site centrally located in
the Cit,/of Irvine. The property was obtained from The
Irvine Company and is valued at $17 million. It was obtained
at no direct cost to the 0CFA. A Conditional Use Permit
was also obtained which allows the project to be
constructed on this property.
In!ersection of Jarnboree Road and TusSn Ranch Road
· Received a S3 million state grant to begin site development
and fund initial project start-up costs.
of any financing plan associated with the project and also
assists in selecting finance professionals for debt financing.
· Entered into lO-year service contracts with member
jurisdictions that allow for organizational stability and for
financing to be achieved.
· Retained the services of Holmes & Narver at a cost of $2.9
mil!ion for all phases of the project through
move-in. Holmes & Narver is an experienced project
management firm who provides a high degree of
assurance that the project will be completed on time and
on budget.
· Engaged the architectural/engineering firm of Hellmuth,
Obata, and Kassabum, at a fee of S3.1 million, to finalize a
needs assessment for the project in order to establish
square footage and adjacency requirements. With valuable
input from the Board of Directors, City of Irvine, City of
Tustin, The Irvine Company and interested community
members, a project design and cost estimste of S50.4
million was established for the project.
The Project
The project site, known as the Regional Fire Operations and
Training Center (RFOTC), is located at the intersection of
Jamboree Road and Tustin Ranch Road in northwest Irvine.
The 16.5-acre complex will house the following essential fire
service components:
· An Emergency Communications Center to house 911
systems and dispatch staff, radio, paging, and telephone
communication systems, expanded dispatch, an emergency
policy center, information systems. Back-up emergency
power will allow the facility to remain operational during
and after major emergency events.
Initiated an aggressive Cornmunib/Outreach Program with
the adjacent residential area neighborhoods and he!d two
town-hall meetings to present project information, obtain
input, and answer questions. Two signs were installed at
the existing site entrance to indicate the nature of the
proposed project, including a designated contact number
for questions. A community web site was also developed
to provide interested persons with updated information
(RFOTC.COM).
A dedicated Training Tower and Grounds designed to
provide firefighters with classroom education and hands-
on training props that provide realistic and simulated
hazardous work environments. Training for emergencies
before they happen insures a proper and safe response in
the community. An observation window in the training
tower will allow the public to watch firefighters conduct
various training activities.
' .' .,'."('!:i ~."~;-~ ~*?~!..~:.~ .."::," :.!~)..",',.'..'.,.;,. ~.'..~,;.~:......:~.'..":'~.':...?:'".C':'::,':.,' .'
~"~"~"' '*."i~;' · :'.'.'.~:';-~';~.~ ;,~,~"-;~,,~ ..'~ ~:~ ~ '~'~? '~.'.;~:'~ ~i:~ ~,77~!.~;: ~,.'":,.'.:::..
·:
· Conducted a financial analysis to verify the project's~~¢~.,..~.,~
;.. , -,~;,,'... ~ ~..;. ¢,. :.:;~.' -.',~ ~,
affordability. Established a Financial lechnical Advisor,/
:~'~' ~ ....
Committee to provide an independent third party review ~~.' r''~''''i~''~
4
· Make presentations before the governing boards of each
member agency to obtain approval of the financing plan
with final approval of financing by the OCFA Board of
Directors in August 2001.
· Award a public works construction contract in September
2001 with groundbreaking to be held in October 2001.
· Begin construction November 1 for a period of 18 months.
· An Automotive Maintenance Facility that will provide
optimal working conditions for safe and efficient
maintenance, repair and testing of fleet vehicles and
equipment. An adjacent materiel warehouse area will
allow for organized storage, maintenance, construction and
repair of essential supplies and equipment.
· A Public Services and Support Facility designed as a
centralizec~ one-stop customer service center that includes
Fire Prevention, Community Relations & Educatioo, a
Training and Education Center, Human Resources, Clerk of
the Authority, Finance, and other administrative support
functions.
Estimated Cost
Based on the results of the program needs assessment and
subsequent schematic design efforts, a target budget was
established at $50.4 million. This estimate represents the
total cost of the RFOTC project including program
management, design professional fees, facility construction,
co,'lstruction contingency, furniture, fixtures and equipment
costs (FF&E).
The Schedule
Maior milestones necessary for the remainder of the project
and respective dates to meet them are as follows:
· Submit a financing plan to the OCFA Board of Directors for
preliminary approval in May 2001 and conduct a workshop
for all member agencies to inform them about the plan's
provisions.
· Transition to new facility by August 2003 and continuing
through August 2004.
A Window of Opportunit3'
In 1997, a preliminary needs assessment was performed to
assess organizational needs and determine if the proposed
16.5-acre site in Irvine would accommodate OCFA needs. It
concluded that the best-fi~ solution to support OCFA's
functional needs was a headquarters and training complex
organized in e "campus like' settiqg.
Given the current economy, the OCFA has a window of
opportunity to build a new headquarters, 911 Emergency
Communications Canter, and training complex at the lowest
possible cost it will likely ever see. With the contribution from
The Irvine Company, which dedicated the land, and the State
of California, which provided S3 mi!lion for initial planning
and project management, the Regional Fire Operations and
Training Center (RFOTC) is ready to become a reality.
The primary goal of the RFO'rC will be to meet the
organization's functional objectives to enable the OFCA to
provide quality emergency services to its membership. The
RFOTC is more than just buildings and grounds. It will be the
nerve center of the 0CFA, and will provide employees w!th
the right tools and resources to do the job they are entrusted
to do. Tile RFOI'C's role will be no less than to help
"Safeguard the Future" for all those served.
· Complete design work and submit for plan review in July
2001.
5
New Regional Fire Operations and Training Center
.........~ I1:~_....-E~..~.~.~...,,:_ ..
..,."~'"~ ~'~7~ ..... -'5'*'~ ~
.- . . . ......_. .... ...,.~.,~~-~: ~ ......... ~ .... ~ .'
~~~'.:.:. ~ ....- .... . ~'. :,~- .: ., '.. ._~ · ... ... .... ,.. .....-....
........ I.I .... [ ....... ..:..' . ......... .'~,: : :: ..~ .... :. "--: ....
P reject Overview
With the support of Holmes & Narver, the project management
firm, Hellmuth, Obata + Kassabaum (HOK) was selected as the
design professional for the new RFOTC. Their extensive
validation efforts of the OCFA program needs provided the basis
for the schematic design phase. In keeping with the OCFA
"Good Neighbor" policy, several meetings were conducted with
the local community neighbors, The Irvine Company, the City of
Irvine, the City of TusIin and local utility companies to obtain
input on key design and development issues such as:
· Exterior Lighting
· Trees for Screening
· Exterior Materials & Finishes
· Noise A, enuation
· Elevations
· Roof Design & Materials
· Building Orientation
· Energy Efficiency
· Traffic Flow
The feedback provided was developed into the innovative
design keeping with the surrounding neighborhood.
Throughout tile schematic design process value engineering
efforts were implemented to maintain the project target
budget. The following paragraphs provide a brief description
of each component and their role in supporting the OCFA's
functional needs.
'Fhe New 911 Eme~,gency Communications
- 23,896 Square Feet
Tile 911 Emergency Communications Center is being designed
and constructed with base isolation to withstand almost any
earthquake or emergency. It will be the nerve center for all-
essential computer, network, operations and systems
equipment including a 911 system, radios, telephones,
information systems, and emergency power. Utilities, such
as power and telephones, will be designed to ensure
redundancy and reliability to the site. The new center will
allow emergency communications staff to meet mission
essential needs including efficient and reliable receipt and
dispatching of 911 emergency calls.
The Ne~v Training 'lbwer and Grounds
- 24,009 Square Feet
The proposed Training Tower and Grounds is planned around
a campus-style environment witi~ specialized facilities for both
classroom and fire ground training to meet NFPA training
guidelines.
]'he focal point of the fire training ground will be a six-story
computerized burn-prop training tower that will be used for
high-rise, industrial, ahd residential training scenarios,
7
repelling, and other technical training maneuvers.
Computerized natural gas fire and artificial smoke simulation
systems provide for enhanced and safe fire training. This
tower will include an observation window so that the public
can observe fire behavior and see the techniques used to put
out a fire. A fire sprinkler demonstration area will also be
utilized for public educaticn purposes. Adjacent to this tower
will be a two-story strip ma',l/storage prop designed with a
computerized natural gas fire-training simulator as well as
moveable mazes, roof and attic penetration props.
An outdoor pavilion will provide seating for debriefing and
equipment training and allow viewing for large group
demonstrations and venues. Inside the pavilion are b,¥o drill
ground classrooms, shower/locker facilities and storage.
Additional training props on the grounds include a trench rescue
prop, confined space prop, tanker full spill prop, car fire prop,
railroad tanker simulation area, and a car extrication area.
The New Automotive Maintenance Facility
- 41,182 Squa,'e Feet
The proposed Automotive Maintenance Facility will contain
service and repair bays to accommodate large apparatus or
allow double staging of two smaller, light-duty vehicles on
8
opposite ends of the same bay. Adequate space has been
planned to allow for a safe and efficient operation. In addition
to standard automotive functions, the facility will be used for
installation of communications and other specialized
equipment.
Atire shop and space for outfitting apparatus with equipment
will also be incorporated into the workspace. Additional
features within the Automotive Maintenance Facility include
areas for parts storage and offices; apparatus steam clean
bays; a drafting pit; tire storage and changing area.
The New Materiel Management Center
- 39,734 Scluare Feet
The proposed Materiel Management Center will house
Purchasing, Warehouse, and Property Management functions.
The facility includes adequate and functional loading docks and
is designed with good circulation and workflow in mind.
Shelving and storage areas incorporate earthquake safety
measures and bracing. Specialty shops for repair and outfitting
include metal, welding, wood, signage, and a small engine shop.
Emergency medical supplies and firefighter clothing and
equipment supplies will also be stored in this facility.
The New Public Services and Support Center
- 98,120 Square Feet
The Public Services and Support Center is intended to be the
central office building for training, public service activities
and administrative functions. This facility is designed around
public need with easy access to those offices that have the
highest level of public interaction. Areas specifically designed
to accommodate public services in this facility include Fire
Prevention, Community Relations and Education, Human
Resources, Clerk of the Authority, Finance, a Boardroom/
Lecture Hall, and several classrooms. A functional courtyard
adjacent to a small cafeteria is being designed to allow
employees access to an outdoor break area and can also
accommodate group meetings and events.
Project Budget and Scheclule
Project Budget
The project budget was established at $50.4 as determined
during the 1997 needs assessment and was recently
confirmed as being realistic and on-targel during the
schematic design phase. The following breakdown illustrates
the most recent design development cost estimates for the
project by category:
Construction
Construction Contingency
Furniture, Fixtures & Equipment
Program Mg.m_t & Design
Total
$35.5 million
$ 1.6 million
$ 5.0 million
$ 7.8 millj, o..n
S49.9 million
Prqject Schedule
Award of the construction contract is scheduled by the end
of September 2001 with ground breaking to occur in October.
Construction will begin in November with an 18-month
duration planned. Due to the complexities associated with
the design and commissioning of major emergency systems
and complex components, transition and move-in is planned
over 12-month time period. Final occupancies will be
completed by August 2004 Below is a brief outline schedule
of major events from start to completion.
Key Project Elements
The OCFA Board of Directors appointed the Executive
Committee to provide key oversight for this project. A Design
Review Ad Hoc Committee provided input and direction for
the more frequent and detailed site design review issues.
During the programming and schematic stages of the design
process, 0CFA job knowledge experts provided continuous
input to the design professionals and their specialty
consultants.
Financing Process
During the design process, cost estimates were continually
refined and updated by an independent firm that compiled
tile project's official construction cost estimate. This
information will provide The basis of the financing plan which
to developed and submitted to the Board of Directors for
review and approval. The financing plan will then go to the
sponsoring City of !rvine, for their approval. Once approved
by !rvine, it will go to the other member cities and the County
to obtain the 2/3 required majority vote.
Community Outreach
An important aspect of this project is the Community Outreach
Program. An aggressive community outreach program was
developed with nearby residential homeowner groups. 13ocr-
to-door contact and publicized evening town hall meetings
allowed a high degree of interaction and input by the
community for key design issues. Various tools (i.e. video,
newsletters, pamphlets, public web site etc...) are used to
keep the various audiences in[armed.
,J::A ."q:pr:}val of Design C.',)r'cep,.'sJan Mar, 2~:il
',:i...,' Ap~;re,.al Process ¢i' Besi,3n Cor~sep:s Feb.-A~r. 220~
Crh'lS~'Plg"-i2rl Do,';lJr'l.~'q~ May-Sap, 2'331
Bid,,7,.w;:rd Ge:e,a! Co-t'acTor Aa,3-Nov, 2021
'.';o",$r~dcL,oa P~riod :'JOy ?C01-2.".,~ (.',tr., 232"3
:~7'ld,".q Con',misaiorfi:'.,~ & ~...lov~-i~ 2qd '3'.[., 2903-3~d Q:r., 20?
9
Financial Strategy
Financing Overview
To finance the RFOTC, the OCFA has analyzed affordability
and considered various methods with which to obtain the
estimated $50.4 million needed to complete the project over
the next four years. Due to the fact that the current JPA
agreements reflect a 10-year commitment by member
jurisdictions, this project will likely be financed within the
contract time horizon (approximately nine years after the
commencement of financing). 0CFA has considered additional
options for financing on a longer term basis over 20-30 years;
however, it appears that the most feasible option is to match
the financing term to the 10-year JPA agreements in order to
successfully market the financing plan to the investmen~
community.
Analysis of Affordability
Cash flows and affordability analysis were compiled arid
evaluated to include all projected revenue sources, operating
expenditures, and capital expenditures. OCFA's primary
revenue source is property taxes, representing about 67% of
operating revenue. Considering the importance of accurate
data regarding property tax growth, OCFA retained a
consultant to project property tax revenue over the next
decade. The result of the analysis indicated that OCFA can
afford to support the debt, and still retain a reasonable level
of reserve balances. Based on this analysis, OCFA is in a strong
position with respect to this project's af[ordability.
Combined with the value of the 16.5 acres of land worth
S17 million, the OCFA is in a very favorable position to obtain
Iow-cost financing.
Sources of Financing
OCFA has explored multiple sources from which to obtain
funds required to support the needs of the RFOTC.
Revenue bonds and Certificates of Participation are two viable
financing structures available to the OCFA. Revenue bonds
involve the pledging of future operating revenues to pay the
annual debt payments. Certificates of Participation require
the establishment of a non-profit public benefit authority for
the purpose of serving as lessor in the financing. Both of these
methods offer the lowest interest rate available in the
marketplace.
Financial Plan Accomplishlnents
In November 2000. OCFA established a Financial Technical
Advisory Committee (FTAC) to provide an independent third
party review to the Board of any financing plan associated
with the RFOTC and to assist in selecting finance
professionals for the debt financing. 'i'he FTAC and 0CFA
staff have me: on several occasions to discuss various issues
relating to the RFOTC financing. Accomplishments to date
include:
· Developed Request for Proposals for selecting finance
professionals.
· Completed formal bid processes, interviews, and selection
of financial advisors, bond/disclosure counsel, and
underwriter.
· Compiled and reviewed assumptions for the first draft 10-
year financial forecast.
· Developed a detailed timeline for the financing.
· Determined the recommended method of sale for the debt
issuance and selection el underwriter.
· Identified the recommended interest rate alternative, the
recommended ~type of debt. and the recommended term of
repayment.
· Completed a first draft financing plan for review by the
FTAC.
Timeline for RFOTC Financing/Member Agency
Approval
7he amended Joint Powers Agreement, under which OCFA
operates, requires that any long-term bonded indebtedness
incurred by 0CFA must be approved by two-thirds of its
member agencies. In order to obtain the required approval,
we plan to make presentations before the governing boards
el each member agency in June and July, 2001. We expect
to request final approval of the financing plan from the OCFA
Board of Directors by September, 2001 and to issue the bonds
immediate!y thereafter.
'0
Conclusion
The t~egional Fire Operations and Training Center will help
"safeguard the future" for all those we serve.
The Regional Fire Operations and Training Center wil! enable
the Orange County Fire Authority to pursue its mission to
provide the highest level of emergency services. 0CFA's
reputation brings honor as a dynamic, innovative, and
progressive department.
As one oi' the largest regional fire service organizations in
the state of California, firefighters do not have readily
available access to adequate fire training facilities to meet
ongoing trainin~o requirements. The existing headquarters
facilities, including a 911 Emergency Communications Center,
is undersized and does not allow for expansion to keep pace
with changes in technology or permit any appreciable growth
to meet service area demands. Despite enhancements and
numerous repairs to existing facilities, operating from old and
unreliable facilities poses significant risks. The physical
separation of support departments spread out over multiple
locations, most within leased space, does not encourage or
support effective management and communication goals or
practices.
With the added value of a $17 million parcel of prime land
and the S3 million provided through State funding, the
opportunity for success will never be better. The opportunity
to meet these support facility needs could not be better.
Orange County property values are at an all time high and
not likely to decline. Based on conservative revenue
projections from 0CFA Finance staff, the project is affordable,
if financed, over the remaining member contract period.
Financial options under consideration by the Financial
Technical Advisory Committee include some combination of
reserves and secured bond financing. Current plans are to
present a 1'inancing plan to the Board of Directors for approval.
This approach will have any debt paid off within the currant
member contract period. Beginning the next term of tho
contract, the OCf'A will own the property free and clear, and
will be able to avoid uncontrolled escalating lease costs in
the future.
12
Appe.dix
Overview of the OCFA
The Orange County Fire Authority is a Joint Powers Authority
(JPA) formed on March 1, 1995. It serves 1.2 million residents
over 562 square miles. In addition to protecting its 22 member
cities, the OCFA a!so protects the County's unincorporated
areas which includes providing fire protection services to the
State for over 175,000 acres of wildland. OCFA is one of the
l~rgest regional fire service organizations in California.
The JPA is a legal entity created with direct representation
by all jurisdictions tha~. it serves. The OCFA consists of 22
member cities along with two representatives from the County
of Orange. Twenty-four members serve on the Board.
Prior to the formation of the JPA, the organization was known
as the Orange Count, Fire Department, or OCFD, and was
~]overned by Ihe Orange Coanty Board of Supervisors. By
terming the JPA, members were ab!a to active]y participate
in a decision-making process with respect to how services
were delivered.
How is the OCFA Organized7
The OCFA is managed by an Executive Management Team
that consists of an appointed Fire Chief, a Deputy Fire Chief,
and four Assistant Chiefs that head up the four departments
responsible 'rot the services provided by the OCFA:
· Operations Department
· Fire Prevention Department
· Business Services Departmenl
· Support Services Department
Biennial Budget
The Fire Chief presents a biennial budget to the Board of
Directors for approval. This document identifies anticipaled
revenue and authorized appropriations. This document is
reviewed and updated annually. Revenues to fund the
operations of the OCFA come from a variety of sources. The
majority of revenues (67%) are obtained via property taxes.
The next largest (23%) contribution comes from Cash
Contracts - of the 22 member cities, seven are on cash
contracts.
Other sources of revenue totaling the remaining 10% include
Federal and State reimbursement, interest on reserves, fire
prevention fees, and some other miscellaneous sources.
13
'0
City Member Since
Al:so V:ejo 20S1
BuePa Park 1
Cyp-ass i980
Da'~a ?oTp: 1
irvine 1980
LB Paima i 980
Legura Nigue' 1989
Lagura Woods 2COG
LaGunB Eihs 199i
La~e FCFeS: ~ 99!
Los AJa~i~os i
Missicr, Via]o ~ 986
Pl~oentia 1BBC
~archo Saq~a M~rD~rita 20.30
San C'emente ~994
Saq Juan Capistra-o
Seal Beach i~B2
S~ntoq : B87
Tustin i
Villa ?ark 1BBC
Westminster 1995
Yorba Linda 1980
14
OCFA Fire Stations
Proudly Serving the Communities of...
AL SC' ViE J3, Station 57
~U~NA PAR.~. Station 61
BUENA PARK, Statio~ E.2
:~UENA P'AF.k:, Sta'.!o~. 63
Ct)TO DE CAZA, .<,;~'o:~ 40
CYF;~SS. S;a.'.;on !2
CYP,2SS, ?.ation ~ 7
DANA POI~]', DCFENY, Station 29
DANA F3 NT, NIGU£L, St;.~:ior' .30
EM:_~ALO 'JAY, STation ~ 1
I~VINE, S:a~.icr; 4
I-~V N~, S:,s:ior. 6
!.~V!NE. Station 28
R ~.r,;::, Sta'.icn 25
!RVINE, Stat;Ch 2~
iqVIN~, S:atica 38
IR. VINE, Stat!or 51
,;C~'l,q WAYNE A:P, PC.~'-, S;a:!o-, 33
LAB--AA i:~ANC'-], S:ation a.a
LA PALMA, Statics 13
IA6L, XA N.6L:F.L. S'.adoa ~,
LAGUNA N!GUE:., S:at;.')n 39
a AG'JNA N'GUEL, Statio- ~'9
I A['!UNA W03PS/I.AGUNA ~- LLS, Stadcp 22
LAKE FOHEST, Statiea 19
LA.~_: FC'aEST, Sta;ie..-. 42
LAKE FG.REST, Sta-.;sn 54
LOS A~.AMITOS, S[atic~ 2
M(;AS FL I'OR0, S:atior. 20
MI3WAY C:7Y, Stat:oa 25
MISSION VIE JO. S'..ation 9
MiSSiON V E J0, Stat'ar 24
M!SSION Vi,r-.gO, S:adon 31
I¥"Cg.;EF,<A, St.~t'o" 16
NEWPOFI7 C~'AST, S~ation 52
ORAX:,~E, S[afioc 1
Pi ACE.N-A, ~:SA.'}:c.riD,
PLAS~NTIA, VALENCIA, Sta:ion
AA\S~.9 SAN'A .VA.:IGAgiTA,
SAN C[.EM"_-NTE. Sta:icn 50
SAN CLEM_:.~_--. St~.:'on ~9
SAN ~LEM--\TE. S:aticn 50
SAN JUAN CAP!ST..AX3, S',~don 7
,q, AN~A ANA. S;atior 27
S~'."LiNE, S~ation B
S£AL 3EACI.t, gOWXTCW~, St?.'oq 44
SSAL Br-A,2N, ,~a..'ion 4.3
SILV~PAgC, S'.a:!o.q 14
S!LVE2AL)O IUSFS), Station: 5
STAN-gN, Stati".n 4'3
SUNSET BEACH, S:atic, n 3
-qABUCO, Sta:ion ~ ~
!'US r,N, Sla',ic~ 2;
TUS" I~, S:afion 37
VILLA PAP.:~, Szafion 23
WF..S" M NSi'_:,:.., S:.a:!21i 64
WES'i'MINSi'.~Fi, S.~atlop 6,5
W:STMiNSTE~, Sta..-ior 66
YORBA ,:N_gA, S~.a:ion ~.0
YOPBA LINg, A, S',at!on ,',,'2
Y,.S.~3A LINDA, Sta:.ion 53