HomeMy WebLinkAboutOCFA - Orange County Fire Authority - 2012-02-06Council/Agency Meeting Held:
Deferred/Continued to:
App ved ❑ Conditionally Approved ❑ Denied Ci CI rk s Sig ture
Council Meeting Date: February 6, 2012 Department ID Number: FN 12 - 002
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Approve and authorize execution of the Structural Fire Fund Property
Tax Transfer Agreement with the Orange County Fire Authority
(OCFA) for fire protection and suppression services in the Sunset
Beach area
Statement of Issue:
On August 29, 2011, the City of Huntington Beach assumed responsibility for providing fire
protection and suppression services to the Sunset Beach area. Prior to this date, these
services were provided by the Orange County Fire Authority. As payment for these services,
the County of Orange receives property taxes generated within the Sunset Beach area,
which are deposited into the Structural Fire Fund. The attached Tax Transfer Agreement pro-
rates the amount of Structural Fire Fund proceeds received by the County and the City of
Huntington Beach based on the time services were provided by the City versus the County
during the County's FY 2011/12 (10 months). Beginning in FY 2012/13, the entire amount will
be allocated directly to the City.
Financial Impact:
The Structural Fire Fund Property Tax Transfer Agreement calls for a 10 month proration of
the full $387,385.39 to be allocated to the City of Huntington Beach. Thus, $322,821.16 of
Structural Fire Fund Property Taxes will be received in FY 2011/2012 by the City.
Recommended Action: Motion to:
Approve and authorize the Mayor and City Clerk to execute the "Structural Fire Fund
Property Tax Transfer Agreement."
Alternative Action(s):
Do not approve and do not authorize the Mayor and City Clerk to execute the Structural Fire
Fund Property Tax Transfer Agreement.
HB -133- Item 6. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 2/6/2012 DEPARTMENT ID NUMBER: FN 12 - 002
Analysis:
With the annexation of the Sunset Beach area by the City of Huntington Beach in August
2011, the City must enter into a property tax exchange agreement in order to receive the
portion of the Structural Fire Fund property tax revenue generated within the Sunset Beach
area following the annexation. This fund allows for fire protection and suppression services to
be provided to the residents of this area by the Huntington Beach Fire Department.
Due to the fact that the County Auditor -Controller finalized and submitted the FY 2011/12
district configuration prior to the effective date of annexation, the entire Structural Fire Fund
portion of FY 2011/12 property tax levied in the Sunset Beach area will be received by the
County and remitted to the Orange County Fire Authority in the first instance.
Therefore, it is necessary to pro -rate the amount received by the County for FY 2011/12. Two
month's worth of the tax will remain with the Orange County Fire Authority for fire protection
and suppression services provided in July and August 2011, while the City of Huntington
Beach will receive $322,821.16 for the remaining 10 months of service.
Commencing with FY 2012/13, the Structural Fire Fund portion of the property tax revenue
attributable to the Sunset Beach area will be allocated and distributed from the County to the
City directly.
Environmental Status: N/A
Strategic Plan Goal: Maintain financial viability and our reserves
Attachment(s):
Item 6. - 2 xB -134-
ATTACHMENT #1
xB -135- Item 6. - 3
Structural Fire Fund Property Tax Transfer Agreement
THIS STRUCTURAL FIRE FUND PROPERTY TAX TRANSFER
AGREEMENT (this "Agreement") is made and entered into by and between the
ORANGE COUNTY FIRE AUTHORITY, a Joint Powers Agency (hereinafter referred
to as the "OCFA") and the CITY OF HUNTINGTON BEACH, a municipal corporation
of the State of California and a charter city (hereinafter referred to as the "CITY"). The
OCFA and the CITY are sometimes hereinafter individually referred to as "Party" and
hereinafter collectively referred to as the "Parties."
RECITALS
WHEREAS, the County of Orange (the "County") is a member of the OCFA, and
the OCFA provides fire protection and suppression services in the County's
unincorporated areas; and
WHEREAS, the County receives the Structural Fire Fund portion of property
taxes levied by the County; and
WHEREAS, pursuant to the Joint Powers Agreement governing the OCFA, the
County is required to provide all Structural Fire Fund property tax revenue it receives to
the OCFA; and
WHEREAS, the County allocates delinquent property tax revenues in accordance
with the "Teeter Plan" and therefore remits to the OCFA the Structural Fire Fund portion
of all billable secured property taxes levied by the County, whether paid or unpaid; and
WHEREAS, the OCFA previously provided fire protection and suppression
services in the unincorporated area of the County known as the community of Sunset
Beach and has been receiving from the County the Structural Fire Fund portion of the
property tax revenue generated within the Sunset Beach area (Tax Rate Area 64-004);
and
WHEREAS, on or about August 22, 2011 the CITY annexed the community of
Sunset Beach, and on or about August 29, 2011 the CITY assumed responsibility for
providing fire protection and suppression to the Sunset Beach area; and
WHEREAS, pursuant to the annexation, the CITY and the County entered into a
property tax exchange agreement, which provides that the CITY shall receive one
hundred percent (100%) of the Structural Fire Fund property tax revenue generated
within the Sunset Beach area following the annexation; and
WHEREAS, commencing with Fiscal Year 2012/2013, the Structural Fire Fund
portion of the property tax revenue attributable to the Sunset Beach area will be allocated
and distributed by the County to the CITY; and
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WHEREAS, since the County Auditor -Controller finalized and submitted the
Fiscal Year 2011/2012 district configuration to the California Board of Equalization prior
to the effective date of the annexation, the entire Structural Fire Fund portion of the
Fiscal Year 2011/2012 property tax levied in the Sunset Beach area will continue to be
received by the County and remitted to the OCFA in accordance with the Joint Powers
Agreement; and
WHEREAS, the Parties agree that the Structural Fire Fund portion of the Fiscal
Year 2011/2012 property tax revenue generated within the Sunset Beach area should be
shared by the OCFA and the CITY in proportion to the period each agency was
responsible for providing fire protection and suppression services to the area; and,
WHEREAS, in order to effectuate the determination and proportionate allocation
of such Structural Fire Fund property tax revenue between the City and the OCFA in a
manner that is administratively. convenient to the County, the OCFA, and the CITY, the
Parties desire to enter into this Agreement, wherein the OCFA will make a one-time
payment to the CITY for that portion of the Fiscal Year 2011/2012 Structural Fire Fund
property tax revenue generated within the Sunset Beach area attributable to the period
September 1, 2011 through June 30, 2012.
AGREEMENT
NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:
1. Upon full execution of this Agreement, the OCFA shall remit the sum of
Three Hundred Twenty Two 'Thousand Eight Hundred Twenty one Dollars and
16/100 Cents ($322,821.16) to the CITY, which sum represents the product of (a) the FY
2011/2012 gross assessed value for all taxable properties in Sunset Beach / tax rate area
64-004 (which includes the secured values, unsecured values, public utilities, possessory
interest, and personal property such as boats), (b) the 1 % basic levy, and (c) the Structural
Fire Fund rate for tax rate area 64-004, prorated for the approximately ten month portion
of Fiscal Year 2011/2012 following the date the CITY assumed responsibility for
providing fire protection and suppression services to the Sunset Beach area. This sum is
calculated as follows:
2
825878.2
74754
FY 2011/12 Gross Assessed Value (TRA 64-004)
X
Basic Levy (1 %)
917
Structural Fire Fund (SFF) Rate (TRA 64-004)
FY 2011/12 SFF Property Tax Revenue (TRA 64-004)
X
10 Month Proration (Sept. 1, 2011 — June 30, 2012)
SFF Property Tax Revenue Due to CITY
$371,813,318.00
X
0.01
X
0.10418814224
$387,385.39
0.83333333333
S3=21.16
The Parties agree that the above formula represents a fair and reasonable method
of calculating the amount of Structural Fire Fund property tax revenue generated within
the Sunset Beach area for that portion of Fiscal Year 2011/2012 following the date the
CITY assumed responsibility for providing fire protection and suppression services to the
Sunset Beach area.
2. The above sum shall not be reduced by, and the CITY shall not be
responsible for, any proportionate share of the property tax administration fee payable by
the OCFA to the County attributable to the 2011/2012 Structural Fire Fund property tax
allocation.
3. The OCFA shall be entitled to receive and retain all Structural Fire Fund
property tax revenues attributable to the Sunset Beach area for Fiscal Year 2011/2012
and prior years, including all amount attributable to reimbursements related to the
homeowners' exemption, and the CITY shall immediately pay to the OCFA any such
funds that are remitted to the CITY instead of the OCFA for any reason.
4. In consideration for the payment described in Paragraph 1, above, and
other good and valuable consideration, the CITY hereby waives, releases and forever
discharges the OCFA and its officials, employees, agents and volunteers from (a) any and
all claims, demands, causes of action, obligations, and/or judgments, whether known or
unknown, for, arising out of, and/or relating to payment of any portion of the Structural
Fire Fund for Fiscal Year 2011/2012 and all prior years, and (b) the responsibility to
provide fire protection and suppression services and/or emergency medical services
within the Sunset Beach area.
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74754
5. The CITY and the OCFA further agree that that certain Advanced Life
Support Emergency Medical Services Agreement, dated July 1, 2004, between the CITY
and the OCFA is hereby terminated and shall be of no further force and effect.
6. This Agreement incorporates all of the terms and conditions mentioned
herein, or incidental hereto, and supersedes all negotiations and previous agreements
between the Parties with respect to all or part of the subject matter hereof. Any
amendment or modification to this Agreement must be in writing and executed by the
appropriate authorities of each of the Parties.
7. In the event any portion of this Agreement shall finally be determined by a
court of competent jurisdiction to be unlawful, such provision shall be deemed to be
severed from this Agreement and every other provision of this Agreement shall remain in
full force and effect.
8. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one of
the same document.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the dates set forth below.
DATE: ®Q �� Q
DATE: O� 12U 112.
DATE:
4
825878.2
ORANGE COUNTY FIRE AUTHORITY
A Joint Powers Agency
By:
M rk Te em r
hairm n, O A
lJGI1GI Ql I.tJUI1JG1
CITY OF HUNTINGTON BEACH
a municipal corporation ,
DATE: Z "ZZ
Mayor
DATE:
DATE:
5
825878.2
74754
jV
City Clerk / /IE APPROVED
i Manager
INITIATED AND APPROVED:
Director of Finance
APPROVED AS TO FORM:
City Attorney
City ®f Huntington Beach
2000 Main Street ® Huntington Beach, CA 92648
(714) 536-5227 ® www.huntingtonbeachca.gov
Office of the City Clerk
Joan L. Flynn, City Clerk
February 8, 2012
Dennis Sorensen
Orange County Fire Authority
1 Fire Authority Road
Irvine, CA 92602-0125
Dear Mr. Sorensen:
Enclosed please find one original of "Structural Fire Fund Property Tax Transfer
Agreement."
Upon execution by the all parties, please return one complete -copy to:
Joan L. Flynn
City Clerk
2000 Main Street
Huntington Beach CA 92648
Your attention to this matter is greatly appreciated.
Sincerely,
J®51n L. Flynn, CIVIC
City Clerk
JF: pe
Enclosure: Agreement
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Sister Cities: Anjo, Japan A Waitakere, New Zealand
Esparza, Pasty
From: Machado, Jason
Sent: Wednesday, February 08, 2012 11:24 AM
To: Esparza, Patty
Subject: RE: Property Tax Transfer Agreement
Yes
From: Esparza, Patty
Sent: Wednesday, February 08, 2012 11:23 AM
To: Machado, Jason
Subject: RE: Property Tax Transfer Agreement
So that would be:
Orange County Fire Authority
1 Fire Authority Road
Irvine, CA 92602-0125
Correct?
From: Machado, Jason
Sent: Wednesday, February 08, 2012 11:22 AM
To: Esparza, Patty; Flynn, Joan
Cc: Farrell, Lori Ann
Subject: RE: Property Tax Transfer Agreement
Correct.
Jason
From: Esparza, Patty
Sent: Wednesday, February 08, 2012 11:21 AM
To: Flynn, Joan
Cc: Farrell, Lori Ann; Machado, Jason
Subject: RE: Property Tax Transfer Agreement
Jason — Please let me know what address I should send the original Agreement to for county
signatures. I would assume it would be to Dennis Sorensen named below?
From: Flynn, Joan
Sent: Monday, February 06, 2012 4:39 PM
To: Esparza, Patty
Cc: Farrell, Lori Ann
Subject: Fw: Property Tax Transfer Agreement
Patty -- Please let Lori Ann know, and cc me. Thanks.
Joan L. Flynn, CIVIC
Huntington Beach City Clerk
From: Farrell, Lori Ann
Sent: Monday, February 06, 2012 04:07 PM
To: Flynn, Joan
Subject: FW: Property Tax Transfer Agreement
Joan, please let me know when we get all the signatures, thanks.
From: Sorensen, Dennis[mailto:DennisSorensen@ocfa.org]
Sent: Monday, February 06, 2012 4:05 PM
To: Farrell, Lori Ann
Subject: RE: Property Tax Transfer Agreement
Lori Ann;
Once all the signatures are on the agreement, if you could scan it and e-mail it to me, I will prepare the purchase
requisition to get the check cut as soon as possible. Thanks!
Dennis Sorensen
Orange County Fire Authority
(714) 573-6313
From: Farrell, Lori Ann [mailto:LoriAnn.Farrell@surfcity-hb.org]
Sent: Monday, February 06, 2012 3:22 PM
To: Sorensen, Dennis
Subject: RE: Property Tax Transfer Agreement
Thanks O
From: Sorensen, Dennis[mailto:DennisSorensen@ocfa.org]
Sent: Monday, February 06, 2012 3:14 PM
To: Farrell, Lori Ann
Subject: RE: Property Tax Transfer Agreement
A Okay! Good luck tonight!
Dennis Sorensen
Orange County Fire Authority
(714) 573-6313
From: Farrell, Lori Ann [mailto:LoriAnn.Farrell@surfcity-hb.org]
Sent: Monday, February 06, 2012 3:12 PM
To: Sorensen, Dennis; Bulosan, Dahle
Subject: RE: Property Tax Transfer Agreement
Hi Dennis,
Thanks for the offer but I think we are all set for tonight.
Thanks
Lori Ann
From: Sorensen, Dennis[mailto:DennisSorensen@ocfa.org]
Sent: Monday, February 06, 2012 1:59 PM
To: Farrell, Lori Ann; Bulosan, Dahle
Subject: Property Tax Transfer Agreement
Hi, Lori Ann & Dahle!
I looked on the City's website and saw that our property tax transfer agreement is on the consent calendar for tonight's
City Council Meeting. Would there be any benefit if a representative of the OCFA (i.e. me) attend the meeting tonight?
Thanks for all your help moving this item forward!
Dennis Sorensen
Orange County Fire Authority
(714) 573-6313
ORANGE COUNTY FIRE AUTHORITY
P. O. Box 57115, Irvine, CA 92619-7115 • 1 Fire Authority Road, Irvine, CA 92602-0125
Keith Richter, Fire Chief (714) 573-6000 www.ocfa.org
February 14, 2012
Joan Flynn, City Clerk
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Dear Joan:
For your records, enclosed is a fully executed copy of a Structural Fire Fund Property
Tax Agreement between the City of Huntington Beach and the Orange County Fire
Authority.
Sincerely,
6Lyis Slivkoff, �CMC `
Assistant Clerk of the Authority
Enclosure
Serving the Cities of: Aliso Viejo • Buena Park • Cypress • Dana Point • Irvine • Laguna Hills • Laguna Niguel • Laguna Woods • Lake Forest • La Palma
Los Alamitos • Mission Viejo • Placentia • Rancho Santa Margarita -San Clemente • San Juan Capistrano • Seal Beach • Stanton • Tustin • Villa Park
Westminster • Yorba Linda • and Unincorporated Areas of Orange County
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