CC 2020-07-14_10b Approval of 3rd Amendment to FCFA JPA
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, ACTING DEPUTY CITY MANAGER
SUBJECT: CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT
EXERCISE OF POWERS AGREEMENT FOR THE FIVE CITIES FIRE
AUTHORITY
DATE: JULY 14, 2020
SUMMARY OF ACTION:
Adopt a Resolution approving the proposed Third Amendment to the Joint Exercise of
Powers Agreement for the Five Cities Fire Authority
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Under the terms proposed in the Third Amendment to the Joint Exercise of Powers
Agreement, costs to the City of Arroyo Grande for fire service will remain the same,
$2,580,955 per fiscal year, through at least June 30, 2022. The proposed Third
Amendment to the Joint Exercise of Powers Agreement would require the Oceano
Community Services District (OCSD) to place a new special tax measure on the ballot for
the primary elections occurring in 2022. If that measure passes, the new funding formula
set forth in the Second Amendment to the Joint Exercise of Powers Agreement will take
effect on July 1, 2022. This new funding formula will result in a slight decrease in costs to
the City based on increases to OCSD’s contribution rate. If the 2022 ballot measure fails,
the City’s costs will remain at their current levels through a one-year wind down period
that will end on June 30, 2023.
RECOMMENDATION:
It is recommended that the City Council adopt the Resolution approving the Third
Amendment to the Joint Exercise of Powers Agreement for the Five Cities Fire Authority.
BACKGROUND:
The Five Cities Fire Authority (FCFA) was formed July 9, 2010, through a Joint Exercise
of Powers Agreement (JPA) entered into by the City of Arroyo Grande (City), the City
Grover Beach, and the Oceano Community Services District (OCSD). The FCFA is a
consolidation of three individual fire departments, operating out of the three existing
member community fire stations. Together, the FCFA provides integrated and efficient
fire and emergency medical services to the three communities, serving approximately
40,000 residents.
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CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
PAGE 2
In 2017, the FCFA Board of Directors adopted a five-year Strategic Plan. The Strategic
Plan outlines the investments that were deemed necessary to replace obsolete capital
equipment, including fire engines and self-contained breathing apparatus, and to provide
the staffing levels needed to ensure appropriate levels of service for the three member
communities.
Due to both the need to reevaluate the existing JPA provisions and the increased
investment in the fire department, the member communities approved an initial
Memorandum of Agreement (MOA) amending the FCFA JPA in May 2018. The intent of
this amendment was to facilitate a negotiation of the existing cost sharing methodology
and to consider changes to specific language in the existing agreement.
Following additional negotiations, the member communities approved a Second
Amendment to the JPA in June 2019 (Second Amendment). The Second Amendment
altered the funding formula used to determine each member community’s share of the
FCFA’s costs. Alterations to the funding formula adjust the weighting of the four funding
criteria, (1) population, (2) calls for service, (3) assessed valuation of property within each
jurisdiction, and (4) fire stations, including weighted consideration of staffing at each
station. Under the final revised formula, assessed valuation will no longer be included as
a criteria and the fire stations criteria will be adjusted to remove considerations of staffing
levels. The Second Amendment provides that this final revised formula will go into effect
if OCSD is successful in passing a special tax measure to raise additional revenue for fire
and emergency service costs.
To account for the time that was necessary for OCSD to seek additional revenue through
a special tax measure, the Second Amendment included a “transitional” funding formula
to be used through at least June 30, 2020. This formula includes some consideration of
staffing levels at each of fire stations as part of the fire station criteria. While all three
communities have a stated goal of consistent station staffing of three personnel daily, the
“transitional” model for Fiscal Year 2019-20 reflects current staffing levels at the three
stations, where the two cities have three personnel and OCSD has two personnel. Table
1, below, identifies the original, transitional, and final funding formulas as agreed upon in
the Second Amendment.
Applying this transitional formula to FCFA’s Fiscal Year 2019-20 budget, the Second
Amendment then identifies specific funding amounts required of each party for Fiscal
Year 2019-20. Each party’s allocation is identified as follows:
A. City of Arroyo Grande $2,580,955
45.01%
B. City of Grover Beach $2,015,115
35.14%
C. Oceano Community Services District $1,138,148
19.85%
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CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
PAGE 3
Table 2, below, illustrates the contribution amounts for each agency under the original,
transitional, and final revised formulas using the FCFA’s Fiscal Year 2019-20 budget as
an example.
The Second Amendment also required the OCSD to place a special tax measure on the
March 2020 ballot to provide the OCSD with additional long-term funding for fire and
emergency medical services. The Second Amendment states that “[s]hould the March
Original
Transitional
(Current ) Final Revised
Population 25%33.3% 33.3%
Calls for Service 25%33.3% 33.3%
Assessed Valuation 25%N/A N/A
Stations 25% 33.3% * 33.3%
*Transitional Station Weighting (Based on Full Time Staffing)
Arroyo Grande 37.5%
Grover Beach 37.5%
Oceano 25.0%
Original
Transitional
(Current) Final Revised
Arroyo Grande $2,728,142 $2,580,955 $2,501,964
Grover Beach $1,943,693 $2,015,115 $1,936,123
Oceano $1,062,383 $1,138,148 $1,296,131
Total $5,734,218 $5,734,218 $5,734,218
Percentage Allocation
Arroyo Grande 47.6%45.0% 43.6%
Grover Beach 33.9%35.1% 33.8%
Oceano 18.5%19.9% 22.6%
TABLE 1 – Funding Formulas per Second Amendment
TABLE 2 – Example Funding Amounts Using FY19‐20 Budget
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CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
PAGE 4
2020 ballot measure fail, the funding obligations set forth … above for the Fiscal Year
2019/ 20 FCFA Budget, shall be the same in Fiscal Year 2020- 21.” (Section 5.B.)
Finally, the Second Amendment identified a future funding formula (should the OCSD
ballot measure succeed), along with a defined “wind-down” process timeline should the
OCSD ballot measure fail or should a member community leave the JPA or the JPA be
dissolved.
ANALYSIS OF ISSUES:
As required under the Second Amendment, OCSD placed a special tax measure on the
March 2020 ballot. Although over 66% of Oceano voters supported the measure, it fell 10
votes short of the 66.67% necessary to enact the special tax and the measure failed. As
proposed, the special tax measure would have raised approximately $422,000 annually
for the OCSD to use for emergency and fire services to the Oceano community. The
measure would have imposed a special tax of $180 per parcel per fiscal year, and this
amount would have been allowed to increase up to 2% annually.
Under the terms of the Second Amendment, the results of the March 2020 ballot measure
mean that, as of June 30, 2021, OCSD will no longer be a member of the FCFA. The
parties have officially entered the “wind-down period” described in the Second
Amendment and are required to undertake certain steps to assess and fairly remove the
OCSD and its assets and liabilities from the FCFA. The Second Amendment further
provides that, following the failure of the March 2020 special tax measure, funding for the
FCFA will remain fixed at the same amount that was planned for Fiscal Year 2019-20.
Each member jurisdiction will contribute the same amounts in Fiscal Year 2020-21 as
they paid in Fiscal Year 2019-20, and the FCFA’s overall budget will not increase as the
wind-down process unfolds through June 30, 2021.
Shortly after the results of the election were announced, the FCFA Managers working
group, consisting of the city and district managers, along with the FCFA Treasurer and
Fire Chief, met later in March to discuss the defined “next steps” in the wind-down
process. The timing of this meeting was in the midst of the response to the COVID-19
pandemic and its related financial impacts to the economy. Following the departure of the
Arroyo Grande City Manager, the Managers working group, including the Acting Deputy
City Manager for Arroyo Grande, then reconvened in May. During that discussion in May,
the managers reached consensus to propose a third amendment to the JPA to provide
OCSD another opportunity to obtain special tax revenue to support its ongoing
contributions to the FCFA. Reasons for this consensus included the following:
Although OCSD’s March 2020 measure failed, the results indicate that over 66%
of Oceano voters desired to remain as part of the FCFA and were willing to pay
more to fund their fire and emergency services.
The OCSD’s March 2020 revenue measure was defeated by a very slim margin of
ten votes.
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CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
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Allowing the three member communities to extend their current contribution
amounts for an additional two years will provide certainty and stability for the
agencies when planning for fire service costs in light of the economic challenges
associated with COVID-19.
The OCSD is able to continue funding its share of the FCFA’s costs under the
current “transitional” formula in effect under the Second Amendment.
The FCFA Managers working group then prepared a proposed Third Amendment to the
JPA, which was reviewed and approved as to form by each agency’s counsel.
The terms of the proposed Third Amendment include the following:
The three communities will continue to contribute the same funding at the same
funding levels identified in the Second Amendment to the JPA. This funding is
calculated using the “transitional” funding formula included in the Second
Amendment and applying that formula to the FCFA’s Fiscal Year 2019-20 budget.
The end result is that the City’s funding obligations will remain static, at $2,580,955
per fiscal year, through at least June 30, 2022.
OCSD will undertake the legally required procedures to place a special tax on the
2022 primary ballot.
Should the 2022 ballot measure pass, the same modified funding formula identified
in the Second Amendment will be implemented beginning July 1, 2022. This
formula is identified in Tables 1 and 2 above as the “Final Revised” formula. Should
the 2022 ballot measure fail, the same “transitional” funding formula and fixed cost
allocation will apply through June 30, 2023, continuing the City’s fixed contribution
of $2,580,955 per fiscal year through this time.
Should the ballot measure fail, a wind-down period (and related work program) will
result in the OCSD no longer being part of the JPA effective June 30, 2023.
Work program elements of the wind-down process include:
o A determination as to the distribution of equipment and physical assets by
October 1, 2022 (effective June 30, 2023).
o An estimate as to the distribution of debt, employment liability,
pension/PERS and other post-employment obligations by February 1, 2023
(effective June 30, 2023). The FCFA Board has allocated $25,000 out of
the FCFA’s Fiscal Year 2020-21 budget to perform the actuarial analysis
required as part of this work element.
o An estimate as to the distribution of all other assets by March 1, 2023
(effective June 30, 2023).
Because the contribution amounts of each member agency are fixed through
Fiscal Years 2020-21 or 2021-22, the FCFA’s budget will be effectively flat during
this time. The Third Amendment, therefore, proposes language that would
acknowledge that use of Fund Balance may be necessary to offset unanticipated
or increased costs and that, in the event of significant emergency costs or
purchases during these fiscal years, the Parties will consider contributing
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CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
PAGE 6
additional funding, subject to FCFA Board budgetary approval. The Third
Amendment further acknowledges that any such additional contributions may
require the approval of the parties’ governing bodies.
In order for the Third Amendment to go into effect, it must be unanimously approved by
all three member agencies to the FCFA. The FCFA Board reviewed the proposed Third
Amendment at its meeting on June 19, 2020. The City of Grover Beach then approved
the Third Amendment at its regular City Council meeting held on June 22, 2020, and the
OCSD Board of Directors approved the Third Amendment at its meeting on June 24,
2020.
Next Steps - Review of Additional Options for Fire Service
If the Third Amendment is approved by all three member communities, the wind-down
period will be halted, allowing the Fire Chief and the Managers working group to further
evaluate a variety of options for the future delivery of fire and emergency services.
Continuation of the current three-party JPA will be just one of a number of options that
will be explored in detail. Ultimately, each jurisdiction will determine the model that works
best for their community considering operational efficiencies, costs, and effective delivery
of services.
The Fire Chief will be working with the FCFA Treasurer (Arroyo Grande’s Administrative
Services Director) and Grover Beach’s Administrative Services Director during this
upcoming Fiscal Year 2020-21 to analyze the estimated costs, and the associated
operational impacts, of the options outlined below. The analysis will include consideration
of any upgrades, equipment, and staffing needs to ensure effective operations into the
future. The findings of these analyses will be reviewed with the Managers working group
and the FCFA Board. City staff will also bring the full analysis to the City Council for
discussion at a future Council meeting.
Five Cities Fire Authority
Potential Options for Service Delivery
Current JPA Structure (3 Communities)
Amended JPA Structure (3 Communities)
New JPA (i.e. 2 Communities)
New JPA with “Contract Customer”
Individual Fire Departments
Contract with County / CAL FIRE
Creation of Fire District (Long Term)
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CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
PAGE 7
Fiscal Impact
Approval of the Third Amendment will ensure that the City’s costs for fire and emergency
services will remain fixed at $2,580,955 per fiscal year, through at least June 30, 2022.
The Third Amendment requires the OCSD to place a new special tax measure on the
primary ballot in 2022. If that measure passes, the new funding formula set forth in the
Second Amendment would take effect on July 1, 2022. This new funding formula will
result in a slight decrease in costs to the City based on increases to OCSD’s contribution
rate. If the 2022 ballot measure fails, the City’s costs will remain at their current levels
through a one-year wind down period that will end on June 30, 2023.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution approving the Third Amendment to the Joint Exercise of
Powers Agreement;
2. Modify and approve the Third Amendment to the Joint Exercise of Powers
Agreement, which would need to then be approved by the City of Grover Beach
and OCSD before it would become effective; or
3. Do not approve the Third Amendment to the Joint Exercise of Powers Agreement,
in which case the wind-down process outlined in the Second Amendment will
proceed and the OCSD will be removed as a party to the FCFA by June 30, 2021;
or
4. Provide direction to staff.
ADVANTAGES:
Approval of the Third Amendment will ensure the continued provision of fire and
emergency services without increases in costs to the City through at least June 30, 2022.
The Third Amendment will also provide an additional opportunity to the OCSD to raise
revenue through a special tax measure to pay for its share of the FCFA’s costs, taking
into account the indication by over 66% of voters in the OCSD of their desire to stay in
the FCFA and pay more for their fire and emergency services. Approval of the Third
Amendment will also allow City staff, FCFA staff, and the Managers working group to
reallocate resources from the wind-down work program to the analysis of the full range of
options available to all parties for the delivery of fire and emergency services in their
communities. This analysis will be presented to the City Council within Fiscal Year 2020-
21.
DISADVANTAGES:
Approval of the Third Amendment will require the FCFA to retain a flat budget through at
least Fiscal Year 2021-22. As a result, the FCFA may be required to utilize Fund Balance
to pay for unanticipated expenses. If Fund Balance is insufficient the FCFA Board may
request additional contributions from the member communities to cover these costs.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
Item 10.b. - Page 7
CITY COUNCIL
CONSIDER APPROVAL OF THIRD AMENDMENT TO THE JOINT EXERCISE OF
POWERS AGREEMENT FOR THE FIVE CITIES FIRE AUTHORITY
JULY 14, 2020
PAGE 8
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Joint Exercise of Powers Agreement
2. Memorandum of Agreement (First Amendment to the Joint Exercise of Powers
Agreement)
3. Second Amendment to the Joint Exercise of Powers Agreement
Item 10.b. - Page 8
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING THE THIRD AMENDMENT TO
THE JOINT EXERCISE OF POWERS AGREEMENT FOR THE
FIVE CITIES FIRE AUTHORITY
WHEREAS, the City of Arroyo Grande ("City") is a member agency of the Five Cities
Fire Authority (“FCFA”), which was created in 2010 upon approval of a Joint Exercise
of Powers Agreement (“JPA”) by the City, the City of Grover Beach (“Grover Beach”),
and the Oceano Community Services District (“OCSD”); and
WHEREAS, the City, Grover Beach, and the OCSD entered into a Memorandum of
Agreement in May 2018, operating as a First Amendment to the JPA; and
WHEREAS, the City, Grover Beach, and the OCSD executed a Second Amendment
to JPA in June 2019; and
WHEREAS, the City, Grover Beach, and the OCSD now desire to execute a Third
Amendment to the JPA, as reflected in Exhibit A attached hereto and incorporated
herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande that the Third Amendment to the Joint Exercise of Powers Agreement for the
Five Cities Fire Authority, attached hereto as Exhibit A and incorporated herein by
reference, is hereby approved and the Mayor is authorized to execute the same on
behalf of the City.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 14th day of July 2020.
Item 10.b. - Page 9
RESOLUTION NO.
PAGE 2
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
BILL ROBESON, ACTING CITY MANAGER
APPROVED AS TO FORM:
________________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 10.b. - Page 10
THIRD AMENDMENT TO FIVE CITIES FIRE AUTHORITY
JOINT EXERCISE OF POWERS AGREEMENT
This Third Amendment to the Five Cities Fire Authority (“FCFA”) Joint Exercise of
Powers Agreement, dated June 7, 2010 (“JPA”) (“Third Amendment”), is made and entered into
as of July 1, 2020, by and between the cities of Arroyo Grande and Grover Beach, and the
Oceano Community Services District (“Oceano”), which are hereinafter referred to as “Party”
and “Parties.”
WHEREAS, on June 7, 2010, the Parties entered into a JPA pursuant to Section 6500 et seq. of
Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, for the
purpose of allowing the Parties to share a combined fire department in order to provide efficient
and economical fire protection services; and
WHEREAS, in or about May of 2018, the Parties executed a Memorandum of Agreement
Amending the FCFA JPA (“First Amendment”) in order to provide an opportunity for the Parties
to meet and confer for the purpose of considering amendments to the JPA including, but not
limited to, modifications to the funding formula contained in Exhibit B of the JPA (“Funding
Formula”), the provisions regarding member withdrawal, and future staffing levels beyond Fiscal
Year 2018/19; and
WHEREAS, the First Amendment required the Parties to agree upon amendments to the JPA by
April 1, 2019 or the JPA would terminate as of December 31, 2019; and
WHEREAS, in March of 2019, the Parties executed an extension of the First Amendment,
which extended the time for the Parties to mutually agree upon JPA Amendments to October 1,
2019; and
WHEREAS, the Parties executed the Second Amendment to the JPA as of July 1, 2019 which
required Oceano to undertake the legally required procedures to place a special tax on the March
2020 ballot in accordance with Government Code Section 61121; and
WHEREAS, Oceano did undertake the legally required procedures to place a special tax on the
March 2020 ballot which resulted in ballot Measure A-20 falling short of passage by 10 votes
(66.1% compared to the required 66.67%); and
WHEREAS, the possibility of a citizen’s initiative to place a special tax measure on the
November 2020 ballot was prevented by the COVID-19 pandemic and related statewide shelter
at home order; and
WHEREAS, the economic situation of all Parties has drastically changed due to the COVID-19
pandemic and related statewide shelter at home order; and
WHEREAS, the Parties recognize it is in the economic best interests of all Parties to allow
additional time for the community of Oceano to place another special tax measure on the ballot;
and
EXHIBIT A
Item 10.b. - Page 11
WHEREAS, the parties have met in good faith and now desire to amend the JPA.
NOW THEREFORE, in consideration of the mutual covenants and conditions set forth herein,
the Parties agree as follows:
1. Recitals. The above recitals are true and correct and incorporated herein.
2. Fiscal Year 2020/21 and 2021/22. Each Parties’ contributions for funding the Fiscal
Year 2020/21 and 2021/22 FCFA Budget shall be:
A. City of Arroyo Grande $2,580,955
45.01%______________
B. City of Grover Beach $2,015,115
35.14%______________
C. Oceano Community Services District $1,138,148
19.85%______________
D. The Fire Chief will make every effort to maintain a flat budget through the fiscal
years that the funding contributions set forth in this Section 2 apply. The Parties
acknowledge that use of Fund Balance may be necessary to offset unanticipated
or increased costs. In the event of significant emergency costs or purchases
necessary during the fiscal years during which this Section 2 applies, the Parties
will consider contributing additional funding, subject to FCFA Board budgetary
approval. It is acknowledged that any such additional contributions may require
the approval of the governing body of one or more Party.
3. Funding Formula.
A. The Funding Formula contained in Attachment 1 to the Second Amendment to the
JPA is hereby amended and replaced in its entirety as set forth in Attachment 1 to
this Amendment. All references in the JPA to Attachment 1 shall refer to
Attachment 1 of the Third Amendment.
B. The funding contributions specified in Section 2 were determined using a
transitional formula that modified component 3 of the Funding Formula related to
fire stations to reflect current staffing levels. The funding contributions specified
in Section 2 will be used for Fiscal Years 2020/21 and 2021/22 and possibly
Fiscal Year 2022/23 as provided in Section 4B.
C. The Funding Formula will be reviewed by the Jurisdiction every three years in the
month of January, commencing 2024.
4. Ballot Measure.
Item 10.b. - Page 12
A. Oceano agrees to undertake the legally required procedures to place a special tax
on the 2022 primary ballot in accordance with Government Code Section 61121
or Elections Code 9300-9323. Oceano will seek a special tax amount sufficient to
enable Oceano to be able to fund its share of the Funding Formula taking into
account the priorities of the Strategic Plan as determined by the Five Cities Fire
Authority Board of Directors.
B. If the Oceano ballot measure does not pass and Oceano is unable to fund its share
of the Funding Formula, by operation of this Third Amendment and subject to the
Wind Down Period (identified below), Oceano will automatically and without
further action cease to be a member of the JPA on June 30, 2023. The time
between when the County Clerk Recorder concludes that the Oceano ballot
measure has failed and June 30, 2023 will be known as the “Wind Down Period.”
Oceano agrees that should it no longer be a member agency of the FCFA, the
cities of Arroyo Grande and Grover Beach may continue to operate under the
trademark name of Five Cities Fire Authority with no further rights of Oceano to
that name. Should the ballot measure fail, the funding obligations set forth in
Section 2 above for the Fiscal Year 2021/2022 FCFA Budget, shall be the same in
Fiscal Year 2022/2023.
C. If the Oceano ballot measure passes, the Funding Formula set forth in Attachment
1 of the Third Amendment shall apply beginning in Fiscal Year 2022/23.
Item 10.b. - Page 13
5. Wind Down Period.
A. During the Wind Down Period, the Parties shall establish the distribution of assets
currently owned and/or in the possession of the JPA, including but not limited to
major pieces of apparatus and capital equipment.
B. During the Wind Down Period, the Parties will establish the obligations of the
Parties to pay future obligations that were incurred by the FCFA prior to June 30,
2022, including, but not limited to the following:
a. Lease payments on Engine 2 and 3; however, the Parties mutually agree and
understand that as a result of the dissociation and/or withdrawal of Oceano or
any other Party, no Party will be obligated for future payment lease
obligations for any Engine that does not remain in the custody, control, and
possession of that Jurisdiction.
b. Withdrawal and/or dissociation of Oceano or any other Party shall not absolve
such Party of liabilities arising out of the participation in the JPA incurred in
the ordinary course of business. The Parties mutually agree and understand
that as a result of the dissociation and/or withdrawal of Oceano or any other
Party, all Parties will remain obligated to pay future FCFA employment
related obligations incurred prior to June 30, 2023, including but not limited to
pension/PERS, accrued fringe benefits etc.
c. During the Wind Down period, the FCFA will perform an unfunded actuarial
accrued liability analysis to calculate Oceano or any other dissociating and/or
withdrawing Parties’ share of unfunded PERS liability, which will be due to
the remaining JPA Parties or the City of Arroyo Grande should the JPA be
dissolved.
d. During the Wind Down Period, the Parties will meet and confer in good faith
in regard to the distribution of assets and liabilities as follows:
a. A determination as to the distribution of equipment and physical assets
by October 1, 2022 (effective June 30, 2023).
b. An estimate as to the distribution of debt, employment liability,
pension/PERS and other post-employment obligations by February 1,
2023 (effective June 30, 2023).
c. An estimate as to the distribution of all other assets by March 1, 2023
(effective June 30, 2023).
e. The parties mutually agree and understand that any liability related to
unresolved claims or litigation existing prior to June 30, 2023 will remain the
obligation of all Parties whether remaining members of the FCFA or not.
f. Prior to October 1, 2023, the Parties shall complete a post-dissociation
reconciliation of all assets and liabilities incurred prior to June 30, 2023. Any
party owing funds shall pay such funds to the other immediately upon
determination. The parties agree to cooperate in completing this post closing
reconciliation.
Item 10.b. - Page 14
6. Effect of Amendment. All other provisions of the JPA shall remain unchanged and
in full force and affect. To the extent there is inconsistency between this Amendment
and the JPA, the terms of this Amendment shall control, including but not limited to
JPA Sections 6.B, 8.B(3), and 17.
7. Counterparts. This Amendment may be executed in any number of counterparts and
by the Parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and
the same agreement.
8. Severability. If any part of this Amendment is found to be in conflict with applicable
laws, that part will be inoperative, null and void insofar as it is in conflict with any
applicable laws, but the remainder of the Amendment will remain in full force and
effect.
Item 10.b. - Page 15
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed by
their proper officers hereunto duly authorized.
CITY OF ARROYO GRANDE CITY OF GROVER BEACH
________________________ _______________________
Caren Ray Russom, Mayor Jeff Lee, Mayor
ATTEST: ATTEST:
________________________ _______________________
Kelly Wetmore, City Clerk Wendi Sims, City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
________________________ _______________________
Tim Carmel, City Attorney David Hale, City Attorney
OCEANO COMMUNITY SERVICES DISTRICT
________________________
Linda Austin, President
ATTEST:
________________________
By:
APPROVED AS TO FORM:
________________________
Jeff Minnery, District Counsel
Item 10.b. - Page 16
ATTACHMENT 1
FUNDING FORMULA
Should the ballot measure pass, effective July 1, 2022, the Parties shall bear the costs of the Five
Cities Fire Authority according to the following formula, to be calculated every three years when
the budget is prepared. If the ballot measure fails, the funding will be in accordance with Section
4.B of this Third Amendment.
1. 33.33% of costs shall be assessed among the Parties in proportion to the population of
each Jurisdiction as most recently determined by the U.S. Census and any intervening
estimates prepared by the California Department of Finance when the Fire Chief prepares
each annual budget.
2. 33.33% of costs shall be assessed among the Parties in proportion to the number of
annual service calls, calculated on a three-year rolling average in each Jurisdiction as
most recently determined when the Fire Chief prepares each annual budget.
3. 33.33% of costs shall be assessed among the Parties in proportion to the number of fire
stations and personnel located in each Jurisdiction.
Item 10.b. - Page 17
ATTACHMENT 1
Item 10.b. - Page 18
JOINT EXERCISE OF POWERS AGREEMENT
BETWEEN THE CITY OF ARROYO GRANDE,
CITY OF GROVER BEACH
AND THE
OCEANO COMMUNITY SERVICES DISTRICT
CREATING THE
FIVE CITIES FIRE AUTHORITY
Item 10.b. - Page 19
JOINT EXERCISE OF POWERS AGREEMENT
This Agreement, dated June 7 , 2010, is between the City of Arroyo Grande, a
general law city ("Arroyo Grande"), the City of Grover Beach, a general law city ("Grover
Beach"), and the Oceana Community Services District, a California special district
("OCSD"), also collectively and individually referred to as "Jurisdiction(s)".
WITNESSETH
Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of
the Government Code of State of California (the "Act") authorize Arroyo Grande, Grover
Beach and OCSD to create a joint exercise of powers entity (the "Five Cities Fire Authority"
or the "Authority") which has the power to jointly .exercise any powers common to Arroyo
Grande, Grover Beach and OCSD and to exercise the powers granted to it under the Act.
Arroyo Grande, Grover Beach and OCSD are each authorized to create and maintain a fire
department.
In July 2004, Arroyo Grande and Grover Beach entered into an agreement to provide joint
administration of fire services for both jurisdictions. In March 2008 the agreement was
amended to include OCSD.
Arroyo Grande, Grover Beach and OCSD continue to recognize the benefits of combining
their respective fire service providers into one provider.
By this Agreement, Arroyo Grande, Grover Beach and OCSD desire to create and establish
the Authority for the purposes set forth herein and to exercise the powers described herein.
NOW, THEREFORE, Arroyo Grande, Grover Beach and OCSD, for and in consideration of
the mutual promises and agreements herein contained, do agree as follows:
Item 10.b. - Page 20
SECTION 1. DEFINITIONS
Unless the context otherwise requires, the terms defined in Section 1 shall for all purposes
of this Agreement have the meanings herein specified.
Act
The term "Act" means Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1 of the Government Code of the State of California, as they now exist or
may hereafter be amended.
The term "Area" means the combined aggregate jurisdictional service areas of the
Jurisdictions as they now exist and as they may hereafter be modified by annexation of
territory to or exclusion of territory from the boundaries of the Jurisdictions. The combined
aggregate service areas of the Jurisdictions as they now exist are delineated on the map
attached hereto as Exhibit D and hereby made a part of this Agreement.
Arroyo Grande
The term "Arroyo Grande" means the existing municipal corporation known as the City of
Arroyo Grande, a general law city duly organized and existing under and by virtue of the
laws and the constitution of the State of California.
Authority
The term "Authority" means the Five Cities Fire Authority created by this Agreement.
Board
The term "Board" means the governing board of the Authority.
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Item 10.b. - Page 21
Employee of Authority
The term Employee of Authority or Employee, means (i) those individuals employed by
Arroyo Grande, but assigned to the Authority (as of the effective date of this Agreement or
at a future time) under the agreement between Authority and Arroyo Grande referenced in
Exhibit A of this Agreement; and (ii) those individuals employed directly by the Authority
after the effective date of this Agreement.
Grover Beach
The term "Grover Beach" means the existing municipal corporation known as the City of
Grover Beach, a general law city duly organized and existing under and by virtue of the laws
and the constitution of the State of California.
Jurisdiction
The term "Jurisdiction" shall mean a general law City or Community Services District that is
a signatory to this Joint Exercise of Powers Agreement.
OCSD
The term "OCSD" means the existing district known as the Oceana Community Services
District, a California special district duly organized and existing under and by virtue of the
laws and the constitution of the State of California.
SECTION 2. PURPOSE
This Agreement is made pursuant to the Act and for the purpose of allowing the
Jurisdictions to share a combined fire department in order to provide an efficient and
economical fire protection service.
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Item 10.b. - Page 22
SECTION 3. TERM
This Agreement shall become effective as of the date hereof and shall continue in full force
and effect until terminated.
SECTION 4. AUTHORITY
A. Creation of Authority
B.
There is hereby created pursuant to the Act an agency and public entity to be known
as the "Five Cities Fire Authority." As provided in the Act, the Authority shall be a
public entity separate from the Jurisdictions. The debts, liabilities and obligations of
the Authority shall not constitute debts, liabilities or obligations of the Jurisdictions.
Within 30 days after the effective date of this Agreement or any amendment hereto,
the Authority will cause a notice of this Agreement or amendment to be prepared and
filed with the Office of the Secretary of State of the State of California in the manner
set forth in Section 6503.5 of the Act.
Governing Board
The Authority shall be administered by the Board, whose members shall be, at all
times, one Councilmember or an alternate from Arroyo Grande, one Councilmember
or an alternate from Grover Beach, and one Boardmember or an alternate from
OCSD. The Counc~members and Boardmember and alternates shall be appointed
as determined by the respective City Councils and Board of Directors under their
respective Council and Board policies. The alternates must be elected officials of
their respective Jurisdictions.
C. Meeting of Board
(1) Regular Meetings. During the first year of Authority's existence, the Board
shall hold at least bi-monthly meetings. Thereafter, the Board shall hold at
least quarterly meetings and may hold additional meetings as necessary.
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Item 10.b. - Page 23
D.
(2) Legal Notice. All meetings of the Board shall be called, noticed, held and
conducted subject to the provisions of the Ralph M. Brown Act (Chapter 9 of
Part 1 of Division 2 of Title 5 of the Government Code of the State of California
(Sections 54950-54961 )) or any successor legislation hereinafter enacted.
(3) Minutes. The Secretary of the Authority shall cause minutes of all meetings of
the Board to be kept and shall, as soon as possible after each meeting, cause
a copy of the minutes to be forwarded to each member of the Jurisdictions'
governing Board of Directors or Council.
(4) Quorum. All three voting members (or their alternates) of the Board shall
constitute a quorum for the transaction of business, except that less than a
quorum may adjourn meetings from time to time.
(5) Voting. All decisions made by the Board related to the Authority require a
majority vote of the Board, except for decisions relating to the budget, labor
relations agreements, and any unbudgeted non-emergency contract for
services that exceeds $75,000, which decisions shall require a unanimous
vote of the Board for approval.
Board Referral to Jurisdiction Governing Councils and Board of Directors.
(1) In order to refer a matter to the Jurisdictions' governing Councils and Board of
Directors, a majority of Board members must vote to do so; provided,
however, that the Board may reconsider at any time any matter not receiving
majority votes to refer. Referred matters shall be approved by a majority of
the member Jurisdictions.
(2) The Board shall annually consider the following: the budget which shall
consist of the cost allocation plan, service goals, and performance standards.
From time to time the Board shall consider any labor relations agreement.
(3) The Board shall adopt as necessary Employer-Employee Relations
Procedures and Personnel Rules and Regulations applicable to the Authority.
City of Arroyo Grande Personnel Regulations and other policies and
procedures shall apply to the Authority and its employees until replacement
regulations, policies and procedures are adopted by the Authority.
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Item 10.b. - Page 24
(4) For "meet and confer'' purposes, notwithstanding the fact that Authority's
employees are City of Arroyo Grande employees, the Board's members may
consult with their respective Jurisdiction governing Councils and Board of
Directors throughout the meet and confer process. The Board and its
designated staff negotiators shall negotiate with exclusively recognized
employee organizations.
(5) As part of approving an overall compensation plan for its management
employees, the Arroyo Grande City Council, after receiving the decision of the
Board, shall approve that portion of the Authority management compensation
plan that includes the Fire Department management employees. The
Jurisdictions' governing Councils and Board of Directors may meet in closed
sessions for the purpose of providing input to the Board regarding the terms of
Compensation for Authority employees.
(6) Governing Councils and Board of Directors must approve addition of any new
members to the Authority.
E. Officers of the Board
(1) The officers of the Authority shall be the Chair and Vice-Chair and Secretary.
(2) The Fire Chief shall be the Executive Officer of the Authority and shall be
responsible for implementing the decisions of the Board and shall be
responsible for the operations and general management of the Authority. The
Fire Chief will be appointed by the Board and be responsible to the Board.
The Fire Chief will be an at will employee of the Authority and shall:
(a) Direct all subordinate employees;
(b) Be responsible for the appointment and removal of Authority
employees;
(c) Attend all meetings of the Board unless excused there from;
(d) Develop and distribute to the Board, agendas for all Board meetings;
(e) Promulgate and implement administrative regulations;
(f) Perform such other duties and exercise such other powers as may be
delegated by the Authority Board.
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Item 10.b. - Page 25
(g) Have authority to approve expenditures of up to $50,000, without
Board's approval.
(3) The Fire Chief may consult with the managers of the City of Grover Beach, the
City of Arroyo Grande and the Oceano Community Services District The
Managers may meet from time to time, at their own volition or at the request of
the Board, to consult and discuss matters that are of importance to the
administration and operation of the Authority. The Managers may make
recommendations to the Board regarding these matters. .
(4) The Director of Administrative Services of Arroyo Grande is hereby designated
as Treasurer of the Authority. The Treasurer is designatecl as the depositary of
the Authority to have custody of all the money of the Authority, from whatever
source, and, as such, shall have the powers, duties ahd responsibilities
specified in Section 6505.5 of the Act.
(5) The Treasurer of the Authority is designated as the public officer or person
who has charge of, handles, or has access to any property of the Authority,
and such officer shall file an official bond in the amount of $25,000 as required
by Section 6505.1 of the Act; provided, that sµch bond shall not be required if
the Authority does not possess or own property or funds with an aggregate
value of greater than $500.00.
(6) The Fire Chief or his/her designee shall serve as Secretary to the Board.
(7) The City Attorney of Grover Beach is designated primary legal counsel to the
Authority, and by executing this Agreement, all of the Jurisdictions on behalf of
the Authority and City of Grover Beach on its own behalf, acknowledge that
they have been advised of the nature and consequences of a potential conflict
of interest inherent in representation of more than one client and have agreed
to wave such potential conflict. The City Attorney of Grover Beach will also
serve as the General Counsel for the Authority, thus representing two clients
connected by this Agreement. In the event that a situation arises where a
conflict becomes potential or actual, the City Attorney/General Counsel will
advise both clients of such conflict and withdraw from representing either in
connection with the situation giving rise to the conflict.
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Item 10.b. - Page 26
SECTION 5. GENERAL POWERS
The Authority is authorized, in its own name, to do all. acts necessary for the exercise of said
powers for said purposes. Except as otherwise provided herein, such power shall be
exercised subject only to such restrictions upon the manner of exercising such power as are
imposed upon Arroyo Grande in the exercise of similar powers, as provided in Section 6509
of the Act.
The Authority shall have the power in its own name to exercise any and all common powers
of its Members reasonably related to the purposes of the Authority, including, but not limited
to, the powers to:
A. Seek, receive and administer funding from any available public or private source,
including grants or loans under any available federal, state and local programs for
assistance in achieving the purposes of the Authority.
B. Set fees and collect and maintain fee revenue for services provided by the Authority
such services may include but are not inclusive of apartment inspections, firework
permits or weed abatement.
C. Contract for the services of engineers, attorneys, planners, financial and other
necessary consultants.
D. Make and enter into any other contracts, including to provide services outside of its
Jurisdictions' boundaries, if otherwise allowed by law.
E The authority may enter into a supplemental agreement to provide services to a
member agency that is not provided to all Authority members for an agreed upon fee.
Such services may include but are not exclusive of code enforcement, fire protection
services and plan check services.
F. Employ agents, officers and employees.
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Item 10.b. - Page 27
G. Acquire, lease, construct, own, manage, maintain, dispose of or operate (subject to
the limitations herein) any buildings, works or improvements.
H. Acquire, hold, manage, maintain, or dispose of any other property by any lawful
means, including without limitation gift, purchase, eminent domain, lease, lease-
purchase, license or sale.
I. Incur all authorized debts, liabilities, and obligations, including issuance and sale of
bonds, notes, certificates of participation, bonds authorized pursuant to the Marks-
Roos Local Bond Pooling Act of 1985, California Government Code Sections 6584 et
seq. (as it now exists or may hereafter be amended) or any other legal authority
common to the Members and such other evidences of indebtedness, subject to the
limitations herein.
J. Receive gifts, contributions and donations of property, funds, services and other
forms of financial or other assistance from any persons, firms, corporations or
governmental entities.
K. Sue and be sued in its own name.
L. Seek the adoption or defeat of any federal, state or local legislation or regulation
necessary or desirable to accomplish the stated purposes and objectives of the
Authority.
M. Adopt rules, regulations, policies, bylaws and procedures governing the operation of
the Authority.
N. Invest any money in the treasury pursuant to California Government Code Section
6505.5 that is not required for the immediate necessities of the Authority, as the
Authority determines is advisable, in the same manner and upon the same conditions
as local agencies, pursuant to Section 53601 of the California Government Code as it
now exists or may hereafter be amended.
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Item 10.b. - Page 28
0. Carry out and enforce all the provisions of this Agreement.
P. Exercise • all other powers not specifically mentioned herein, but common to
Members, and authorized by California Government Code Section 6508 as it now
exists or may hereafter be amend.
Notwithstanding the foregoing, the Authority shall have any additional powers conferred
under the Act or under applicable law, insofar as such additional powers may be necessary
to accomplish the purposes set forth in Section 2 hereof.
SECTION 6. TERMINATION OF POWERS AND AGREEMENT
A. The Authority shall continue to exercise the powers herein conferred upon until the
termination of the Agreement or until the Jurisdictions have mutually rescinded this
Agreement.
B. All assets of the Authority shall be divided as may be mutually agreed upon by the
parties or according to the basic allocation formula used for budgeting purposes by
the parties to the Agreement who are parties at the time of termination of the
Agreement. If the parties cannot agree upon a distribution, then the distribution
formula shall be determined by an outside third-party neutral , who shall be mutually
chosen. If the parties cannot agree upon such neutral party, then the State Mediation
and Conciliation Services or their designee shall determine the formula for the
distribution of assets.
SECTION 7. FISCAL YEAR
Unless and until changed by resolution of the Board, the fiscal year of the Authority shall be
the period from July 1 of each year to and including the following June 30, except for the
first fiscal year which shall be the period from the date of this Agreement to June 30, 2011.
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SECTION 8. OWNERSHIP OF BUILDINGS. APPARATUS AND EQUIPMENT
A.
B.
Buildings. The Authority itself is not intended to directly own, maintain, or insure any
existing building, structure, or facility that is owned at the time of the activation of the
Joint Powers Authority, maintained, or insured by any individual Jurisdiction. Such
building structures or facilities owned at the time of activation by each individual
Jurisdiction shall remain the full responsibility of each Jurisdiction, unless a
Jurisdiction offers to give the building, structure, or facility to the Authority and the
Authority agrees to accept, own, and take responsibility for the maintenance and
insurance of such building, structure, or facility. Any building constructed or owned by
the Authority after activation shall become the property of the Authority and in the
event of dissolution of the Authority shall be disposed of in the same manner as
equipment owned by the Authority.
Major Pieces of Apparatus and Capital Equipment.
(1) All major pieces of apparatus and capital equipment shall become the property
and responsibility of the Authority, including but not limited to maintenance,
insurance and replacement.
(2) Replacement of major apparatus and capital equipment shall generally be
accomplished as a part of the budget and shall be in keeping with the
allocation formula.
(3) In the event that a Jurisdiction withdraws from the Agreement per Section 17,
all major apparatus and capital equipment shall be returned to that
Withdrawing Jurisdiction owned by the Jurisdiction at the time of activation per
the listing in Exhibit C. However, once the major apparatus and capital
equipment is replaced, such replaced apparatus is the sole and exclusive
property of the Authority and there is no obligation, duty or requirement that
such replaced apparatus or capital equipment be returned to any withdrawing
Jurisdiction. The withdrawing Jurisdiction shall have the right to negotiate with
the remaining Authority members for additional equipment and the remaining
Authority members shall take reasonable steps to ensure the withdrawing
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Item 10.b. - Page 30
member has sufficient apparatus and capital equipment to establish an
independent fire service.
C. Clothing. Tools and Equipment. All clothing (personal protective equipment). tools.
machines. parts, supplies, communication devices, computers, office equipment,
supplies and furnishings; and each and every item of fire equipment not listed in
Exhibit C shall become the sole and exclusive property of the Authority.
SECTION 9. COSTS AND ADMINISTRATION
A. Operation and Capital Improvement Costs
Operation and capital improvements costs shall be allocated among the jurisdictions
in accordance with the cost-sharing formula in Exhibit B adopted by the Board and
the respective Jurisdiction's governing Councils and Board of Directors.
B. Administrative Services
Administrative services shall be provided by, and allocated between, Arroyo Grande,
Grover Beach and OCSD as shown on Exhibit A to this Agreement, attached and
incorporated by reference.
C. Invoicing and Payments
Member agencies will be billed quarterly by the City of Arroyo Grande in accordance
with the provisions of Exhibit A and B. Member agencies will be expected to pay the
invoices also on quarterly basis.
SECTION 10. AGREEMENT NOT EXCLUSIVE
This Agreement shall not be exclusive and shall not be deemed to amend or alter the terms
of other agreements among the Jurisdictions, except as the terms of this Agreement shall
conflict therewith, in which case the terms of this Agreement shall prevail. The cooperative
agreement existing between the Jurisdictions prior to the effective date of this Agreement
shall terminate with the effective date of this Agreement.
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SECTION 11. ACCOUNTS AND REPORTS
The Authority shall establish and maintain such funds and accounts as may be required by
good accounting practice. The books and records of the Authority shall be open to
inspection at all reasonable times by the Jurisdictions and their representatives.
SECTION 12. CONFLICT OF INTEREST CODE
The Authority, to the extent required by law, hereby adopts as its Conflict of Interest Code
the Fair Political Practices Commission Model Conflict of Interest Code with appropriate
substitution regarding references to the governing body and the officers.
SECTION 13. BREACH
If default shall be made by a Jurisdiction or Authority in any covenant contained in this
Agreement, such default shall not excuse either of the other the Jurisdictions from fulfilling
their respective obligations under this Agreement and each Jurisdiction shall continue to be
liable for the payment of contributions and performance of all conditions herein contained.
Each Jurisdiction hereby declares that this Agreement is entered into for the benefit of the
Authority created hereby and each Jurisdiction hereby grants to the Authority the right to
enforce by whatever lawful means the Authority deems appropriate all of the obligations of
each of the parties hereunder. Each and all of the remedies given to the Authority
hereunder or by any law now or hereafter enacted are cumulative and the exercise of one
right or remedy shall not impair the right of the Authority to any or all other remedies.
SECTION 14. SEVERABILITY
Should any part, term, or provision of this Agreement be decided by the courts to be illegal
or in conflict with any law of the State of California, or otherwise be rendered unenforceable
or ineffectual, the validity of the remaining part, terms or provisions hereof shall not be
affected thereby.
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SECTION 15. SUCCESSORS: ASSIGNMENT
This Agreement shall be binding upon and shall insure to the benefit of the successors of
the parties. Except to the extent expressly provided herein, no Jurisdiction may assign any
right or obligation hereunder without the consent of the other Jurisdictions. The Authority
may not assign its rights or obligations without the consent of the Jurisdictions.
SECTION 16. AMENDMENT OF AGREEMENT
This Agreement may be amended, and the Authority may be terminated or its powers may
be changed, restricted or eliminated by supplemental Agreement executed by the
Jurisdictions at any time.
SECTION 17. WITHDRAWAL FROM AGREEMENT
A. Any Jurisdiction may withdraw from the Agreement by giving twelve (12) months
notice of intent to do so. The withdrawing Jurisdiction shall continue to be responsible
and accountable for any and all obligations per this Agreement incurred prior to the
withdrawal date. Such withdrawing Jurisdiction shall no longer be a party to the
Agreement as of withdrawal date, and have no future obligations or liabilities, nor any
future or further rights under the Agreement. The withdrawal date shall be defined as
that day which is twelve (12) months to the day from the date of the notice to
withdraw, or later date designated by the withdrawing Jurisdiction
B. Any apparatus listed in Exhibit C previously belonging to the withdrawing Jurisdiction
will be returned on the withdrawal date, if and only if, such apparatus has not been
replaced per Section BB. The Authority has no obligation, duty, or requirement to
return any apparatus in any pre-determined condition of operation. All returned
apparatus to any withdrawing Jurisdiction will be in "as-is" condition.
C. Except as set forth in Section 8B(1,2,3) and 17B above, the withdrawing Jurisdiction
forfeits and waives any and all rights and claims to any share of any and all assets,
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Item 10.b. - Page 33
regardless of the ultimate disposition or status or existence of the Authority at any
given time or place.
SECTION 18. FORM OF APPROVALS
Whenever an approval by the Jurisdictions is required in this Agreement, unless the context
specifies otherwise, it shall be given, in the case of Arroyo Grande, by resolution duly
adopted by the City Council of Arroyo Grande, in the case of Grover Beach, by resolution
duly adopted by the City Council of Grover Beach, and in the case of OCSD, by resolution
duly adopted by the Board of Directors of OCSD. Whenever such approval is required in the
case of the Authority, it shall be given by resolution duly adopted by the Board.
SECTION 19. NOTICES
Notices to Arroyo Grande and Grover Beach shall be sufficient if delivered to the City Clerk
of each City, and Notices to OCSD shall be sufficient if delivered to the Board Secretary of
the District.
SECTION 20. INDEMNIFICATION
The Authority shall acquire such insurance protection as is necessary to protect the interest
of the Authority and its member Jurisdictions. The Authority shall assume the defense of
and indemnify and hold harmless the Jurisdictions and their governing bodies, officers,
agents, and employees from all claims, losses, damages, costs, injury, and liability of every
kind, nature, and description directly or indirectly arising from the performance of any of the
activities of the Authority or the activities under taken pursuant to this Agreement.
SECTION 21. SECTION HEADINGS
All section headings contained herein are for convenience of reference only and are not
intended to define or limit the scope of any provision of this Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
· and attested by their proper officers hereunto duly authorized, and their official seals to be
hereto affixed, as of the day and year first above written.
CITY OF ARROYO GRANDE CITY OF GROVER BEACH
B
Attest: Attest:
Donal. McMaf!-Ori;. _Gtty _ C!_,erk
_.,. . . . -
Approved As To Form:
Attorney
OCEANO COMMUNITY SERVICES DISTRICT
Attest:
Approved As To Form:
A~~alCo"asel
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EXHIBIT A
ADMINISTRATIVE SERVICES
Administrative services shall be provided to the Authority by the Jurisdictions as follows:
1.
2.
Personnel. All personnel working for the Authority will be employed by the City of
Arroyo Grande. Personnel benefits payroll and workers compensation matters shall
be administered by Arroyo Grande subject to a written agreement between the
Authority and the City of Arroyo Grande. The City of Arroyo Grande shall assign all
fire service employees on a full time basis to carry out the functions of this
Agreement. Furthermore under such written agreement, the City of Arroyo Grande
will assign all of its responsibilities of the appointment, promotion, management,
training, supervision, evaluation, discipline, and termination of employees as well as
labor negotiations with represented employees to the Authority under the Authority's
chain of command and decision making process.
Legal Services
a. For purposes of attorney-client privilege, the Authority shall have an attorney-
client relationship with the City Attorney's office of both Arroyo Grande and
Grover Beach and with the District Legal Counsel's office of OCSD, but the
Grover Beach City Attorney's office shall be designated as the General
Counsel for the Authority and handle legal issues for the Authority, including
those related to personnel matters (including the decision to hire outside
counsel).
b. For purposes of work distribution, the Arroyo Grande City Attorney's office
shall handle legal issues related to Arroyo Grande ordinances, the Grover
Beach City Attorney's office shall handle legal issues related to Grover Beach
ordinances, and the OCSD Legal Counsel shall handle legal issues related to
OCSD ordinances.
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3. Finance. The City of Arroyo Grande shall provide financial services. Financial
services shall include the provision of payroll and accounts payable and accounts
receivable services as well any financial reporting and auditing services that may be
required.
4. Indirect Contribution Payment for the services as described in Exhibit A shall be the
responsibility of the Jurisdiction providing the services as referenced in Exhibit A. The
payment for such services by said agencies shall be recognized as an indirect
contribution made by the respective agency. All indirect contributions shall be
recognized in the Authority's budget as a contribution from the respective agency and
shall be deducted from the contributing agency's proportional allocation of costs for
the operation of the Authority.
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EXHIBIT B
FUNDING FORMULA
Prior to the funding effective date, the Jurisdictions shall bear the costs of the Five Cities
Fire Authority. From and after the funding effective date, each Jurisdiction-shall pay for the
ongoing costs of the Five Cities Fire Authority according to the following formula, to be
calculated annually when the budget is prepared.
1. Twenty-five percent (25%) of costs shall be assessed among the.Jurisdictions in
proportion to the population in each Jurisdiction as most recently determined by the
U.S. Census and any intervening estimates prepared by the California Department of
Finance when the Fire Chief prepares each annual budget;
2. Twenty-five percent (25%) of costs shall be assessed among the Jurisdictions in
proportion to the assessed value of property in each Jurisdiction as most recently
determined by the County Assessor when the Fire Chief prepares each annual
budget;
3. Twenty-five percent (25%) of costs shall be fixed and shall be based on the following
formula:
Stations Percentage Staffing Percentage Total
Arroyo Grande 1 33% 6 40% 37%
Grover Beach 1 33% 6 40% 37%
OCSD 1 33% 3 20% 27%
The fixed base is assessed according to each Jurisdiction's proportional share of the
Authority's full membership total of Full Time Equivalent Personnel and fire stations
existing as of the effective date of the Joint Powers Agreement as noted above.
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4. Twenty-five percent (25%) of costs shall be assessed among the Jurisdictions in
proportion to the number of annual service calls in each Jurisdiction as most recently
determined when the Fire Chief prepares each annual budget.
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EXHIBITC
INVENTORY OF APPARATUS, CLOTHING, TOOLS AND EQUIPMENT
The following inventory of each jurisdiction will become the property and responsibility of the
Authority, including but not limited to maintenance, insurance and replacement:
APPARATUS
Arroyo Grande
Truck 66 1987 Van Pelt
BSU66 1995 E-ONE
Utilitv 66 1995 Ford 4x4 Pickuo
Brush 66 1996 International
Ford SUV 1998 Explorer
Ford SUV Command Vehicle 2006 Expedition
Enaine 66 2007 Pierce
Liahtina 66 1978 Ford Truck
Sedan 2000 Ford Taurus LX
Mass Casualty Trailer Inventory List Available
Grover Beach
Enaine68R 1996 Hi Tech
Rescue 68 2001 Hacknev
EnQine 68 2004 American LaFrance
Ford SUV 1999 Exolorer
Utilitv 68 1996 Ford 4x4 Pickuo
ShorinQ 68 1994 Pace CarQo Trailer
Oceano
EnQine 261 1987 Pierce
Enaine 61 1996 Hi-Tech
Brush 61 2000 International 4800
Chevv SUV 2001 Tahoe
Patrol 61 2002 Ford F-550
AUDIO / VISUAL EQUIPMENT
Arroyo Grande
Overhead Proiector 1
PowerPoint Projector 1
Televisions 12
Televisions (Bia Screen) 1
Stereo Svstem 1
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Grover Beach
Overhead Proiector 1
PowerPoint Proiector 1
Televisions 6
Televisions (Bia Screen) 1
Stereo System 1
Oceana
Overhead Proiector 1
PowerPoint Proiector 0
Televisions 1
Televisions /Bia Screen) 0
Stereo Svstem 0
BAUER BREATHING AIR COMPRESSOR
Arrovo Grande
Stationary Unit 1
Mobile Unit 1
Grover Beach
Stationary Unit 1
Oceano
Stationarv Unit 1
EMERGENCY MEDICAL SUPPLIES (EMS)
Arroyo Grande ' .
Automatic Defibrillators 4
EMS Baa 4
Trauma Baa 6
Slinas 6
Grover Beach
Automatic Defibrillator 4
EMS Baa 4
Suooort Baa 5
KED 3
Hare Traction Solint 2
Backboards 5
Sunnlv Cabinet 1
Oceano
Heart Start Defibrillator 1
Zoll Defibrillator 2
EMS Baa 4
Trauma Baa 4
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EMERGENCY OPERATIONS CENTER lEOCl SUPPLIES
Arrovo Grande
Laptop 5
Printer (Laser) 5
Printer /Color Laser) 1
Radios 21
Wireless Connector 1
Phone 10
Red Phone 1
Fax Machine 1
Plastic Tubs and Supplies 6
EQUIPMENT
Arrovo Grande
Generator /Mobile) 6
Generator /Stationary) 1
Smooth Nozzle 7
Combo Nozzle 33
Wildland Nozzle 27
Adacters 115
Wildland T's 32
Smooth Bore Tics 10
Halioan 5
McLeod 8
Pulaski 8
Siamese 4
Gated Wve 34
Trimese 11
Colorado Belts 2
Chain Saws 7
Rotorv Saws 4 .
Gas Detectors 2
Thermal lmaaina Camera 2
Bolt Cutters 2
Salvaoe Covers 2
Hall Runners 1
Carrv All 1
Tool Box 3
Wildland Hose Packs 15 ·
Back Pack Pumas 2
Infrared Thermometers 2
Pike Pole 22
Gatorback Pike Pole (5') 3
23
Item 10.b. - Page 42
Rubbish Hook 3
Flashliqhts 20
Radios /Portable) 69
Radios /Mobile) 11
Radios (Base Station) 6
Paqers 49
Reoeaters 2
Floto Pumo 1
Positive Pressure Fans 3
Exhaust Fans 2
RIC Baqs 0
Nozzles 40
Axes 21
Sledae Hammers 5
Shovels 16
Grover Beach
Generator (Mobile) 4
Generator (Stationary) 1
Smooth Nozzle 3
Combo Nozzle 19
Wildland Nozzle 3
Adaoters 56
Wildland T's 8
Smooth Bore Tics 4
Sledqe Hammer #10 5
Sledae Hammer #4 17
Haliaan 4
McLeod 5
Pulaski 3
Flat Head Axe 4
Shovels /Half Soade/Round) 6
Siamese 3
Gated Wve 6
Manifold 1
Colorado Belts 10
Chain Saw 3
Circular Saw 2
Gas Fan 2
RIC Baqs 2
Bolt Cutters 4
Salvaae Covers 6
Hall Runners 5
Carrv All 5
24
Item 10.b. - Page 43
Tool Box 3
Wildland Hose Packs 6
Back Pack Pumps 2
Infrared Thermometers 3
Thermal lmaQina Camera 1
Gas Detector 2
Pike Pole 10') 1
Pike Pole 8') 1
Gatorback Pike Pole 110') 1
Gatorback Pike Pole 15') 1
Rubbish Hook 2
Flashliahts 18
Boxliahts 6
Oceano
Generator Mobile) 2
Generator Stationarv) 3
McLeod 5
Pulaski 5
Shovels 7
Rhino 1
Pike Poles 4
Gatorback 2
Rubbish Hook 7
Flathead Axe 5
Pickhead Axe 5
A Tool 2
KTool 2
Smooth Nozzle 2
Combo Nozzle 19
Wildland Nozzle 30
Adapters 65
Wildland T's 34
Smooth Bore Tios . 10
Haliaan 4
FIRE HOSE
Arroyo Grande
1" 5,200feet
1.5" 6,400 feet sinQle jacket
1.5" 1,400 feet double iacket
1.75" 4,025feet
2.5" 4,750feet
4" 3,280 feet
25
Item 10.b. - Page 44
Grover Beach
1" 1,400 feet
1.5" 1,800 feet
1.75" 1,350 feet
2.5" 2,600 feet
4" 2,115 feet
Oceano
1" 3,400 feet
1.5" 7,650 feet
1.75" 100 feet
2.5" 3,800 feet
4" 2,700 feet
IT EQUIPMENT
Arroyo Grande
Computers 8
Laptops 4
Printers 4
Grover Beach
Computers 5
Laotoos 1
Printers 5
Oceano
Computers 2
Printers 2
KITCHEN APPLIANCES
Arrovo Grande
Stove I Oven (Industrial) 1
Refriqerator 2
Dishwasher 1
Microwave 1
Coffee Machine 1
Coffee Maker 1
Toaster Oven 1
Grover Beach
Stove I Oven 1
Refriqerator 1
Dishwasher 1
Microwave 1
Coffee Maker 1
26
Item 10.b. - Page 45
Toaster Oven 1
Blender 1
Toaster 1
Crock Pot 1
Foreman Grill 1
Oceano
Stove I Oven 1
Refrigerator 1
Dishwasher 1
Microwave 1
Coffee Maker 1
Toaster Oven 1
Toaster 1
LADDERS
Arrovo Grande
10' Attic 1
12' Attic 1
14' Roof 1
16' Roof 1
18' Roof 2
14' Extension 2
24' Extension 1
28' Extension 2
35' Extension 1
40' Extension 1
Grover Beach
8' Attic 2
10' Attic 4
14' Combination 1
14' Roof 2
24' Extension 1
35' Extension 2
Oceano
10' Attic 2
14' Roof 2
14' Extension 1
18' Extension 1
24' Extension 2
35' Extension 1
27
Item 10.b. - Page 46
LIVING QUARTERS
Arroyo Grande
Sofa 1
Love Seat 1
Recliner 3
Kitchen Table 1
Kitchen Table Chair 4
TV Snack Tray 4
Grover Beach
Sofa 2
Recliner 1
Table 2
Lamp 2
Sofa /Front Office) 1
Chair /Front Office) 1
Oceano
Sofa 1
Recliner 2
Kitchen Table 1
Kitchen Table Chair 6
MECHANIC'S SHOP
Arrovo Grande
Tool Box /Blue) 1 (Hand Tools)
Mechanic's Creeper 2
Air Compressor 1
Floor Jack 3 (1 ½ ton; 5 ton; 22 ton)
Hand Truck /Liaht Dutv) 3
Refriaerator Dollv 1
Miscellaneous Nuts, Bolts, Etc. 1 Lot
Battery Charger 3
Miller Wire Feed Welder 1
Arc Welder 1
Drill Press 1 (Jet)
Jack Stand 10
Lubricant (Miscellaneous) 100 Gallons
Drills, Saws, Solderina Iron 1 Lot
Oxy Acetvlene Torch 1
Fuel Pumo (Hand Operated) 1
Hand Tools Lighting 6646
Miscellaneous Parts Lighting 6646
28
Item 10.b. - Page 47
MISCELLANEOUS
Arroyo Grande
Podium 1
Classroom Tables 17
Classroom Chairs 51
Chairs Chiefs Office} 3 Executive -1; Stationary -2)
Chairs Administration Office) 4 Task -2; Stationarv -2)
Chairs Operations Office) 5 Task)
Chairs Front Office) 3 Stationary}
Chairs Communications} 2 Task}
Informational Sign w/ Stand 3
American Flag w/ Stand 1
American Flaa (20' x 30') 1
California Flaa w/ Stand 1
Grover Beach
Podium 1
Classroom Tables 6
Classroom Chairs 32
Office Chairs 8
Oceano
None
MUL Tl CASUAL TY INCIDENT EMS
Arroyo Grande
Inventory List Available .
Grover Beach
EMS Baa 4
Tarps 1 box
Oceano
None
OFFICE EQUIPMENT/ MACHINES
Arrovo Grande
Copy/ Fax Machine 1
Laminating Machine 1
Label Maker (Brother) 1
Digital Camera 2
Typewriter {Portable) 1
Suoolv Cabinet 5
29
Item 10.b. - Page 48
Grover Beach
Copy Machine 1
Fax Machine 1
Diaital Camera 3
Label Maker (Brother) 1
Typewriter (Portable) 1
Suoolv Cabinet 3
Oceano
Fax Machine 1
Digital Camera 3
PERSONAL PROTECTIVE EQUIPMENT (PPE)
Arroyo Grande
Turnout Coats 63
Turnout Pants 80
EMS Jackets 12
Helmets 54
Grover Beach
Turnouts /Structure) 30
Turnouts /Wildland 24
EMS Jackets 32
Helmets 52
Oceano
Turnouts (Structure 50
Turnouts /Wildland 40
EMS Jackets 7
Helmets 41
SELF CONTAINED BREATHING APPARATUS ISCBA\
Arrovo Grande
SCBA Units 30
SCBA Bottles 65
Voice Proiection Units 3
Masks 60
PosiCheck/AnnualTestl 1
Fit Tester 1
Grover Beach
SCBA Units 17
SCBA Bottles 38 (30 min.); 4 (10 min.); 2 /45 min.)
Voice Proiection Units 16
Masks 36
30
Item 10.b. - Page 49
Oceano
SCBA Units 21
SCBA Bottles 42
Voice Proiection Units 6
Masks 22
SLEEPING QUARTERS
Arrovo Grande
Bed 12
Desk 6
Task Chair 6
Locker/ Closet
Grover Beach
Bed 6
Locker / Closet 9
Bookshelves 3
Lamp 3
Oceano
Bed 4
Bookshelves 2
STATION EQUIPMENT
Arrovo Grande
Extractor (Industrial Washer\ 1
Dryer (Industrial\ 1
Washer (Domestic) 1
Dryer (Domestic) 1
Grover Beach
Extractor /Industrial Washer) 1
Washer (Domestic) 1 ..
Drver (Domestic) 1
Oceano
Washer (Domestic) 1
Dryer (Domestic) 1
Turnout Rack (6x3) 18
TECHNICAL RESCUE EQUIPMENT
Arroyo Grande
Hydraulic Rescue Tools 3 power units with tools
Air Baqs 1 set with 5 baas
Rope Rescue Eauioment 2 sets of basic complement
Stokes Basket w/ Haul Eauioment 2
Grover Beach
31
Item 10.b. - Page 50
Rone:
Truck Cache Bags 2
Saddle Bags 3 (300 feet)
Pig Rig 1 (300 feet)
Rope Bag 1 (300 feet)
Rooe Baa 1 (150 feet)
Side Edae Roller Set 1
Rescue:
Class 1 Rescue Harnesses 8
Rescue Helmets 4
Class 3 Rescue Harnesses 2
Tri Pod 1
Stokes Basket w/ Haul Eauipment 2
Small Rescue 42 Struts 3
Lan:ie Rescue 42 Struts 2
Rescue 42 Eauioment Tool Box 2
Pry Bars 4
Pickets 21
Confined Soace:
Air Manifold Unit 1
Rescue Air Suooly Hose 800 feet
Hard-line Communication Unit 1
Rescue Communication Line 800 feet
SAR Rescue Escape Units 4
Entry Blower 1
Air Bans:
Air Baa Control Unit 2
Air Baa (Small) 1
Air Baa (Medium) 2
Air Baa (Larae) 3
Rectangle Air Baa (Larae) 1
Air Baa Hoses 4 (15 feet each)
Air Baa Hoses 2 (30 feet each l
Hvdraulics:
Battery Combo Unit /Homatrol 1
Spreader Unit (Homatro) 1
Cutter Unit (Homatro) 1
Ram Unit (Homatro) 1
Ram Suooort 1
Power Unit (Homatrol 1
Hvdraulic Lines 100 feet
32
Item 10.b. - Page 51
Miscellaneous:
Anchor Hitches 2
USAR Marking Kit 1
Lock Out/ Tag Out Kit 1
Oceano
Hvdraulic Rescue Tools 1 power unit with tools
Batterv Rescue Equipment 2 cower units with tools
Rope Rescue Eauioment 1 full comolement olus extra
Stokes Basket w/ Haul Equipment 1
33
Item 10.b. - Page 52
EXHIBITD
AREA
The following map identifies the original service areas of the Jurisdictions for the JPA.
Contractual services provided to areas outside of these Jurisdictions are not depicted
on this map.
JPA
• •
Item 10.b. - Page 53
EXHIBIT D
AREA
The following map identifies the original service areas of the Jurisdictions for the JPA.
Contractual services provided to areas outside of these Jurisdictions are not depicted
on this map.
JPA
•
Memorandum of Agreement (MOA)
Amending the
Five Cities Fire Authority
Joint Exercise of Powers Agreement
This agreement is entered into by the Cities of Arroyo Grande and Grover Beach, and the
Oceano Community Services District, which are hereinafter referred to as the Parties. This
amendment to the Joint Exercise of Powers Agreement, dated June 7, 2010 (“Amendment”),
includes the following terms and provisions relating to the operations of the Five Cities Fire
Authority (“FCFA”), which operations shall continue as provided in the Joint Exercise of Powers
Agreement (“JPA” or “JPA Agreement”).
1. Each Parties’ contributions for funding the Fiscal Year 2018/19 FCFA budget
shall be:
a.City of Arroyo Grande $ 2,523,661
b. City of Grover Beach $ 1,798,108
c.Oceano Community Services District $ 987,362
2.For Fiscal Year 2018/19, staffing shortages shall be operationally managed by the
Fire Chief with updates provided to the Board of Directors. Such staffing shortages may result in
temporary closure or reduced staffing at fire stations.
3.During Fiscal Year 2018/19, the Parties shall act in good faith to meet and confer
for the purpose of considering amendments to the JPA including, but not limited to,
modifications to the funding formula contained in Exhibit B of the JPA Agreement (“Funding
Formula”), the provisions regarding member withdrawal, and future staffing levels beyond Fiscal
Year 2018/19, so that the JPA may be amended to meet the needs of each of the Parties. If the
Parties cannot agree upon amendments and a restructured JPA by April 1, 2019, then any
member agency may withdraw pursuant to the terms of this Amendment. Notwithstanding the
potential withdrawal of a member agency, if the remaining Parties cannot agree upon
amendments and a restructured JPA by April 1, 2019, the JPA shall be terminated as of
December 31, 2019, and assets and liabilities shall be distributed by and among the Parties
pursuant to Sections 4 and 5 below.
4.During Fiscal Year 2018/19, the Parties shall also act in good faith to meet and
confer in order to do the following by April 1, 2019, in preparation for the potential withdrawal
of a member agency and/or termination of the JPA:
a.Establish a distribution of assets currently owned and/or in the possession
of the JPA, including, but not limited to major pieces of apparatus and capital
ATTACHMENT 2
Item 10.b. - Page 54
equipment, which will allow all three Parties to maintain sufficient apparatus and
capital equipment to establish an independent fire service; and
b. Establish the obligations of the Parties to pay future obligations that were
incurred by the FCFA prior to July 1, 2019, including, but not limited to, those
future obligations related to lease payments on Engine 2 and 3 and future
pension/PERS obligations.
c.Notwithstanding the forgoing, the Parties mutually agree and understand
that as a result of the withdrawal of a member agency or the termination of the
JPA, no Party shall be obligated to future payment lease obligations for any
Engine that does not remain in the custody, control, and possession of that
agency.
5. If the Parties are unable to agree upon amendments and a restructured JPA by
April 1, 2019, then the Parties shall act in good faith to meet and confer to finalize the
distribution of all assets currently owned and/or in the possession of the JPA not established for
distribution in accordance with Section 4.a above, such as additional tools, machines, parts,
supplies, communication devices, computers, office equipment supplies and furnishings, by
December 31, 2019.
6. Upon mutual agreement of the City Manager of Grover Beach, the City Manager
of Arroyo Grande, and the General Manager of Oceano CSD that the Parties are making progress
towards JPA amendments and working in good faith, the April 1 deadlines contained within this
Amendment will be extended for a period not to exceed six (6) months and will result in a
corresponding extension of time of the December 31, 2019 deadline so as to always allow an
eight month wind down for distribution of assets and establishment of new services. This
extension may be handled administratively with no requirement of board approval from any of
the Parties.
7. Upon termination of the JPA or the withdrawal of an agency, any two agencies
subject to the JPA Agreement may agree, without consent of the third agency, to continue
operating under the FCFA name and branding and/or reestablish the FCFA under a new
agreement and operate under the FCFA name and branding.
8. The Parties understand and acknowledge that consistent with the Joint Exercise of
Powers Agreement and the conflict waivers contained therein, dated June 7, 2010 and the signed
waiver agreement, dated May 18, 2018, between the FCFA Board, the City Council of the City
of Grover Beach, the City Council of the City of Arroyo Grande and Board of Directors of the
Oceano Community Services District, the Grover Beach City Attorney, David Hale is
representing the Five Cities Fire Authority as General Counsel and the City of Grover Beach as
City Attorney in regards to the performance of the tasks identified in this Amendment. To the
Item 10.b. - Page 55
extent said representation may result in a potential or actual conflict of interest pursuant to
Section 4. E. (7) of the JPA Agreement, the Parties hereby waive the requirement that Mr. Hale
withdraw from representing either Party and agree to sign the conflict waiver agreement,
attached as Exhibit “A”, manifesting the subject waiver to the JPA Agreement Section 4. E. (7)
and that the signing by the parties herein of the subject conflict waiver agreement is a
representation by the parties the subject conflict waiver is in compliance with the California
Rules of Professional Conduct, section 3-310 and has adequately advised them of the potential
conflicts contained within the subject representation. Moreover, the City of Arroyo Grande and
Oceano Community Services District are represented by independent legal counsel which has
reviewed the conflict waiver and advised them regarding said agreement.
9. To the extent there is inconsistency between this Amendment and the JPA, the
terms of this Amendment shall control, including but not limited to JPA Sections 4.E.(7), 6.B,
8.B.(3), and Section 17.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and attested by their proper officers hereunto duly authorized, and their official seals to be hereto
affixed, as of the day and year first above written.
CITY OF ARROYO GRANDE CITY OF GROVER BEACH
By: __________________________ By: __________________________
_______________, Mayor _______________, Mayor
Attest: Attest:
_____________________________ ______________________________
_______________, City Clerk _______________, City Clerk
OCEANO COMMUNITY SERVICES DISTRICT Attest:
By: ___________________________ ______________________________
_________________, President ______________, Board Secretary
Item 10.b. - Page 56
ATTACHMENT 3
Item 10.b. - Page 57
SECOND AMENDMENT TO FIVE CITIES FIRE AUTHORITY
JOINT EXERCISE OF POWERS AGREEMENT
This Second Amendment to the Five Cities Fire Authority ("FCFA") Joint Exercise of
Powers Agreement, dated June 7, 2010 ("JPA") ("Second Amendment"), is made and entered
into as of July 1, 2019, by and between the cities of Arroyo Grande and Grover Beach, and the
Oceano Community Services District ("Oceano"), which are hereinafter referred to as "Party"
and "Parties."
WHEREAS, on June 7, 2010, the Parties entered into a JPA pursuant to Section 6500 et seq. of
Chapter 5 ofDivision 7 ofTitle I ofthe Government Code ofthe State of California, for the
purpose of allowing the Parties to share a combined fire department in order to provide efficient
and economical fire protection services; and
WHEREAS, in or about May of 2018, the Parties executed a Memorandum of Agreement
Amending the FCF A JP A ("First Amendment") in order to provide an opportunity for the Parties
to meet and confer for the purpose of considering amendments to the JP A including, but not
limited to, modifications to the funding formula contained in Exhibit B of the JPA ("Funding
Formula"), the provisions regarding member withdrawal, and future staffing levels beyond Fiscal
Year 2018/19; and
WHEREAS, the First Amendment required the Parties to agree upon amendments to the JPA by
April 1, 2019 or the JPA would terminate as of December 31, 2019; and
WHEREAS, in March of 2019, the Parties executed an extension of the First Amendment,
which extended the time for the Parties to mutually agree upo11 JPA Amendm~nts to October 1,
2019;and
WHEREAS, the parties have met in good faith and now desire to amend the JP A.
NOW THEREFORE, in consideration of the mutual covenants and conditions set forth herein,
the Parties agree as follows:
1. Recitals. The above recitals are true and correct and incorporated herein.
2. Strategic Plan. The Parties agree to fund the following priorities of the five-year
Strategic Plan, which was adopted by the FCF A Board of Directors in 2017 for the
Fiscal Year 2019/20 budget:
Continued transition to Career Firefighter position with hiring of three (3) full-time
positions to be assigned to the Grover Beach fire station.
3. Fiscal Year 2019/2020. Each Parties' contributions for funding the Fiscal Year
2019/20 FCFA Budget shall be:
A. City of Arroyo Grande $2,580,955
45.01% ------
Item 10.b. - Page 58
B. City of Grover Beach
35.14% ------c. Oceano Community Services District
19.85% ------
4. Funding Formula.
$2,015,115
$1,138,148
A. The Funding Formula contained in Exhibit B to the JPA is hereby amended and
replaced in its entirety as set forth in Attachment 1 to this Amendment. All
references in the JPA to Exhibit B shall now refer to Attachment 1.
B. For Fiscal Year 2019-20, a transitional formula is used to determine the funding
contributions specified in Section 3. This transitional formula modifies
component 3 of the Funding Formula related to fire stations to reflect current
staffing levels. This transitional formula may be used for the subsequent Fiscal
Year 2020-21 as noted in Section 5B.
C. The Funding Formula will be reviewed by the Jurisdiction every three years in the
month of January, commencing 2023.
5. Ballot Measure.
A. Oceano agrees to undertake the legally required procedures to place a special tax
on the March 2020 ballot in accordance with Government Code Section 61121.
Oceano will seek a special tax amount sufficient to enable Oceano to be able to
fund its share of the Funding Formula taking into account the priorities of the
Strategic Plan as determined by the Five Cities Fire Authority Board of Directors.
B. If the March 2020 Oceano ballot measure does not pass and Oceano is unable to
fund its share of the Funding Formula, by operation of this Second Amendment
and subject to the Wind Down Period (identified below), Oceano will
automatically and without further action cease to be a member of the JPA on June
30, 2021. The time between when the County Clerk Recorder concludes that the
2020 Oceano ballot measure has failed and June 30, 2021 will be known as the
"Wind Down Period." Oceano agrees that should it no longer be a member
agency of the FCFA, the cities of Arroyo Grande and Grover Beach may continue
to operate under the trademark name of Five Cities Fire Authority with no further
rights of Oceano to that name. Should the March 2020 ballot measure fail, the
funding obligations set forth in Section 3 above for the Fiscal Year 2019/20
FCF A Budget, shall be the same in Fiscal Year 2020/2021.
2
Item 10.b. - Page 59
6. Wind Down Period.
A. During the Wind Down Period, the Parties shall establish the distribution of assets
currently owned and/or in the possession of the JPA, including but not limited to
major pieces of apparatus and capital equipment, which will allow Oceana to
maintain sufficient apparatus and capital equipment in order to establish an
independent fire service and will allow Arroyo Grande and Grover Beach to
continue to operate as the FCF A.
B. During the Wind Down Period, the Parties will establish the obligations of the
Parties to pay future obligations that were incurred by the FCFA prior to April 1,
2020, including, but not limited to the following:
a. Lease payments on Engine 2 and 3; however, the Parties mutually agree and
understand that as a result of the dissociation and/or withdrawal of Oceana or
any other Party, no Party will be obligated for future payment lease
obligations for any Engine that does not remain in the custody, control, and
possession of that Jurisdiction.
b. Withdrawal and/or dissociation of Oceana or any other Party shall not absolve
such Party of liabilities arising out of the participation in the JP A incurred in
the ordinary course of business. The Parties mutually agree and understand
that as a result of the dissociation and/or withdrawal of Oceana or any other
Party, all Parties will remain obligated to pay future FCF A employment
related obligations incurred prior to June 30, 2021, including but not limited to
pension/PERS, accrued fringe benefits etc.
c. During the Wind Down period, the FCF A will perform an unfunded actuarial
accrued liability analysis to calculate Oceana or any other dissociating and/or
withdrawing Parties' share of unfunded PERS liability, which will be due to
the remaining JP A Parties or the City of Arroyo Grande should the JPA be
dissolved.
d. During the Wind Down Period, the Parties will meet and confer in good faith
in regards to the distribution of assets and liabilities as follows:
a. A determination as to the distribution of equipment and physical assets
by October 1, 2020 (effective June 30, 2021).
b. An estimate as to the distribution of debt, employment liability,
pension/PERS and other post-employment obligations by February 1,
2021 (effective June 30, 2021).
c. An estimate as to the distribution of all other assets by March 1, 2021
(effective June 30, 2021).
e. The parties mutually agree and understand that any liability related to
unresolved claims or litigation existing prior to June 30, 2021 will remain the
obligation of all Parties whether remaining members of the FCFA or not.
f. Prior to October 1, 2021, the Parties shall complete a post-dissociation
reconciliation of all assets and liabilities incurred prior to June 30, 2021. Any
party owing funds shall pay such funds to the other immediately upon
3
Item 10.b. - Page 60
determination. The parties agree to cooperate in completing this post closing
reconciliation.
7. Effect of Amendment. All other provisions of the JPA shall remain unchanged and
in full force and affect. To the extent there is inconsistency between this Amendment
and the JPA, the terms of this Amendment shall control, including but not limited to
JPA Sections 6.B, 8.B(3), and 17.
8. Counterparts. This Amendment may be executed in any number of counterparts and
by the Parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and
the same agreement.
9. Severability. If any part of this Amendment is found to be in conflict with applicable
laws, that part will be inoperative, null and void insofar as it is in conflict with any
applicable laws, but the remainder of the Amendment will remain in full force and
effect.
4
Item 10.b. - Page 61
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed by
their proper officers hereunto duly authorized.
CITY OF ARROYO GRANDE CITY OF GROVER BEACH
c~
· ims Ci · rk ;::.
APPROVED AS TO FORM: -~;c~
~ ,,;:;. r
0 FGRM}~~~ .. ~~_ .. ·, "
..._r ,. ~--~ ,. -
Heather K. Whitham, City Attorney
OCEANO COMMUNITY SERVICES DISTRICT
~,~id~ .. ~ --,,
5
Item 10.b. - Page 62
ATTACHMENT 1
FUNDING FORMULA
Should the ballot measure pass, effective July 1, 2020, the Parties shall bear the costs of the Five
Cities Fire Authority according to the following formula, to be calculated every three years when
the budget is prepared. If the ballot measure fails, the funding will be in accordance with Section
5.B of this Second Amendment.
1. 3 3 .3 3 % of costs shall be assessed among the Parties in proportion to the population of
each Jurisdiction as most recently determined by the U.S. Census and any intervening
estimates prepared by the California Department of Finance when the Fire Chief prepares
each annual budget.
2. 33.33% of costs shall be assessed among the Parties in proportion to the number of
annual service calls, calculated on a three-year rolling average in each Jurisdiction as
most recently determined when the Fire Chief prepares each annual budget.
3. 33.33% of costs shall be assessed among the Parties in proportion to the number of fire
stations located in each Jurisdiction.
6