CC 2019-03-12_10a Direction Related to Fire ServiceMEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
SUBJECT: CONTINUED DISCUSSION - PROVIDE DIRECTION RELATED TO FIRE
SERVICE WITHIN THE CITY OF ARROYO GRANDE
DATE: MARCH 12, 2019
SUMMARY OF ACTION:
The City Council will continue to discuss and give direction regarding fire service within
the City of Arroyo Grande.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Decisions related to the funding formula of the Five Cities Fire Authority will not affect the
current year budget.
RECOMMENDATION:
It is recommended the City Council consider: 1) updates regarding meetings with
representatives of County of San Luis Obispo and a meeting of the managers of the three
communities; and 2) a proposed six month extension of the current Memorandum of
Agreement.
BACKGROUND:
On February 26, 2019, the City Council considered information regarding policy options for
the provision of fire service within the City of Arroyo Grande. At the close of the meeting all
five Council Members indicated support of 1) full participation in the current Five Cities Fire
Authority (FCFA) (Option #2), 2) continued discussion with the managers to refine the
funding formula, 3) meeting with representatives of all three communities and the County
of San Luis Obispo to assess the County’s potential future involvement, and 4)
consideration of up to a three month extension of time as allowed by the Memorandum of
Agreement (MOA).
On March 1, 2019, the General Manager of the Oceano Community Services District
(OCSD) proposed a six month extension of the MOA to allow additional time for all parties
to continue discussions (Attachment 1).
On Sunday March 3, 2019, ad hoc elected and staff representatives from OCSD, City of
Grover Beach, City of Arroyo Grande, County of San Luis Obispo, the Five Cities Fire
Authority Chief, the County Fire Chief, and a labor representative met to discuss the efforts
Item 10.a. - Page 1
CITY COUNCIL
CONTINUED DISCUSSION - PROVIDE DIRECTION RELATED TO FIRE SERVICE
WITHIN THE CITY OF ARROYO GRANDE
MARCH 12, 2019
PAGE 2
to implement the strategic plan of the Five Cities Fire Authority, the current negotiations of
the funding formula, and the County’s potential future participation in the provision of fire
service. The meeting was productive and ended with a better understanding of the policy
positions of each community.
An important aspect of the discussion was to understand the current policy of the County
in the provision of fire services within Special Districts. The position of the County presented
at the meeting is summarized as:
Communities that provide fire service responsibilities through a Special District have
the duty to continue to provide such services and should seek funding from their
respective communities.
If, after attempting all funding options, a Special District is unable to continue
providing fire service and chooses the process of divestiture of fire service
responsibilities, there is no guarantee that the County will provide fire service to the
community.
The divestiture process is long (18 months or longer) and dependent on a plan of
service, approval by the County and Local Agency Formation Commission
(LAFCO).
If, after completing the LAFCO process, the County chooses to assume fire service
responsibilities, it will be under the current County Fire system and not as a member
of a Joint Powers Authority (JPA).
These statements are consistent with the recent County report and works to treat all
special districts consistently.
On March 4, 2019, the City Council of the City of Grover Beach discussed their participation
in the FCFA. The Grover Beach City Council concurred with their City Manager’s stated
intent to execute the MOA extension for six months to allow more time for JPA discussions
with partner agencies including the funding formula. The Grover Beach Council also voiced
strong support for continuing participation in FCFA and the working regional service
delivery model.
On March 6, 2019, the Managers, Fire Chief, and the FCFA treasurer met to continue to
discuss continuing efforts for the group in the near term. These items included:
One more review of the funding formula
Cost of implementing the full strategic plan
Debt versus sinking fund for heavy equipment replacement
Future paramedic services
Update to the FCFA Board of the Strategic Plan
DISCUSSION:
On February 26, 2019, all five Council Members indicated support to: 1) continue to fully
participate in the current FCFA, 2) continue the work with the managers to refine the
Item 10.a. - Page 2
CITY COUNCIL
CONTINUED DISCUSSION - PROVIDE DIRECTION RELATED TO FIRE SERVICE
WITHIN THE CITY OF ARROYO GRANDE
MARCH 12, 2019
PAGE 3
formula, 3) meet with representatives of all three communities and the County of San Luis
Obispo to assess the County’s potential future involvement, and 4) up to a three month
extension of time as allowed by the MOA.
Since the February 26, 2019 meeting, it is now known that the County has indicated that
its current policy does not support participating in the funding of the FCFA now or in the
event of divestiture of fire service responsibilities by the OCSD. In addition, two of the FCFA
member agencies support a six month extension to continue MOA discussions. These
developments allow the following options as presented in the flowchart below:
Agree to a 6 month extension?
No
Consider extensions
less than six months
before the April 1,
2019 MOA deadline
Yes
Communities budget to fund per new
formula
OCSD commits to a funding Measure
to Oceano voters on March 3, 2020
Pass
FCFA continues
per new funding
formula
Each agency should be
prepared for an
alternative service plan
Does not
Pass
Agree with funding
formula developed
during the
extension? (Amended
JPA Agreement)
Yes
No
FCFA Dissolves on
June 1, 2020
Item 10.a. - Page 3
CITY COUNCIL
CONTINUED DISCUSSION - PROVIDE DIRECTION RELATED TO FIRE SERVICE
WITHIN THE CITY OF ARROYO GRANDE
MARCH 12, 2019
PAGE 4
Agreeing to a six month extension will allow continued discussions of the funding formula
and other aspects of the JPA per the MOA until October 1, 2019. If an agreement to
modifications to the JPA occur prior to October 1, 2019 and a budget for FY 2019-20 can
be agreed upon, it will allow the OCSD Board to consider a funding measure and for the
results of the funding measure to be known in March of 2020. If an agreement cannot be
made by October 1, 2019, dissolution of the FCFA will occur on June 1, 2020 per the
amended MOA.
Continued support of the three month extension will allow discussion of the funding formula
and other aspects of the JPA per the MOA until July 1, 2019. If an agreement to
modifications to the JPA occur prior to July 1, 2019 and a budget for FY 2019-20 can be
agreed upon, it will allow the OCSD Board to consider a funding measure and for the results
of the funding measure to be known in March of 2020. If an agreement cannot be made by
July 1, 2019, dissolution of the FCFA will occur on March 31, 2020 per the amended MOA.
This option is contrary to decisions of the other FCFA member agencies in their current
support for a six month extension.
Not agreeing to a time extension would continue to leave the April 1, 2019 MOA deadline
in place with dissolution of the FCFA occurring on December 31, 2019. This is contrary to
Council comments on February 26, 2019 and opposite of the wishes of the other FCFA
member communities.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Consider a six month extension of the Memorandum of Agreement; or
2. Provide other direction to staff.
ENVIRONMENTAL REVIEW:
None required.
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. Letter from OCSD and proposed Extension of Memorandum of Agreement
Item 10.a. - Page 4
-..
March 1, 2019
Mr. Jim Bergman, City Manager
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Gentlemen,
Oceano Community Services District
1655 Front Street, P.O. Box 599, Oceano, CA 93475
(805) 481-6730 FAX (805) 481-6836
Mr. Matt Bronson, City Manager
City of Grover Beach
154 S. Eighth
Grover Beach, CA 93433
Attached is a document prepared by the legal counsel for the Oceano Community Services District
that I have executed providing for a six-month extension of negotiations for amending the Five Cities
Fire Authority Joint Powers Agreement as allowed in a Memorandum of Agreement approved by our
governing bodies in May 2018.
It is my hope that extending the negotiations will provide us the best opportunity to ensure that
dialogue between our communities, the union, and the County will produce positive results in support
of the Five Cities Fire Authority. In 2018, Oceana CSD provided comments and recommendations to
the Board of Supervisors during their deliberations on the dissolution of the Cayucos Fire Protection
District pointing out that the challenges associated with fire protection and emergency services in the
unincorporated area are not just in Cayucos, but that they face Oceana and other communities. In
response, the County support the recommendations of Oceana CSD and prepared the special district
study that has become part of our ongoing discussions. The Oceana initiative last year has also led to
additional discussions with the County regarding funding of fire and emergency services and we
remain committed to addressing County and Oceana relationships as we proceed. This dialogue is
also consistent with other joint efforts between the County and Oceana CSD such as coordination on
bridge replacement projects, drainage projects, code enforcement issues and others. Oceana CSD
remains optimistic that our existing relationships will be beneficial in addressing fire and emergency
services just as they have been on other efforts.
I want to ensure both of you that I understand that we each have the responsibility of providing our
governing bodies and the communities we represent with the best information and the best
recommendations for fire and emergency services. The Oceana CSD remains committed to
supporting the Five Cities Fire Authority.
ATTACHMENT 1
Item 10.a. - Page 5
Oceana Community Services District
Board of Directors Meeting
I appreciate coordination of an upcoming meeting with County representatives and believe that
engaging in meaningful dialogue with the County and ultimately gaining an understanding on what
they may or may not be able to commit to, requires the MOA extension period.
In conclusion, I am hopeful that we three managers will approve the MOA extension and continue with
best faith efforts in support of the Five Cities Fire Authority and the three communities. Mr. Minnery is
also available in the event that the attached is acceptable with modifications.
Respectfully,
~✓otlv---
Paavo o;~n, General Manager
Oceano Community Services District
Item 10.a. - Page 6
..
Extension of Memorandum of Agreement (Extension of MOA)
Amending the
Five Cities Fire Authority
Joint Exercise of Powers Agreement
WHEREAS, in or about May of 2018, the Cities of Arroyo Grande and Grover Beach,
and the Oceano Community Services District ("Parties") executed an amendment of the Joint
Exercise of Powers Agreement, dated June 7, 2010 ("Amendment"); and
WHEREAS, the Amendment provides that unless the Parties are able to agree upon
amendments and a restructured Joint Exercise of Powers Agreement ("JPA") by April 1, 2019,
then the Parties shall act in good faith to finalize the distribution of all assets by December 31,
2019;and
WHEREAS, Section 6 of the Amendment also provides that 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 JP A amendments, the
April 1 deadlines contained within the Amendment can 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; and
WHEREAS, the parties mutually agree that good faith efforts have been made, although
more work is required, and the Parties desire to extend the Amendment for six ( 6) additional
months.
NOW THEREFORE, the Parties agree as follows:
1. References to April I, 2019 in Section 3 of the Amendment shall be modified
to October I, 2019. References to December 31, 2019 in Section 3 of the
Amendment shall be modified to June 1, 2020.
2. References to April 1, 2019 in Section 4 of the Amendment shall be modified
to October 1, 2019.
3. References to April 1, 2019 in Section 5 of the Amendment shall be modified
to October 1, 2019. References to December 31, 2019 in Section 3 of the
Amendment shall be modified to June 1, 2020.
4. The option to extend the Amendment in Section 6 shall be exercised by this
Extension.
Item 10.a. - Page 7
5. All other provisions of the Amendment shall remain unchanged and in full
force and affect.
6. 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.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their proper officers hereunto duly authorized.
CITY OF ARROYO GRANDE
By: -----------Jim Bergman, City Manager
OCEANO COMMUNITY SERVICES DISTRICT
I Manager
CITY OF GROVER BEACH
By:-----------
Matthew Bronson, City Manager
Item 10.a. - Page 8