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HomeMy WebLinkAboutCC AG PKT 2014-10-13 #E F AGENDA STAFF REPORT f� �s � f DATE: October 13, 2014 TO: Honorable Mayor and City Council FROM: Jill R. Ingram, City Manager SUBJECT: SECOND AMENDMENT TO OCFA JOINT POWERS AUTHORITY AGREEMENT — EQUITY SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6504 approving the Resolution making findings related to approval of Orange County Fire Authority's Second Amendment to the Amended Joint Powers Authority (JPA) Agreement seeking to address the equity issue. BACKGROUND AND ANALYSIS: In March 2012, in response to concerns raised by the City of Irvine, 'the OCFA Board of Directors took action to form an Ad Hoc Committee for the purpose of studying equity. For OCFA, the equity issue refers to the extent to which the revenue received from a member agency bears a reasonable relationship to the cost of services that a member receives. Following 18 months of deliberations, an amendment to the Joint Powers Authority was prepared and approved by 20 of OCFA's 24 member agencies, of which Seal Beach was one. Three member cities rejected the Amendment, and one member agency (County of Orange) did not consider approval of the Amendment. To become effective, the Amendment was only required to be approved by 2/3 (16) of OCFA's individual member agencies, which was achieved on November 18, 2013. In approving the amendment, the OCFA Board of Directors also authorized General Counsel to commence a validation action in the Orange County Superior Court to obtain a judicial declaration of the validity of the "Second Amendment to the Amended JPA" once the amendment had been approved by 2/3 of OCFA's member agencies. Per that authorization, the OCFA and the City of Irvine jointly filed a Petition seeking validation of the Second Amendment on December 19, 2013. On January 28, 2014, the Orange County Board of Supervisors voted 4-to-1, with Supervisor Spitzer opposed, to file a formal response in opposition to the validation action. After hearing the matter, the trial court ruled on August 4, 2014 Agenda Item E that the Second Amendment is invalid. Subsequent to this ruling, both the Irvine City Council and the OCFA Board of Directors approved filing an appeal in the validation action. OCFA's Special Litigation Counsel for this matter has drafted the attached Resolution for consideration and approval by OCFA's member agencies. The Resolution requests each city to make findings related to approval of the Second Amendment. If approved by OCFA's member agencies, Special Counsel will submit the approved Resolutions to the Court of Appeal. The proposed Resolution includes multiple recitals (WHEREAS clauses) explaining why cities voted to approve the Second Amendment last year. By adopting the resolution, the cities would resolve that the recitals are true and correct, and that they are adopted as findings representing the City Council's intent in approving the Second Amendment. When cities approved the Second Amendment last year, they were not required or requested to adopt any resolutions explaining why they were doing so. But now that the trial court has invalidated the Second Amendment, the adoption of a resolution explaining why the cities approved the Second Amendment could be helpful to OCFA's appeal. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: There is no financial impact related to making findings related to approval of the Second Amendment to OCFA Joint Powers Authority Agreement— Equity. The City of Seal Beach, as a Cash Contract member, is not eligible for equity payments and shall not be required to pay additional contributions to OCFA as a result of the equity payments to eligible members. SUMMARY: There are numerous benefits to be achieved with this proposed equity solution: • Keeps all OCFA members together • Provides long-term organizational stability • Addresses the equity concerns presented by the City of Irvine • Achieves financial feasibility within OCFA's financial framework • Protects Structural Fire Fund and Cash Contract members not eligible under the formula from financial impacts Page 2 RECOMMENDATION: That the City Council adopt Resolution No. 6504 approving the Resolution making findings related to approval of Orange County Fire Authority's Second Amendment to the Amended Joint Powers Authority (JPA) Agreement seeking to address the equity issue SUBMITTED BY: !lIXYL J I Ingram, Ci Mana er 0. Prepared by: Tina Knapp, Executive Assistant Attachments: A. Resolution No. 6504 B. Resolution No. 6419 C. Executed Second Amendment to Amended Joint Powers Authority Agreement Page 3 RESOLUTION NUMBER 6504 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL MAKING FINDINGS RELATED TO THE CITY'S PRIOR APPROVAL OF THE ORANGE COUNTY FIRE AUTHORITY'S SECOND AMENDMENT TO THE AMENDED JOINT POWERS AUTHORITY AGREEMENT RECITALS A. The Orange County Fire Authority (OCFA) was formed in 1995 to provide regional fire protection and related services to the County of Orange and 18 member cities; and B. Five additional cities have become members of the OCFA, since its original formation; and C. The original Joint Powers Authority (JPA)Agreement was amended on September 23, 1999, and thereafter renewed in 2010 by the First Amendment to the Amended JPA Agreement; and D. Under the Amended JPA Agreement, OCFA member agencies pay for fire services under one of the following two pay structures: (1) the Structural Fire Fund, or(2) cash contracts; and E. If a member agency is a Structural Fire Fund jurisdiction, the County of Orange collects property taxes in the member agency's jurisdiction, a portion of which is paid to OCFA for fire services; and F. If a member agency is a Cash Contract City, the member agency makes service payments directly to OCFA from the member agency's general funds pursuant to the terms of a contract entered into by the OCFA and the member agency; and G. The OCFA and certain member agencies were concerned that these payment structures created inequity among the member agencies-, and H. In light of this perceived inequity, some member agencies expressed concern that they may need to withdraw from membership in OCFA in 2020, as allowed by the Amended JPA Agreement; and 1. In order to ensure the long-term stability of the OCFA and allow the OCFA to continue to provide cost-effective fire protection services for the various member agencies, the OCFA proposed a new Enhanced Hybrid Model payment structure; and J. The City of Seal Beach is committed to participating in regional efforts to provide cost-effective and adequate fire protection services; and K. On October 28, 2013, the City Council approved the Second Amendment to the Amended JPA Agreement (Second Amendment) to allow for the use of the Enhanced Hybrid Model payment structure; and L. The City now wishes to affirm its intent in approving the Second Amendment. Resolution Number 65D NOW THEREFORE, THE CITY COUNCIL HEREBY RESOLVES AND ORDERS AS FOLLOWS: Section 1. The City Council hereby affirms that the foregoing recitals are true and correct, and are adopted as findings representing the City Council's intent in approving the Second Amendment mn October 28.2813. Section 2. The City Clerk shall certify to the passage and adoption of this Resolution and enter b into the book mf original resolutions. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at m regular meeting held Vn the_t3th day of<October_.2O14by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY{}FORANGE SS CITY OF SEAL BEACH } 1. Linda Devine, City Clerk of the City ofSeal Beaoh, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6504 on @e in the office of the City Clerk, passed, approved, and adopted by the City Council et a regular meeting held on the t3th_ day of . 2014� City Clerk RESOLUTION NUMBER 6419 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING A SECOND AMENDMENT TO THE AMENDED ORANGE COUNTY FIRE AUTHORITY JOINT POWERS AUTHORITY AGREEMENT MODIFYING THE JOINT FINANCING OF FIRE SERVICES WITH NO FINANCIAL IMPACT ON SEAL BEACH AND AUTHORIZING THE CITY ATTORNEY TO JOIN IN A VALIDATION ACTION REGARDING THE AMENDMENT RECITALS A. The Orange County Fire Authority (OCFA) was formed in 1995 to provide regional fire protection and related services ("Fire Services") to the County of Orange and 18 member cities, and the City of Seal Beach ('Seal Beach") is an original member of the Joint Powers Authority Agreement (JPA). Subsequent to formation of the OCFA, 5 additional cities have become members of the OCFA. B. The original JPA was replaced by the Amended Jointr Powers Authority Agreement (1999 Amended Agreement) in 1999, which was subsequently'amended in 2010 by the First Amendment to the Amended JPA Agreement. C. OCFA member agencies pay for fire and emergency medical services through two different pay structures,, and thus members have been grouped into one of the following categories depending on their pay structures: "Cash Contract members"or Structural Fire Fund(SFF)members. Seal Beach is a Cash Contract member, D. The OCFA has periodically studied the extent to which the revenue received from a member agency bears'a reasonable' - relationship to,the cost of service that,a member receives, especially the amounts.paid by SFF members. In March 2012, SFF member City of Irvine renewed its concerns about such equity issues. E, In response,the OCFA formed an Ad Hoc Equity Committee for the purposes of studying such equity issues.. Guiding principles adhered to during discussions of potential equity solutions included the following: • Identifying a solution which is feasible within OCFA's financial framework;and • Identifying a solution which can be supported by OCFA member agencies,including Irvine-,and • Continuing to provide excellent service to all OCFA members;and • Gaining long-term organizational stability. F. The Committee has recommended that the JPA be amended to resolve the equity issue, without increasing the annual service charges to Cash Contract members, including Seal Beach. - G. Any amendment to the JPA requires approval from two-thirds of the members in order to become effective(16 of OCFA's 24 member agencies). Resolution Number 6419 NOW THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE, FIND AND DETERMINE AS FOLLOWS: Section 1. The City Council hereby approves the Second Amendment to the Amended Orange County Fire Authority Joint Powers Agreement("Second Amendment") and authorizes and directs the City Manager to execute the Second Amendment on the City's behalf. Section 2. The City Council hereby authorizes the City Attorney to join in a validation action brought by the Orange County Fire Authority to obtain a judicial declaration of the validity of the Second Amendment. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 28th day of October ,2013 by the following vote: AYES: Council Members Lutz, NOES: Council Members0 ABSENT: Council Members ABSTAIN: Council Members ` ! Mayor ATTEST: S€Qt B�' U \��oavO�jFO9�y CD � iry Jerk 2G gyp. Q ` � o STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6419 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 28th day of October ,2013. A, ",:,6 L,�, City 6lerk SECOND AMENDMENT TO AMENDED ORANGE COUNTY FIRE AUTHORITY JOINT POWERS AGREEMENT This Second Amendment ("Second Amendment") to the Amended Joint Powers Authority Agreement is made and entered into by and between the following public entities (collectively referred to as"members*): Aliso Viejo, Buena Park, Cypress, Dana Point, Irvine, La Palma, Laguna-Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (collectively referred to as "Cites" and individually as "City") and the County of Orange (referred to as the "County"), each of whom is a member of the Joint Powers Authority, Orange County Fire Authority ( the Authority"). This Second Amendment requires the approval of two thirds of the members to go into effect, and it shall be effective when executed by a sixteenth member; provided that If a sixteenth member has not executed this Second Amendment by June 30, 2014, then it shall be void and shall not go into effect. RECITALS WHEREAS, the Authority presently provides fire protection, prevention and suppression services and related and Incidental services (collectively, "Fire Services") to Cities as well as to the unincorporated area of the County and State Responsibility Areas("SRA");and WHEREAS, the County and several of the Cities entered Into a Joint Powers Authority Agreement to form the Authority as of February 3, 1995 pursuant to the provisions of Article 1, Chapter 5, Division 7, rite 1 (commencing with Section 6500) of the Govemnient Code of the State of California("Joint Powers Statutes"); and 953601.1 WHEREAS, pursuant to the Joint Powers Statutes the members are authorized to jointly provide for the methods of the provision of Fire Services, including the method of financing the provision of Fire Services; and WHEREAS, on September 23, 1999, the members entered into an amended Joint Powers Authority Agreement ("1999 Amended Agreement") which superseded all prior agreements between the members and is incorporated herein by reference; and WHEREAS, pursuant to the 1999 Amended Agreement the members provided for the provision of Fire Services and the joint financing of Fire Services; and WHEREAS, on July 1, 2010, the members entered into the First Amendment to the Amended Joint Powers Agreement ("First Amendment") which amended several provisions of the 1999 Amended Agreement; and WHEREAS, on April 20, 2012, the City of Santa Ana joined the Authority and became a party to the 1999 Amended Agreement and the First Amendment; and WHEREAS, the members wish to amend the 1999 Amended Agreement and the First Amendment as set forth below to modify their joint financing of the Fire Services to promote financing equity among the members, to preserve the existing membership, to better assure future revenues that will continue to support the provision of high quality of Fire Services throughout the Authority's service area, and retain all other unamended terms of the 1999 Amended Agreement and First Amendment. NOW THEREFORE, the members agree to amend the 1999 Amended Agreement and First Amendment as follows: 955601.1 2 AGREEMENT 1. Article IV, Section 3, Subdivision A shall be amended to read as follows: A. Structural Fire Fund: Cash Contract Cities. County receives Structural Fire Fund property taxes ("SFF") from the unincorporated area and from properties located within the following member Cities: Irvine, Dana Point, Laguna Hills, Laguna Woods, Laguna Niguel, La Palma, Mission Viejo, San Juan Capistrano, Villa Park, Yorba Linda, Cypress, Los Alamitos, Lake Forest, Rancho Santa Margarita, and Aliso Viejo. These cities and the County together make up the "SFF Jurisdictions." On behalf of the cities from which the County receives SFF, and the unincorporated area, County shall pay all SFF it receives to the Authority to meet budget expenses and fund reserves in accordance with the County's normal tax apportionment procedures pursuant to the California Revenue and Taxation Code and the County's tax apportionment schedules. The member Cities which the County does not receive SFF are Santa Ana, Stanton, Tustin, Buena Park, Placentia, Westminster, Seal Beach, and San Clemente(collectively, "Cash Contract Cities"). 2. Article IV, Section 4 shall be deleted in its entirety and replaced with the following new Section 4: 4. Equity. The following calculations and actions shall be performed by the Authority each fiscal year: A. Over-Funded Structural Fire Fund (SFF) Jurisdictions. (1) The total estimated property tax revenue levied and allocated to the Authority, prior to accounting for delinquencies, and including secured, unsecured, nonoperating utility (SBE), and homeowner's exemptions shall be determined ('Total SFF Revenue Figure"). For the FY 2012/13 this amount was stated as $179,768,901.52 in the Auditor-Controller Report titled 955601.1 3 'AT68AD-73 Orange County Auditor Controller Accumulation of Combined Prior Year Levy and Current Year ATI"as the "Total SFF Revenue Figure." (2) The total Assessed Value, net of successor agency former project area incremental value, for all SFF jurisdictions shall be determined (the "Total AV Figure"). For the FY 2012/13 this amount was stated as $155,506,390,761 in the Auditor-Controller report titled 'AT04VC-74 Orange County Auditor Controller District Values Used to Set Tax Rates" and was identified as the "Total L$I (Land and Improvements), Total Secured and Unsecured Value for the Orange County Fire Authority Total Jurisdiction." (3) The Total AV Figure shall be multiplied by 1% (the basic levy tax rate) to determine the total value of the 1% basic levy for all SFF Jurisdictions for the fiscal year (the "SFF Basic Levy Figure"). For reference, in FY 2012/13, this calculated figure was $1,555,063,907.61. (4) The Total SFF Revenue Figure shall be divided by the SFF Basic Levy Figure for the same fiscal year and expressed as a percentage. The resulting percentage shall be referred to as the "Average SFF Rate" for the fiscal year. For reference, in FY 2012/13 the Average SFF Rate was 11.56%. The 2012/13 calculation is as follows: $179,768,901.521$1,555,063,907.61 =0.115602 (5) A "Jurisdictional SFF Rate" shall be determined for each SFF Jurisdiction as follows: a. The total property tax revenue allocated from all tax rate areas in the SFF Jurisdiction to the Authority, prior to accounting for delinquencies, and including secured, unsecured, utility (SBE), and homeowner's exemptions, but excluding revenue on successor 955601.1 4 agency incremental value in tax rate areas assigned to former redevelopment agencies, shall be determined ("Jurisdictional SFF Revenue Figure"). By way of example, for FY 2012/13 this determination would be made by (1) taking, for each tax rate area in the SFF Jurisdiction, the total assessed value of the tax rate area as reported in the Auditor Controller TRA Summary Detail Reports for the secured, unsecured, SBE, and homeowner's exemptions, (2) multiplying the total assessed value by 1%, and (3) multiplying the product by the Authority's share of the general levy tax rate in the tax rate area as stated in the "Auditor Controller Report AT68AH71 Section 99 Factor Report by TRA,"which would yield property tax revenue allocated from that tax rate area to the Authority. This calculation would be made for all tax rate areas within the SFF Jurisdiction, and the results would be added together to yield the Jurisdictional SFF Revenue Figure. b. The total Assessed Value, net of successor agency former project area incremental value (AV), for the SFF Jurisdiction shall be determined (the "Jurisdictional AV Figure"). c. The Jurisdictional AV Figure shall be multiplied by 1% to determine the total value of the 1% basic levy of the SFF Jurisdiction for the fiscal year (the "Jurisdictional Basic Levy Figure"). d. The Jurisdictional SFF Revenue Figure shall be divided by the Jurisdictional Basic Levy Figure for the 955601.1 5 same fiscal year and expressed as a percentage. The resulting percentage shall be referred to as the "Jurisdictional SFF Rate"for the fiscal year. (6) For those SFF Jurisdictions whose Jurisdictional SFF Rate is greater than the Average SFF Rate ("the Over-Funded SFF Jurisdictions"), a Jurisdictional Equity Adjustment Payment ("JEAP") shall be calculated using the data sources cited above and the following formula: (Jurisdictional SFF Rate x Jurisdictional AV Figure x 0.01)-(Average SFF Rate x Jurisdictional AV Figure x 0.01) (7) The JEAPs calculated in subdivision (6) shall be paid by the Authority in two equal payments in December and April each fiscal year, provided that the Authority has received its distribution of property tax revenues in or before such months. (8) The JEAP payments in subdivision (6) shall be made according to the following phase-in schedule: Fiscal Year Irvine Other Jurisdictions FY 2013/14 100% 0% FY 2014/15 100% (a) 25% FY 2015/16 100% (b) 50% FY 2016/17 100% 75% FY 2017/18 and thereafter 100% 100% a. The timing of payment for FY 2014/15 will be dependent on the Authority's Adopted Budget. If the General Fund is balanced in the Adopted Budget (Operating Revenues are equal to, or greater than, operating expenses), then 100% of the calculated JEAP will be paid to the City of Irvine as identified by the above schedule. (For purposes of this Agreement "Operating Revenues" includes Unrestricted General Fund Revenues and SFF revenues. If the General Fund is not 95WI.1 6 balanced, as defined above, then 25% of the calculated JEAP will be paid to the City of Irvine in FY 2014115, and the remaining 75% will be paid to the City of Irvine no later than FY 2016/17. This delayed payment, if any, will be paid in addition to calculated JEAPs due and payable in the subsequent fiscal year(s) and shall not include interest. b. The timing of payment for FY 2015/16 will be dependent on the Authority's Adopted Budget. If the General Fund is balanced in the Adopted Budget (operating revenues are equal to, or greater than, operating expenses), then 100% of the calculated JEAP will be paid to the City of Irvine as identified by the above schedule. If the General Fund is not balanced, as defined above, then 50% of the calculated JEAP will be paid to the City of Irvine in FY 2015/16, and the remaining 50% will be paid to the City no later than FY 2017/18. This delayed payment, if any, will be paid in addition to calculated JEAPs due and payable in the subsequent fiscal year(s) and shall not include any interest. (9) Neither Cash Contract Cities nor SFF jurisdictions that are not determined to be Over-Funded SFF Jurisdictions by these calculations shall receive any JEAP, nor will they be required to make additional payments to the Authority due to these calculations. Annual service charges for Cash Contract Cities shall not be increased as a result of the JEAPs paid pursuant to this Section 4. B. Additional Equity Adjustment for SFF Revenue from the City of Irvine. The following calculations and actions shall be performed by the Authority each fiscal year: (1) Beginning with Fiscal Year 2013/14, the City of Irvine shall receive an additional JEAP equal to the amount, if any, that the 955601.1 7 Jurisdictional SFF Revenue Figure for the City of Irvine, net of the JEAP payment calculated in Section 4.A(6), exceeds that year's corresponding annual Not-To- Exceed amount("NTE")as set forth in Section 4.6(2) below. (2) The NTE for Fiscal Year 2013/14 shall be the amount of base SFF revenue that the Authority received from properties located within the City of Irvine jurisdiction in the Fiscal Year 2012/13, which was $59,635,863, plus 3.5%. The NTE shall increase each fiscal year by 3.5%. The NTE for each fiscal year from 2013/14 to 2029/30 for the City of Irvine is therefore as follows: FY 2013/14 SFF Revenue NTE: $59,635,863 X 1.035=$61,723,118 FY 2014/15 SFF Revenue NTE: $61,723,118 X 1.035=$63,883,427 FY 2015/16 SFF Revenue NTE: $63,883,427 X 1.035=$66,119,347 FY 2016/17 SFF Revenue NTE: $66,119,347 X 1.035=$68,433,524 FY 2017/18 SFF Revenue NTE: $68,433,524 X 1.035=$70,828,697 FY 2018/19 SFF Revenue NTE: $70,828,697 X 1.035=$73,307,701 FY 2019120 SFF Revenue NTE: $73,307,701 X 1.035=$75,873,471 FY 2020/21 SFF Revenue NTE: $75,873,471 X 1.035=$78,529,042 FY 2021/22 SFF Revenue NTE: $78,529,042 X 1.035=$81,277,558 FY 2022/23 SFF Revenue NTE: $81,277,558 X 1.035=$84,122,273 FY 2023124 SFF Revenue NTE: $84,122,273 X 1.035=$87,066,553 FY 2024125 SFF Revenue NTE: $87,066,553 X 1.035=$90,113,882 FY 2025/26 SFF Revenue NTE: $90,113,882 X 1.035=$93,267,868 FY 2026127 SFF Revenue NTE: $93,267,868 X 1.035=$96,532,243 FY 2027/28 SFF Revenue NTE: $96,532,243 X 1.035=$99,910,872 FY 2028/29 SFF Revenue NTE: $99,910,872 X 1.035=$103,407,753 FY 2029/30 SFF Revenue NTE: $103,407,753 X 1.035=$107,027,024 (3) In any fiscal year in which the Jurisdictional SFF Revenue Figure for the City of Irvine, net of the JEAP calculated in Section 4.A(6), is greater than the NTE provided in Section 4.B.(2), the excess revenue shall be paid to the City of Irvine as an additional JEAP. 955601.1 8 (4) Payment of this additional JEAP shall be made by the Authority to the City of Irvine in two equal payments in December and April of each fiscal year, provided that the Authority has received its distribution of the SFF in such months. (5) Neither Cash Contract Cities nor SFF jurisdictions other than Irvine shall receive any additional JEAP as described in this Section 4.13., nor will they be required to make additional payments to the Authority due to these calculations or payments. Annual service charges for Cash Contract Cities shall not be increased as a result of the JEAPs or additional JEAPs paid pursuant to this Section 4. C. Sources of JEAP Funds; Remedies; Amendment. (1) Payments of JEAPs shall be made to the Over- Funded SFF jurisdictions from unrestricted revenues of the Authority (the "Unrestricted OCFA General Fund Revenues") provided that the use of said Unrestricted OCFA General Fund Revenues is not prohibited by any Federal or State law or regulation nor would the use violate the terms or restrictions contained in any grant or other agreement restricting the use of the designated revenue sources. For purposes of clarity, JEAPs shall be paid from the annual service charges paid by the Cash Contract Cities as well as from other non- property tax sources of unrestricted funds. SFF are restricted funds and shall not be used to pay JEAPs. No Cash Contract City annual service charges shall be increased to pay JEAPs. (2) If a legal challenge is brought challenging this Second Amendment, the JEAPs shall continue to be calculated as provided in this Second Amendment. The Authority shall open a separate account into which the JEAPs shall be deposited, which shall bear interest at the same rate as the Authority's other authorized investments. The Authority shall provide an 955601.1 9 accounting to the Over-Funded SFF Jurisdictions upon each JEAP deposit. The JEAPs so deposited into this account shall remain there until the resolution of the legal challenge. If this Second Amendment remains valid after the resolution of such legal challenge, all of the funds accumulated in such account shall be paid, with accrued interest, to the Over-Funded SFF Jurisdiction(s) and the Authority shall provide an accounting therefore. (3) The City of Irvine may, notwithstanding Article VII, Section 1 of the 1999 Amended Agreement as amended by the First Amendment and this Second Amendment, withdraw from the Authority by transmitting written notice of its withdrawal to the Clerk of the Authority. Such notice shall provide at least two years' notice of the withdrawal, but the notice period may be more than two years, at the City of Irvine's discretion. The withdrawal shall be effective upon the expiration of the notice period in the notice of withdrawal, although in no case may the City of Irvine withdraw before June 30, 2020. This withdrawal provision applies to the following situations only: (1) a final judgment is entered declaring this Second Amendment to be void or otherwise affects a material term of this Second Amendment and the time in which to appeal such final judgment has passed; (2) the members approve any modification to this Second Amendment which the City of Irvine does not vote to approve; (3) there is a change in state legislation which prevents or reduces the payment of JEAPs to the City of Irvine as prescribed by this Second Amendment; or (4) the Authority materially breaches this Second Amendment. This provision shall not be interpreted to limit the remedies otherwise available to the City of Irvine if the Authority otherwise fails to make payment of the JEAPs when it is authorized to do so under this Second Amendment. (4) This Second Amendment can only be amended if approved by two-thirds of the members of the Authority. 45560 L l 10 3. Article V11, Sections I.A. and B. are deleted in their entirety and replaced with the following: A. Term. Cities shall be members of the Authority for a 20-year term commencing July 1, 2010. For Structural Fire Fund cities, the initial 20-year term shall begin on July 1, 2010 and end on June 30, 2030. For a Cash Contract City, the first 20- year term shall begin on July 1, 2010, only upon the consent of such City. Cash contract Cities that do not give such approval by June 30, 2010 shall give notice of withdrawal to the Clerk of the Authority by June 30, 2010, to be effective July 1, 2010. Failure to provide such notice shall be deemed that City's consent to a 20-year term, beginning July 1, 2010 subject to the ability to withdraw after the first ten years as set forth in Section B. below. B. Subsequent Terms. Twenty-year membership terms shall automatically renew, on the same terms and conditions as the prior term, and with the same cap in effect in the last year of the prior term, except under the following circumstances: (1) Any City may give notice of withdrawal by transmitting written notice of such withdrawal to the Clerk of the Authority prior to July 1 of the second to last year of every ten-year interval of a twenty-year term (e.g., for the first ten-year interval, notice must be given by July 1, 2018 to withdraw by June 30, 2020). (2) Notwithstanding the preceding subsection (13)(1), in exchange for the JEAPs described in Article IV, Section 4, the City of Irvine shall not have the option to withdraw in 2020, except as provided in Article IV, Section 4(C)(3), or if the number of withdrawing Cash Contract Cities in 2020 reduces the unrestricted general fund revenues of the Authority to the point that the JEAPs can no longer be made. In the event that the number of withdrawing Cash Contract Cities in 2020 reduces the unrestricted general fund revenues of the Authority to the point that the JEAPs can no longer be made, the City of Irvine will be notified in writing by the Authority of this 955601.1 11 condition as soon after July 1, 2018 as practicable, and in no event later than January 1, 2019. In that event, the City of Irvine will be able to withdraw in 2020 by providing written notice of such withdrawal no later than July 1, 2019. For purposes of clarity, the City of Irvine shall have the option to withdraw in 2030 and every ten years thereafter by complying with the notice provisions in subsection (13)(1) above. 4. This Second Amendment amends, as set forth herein, the 1999 Amended Agreement and the First Amendment and except as specifically amended herein, the 1999 Amended Agreement and the First Amendment shall remain in full force and effect. To the extent there is any conflict between this Second Amendment and the 1999 Amended Agreement and First Amendment, the terms and conditions contained in this Second Amendment shall control. 955601.1 12 COUNTY OF ORANGE, a political subdivision of the State of California Dated: By: Shawn Nelson Chairman of its Board of Supervisors SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Susan Novak Clerk of the Board of Supervisors County of Orange, California NOTICE TO COUNTY OF ORANGE TO BE GIVEN TO: Michael B. Giancola County Executive Officer 10 Civic Center Plaza Santa Ana, CA 92701 APPROVED AS TO FORM: Nicholas S. Chrisos County Counsel By: Dated: [Signatures Continued on Page 14] The County of Orange has not approved the Second Amendment to the Amended Joint Powers Authority Agreement. Dated: April 9, 2014 95560111 13 CITY OF ALISO VIEJO Dated: By: John Whitman Interim City Manager ATTEST: Susan A. Ramos City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Aliso Viejo 12 Journey, Suite 100 Aliso Viejo, CA 92656-5335 Phone: (949) 425-2500 Fax: (949) 425-3899 APPROVED AS TO FORM: Best Best & Krieger LLP By: Scott C. Smith City Attorney [Signatures Continued on Page 15] The above reference agency rejected the Second Amendment to the Orange County Fire Authority Joint Powers Agreement. 955601.1 14 CITY OF BUENA PARK Dated: By: ayie B. Van erpool Ci anager � ATTEST: A pq/� J41f-- � yr W7y I r Shalice Tilton : City Clerk + IFOR� NOTICE TO CITY TO BE GIVEN TO: City Manager City of Buena Park 6650 Beach Blvd. Buena Park, CA 90620 Phone: (714) 562-3500 Fax: (714) 562-3599 APPROVED AS TO FORM: Richards Watson & Gershon By. Steve Dorsey City Attorney [Signatures Continued on Page 16] 955601.1 15 CITY OF CYP E Dated: ( i By: IL John horski City WAnager ATTEST: Denise Basham City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Cypress 5275 Orange Avenue Cypress, CA 90630 Phone: (714) 229-6688 Fax: (714) 229-0154 APPROVED AS TO FORM: Aleshire & Wynder LLP By: //0 1�)IAAI�� Bill nd r City Atto ey [Signatures Continued on Page 17] 955601.1 16 CITY F NA POINT Dated: De um-btr -I . ac ia) By: 1 oug s C. h tke s ity nag ki ATTEST: Katy . Wakd Ci lerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Dana Point 33282 Golden Lantern Dana Point, CA 92629 Phone: (949) 248-9890 Fax: (949) 248-9920 APPROVED AS TO FORM: Rutan & Tucker B ' Patrick noz City Attorney [Signatures Continued on Page 18] 17 CITY OF I E Dated: ✓ By: Sean Joyce City Manager ATTEST: ` Shade Apodaca ,- City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Irvine One Civic Center Plaza Irvine, CA 92606-5208 Phone: (949) 724-6249 Fax: (949) 724-6045 APPROVED AS TO FORM: Rutan &Tucker By: Todd Yffin City Attorney [Signatures Continued on Page 19] 955601 1 18 CITY OF LA PALMA Dated: / � � B Ellen Volmert City Manager ATTEST: 2<t,-� can a�� Laurie A. Murray City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of La Palma 7822 Walker Street La Palma, CA 90623 Phone: (714) 690-3333 Fax: (714) 523-7351 APPROVED AS TO FORM: RUTAN & TUCKER By: _ J e Kuperberg ity Attorney [Signatures Continued on Page 20] 955601.1 19 CITY OF LAQUNA HILL4, Dated: 0 0666& c-,-3) By: Br a E. Channing City Manager ATTEST- Pegg fnf City NOTICE TO CITY TO BE GIVEN TO: City Manager City of Laguna Hills 24035 El Toro Road Laguna Hills, CA 92653 Phone: (949) 707-2600 Fax: (949) 707-2614 APPROVED AS TO FORM: Woodruff, Spradlin & Smart By: /v /,q Gre ory E. Simonian City Attorney 20 CITY OF LAGUNA NIGUEL Dated: By: Rod Foster City Manager ATTEST: Pamela Lawrence Acting City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Laguna Niguel 30111 Crown Valley Parkway Laguna Niguel, CA 92677 Phone: (949) 362-4380 Fax: (949) 362-4340 APPROVED AS TO FORM: By: Terry Dixon City Attorney [Signatures Continued on Page 22] The above reference agency rejected the Second Amendment to the Orange County Fire Authority Joint Powers Agreement. 955601.1 21 CITY OF LAGUNA WOODS Dated: 1 al16Jl� By: C ns acon City Manager ATTEST: -xg�v-- Marc 156nohLie Deputy City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Laguna Woods 24264 El Toro Road Laguna Woods, CA 92637 Phone: (949) 639-0500 Fax: (949) 639-0591 APPROVED AS TO FORM: Rutan & Tucker By:�~ �' �� �J, avid osgrov City Attorney 955601.1 22 CITY OF LAKE FOREST Dated: YIV 0 a 6 / By: Robert C. Dunek City Manager ATTEST: Step Janie D. S;rith City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager 25550 Commercentre Drive City of Lake Forest Lake Forest, CA 92630 Phone: (949) 461-3400 Fax: (949) 461-3511 APPROVED AS TO FORM: Best Best& Krieg P By: c mith City Attorney [Signatures Continued on Page 24] 23 CITY OF LOS ALAMITOS Dated: l_ • ( �7 By: I Gre64 k6rduner Interim City Manager ATTEST: V d Wind Quintanar, C City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Los Alamitos 3191 Katella Avenue Los Alamitos, CA 90720 Phone: (562) 431-3538 Fax: (562) 493-1255 APPROVED AS TO FORM: Wallin, kres 7 Reisman & Kranitz 1 By: Cary S. eigman City orney [Signatures Continued on Page 25] 955601.1 24 CITY OF MISSION VIEJO Dated: b 3 B y,-�\\ Dennis Wilberg City Manager ATTEST: an Kareb Hamman City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Mission Viejo 25909 Pala, Suite 150 Mission Viejo, CA 92691 Phone: (949) 470-3000 Fax: (949) 859-1386 APPROVED AS TO FORM: Richa s Watson & Gershon B Bill Curley City Attorney [Signatures Continued on Page 26] 955601.1 25 CITY OF PLACENTIA Dated: 03/ 13/ —�� By: ' � oy L. Butzl ff Ci Administ at ATT Patrick J. Melia City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Placentia 401 E. Chapman Placentia, CA 92870 Phone: (714) 993-8117 Fax: (714)961-0283 APPROVED AS TO FORM: Andrew Arczyaski Law Of l s i By: Andrew Arczynski City Attorney [Signatures Continued on Page 27] 955601.1 26 CITY OF RANCHO SANTA MARGARITA Q�C4Dated: l 0 '�'l '1 _ By: J96nifer M. ervantez ity Manager ATTEST: r A� Molly McLaughl City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Rancho Santa Margarita 22112 El Paseo Rancho Santa Margarita, CA 92688 Phone: (949) 635-1800 Fax: (949) 635-1840 APPROVED AS TO FORM: Woodruff, Spradlin & Smart Greg Simonia City Attorney [Signatures Continued on Page 28] 955601.1 27 CITY OF SAN CLEMENTE Dated: //-/�'' /3 By: Pall Gudgeirsson City Manager ATTEST: J nne Baade ty Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of San Clemente 100 Avenida Presidio San Clemente, CA 92672 Phone: (949) 361-8322 Fax: (949) 361-8283 APPROVED AS TO FORM: Rutan & Tucker By: ' ` r Je rey Goldfarb City Attorney [Signatures Continued on Page 29] 955601.1 28 CITY OF SAN JUAN CAPISTRANO Dated: Akvirnkier 6 200 By: � - a"-'WtL Karen P. Brust City Manager ATTEST: gMa ri a Morr is U y Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Phone: (949) 443-6315 Fax: (949) 493-1053 APPROVED AS TO FORM: Rutan & Tucker By, _ for Hans Van Ligten City Attorney (Signatures Continued on Page 301 955601.1 29 CITY OF SANTA ANA Dated: —I© By: David Cavazos City Manager ATTEST: Maria Huizar City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Phone: (714) 647-5200 Fax: (714) 647-6956 APPROVED AS TO FORM: B . nia R'Tt'arvaTlio ity Attorney [Signatures Continued on Page 31] 955601.1 30 CITY OF SEAL BEACH Dated: October 28, 2013 By: QiY Ingram 17ity Manager ATTEST: Linda Devine City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Seal Beach 211 8t' Street Seal Beach, CA 90740 Phone: (562) 431-2527 Fax: (562) 431-4067 APPROVED AS TO FORM: Richards Watson & Gershon By: :;t� Quinn Barrow City Attorney [Signatures Continued on Page 32] 955601.1 31 CITY OF STANTON Dated: 1012*/Z or3 By: James ox City kfandaer A trio City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Stanton 7800 Katella Avenue Stanton, CA 90680 Phone: (714) 379-9222 Fax: (714) 890-1443 APPROVED AS TO FORM: Best, Best & Krieger By: -A Ma hew E. Richardson City Attorney [Signatures Continued on Page 33] 955601.1 32 CITY OF TUSTIN Dated: 1 By: J Mager r ty ATTEST: z/ haff p2d(er Erica Rabe City Clerk City Clerk Services Supervisor NOTICE TO CITY TO BE GIVEN TO: City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Phone: (714) 544-8890 Fax: (714) 832-0825 APPROVED AS TO FORM: Wood ff, Spradlin Smart By: David E. Kendig City Attorney [Signatures Continued on Page 341 955601.1 33 CITY OF VILLA PARK Dated: By: Jarad Hildenbrand City Manager ATTEST: Jarad Hildenbrand City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Villa Park 17855 Santiago Blvd. Villa Park, CA 92861 Phone: (714) 998-1500 Fax: (714) 998-1508 APPROVED AS TO FORM: Rutan & Tucker By: Todd Litfin City Attorney [Signatures Continued on Page 35] The above reference agency rejected the Second Amendment to the Orange County Fire Authority Joint Powers Agreement. 955601.1 34 CITY OF/VYESTMINSTE Dated: + By: Eddie Manfro City Manager ATTEST: �Uc Cc�L" Robin Roberts City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Westminster 8200 Westminster Boulevard Westminster, CA 92683 Phone: (714) 898-3311 Fax: (714) 373-4684 APPROVED AS TO FORM: Jo r R' hard J es ity Attorne Signatures Continued on Page 36] 955601.1 35 CITY OF YORBA LINDA Datedi October 16, 2013 By: Mark A. Pulone City Manager ATTEST: YY) � Ma Brown City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager City of Yorba Linda 4845 Casa Loma Avenue Yorba Linda, CA 92885-8714 Phone: (714) 961-7100 Fax: (714) 993-7530 APPROVED AS TO FORM: Rutan & Tucker By: /,a [ Todd Litfiff City Attorney 955601.1 36