- Oceana Community Services District Dianne Thompson, City Manager - City Arroyo Grande David FCFA General Counsel

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1 Attachment 1 Memorandum To: John Shoals, Board Chair Karen White, Board Vice Chair "~'.,.'"'" Harmon, Board Member Cc: From: Jim Copsey, Interim City Manager - of Grover R"''"" Paavo Ogren, - Oceana Community Services District Dianne Thompson, City Manager - City Arroyo Grande David FCFA General Counsel Stephen Lieberman, Fire I Executive Otfic1:r ~ Date: Subject: February 2016 Five Cities Fire Authority - Potential JPA Document Revis:ior At the containing 19, Board meeting, direction was provided to assemble binders documents for board and respective managers, mpmli,f>r< will present the adoplted sheets" to their councils/boards discussion and deliberation focused on no1'pnti~i revisions to existing Joint P111oh1Pr< A11thnri'h1 document, Based on current langu;ige in the agreement, please consider two points: Revisions to the Joint Powers Agreement are to be approved by the member communities, not the Five Fire Authority Board Revisions to the Joint Powers Agreement must approved unanimously by all three member communities in order to be implemented Should this discussion be placed on a future city/district agenda, staff will present to answer questions and to any needed additional information, * "Exhibit A" - Non-Binding Term Sheet This term sheet contains recommended considered "clean up" language, for consideration could " "Exhibit B" Non Binding Term Sheet This term sheet contains recommended items for consideration more strategic in nature including potential to the funding formula,

2 Staff Reports Staff reports from the January 15 and February 19, board meetings. JPA Document Joint Exercise of Powers Agreement - Executed June 7, 2010 Executed July 9, 2010 Agreement for Contract Administration Services - Arroyo Grande Executed July 13, 2010 Agreement for Contract Personnel - Arroyo Grande Executed July 13, 2010 General Counsel Services Agreement Executed December 17, 2010 Please contact me with any questions or if you would like additional information. slieberman@fivecitiesfire.org

3 Attachment 2 EXHIBIT A NON-BINDING TERM SHEET FOR CONSIDERATION OF FUTURE AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT The member agencies of the Five Cities Fire Authority on June 07, 2010 entered into a Joint Exercise of Powers Agreement, ("Agreement") to form the Authority. The Agreement for over five years has been the principal authority by which the organization has operated. The Board of the Authority has recommended the member agencies consider certain amendments to the Agreement. This Term Sheet ("the Term Sheet") contains the basic terms to be included in any future amendment to the Agreement. The Term Sheet is intended to function as a base for each agency's discussions, deliberations and direction to the Board as to the proposed changes or any modifications thereto. The proposed amendment to the Agreement is subject to the three member agencies concurring as to this Term Sheet or any approved modifications and unanimously approving a formal amendment to the Agreement. Upon finalization of an amendment, that will be submitted to the State of California, Secretary of State's Office. It is understood that this Term Sheet does not constitute a binding contract, and that the parties do not intend to be legally bound, unless and until a definitive amendment to the Agreement is presented to each member agency's governing body and is approved a executed by each agency. GENERAL RECOMMENDED TERMS FOR MODIFICATION: Section 4. D. (6) New Members Develop language that would define how additional members to the Authority can be added. Consideration should be given to whether the vote of the existing members must be unanimous or a simple majority vote for approval. Recommend development of process for adding additional members. Section 4. E. (7) Legal Counsel Currently under the Agreement, legal counsel of the City of Grover Beach is designated primary legal counsel for the Authority. The proposed modification is to amend the Agreement to authorizelegal counsel for the Authority be hired or fired by the Board. The intent is to allow the Board complete control over the hiring of legal counsel for the Authority. Section 5. B. Collection of Fees This section of the Agreement empowers the Authority to set fees and collect the revenue for services provided by the Authority. Clean up language is being proposed to clarify that any fees set and collected for services performed by the Authority would be retained by the Authority for those services rendered not by the member agencies. Section 8. A. Building Ownership

4 This section does not grant any ownership of facilities to the Authority unless acquired by the Authority subsequent to the establishment of the Agreement. Currently, each member agency owns each facility occupied by the Authority. This amendment would define within this section that the Authority shall occupy the subject facilities without incurring any rent or utility payments. Section 8. B. (2) Major Pieces of Apparatus and Capital Equipment This section allows for the Authority to replace major pieces of equipment but suggest that is tied to the budget process. This amendment would develop language to clarify that the Authority can purchase any additional major pieces of apparatus or capital equipment anytime during the fiscal year and not just at the beginning of the fiscal year when the budget is prepared.

5 Attachment 3 EXHIBIT B NON-BINDING TERM SHEET FOR CONSIDERATION OF FUTURE AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT The member agencies of the Five Cities Fire Authority on June 07, 2010 entered into a Joint Exercise of Powers Agreement, ("Agreement") to form the Authority. The Agreement for over five years has been the principal authority by which the organization has operated. The Board of the Authority has recommended the member agencies consider certain amendments to the Agreement. This Term Sheet ("the Term Sheet") contains the basic terms to be included in any future amendment to the Agreement. The Term Sheet is intended to function as a base for each agency's discussions, deliberations and direction to the Board as to the proposed changes or any modifications thereto. The proposed amendment to the Agreement is subject to the three member agencies concurring as to this Term Sheet or any approved modifications and unanimously approving a formal amendment to the Agreement. Upon finalization of an amendment, that will be submitted to the State of California, Secretary of State's Office. It is understood that this Term Sheet does not constitute a binding contract, and that the parties do not intend to be legally bound, unless and until a definitive amendment to the Agreement is presented to each member agency's governing body and is approved a executed by each agency. GENERAL RECOMMENDED TERMS FOR MODIFICATION: Section 9. Costs and Administration This proposed amendment considers changes to the contract of services between the Authority and the cities of Arroyo Grande and Grover Beach. This proposed change to this section of the Agreement would suggest updating the subject agreements to make them current with existing practices and to consider the Authority assuming some of the contract services now provided by the subject member agencies. This has to do with the "strategic" discussion point focused on making the Authority more independent from the member agencies. Section 9. C. Invoicing and Payments The Agreement currently requires the City of Arroyo Grande to bill the member agencies on a quarterly basis for their funding share of the Authority's on going costs as defined in Exhibit "B" of the Agreement. A component of the funding formula is based upon population. There appears no widely accepted methodology to calculate population for the Oceano CSD during non-census years. The elimination of this formula component is recommended. Exhibit B. 3. Funding Formula This allocation, reflecting 25% of funding, is a fixed amount based on staffing levels by each member community. While this perhaps assisted in the development/launch of the

6 Authority, it now provides an inconsistent staffing level which is impacting service delivery (Arroyo Grande and Grover Beach each provide: (1) Captain, (1) Engineer, (1) Reserve Firefighter per shift while Oceana provides: (1) Captain, ( 1) Reserve Firefighter. It is recommended that all stations (who respond into neighboring communities) be staffed with a total of three (3) personnel per shift. This component of the funding formula should be evaluated for potential deletion. Exhibit B. Equal Split in Funding Formula It has been proposed for consideration to eliminate the existing funding formula and consider an equal split of the fixed administrative costs for the Authority. This amendment to the Agreement would eliminate the current funding formula and each member agency would bear an equal distribution of the on going costs of the Authority.