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HomeMy WebLinkAbout03.A- In-Lieu Vehicle License Fee Executed Among San Bernardino County Fire Protection District and San Bernardino County 3.A RESOLUTION (ID # 4331) DOC ID: 4331 B CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Agreement/Contract From: Mark Scott M/CC Meeting Date: 02/29/2016 Prepared by: Georgeann "Gigi" Hanna, Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the Execution of an in Lieu Vehicle License Fee (VLF Swap) Revenue Sharing Agreement Among the City of San Bernardino, the County of San Bernardino, and the San Bernardino County Fire Protection District for the Purposes of Funding the Annexation of Fire and Related Services. (#4331) Current Business Registration Certificate: Not Applicable Account Budgeted Amount: <<Insert Amount>> Account No. <<Insert Account No.>> Account Description: <<Insert Account Description>> Balance as of: <<Insert Date>> Balance after approval of this item: <<Insert Amount>> MetoaR: Waive reading; and adopt the Resolution. Rprnmmnndatinn Adopt Resolution approving the Vehicle License Fee (VLF) Revenue Sharing Agreement between the City and the San Bernardino County Fire Protection District for the purposes of funding the annexation of fire and related services. FxPCUtivP Sijmmary Approval of this agreement is a key condition of approval for completing annexation into the San Bernardino County Fire Protection District (SBCFPD). The agreement will assign 35% of the City's property tax revenue attributable to the VLF revenue swap effectuated by the State of California in 2004 to the SBCFPD to pay for fire and related services. A complication of this transaction is the fact that there is a property tax sharing agreement for some of these revenues between the City and the Inland Valley Development Agency (IVDA); the IVDA has pledged this revenue to certain bonded indebtedness. This required a temporary supplemental increase to the swap amount so taxes pledged under the IDVA bond can continue to flow to the City and then to the IVDA. Once the bonds and related obligations are fully paid the supplemental transfer related to the IVDA will be terminated. This transfer of tax revenues is required as a condition of annexation into SBCFPD, 3.A 4331 under California law and pursuant to the determinations of the Local Agency Formation Commission for San Bernardino (LAFCO). This annexation is important to the City because it is a key component of implementing the bankruptcy Recovery Plan adopted by the City Council in May 2015. It provides a means to improve the City's net economic position by $7 to $8 million per year, while improving fire service delivery to residents and property owners. Such funding is critical for the City to use in addressing other service deficiencies which currently exist and inhibit economic development and revenue growth such as police protection, roads, parks, street lighting and many other municipal needs. VLF Swap Revenue Sharing Agreement Developing alternative, less expensive, approaches for delivering fire and emergency medical services is a key component of the Bankruptcy Recovery Plan approved by Council on May 18, 2015. The costs of maintaining a stand-alone City fire department have become a substantial fiscal burden for the City as it seeks to attain stability and implement a plan for exiting bankruptcy. After a professional and thorough evaluation of available options, the City Council approved the filing of an application for annexation into the San Bernardino County Fire Protection District on August 24, 2015. Shortly thereafter the County joined in this application. After an objective and independent evaluation process LAFCO acted to approve the annexation on January 27, 2016. In making this decision LAFCO was required to make a number of independent assessments to ensure that the annexation will result in the maintenance of satisfactory (or improved) services and that the move is fiscally sustainable and in the best interests of the City, the Fire Protection District, and the public. The full LAFCO staff report and the SBCFPD Service Plan which delve deeply into these issues are attached to this staff report as important backup information. Many cities comparable to San Bernardino are served by large regional fire service providers like SBCFPD. Examples in Southern California include Moreno Valley, Fontana, Santa Ana, Lancaster, Palmdale, Santa Clarita, Pomona, Irvine and Thousand Oaks. It is a proven way to reduce costs through economies of scale, while delivering a level of service which would be otherwise not be attainable. Such is the case for San Bernardino. By annexing to the San Bernardino Fire Protection District the City will be able to take advantage of existing County stations to serve portions of the City which are closer to these stations than existing City fire stations. Just as importantly the City will be able to share and pool costs for a large number of administrative, support and specialized services such as management, dispatch, purchasing, fire prevention, EMS management, hazardous materials response, search and rescue and wildland fire response. Finally, the County Service Plan documents that necessary investments will be made in equipment and facilities, necessary investments .., . . - Pnrlrof Pn R 3.A 4331 which the City has been unable to make. In terms o f funding, under the annexation a pp roach the City essentially transfers responsibility for fire and EMS service delivery to the County Fire District. Using the established LAFCO process, a property tax transfer is accomplished based on the service level agreed upon. The City will then have no further responsibility for funding fire services. Since costs are less than those needed to operate an independent fire department, the City will be able to preserve property tax dollars for other City services. County Fire will have the obligation for all future costs including station and equipment replacement. Unlike a contract approach, County Fire will have a direct interest in the City's being successful economically, because their budget will directly tie back to property tax revenue. A substantial "wrinkle" developed as this annexation was being processed in relation to property tax revenues. This stems from the fact that San Bernardino has a relatively low level of basic property tax revenues, even though it has a fairly good share of the base 1% property tax (18%). This is due to the fact that much of the property within the City was located within the boundaries of the old redevelopment area, which meant more taxes flowed the Agency and less to the City and other taxing entities. Due to this San Bernardino actually has more property tax revenues allocated to the City pursuant to what is known as the VLF for property tax swap of 2004, than in base property taxes - an unusual situation, which gives rise to this agreement. Essentially under the 2004 State Budget Act the State eliminated VLF funds which had historically flowed to cities and counties as a State subvention, and replaced this revenue with a portion of the property tax revenues which had been allocated to the Educational Revenue Augmentation Fund (ERAF). The State backfilled school ERAF funding from the State General Fund. While property tax in lieu of VLF is property tax revenue, it is derived from a VLF swap formula which did not include special districts, such as SBCFPD. Moreover, the City does not have enough general ad-valorem property tax to fund fire services, some of the City's property tax revenues with roots in the property tax in lieu of VLF source. LAFCO staff also had a concern that some day the property tax in lieu of VLF could be altered by the State. While this is unlikely under the current State Constitution, it is theoretically possible. In response to these concerns LAFCO added the following condition to the annexation: • Prior to the issuance of the Certificate of Completion for the reorganization to include annexation, pursuant to the provisions outlined in Government Code Section 56886 (i) the Commission requires that the City of San Bernardino, County of San Bernardino, and San Bernardino County Fire Protection District enter into a contract which requires the Auditor/Controller/Treasurer/Tax Collector for San Bernardino County to direct that 35% of the City's total property taxes in lieu of Vehicle License Fees be transferred to the Valley Service Zone of SBCFPD, Successor District, to fund the provision of fire protection and emergency medical response services. This . . -,-_ ___ ._ . . . _ _ . . _ I Dmrrlrn+ Dn 7 4331 contract shall be perpetual and address the needs for allocation of funds to replace the property tax in-lieu of Motor Vehicle License fees should the State of California make changes to this revenue stream legislatively. This amount is in addition to the amounts determined pursuant to the provisions of Revenue and Taxation Code Section 99 for LAFCO 3198. Also, during the annexation analysis it was learned that a pledge of some property tax revenues would prevent a revenue swap on certain portions of property within City limits until certain IVDA bonds are paid off. State law provides that LAFCO must make a determination that no bond or contractual obligations are impaired by a reorganization. Since the City has agreed that certain property tax revenues received by IDVA under a joint powers agreement are pledged to the payment of debt associated with economic development at the former Norton Air Force Base, this determination could not be made because a straight percentage transfer on all property within the City would have interfered with the IVDA bond pledge. Therefore LAFCO added another condition to address this issue, which reads as follows: • Prior to the issuance of the Certificate of Completion for the reorganization to include annexation, pursuant to the provisions outlined in Government Code Section 56886 (1), (o) and (s), the Commission requires that the City of San Bernardino, County of San Bernardino, and San Bernardino County Fire Protection District enter into a contract which directs the Auditor/Controller/Treasurer/Tax Collector for San Bernardino County to provide for the calculation of property tax revenues to be transferred from the City's proceeds under the property tax in lieu of Motor Vehicle License Fees to the Valley Service Zone of SBCFPD, successor agency, as a replacement for the exclusion of the Inland Valley Development Authority (IVDA) territory within the City of San Bernardino from the property tax transfer process in the manner presented below. This term and condition shall assure that there is no impairment of the Inland Valley Development Agency Tax Allocation Refunding Bonds Series 2014A and Successor Agency to the Inland Valley Development Agency Tax Allocation Refunding Bonds Series 2014B bond obligations: o The calculation shall use the following amounts to determine the transfer from proceeds of property tax swap in lieu of Motor Vehicle License Fees amount: (a) base property tax within the affected Tax Rate Areas (TRAs) within IVDA a part of the corporate limits of the City of San Bernardino, (b) pass through payments, negotiated or statutory within the defined TRAs; (c) residual distribution as a result of redevelopment dissolution within the defined TRAs; and (d) any other property tax proceeds that would have come to the Valley Service Zone except for the exclusion of the IVDA area of the City of San Bernardino-, and, o The methodology outlined above shall be permanent and may only be amended after the conclusion of the revenue bond pledge on or after June 3.A 4331 30, 2035 or if said revenue bond pledge is refunded or refinanced by mutual agreement between the County of San Bernardino, the San Bernardino County Fire Protection District and the City of San Bernardino. The attached agreement has been drafted by the County with input from IVDA and the City in order to comply with these conditions of approval. Most importantly the agreement is designed to ensure that satisfactory and sustainable fire services can be funded via this dedicated revenue source in perpetuity. One of the input areas from the City concerned property tax variation stemming from the continuing wind-down of the redevelopment agency. The City's specific concern was the fact that as property comes back on the regular property tax rolls (absent the tax increment calculation associated with redevelopment) property taxes to SBCFPD and the City will increase in something of a one-time phenomenon. The County had a different but similar concern associated with the termination of CFD 1033, which will decrease revenues to SBCFPD. To address these concerns the agreement includes a renegotiation provision to allow a periodic "true-up" relative to the documented Service Plan negotiated by SBCFPD and the City. This is a relatively unique provision not generally seen in tax transfer agreements, but the County and the City both agreed that these known future events were an appropriate basis to trigger discussions, and both agreed that consideration of either a one-time or on-going true-up was equitable and fair for both parties. In terms of the overall fiscal shift in moving to SBCFPD from independent fire service delivery, the LAFCO fiscal analysis shows that total City expenses for the fire department have ranged from $29.4 to $37.0 million during Fiscal Years 2011 through 2015. Importantly in the years in which expenditures have been toward the lower end of this spectrum it has been the result of cut-backs in service and deferred funding for equipment and facilities. The General Fund (general purpose tax) requirement has ranged from $23.5 to $31.5 million. The City receives approximately $29.3 million in property taxes (ad valorem, in lieu and other) annually. From this one can easily conclude that operating the City fire department in a financially sustainable fashion will easily take all the property tax the City receives. Under the LAFCO projections in the first year of annexation, the City will transfer $10.5 million in base ad-valorem property tax to County Fire, plus another $11.1 million in property tax in lieu of VLF, for a total of $21.6 million. This reflects a significant advantage to the City in that $7 to $8 million in general tax proceeds will be available for other critical needs, including certain legacy costs such as workers compensation and unfunded pension liabilities the City will need to retire over time. The advantages of the County proposal from an economic standpoint are additional dedicated revenues from a parcel tax which is part of the proposal, lower salary and benefit costs (largely due to economies of scale) and full funding for necessary overhead, equipment replacement and facility maintenance. In addition the County has a full range of specialized services which will be available to the City on a routine basis. Il l.I-Ali - Packet Pa. 9 3.A 4331 In addition, Urban Futures has determined that overall the City will have lower recession induced volatility from the intersection of largely fixed / moderately growing fire expenses and property tax impacts from periodic economic downturns. This will make it easier for the City to maintain and sustain adequate reserve balances. From a service standpoint the major advantages of annexation include transition from a service delivery model which outside experts termed "severely stressed" in 2014 to a sustainable paradigm. In addition, some areas of the City will benefit from improved response due to direct response from County stations on City borders, and the entire City will benefit from improved response due to affiliation with the regional CONFIRE dispatch system, which saves a step in the call handling process. Finally, all 140 personnel associated with fire service delivery, both sworn and non- sworn, will have the opportunity to transition to employment with the County. And as a result of the settlement of substantial litigation with the City firefighters union City legal costs will diminish. All this is of course contingent upon the annexation which is contingent upon approval of this agreement. Conclusion As described above annexation to the County Fire Protection District is the best option for the City from a service delivery and efficiency standpoint. It is recommended Council adopt the attached resolution authorizing approval of the Property Tax In Lieu of VLF Swap Agreement, as required under the annexation conditions of approval. Attachments: LAFCO Staff Report Service Plan Property Tax In Lieu of VLF Swap Agreement Resolution Approving Agreement City Attorney Review: Supporting Documents: Reso to Approve VLF Agreement (DOCX) agrmt 4331 (PDF) Property Tax Sharing Agreement V4 (DOCX) Plan of Service (PDF) LAFCO Staff Report(PDF) I I I I 3.A.a RESOLUTION NO. 2016 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 2 BERNARDINO AUTHORIZING THE EXECUTION OF AN IN LIEU VEHICLE 3 LICENSE FEE (VLF SWAP) REVENUE SHARING AGREEMENT AMONG THE g CITY OF SAN BERNARDINO,THE COUNTY OF SAN BERNARDINO, AND THE x 4 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT FOR THE PURPOSES OF FUNDING THE ANNEXATION OF FIRE AND RELATED SERVICES a a� 5 L WHEREAS, on August 24, 2015, the Mayor and Common Council of the City of San U. 6 3 Bernardino (City) adopted Resolution No. 2015-195, authorizing the filing of an application to a 2 the Local Agency Formation Commission(LAFCO)to initiate proceedings for a sphere of 0 8 influence amendment(Amendment) of the sphere of influence of the San Bernardino County a 9 Fire Protection District (SBCFPD)to include the City, and a reorganization(Reorganization) to 10 include annexation of all territory within the City to the SBCFPD, its Valley Service Zone, and L a 11 its Service Zone FP-5 for the purposes of fire protection and emergency medical services; and 12 WHEREAS, on September 15, 2015, the SBCFPD Board of Directors adopted L 13 Resolution No. 2015-183, requesting LAFCO to initiate proceedings for LAFCO approval of d the Amendment and Reorganization; and 14 WHEREAS, the City and SBCFPD thereafter applied to LAFCO to initiate proceedings M 15 for approval of the Amendment and Reorganization; and 16 WHEREAS, on January 27, 2015, LAFCO adopted LAFCO Resolutions Nos. 3211 and I 17 0 18 3212, approving the initiation of such proceedings; and J 19 WHEREAS, section 99 of the Revenue and Taxation Code of the State of California a� 0 requires that parties seeking LAFCO approval of a proposed annexation such as the a 20 a 21 Reorganization adopt resolutions for the reallocation of property tax revenues between the c parties to adjust the revenues to reflect the expansion of the service area of the jurisdiction that X 22 will be required to provide expanded services as a result of the annexation; and 23 WHEREAS,LAFCO Resolution No. 3211 requires that the City and SBCFPD enter 24 into an agreement for such reallocation of property tax revenues; and a 25 1 Pw-kat Pn 11 3 WHEREAS, it has been determined by the City and SBCFPD that the City's property 1 tax revenues are insufficient to fund the services to be provided within the City by SBCFPD as a 2 result of the Amendment and Reorganization; 'E.2 3 WHEREAS, in addition to base property tax revenue, the City also receives property x a� 4 tax revenue in lieu of vehicle license fee revenue (VLF Swap Revenue)to compensate for the = a 5 State of California's reduction in the vehicle license fee revenue received by the City as a result U_ 6 of decreasing the vehicle license fee; and 3 7 WHEREAS, to compensate for the insufficiency of the City's property tax revenues to 8 fund SBCFPD's services, the City and SBCFPD have agreed that in addition to the City's N a 9 property tax revenues, the City will transfer to SBCFPD thirty-five percent (35%) of the City's VLF Swap Revenue; and 10 WHEREAS, the City is a member of the Inland Valley Development Agency (IVDA), a 11 as joint powers authority formed pursuant to an Amended Joint Exercise of Powers Agreement 12 (Inland Valley Development Agency), dated as of February 12, 1990, by and among the Cities a� 13 of San Bernardino, Colton, and Loma Linda and the County of San Bernardino, to pursue d 14 economic development within an area of San Bernardino County that includes a portion of the M 15 City; and 16 WHEREAS, in 2014, IVDA and the Successor Agency to the IVDA Redevelopment E 17 Agency (IVDA Successor Agency)jointly issued their Tax Allocation Refunding Bonds, Series L a� 2014A and 2014B (IVDA Bonds), and in connection therewith executed an Indenture of Trust Q 1s U_ J 19 dated May 1, 2014 (IVDA Bond Indenture) with U.S. Bank National Association, as trustee; > 0 and a 20 a- WHEREAS, pursuant to Section 5.01 of the IVDA Bond Indenture, IVDA and the c 21 IVDA Successor Agency pledged as security for the payment of the IVDA Bonds the property 22 tax revenue from parcels within the IVDA boundaries (IVDA Tax Revenue); and 23 WHEREAS, pursuant to the terms of the February 12, 1990 Amended Joint Exercise of 24 Powers Agreement, the City is entitled to receive a portion of the IVDA Tax Revenue from a 25 parcels within the City (City's IVDA Tax Revenue); and 2 3.A.a WHEREAS, transfer of the City's IVDA Tax Revenue to SBCFPD in connection with 1 the Reorganization could impair the pledge of the IVDA Tax Revenue as security for the 2 payment of the IVDA Bonds, and violate the terms of the IVDA Bond Indenture; and = 0 3 WHEREAS, to avoid any such impairment, the City and SBCFPD have agreed that x d 4 until the IVDA Bonds, or any related obligations under the IVDA Bond Indenture that may be = a d 5 impaired by the transfer of the City's IVDA Tax Revenue to SBCFPD, are retired or 6 restructured so that such impairment cannot occur, the City's IVDA Tax Revenue will not be 3 7 transferred to SBCFPD; and 2 U 8 WHEREAS, to compensate for the temporary exclusion of the City's IVDA Tax y Q 9 Revenue from the tax revenue to be transferred to SBCFPD, the City and SBCFPD have agreed that while the exclusion is in effect, the City will transfer to SBCFPD, in addition to the thirty- 10 five percent (35%) of the City's VLF Swap Revenue to be permanently transferred to SBCFPD, Q 11 a� an amount of the City's VLF Swap Revenue that is equal to the City's IVDA Tax Revenue; and 12 C WHEREAS,the City and SBCFPD have incorporated all of the terms of their 13 agreement regarding the transfer of property tax revenue in connection with the Amendment a� 14 and Reorganization into an"In Lieu Vehicle License Fee (VLF Swap) Revenue Sharing T 15 Agreement Among the City of San Bernardino, the County of San Bernardino, and the San 16 Bernardino County Fire Protection District for the purposes of funding the annexation of fire E 17 and related services" (Revenue Sharing Agreement); and i 18 WHEREAS, LAFCO's environmental consultant has concluded that the Amendment U. J 19 and Reorganization are exempt from the California Environmental Quality Act(CEQA) under Q Section 15061(b)(3) of the State CEQA Guidelines (Cal. Code Regs. tit. 14, § 15061)because o a 20 there is no possibility that they may have a significant effect on the environment. o 21 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 22 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: d 23 SECTION 1. The foregoing recitals are true and correct and are made a substantive 24 Part of this Resolution. a .. 25 \..r 3 Dftn4n+D- V% 3.A.a F � SECTION 2. The Revenue Sharing Agreement, a true and correct copy of which is attached to this Resolution as Exhibit A, accurately sets forth the agreement of the City and SBCFPD regarding the allocation of property tax revenue and VLF Swap revenue between them o X 4 in connection with the Amendment and Reorganization, and the terms of the Revenue Sharing a Agreement are incorporated by reference and made a substantive part of this Resolution. - LL 6 SECTION 3. The City agrees to accept the exchange of property tax revenues provided 3 a� 7 for in the Revenue Sharing Agreement. U O fp SECTION 4. In compliance with the Revenue Sharing Agreement,upon the Q 9 completion of the Amendment and Reorganization and the commencement of SBCFPD's � 10 provision of services to the City,the City shall cause to be transferred to SBCFPD all of the a 11 City's property tax revenue except as stated in Section 5 of this Resolution,together with thirty- N 12 five percent(35%) of the City's VLF Swap Revenue and the additional amount of the City's L C 13 VLF Swap Revenue described in Section 5 of this Resolution. as SECTION 5. Until the IVDA Bonds, or any related obligations under the IVDA Bond 14 Indenture that may be impaired by the transfer of the City's IVDA Tax Revenue to SBCFPD, M 15 M are retired or restructured so that such impairment cannot occur,the City's IVDA Tax Revenue 16 _ will not be transferred to SBCFPD,but instead an amount of the City's VLF Swap Revenue E equal to the City's IVDA Tax Revenue will be transferred to SBCFPD. a, a 18 SECTION 6. When the IVDA Bonds, or any related obligations under the IVDA Bond d Indenture that may be impaired by the transfer of the City's IVDA Tax Revenue to SBCFPD, o a o a are retired or restructured so that such impairment cannot occur,the City shall cause to be e 21 0 transferred to SBCFPD all of the City's property tax revenue, including the City's IVDA Tax 27 Revenue, and this transfer shall continue permanently unless otherwise mutually agreed by the 23 E City and SBCFPD. 24 25 SECTION 7. The City Manager is authorized and directed to execute on behalf of the 4 Parka+Pn 1d 3.A.a'' City the Revenue Sharing Agreement, a copy of which is attached to this Resolution as Exhibit 1 A and incorporated herein by reference, and to execute such additional documents and take such 2 other actions as may be needed for the City to comply with the terms of the Revenue Sharing = 3 0 Agreement, including but not limited to agreeing on behalf of the City to ministerial revisions or x a� 4 other revisions to the Revenue Sharing Agreement that are necessary to give effect to the intent Q W 5 of the parties to the Agreement and that do not materially affect the interests of the City. U- 6 SECTION 8. The Revenue Sharing Agreement is exempt from CEQA because there is 3 7 no possibility that its performance may have a significant effect on the environment. g SECTION 9. This Resolution shall take effect immediately upon its adoption. N Q 9 E 10 L L 12 13 a� 14 T M 15 r 16 E 17 L 18 /// U- J 19 /// > O 20 Q O 21 y 22 c as 23 E R +r 24 Q 25 5 3.A.a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 1 BERNARDINO AUTHORIZING THE EXECUTION OF AN IN LIEU VEHICLE 2 LICENSE FEE (VLF SWAP) REVENUE SHARING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO COUNTY FIRE 3 PROTECTION DISTRICT FOR THE PURPOSES OF FUNDING THE ANNEXATION o OF FIRE AND RELATED SERVICES x a� 4 = I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Q 5 L Common Council of the City of San Bernardino at a meeting thereof, 6 3 held on the day of , 2016, by the following vote, to wit: 7 Council Members: AYES NAYS ABSTAIN ABSENT 0 g N a 9 MARQUEZ = a� E 10 BARRIOS L s a 11 VALDIVIA 1 = 12 SHORETT 13 NICKEL = a� 14 JOHNSON M 15 MULVIHILL cl 16 E 17 18 Georgeann Hanna, CMC, City Clerk J 19 The foregoing resolution is hereby approved this day of , 2016. 0 a 20 Q- Q 0 21 0 R. Carey Davis, Mayor 22 City of San Bernardino Approved as to form: 23 Gary D. Saenz, City Attorney = 24 By: Q 25 6 3.A.b In Lieu Vehicle License Fee (VLF Swap) Revenue Sharing Agreement Among the City of San Bernardino,the County of San Bernardino,and the San Bernardino County Fire Protection District for the purposes of funding the annexation of fire and related services WHEREAS, the City of San Bernardino (City)and the San Bernardino County Fire Protection District (SBCFPD) have jointly initiated an application to the Local Agency Formation Commission (LAFCO)for reorganization to annex the area within the City into the SBCFPD;and 0 WHEREAS, the City's share of property tax, in its entirety, will ultimately be transferred to SBCFPD as x part of this reorganization by adoption of a property tax transfer resolution approved by the County c Board of Supervisors as part of the LAFCO reorganization process; and Q m L WHEREAS,the City's share of property tax to be transferred is insufficient to fund the costs of services to U. L be provided by the SBCFPD; and 3 m WHEREAS, as a term and condition of annexation the City shall permanently transfer a percentage of its R VLF Swap revenue, in an amount defined in this Agreement,to the SBCFPD to address the insufficiency 0 of property tax revenues to fund services; and c WHEREAS,the City is a member of the Inland Valley Development Agency, a joint powers authority E organized and existing under the laws of the State of California and a federal base reuse authority (IVDA), pursuant to the Amended Joint Exercise of Powers Agreement dated as of February 12, 1990 Q (JPA Agreement); and N _ L WHEREAS, pursuant to the redevelopment plan and the JPA Agreement there is a sharing of property � tax revenue between the City and IVDA for parcels within the IVDA boundaries; and _ m WHEREAS, IVDA also has a separate public agency as the Successor Agency to the IVDA Redevelopment Agency; and M M WHEREAS,on or about May 15, 2014, IVDA issued its Successor Agency to the Inland Valley e1 Development Agency Tax Allocation Refunding Bonds, Series 2014A and Successor Agency to the Inland M Valley Development Agency Tax Allocation Refunding Bonds, Series 2014B(together,the IVDA Bonds) pursuant to an Indenture of Trust, dated as of May 1, 2014(Bond Indenture) by and between IVDA as E joint powers authority in its own capacity and as Successor Agency(together, the Issuer) and U.S. Bank National Association, or any other association or corporation which may at any time be substituted in its place as trustee; and E WHEREAS, Issuer has pledged the tax revenues it receives pursuant to the redevelopment plan and the Q JPA Agreement (Tax Revenues as defined in the Bond Indenture)to the repayment of the IVDA Bonds and related obligations under the Bond Indenture; and WHEREAS, the pledge of Tax Revenues to holders of the IVDA Bonds and related obligations under the Bond Indenture could be impaired by a transfer of property tax within the IVDA boundaries; and 1 WHEREAS,to avoid such impairment of IVDA's obligation to holders of the IVDA Bonds and other related obligations under the Bond Indenture,the County's Property Tax Transfer Resolution will delay the transfer of property tax within the IVDA boundaries from the City to the SBCFPD; and WHEREAS, an agreement between the City and the SBCFPD is necessary to provide a backfill of the losses to the SBCFPD as a result of the delay in transferring property tax within the IVDA boundaries with an equivalent supplemental amount of VLF Swap revenue, in addition to the permanent percentage of VLF Swap revenue transfer; and c ea WHEREAS,there is no intent to adversely impact the pledge of revenues or impair the pledge of the revenue IVDA receives pursuant to the redevelopment plan and the JPA Agreement to the IVDA Bonds = a and related obligations under the Bond Indenture and security of the bondholders of the IVDA Bonds; and u_ .3 WHEREAS, upon full payment of all IVDA Bonds and their related obligations under the Bond Indenture a or the issuance of bonds issued to refund the IVDA Bonds that recharacterizes the pledge so as to allow for the transfer of property tax without concern of impairment, the City's remaining share of property N tax, in its entirety, will be transferred to the SBCFPD and the supplemental transfer of VLF Swap revenue a will terminate; and E m WHEREAS, the City has obligations to IVDA pursuant to the JPA Agreement related to revenue sharing that are independent of the bond impairment concerns; and Q ,0) WHEREAS,the reorganization of services between the City and SBCFPD is not intended to financially c affect IVDA, resulting in the need for an agreement that the SBCFPD will fulfill the property tax revenue H sharing requirements to IVDA relating to those parcels within the IVDA boundaries, c m NOW, THEREFORE, the City and the SBCFPD hereby agree as follows: Section 1. Incorporation of Recitals. The recitals set forth above are true and correct and are M M incorporated herein. 7t- Section I M 2. Definitions M Z (a) Agreement: This agreement L cc (b) Initial Allocation Period: The Initial Allocation Period will commence on the effective date of the reorganization of services between the City and the SBDFPD. The Initial Allocation Period will °' E stay in effect for the entire period during which the IVDA Bonds or related obligations under the v �a Bond Indenture are outstanding that may be impaired by the transfer of property tax revenue Q from the City to the SBCFPD within the IVDA boundaries. The Initial Allocation Period shall end at the earlier of: a. Notification by the IVDA of the issuance of bonds to refund the IVDA Bonds that recharacterizes the pledge so as to allow for the transfer of property tax without concern of impairment; or. 2 b. The final maturity of the IVDA Bonds and the satisfaction of any related obligations under the Bond Indenture which may have survived the maturity of the IVDA Bonds. (c) Permanent Allocation Period:The period immediately following the Initial Allocation Period. There is no termination date of the Permanent Allocation Period. (d) Property Tax Transfer Resolution: The County Board of Supervisors resolutions, or amended resolutions, transferring property tax in two phases,the Initial Allocation Period and the Permanent Allocation Period, from the City to the SBCFPD adopted as part of the reorganization c of services between the City and SBCFPD. C (e) VLF Swap Percentage: The percentage of VLF Swap revenue attributable to the City that m pursuant to this Agreement shall be assigned to SBCFPD in perpetuity. The amount of the VLF c Swap Percentage is 35%,to be allocated 94%to the Valley Service Zone and 5%to m L Administration. U- (f) VLF Swap Supplemental Amount: The VLF Swap Supplemental Amount shall be equal to the 3 amount of total property tax revenue not transferred to SBCFPD as a result of the delay in transferring the City's share of property tax within the IVDA boundaries during the Initial Allocation Period, The VLF Swap Supplemental Amount shall be allocated 94%to the Valley N Service Zone and 5%to Administration. a _ Section 3. Initial Allocation Period. During the Initial Allocation Period,the San Bernardino County E m Auditor-Controller/Treasurer/Tax Collector(ATC)shall calculate the VLF Swap allocation in accordance as with governing law, currently Revenue and Taxation Code section 97.70, and shall distribute funds in the a 2. amount calculated to the SBCFPD at such time as the funds would have been distributed to the City,as N follows: _ �o L H (a) VLF Swap Percentage, as defined in the Agreement; plus (b) VLF Swap Supplemental Amount, as defined in the Agreement; plus m (c) All of the City's property tax revenue except property tax within the boundaries of the IVDA, as described within the Property Tax Transfer Resolution M M d' Section 3.1. VLF Swap Supplemental Amount, The calculation of the VLF Swap Supplemental Amount should include all distributions of property tax to the City that were not distributed to the SBCFPD as a result of the delay in transferring the City's share of property tax within the IVDA boundaries during the Initial Allocation Period. The calculation should include the following property tax revenues distributed to the City during the Initial Allocation Period: m (a) base property tax; and (b) pass through payments, negotiated or statutory; and .r (c) residual distributions as a result of redevelopment dissolution; and Q (d) any other property tax that would have come to the SBCFPD but for the delay in transferring the City's share of property tax to SBCFPD within the IVDA boundaries Section 3.2. Mismatch of Distribution Timing. Distribution of property tax and VLF Swap by the ATC may occur at different times and/or frequencies. In the event that distribution dates of property tax and VLF 3 a....L..L n- An Swap do not align, the ATC shall accumulate between VLF Swap Supplemental Payment transfers the amount of property taxes distributed to the City as a result of the delay in property tax transfer during the initial Allocation Period. Such accumulated amount shall be distributed to the SBCFPD by the ATC at the next VLF Swap distribution date. As a result of the likely mismatch in timing it is anticipated that a final one-time VLF Swap Supplemental Payment representing accumulated amounts not yet distributed at the end of the Initial Allocation Period will be required during the Permanent Allocation Period Section 4. Permanent Allocation Period. During the Permanent Allocation Period VLF Swap funds will be c calculated in accordance with governing law, currently Revenue and Taxation Code section 97.70,by the ATC and will be distributed to the SBCFPD at such time as they would have been distributed to the City, as follows: a LL d (a) VLF Swap Percentage, as defined in the Agreement; plus (b) All of the City's property tax revenue including that within the boundaries of IVDA, as described ; within the Property Tax Transfer Resolution Section S. Term. This agreement is permanent to provide a sustainable funding source for the services C reorganized under the related LAFCO action. a .r c Section 6. Renegotiation of Terms. As a result of certain known future events,Section 2(e) of this E a� Agreement defining the percentage of the City's VLF Swap revenue to be diverted to SBCFPD may be L amended by mutual written agreement of the City and the SBCFPD. Those known future events are the Q future termination of Community Facilities District#1033, the elimination of residential parcel taxes T within Community Facilities District#1033 as a result of the LAFCO condition of approval of annexation, L both of which will result in reduced revenue to the SBCFPD, and the ongoing process of redevelopment d agency dissolution, which will result in additional revenue to SBCFPD. The parties' purpose in providing = d for the amendment of Section 2(e) is to ensure that revenues transferred from the City to SBCFPD and d services provided to the City by SBCFPD will be appropriately adjusted so as to be commensurate with one another, and consistent with the Service Plan developed with the annexation. Specifically,the M parties intend to provide for a process that will permit over-and underpayments, limited to those `t resulting from the events identified herein,to be recouped in a timely manner. Amendments to Section Cl) 2(e)can be made as one-time or ongoing adjustments and shall be memorialized as individual a attachments to this agreement that provide specific direction to the ATC regarding the new distribution `as of VLF Swap funds. Amendments to Section 2(e) authorized under this Section shall be limited to those necessary to adjust for the specific events identified in this Section. d E s Renegotiation of terms under this Section can be requested by either party, limited to the following dates: Q (a) The first, second, and third anniversary of approval by all parties of this agreement; and (b) The 5th anniversary and every 3 years thereafter; and (c) Notwithstanding (b), the final opportunity to renegotiate will occur at the later date of either the final dissolution of the City's redevelopment successor agency or the dissolution of Community Facilities District#1033 4 s.a. Section 7. VLFSwap Amendment or Termination. The City and the SBCFPD recognize that the VLF Swap is a funding mechanism created by the State that may in the future be modified or eliminated. In the event that the VLF Swap is reduced or eliminated at a future date,the SBCFPD shall be entitled to a share of any successor revenue to the VLF Swap that the State may put in place in a dollar amount equivalent to the amount of VLF Swap revenue lost by the SBCFPD as a result of the State's action. Such amount shall grow with the successor funding stream on a pro-rata basis, e.g. if the SBCFPD gets 40%of c the City's share of the successor revenue to make up for the lost VLF Swap, then the SBCFPD shall x participate in 40%of any growth associated with that revenue stream. If such successor revenue is distributed by the ATC,then it shall be distributed pursuant to this section. If the City is the recipient of a the successor revenue directly from the State, it shall pay within 30 days of each receipt of funds the ii appropriate amount, as defined in this section,to the SBCFPD. 3 Section B. Covenants Regarding IVDA Bonds and Related Obligations under the Bond Indenture. .r Notwithstanding any provision of this Agreement, the parties hereto covenant and agree that(i)there shall be no impairment of the pledge of,or reduction of the allocation of,Tax Revenues under the Bond N indenture, the redevelopment plan,or the JPA Agreement except for reductions as may normally occur Q .r outside of the parties' control, such as declining economic conditions or statutory changes as set forth in the Bond Indenture; (ii)the parties will not amend or modify the covenants in this Section 8; (iii) IVDA as well as the Trustee and the Insurer under the Bond Indenture shall be third party beneficiaries of the Q covenants in this Section 8; (iv) Neither IVDA nor the Trustee or the Insurer shall be third party beneficiaries as to the VLF swap provisions of this Agreement. The County of San Bernardino(the c L County) will give notice to IVDA of any proposed amendment to this Agreement at feast 45 calendar � days prior to such proposed amendment. _ m The provisions of Section S shall terminate at the same time as termination is provided for by the Bond Indenture and pursuant to applicable law. T M M Section 9. Notice. Any notice to be given pursuant to this Agreement shall be deemed fully given when made in writing and either served personally, or by facsimile transmission, or deposited in the United M Cl) States mail, postage prepaid and addressed as follows: E If to the County: Deputy Executive Officer/Fire 385 N.Arrowhead,41h Floor m E San Bernardino, CA 92415-0120 a If to the City: Office of the City Manager 300 N. D Street San Bernardino, CA 92418 Attn: City Manager 5 3.A.b if to the SBCFPD: Fire Chief/Fire Warden San Bernardino County Fire Protection District 157 West Fifth Street, Second Floor San Bernardino, CA 92415-0451 c If to the IVDA: c Executive Director x d Inland Valley Development Agency San Bernardino Airport Authority L 1601 East Third Street, Suite 100 U- San Bernardino, CA 92408 3 Section 10. Amendments and Modifications. The parties agree that any alterations, amendments or ca modifications of the provisions of this Agreement shall be valid only when reduced to writing, executed c and approved by the persons authorized to do so on behalf of each of the parties. a c Section 11. Counterpart Signatures Allowed. This Agreement may be executed in counterparts,each of E which shall be deemed an original, and all of which when executed and delivered shall together constitute one and the same instrument. Q L �y JT N C L d 3 C d d T M M r M M ar E L R r C d E t V r Q 6 In Lieu Vehicle License Fee (VLF Swap)Revenue Sharing Agreement Among the City of San Bernardino,the County of San Bernardino, and the San Bernardino County Fire Protection District for the purposes of funding the annexation of fire and related services Signatures of authorized parties On behalf of the CITY OF SAN BERNARDINO _ By: s X Title: a� _ Date: Q m L Approved as to form: s Gary D. Saenz, City Attorney 3 m 0 BYE o N N Titl Q d On behalf of the COUNTY OF SAN BERNARDINO E d d L By: IM a L Title: Date: L d Approved as to form: _ d Jean-Rene Basle, County Counsel T BY: M v Title: M M .Fr E On behalf of the SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT a� �a y By: � E Title: �a Date: Q Approved as to form: Jean-Rene Basle, County Counsel By: Title: 7 n--16-6 n- 99 3.A,c Mark Scott,City Manage- 300 North"D"Stree San Bernardino,CA 92418-000, (909)384-512: CITY OF SAN BERNARDINO Dr IIO CITY MANAGER'S OFFICE 0 X TO: Mayor and Common Council a FROM: Mark Scott, City Manager L U_ SUBJECT: Revenue Transfer Agreement Associated with Fire Annexation DATE: February 29, 2016 0 a a� Recommendation L a Adopt Resolution approving the Vehicle License Fee (VLF) Revenue Sharing Agreement between the City, San Bernardino County, and the San Bernardino County Fire Protection District for the purposes of funding the annexation of fire and related services. Executive Summary Approval of this agreement is a key condition of approval for completing annexation into the San Bernardino County Fire Protection District (SBCFPD). The agreement will assign the City's base ad-valorem property tax, plus 35% of the City's property tax revenue attributable to the VLF revenue swap effectuated by the State of California in 2004, to the SBCFPD to pay for fire and > related services. A complication of this transaction is the fact that there is a property tax sharing agreement for some of these revenues between the City and the Inland Valley Development d Agency (IVDA), a joint powers authority of which the City is a member; the IVDA has pledged this 0 revenue to certain bonded indebtedness. This required a temporary supplemental increase to the a swap amount so taxes pledged under the IDVA bonds can continue to flow to the City and then to c the IVDA. Once the bonds and related obligations are fully paid the supplemental transfer related s to the IVDA will be terminated. rn X This transfer of tax revenues is required as a condition of annexation into SBCFPD, under California law and pursuant to the determinations of the Local Agency Formation Commission for Q. San Bernardino (LAFCO). This annexation is important to the City because it is a key component 0- of implementing the bankruptcy Recovery Plan adopted by the City Council in May 2015. It a provides a means to improve the City's net economic position by $7 to $8 million per year, while improving fire service delivery to residents and property owners. Such funding is critical for the City E to use in addressing other service deficiencies which currently exist and inhibit economic development and revenue growth such as police protection, roads, parks, street lighting and many a other municipal needs. VLF Swap Revenue Sharing Agreement O Developing alternative, less expensive, approaches for delivering fire and emergency medical services is a key component of the Bankruptcy Recovery Plan approved by Council on May 18, 2015. The costs of maintaining a stand-alone City fire department have become a substantial fiscal Q burden for the City as it seeks to attain stability and implement a plan for exiting bankruptcy. L U. After a professional and thorough evaluation of available options, the City Council approved the filing of an application for annexation into the San Bernardino County Fire Protection District on 3 August 24, 2015. Shortly thereafter the County joined in this application. After an objective and 2 independent evaluation process LAFCO acted to approve the annexation on January 27, 2016. In o making this decision LAFCO was required to make a number of independent assessments to N ensure that the annexation will result in the maintenance of satisfactory (or improved) services and a that the move is fiscally sustainable and in the best interests of the City, the Fire Protection District, and the public. The full LAFCO staff report and the SBCFPD Service Plan which delve deeply into E these issues are attached to this staff report as important backup information. a L Many cities comparable to San Bernardino are served by large regional fire service providers like N SBCFPD. Examples in Southern California include Moreno Valley, Fontana, Santa Ana, Lancaster, Palmdale, Santa Clarita, Pomona, Irvine and Thousand Oaks. It is a proven way to reduce costs through economies of scale, while delivering a level of service which would be otherwise not be = attainable. d Such is the case for San Bernardino. By annexing to the San Bernardino Fire Protection District the City will be able to take advantage of existing County stations to serve portions of the City which are closer to these stations than existing City fire stations. Just as importantly the City will be able to share and pool costs for a large number of administrative, support and specialized services > such as management, dispatch, purchasing, fire prevention, EMS management, hazardous materials response, search and rescue and wildland fire response. Finally the County Service Plan E documents that necessary investments will be made in equipment and facilities, necessary investments which the City has been unable to make. a a� c In terms of funding, under the annexation approach the City essentially transfers responsibility for fire and EMS service delivery to the County Fire District. Using the established LAFCO process, a v property tax transfer is accomplished based on the service level agreed upon. The City will then have no further responsibility for funding fire services. Since costs are less than those needed to operate an independent fire department, the City will be able to preserve property tax dollars for other City services. County Fire will have the obligation for all future costs including station and o equipment replacement. Unlike a contract approach, County Fire will have a direct interest in the a. City's being successful economically, because their budget will directly tie back to property tax revenue. E A substantial "wrinkle" developed as this annexation was being processed in relation to property Q tax revenues. This stems from the fact that San Bernardino has a relatively low level of basic property tax revenues, even though it has a fairly good share of the base 1% property tax (18%). Page 2 n__I._a n_ ne This is due to the fact that much of the property within the City was located within the boundaries of the old redevelopment area, which meant more taxes flowed to the Redevelopment Agency and less to the City and other taxing entities. Due to this San Bernardino actually has more property tax o revenues allocated to the City pursuant to what is known as the VLF for property tax swap of 2004, x than in base property taxes — an unusual situation, which gives rise to this agreement. Essentially under the 2004 State Budget Act the State eliminated VLF funds which had historically flowed to Q cities and counties as a State subvention, and replaced this revenue with a portion of the property L tax revenues which had been allocated to the Educational Revenue Augmentation Fund (ERAF). U. The State backfilled school ERAF funding from the State General Fund. While property tax in lieu of VLF is property tax revenue, it is derived from a VLF swap formula which did not include special districts, such as SBCFPD. Moreover, because the City does not o receive enough general ad-valorem property tax to fully fund fire services, some of the City's y property tax in lieu of VLF must be utilized to make up the shortfall. LAFCO staff also had a a concern that some day the property tax in lieu of VLF could be altered by the State. While this is unlikely under the current State Constitution, it is theoretically possible. In response to these concerns LAFCO added the following condition to the annexation: a L • Prior to the issuance of the Certificate of Completion for the reorganization to include N annexation, pursuant to the provisions outlined in Government Code Section 56886 (i) the Commission requires that the City of San Bernardino, County of San Bernardino, and San Bernardino County Fire Protection District enter into a contract which requires the Auditor/Controller/Treasurer/Tax Collector for San Bernardino County to direct that 35% of the City's total property taxes in lieu of Vehicle License Fees be transferred to the Valley Service Zone of SBCFPD, Successor District, to fund the provision of fire protection and emergency medical response services. This contract shall be perpetual and address the needs for M allocation of funds to replace the property tax in-lieu of Motor Vehicle License fees should the State of California make changes to this revenue stream legislatively. This amount is in addition to the amounts determined pursuant to the provisions of Revenue and Taxation Code = Section 99 for LAFCO 3198. as E Q Also, during the annexation analysis it was learned that a pledge of some property tax revenues would prevent a revenue swap on certain portions of property within City limits until certain IVDA a bonds are paid off. State law provides that LAFCO must make a determination that no bond or = contractual obligations are impaired by a reorganization. Since the City has agreed that certain property tax revenues received by IDVA under a joint powers agreement are pledged to the ) payment of debt associated with economic development at the former Norton Air Force Base, this determination could not be made because a straight percentage transfer of taxes levied on all property within the City would have interfered with the IVDA bond pledge. Q. 0 L a Therefore LAFCO added another condition to address this issue, which reads as follows: as • Prior to the issuance of the Certificate of Completion for the reorganization to include annexation, pursuant to the provisions outlined in Government Code Section 56886 (1), (o) and (s), the Commission requires that the City of San Bernardino, County of San Bernardino, and Q San Bernardino County Fire Protection District enter into a contract which directs the Auditor/Controller/Treasurer/Tax Collector for San Bernardino County to provide for the Page 3 3.A.c calculation of property tax revenues to be transferred from the City's proceeds under the property tax in lieu of Motor Vehicle License Fees to the Valley Service Zone of SBCFPD, successor agency, as a replacement for the exclusion of the Inland Valley Development o Authority (IVDA) territory within the City of San Bernardino from the property tax transfer process in the manner presented below. This term and condition shall assure that there is no d impairment of the Inland Valley Development Agency Tax Allocation Refunding Bonds Series 2014A and Successor Agency to the Inland Valley Development Agency Tax Allocation Q Refunding Bonds Series 2014B bond obligations: U. o The calculation shall use the following amounts to determine the transfer from proceeds of property tax swap in lieu of Motor Vehicle License Fees amount: (a) base property tax within the affected Tax Rate Areas (TRAs) within IVDA a part of the corporate limits of the City of San Bernardino, (b) pass through payments, negotiated or statutory within o the defined TRAs; (c) residual distribution as a result of redevelopment dissolution v within the defined TRAs; and (d) any other property tax proceeds that would have come a to the Valley Service Zone except for the exclusion of the IVDA area of the City of San Bernardino; and, aD a� o The methodology outlined above shall be permanent and may only be amended after a the conclusion of the revenue bond pledge on or after June 30, 2035 or if said revenue bond pledge is refunded or refinanced by mutual agreement between the County of San Bernardino, the San Bernardino County Fire Protection District and the City of San Bernardino. a� d The attached agreement has been drafted by the County with input from IVDA and the City in order to comply with these conditions of approval. Most importantly the agreement is designed to ensure that satisfactory and sustainable fire services can be funded via this dedicated revenue source in perpetuity. v One of the input areas from the City concerned property tax variation stemming from the continuing wind-down of the redevelopment agency. The City's specific concern was the fact that as property comes back on the regular property tax rolls (absent the tax increment calculation associated with redevelopment) property taxes to SBCFPD and the City will increase in something a of a one-time phenomenon. The County had a different but similar concern associated with the a, termination of Community Facilities District# 1033, which will decrease revenues to SBCFPD. To address these concerns the agreement includes a renegotiation provision to allow a periodic "true- up" relative to the documented Service Plan negotiated by SBCFPD and the City. This is a x relatively unique provision not generally seen in tax transfer agreements, but the County and the City both agreed that these known future events were an appropriate basis to trigger discussions, and both agreed that consideration of either a one-time or on-going true-up was equitable and fair c for both parties. a c In terms of the overall fiscal shift in moving to SBCFPD from independent fire service delivery, the E LAFCO fiscal analysis shows that total City expenses for the fire department have ranged from C $29.4 to $37.0 million during Fiscal Years 2011 through 2015. Importantly in the years in which w expenditures have been toward the lower end of this spectrum it has been the result of cut-backs Q in service and deferred funding for equipment and facilities. The General Fund (general purpose Page 4 1 D-1—# Dn 17 I tax) requirement has ranged from $23.5 to $31.5 million. The City receives approximately $29.3 million in property taxes (ad valorem, in lieu and other) annually. From this one can easily conclude that operating the City fire department in a financially sustainable fashion will easily take all the o property tax the City receives. x aD _ Under the LAFCO projections in the first year of annexation, the City will transfer$10.5 million in a base ad-valorem property tax to County Fire, plus another $11.1 million in property tax in lieu of >v VLF, for a total of$21.6 million. This reflects a significant advantage to the City in that $7 to $8 U_ million in general tax proceeds will be available for other critical needs, including certain legacy 3 costs such as workers compensation and unfunded pension liabilities the City will need to retire over time. The advantages of the County proposal from an economic standpoint are additional dedicated revenues from a parcel tax which is part of the proposal, lower salary and benefit costs o (largely due to economies of scale) and full funding for necessary overhead, equipment Q replacement and facility maintenance. In addition the County has a full range of specialized services which will be available to the City on a routine basis. a a� In addition, Urban Futures has determined that overall the City will have lower recession induced volatility from the intersection of largely fixed / moderately growing fire expenses and property tax a impacts from periodic economic downturns. This will make it easier for the City to maintain and N sustain adequate reserve balances. L ai From a service standpoint the major advantages of annexation include transition from a service = delivery model which outside experts termed "severely stressed" in 2014 to a sustainable d paradigm. In addition, some areas of the City will benefit from improved response due to direct W response from County stations on City borders, and the entire City will benefit from improved response due to affiliation with the regional CONFIRE dispatch system, which saves a step in the call handling process. v Finally, all 140 personnel associated with fire service delivery, both sworn and non-sworn, will have the opportunity to transition to employment with the County. And as a result of the settlement of d substantial litigation with the City firefighters union City legal costs will diminish. All this is of course contingent upon the annexation which is contingent upon approval of this agreement. Q Conclusion X M As described above annexation to the County Fire Protection District is the best option for the City ~>, from a service delivery and efficiency standpoint. It is recommended Council adopt the attached resolution authorizing approval of the Property Tax In Lieu of VLF Swap Agreement, as required 0- under the annexation conditions of approval. a Attachments: E LAFCO Staff Report Service Plan Q Property Tax In Lieu of VLF Swap Agreement .% Resolution Approving Agreement Page 5 3.A.c 0 x a� c a d L U. r r M O N N Q r C O E d d L Q L d N C m LL r _ c > W I.L r M M r C d d d L Q _ 'i cv L x !Q H d O L- a. .i _ a� E r r a Page 6 n,...�.,.a n_ nn 3.A.d c O ca x m c c Q City of San Bernardino/County Fire U_ Application for Reorganization Including 3 Plan for Service, Fiscal Impact Analysis 0 0 (Five-Year Projection), Transition Plan, San Manuel Band of Mission Indians L Consent Resolution and Supplemental Data y c c M M U U It d O c a c a t U a w Q Attachment 2 DEC 1.6 2015 City of San Bernardino LAFCo Annexation into the san Bernardino County San Bernardino County Fire Protection District Plan of Service n December, 2015 1 . Annexation The City of Bernardino (City) proposes to annex into the San Bernardino County Fire 3 Protection District (County Fire), its Valley Service Zone and Fire Protection Service vs Zone 5 (FP-5) for the provision of fire suppression and emergency medical services. Annexation to the San Bernardino County Fire District will allow the City to take advantage of the substantial economies of scale available from the District, as well as A existing District stations and personnel located nearby to the City. These factors will wallow the City to reduce the overall level of City revenue allocated to fire service delivery, freeing up scarce City resources to address other critical service delivery needs in the CDcommunity. This is consistent with the City's Plan of Adjustment filed with the bankruptcy court on May 30, 2015. The reorganization of County Fire and annexation of the City into County Fire would �« result in the complete assumption of fire, rescue, and EMS services by County Fire for the City of San Bernardino. Through the reorganization process an agreement will be cQ developed to transfer a percentage of the City's property tax to revenue to County Fire to 3 support the short and long term costs of providing fire protection services. Following completion of the reorganization, and execution of the property tax reallocation n agreement, the City will have no further funding obligations for fire suppression or oemergency services within the City. The proposed start of service should the reorganization be approved is July 1, 2016. The following describes the plan of service that would be provided by County Fire to the City upon annexation. a f 2. Incident Response v A. Fire Suppression XCounty Fire is a full-service organization operating seventy fire stations serving c approximately 750,000 citizens throughout the approximately 16,535 square miles of unincorporated territory plus seven incorporated cities including Adelanto, Montana, Grand Terrace, Hesperia, Needles, Victorville, and Yucca Valley. County Fire provides a full range of emergency services including ladder trucks and elevated stream operations, fire boats for water rescues, snow cats for winter operations, heavy equipment dozers and front-loaders for flooding and earth moving, hand crews, ambulance transportation in seven ambulance operating areas, paramedics on engines and ambulances, and large 7 City of San Bernardino Annexation into the San Bernardino County Fire Protection District- Plan of Service incident command and control capability. County Fire's chief officers are trained to function in various Incident Command System (ICS) capacities while some participate on Interagency Management Teams. bevels of service vary in each community based on County Fire's available revenue. Staffing in County Fire stations varies from all paid-call n firefighters to two, or three, career firefighters on each fire engine. fu 3 The City of San Bernardino is located within San Bernardino County Fire's Valley Service Lone. The Valley Service Zone currently staffs and deploys the following: -o Table 1. County.Fire Valley Service "Lone Staffing and Resources 0 -« Division Chief 1 Type I Engines Battalion Chief(s) C Type III Engines w Administrative 3 Type VI Engines Fire Captains 42 Ladder Trucks Fire Engineers 42 'Type I Hazmat Unit Firefighters (PM) 54 Heavy Rescue c Firefighters 18 Squads r Water Tenders Utilities c> Command Vehicles 3 To provide service to the City, County Fire would add an additional Division'and Division Chief to the Valley Service Zone. County Fire would also add their fully funded ycurrent station in Mentone (Station 9) to the new Division. B. Emergency Medical Response Q County Fire is the largest provider of pre-hospital care in the County and second largest ambulance transport provider. This level of service is provided using Paramedic Engine/Truck/Squad Companies or Paramedic Ambulances depending on the need of the local communities. County Fire also has an extensive Automatic External v Defibrillator (AED) program operating in 27 communities with 52 defibrillators. CD C. Hazardous Materials Response 0 County Fire Hazardous Materials Division has maintained and implemented a comprehensive Hazardous Materials Emergency Response 'Team since 1983, which responds to all incidents associated with the release of hazardous materials or hazardous wastes throughout the County. The team is fully equipped and comprised of ten Registered Environmental Health Specialists who are trained to the State of California Hazardous Materials Specialist level. 2 �1 ,I City of San Bernardino Annexation into the San Bernardino County Fire Protection District- Plan of Service For individual emergencies and disasters, hazardous materials responses are coordinated through the Incident Command System, the Standardized Emergency Management System (SEMS) and the automatic aid provisions. In addition to the ten Registered Environmental Health Specialists, County Fire maintains two Type II v Hazardous Materials Response Units. One unit is located in the West Valley and one unit in the North Desert. The units are staffed with 36 Specialist Level members of p. . 3 the hazardous materials team. County Fire also maintains five Decontamination Trailers located in the various divisions for quick regional response. These units provide for the rapid decontamination and clothing of up to 500 victims for release or treatment during 3 an emergency, Hazardous materials equipment, response, and training are coordinated ° through the Interagency Team concept adopted by the San Bernardino County Fire Cn Chiefs' Association as an efficient delivery of specialized hazardous materials response throughout the County. Depending on the incident and resources available, members of the team may fill any position in the Incident Command System ranging w from entry and de-con personnel, team leaders, HAZMAT group supervisor, P10, s safety officer and unified incident commanders. z ° CD The Hazardous Materials Emergency Response Team is critical to civil and criminal investigations. The team provides the expert testimony, obtains and prepares and documents evidence, and conducts the sampling maintaining the chain of custody for any evidence collected. ° > D. Rescue Operations 9 M County Fire is one of California's largest Office of Emergency Services (OES) Urban Search & Rescue (USAR) local government resources. The County Fire currently deploys y three Heavy Rescues and one Medium Rescues. County Fire has also been certified by cthe State of California as a Regional Taskforce for USA_R providing RTF-6 for response 0 throughout the State of California. County Fire currently has 70 personnel trained to W' Q "Heavy" Type I response capability, and these numbers continue to grow. Additionally, nearly all of County Fire's personnel have been trained in swift-water rescue, over-the- =r side rescue, and other various aspects of technical rescue. County Fire has also taken the ° lead within the County in the fight against terrorism. County Fire has been the recipient > of numerous grants from the Federal Government for terrorism preparation. County Fire is also very active on the Terrorism Early Warning Group, the Terrorism Oversight: Committee and Bio-Terrorism Operations Committee. 0 Urban Search & Rescue is considered a multi-hazard discipline; as it may be needed for a variety of emergencies or disasters, including earthquakes, storms and tornadoes, floods, dam failures, technological accidents, terrorist activities, and hazardous materials releases. _.__ 3 City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service E. Mass-Casualty Incident Response County Fire deploys trained and experienced personnel and resources to effectively manage mass-casualty incidents (MCI). Fixed resources include 11 self-contained MCI D trailers stocked with medical equipment including backboards, blankets, trauma dressings, IV solutions, oxygen, triage tarps, etc., and each are designed to be towed or lifted by helicopter to the scene of a major medical incident. The MCI trailers are strategically located within each of the divisions near the likely locations of mass-casualty -o incidents such as transportation corridors and remote mountain communities. County 3 Fire can also mobilize multiple ALS and BLS ambulances through existing Ambulance °, Mutual Aid Agreements on file with ICEMA. County Fire recognizes, and prepares for C mass-casualty incidents in the event of an act of terrorism, natural disaster, or transportation incident. W F. Arson investigation Services w County Fire provides Arson Investigation services for all areas served by the County Fire. The County Fire Fires Investigation Bureau has six investigators with at least one supervisor assigned daily. Fire prevention inspectors who are assigned a geographical region may also respond as fire investigator. The assigned investigator along with the back-up investigator covers all investigations after hours. The investigator who performs these duties are armed Peace Officers. 'Their responsibility is to conduct fire investigations for cause and origin, conduct criminal investigations, assist the local law enforcement agency, and County District Attorney with the prosecution of cases. County Fire investigators work in conjunction with the San Bernardino Counts= Sheriff Department Arson and Bomb Unit on multi-agency crime scene investigations. The Fire NInvestigation Unit conducts over 500 investigations annually. 0 G. Major Disaster Response County Fire has a proven history of managing major incidents and disasters. Major disaster response usually includes the activation of Incident Management'Teams to 2 effectively manage the incident, and to free-up local resources and personnel. Several D Comity Fire personnel on Interagency Management Teams functioning as Incident Commanders, Operation Section Chiefs, Logistics Chiefs, Safety Officers, a Division/Group Supervisors, Public Information Officers, GIS 'Technical Specialists 0 (mapping technicians), and Helicopter Coordinators. County Fire is also a participant in the San Bernardino County Chiefs Incident Management Team. Employees assigned to Incident Command Teams are all NWCG 310-1 Red-Card Certified (National Wildfire Coordinating Group). County Fire also has their. own 'Type III Incident Management 'Team. wwe � City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service H. Confined-Space Operations County Fire provides training to all suppression personnel to the Confined Space Awareness level. This level of training allows for basic confined space rescue y operations and the establishment of the Incident Command System while awaiting the arrival of technical rescue team members. The majority of County Fire's personnel have obtained a higher level of training comprised of the Confined Space Rescue Operational level. C ounty Fire has the capability of performing complex rescue operations using state-of-the-art rescue equipment. County Fire maintains and operates supplied-air breathing apparatus (SABA), intrinsically safe communications °, and lighting equipment, tripods for vertical entry and rescue operations, rope rescue 0 systems, and other specialized equipment for complex confined space rescue operations. W 3. Fire Prevention w A. Pre-development Planning County Fire will assign members of the Fire Prevention Planning and Fngineering Section to coordinate and participate in the City's development review process. This allows County Fire personnel to convey Fire Code requirements to contractors and developers interested in developing projects within the City. The Fire Prevention cc Planning and Engineering personnel will also review proposed developments, inspect proposed development sites, meet with City and County Building Officials, Planners and staff to make appropriate recommendations to developers. v B. Plan Submittal Review 0 The Fire Prevention Planning and Engineering Section will review all residential, commercial, industrial, and manufacturing plans as well as tract maps for compliance with the appropriate fire and building codes as well as our local ordinances and 3 standards. The Prevention personnel will provide written comments to proposed developers and contractors regarding conditions and requirements for their projects CD and/or proposed developments. The Prevention staff will be available for questions pertaining to the proposed projects or developments. X C. Development Inspection 0 —' County Fire will provide site inspections of all developments within the City of San Bernardino requiring such inspections. Fire inspection personnel will coordinate and schedule inspection dates and times with the contractors and developers. 5 f � City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service G. Post Occupancy Inspections Pre-.I ire.Plannin,g- County Fire will perform pre-fire inspection service assessments. An Engine company will perform these inspections through a coordinated effort with the n Fire Prevention Division. Each engine company will be given a geographical area and be required to perform these inspections and generate pre-fire planning diagrams. Permit 1 n.!pection and Permit Issuance- County Fire will provide annual inspections and permit issuance for occupancies as outlined in the California Fire Code and any County ° or City ordinances. a� 0 0, Now Business oiiew- County Fire will perform new business occupancy=inspections upon request from Land Use, Planning and Building and Safety. The expectation would be for Building and Safety to notify County Fire when a new business is being considered for a business license. w w E. California Fire and Building Code Administration X ACounty Fire administers the San Bernardino County Fire Code as amended from the California Fire Code as well as State Fire Marshal regulated sections of the California Building Code. A committee was established under the direction of the San Bernardino County Fire Chiefs'Association whose sole responsibility is to monitor changes, code Q. adoptions and prepare staff reports with recommendations to the Fire Marshal for cQ ordinance amendments and for proper interpretation of the San Bernardino County Fire Code. (o F. San Bernardino City Fire Code Administration rt yAs part of the annexation process, County Fire would require that related County 0 ordinances and fee schedules would be adopted by the City. tv rt Q G. Weed Abatement County Fire performs vegetation risk assessments within its jurisdiction. Property owners are required to abate their property of weeds and vegetation that could create a fire CD hazard and pose a potential threat to adjacent properties. Pro per ty owners are given written notice to abate within a specified time frame to remain in compliance. County x Fire will work with City code enforcement to gain voluntary compliance. If voluntary ocompliance is not obtained, there is an administrative citation process and a property lien process available depending on how compliant the property owner wishes to be. Generally, voluntary compliance has a high success rate in reducing neighborhood fire risk associated with vegetation management. Its City of San Bernardino Annexation into the San Bernardino County Fire Protection 0 District - Plan of Service H. Fire Investigations County hire will provide fire investigative services and Fire Code law enforcement twenty-four hours per day in the City. Fire Investigators are sworn Peace Officers and y Reserve POST certified investigators. County Fire also participates with the San Bernardino County Arson Task Force (SBCATF) under a cooperative agreement. The 3 SBCATF provides additional investigations services for large scale and difficult to M manage investigations without additional costs to jurisdictions. ° 1. Public Education and Special Events % Public education and special event management will be provided through County Fire's Community Safety Division with trained Fire Prevention Specialists. County Fire's public education programs include education for kindergarten through twelfth grade, the `D Juvenile Fire Starter Intervention program and customized program delivery for senior w citizens. w Special event management incorporates all large venue events such as California M Speedway and San Manual Amphitheater as well as specialized management for CD individual jurisdictions events. Special Events Unit provides permitting and inspection services for all special events within County Fire's service area. u 4. Dispatch/Communications c� MCounty Fire will transition the City of San Bernardino to the Confire JPA (CommCenter) M Dispatch Center located in Rialto. County Fire will continue the use of the ttunked y Motorola 800 MHz radio system for all apparatus and staff vehicles and the County 900 cMHz paging system. The Confire system also provides Automatic Vehicle Locators (AVI,), Mobile Data Computer (MDC), and WiFi hotspots on all units to support the Qlatest generation of Computer Aided Dispatch (CAD) and support. The Confire system g dispatches the closest available unit by using the call location and real time AVL information to determine the closes unit. The MDC's provide call details, mapping and pre-plan information. Patient Care Reports are generated on tablet computers that are linked through the WiFi hotspot to the call data. XConfire is also a certified provider of Medical Priority Dispatch System (1VIPDS). The 0 system is a medically approved, unified system used to dispatch appropriate aid to -- medical emergencies including systematized caller interrogation and pre-arrival instructions. IVIPDS starts with the dispatcher asking the caller key questions. These questions allow the dispatchers to categorize the call by chief complains: and set a determinant level ranging from A (minor) to E (immediate life threating) relating to the severity of the patient's condition. The response then may be altered based on the determinant level. A two person squad may respond to A and B level calls without an engine company. This approach accomplishes two goals, ensuring a response and 7 City of San Bernardino Annexation into the San Bernardino County Fire Protection District- Plan of Service evaluation to all 911 calls for service regardless of the status of the ambulance company and keeps the engine companies available and in their areas for the higher level calls. County Fire proposes to serve the City with one squad in the core of the city to run the low severity medical aid calls. The Confire JPA provides the network connectivity for all n San Bernardino County Fire Stations to allow for system inter-action of various County s Fire programs and management tools. 9 CD A. Estimated Average Response Time for Incident Response Currently the City does not have a set response time goal. A:June 2014 report by fire e service consulting firm (Citygate) indicated that call to arrival time for 90% of calls was C9:36 minutes in 2013, which was above the time of seven minutes generally considered satisfactory in an urban setting. In particular call handling time of 2:31 and turnout tune CD of 2:11 were significantly above industry standards. A County Fire's goal is to meet the National Fire Protection Association (NFPA) 1710 recommendations for the arrival of the first unit in five minutes and the first alarm in eight minutes but only meets this in some urban areas. Ninety percent of County Fire's calls are processed and,dispatched in less than two minutes and eighteen seconds. Due to improvements in call processing time and as a result of utilizing County Fire Station 75, response tunes are expected to be at least be equal to current levels. v. B. Existing Dispatch Equipment D cc CD The following dispatch equipment from the City Dispatch Center will be transferred to 3 County Fire (Confire JPA) for continued used in dispatching and alerting units. y item`, Serial# Lgcfitign' iUte 0 Dell T3500 CPU 4B72FQ1 FD01 area Dell 2408WFP monitor MX-OG283H•74262-891-234S FD01 area CD Dell 2408WFP monitor MX-OG283H7. 4262-891-103S FD01 area Viewsonic VG930M-3 QC2101620855 FD01 area =' monitor M �' HP LaserJet Pro 300 Color CND8FCC8RY FD01 area D MMP printer Dell Precision E221h3 6MH6YR1 FD01 area First in alerting client HP DC 5000 MP CPU 2UB440020V FD03 area Internet PC 3 Acer 245HQ Monitor 20902875543 FD03 area Dell GX 270 F615341 FD01 area Internet PC First-IN keypad (Modell# 849817 FD01 area FRIC-AU) XTS 5000 721CLK0848 FD01 area Spectra (S45ZXA5JC7AK) 581AUA3125 FD01 area Dell T3500 CPU 4671FQ1 FD02area Dell 2408WFP monitor MX•OGM504-74262-7AJ-2CES FD02 area n,w*t- � CC£ 6d 4043ed City of San Bernardino Annexation into the San Bernardino County Fire Protection 0 District - Plan of Service Dell 2408WFP monitor MX-OGM504-46634-79H-1HFS FD02 area HP RA373A monitor FD02 area First-IN keypad (Model# 849819 FD02 area FRIC•AU) D XTS 5000 721CLK0849 FD02 area Spectra (S45ZXASJC7AK) 581HRE0185 FD02 area Del T3500 CPU 41363FQ1 FD03 area Dell 2408WFP monitor MX•OGM504-74262 7AK ITIS FD03 area Dell 2408WFP monitor MX-OGM504-74262-B7A•2AAS FD03 area HP RA373A monitor CNN84500SQ FD03 area o, First-IN keypad (Model# 849818 FD03 area C FRIC•AU) XTS 5000 721CLK0847 FD03 area Spectra (S45ZXASJC7AK) 581AUA2573 FD03 area w Dell T3500 CPU G13G8PS1 Supervisor Acer 245HQ monitor 20902874743 Supervisor First-IN RIC(Model#QRIC- 849845 Server Room Radio interface 04-A-DT) controller Dell Poweredge R710 JV7TBP1 Server Room First in alerting server f Other notes: Each dispatch station has county radio console equipment, which is leased from the county. Each console has a Centercom Gold Series and Zetron 3022. D 5. Administration y A. Liaison to the City y The Fire Chief of the San Bernardino County Fire Protection District will assign a Division Chief as the Fire Chief for the City of San Bernardino. The Division Chief shall act as liaison to the City regarding fire protection issues. if the City is required to maintain a Fire Chief, then the Mayor of the City of San Bernardino shall appoint such �? Fire Chief, subject to the approval of the City's Common Council, and the County vDivision Chief shall continue to be the liaison between County Fire and the City. XB. Meeting Attendance a The assigned Division Chief will attend all meetings as requested by the City. S/he will also attend Common Council meetings as the City Fire Chief o r C o u n t y F i r e Division Chief and make appropriate reports on the activities of County Fire. C. Reports and Records County Fire maintains a variety of records that are typically maintained by fire departments. These records include emergency responses, company inspections, facility 9 w� City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service and equipment safety inspections, equipment repairs, employee time reports, etc. Quarterly staff reports, review and adoption of related codes, and other related reports requested by the City and/or City Manager will be provided in a reasonable time-frame that is mutually agreed upon by both parties. n D. Fire Complaints and Public Information County Fire understands the need for positive, engaged community relationships, which is a major value for the County Fire organization. The values cited in County Fire's Mission Statement would be applied equally in the City of San Bernardino. Information c requested through the Public Information Act is readily available through our division Cheadquarters or fire department administrative headquarters. County Fire has an established fee schedule and members of the public wishing copies of documents are subject to the appropriate fees. W E. City of San Bernardino Identity County Fire will work with the City Manager or his/her designee to maintain the history CD and identity of the San Bernardino City Fire Department as much as possible. This would include equipment identification, fire station signage, reports and records. County Fire's customer service philosophy is focused on meeting the needs of the customer in ' the shortest reasonable timeframe,without numerous referrals or transfers to other departmental agencies, and mostly being courteous, polite, and helpful in every manner. D F. Financial Management a County Fire will provide the City of San Bernardino financial reports whenever requested. County Fire will also work with the City to provide these reports in an yacceptable format and include any reasonably obtainable information. County Fire shall ° maintain a separate accounting of all FP-5 funds generated and spent within. the City of San Bernardino. a 6. Facilities and Equipment _. - - A. Buildings X All listed buildings and property of the San Bernardino City Fire Department would become property of County Fire following completion of the reorganization. This includes all City Fire property in each facility. For those properties transferred, County Fire will then be responsible for all future maintenance, repairs and replacement. All Quit Claim Deeds shall be prepared by the City Managers Office and ready for filing on the date of reorganization. 10 �o City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service B. Equipment Upon the occurrence of the reorganization the real property locations listed on Exhibit "A" ("Transferred Facilities and Vehicles") attached hereto and incorporated by v reference (the "Transferred Facilities"), and the vehicles listed on Exhibit"B" (the "Transferred Vehicles"), together with all the fixtures and furnishings of the Premises, 3 together with all firefighting equipment and apparatus used in connection with the Facilities and Vehicles, and all property, furniture, fixtures, materials, and equipment ' necessary or convenient to service, maintain, repair, provision or replace the Vehicles and the Premises, and any and all property, furnishings and equipment, real or personal, e previously furnished by CITY for Office of Emergency Services, fire prevention services, Cfire protection and ALS/Paramedic services, for the purpose of performing the activities and fulfilling the responsibilities of County Fire shall become property of County Fire. CD County Fire shall be responsible for all future maintenance, repairs and replacement of w vehicles, equipment, and facilities in the City of San Bernardino. The City Managers j Office shall prepare all Title Transfer Documents for the Vehicles listed in Exhibit "A" Xand present them to County Fire by the reorganization date. CD 7. Miscellaneous f A. Assumption of Existing Personnel 1. Suppression Personnel, County Fire agrees to offer employment to all City CD Suppression Personnel to the extent that each of such Suppression Personnel CD successfully passes, in the sole determination of County Fire, the background check, including review of their City of San Bernardino personnel file, training N records and applicable certificates, pre-employment physical, and drug test c required by County Fire. Such Suppression Personnel will be hired as new County Fire employees for all purposes except those set forth below. Failure CD to pass the required background check/pre-employment physical or drug test shall disqualify a person from employmentwith County Fire. 2. Seniority of Suppression Personnel County Fire agrees to maintain v employee's City service dates for the following purposes, only: (i) County Fire's retirement contribution, with the rate to be determined by San Bernardino County Employees Retirement Association ("SBCERA"), 0 recognizing that the reciprocal retirement contribution rate only applies if the employee does not elect retirement from City's retirement plan and takes all actions necessary to establish reciprocity; (ii) participation in the Retiree Medical Trust Fund; and (iii) vacation accrual rate. 3. Hiring of City Non-Suppression Personnel Offers of employment to City non-suppression personnel with County Fire will be based on each person's _ 11 �1 City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service C experience, qualifications and certifications. The number of non-suppression personnel offered employment with County Fire will be determined by the qualifications of the employees and the availability of positions within County Fire as of the date of reorganization. Any Non-Suppression Personnel D offered employment by County Fire will be required to successfully pass, in the sole determination of County Fire, a background check including a review of their City of San Bernardino personnel file, training certificates and records, pre-employment physical, and drug test as required by County Fire. Failure 'a to pass the required background check/pre-employment physical or drug test shall disqualify a person from employment with County Fire. All City Non- 0 % Suppression Personnel will be hired as new County Fire employees for all Cn purposes except the following: (i) The County's miscellaneous employee retirement contribution rate as determined by the San Bernardino County Employees Retirement Association (SBCERA), recognizing that the reciprocal A retirement contribution rate only applies if the employee does not elect w w retirement from City's retirement plan and takes all actions necessary to establish reciprocity; (ii) vacation accrual rate; (iii) participation in the cRetirement Medical Trust; (iv) sick leave conversion eligibility. All. Non- Supression Personnel that are on probation at the time of employment with County Fire will be required to serve a twelve (12) month probationary period with County Fire. All City employees hired by County Fire will be eligible to compete for future promotional opportunities with County Fire as soon as cc they are eligible to do so. 'rime employed by the City will be counted for pormotions within County lire requiring a minimum amount of time with County Fire or achievement of a certain rank or position. N4. Vacation/Sick Leave. On or before the completion of the reorganization, City �0 may remit to County Fire the cash value of up to 96 hours of vacation leave and up to 96 hours of sick leave, to the extent owing, of each hired employee's City's leave balances at the rate of pay the employee will be receiving at County Fire for purchase of leave balances for the hired employees (the �? Vcation/Sick Leave Advance"). County Fire will have no responsibility for determining the appropriate number of hours to be purchased by City for employees hired by County Fire. Except to the extent covered by the X Vacation/Sick Leave Advance, City will retain all liability for employee leave c balances and related matters. City will similarly retain all liability for pre- existing medical conditions due to occupational injuries for all City employees hired by County Fire. 5. Unfunded Retirement Plan T iabilily. City will retain all liability for any unfunded retirement plan liability as of the annexation date for all City employees hired by County Fire. City will retain all liability for any promised retirement benefits, such as health insurance maintenance or payment. 12 I—ww,e 1 City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service CCounty Fire does not accept any liability regarding City employees that arises from City employment up through the reorganization date. 6. Positions with County Fire. Notwithstanding any provision to the contrary in n the Personnel Rules for Board Governed Special Districts to which County Fire is subject, all Suppression Personnel and other City employees that are offered employment by County Fire upon or shortly after the annexation date will be offered compareable positions with County Fire at a base salary -� (without incentive) and step, as effective March 1, 2016, that is closest in pay to the City fire department position salary for that position, except in % circumstances where City salary is higher than County Fire's top step for the Cn position offered, in which case County Fire's top step will be applicable. 0 Suppression Personnel hired by County Fire will be offered employment in cD positions as determined by County Fire. Management Suppression Personnel wthat are offered employment will be placed at the salary rate of a top step j Captain with County Fire. Within thirty (30) days of employment with X County Fire, all City Fire Management will be eligible to test for Chief Officer County Fire positions created through the annexation of the City of San Bernardino. All City Fire Management personnel successfully passing the -' testing process shall be placed on a promotional list that will be created on or about September 1, 2016. Such list shall be effective one (1) year from its creation or until there are no employees on the list, whichever occurs first. No hired Suppression Personnel will be placed at a salary level above a County Fire top step Captain. All Suppression Personnel that are on probation at the time of employment with County Fire shall serve a ttivelve (12) month probationary period with County Fire. All City employees hired by County yFire will be assigned to the retirement system associated with County Fire's 0. classifications, and will be eligible to compete for future promotional opportunities with County Fire as soon as they are eligible to do so. Time employed by the City fire department and the rank with the City fire department will be counted for promotions within County Fire requiring a minimum amount of dine with County Fire or achievement of a certain rank v within County Fire. X 7. Maintenance of Certifications. City Personnel hired by County Fire will be crequired to maintain all appropriate licenses, certifications and registrations for the position they are assigned. The City and County will work together to make the transition as smooth as possible. The County will provide an orientation for City employees during the transition to cover options for City employees. The County will provide staff from the County's retirement system (SBCERA) to give City employees their options regarding the retirement system. The City has and will continue 7.3 t'ti'�d ta�loed City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service to meet and confer with the appropriate labor organizations representing both suppression and non-suppression personnel regarding the implementation of the above terms and consistent with applicable time-lines necessary to the annexation proceedings. a °; Employee Transition Plan: Number tCsficaton of City Cou1 �( la� k 114 (?tlt' cSi n r r �� �' at" „fir 3 r n t i Positions �,r� .' c t r 3,✓5 t 1 �[, c a e x ?3 YX O 4+`"m x-i*U I ,. ': "Y^.i .-� r t �' .�,x., '^ .k*v :.•.r� na5 ,L'✓.n EF Y 'Id`s :" '..sY: - Suppression Staff w Fire Chief 1 Fire Captain 1 w Deputy Fire Chief 1 Fire Captain 1 c� co = Battalion Chief 6 Fire Captain 6 s Fire Captain 37 Mrc Captain 37 u. c� c> Captain/Investigator 1 Fire Captain 1 co Fire Engineer 30 Fire Engineer 30 r. NFirefighter/Paramedic 36 Fighter/Paramedic 36 Ch O n SUPPRESSION TOTALS 112 112 CL T �D D Office Staff CD Administrative analyst II 1 Staff Analyst I,II or Budget Officer 1 O Executive Assistant to Director 1 Office Assistant II or III 1 Senior Admin.Assistant 3 OA I,II;Payroll Clerk,Fiscal Asst 3 OFFICE STAFF TOTALS 5 5 14 �w City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service Training Staff D IIMS Coordinator RN 1 ISMS Nurse Educator 1 TRAINING TOTALS 1 1 a� O Cn co Dispatch z Dispatch Supervisor 3 Dispatcher 3 w w Dispatcher II 8 Dispatcher 8 c Dispatcher I (Flex) 1 Dispatcher 1 b DISPATCH TOTALS 12 1 rn n Fleet Services NEquipment Maintenance Sup. I Fire Mechanic I O n rMechanic II 2 Fire Mechanic 3 CL Mechanic I (Flex) 1 Fire Mechanic or County.Mechanic 0 21 nD Senior Warehouse Driver 1 Fire Equipment Tech 1 D x FLEET TOTALS 5 5. 0 Fire Prevention Fire Marshal 1 Fire Prevention Supervisor or ITS 1 15 M+vw City of San Bernardino Annexation into the San Bernardino County Fire Protection District- Plan of Service Fire Risk Reduction Supervisor 1 Fire Prevention Officer or Fire 1 Prevention Specialist Pire Prevention Officer 4 Fire Prevention Officer or Fire 4 D Prevention Specialist a) 0 PREVENTION TOTALS 6 6 a� % The County Fire positions listed in red will require review of the City employees' Cn qualifications and experience to ensure the employees meet the minimum requirements for the County position and determine what position can be offered. W B. Workers Compensation Insurance w X Workers compensation will be provided by County Fire in accordance with State law and < its own policies and requirements. The City will have no responsibility for workers compensation expenses or administration after the date of annexation. Legacy workers' compensation costs will remain with the City. The City shall have provided County Fire s and L,AFCO with documentation evidencing, to the reasonable satisfaction of County U Fire and LAFCO, that City has obtained or will obtain by the completion of the i reorganization adequate worker compensation tail insurance covering all workers compensation claims of all City suppression personnel and other City employees to be hired by County Fire incurred before the annexation date. v C. Vehicle and Liability Insurance N Vehicle ownership along with vehicle liability insurance would be transferred to County 0 Fire. The City will have no responsibility for vehicles or equipment expenses or c. administration after the date of annexation. D. Subcontractors yCounty Fire does not intend to subcontract any portion of the service described herein. X c E. Litigation The disposition and impact of any litigation filed prior to the completion of the reorganization with City of San Bernardino fire department employees (individual or any collective bargaining group) will be the responsibility of the City of San Bernardino. If the reorganization is not completed because of any litigation the operation of the City Fire Department will continue with the City until the litigation is resolved and the reorganization is completed. The City and the San Bernardino City Professional 16 ww*o � City of San Bernardino Annexation into the San Bernardino Counts= Fire Protection District -Plan of Service Firefighters' Union are currently in settlement discussions regarding administrative claims and lawsuits filed separately or in connection with the City's Bankruptcy Court proceedings. > F. Legacy Costs All existing liabilities and legacy costs including but not limited to Workers Compensation, Retirement System unfunded liability, and existing leave balances shall remain with the City. The County shall only be liable for costs incurred after the "a reorganization date. a� % G. CFD Transfer The north end Community Facilities District (CFD-1033) shall be transferred to the San Bernardino County Fire District through LAFCO pursuant to Government Code wSection 56886(u). This funding shall continue to be used for the ongoing maintenance and operation of the Verdemont fire station. X H. City Contract with San Manual Fire The City of San Bernardino has a contract with the San Manual Band of Mission Indians ` to provide dispatching, mechanic, reserve units, fire prevention services, and automatic aid as needed. This contract expires June 30, 2017 and was prepaid by San Manual. The ca remaining cash value of the contract for service between July 1, 2016 (reorganization date) and June 30, 2017 is $86,333. This amount shall be paid to the County Fire District by the City of San Bernardino by the reorganization date and the County Fire District shall provide the services specified by the contract for the remainder of the contract y term. The County Fire District has the full ability to provide the outlined services to the 0 San Manual Fire Department that were provided by San Bernardino City. At the conclusion of the existing contract the County Fire District intends to enter into a new a contract with San Manuel Fire if they elect to continue the partnership with the District. T 1. ARFF JPA M > The County Fire District will continue the Aircraft Rescue and Firefighting joint Powers Authority that exists between Crafton Hills College, San Bernardino County Fire District, E and the City of San Bernardino. This JPA operates the ARFF training facility at San o Bernardino International Airport. J. City Contract with County Fire 17 City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service Couty Fire currently contracts with the City of San Bernardino to provide fire, rescue, and EMS services to several County pockets within the City. County Fire pays the City approximately $487,000 per year to provide this service. Upon the reorganization these funds will stay in the Valley Service Zone to support the increased call volume and cost v for County Station 75 in Muscoy and County Station 2 in Devote as they support operations within the City of San Bernardino. 8. Staffing Plan °, The City's Common Council chose and approved the submitted staffing model on C August 24, 2015. A. Facilities and Equipment wCounty Fire will take ownership of all listed facilities and vehicles upon completion of the annexation. B. Equipment and Station Replacement Fund County Fire would establish a capital replacement program for the replacement of City equipment and remodeling or replacement of stations as needed. County Fire proposes the vehicle replacement program be based on an age replacement schedule. Some vehicles may need replacement sooner while others may be extended depending on the co usage of the vehicle. Any replacement schedule will need to meet County Fire's available 3 funding and replacement policies. County Fire recommends the following vehicle and (D apparatus replacement schedule: NTable 2. Proposed City Vehicle-Apparatus and Replacement Sebednle 0 0 W: * Engine 20 years (10 to 12 years frontline/8 to 10 years reserve) 0 CL * Ladder'T'ruck 20 years (10 to 12 years frontline/8 to 10 years reserve) 3 * Water Tender 20 years * Brush Engine 20 years M > * Squad 7 years (5 years frontline/2 years reserve) * Staff Vehicle 7 years X W * Command Vehicle 7 years (5 years frontline/2 years reserve) 0 3 County Fire will establish a Capital Replacement Fund starting at $1,839,330 with the annexation in fiscal 2016/17 and increasing at 2% per year thereafter. The formula is based on the above replacement schedule and the following vehicles and stations. Type Number Annual Reserve 18 City of San Bernardino Annexation into the San Bernardino County Tire Protection District - Plan of Service Engine 10 630,697 Truck 2 221,340 D Squad 1 34,355 Air/Light 1 11,985 Command 4 47,793 3 O Brush Engine 5 153,677 Prevention Supervisor 2 7,344 A W Prevention 4 11,424 X Utility 1 4,675 c Generator 2 2,040 s D ca t(o Station Replacemcnt 10 714,000 c� r. D fA W Total 1,839,330 �D C. .=i C. Service Level D County rise believes this service model best meets the City's need to provide a level of xservice adequate for cities of comparable size, area, and demographics. County Station 0 75 (Muscoy) is integral to this service model. The ten identified fire stations would be staffed daily with 38 full-time employees as shown in the table below. Each unit would provide Advanced Life Support services and the fire stations will be supervised by a Battalion Chief who will be on-duty twenty-four hours per day, seven days per week and respond to all incidents requiring a Chief Officer. County Fire Station 75 would cover the current area served by Station 223. A future goal would be to add an additional squad to run the high volume of low priority medical aids in the core of the 19 09 "Bd 10)Ped City of San Bernardino Annexation into the San Bernardino County Fire Protection District - Plan of Service City. This plan would use the Priority Dispatch Program to reduce the call volume for the engine companies and keep them available in their areas for major emergencies. The annual estimated operating cost for fiscal 2016/17 excluding one-time v start-up costs is $31,411,666. Table 3. Senice and Staffing Plan Position # Annual o Operating o Cost C Division Chief 0.93 277,958 Battalion Chief 2.80 752,536 Captain 36.00 7,717,896 Engineer 36.00 6,713,820 Firefighter/PM 39.00 6,423,846 Firefighter 3.00 453,021 Deputy Fire Marshal 1.00 231,659 Fire Prevention Supervisor 1.00 144,546 Fire Prevention Specialist 2.00 245,098 s Fire Prevention Officer / Arson 1.00 191,805 Fire Prevention Officer 3.00 316,824 v Fire Prevention OA II 1.00 60,440 Office Assistant III 0.93 56,400 3 Staff Analyst I 0.93 86,796 CD Total Personnel Costs 128.58 23,672,645 N Station Expenses 2,143,275 o Service/Supplies/Dispatch/MIS 2,534,749 d Overhead/Support 1,221,667 `L Total Operating Expenses 5,954,691 Capital Improvement Fund 1,839,330 Total Personnel and Operating $31,411,666 3 Daily Staffing configuration: X ai o Station 221 — Engine, Truck (CAP, ENG, FF/PM + CAP, ENG, FF/PM) Station 222 — Engine (CAP, ENG, FF/PM) Station 223 - CLOSED Station 224- Engine, 'Truck (CAP, LNG, FF/PM + CAP, ENG, FF/PM) Station 225 — Engine (CAP, ENG, FF/PM) Station 226 — Engine, Squad (CAP, ENG, FF/PM + FF/PM, FF) Station 227 — Engine (CAP, ENG, FF/PM) Station 228- Engine (CAP, ENG, and FF/PM) 20 w-1 6S '6d 40)13Ld City of San Bernardino Annexation into the San Bernardino CoungT Fire Protection District- Plan of Service Station 229- Engine (CAP, ENG, and FF/PM) Station 230 - CLOSED Station 231 — Engine (CAP, ENG, FF/PM) Station 232 — Engine (CAP, ENG, FF/PM) D a� 3 rt -o 0 4, CA w w c� 0 e� s u. 0 D cc 0 co 0 rt D w 0 A rt <p Q. 21 cp D c� x rt o' 0 21 f City of San Bernardino .Annexation into the San Bernardino County Fire Protection District - Plan of Service Exhibit A Transferred Facilities and Vehicles a n = Facilities • Station 221 - 200 E. 3rd Street(APN 0135-181-63-0000) • Station 222 - 1201 W. 9th Street (APN 0139-241-07-0000) c • Station 224 - 2641 N. E Street (APN 0149-161-17-0000) 0 • Station 225 - 1640 W. Kendall Drive (APN 0266-601-03-0000) • Station 226 - 1920 N. Del Rosa Avenue (APN 0273-011-22-0000) • Station 227 - 282 W 40th Street(APN 0154-211-17-0000) • Station 228 - 3398 E. Highland Avenue (APN 0285-191-05-0000) w • Station 229 - 202 N. Meridian Avenue APN 0142-051-13-0000) s • Station 231 -450 E. Vanderbilt Drive (APN 0281-341-09-0000) X • Station 232 - 6065 Palm Avenue (APN 0261-191-06-0000) o • Fleet Facility— 120 S. D Street (APN 0136-122-89-0000 & 0136-122-90-0000) s Station 223 (2121 Medical Center Drive) and station 230 (502 S. Arrowhead) will not be transferred to County Fire. n co 3 3 VEHICLES Q a AL-1 2002 PIERCE/SABER 1113897 AIR/.LIGHT 221 g BC-5 2002 CHEVY TAHOE 1113872 EMS Coord =' BC-6 2002 CHEVY TAHOE 1136817 Res 21 �' BC-7 2007 CHEVY TAHOE 1245232 C-600 > BC-8 2007 CHEVY TAHOE 1256945 DC-601 X BC-9 2007 CHEVY TAHOE 1270315 BC-605 °,-r', BC-10 2007 CI4EVY TAHOE 1272826 BC-603 BC-11 2007 CHEVY TAHOE 1272827 BC-604 BC-12 2007 CHEVY TAHOE 1272828 BC-602 BE-1 2000 INTERNATIONAL 1041396 BE-225 BF,-2 2000 INTERNATIONAL 1041397 BE-228 BE-3 2000 INTERNATIONAL 1041398 BE-232 BE-4 2002 INTERNATIONAL 1113898 BE-226 22 City of San Bernardino Annexation into the San Bernardino County Fire Protection District- Plan of Service BE-5 2002 INTERNATIONAL 1113896 BE-227 FL-2 1999 CAT 1351160 FORKLIFT G-1 2009 WHITE-MAN 1413441 SBIA G-2 2012 WHI`I'EMAN 948867 SHOP D G-3 DAYTON N/A SBIA lu 0 HM-2 2000 PIERCE/SABER 1041399 HM-231 �o HM-3 2004 SPORT TRAILER 1176878 HIVI-231 TRAILER HR-1 2002 PIERCE/SABER 1113899 HR-221 U HR-2 2005 WELLS TRAILER 1202588 HR-221 TRAILER c MC-1 2011 MOTOR HOME 1353921 DISASTER PREP ME-9 1999 PIERCE/DASH 1012639 RESERVE ME-10 1999 PIERCE/DASH 1031234 RESERVE 0' ME-11 1999 PIERCE/DASH 1012638 RESERVE A ME-12 1999 PIERCE/DASH 1012637 RESERVE w w j ME-13 1999 PIERCE/DASH 1012641 RESERVE X ME-14 1999 PIERCE/DASH 1012642 RESERVE ME-15 1999 PIERCE/DASH 1012643 RESERVE c� ME-16 2000 PIERCE/DASH 1057355 ME-225 —' ME-17 2000 PIERCE/DASH 1057356 ME-227 s ME-18 2000 PIERCE/DASH 1057357 ME-229 c� ME-19 2000 PIERCE/DASH 1057358 RESERVE D ME-20 2004 PIERCE/DASH 1149085 ME-232 m ME-21 2008 PEIRCE/ARROW 1202931 ME-221 r+ ME-22 2008 PEIRCE/ARROW 1202887 ME-222 N ME-23 2008 PEIRCE/ARROW 1202889 RESERVE c ME-24 2008 PEIRCE/ARROW 1202888 ME-224 lu ME-25 2008 PEIRCE/ARROW 1202938 ME-231 a ME-26 2008 PEIRCE/ARROW 1202940 ME-226 ME-27 2008 PEIRCE/ARROW 1202939 ME-228 21 RS-3 2003 CHEVY/PU 1169593 REPAIR D SQ-1 2008 FORD/F-450 1302512 MS SQ-2 2011 FORD/F-450 1358360 MS x SS-18 2000 FORD/RANGER 1063863 PARTS c SS-20 2001 FORD/CROWN VIC 1288188 EQUIP. SUPER SS-22 2001 FORD/F-250 1081865 DELEVERY SS-23 2001 FORD/CROWN VIC 1119818 POOL SS-24 2001 FORD/CROWN VIC 1119819 POOL SS-25 2001 FO CROWN VIC 1119820 POOL SS-26 2001 FORD/CROWN VIC 1119821 ADMIN SS-27 2001 FORD/TAURUS 116308 POOL 23 �w� ti9 '6d 4043ed City of San Bernardino Annexation into the San Bernardino County Fire Protection District- Plan of Service SS-28 2002 CHEVY/S-10 1120978 PREVENTION SS-29 2002 CHEVY/S-10 120977 PREVENTION SS-30 2002 FORD/TAURUS 1132592 PREVENTION SS-32 2002 FORD/TAURUS 1147946 PREVENTION D SS-34 2005 CHEVY/EQUINOX 1209227 PREVENTION iv Cl) SS-35 2005 CHEVY/EQUINOX 1209223 PREVENTION m SS-36 2005 CHEVY/EQUINOX 1209228 PREVENTION SS-37 2005 CHEVY/EQUINOX 1209229 PREVENTION -o SS-38 2005 CHEVY/EQUINOX 1.209224 PREVENTION o SS-41 2002 CHEVY/TAHOE 5XSM564 INVESTIGATIONS Cn SS-42 2005 I'ORD/F-150 8M17730 INVESTIGATIONS n SS-43 2006 FORD/CROWN VIC 1225383 SWAT-MEDICS SS-44 2001 DODGE/RAM 2500 1202944 ARSON w SS-46 2006 TOTO'TA/4 RUNNER 6WGR290 INVESTIGATIONS w SS-47 1988 FORD/PU J4409 ATF(LOAN) c� T-2 1993 SEAGRAVE 374833 RESERVE T-3 1999 PIERCE/DASH 1012640 RESERVE m T-4 2008 PIERCE/ARROW 1202891 T-224 f T-5 2008 PIERCE/ARROW 1202892 T-221 UT-1 2007 AZTEX/TRAILER 1202924 TRTAILER 225 m D UT-2 2007 AZTEX/TRAILER 1202925 TRAILER 231 CD UT-3 2007 SPORT TRAILER 1234354 EXPLORER TRAILER UT-4 2007 SPORT TRAILER 1234355 HONOR GD TRAILER r. UT-5 2007 SCOTTY SAFETY 1234362 PUB ED TRAILER > UT-6 2008 F6RD/F-450 1312634 STAKE BED o UT-7 2011 SPORT TRAILER 1361387 CERT TRAILER 0. a; UT-8 2011 SPORT TRAILER 1361388 CERT TRAILER cD Q- UT-9 2011 SPORT TRAILER 1361389 CERT TRAILER UT-10 2011 SPORT TRAILER 1361390 CERT TRAILER UT-11 2011 SPORT TRAILER 1361391 CERT TRAILER `D UV-1 2007 KAWASAKI/MULE N/A MULE 231 D UV-2 2007 KAWASAKI/MULE N/A MULE 225 c� x a� c P-2 1946 SEAGRAVE 126921 (parade vehicle) to remain as property of CITY. MAR qq HAR 1• Date Fire Chief San Bernardino Co my Fire District 24 3.A.d N H Q1 O O 00 n LD Ln O 1, n ci N N Q1 Q1 OLn n -4 Ln 00 Ln 0 N I� M N Ol q M O D1 .--I O � c lD Ol m O l7 N O ^ � 00 O O O LD Ln LD oo N L6 O m rn �i t0 O p L LD O ci rl Ql O Ln Ql O .-i Q1 lD Ln N N r, ci N M 00 Q1 N O M O W m V' O 0 N Ln N ry m LD a> LD N n m m M 01 LL 00 I- n N N N LL N N m n Ooi O O^ M Oi 00 0 -1 N W N 00 V aN-I � f0 lD N Lr1 lD 00 LD Ql 11l to M o 00 tz Q N O L W n Q> lD Ln O Lr 00 V N Ln- Ol m O m 00 L L m N -i 00 a)O Q N 01 LL N 00 00 ^ N 1-1 N N M lfl N N ci LL N x as c c 0 Q N n rn N u N S M M N N�m LD m m Lr) cri G)00 m -i oO o Ln N 00 o n a co 00 m o m o in LD 00 ci a) O p o Ln Q1 00 00 o I I I O 00 N m LD C) L rM- C M lL"C LL N 1, N c-I N -I M N N 00 D D 1 .--I �..� •7 LL N d l O m 0N 0 o V '.--t I O rl w ei Q N Q1 m O lD rl 00 N O M 00 u Lrl Lr O N 'T o lD ci lD Ln Ln O Ln LD lD n l0 H O N to lD �F4 C14 OO LD OO oo Ln m a M N 00 00 e0 N n N rl N m LD 00 Ln LA. +-' LL C G d d In ++ LD O LD ci m LO 00 Ln V n � O� M 00 Ln Ln 1.0 Q) N O N Ln a cn o rry o LD o W o o m 00 00 00 o LD Ln O 00 00 N O m Oi 01 L O n N r N M r Ln c-I LD lD LD ^ m � N LT M G1 N Ln r, Ln Ln m a 'T m ci LD oo n w N Ln ci N 00 pp w LL N n n lD LD V N ri N c-I M M LL N !Q L d C O LD LD Ln r- m LD m Ln 00 d CD a)++ O 00 N 00 01 11 O Ln * V O O ul oO � m a r� o LD Ln Ln CK LD m d T a Lo a r v r`i r-i m o m o > O N O Q1 lD r 00 lD fl M V N m O D m LD d N L G. 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City funding to the Valley Service Zone will fund 36 new Captain position in the City and the 3 remaining 10 people will fill existing funded vacant Captain positions within County Fire. 2 The City currently has 30 Engineers and City funding to the Valley Service Zone will fund 36 Engineer 0 Positions. The vacancies will be filled with overtime until promotions can be made. Q c The City currently has 36 Firefighter Paramedics and City funding to the Valley Service Zone will fund 39 E Firefighter Paramedics and 3 Firefighters. The vacancies will be filled with overtime until new hiring. L a� Q The City has one Administration Analyst II that will come over as a Staff Analyst I funded by City funding to the Valley Service Zone. L The City has one Executive Assistant to Director that will come over as an Office Assistant III funded by City funding to the Valley Service Zone. m d The City has 3 Senior Administration Assistants who will be offered positions based on qualifications and fit into either one Fire Prevention Fee funded Office Assistant II position, one PFD Administration funded M Payroll Clerk position, or one FPD Administration funded Fiscal Assistant position in our warehouse. m U The Cities EMS Coordinator RN will come across as an FPD Administration funded EMS Nurse Educator for County Fire. cn w 0 The City currently has 3 Dispatch Supervisors, 8 Dispatcher II's, and 1 Dispatcher I. Con-Fire will be offering them all Call Taker or Dispatcher positions based on their qualifications with all being moved to a Dispatcher positions as soon as qualified. These positions are funded by the Con-Fire dispatch charge to County Fire. t .r The City has 1 Equipment Maintenance Supervisor, 2 Mechanic 11's, and 1 Mechanic I. They will all be a offered Fire Mechanic positions if qualified and County Fleet Mechanic position if not fire qualified. Two of the positions are new and will be funded by charges to the Station Expense budgets in the new City fire stations. The other two positions will fill vacant funded positions in County Fire. The City has a Senior Warehouse Driver that will be offered an FPD Administration funded Fire Equipment Technician position. n-1-46 n_ eo 3.A.d The Cities Fire Prevention Division has a Fire Marshal, one Risk Reduction Supervisor, and 4 Fire Prevention Supervisors. County Fire will staff the office with one Fire Prevention Supervisor, one Fire Prevention Specialist, and four Fire Prevention Officers. All existing City staff will be offered positions based on their qualifications with all of the positions funded by Fire Prevention Fees generated within the City. To find the funding in the Financial Forecast the positions shown as"Direct Valley Service Zone Funded" are listed on the top in "Staffing". Con-Fire funded positions are funded in the "Services and Supplies/ c Dispatch/MIS" cost line. Prevention Fee funded positions are listed in the staffing section and the 0 revenue is shown in the revenue section. FPD Administration funded or charged positions are funded m either directly through the "Overhead and Support" cost line or charged like mechanic services that are c charged to the "Station Expense" line. m U_ City Position #of County Direct Con-Fire Prevention FPD or EIMP Position Valley Charge Fee FIRD County 3 Service Funded Funded Charge Fire Q Zone Funded Position c� v « 0« 0 U) - 1 Captain 1 `� Deputy 1 Captain 1 6 Captain 6 Q 38 Captain 36 2 a - � 30 Engineer 30 W 36 Firefighter 36 1 Staff Ana. 1 1 L 1 OA 111 1 Adm.Asst. 3 OA 11 1 2 Payroll Clerk m Fiscal Asst. • ,L 1 EMS Nurse Ed. 1 �, D 3 Dispatcher 3 Dispatcher 11 8 Dispatcher 8 �•. 1 Dispatcher 1 1 Fire Mechanic 1 co 2 Fire Mechanic 1 1 0 1 Fire Mechanic 1 2 CL 1901 M12-30721 M- 1 Fr. Equip Tech 1 ;; �■ 1 Fire Prev. Sup 1 0 • 1 Fire Prev. Spec 1 • 4 Fire Prev. Off. 4 r • 141 104 12 7 6 12 09 .6d IG)Ped ¢J 4, co to Q1 r to to O O fD tD tD O to to J to w 0 w to to tD to tD tD CD tit Y r r n r O r N r r �` r r co r r r r r r C O N O r r t r r r r r r r O N O O r 0 0 0 0 0 0 N N O O O i 0 0 0 0 0 0 p ty N NNNN NNN NTr NNNN NNN NN NN N N NNN C. '/V `,f a a- Q a O O N O 4 �i N N f� P,�t- h r- e}' . r r M O M gyp r O 0 0 0 0 0 C = L r Q L N O N r 3 r N N N N _ N N N N N N � ul 9 °m �f d CD d N fA . =� ` a o s� m a d v � a ° U U s to C a o o y c c o U CD to u1 to N N !n N t m d m U 0 O C C m C m a m ca m m m a C C m x w cn e a a _ cr m m o A m �• t ,,;' m m m to .. 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E roma, Sn� waamO7ac o'o � O � ,N o d .n � cY N Q � -a -o c _ = c czo € € d cm m c m c o > v o m v c m ro v ,�:U CT m .S .E n D m =0 ° -j IL za � O � y � acnmm° � LLLLiiWwdaU00D 7 u ' 3 to 4'�. <D ro :-0 0 p: �C D p ❑ p, to - - ''' IFI HTI Y O vi a' m g,'i 4 � Y� m � c F"aiSl4 �F+ > , 0 f,G , a • c O d . t c m � 'a E T - Q ro m �i o � E F= 0 LL o t- a V. E N a0 Z W to o d to 00 0 00 0 0 0 0 1 0 00 0 0 N N N Q N N N N N N N N N N N . ik I h I^. N N ti .�- T eY et ti' 'a}' eF aj d' r r r N r r N N N N N N N N c Qi O C c r C C v C C C C C C � C C C C C C C C C C n Ku?= 7 � f (n C C C O c a m 0 CL LL LL N O '7 '7 n '7 0 (D m m 0 A W C CD _ m t 1 m to CD O m • :.: U 3 a N m • _ C (p O E j C W p N CL E N w a N a U) J N W C7 m � • ' `� � C C F � m otS CQ O N U Il C @ C N G O N O z 'i7 (a U) 'C a aa) N cp.0 a Q ~�, � N �• a N N D C [2 X Y > E <D O i N @ C O f6 N N 7 t6 N O U V D v � EDf LL _° C) (y C` < co x a°' o 0 o °' o CL a 0. c' \f s (� n W o z w o t= — w i N O Q I^ 0Z W U z —Hc Z9 -6d 18VEd I San Manuef Band of Mission Indians CERTIFICATE OF RESOLUTION Resolution No.2015-024 BUSINESS COMMITTEE 0 OF THE SAN MANTEL BAND OF MISSION INDIANS CD Conditional Consent to the Inclusion of the San Manuel Indian Reservation in San Bernardino County Fire Protection District (SBCFPD) Service Zone FP-5 for 0 Purposes of Fire Protection. WHEREAS, the San Manuel Band of Mission Indians (Tribe) is a federally 0 M recognized Indian tribe exercising sovereign governmental authority over its territory, members, and activities, including the San Manuel Indian L� Reservation; and WHEREAS, the Tribe provides fire services to the Reservation through the San Manuel Fire Department (8MFD); and C CD WHEREAS, the San Bernardino County Consolidated Fire District includes San Bernardino Community Service Area 38 (CSA 38), which was M I created in 1.969 and purportedly included the San Manuel Indian Reservation; > and WHEREAS, San Bernardino Local Agency Formation Commission CD M (LAFC0) is currently considering a proposal to include the entirety of the City > of San Bernardino ('City") within SBCFPD Service Zone FP-5, including as part 0 of such an overlay tribal lands comprising the San Manuel Indian. Reservation within the exclusive jurisdiction of the Tribe and the federal government; (D CL WHEREAS, LAFCO has requested the Tribe-'a consent to be included in =r the overlay of the reorganized fire district and for the City's assignment to 21 SBCFPD of City's existing Emergency Services Agreement with Tribe which > runs through June 30, 2017; and M X WHEREAS, the San Manuel Fire Department consulted with members of 0 the San Bernardino County Fire Department and LAFC0 regarding the operative impact of inclusion in the overlay; and WHEREAS, as part of the reorganized fire district, SMFD shall have continued access to additional equipment, personnel, and resources in the event of an emergency; and 2656.9 Comittunity C m, f V;rive • .17-4&4ild, CA9234 • • Office: (909)964-A93?, • EAX- t J 864-•3370 E9 '6d 18138d I Resolution No. 2015024 Page 2 of 3 WHEREAS, both SMFD and the County remain committed to maintaining the current cooperative relationship between each respective government agency; and WHEREAS, the County and LAFCO understand and agree that the 0 Tribe's inclusion does not subject it to County, or any other non-Tribal government's ordinances, regulations, taxes, or jurisdiction; and WHEREAS, the County and LAFCO further understand that the 0 inclusion does not subject the Tribe or its lands to the authorities granted to 4, CSA 38 or the reorganized fire protection district under California Health and Cn Safety Code § 13800 et seq., or to any other authority exercised under state or 0 local law unless expressly agreed to by the Tribe in writing and by a separately- approved Tribal.resolution designated for that purpose; and NOW THEREFORE BE IT RESOLVED, the San Manuel Band of Mission X Indians consents to the inclusion of the San Manuel Indian Reservation into the County Fire overlay, subject to the understandings, limitations and conditions provided herein, including without limitation the following: (D 1. This approval shall not be construed as the Tribe's consent to State or County jurisdiction over any matters, including, without CD limitation, fire prevention, fire inspection, fire code enforcement, permitting, administrative, or any other authority. 2. This approval shall not be construed as the Tribe's consent to any ordinance, code, law, or regulation enacted by the State, County or any of their affiliates, agencies, or related entities, or any other 0 non-Tribal governmental entity. rt 3. The Tribe's consent shall not be construed as explicit or implied consent to any authority exercised by any fire protection district pursuant to California Health and Safety Code § 13800 et seq. or 21 any other related state or County law or regulation. BE IT FURTHER RESOLVED, the powers exercised by the governing X bodies of San Bernardino County and SBCFPD are strictly limited to its 0 respective officers, employees, agents, personnel, assets and resources used to Z respond to emergencies. Under no circumstances shall such powers apply to the San Manuel Band of Mission Indians, the SMFD, its agents, officers, employees, personnel, assets or resources. BE IT FURTHER RESOLVED, when operating on the Tribe's lands, the management of emergency incidents involving SBCFPD resources shall be conducted using the Incident Command System with a SMFD officer as the wwe V9 13d IOVBd Resolution No. 2015-024 Page 3 of 3 Incident Commander in single jurisdictional incidents on the Tribe's lands. For those incidents occurring on or impacting both jurisdictions, such management shall be conducted with the Tribe and the local fire protection > district participating in a unified command structure. 0 BE IT FURTHER RESOLVED, Tribe consents to the assignment of the Emergency Services Agreement by City to SBCFPD for the duration, of its team; CD BE IT FURTHER RESOLVED, this consent shall be incorporated into and made a part of the LAFCO 3198 Reorganization Service Zone FP-5. 0 CD BE IT FURTHER RESOLVED, nothing contained in this consent shall be deemed to constitute a waiver or diminution of the Tribe's sovereign immunity fD 0 from unconsented suit. BE IT FURTHER RESOLVED, in the event any non.-Tribal governmental X entity (including without limitation, any State or federal court) shall CD < undermine, ignore or act contrary to any of the understandings, limitations or (D conditions of this Resolution, as determined in the Tribe's sole discretion, the (D Tribe reserves the right to withdraw its consent provided herein retroactively to the date of this Resolution or any such non-Tribal act.. b. CD BE IT FINALLY RESOLVED, both the Tribe and San Bernardino County will continue consultations in a government-to-government setting for the (D CD purposes of ensuring the continued safety of the San Manuel tribal community a and the citizens who visit Tribal lands. (D CERTIFICATION 0 By a vote of the Business Committee of the San Manuel Band of Mission CL Indians at a duly noticed meeting at which a quorum was present, held at approximately 10 a.m. on December 2, 2015 at the Tribal Community Center 21 on the San Manuel Indian Reservation, the above recited Resolution was passed by the Business Committee following a vote of 5 in favor, 0 against > and 0 abstentions. X 0 Dated: December 2, 2015 LYNN R. VALBUENA Tribal Chairwoman LOCAL AGENCY FORMATION COMMISSION FOR SAN BERNARDINO COUNTY 215 North "D" Street, Suite 204, San Bernardino, CA 92415-0490 (909) 388-0480 • Fax (909) 885-8170 E-mail. lafco@lafco.sbcounty.gov www.sbclafco.org DATE: JANUARY 20, 2016 2 FROM: KATHLEEN ROLLINGS-McDONA D, Executive Officer x SAMUEL MARTINEZ, Assistant Executive Officer = ROBERT ALDRICH, Consultant a MICHAEL TUERPE, Project Manager L U_ t TO: LOCAL AGENCY FORMATION COMMISSION a w U SUBJECT: AGENDA ITEM #7 - LAFCO 3198 — Reorganization to include y Annexation of the City of San Bernardino to the San Bernardino a County Fire Protection District, its Valley Service Zone and Service E Zone FP-5 a L N C R INITIATED BY: a� City Council of the City of San Bernardino and the Board of Directors for the San Bernardino County Fire Protection District RECOMMENDATION: M Staff recommends that the Commission take the following actions: Q as 1. Certify that LAFCO 3198 is statutorily exempt from environmental review, and direct the Executive Officer to file a Notice of Exemption within five (5) days- 3 Cn 0 2. Approve LAFCO 3198 with the following conditions: a J • Standard conditions for a change of organization. E • The effective date of this reorganization shall be no earlier than July 1, 2016, subject to completion of the terms and conditions outlined in this a resolution for approval as authorized by Government Code Sections 56886(p) and 57202. • Upon the effective date of the reorganization, the San Bernardino County Fire Protection District (SBCFPD) Valley Service Zone, as the Successor District to the fire and emergency medical response AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 obligations of the City of San Bernardino, shall succeed and/or be assigned all rights, duties, responsibilities, properties (both real and personal), contracts, equipment, assets, liabilities, obligations, functions, executory provisions, entitlements, permit and approvals of the City of San Bernardino Fire Department (City Fire). All property tax revenues attributable to the City of San Bernardino not designated in Condition No. 13 below, prior to calculations required by Section 96.1 0 of the Revenue and Taxation Code, including delinquent taxes and any x and all other collections or assets of City of San Bernardino, shall accrue and be transferred to the Successor Districts pursuant to a 56886(1). Said Successor Districts shall be subject to the terms and conditions contained herein. •3 • Upon the effective date of the reorganization including annexation, pursuant to the terms specified in the Plan for Service, attached as Exhibit "B" and the updated Transition Action Plan, attached as Exhibit N "C", all current City Fire Department employees, suppression, a prevention, and administrative, shall transfer to the San Bernardino County Fire Protection District Valley Service Zone with comparable E position classifications, rates of pay, accrued vacation and sick leave, i vacation and sick leave accrual rates, seniority rights, and shall become a subject to the terms and conditions set forth in said Plan for Service. All transferred employees shall be subject to the terms and conditions of the respective San Bernardino County Fire Protection District Memorandum of Understanding in place as of the effective date of the reorganization 3 including annexation for their successor classification. a� • Upon the effective date of the reorganization including annexation, pursuant to the terms specified in the Plan for Service and updated M Transition Action Plan, all current City Fire Dispatch employees shall transfer to the joint powers authority known as Consolidated Fire o Agencies (hereafter shown as "CONFIRE") with comparable position classifications, rates of pay, accrued vacation and sick leave, vacation and sick leave accrual rates, seniority rights and shall become subject to Cn the terms and conditions set forth in said Plan for Service. All transferred o employees shall be subject to the terms and conditions of the respective 0 Memorandum of Understanding in place as of the effective date of the reorganization including annexation for their successor classification. a� E • Prior to the issuance of the Certificate of Completion, the City of San Bernardino shall provide to the Executive Officer of LAFCO documentation that it has obtained a workers compensation tailing a insurance policy covering all worker compensation claims of all City fire suppression personnel and other City employees transitioning to County Fire and/or CONFIRE. 2 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 • Upon the effective date of the reorganization including annexation, the City of San Bernardino shall retain the obligations for unfunded retirement obligations, any contractual benefit following retirement such as health insurance maintenance or payment, or other contractual obligation approved by the City for all suppression, prevention, dispatch, and other City employees transitioning to County Fire and/or CONFIRE. 0 r • Upon the effective date of the reorganization including annexation, the X Successor District shall accept all facilities transferred from the City of = San Bernardino in "as is" condition (pursuant to Government Code a CD Section 56886(h). All assets including, but not limited to, equipment (vehicles, apparatus, supplies, etc.) rolling stock, tools, office furniture, fixtures and equipment, all lands, buildings, real and personal property 3 and appurtenances held by the City of San Bernardino for the purpose of providing fire protection and emergency medical response shall be 2 transferred to the Successor District, the Valley Service Zone of 0 SBCFPD. All quitclaim deeds to effectuate the transfer of land and/or a buildings and the title transfer documents for vehicles shall be prepared by the City of San Bernardino City Manager's office to be filed upon the effective date of the change with a copy provided to LAFCO. a� a • All equipment and fixtures, office furniture, real and personal property W' held by the City of San Bernardino for the purpose of providing fire and emergency medical response dispatching shall be transferred to CONFIRE, a joint powers authority providing for a centralized public ; safety communications system and a cooperative program of fire-related functions such as emergency operations. Upon the effective date of the (D reorganization including annexation, CONFIRE shall accept all equipment transferred from the City of San Bernardino in "as is" M condition (pursuant to Government Code Section 56886(h)). 0 • Pursuant to the provisions of Government Code Section 56886(e), the Q SBCFPD Board of Directors shall be required to create a new sub- service zone under FP-5 to reflect the City of San Bernardino territory. Cn After conclusion of the protest hearing pursuant to Government Code o Section 57000 et seq., but prior to the issuance of the Certificate of U_ Completion, as authorized by Government Code Section 56886(o), the Board of Directors of the SBCFPD shall provide the LAFCO Executive Officer with documentation identifying how the provisions contained in Health and Safety Code Section 13950 to form the new Service Zone of FP-5 to isolate the special tax revenue contributed by the territory within a the City of San Bernardino will be implemented by the District. All actions required by the SBCFPD to implement the special tax shall be completed prior to the August 8, 2016 due date for placement of the special tax on the tax rolls by the San Bernardino County Treasurer/Tax Collector. �....L..� �... C7 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 • Upon the effective date of the reorganization including annexation, the Successor District shall accept the administration of Community Facilities District #1033 (hereafter CFD 1033) from the City of San Bernardino terminating in Fiscal Year commencing July 1, 2033. The special tax levy for this entity shall be limited to the commercial, retail, office and industrial properties currently assessed or which will be developed in the c future pursuant to the terms specified in City of San Bernardino 0 Resolution No. 2004-210. All residential properties previously assessed X will be exempted from future assessments by Valley Service Zone _ administration of CFD 1033. All cash on hand or fund balance in the a accounts of CFD 1033 within the City of San Bernardino upon the effective date of LAFCO 3198 shall transfer to the administration of this CFD under the Successor District. All delinquent taxes and any and all 3 other collections or assets of CFD 1033 that may accrue shall be transferred to the Successor District pursuant to Government Code Section 56886(1). The revenues to be received by the Successor District N administering CFD 1033 are impressed with the public trust, use or a purpose as defined by City of San Bernardino Resolution No. 2004-210 and all transactions utilizing these funds shall be accounted for and E described in the annual audit and/or comprehensive financial reports recognizing CFD 1033 by the Successor District. a The future administration of CFD 1033 under the Successor L- District shall require that the Valley Service Zone, Successor District, participate in the development review process of the City of San Bernardino for any properties within the defined Verdemont Service Area, shown on Exhibit "D", for commercial, industrial retail or office uses. The City of San Bernardino shall be required to annex any commercial, industrial, retail or office parcels into CFD 1033 as a condition of development approval to be completed prior to the issuance M of the certificate of occupancy for said projects. t 0 • Prior to the issuance of the Certificate of Completion for the reorganization to include annexation, pursuant to the provisions outlined in Government Code Section 56886 (1), (o) and (s), the Commission N requires that the City of San Bernardino, County of San Bernardino, and O San Bernardino County Fire Protection District enter into a contract 0 which directs the Auditor/Controller/Treasurer/Tax Collector for San a J Bernardino County to provide for the calculation of property tax revenues to be transferred from the City's proceeds under the property tax in lieu of Motor Vehicle License Fees to the Valley Service Zone of SBCFPD, successor agency, as a replacement for the exclusion of the Inland Valley Development Authority (IVDA) territory within the City of San a Bernardino from the property tax transfer process in the manner presented below. This term and condition shall assure that there is no impairment of the Inland Valley Development Agency Tax Allocation Refunding Bonds Service 2014A and successor Agency to the Inland 4 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 Valley Development Agency Tax Allocation Refunding Bonds Service 2014B bond obligations: • The calculation shall use the following amounts to determine the transfer from proceeds of property tax swap in lieu of Motor Vehicle License Fees: (a) base property tax within the affected Tax Rate Areas (TRAs) within IVDA a part of the corporate limits of the City of o San Bernardino; (b) pass through payments, negotiated or statutory x within the defined TRAs; (c) residual distribution as a result of redevelopment dissolution within the defined TRAs; and (d) any other a property tax proceeds that would have come to the Valley Service Zone except for the exclusion of the IVDA area of the City of San Bernardino; and, 3 • The methodology outlined above shall be permanent and may only 2 be amended after the conclusion of the revenue bond pledge on or N after June 30, 2035 or if said revenue bond pledges are refunded or a refinanced by mutual agreement between the County of San Bernardino, the San Bernardino County Fire Protection District and E the City of San Bernardino. L a • Prior to the issuance of the Certificate of Completion for the reorganization to include annexation, pursuant to the provisions outlined r_ in Government Code Section 56886 (1), the Commission requires that the City of San Bernardino, County of San Bernardino, and San Bernardino County Fire Protection District enter into a contract which directs the Auditor/Controller/Treasurer/Tax Collector for San Bernardino County to direct that 35% of the City's total property taxes in lieu of Vehicle License Fees be transferred to the Valley Service Zone of SBCFPD, Successor M District, to fund the provision of fire protection and emergency medical � response services. This contract shall be perpetual and address the o needs for allocation of funds to replace the property tax in-lieu of Motor Vehicle License fees should the State of California make changes to this revenue stream legislatively. This amount is in addition to the amounts determined pursuant to the provisions of Revenue and Taxation Code o Section 99 for LAFCO 3198. U U_ Q J • The remaining payments, all rights and interests held or claimed by the City of San Bernardino Fire Department under all agreements and/or memoranda of understanding with any public agency or private entity, shall transfer to the Successor District, Valley Service Zone of the SBCFPD, excluding those contracts shown on Exhibit "E" for a termination. The Successor District, Valley Service Zone, shall also assume all joint use, maintenance, automatic aid or mutual aid agreements held by the City of San Bernardino Fire Department [(Government Code Section 56886(r)]. Amendments of existing agreements required for successful transfer shall be completed and 5 0-1-1. Dn CO AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 submitted to the Local Agency Formation Commission prior to the issuance of the Certificate of Completion to address any changes [Government Code Section 56886(r)(v)]. • The debt obligations of the transferring City of San Bernardino Fire Department shall be either be paid in full prior to the issuance of the c Certificate of Completion or assigned to the Successor District, the g Z Valley Service Zone of SBCFPD. The debt obligations to be paid X relate to the City's leaseback financing with the California Infrastructure = and Economic Development Bank and the lease through WESTNET. Q d L U. • Upon the effective date of this reorganization, the appropriation limit of San Bernardino County Fire Protection District, Valley Service Zone, 3 Successor District, shall be increased by $21,596,954 for Fiscal Year 2016-17 to recognize the anticipated first year proceeds of taxes for M the provision of fire protection and emergency medical response. N Q • Upon the effective date of this reorganization, any funds currently 5 deposited for the benefit of the City of San Bernardino Fire Department E which have been impressed with a public trust, use or purpose shall be ;v transferred to the Successor District, and said District shall separately a maintain such funds in accordance with the provisions of Government Code Section 57462. _ L • Upon the effective date of this reorganization, any funds currently deposited for the benefit of the City of San Bernardino Fire Department Community Facilities District 1033 which have been impressed with a public trust, use or purpose shall be transferred to the Successor District for its administration of Community Facilities District 1033, and M said Successor District shall separately maintain such funds in accordance with the provisions of Government Code Section 57462. o a a� • As of the date of approval of the reorganization by LAFCO through the effective date pursuant to the provisions of Government Code Cn 56885.5(a)(4), the City Council of the City of San Bernardino shall be o prohibited from taking the following actions unless it first finds an a emergency situation exists as defined in Government Code Section 54956.5, and it is supported by the San Bernardino County Fire Protection District: E a. No Increase in Compensation or Benefits: No increase in a calculation for payment of benefits or compensation for employees of the City Fire Department shall be allowed. Exceptions to this prohibition include planned and budgeted increases identified in the adopted budget for Fiscal Year 2015-16. 6 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 b. Bound by Current Budget: Appropriating, encumbering, expending, or otherwise obligating any revenue of the City Fire Department beyond that provided in the current budget at the time of Commission approval, except to include any budgetary adjustment due to the circumstances surrounding the December 2, 2015 terrorist attack, unless agreed to by the Successor District. ° X 3. Adopt LAFCO Resolution No. 3211 setting forth the Commission's determinations and conditions of approval concerning this proposal and a specifying that the protest period for this change of organization shall be 30 days. 3 a� BACKGROUND: 14 0 N In June 2014, Citygate Associates, a fire services consultant, completed a study ("2014 a Fire Services Deployment Study') evaluating the City of San Bernardino Fire (City Fire) Department. The Study described the City's fire department and community as under E "severe stress" from a combination of factors including: (1) a lack of economic investment, (2) the City's bankruptcy, and (3) a population experiencing high a unemployment (and a low median income) placing additional strain on City social, , recreation and community services. Staff reductions in the City Fire Department, combined with an exceptionally high volume of emergency medical calls and structure fires, have resulted in longer response times which threaten the health, safety and welfare of the City of San Bernardino residents. On May 18, 2015, the City Council of the City of San Bernardino adopted a Plan of Recovery and a Plan of Adjustment in support of the City's efforts to emerge from M bankruptcy. The City is both "service insolvent" (unable to pay for all of the costs of �'- providing services at the level and quality that are required for the health, safety and 0 welfare of the community) and "budget insolvent" (unable to create a balanced budget that provides sufficient revenues to pay for its expenses that occur within the budgeted period). The Plan describes in detail the City's inability to pay for adequate levels of municipal services, including fire protection and emergency medical services. Fiscal o projections within the Plan indicate that without fundamental and substantive changes in 0 its service delivery system, the City will be unable to move to a service and budget solvent municipality. w a� E Thereafter, the City conducted a Request for Proposal (RFP) process to outsource its fire protection and emergency medical response service. As many are aware, this process was fraught with legal questions for the Superior and Bankruptcy courts a submitted by the Fire Union representatives and others. City staff has reviewed several issues with LAFCO staff related to the outsourcing of its fire services, including: • What type of LAFCO review is required for contracting out City Fire operations? • Would transfer to a private fire service provider require review by LAFCO? 7 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 • What would be the timeline and review required by LAFCO for annexation of City Fire operations to the San Bernardino County Fire Protection District? Ultimately, it was identified that annexation was the best option for the City and the San Bernardino County Fire Protection District (hereafter referred to as "County Fire" or "SBCFPD") to pursue. On August 24, 2015, the City Council of the City of San Bernardino initiated the annexation of its corporate territory to County Fire. This action G was directly related to the City's Plan of Adjustment which identified the need to x outsource some of the City's services in order to redirect revenues to other core operations to address its service insolvency issue. a a� L Annexation of the City to County Fire will allow the City to take advantage of substantial economies of scale available from the District as well as existing fire stations and personnel located close to the City. Annexation also includes the inclusion of the City territory into one of County Fire's service zones ("Service Zone FP-5") with a pre- existing special tax that will be spread to City property owners to address service N delivery costs. This strategy will allow the City to reduce the level of revenue currently a allocated to fire service delivery and enable scarce revenue to be redirected to address other critical service needs in the community. E a� a� L At the heart of this discussion is the need to preserve the adequate delivery of fire a protection and emergency medical response to the citizens of the City of San Bernardino, a health and safety issue whose need has been laid out for all the world to see in the tragic events of December 2. It is a philosophically simple approach - provide F the most efficient and effective means to continue the service through annexation to County Fire. However, as staff has often outlined for the Commission, the "devil is in the details," and this proposal has some of the most unique details yet to be encountered by LAFCO. M M The narrative which follows provides a discussion of the mandatory factors of consideration as required by Government Code Section 56000 et al. The narrative o provides for a detailed analysis and discussion of the various aspects of the reorganization and its transition of City fire service to County fire service as a snapshot cc in time. This snapshot is represented by the revised Plan for Service submitted December 16, 2015. As with all applications for change of organization, the U) 0 Commission's review will center on making the required determinations in four areas: U a J 1. BOUNDARIES: Do the boundaries presented for the reorganization represent a division which makes sense from a service delivery perspective for current and future growth? Are E the boundaries definite, certain and easily recognizable? Do the boundaries promote efficient and effective service delivery? c a 2. LAND USE: Will approval of the proposal affect the land use authority or the decisions upon land use options? 3. FINANCIAL AND SERVICE CONSIDERATIONS: Does the reorganization represent the best available service option for the affected community? Does it provide for a more efficient and effective form of government? Can the annexing or successor district continue 8 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 .rte to provide the level of services which existed prior to the change? Would the approval of the reorganization impair the ability of any other agency to continue providing its range and level of services? 4. ENVIRONMENTAL: Will the proposed reorganization have an adverse environmental effect that cannot be mitigated to a level of non-significance? If it does, can those adverse effects be overridden by other benefits? o BOUNDARY DISCUSSION: _ _ Q d BOUNDARIES: Do the boundaries presented for the reorganization represent a LL division which makes sense from a service delivery perspective for current and future growth? Are the boundaries definite, certain and easily recognizable? Do 3 the boundaries promote efficient and effective service delivery? w The proposal, as submitted by the City and County Fire, anticipates the annexation of N the entirety of the City of San Bernardino to the San Bernardino County Fire District a Protection District and its Valley Service Zone (see Exhibit below) for the direct provision of fire protection and emergency medical response. The County Fire Valley E Service Zone is the defined successor agency to receive the assets and liabilities, responsibilities and obligations of the City Fire Department, while administrative a functions will be provided by the parent district, SBCFPD. d d M M O d w w m r.+ O U U. Q J _ d E t V R r Q 9 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 i o M j SBCFPD SBCFPD = f u- 5 % M N Q i C G? CITY OF E CITY OF HIGHLAND FONTANA RIALTO Q FPD • .�' N • • _ CITY OF L REDLANDS y /77�i CITY OF s. SBCFPD COLTON CITY OF LOMA LINDA " PIN LAFCO 3198—Reorganization to include Annexations to N the San Bernardino County Fire Protection District, its A Valley Service Zone and Service Zone FP-5 ® City of San Bernardino (Proposed Annexation to SBCFPD, its Valley Service Zone and Service Zone FP 0) D San Bernardino County Fire Protection District (SBCFPD) 0 U. SBCFPD -Valley Service Zone _ O City of Highland D City of Cotton LAFCO City of Redlands D City of Rialto E D City of Loma Linda 0 Fontana FPD V M r Q 10 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 The proposal also provides for annexation of the study area (i.e., the City of San Bernardino corporate boundaries) into County Fire's Service Zone FP-5, which collects a special tax from property owners to fund ongoing fire protection and fire paramedic services. The current rate for Service Zone FP-5 is $143.92 per parcel for Fiscal Year 2015-16. Annual increases cannot be increased more than 3% per year. If the maximum increase is approved for Fiscal Year 2016-2017, the first year of County c operations, the per parcel fee would be $148.23. x d _ a U- LAFco - i FPS a adH��,eo d l icou.ry c—a�at { `- I ueo 41 AVFPD C , Fa,rtycoK y G O L ppeerr - 1 H FqW - ! ,CQ..Ty C.—) m i ` M O N O LL f 1 f { �• N Legend = � I C__J FP-5 `.` f A City of San Bernardno S.B.County FPD(County Fire) V 1:500,000 San Bernardino County r r- 0 3.75 ZS 15 —Freeways Q ®qd ---Major Roads During the staff review process, one of the concerns identified was the need for transparency in the collection and use of the Service Zone FP-5 special tax applied to 11 Pnrkaf Pn 7r, AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 individual parcels within the City. In order to identify a means to isolate the revenues received within the City of San Bernardino territory, staff is proposing the inclusion of a condition of approval that will require the SBCFPD to create a subzone of FP-5 to address the area of the City of San Bernardino, LAFCO 3198 prior to placement of the special tax on the tax rolls. Staff is recommending that the Commission include a condition of approval outlining the process and requiring signed statements from SBCFPD (including the designation and map and legal of the subzone) be provided prior to the issuance of 0 r the Certificate of Completion for the reorganization. The language is: x a� • Pursuant to the provisions of Government Code Section 56886(e), the a SBCFPD Board of Directors shall be required to create a new sub-service zone under FP-5 to reflect the City of San Bernardino territory. After U_ conclusion of the protest hearing pursuant to Government Code Section 3 57000 et seq., but prior to the issuance of the Certificate of Completion as authorized by Government Code Section 56886(o), the SBCFPD Board of Directors shall provide the LAFCO Executive Officer with documentation N identifying how the provisions contained in Health and Safety Code Section a 13950 to form a new Service Zone of FP-5 to isolate the special tax revenue contributed by the territory within the City of San Bernardino will be E implemented by the District. All actions required by the SBCFPD to L implement the special tax shall be completed prior to the August 8, 2016 a due date for placement of the special tax on the tax rolls by the San Bernardino County Treasurer/Tax Collector. _ Tribal Lands: d _ The San Manuel Band of Mission Indians has its tribal lands located in the foothills of > aD the San Bernardino Mountains. The majority of these lands is unincorporated and were included in the San Bernardino County Fire Protection District during its reorganization M in 2008. However, there are portions of the tribal lands currently within the boundaries of the City of San Bernardino which are shown on the map below: 0 a a� w ea Cn''r^ O U U_ a J _ d L V a� a 12 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 SBCFPD TRIBAL LANDS MAP CITY OF o SAN BERNARDINO SBCFPD r d (City Fire) _ Q m L_ ILL i+ SBCFPD o _ 7 SAN a BERNARDINO m (City Fire) v L l— 7 CITY OF m SBCFPD !� SAN BERNARDINO c . (City Fire) m -` N LAFCO 3198 - Reorganization to include M A Annexations to the San Bernardino County Fire Protection District, its Valley Service Zone and Service Zone FP-5 0 CL a� Tribal Boundary-San Manuel Band of Mission Indians Original Tribal Boundary with Consent to County Fire Overlay M 4114k co City of San Bernardino Fire(Sphere Amendment/Reorganization Area) 0 LAFCO SBCFPD(County Fire) Q SBCFPD Valley Service Zone —I _ d E t V LAFCO staff has contacted the Tribal Council to request that it review the proposed a annexation and, if it does not object, provide a resolution to allow for the overlay of the San Bernardino County Fire Protection District within its tribal lands. On December 2, 2015, by Resolution No. 2015-024, the Tribal Council consented to the inclusion of its tribal area within County Fire. A copy of this resolution is included as a part of Attachment #2 to this report. 13 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 Based upon the review of the proposal, it is staff's position that LAFCO 3198 provides for a definite and certain boundary as required by LAFCO law for all the affected agencies, both Successor and continuing service providers. LAND USE: 0 LAND USE Will approval of the proposal affect the land use authority or the x decisions upon land use options? c Q The review and approval of LAFCO 3198 will have no direct effect on the land use U. designations assigned by the City of San Bernardino through its General Plan. The City w of San Bernardino is an entirely urbanized City that has a diverse mix of land uses, and 3 the need for the continuation of fire protection and emergency medical response are a health and safety issue of great importance to the City, the community and its surrounding service providers. The acreage and percentage of land uses within the City are listed in the table below: a r c aD City of San Bernardino - Land Use Acres Percent of Total E Residential 15,107 39.1% Business Related Uses (commercial, industrial) 9,198 23.8% a L Public/Quasi-Public Related Uses 12,542 32.5% w Open Space 1,733 4.5% TOTAL 38,580 100.0% ►= Source: City of San Bernardino Final EIR, Redevelopment Mergers and Amendments(2010) m m According to the State Department of Finance/Demographic Research Unit, the current population for the City of San Bernardino is 213,933 (1/1/2015). The Southern M California Association of Governments (SCAG), in its most recently adopted regional growth forecast, projects the City's population will increase to 261,400 (a 18 percent 1` increase) by year 2035. At build-out, the City projects a total population of 276,264 C residents. w The Southern California Association of Governments (SCAG) has adopted a Regional Cn Transportation Plan and Sustainable Community Strategy pursuant to the provisions of o Government Code Section 65352.5 and approval of LAFCO 3198 will have no direct a impact on those determinations. However, the Sustainable Community Strategy is required to assess the ability of an area to receive its required services in order to maintain its viability and a mitigation measure is anticipated in the 2016 RTP/SCS document to attempt to achieve appropriate funding for this service. Therefore, approval of LAFCO 3198 will assist in the implementation of the 2016 RTP/SCS. a The consideration and approval of LAFCO 3198 will have no direct impact upon land use decisions within the City of San Bernardino. 14 0.x-1,-* 0- 74 AGENDA ITEM#7- LAFCO 3198-- CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 SERVICE CONSIDERATIONS AND FINANCIAL EFFECTS: SERVICE AND FINANCIAL CONSIDERATIONS: Does the reorganization o represent the best available service option for the affected community? Does it provide for a more efficient and effective form of government? Can the annexing or successor district continue to provide the level of services which existed prior to = the change? Would the approval of the reorganization impair the ability of any a other agency to continue providing its range and level of services? L U_ SERVICE CONSIDERATIONS: Since the filing of the request for bankruptcy protection by the City of San Bernardino in N 2012, discussions regarding the continuation of fire protection and emergency response a services have remained at the forefront. The filing of the mandatory Plan of Adjustment by the City detailed the need to restructure through outsourcing the City's fire operations. E This was met with much concern from the Firefighters Union and the Department itself. The City's initial effort was to issue a Request for Proposal (RFP) to outsource the service a to a contract provider. Two responses were received - Gateway and County Fire, along with a plan submitted by City Fire itself. Through ensuing negotiations, County Fire = indicated that it would not be interested in a contractual service arrangement due to concerns regarding long-term funding and the potential for future actions which could change the contractual relationship to the detriment of County Fire, a board-governed special district. On August 24, 2015, the City Council adopted a resolution initiating the annexation M process for the City's territory along with the pursuit of an interim contract for transitioning the service to County Fire immediately. On September 15, 2015, the County Board of c Supervisors adopted a resolution initiating the annexation process, but made no direct C reference to the contracting process. On September 21, 2015, LAFCO circulated its Notice of Filing commencing the review process. 2 Cn 0 The proposal is to annex the corporate area of the City to SBCFPD, its Valley Service 0 Zone, and its Service Zone FP-5. The SBCFPD is the parent district and the ? administrative arm of the Board-governed fire protection district. The regional structure underlying SBCFPD provides for the tailoring of service delivery needs to the unique population, land use and geographic composition of each region: R Y • The Valley Region includes the County's more densely developed areas; a • The Mountain Region includes urban forested areas with year-round populations; and, • The two Desert Regions within SBCFPD serve two vastly different population needs: The North Desert region with the 1-15/1-40 transportation corridors 15 i AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 composed of largely of truck and rail traffic, and the South Desert region comprised of Colorado River recreational activities and other isolated desert areas. Transferring the responsibility of the City's territory to the Valley Service Zone will allow for the allocation of resources within the Valley to accommodate service need rather than by jurisdictional boundary. Conditions have been included in the staff recommendation to designate the successor agency and to address the assignment of these responsibilities. c X Key Commission Considerations a In evaluating the proposed reorganization, the most important considerations for the L Commission are to ensure that: (1) the service levels will, at a minimum, be maintained; (2) staffing from the City fire operations (including its dispatch operation) to County Fire and the Joint Powers Authority Consolidated Fire Agencies (known as CONFIRE) will a� transition seamlessly; and, (3) all active station locations will be accurately identified. The 2 Plan for Service and the updated Transition "Action Plan" outline the process for this N transition and acknowledge that all active duty City Fire suppression personnel will a transfer (with rank not to exceed Captain) with comparable County base salary and step except when the City salary exceeds the County Fire top step in a comparable position. E aD L All administrative office, training, fleet and prevention staff will transfer to County a operations. Upon the effective date of the reorganization, the City will pay to County Fire the cash value of up to 96 hours of vacation and sick leave per employee to the extent owed each individual employee through the "post-petition" values, which will be transferred to County Fire with the fiduciary responsibility to hold for payment the 3 compensated absences. "Post-petition" are those hours accumulated after the filing of the bankruptcy petition, or August 2012. Dispatch personnel will be transferred to CONFIRE, the joint powers authority which provides for a regional dispatch response. M Questions were reviewed by LAFCO, City and County staff related to retirement considerations, vacation balances and existing work compensation claims during the o transition process. Retirement obligations for unfunded liabilities will remain with the City as its safety and/or general contracts with the California Public Employees Retirement System (PERS) will continue, and the City will retain liability for any other pension benefit liabilities (OPEBs) such as health insurance maintenance, or other payments currently `n 0 considered a contractual obligation. The information presented in the Plan for Service U and Fiscal Impact Analysis (FIA) outlines this ongoing obligation to be $2,367,442 per J year for the City. All employees will be transferred to the San Bernardino County Employees Retirement System (SBCERA), a separate 1937 Act retirement system, with 4) reciprocity. City and Fire Union Litigation a Throughout this review process for annexation, the bankruptcy proceedings, and the RFP process, the Firefighters Union has been represented in discussions. The updated Action Plan outlines the process by which the matters related to transfer will be reviewed with employees, the obligations for transition, and the timeline for the matters to occur to 16 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 secure an estimated July 1, 2016 transition date. However, on January 4, 2016, staff received a letter from the City Attorney outlining existing and continuing litigation between the City and the Fire Union related to the "contracting" or outsourcing of fire responsibilities. The LAFCO proposal currently under consideration is not a contract but a jurisdictional change transferring permanently, without contractual right of termination, the o responsibilities for fire protection and emergency medical response along with the x employees for suppression, prevention, administrative and dispatch. While the City has undertaken and participated in a "meet and confer" process as directed by the Bankruptcy a Court related to its contracting process, LAFCO staff and Legal Counsel view the current process as being outside that realm but offering direct input into the review process including, but not limited to, the terms and conditions which can be addressed in the 3 jurisdictional change process and which are agreed to by the Board of Directors of the San Bernardino County Fire Protection District. Government Code Section 56886 (1) provides the legal authority for the Commission to address the transfer of employees and y reads as follows: a c (I) The employment, transfer, or discharge of employees, the continuation, modification, or termination of existing employment contracts, civil service rights, L seniority rights, retirement rights, and other employee benefits and rights. a L LAFCO staff along with representatives from the City, County, and County Fire have reviewed the transition plan to provide for the transfer of existing employees from the City Fire Department for both suppression and dispatch. The existing employment contracts will end upon the effective date of the reorganization as the employees will become part of the San Bernardino County Fire Protection District with its current Memorandum of Understanding, terms, and benefits. M In order to memorialize those actions necessary to move forward with this process, staff is recommending that the Commission include the following conditions in its approval: 0 a • Upon the effective date of the reorganization including annexation, pursuant to the terms specified in the Plan for Service, attached as Exhibit "B", and the r updated Transition Action Plan, attached as Exhibit "C", all current City Fire o Department employees, suppression, prevention, and administrative, shall U transfer to the San Bernardino County Fire Protection District Valley Service a Zone with comparable position classifications, rates of pay, accrued vacation and sick leave, vacation and sick leave accrual rates, seniority rights, and shall become subject to the terms and conditions set forth in said Plan for Service. All transferred employees shall be subject to the terms and conditions of the respective San Bernardino County Fire Protection District Memorandum of a Understanding in place as of the effective date of the reorganization including annexation for their successor classification. • Upon the effective date of the reorganization including annexation, pursuant to the terms specified in the Plan for Service and updated Transition Action Plan, 17 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 IL all current City Fire Dispatch employees shall transfer to the joint powers authority known as CONFIRE with comparable position classifications, rates of pay, accrued vacation and sick leave, vacation and sick leave accrual rates, seniority rights and shall become subject to the terms and conditions set forth in said Plan for Service. All transferred employees shall be subject to the terms and conditions of the respective Memorandum of Understanding in place as of the effective date of the reorganization including annexation for their successor 2 r classification. x a� _ _ • Prior to the issuance of the Certificate of Completion, the City of San Q Bernardino shall provide to the Executive Officer of LAFCO documentation that L- it has obtained a workers compensation tailing insurance policy covering all U- worker compensation claims of all City fire suppression personnel and other 3 City employees transitioning to County Fire and/or CONFIRE. U • Upon the effective date of the reorganization including annexation, the City of N San Bernardino shall retain the obligations for unfunded retirement obligations, a any contractual benefit following retirement such as health insurance maintenance or payment, for all suppression and other City employees E transitioning to County Fire and/or CONFIRE. Iv a Facilities Transfer U) In addition to concerns related to service delivery through the successful transition of employees is the transfer of facilities to support the operations. The Plan for Service ; identifies that the City will transfer ten fire stations, its fleet facility, its fire vehicles (excluding the 1948 Seagrave parade engine) and all appurtenant equipment to those facilities to County Fire Valley Service Zone. The City will not transfer Station 223 (located at 2121 Medical Center Drive) and Station 230 (502 South Arrowhead), both of M which are currently shuttered and not operating as a fire station. The fire station facilities are shown on the map below and in Attachment #1 to the staff report: o a a) ix tt w r 0 U U- 18 0�^I'-+ 0- Q9 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 223 - 230 _ R 4 (n ' a Fire Station Locations E Legend L City of S B.Fire Stations S County FPD(County Fire) IN City of S .Fire Stations to be Closed -City of Highland Q S B.County FPD Stations(County Fire)L—i City of Redlands �FCD —Freeways -City of Loma Linda Major Roads City of Colton 1:140,000 i � City of San Bernardino City of Rialto 0 125 2.5 5 d S.B.County FPD.valley service Zone -Fontana FPD(County Fire Contract) ®KM C d d r M M t1' In addition, the Verdemont Station is currently financed with leaseback financing through a the California Infrastructure and Economic Development Bank (1-bank). The terms of this contract allow for transfer of the obligation for its term (five more years), but the discussions with City administrative and fire personnel have identified that their in preference is to pay off the obligation prior to the effective date of the reorganization so 0 that the required funding for this obligation is not an amount transferred to County Fire. a The ten stations are proposed to be manned daily with 38 full time employees as outlined in the Plan for Service and shown below: E r a 19 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 Service and Staffing Plan Daily Staff configuration: Station 221 - 200 E. 3rd Street (APN 0135-181-63) Engine, Truck (CAP, ENG, FF/PM + CAP, ENG, FF/PM) c Station 222 - 1201 W. 9th Street (APN 0139-241-07) ° Engine (CAP, ENG, FF/PM) x a� c Station 224 - 2641 N. E Street (APN 0149-161-17) Q Engine, Truck (CAP, ENG, FF/PM + CAP, ENG, FF/PM) L i� z Station 225 - 1640 W. Kendall Drive (APN 0266-601-03) 3 Engine (CAP, ENG, FF/PM) Station 226 - 1920 N. Del Rosa Avenue (APN 0273-011-22) o Engine, Squad (CAP, ENG, FF/PM + FF/PM, FF) a Station 227 - 282 W 40th Street (APN 0154-211-17) Engine (CAP, ENG, and FF/PM) E $D L Station 228 - 3398 E. Highland Avenue (APN 0285-191-05) Q Engine (CAP, ENG, and FF/PM) , _ Station 229 - 202 N. Meridian Avenue APN 0142-051-13) L Engine (CAP, RNG, and FF/PM) ~ d Station 231 -450 E. Vanderbilt Drive (APN 0281-341-09) Engine (CAP, ENG, FF/PM) Station 232 - 6065 Palm Avenue (APN 0261-191-06) Engine (CAP, ENG, FF/PM) -- ° CL m All dispatch equipment and all appurtenant equipment used by City Fire dispatch personnel are proposed to be transferred to CONFIRE to continue the provision of o service. LAFCO staff and representatives from County Fire and CONFIRE are 0 addressing questions related to the necessary actions of the CONFIRE Board of Directors agreeing to the transfer, the definition of costs for the continuation of the services, and the acceptance of all equipment from the City Fire Department in "as is" condition. The Plan for Service outlines the transfer of personnel but shows the costs as an expense item. CONFIRE is proposed to take the necessary actions to address the transfer, costs, and equipment at its Administrative Committee meeting scheduled for January 26, 2016. An a update will be provided at the hearing. Regardless of the need for a supplemental action from CONFIRE, a condition of approval is proposed which addresses this transfer of responsibility. 20 0�n4n!Dn QA AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 To effect these changes, staff proposes the following conditions of approval: • Upon the effective date of the reorganization including annexation, the Successor District shall accept all facilities transferred from the City of San Bernardino in "as is" condition (pursuant to Government Code Section 56886(h). All assets including, but not limited to, equipment (vehicles, apparatus, supplies, etc.) rolling stock, tools, office furniture, fixtures and equipment, all lands, buildings, real and c personal property and appurtenances held by the City of San Bernardino as outlined in the Plan for Service for the purpose of providing fire protection and = emergency medical response shall be transferred to the Successor District, the a Valley Service Zone of SBCFPD. All quitclaim deeds to effectuate the transfer of land and/or buildings and the title transfer documents for vehicles shall be prepared by the City of San Bernardino City Manager's office to be filed upon the effective 3 date of the change with a copy provided to LAFCO. y fa U • All equipment and fixtures, office furniture, real and personal property held by the y City of San Bernardino as outlined in the Plan for Service for the purpose of a providing fire and emergency medical response dispatching shall be transferred to CONFIRE, a joint powers authority providing for a centralized public safety E communications system and a cooperative program of fire-related functions such L as emergency operations. Upon the effective date of the reorganization including a annexation, CONFIRE shall accept all equipment transferred from the City of San Bernardino in "as is" condition (pursuant to Government Code Section 56886(h). _ a FINANCIAL EFFECTS: d SBCFPD, working in conjunction with the City of San Bernardino, has submitted a Plan for Service, a Fiscal Impact Analysis (FIA) and updates to the Plan and FIA identifying the M expenditures and revenues for transferring its service responsibility to the Valley Service Zone of SBCFPD. The original Plan for Service has been revised to address issues o arising from the LAFCO review of this application. The following narrative will address the revised Plan for Service. As a starting point, it is important to understand the financial position of the City's fire o operation which resulted in the Plan of Adjustment's determination to outsource this 0 function. Staff requested that the City provide this information in an unaudited format as J its last two audits have not yet been accepted by the City. This information was received from the City as unaudited year-end totals from Urban Futures, the City's financial consultant for the past several years. The City Fire's historical expenditure data for 2011 through 2015 are shown below: a 21 AGENDA ITEM#7-LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20,2016 City of San Bernardino Fire Dept Historical Data - 2011 - 2015 2011 2012 2013 2014 2015 GENERAL FUND _ 0 REVENUES Property Taxes and Assessments - - - - - K d Charges for Services 1,985,659 1,830,679 1,582,978 1,559,461 1,537,035 = _ Intergovernmental 1,315,155 830,580 910,108 1,175,408 1,231,563 Q Contributions - - - 832 - Other 97,852 154,258 53,602 62,513 62,956 U. t Total Revenue 3,398,666 2,815,517 2,546,688 2,798,214 2,831,553 3 "a EXPENSES r Salaries and Benefits 30,850,786 31,583,593 28,112,048 22,735,612 24,882,806 ea Services and Supplies 1,130,737 1,403,838 632,519 3,497,919 2,895,837 N Debt Service 2,016,437 1,305,996 88,521 88,521 88,521 y Q Capital Outlay - - - - - C Total Expenses 33,997,960 34,293,427 28,833,088 26,322,053 27,867,164 Revenues over(under)Expenses (30,599,294) (31,477,910) (26,286,400) (23,523,838) (25,035,611) Q OTHER FUNDS w c REVENUES H Property Taxes and Assessments Charges for Services Intergovernmental d Contributions - - - - w Federal Grants(recoverable) 1,202,532 2,201,492 2,083,348 2,771,823 913,067 Other 42,473 (456) 2,947 397 (64) M Total Revenue 1,245,005 2,201,036 2,086,296 2,772,220 913,003 EXPENSES CL 4) Salaries and Benefits 1,323,036 1,539,483 2,627,163 3,373,558 884,907 Services and Supplies 432,666 503,796 16,691 22,463 9,923 as Debt Service 154,763 696,791 696,495 669,482 642,461 Capital Outlay - - - - - O Total Expenses 1,910,465 2,740,070 3,340,349 4,065,504 1,537,291 ILL Q J Revenues over(under) Expenses (665,460) (539,034) (1,254,054) (1,293,283) (624,288) C d E Grand Totals cc EXPENSE TOTALS 35,908,425 37,033,497 32,173,438 30,387,556 29,404,456 Q REVENUE TOTALS 4,643,670 5,016,553 4,632,984 5,570,435 3,744,557 CITY OBLIGATION TO 31,264,754 32,016,944 27,540,454 24,817,121 25,659,899 FIRE FUNDS source:City of San Bernardino 22 Pnrrlrof Pn AR AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 The historic finance materials received on December 15, 2015 from the City present a picture of continuing cuts to City Fire Department operations and the need for use of the entire proceeds of general ad valorem property tax (the general levy on the tax bill) and all of the proceeds of the Motor Vehicle License Fee swap for property tax revenues (these are described in more detail below). The City Historic Fire Financial data outlined in the chart under "Other Funds" shows a g significant debt obligation for the City's fire operations. It is related to the Verdemont x leaseback financing through the California Infrastructure and Economic Development Bank. Through negotiations with City and County Fire personnel and administration, this a debt obligation will be paid prior to the issuance of the Certificate of Completion. In addition, the City shall be responsible for payment of the amount owed to WESTNET for the Station Alert system through the expiration of the lease contract in July 2017. This, 3 too, will be required to be completed prior to the issuance of the Certificate of Completion. • The debt obligations of the transferring City of San Bernardino Fire N Department shall be either be paid in full prior to the issuance of the a Certificate of Completion or assigned to the Successor District, the Valley Service Zone of SBCFPD. The debt obligations to be paid relate to the City's E leaseback financing with the California Infrastructure and Economic L Development Bank and the lease through WESTNET. a L N The materials submitted by County Fire, as the amended Plan for Service and Fiscal Impact Analysis, identify that the annexation will provide for the continuation of service at = current levels. It is also estimated that the transition to County Fire will result in a reduction in response times through a consolidation of dispatch operations with CONFIRE, a Joint Powers Authority which currently provides multi-agency fire, rescue and emergency medical services dispatch services for the SBCFPD and the cities of M Colton, Loma Linda, Redlands and Rialto, which is an increase in service provided to the residents of the City. o n. CD Based upon the determination that the transition of service from City Fire to County Fire provides for an efficient and effective form of government to continue the range and level w of service currently provided and that it will not impair the ability of any other agency to be `n 0 provide its range and level of service, the Commission must now turn its attention to the U U_ financial consideration of the proposal. LAFCO staff has reviewed the financial materials submitted by representatives from the City and those submitted and signed by the Fire Chief for the San Bernardino County Fire Protection District, the County Administrative Office, CONFIRE, along with the several revisions processed for the FIA. The spreadsheet which follows outlines the Commission a required five-year financial projection as presented on January 19, 2016: 23 AGENDA ITEM#7-LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20,2016 Number FY 2015/16 2016/17 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 of Forecast Per City Budget Foremost Forecast Forecast Forecast Forecast Expenditures: Positions Position Inflation Rate 5.0% 2.0% 2.0% 3.0% 3.0% Staffing: Suppression Division Chief 0.93 298,880 277,958 283,517 289,187 297,863 306,799 Battalion Chief 2.79 269,726 752,536 767,587 782,939 806,427 830,620 Captain 36 214,386 7,717,896 7,872,254 8,029,699 8,270,590 8,518,708 Engineer 36 186,495 6,713,820 6,848,096 6,985,058 7,194,610 7,410,448 O Firefighter/Paramedic 39 164,714 6,423,846 6,552,323 6,683,369 6,883,870 7,090,386 M Firefighter 3 151,007 453,021 462,081 471,323 485,463 500,027 d Fire Prevention C Deputy Fire Marshal 1 231,659 231,659 236,292 241,018 248,249 255,696 Fire Prevention Supervisor 1 144,546 144,546 147,437 150,386 154,898 159,545 Q Fire Prevention Specialist 2 122,549 245,098 250,000 255,000 262,650 270,530 ` Fire Prevention Officer/Arson 1 191,805 191,805 195,641 199,554 205,541 211,707 LL Fire Prevention Officer 3 105,608 316,824 323,160 329,623 339,512 349,697 Fire Prevention Office Assistant II 1 60,440 60,440 61,649 62,882 64,768 66,711 Non-Suppression •�j Staff Analyst 1 0.93 93,329 86,796 88,532 90,303 93,012 95,802 '♦� Office Assistant III 0.93 60,645 56,400 57,528 58,679 60,439 62,252 4) TOTAL SALARIES ANDBENEFF 128.58 26,319,709 23,672,645 24,146,097 24,629,020 25,367,892 26,128,928 ,V O N Inflation Rate 2.0% 2.0% 2.0% 2.0% 2.0% N Operating Expenses Q Services and Supplies/Dispatch/MIS 3,058,063 2,534,749 2,585,444 2,637,153 2,689,896 2,743,694 C Station Expenses 825,752 2,143,275 2,186,141 2,229,863 2,274,461 2,319,950 Overhead and Support(1) 1,108,018 1,221,667 1,246,100 1,271,022 1,296,443 1,322,372 E TOTAL OPERATING EXPENSES 4,991,833 5,899,691 6,017,685 6,138,039 6,260,799 6,386,015 d CAPITAL IMPROVEMENT FUND(2) 18,221 1,839,330 1,876,117 1,913,639 1,951,912 1,990,950 Q City Debt Services 527,364 w TOTAL EXPENDITU RES 31,857,127 31,411,666 32,039,898 32,680,697 33,580,603 34,505,893 N C Revenues: Grants 0 0 0 0 0 d Ambulance Fees(3) 429,310 349,854 356,851 363,988 371,268 378,693 0 Charges for Service-General(4) 1,169,495 23,737 24,212 24,696 25,190 25,694 4) d Charges for Service-Govt.(5) 1,089,624 642,867 655,724 668,839 682,216 695,860 d CFD(6) 720,625 835,323 852,029 869,070 886,451 904,180 Fire Prevention Fees(7) 0 1,190,372 1,214,179 1,238,463 1,263,232 1,288,497 .. FP-5(8) 0 7,409,899 7,632,196 7,861,162 8,096,997 8,339,907 !� CO) Revenue Before Property Tax 3,409,054 10,452,052 10,735,192 11,026,218 11,325,354 11,632,831 !f Property Tax Required 28,448,073 20,959,614 21,304,706 21,654,479 22,255,249 22,873,062 V_ O CL 100%of City's Ad Valorem Property Tax Excluding IVDA Area 8,151,865 8,314,902 8,481,200 8,650,824 8,823,841 0) Other Property Tax Revenue 2,389,155 2,397,177 2,405,359 2,413,705 2,422,217 Total Property Tax 10,541,020 10,712,079 10,886,559 11,064,529 11,246,058 M In Lieu of VLF N Total City Property Taxes in lieu of VLF 18,743,853 19,118,730 19,501,105 19,891,127 20,288,949 0 Base Transfer%to County Fire of PT in lieu of VLF 35% 35% 35% 35% 35% 0 Base Property Taxes in lieu of VLF Transferred to County Fire 6,560,349 6,691,556 6,825,387 6,961,894 7,101,132 Q LL J Additional VLF to Replace Value of IVDA Ad Valorem Area 2,318,202 2,364,567 2,411,858 2,460,095 2,509,297 .i.i IVDA Negotiated Pass Through/Replaced with VLF 2,177,383 2,177,383 2,177,383 2,177,383 2,177,383 C TOTAL VLF TRANSFER TO COUNTRY FIRE 11,055,934 11,233,505 11,414,627 11,599,372 11,787,812 t V SBCFPD Total Transfer Revenue 21,596,954 21,945,584 22,301,186 22,663,901 23,033,870 M Valley Service Zone(9) 94% 20,301,136 20,628,849 20,963,115 21,304,067 21,651,838 Q Administration FPD(9) 6% 1,295,817 1,316,735 1,338,071 1,359,834 1,382,032 Yearly Net 637,340 640,877 646,707 408,652 160,808 Fund Balance 637,340 1,278,217 1,924,924 2,333,575 2,494,383 City Retained Costs One Time County Fire Startup Costs(10) 311,471 iBank Debt(11) 0 0 0 0 0 San Manual Contract(12) 86,333 0 0 0 0 Unfunded Pension Liability 2,367,442 2,367,442 2,367,442 2,367,442 2,367,442 Fleet Facility Lease/Purchase(13) 55,000 55,000 55,000 55,000 1,072,500 Westnet Final Purchase Payment 44,261 Total City Retained Costs 2,864,507 2,422,442 2,422,442 2,422,442 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 The notes to this chart are needed to fully understand the references. They are shown below: FOOTNOTES: c 1 FPD Administration Amount g 2 Vehicle/Station Replacement and Major CIP Projects X 3 Fee for Providing Liscensed Health Care (Average last 5 years) c a 4 Service Fees (Average last 7 years) (City# includes Prevention) y L 5 Strike Team, Airport, and other Reimbursements (3 Year Average) U_ t 6 Based on 2015/16 Assessed amount of 871,217 @ 94%collection + 2%for FY 2016/17 7 Based on our analyses of current services and our fees 8 Based on 53,180 taxable parcels @148.23 (Fy 2016/17 rate) with 94%collection a U 9 All revenue shall be split 94%to Valley Service Zone and 6%to FPD Administration 0 Costs to move dispatch, networks, equipment to County Fire, vehicles to meet County Q 10 Standards, Inspect repair items noted in station inspections by First Safety 11 City shall payoff prior to Reorganization ;_ 12 Contract Expires 6/30/2017 (Final Payment will be made by City to County Fire) m Final Payment of$1,072,500 due in 2020 (City shall Lease facility to County 13 Fire for$1.00 untill paid off then Quit Claim to County) y 14 Final Payment of 44,260.70 shall be paid by City prior to Reorganization H a� _ m This material has several nuances to the identification of both expenditures and revenues which are more fully described below. However, the basic information outlines the expenses and revenues which are proposed for the Valley Service Zone, successor M agency, for the boots on the ground operation of fire protection and emergency medical d:_ response within the City of San Bernardino. 1` 0 a a� Expenditures: Salary and benefit expenditures identified in the County Fire FIA shows the costs for fire suppression, prevention and administrative personnel tied to those activities. They o accommodate the transfer of 128.58 positions from City Fire (all the affected employees) but not the 12.42 dispatch personnel. Dispatch personnel are being transferred to CONFIRE, a joint powers authority providing regional dispatch services of which County Fire is a member. LAFCO staff has taken the information provided in the FIA and information provided by County Fire, County Administrative Office and City personnel to M provide more information on these aspects of the FIA. a Staffing: The FIA identifies the suppression, prevention and administrative personnel costs for the five years following transfer from City Fire. All employees within these categories are 25 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 included in this projection based upon the current County Fire Memorandum of Understanding in effect through July 2018. The Plan for Service identifies the transition plan for the employees including the requirement to pass a physical for all suppression and prevention employees. The terms of agreement with the City of San Bernardino is that the transfer of compensated absences (vacation, holiday time and sick leave) will be provided through a lump sum payment to County Fire for use by employees following transition. County Fire will be impressed with a public trust fiduciary responsibility to 0 protect these funds for the purpose which they were intended through a condition of x approval for LAFCO 3198. a Number 2016/17 W FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 •� of Forecast Per City Budget Forecast Forecast Forecast Forecast Forecast Expenditures: Positions Position •a Inflation Rate 5.0% 2.0% 2.0% 3.0% 3.0% Staffing: Suppression 0 O Division Chief 0.93 298,880 277,958 283,517 289,187 297,863 306,799 N Battalion Chief 2.79 269,726 752,536 767,587 782,939 806,427 830,620 Q Captain 36 214,386 7,717,896 7,872,254 8,029,699 8,270,590 8,518,708 .�., Engineer 35 186,495 6,713,820 5,848,096 6,985,058 7,194,610 7,410,448 C Q) Firefighter/Paramedic 39 164,714 6,423,846 6,552,323 6,683,369 6,883,870 7,090,386 E Firefighter 3 151,007 453,021 462,081 471,323 485,463 500,027 d Fire Prevention i Deputy Fire Marshal 1 231,659 231,659 236,292 241,018 248,249 255,696 Fire Prevention Supervisor 1 144,546 144,546 147,437 150,386 154,898 159,545 Q Fire Prevention Specialist 2 122,549 245,098 250,000 255,000 262,650 270,530 w Fire Prevention Officer/Arson 1 191,805 191,805 195,641 199,554 205,541 211,707 N C Fire Prevention Officer 3 105,608 316,824 323,160 329,623 339,512 349,697 !0 L Fire Prevention Office Assistant II 1 60,440 60,440 61,649 62,882 64,768 66,711 Non-Suppression d Staff Analyst 1 0.93 93,329 86,796 88,532 90,303 93,012 95,802 C Office Assistant III 0.93 60,645 56,400 57,528 58,679 60,439 62,252 Q) d TOTAL SALARIES AND BENEFITS 128.58 26,319,709 23,672,645 24,146,097 24,629,020 25,367,892 26,128,928 r M M d• In addition, the draft staff report for the CONFIRE Board consideration, dated January 26, o CL 2016, identifies the transfer of all dispatch personnel, the acceptance of all equipment, and outlines the actions necessary to accommodate this change, i.e., opening the High 4- 4- Desert Government Center Dispatch Center to free up space in the CONFIRE offices in Rialto. The materials address the staff's concerns that the JPA acknowledge and accept o the terms of the transition of employees and equipment. � a The materials provided in the FIA related to Operating Expenses were submitted with three line items only: Services and Supplies/Dispatch/MIS, Station Expenses and Overhead and Support. LAFCO staff requested additional information on the breakdown of the items which make up these expenditures totals and has updated the FIA chart to a reflect them. The LAFCO staff update is shown below: 26 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 2016/17 FY FY FY FY 2015/16 Forecast FY 2016/17 FY 2017/18 Number of Positions 2018/19 2019/20 2020/21 City Budget Per Forecast Forecast Forecast Forecast Forecast Expenditures: Position Inflation Rate 2.0% 2.0% 2.0% 2.0% 2.0% Operating Expenses = O Services and Supplies/Dispatch/MIS 3,058,063 2,534,749 2,585,444 2,637,153 2,689,896 2,743,694 Costs Allocation: Dispatch/MIS 1,571,544 1,602,975 1,635,035 1,667,736 1,701,090 X County Overhead 506,950 517,089 527,431 537,979 548,739 d C Equipment 177,432 180,981 184,601 188,293 192,059 Q Vehicle Maintanence 101,390 103,418 105,486 107,596 109,748 d Other Management Expense 50,695 51,709 52,743 53,798 54,874 Medical Expense 50,695 51,709 52,743 53,798 54,874 U. t Insurance 50,695 51,709 52,743 53,798 54,874 Information Services 25,347 25,854 26,372 26,899 27,437 Station Expenses 825,752 2,143,275 2,186,141 2,229,863 2,274,461 2,319,950 M Cost Allocation: Vehicle Maintenance/Fuel 921,608 940,041 958,841 978,018 997,579 O Miscellaneous 364,357 371,644 379,077 386,658 394,392 (0) Utilities 171,462 174,891 178,389 181,957 185,596 fn Q General Maintenance 171,462 174,891 178,389 181,957 185,596 = Insurance 171,462 174,891 178,389 181,957 185,596 d Equipment 150,029 153,030 156,090 159,212 162,397 d Medical supplies 107,164 109,307 111,493 113,723 115,998 4) Information Services 64,298 65,584 66,896 68,234 69,599 Q Clothing 21,433 21,861 22,299 22,745 23,200 L w Overhead and Support(Footnote 1 on master table) 1,108,018 1,221,667 1,246,100 1,271,022 1,296,443 1,322,372 = Cost Allocation: Administration 842,950 859,809 877,005 894,546 912,437 M Public Information Officer 61,083 62,305 63,551 64,822 66,119 ~ Human Resources 122,167 124,610 127,102 129,644 132,237 O Warehouse/Support Services 195,467 199,376 203,364 207,431 211,580 d 1 d TOTAL OPERATING EXPENSES 4,991,833 5,899,691 6,017,685 6,138,038 6,260,800 6,386,016 CAPITAL IMPROVEMENT FUND(2) 18,221 1,839,330 1,876,117 1,913,639 1,951,912 1,990,950 r TOTAL OPERATING EXPENSE AND CAPITAL M IMPROVEMENT FUND 5,010,054 7,739,021 7,893,802 8,051,677 8,212,712 8,376,966 O Q d The breakdown in the cost allocation categories identifies that the expenses for providing the services through County Fire are an increase in funding to provide for deferred Cn maintenance which the City, due to its financial position, was unable to fund and to set o aside revenues to accommodate needed capital improvements (new vehicles, equipment a upgrades, etc.). This brings the anticipated expenditures for the first five years of operation to an increase of more than $2,000,000 above the City cost for the preceding five year period. E It is the position of LAFCO staff that the expenditures identified in the FIA reflect the a anticipated costs for the operation and the maintenance of the level of service previously provided by the City and, in those instances identified, increases the service. REVENUES: 27 AGENDA ITEM#7- LAFCO 3198-- CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 The FIA, as amended, identifies the revenue streams to support the provision of service. Throughout the analysis process, LAFCO staff has raised questions and responded to concerns to assure that the FIA accurately reflects the revenue streams for this service. The proposal presents unique circumstances for the distribution of City revenue to County Fire for the delivery of fire protection and emergency medical response. 0 Revenues: Grants 0 0 0 0 0 X Ambulance Fees(3) 429,310 349,854 356,851 363,988 371,268 378,693 d C Charges for Service-General(4) 1,169,495 23,737 24,212 24,696 25,190 25,694 C Charges for Service-Govt.(5) 1,089,624 642,867 655,724 668,839 682,216 695,860 Q CFD(6) 720,625 835,323 852,029 869,070 886,451 904,180 L Fire Prevention Fees(7) 0 1,190,372 1,214,179 1,238,463 1,263,232 1,288,497 LL FP-5(8) 0 7,409,899 7,632,196 7,861,162 8,096,997 8,339,907 t Revenue Before Property Tax 3,409,054 10,452,052 10,735,192 11,026,218 11,325,354 11,632,831 d Property Tax Required 28,448,073 20,959,614 21,304,706 21,654,479 22,255,249 22,873,062 R_ U 100%of City's Ad Valorem Property Tax Excluding IVDA Area 8,151,865 8,314,902 8,481,200 8,650,824 8,823,841 N Other Property Tax Revenue 2,389,155 2,397,177 2,405,359 2,413,705 2,422,217 N Total Property Tax 10,541,020 10,712,079 10,886,559 11,064,529 11,246,058 Q C In Lieu of VLF d Total City Property Taxes in lieu of VLF 18,743,853 19,118,730 19,501,105 19,891,127 20,288,949 O Base Transfer%to County Fire of PT in lieu of VLF 35% 35% 35% 35% 35% i Base Property Taxes in lieu of VLF Transferred to County Fire 6,560,349 6,691,556 6,825,387 6,961,894 7,101,132 Q L Additional VLF to Replace Value of IVDA Ad Valorem Area 2,318,202 2,364,567 2,411,858 2,460,095 2,509,297 0) IVDA Negotiated Pass Through/Replaced with VLF 2,177,383 2,177,383 2,177,383 2,177,383 2,177,383 fn C t4 L TOTAL VLF TRANSFER TO COUNTRY FIRE 11,055,934 11,233,505 11,414,627 11,599,372 11,787,812 �- d SBCFPD Total Transfer Revenue 21,596,954 21,945,584 22,301,186 22,663,901 23,033,870 C Valley Service Zone(9) 94% 20,301,136 20,628,849 20,963,115 21,304,067 21,651,838 (D Administration FPD(9) 6% 1,295,817 1,316,735 1,338,071 1,359,834 1,382,032 4) Yearly Net 637,340 640,877 646,707 408,652 160,808 r M M Fund Balance 637,340 1,278,217 1,924,924 2,333,575 2,494,383 O Q. d Those unique circumstances are described in more detail below: w M i.d Property Tax for Motor Vehicle In Lieu Transfer 0 U U_ During the processing of the proposal through the mandatory Revenue and Taxation Code Section 99 negotiation process, it was determined that the property tax receipts for the City of San Bernardino are comprised of general ad valorem taxes, subject to R&T Section 99, and property tax in lieu of Motor Vehicle License Fees. The first is transferred as a function of the negotiation process; the latter, however, cannot be transferred directly to a special district. In order to provide for the level of funding necessary to sustain the Q operations being transferred to County Fire, a contractual agreement is required between the City of San Bernardino, the Valley Service Zone of SBCFPD, and the County Auditor- Controller specifying that 35% of the property tax proceeds from the swap of Motor Vehicle License Fees attributable for the City of San Bernardino will be directed to the Valley Service Zone for the fire operations delivered to the City. Staff has expressed its 28 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 concern that, as with so many things, what the State giveth it can take away. In response to that concern the proposed contract, currently in draft form, addresses that should there be a change in the method by which these revenues are calculated, the Valley Service Zone of SBCFPD shall receive an equivalent amount from the new calculation. The proposed condition of approval to memorialize this agreement is: • Prior to the issuance of the Certificate of Completion for the reorganization to 2 4� include annexation, pursuant to the provisions outlined in Government Code x Section 56886 (i) the Commission requires that the City of San Bernardino, County of San Bernardino, and San Bernardino County Fire Protection District a enter into a contract which requires the Auditor/Controller/Treasurer/Tax L Collector for San Bernardino County to direct that 35% of the City's total property taxes in lieu of Vehicle License Fees be transferred to the Valley 3 Service Zone of SBCFPD, Successor District, to fund the provision of fire protection and emergency medical response services. This contract shall be M perpetual and address the needs for allocation of funds to replace the y property tax in-lieu of Motor Vehicle License fees should the State of a California make changes to this revenue stream legislatively. This amount is in addition to the amounts determined pursuant to the provisions of Revenue E and Taxation Code Section 99 for LAFCO 3198. a� a IVDA Property Tax and Incremental Transfer N C In addition, to the item identified above, staff also learned late in December that the provisions of the Joint Powers Agreement with the Inland Valley Development Authority (a redevelopment entity originally formed to address the transition of Norton Air Force Base) does not allow for the property tax base and increment portion of the ad valorem taxes allocation to the City of San Bernardino to be transferred to County Fire. The language of this agreement and the recent refinancing of the revenue bonds for the Authority require M that for those areas within the IVDA the City must retain this funding and the direction of the revenue bonds that pledge the increment to repayment of the bonds. Government o Code Sections 56121 and 56122 requires that the Commission make the determination C that no bond or contractual obligation be impaired by an action before it. Therefore, after much negotiation, it has been determined that a contractual arrangement be entered into to provide the sum equivalent to the property tax, increment, and pass through funding o that would have been transferred to County Fire. In order to move forward with the determination that the transfer of operations is sustainable, a mechanism for transfer of an equivalent sum from a different source must be determined by the Commission and the affected agencies. The map below delineates the area within the boundaries of the City E of San Bernardino that is within IVDA. Q 29 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 .. : ...: ...... ... .... 1 0 .................................................. ................................................ ............................................... :I a i {l L ii. .. ...: ..... •� E L a L Legend N IWA IVDA Boundaries within the City L City ofSan Bernardino G3 Freemys Major R.ads ; d r M M et Staff could find no precedent for determining a method to address this issue-, however, through negotiations with IVDA, County Administrative Office, City of San Bernardino, and C County Fire, a contractual basis for transfer has been proposed that addresses the provision of an equivalent sum from property taxes in exchange for Motor Vehicle License fees during the term of the revenue bond pledge (expiring in 2035) for the property taxes, CIO increment and pass-through that would have been exchanged if the standard property tax o transfer process for the reorganization were to have been completed. Therefore, staff is J proposing a condition of approval that reflects the agreements of the County Administrative Office, County Fire, City of San Bernardino and IVDA for these contractual E transfers within the IVDA area. • Prior to the issuance of the Certificate of Completion for the reorganization to a include annexation, pursuant to the provisions outlined in Government Code Section 56886 (1), (o) and (s), the Commission requires that the City of San Bernardino, County of San Bernardino, and San Bernardino County Fire Protection District enter into a contract which directs the Auditor/Controller/Treasurer/Tax Collector for San Bernardino County to provide 30 AGENDA ITEM#7- LAFCO 3198-- CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 for the calculation of property tax revenues to be transferred from the City's proceeds under the property tax in lieu of Motor Vehicle License Fees to the Valley Service Zone of SBCFPD, successor agency, as a replacement for the exclusion of the Inland Valley Development Authority (IVDA) territory within the City of San Bernardino from the property tax transfer process in the manner presented below, This term and condition shall assure that there is no impairment of the Inland Valley Development Agency Tax Allocation Refunding o Bonds Series 2014A and Successor Agency to the Inland Valley Development x Agency Tax Allocation Refunding Bonds Series 2014B bond obligations:: a • The calculation shall use the following amounts to determine the transfer i from proceeds of property tax swap in lieu of Motor Vehicle License Fees amount: (a) base property tax within the affected Tax Rate Areas (TRAs) 3 within IVDA a part of the corporate limits of the City of San Bernardino , (b) pass through payments, negotiated or statutory within the defined TRAs; (c) residual distribution as a result of redevelopment dissolution within the N defined TRAs; and (d) any other property tax proceeds that would have a come to the Valley Service Zone except for the exclusion of the IVDA area of the City of San Bernardino; and, E a� a� • The methodology outlined above shall be permanent and may only be a amended after the conclusion of the revenue bond pledge on or after June 30, 2035 or if said revenue bond pledge is refunded or refinanced by mutual = agreement between the County of San Bernardino, the San Bernardino F County Fire Protection District and the City of San Bernardino. Transfer of CFD Community Facilities District #1033 was formed by the City Council of the City of San M Bernardino in 2004 under Resolution No. 2004-10. The engineering report included with that Resolution identifies the CFD special tax was to provide for funding to build, equip c and man the Verdemont Fire Station and defines the standards of service that were to be C met. The map below identifies the Verdemont service area and the actual parcels paying the annual special tax. As the map reflects, only a limited number of parcels within the w service area pay the special tax and LAFCO staff requested that the City of San 0 Bernardino provide documentation of the limitation of funding resources. 0 a J _ d E L V R Q 31 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 c O X (D ii ;tom cts U j O � N 1 ` d L N JT _ to L CITY OF SAN BERNARDINO CFD#1033 ~ (Verdemont Fire Station) > w cAO O Verdemort Service Area L�j Annexation Data Not Provided d V6/yirb�y Annexation Areas(09106/2011) Parcel Boundanes Parcels Currently Assessed(284) V- 0 sZ After months of discussions with City personnel, on January 15, 2016, LAFCO staff received a letter from the City Attorney stating that while the City believes that all appropriate residential and commercial development has been included in the CFD, it cannot provide an explanation of the number of tracts not currently paying. LAFCO staff had questioned the following tracts, but has no identification of individual residential units a built during the period 2004 to 2015: J (D E Q 32 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 0 to Tract 14604 k ?f'. ConsUEffv \\ Tract 15226 Tract 14352 l Const/Effv-2006 LL ConsUff Ev-200 6 Tract 13630 \, Const/Etfv-2006 3 Tract 16547 d Tract 16795 ConsUEffv-2006 M ConsUEffv-2007 V W \ d Const/Etfv-2013 y a L i i Tract 16443 Const/Efty-2005-06 %lA'\ ConsUEffv-2005 'd N N \ � V -(� _ a'� J CITY OF SAN BERNARDINO CFD #1033 d TIM (Verdemont Fire Station) W w M LAFCO Verdemont Service Area Q Post CDF Developed Parcels - 0 Parcels Currently Assessed(284) Parcel Boundaries Q LL Q J C d >_ t V The City of San Bernardino is currently working to reconcile the parcels developed and assessed. However, staff has concerns for the means to transfer the administration of Q CFD 1033 to the Valley Service Zone of SBCFPD, as the successor, if these questions on administration remain. Government Code Section 56886(u) provides the statutory authority for the Commission to transfer this Mello-Roos District and it reads as follows- 33 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 (u) The transfer of authority and responsibility among any affected cities, affected counties, and affected districts for the administration of special tax and special assessment districts, including, but not limited to, the levying and collecting of special taxes and special assessments, including the determination of the annual special tax rate within authorized limits; the management of redemption, reserve, special reserve, and construction funds; the issuance of bonds which are authorized but not yet issued at the time of the transfer, including not yet issued portions or o phases of bonds which are authorized; supervision of construction paid for with bond x or special tax or assessment proceeds; administration of agreements to acquire public facilities and reimburse advances made to the district; and all other rights and Q responsibilities with respect to the levies, bonds, funds, and use of proceeds that a, would have applied to the local agency that created the special tax or special ii assessment district. •3 The language addresses the ability of the Commission to transfer this authority as well as to determine the "levying and collecting of special taxes and special assessment, U including the determination of the annual special tax rate within authorized limits". Due to N the issues involved with the administration of CFD 1033 and the component of the a reorganization proposal to include a per parcel charge for funding of fire protection, staff is proposing a condition of approval to transfer CFD 1033 for administration by the Valley Service Zone of SBCFPD but only for the commercial and industrial parcels currently , assessed and those which will be developed in the future. This would remove the $435 a L per parcel residential special tax which will be replaced with the $144 FP-5 charge. The N financial change for Fiscal Year 2015-16 is shown below: L d L. Number of Parcels Per parcel charge Total Revenue in 2015-16 Residential -- 127 parcels $435.18 $55,310 Commercial/Retail/ Per acre charge in 2004-05 was $815,949 c Office/Industrial -- 11 parcels $2,445 The loss of $55,310 is not considered to be substantial to the operations of the CFD and a the Valley Service Zone as its successor, especially in light of the additional Valley Service Zone revenues available from the unincorporated islands for delivery of service outlined below. The staff is proposing the following condition to address this change: Cn 0 U Upon the effective date of the reorganization including annexation, the a Successor District shall accept the administration of Community Facilities J District #1033 (hereafter "CFD 1033") from the City of San Bernardino terminating in Fiscal Year commencing July 1, 2033. The special tax levy for this entity shall be limited to the commercial, retail, office and industrial properties currently assessed or which will be developed in the future pursuant a to the terms specified in City of San Bernardino Resolution No. 2004-210. All residential properties previously assessed will be exempted from future assessments by Valley Service Zone administration of CFD 1033. All cash on hand or fund balance in the accounts of CFD 1033 within the City of San Bernardino upon the effective date of LAFCO 3198 shall transfer to the 34 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 administration of this CFD under the Successor District. All delinquent taxes and any and all other collections or assets of CFD 1033 that may accrue shall be transferred to the Successor District pursuant to Government Code Section 56886(1). The revenues to be received by the Successor District administering CFD 1033 are impressed with the public trust, use or purpose as defined by City of San Bernardino Resolution No. 2004-210 and all transactions utilizing these funds shall be accounted for and described in the annual audit and/or g comprehensive financial reports recognizing CFD 1033 by the Successor x District. _ The future administration of CFD 1033 under the Successor District shall a require that the Valley Service Zone, Successor District, shall participate in the L development review process of the City of San Bernardino for any properties U- within the defined Verdemont Service Area, shown below, for commercial, 3 industrial retail or office uses. The City of San Bernardino shall be required to annex any commercial, industrial, retail or office parcels into CFD 1033 as a condition of development approval to be completed prior to the issuance of the N certificate of occupancy for said projects. a d d I L a y. d W +v c m �\ M � M O � d w Cn O U U- f Q J N d V Q CITY OF SAN BERNARDINO CFD 111033 (Verdemont Fire Station) �lAO Verdemont Sere oe Area City of San Bemardino nY rrVV=hW Annexation Areas(09W120111 Parc lBoundares 35 Dmrkof Dn GO AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 Valley Service Zone Area: SBCFPD and its Valley Service Zone are currently located within the unincorporated area which is defining the general area to receive service by annexation of the City of San Bernardino. Specifically on the map shown above, the peninsula of unincorporated area along Kendall Avenue is within the Valley Service Zone. In addition, the San Bernardino 0 islands, the subject of a revenue contract with the City of San Bernardino to provide for x the eastern islands and Arrowhead Suburban Farms, are also within the Valley Service Zone. Those island areas are shown on the map below: a a� L U- N 'C - ac H SBCFPD `-° Arrowhead U Subur6W N Farms 40 Q TH d CITY OF SAN BERNARDINO `' 4) a� Q L Z HIGHLAND Q w d BAS Q j � d d M ° clnr of � HIGHLAND `� O CL 4 d (ALTO 2 m r 0 U U- N LAFCO 3198—Reorganization to include Annexations to A the San Bernardino County Fire Protection District, its Valley Service Zone and Service Zone FP-5 Q Unincorporated Island Areas within the City of San Bernardino Under Contract _ SBCFPD Service Zone PM-2 ® SBCFPD-Valley Service Zone Q LAFCO D San Bernardino County Fire Protection District(SBCFPD) City of San Bernardino City of Highland Fire(CDF) 36 1113-11-6 0- AAA AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 The significance to the present discussion is that the revenues currently attributable to the SBCFPD parent district for administration are estimated at $202,525 and the SBCFPD Valley Service Zone at $916,813. Also to be included in service delivery mechanism is the special tax for County Fire Service Zone PM-2 (paramedic tax within the six islands). This is an annual receipt estimated at $106,712. These funds, totaling $1,226,050, will also be available for use in supporting the fire protection and emergency medical response within the overall San Bernardino community. o X Transfer of Contracts = a There are a number of contracts which have been entered into between the City of San Bernardino on behalf of its Fire Department for such matters as mutual aid, joint powers authorities, and the provision of a range of out-sourced services. As a part of the 3 consideration, the Commission must make a determination regarding the transfer of the contracts (copies of the contracts proposed for termination are included as Attachment #7 to this report). The staff is proposing the inclusion of the following condition to reflect 0 these determinations: a • The remaining payments, all rights and interests held or claimed by the City of E San Bernardino Fire Department under all agreements and/or memoranda of L understanding with any public agency or private entity, shall transfer to the a Successor District, Valley Service Zone of the SBCFPD, excluding those contracts shown on Exhibit "E" for termination. The Successor District, Valley Service Zone, shall also assume all joint use, maintenance, automatic aid or mutual aid agreements held by the City of San Bernardino Fire Department [(Government Code Section 56886(r)]. Amendments of existing agreements required for successful transfer shall be completed and submitted to the Local Agency Formation Commission prior to the issuance of the Certificate of Completion to address any changes [Government Code Section 56886(r)(v)]. M t 0 City of San Bernardino Fire Contracts Contract Description Term SBCFPD to Transfer o, 2 Terminate 0) City of San Bernardino and Wildan and Through 9/30/2017 Terminate 6/30/2016 0 CSG Consultants for plan review, inspection J building official and counter services Contract Emergency Services Director for 6/30/2015 with two, one Terminate 6/30/2016 City year extensions E City of San Bernardino and Rancho 1/2008 until terminated Terminate 6/30/2016 Santiago College District for fire personnel a train in /education City of San Bernardino and Advance Data Until 6/2013; unclear if thre Terminate 6/30/2016 Processing — provides billing services for single year extensions City were approved Fire 37 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 City of San Bernardino and Fire Recovery 7/1/2013 — 6/30/2014 with Contract expires 6/30/16 USA— provides billing services for traffic three, one year and will not transfer control and vehicle extraction services extensions City of San Bernardino and SBCFPD; 2/1/14-1/31/2017 Contract expires County Fire District provides emergency 6/30/2016; SBCFPD will management services within City assume this responsibility boundaries contract will not transfer c City of San Bernardino and Westnet, Inc; 7/1/2014 until terminated City will fund final paymer provides warranty and maintenance of fire prior to issuance of d station alarm systems Certificate of Completion /County to manage until d 7/11/2017 U_ t City of San Bernardino and Amerik Medical Unknown City to terminate Billing agreement prior to issuance of Certificate of m Completion 0 City of San Bernardino and SBCFPD to 7/1/2011 —6/30/2016 Valley Service Zone a provide fire protection and paramedic becomes provider of services to unincorporated areas with the service, contract no longe San Bernardino's sphere of influence necessary. a) CD L Q L Cities of San Bernardino, Colton, Loma 6/1972 — no end date Contract stays in place; 2D Linda, Redlands and Rialto and the Fire specified no impact on master Districts of Bloomington, Fontana and mutual aid agreements F= Muscoy— supplemental fire protection and mutual aid services City of San Bernardino and San Bernardino 2/4/2004 until either party Transfer 7/1/2016 International Airport Authority—fire station terminates lease (aircraft fire crash rescue facility) M City of San Bernardino and San Manuel 7/1/2007 — 7/1/2017 Transfer 7/1/2016 Band of Mission Indians —fire, EMS, dispatching, fire equipment maintenance, o CL etc. City of San Bernardino, San Bernardino Unknown Transfer 7/1/2016 Community College and Crafton Hills Cn Community College p City of San Bernardino and Department of Unknown Transfer to County U_ State Hospitals — Patton 7/1/2016 City of San Bernardino and US Department 10/11/2014 through Transfer 7/1/2016 of Agriculture/National Forest Service 10/11/2019 cooperative agreement—fire and rescue services with mutual threat zones JPA (City of San Bernardino, County of San Entered 6/1998 until SBCFPD will assume City Q Bernardino and Santiago Community revenue bonds are paid portion of contract College District) to create the San Bernardino Regional Emergency Training Center 38 Pnekat Pn 1A9 AGENDA ITEM#7- LAFCO 3198-- CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 It is the position of LAFCO staff that the approval of this reorganization will provide for the continuing delivery of fire protection and emergency medical response service within the corporate boundaries of the City of San Bernardino at the same level as received in the past and in some aspects of service will improve. As required by Commission policy and State law, the revised Plan for Service and Fiscal Impact Analysis submitted by County Fire shows that the delivery of service can be maintained following reorganization. 0 Given the staff's support for the reorganization, the Commission will now need to address x the terms and conditions that are required to effectuate the change not otherwise outlined in the narrative above. Specifically, the terms and conditions will address the transition of a service, transfer of obligations, discussion of assignment of special taxes and more. First, staff is recommending that the effective date be set as July 1, 2016, or as soon as the terms and conditions of the approval can be met. This will allow for a clean break in 3 financial operations and allow for a clean audit trail. Next, conditions will need to be applied to transfer operations, facilities, and debt to the N Valley Service Zone for the continued operation. All in all, a number of specific conditions a are needed to accommodate the dissolution and assumption of service. The full range of conditions is outlined as follows: E a� L • Upon the effective date of this reorganization, the appropriation limit of San a Bernardino County Fire Protection District, Valley Service Zone, Successor ,a) District, shall be increased by $21,596,954 for Fiscal Year 2016-17 to recognize the anticipated first year proceeds of taxes for the provision of fire protection and emergency medical response. ; a� • Upon the effective date of this reorganization, any funds currently deposited for the benefit of the City of San Bernardino Fire Department which have been M impressed with a public trust, use or purpose shall be transferred to the Successor District, and said District shall separately maintain such funds in accordance with the provisions of Government Code Section 57462. C • Upon the effective date of this reorganization, any funds currently deposited for the benefit of the City of San Bernardino Fire Department Community Facilities 0 District 1033 which have been impressed with a public trust, use or purpose a shall be transferred to the Successor District for its administration of Community J Facilities District 1033, and said Successor District shall separately maintain such funds in accordance with the provisions of Government Code Section 57462. f° w a The final element that will need to be addressed is that during the transition period State law specifies that the dissolving entity be limited in its authority for expenditures and encumbering obligations. Therefore, staff is recommending that the following condition be included to address this issue which will limit the City from the point in time that the 39 n__I._a n- ann AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 Commission approves the reorganization (adoption of its resolution) through the effective date proposed to be July 1, 2016. • As of the date of approval of the reorganization by LAFCO, through the effective date pursuant to the provisions of Government Code 56885.5(a)(4), the City Council of the City of San Bernardino shall be prohibited from taking the = following actions unless it first finds an emergency situation exists as defined in 0 Government Code Section 54956.5, and it is supported by the San Bernardino X County Fire Protection District-_ Q o No Increase in Compensation or Benefits: No increase in calculation for U_ payment of benefits or compensation for employees of the City of San Bernardino Fire Department shall be allowed. Exceptions to this prohibition 3 include planned and budgeted increases identified in the adopted budget for Fiscal Year 2015-16. 0 0 N o Bound by Current Budget: Appropriating, encumbering, extending, or Q otherwise obligating any revenue of the City Fire Department beyond that provided in the current budget at the time of Commission approval, but to include any budgetary adjustment due to the circumstances surrounding the December 2, 2015 terrorist attack, unless agreed to by the Successor Q District. 4- Staff would note that the condition includes the proviso to address an issue that may arise ~ which requires expenditure of funds or the obligation for payment. This allows for a mechanism to address unknowns during the transition. ; a� T ENVIRONMENTAL CONSIDERATIONS M 1` 0 C. ENVIRONMENTAL Will the proposed reorganization have an adverse m environmental effect that cannot be mitigated to a level of non-significance? If it does, can those adverse effects be overridden by other benefits? N 0 U U_ Q The Commission is the lead agency for review of the potential environmental -' consequences of the reorganization evaluated in this report. LAFCO staff has provided the Commission's Environmental Consultant, Tom Dodson and Associates, with the E application materials and responses provided by the City of San Bernardino and the San Bernardino County Fire Protection District. Mr. Dodson reviewed this proposal and a has recommended that the reorganization is statutorily exempt from the California Environmental Quality Act (CEQA) (copy of letter included as Attachment #9). This determination is based on the fact that the reorganization will transfer the delivery of fire protection, and emergency medical response from one entity to another which will 40 Parkat Pn i nA AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 not result in any physical impacts on the environment. Therefore, this action is exempt as defined under Section 15061(b)(3) of the State CEQA Guidelines. It is recommended that the Commission adopt the General Rule Statutory Exemption for this proposal by taking the actions outlined in the Recommendation Section of this report. PUBLIC COMMENT X d In addition to publication of a legal notice of this proposal (1/8th page advertisement in = The Sun), staff also mailed individual notices to the 42,783 landowners in the affected a d reorganization territory. Over the last three weeks, staff has fielded approximately 100 U_ phone calls from landowners requesting additional information on the proposal. Specific areas of concern generally included: 3 a • A desire to maintain the City Fire Department through the City reprioritizing o expenditures. N • Objection to the imposition of a special tax due to financial hardships of a homeowners. • A belief that the City's financial hardships are being solved through the taxation of its residents. • Additional clarification needed as to why residents do not have the opportunity to a vote on the imposition of a special tax. N L In addition, staff received nine comment letters which are included as Attachment #8 to a this report. The most extensive letter was received by LAFCO staff on January 19, _ 2016 from Ms. Karmel Roe. Staff is unable to provide a response to this information in a the staff report; however, an update will be provided at the hearing. M M d' DETERMINATIONS O CL The following determinations are required to be provided by Commission policy and Government Code Section 56668 for any proposal considered: o U U_ 1. The County Registrar of Voters Office has determined that the study area is legally inhabited with 67,883 registered voters as of October 8, 2015. d E 2. The study area is proposed to be within the sphere of influence assigned the San Bernardino County Fire Protection District through approval of LAFCO 3197. r a 3. The County Assessor's Office has determined that the total assessed valuation of land and improvements for the area is $11,363,748,189 as of November 2, 2015. This figure is broken down as $2,976,373,339 for land and $8,387,374,850 for improvements. 41 AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 4. Legal notice of the Commission's consideration of the proposal has been provided through publication of a 1/8th page advertisement in The Sun, a newspaper of general circulation in the area. In addition, individual notices were provided to all affected and interested agencies, County departments and those individuals and agencies requesting special notice. 5. In compliance with the requirements of Government Code Section 56125, g individual notice was mailed to landowners within the reorganization area x (totaling 42,783) due to the annexation of the territory into SBCFPD Service Zone FP-5 (a special tax zone). Comments from landowners have been considered by a the Commission in making its determination. L U_ 6. The Southern California Association of Governments (SCAG) has adopted a Regional Transportation Plan and Sustainable Community Strategy pursuant to the provisions of Government Code Section 65352.5. Approval of LAFCO 3198 has no direct impact on these determinations. The Sustainable Community Strategy includes as a determination the need to assure the ongoing availability a of health and safety services which approval of LAFCO 3198 will support. c d E 7. The Commission's Environmental Consultant, Tom Dodson of Tom Dodson and Associates, has indicated that based on his review of this reorganization, the a proposal will not change the area in which the service is provided. Therefore, the proposal will have no physical affect upon the environment, and a General Rule Statutory Exemption as authorized under Section 15061(b)(3) of the State CEQA Guidelines is appropriate. A copy of Mr. Dodson's response is included for the 3 Commission's review as Attachment#9 to this report. d 8. The study area is presently served by the following public agencies: County of San Bernardino, City of San Bernardino, East Valley Water District, San M Bernardino Valley Municipal Water District, San Bernardino Valley Water Conservation District, Inland Empire Resource Conservation District, Riverside o Corona Resource Conservation District, and West Valley Water District. The City of San Bernardino is affected through the transfer of its fire protection and emergency medical response obligation to County Fire as a function of the reorganization. In addition, the change anticipates that the San Bernardino Cn County Fire Protection District, its Valley Service Zone and its Service Zone FP-5 0 will be expanded to include the territory of the City of San Bernardino. None of J the other agencies are affected by this reorganization proposal as they are regional in nature. E 9. The San Bernardino County Fire Protection District has submitted a Plan for Service as required by Government Code Section 56653, which indicates that a County Fire can, at a minimum, maintain the existing level of service delivery and can improve the level and range of selected portion of the fire protection and emergency medical response currently available in the area. The Plan for Service has been reviewed and compared with the standards established by the Commission and the factors contained within Government Code Section 56668. 42 Parlcn4 P. 4ALL AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 The Commission finds that such Plan conforms to those adopted standards and requirements. 10. The reorganization area can benefit from the assumption of fire protection and emergency medical response through the Valley Service Zone of the San Bernardino County Fire Protection District as evidenced by the Plan for Service. 0 11. This proposal will not affect the fair share allocation of the regional housing x needs assigned to the City of San Bernardino through the Southern California Association of Government's (SCAG) Regional Housing Needs Allocation a (RHNA) process. ;v U_ 12. With respect to environmental justice, the reorganization provides for the 3 continuation of existing fire protection and emergency medical response within the area and will not result in the unfair treatment of any person based upon race, culture or income. 0 N Q 13. The County Board of Supervisors has successfully completed the process for the 5 determination of the transfer of ad valorem property tax revenues upon E successful completion of this reorganization to the successor agencies, SBCFPD L and its Valley Service Zone. An amended to that agreement will be processed to a address the transfer of property tax revenues only for those areas outside the Inland Valley Development Agency (IVDA). Based upon the need to maintain the = pledge to the Revenue Bonds of IVDA and its Successor Oversight Agency, the tax rates and Tax Rate Areas within IVDA shall be retained by the City of San Bernardino until the bonds are paid in full or refunded. This fulfills the requirements of Section 99 of the Revenue and Taxation Code. 14. The maps and legal descriptions prepared by the County Surveyor are in M substantial compliance with LAFCO and State standards. 0 a as CONCLUSION w w Cn Adequate fire protection and emergency medical response are key health and safety 0 U issues for any community. This was no more evident as when the tragic events of a December 2, 2015 played out on our television screens and cellphones and the J exemplary response by all emergency responders was on display. The City of San Bernardino, is both "service insolvent" (unable to pay for all of the costs of providing E services at the level required for the health, safety and welfare of the community) and "budget insolvent" (unable to create a balanced budget that provides sufficient revenues a to pay for expenses), and cannot continue to fund adequate levels of fire and emergency services for its residents over the long-term. Fiscal projections within the City's Plan of Recovery and Plan of Adjustment indicate that without substantial change in how services are provided to its residents, the City will be unable to emerge from 43 0-1-6 0- �n� AGENDA ITEM#7- LAFCO 3198--CITY OF SAN BERNARDINO FIRE REORGANIZATION JANUARY 20, 2016 bankruptcy. A key component of that plan is the transfer of responsibility for fire services from the City to the County. The City's decision to propose the transfer of its own fire department through annexation to the San Bernardino County Fire Protection District was not an easy one. Alternatives considered by the City included contracting out fire and emergency services or transferring responsibility to a private service provider. Ultimately, the City c proposed transfer of its Fire Department through annexation to County Fire as the best x and most fiscally responsible alternative for serving their residents. This plan is important to the City in that provides a means to return to the City's coffers an estimated a of $7,000,000 to $8,000,000 for use in addressing other service deficiencies that currently exist, such as police protection, roads, parks, or even streetlighting. These service determinations will need to be made by the City in its future budgeting process. This is no small thing for the residents of this City. 2 Staff concurs with the City that annexation to County Fire, its Valley Service Zone, and y Service Zone FP-5 remains the best option, both operationally and fiscally, by allowing a the City to take advantage of substantial economies of scale available from County Fire as well as existing County Fire stations and personnel located nearby the City. E Therefore, staff recommends approval of LAFCO 3198 as presented. i a aD Attachments T 1. Vicinity Map, Map of Proposed Reorganization and Supplemental Maps 2. City of San Bernardino/County Fire Application for Reorganization Including Plan for Service, Fiscal Impact Analysis (Five-Year Projection), Transition Plan, San a Manuel Band of Mission Indians Consent Resolution and Supplemental Data 3. Draft CONFIRE Staff Report Dated January 26, 2016 for Transition of San M Bernardino City Fire Dispatch Personnel to CONFIRE/County Fire 4. City of San Bernardino Reponses to LAFCO Questions: Letter From City o Attorney Dated January 4, 2016; Letter from City Manager Dated November 9, 2015 and Letter Dated November 2 2105 5. County of San Bernardino Property Tax Transfer Resolutions from December 15, w 2015 6. Letter from City of San Bernardino Attorney Dated January 15, 2016 Related to 0 CFD #1033 and City of San Bernardino Resolution No. 2004-210 Forming CFD a J #1033 and City Resolution No. 2015-128 Setting Special Tax for Fiscal Year 2015-16 7. Contracts To Be Terminated by the City of San Bernardino 8. Copies of Letters Received from the Public Related to LAFCO 3198 y 9. Letter from Commission Environmental Consultant Tom Dodson of Tom Dodson a and Associates Dated January 10, 2016 10. Draft LAFCO Resolution No. 3211 44