Download Fire Service Contracts-SB 239 PowerPoint

FIRE PROTECTION
CONTRACTS
Workshop on Senate Bill 239 (Hertzberg)
July 21, 2016
Nevada LAFCo – Presented by P. Scott Browne, Counsel
SENATE BILL 239
(HERTZBERG)
• Adds GC §56134 relating to the extension of fire
protection services outside existing city or district
boundaries.
• Also makes consistency amendments to Government
Code Sections 56017.2 (applications) and 56133
(agency to agency contracts).
LEGISLATIVE HISTORY
• SB 239 (Hertzberg) was sponsored by the California
Professional Firefighters (CPF).
• Response to several local situations involving
contracted fire services.
• SB 239 signed by Governor in October 2015.
• The provisions became effective January 1, 2016.
THE WORLD PRIOR TO
DECEMBER 31, 2016
Contracts between fire agencies were subject to
Government Code Section 56133(e)1:
(e) This section does not apply to any of the
following:
(1) Two or more public agencies where the public service
to be provided is an alternative to, or substitute for,
public services already being provided by an existing
public service provider and where the level of service to
be provided is consistent with the level of service
contemplated by the existing service provider.
FIRE PROTECTION
CONTRACT DEFINITION
An agreement for the exercise of new or extended fire
protection services outside a public agency’s jurisdictional
boundaries which either:
FIRE PROTECTION
CONTRACT
Transfers responsibility for providing services in more than
25 percent of the area within the jurisdictional boundaries of
any public agency affected by the contract or agreement;
Or …
FIRE PROTECTION
CONTRACT
Changes the employment status of more than 25 percent of
the employees of any public agency affected by the
contract or agreement.
FIRE PROTECTION
CONTRACT
Also …
Any other contract or agreement for new or extended
services that would, in concert with other contracts or
agreements, produce the 25% change in area or change
the employment status of 25% of the employees is deemed
a Fire Protection Contract.(56134 (a)(2))
“Jurisdictional Boundaries” are defined to include lands
already being served under prior agreements, not just
agency boundaries (56134(a)(3))
EXEMPTIONS
Several types of agreements are exempt from the SB 239
process:
• Mutual Aid Agreements
• Automatic Aid Agreements
• Renewals of Existing Contracts
• Termination of Existing Contracts
• Ambulance Service Contracts
• Cooperative Agreements with CDF per PRC 4143 &4144
PROCESS
INITIATION
• Local agency contracts: The board of directors of the
local agency extending services submits a Resolution of
Application to LAFCO along with a Plan for Services;
or
• CalFire contracts: If the proposed contract involves a
State agency, the application is initiated by the
Director of the agency, subject to the approval of the
State Director of Finance.
APPLICATION
REQUIREMENTS
Before adopting Resolution of Application, the Board of
Directors or the State Director must conduct a Public Hearing
on the application.
APPLICATION
REQUIREMENTS
Must include either:
• A written agreement executed by each of the affected public
agencies involved, including the “consent” of the recognized
firefighter association from each district affected by the
proposed fire protection contract;
Or …
SB239 (HERTZBERG)
• Written notice of a public hearing to each of
the affected public agencies and recognized
firefighter association affected by the
proposed fire protection contract at least 30
days prior to the hearing. A copy of each
written notice needs to be submitted with the
resolution of application. The notice, at
minimum, must include a full copy of the
proposed contract.
PLAN FOR SERVICE
Application must include a Plan for Services which must
address 10 issues:
1.
2.
3.
Total estimated costs of the new or extension of
services;
The estimated costs to the customers in the affected
territory of the new or extended services;
Identification of the agencies slated to provide the
new or extended services and the estimate of costs to
the customers of those agencies;
PLAN FOR SERVICE
4.
5.
6.
7.
A plan for financing the new or extended services on
to the affected territory
Alternatives to providing new or extended services to
the affected territory;
The enumeration and description of the new or
extended services to be provided;
The level and range of the new or extended fire
protection services;
PLAN FOR SERVICE
8.
The timeline of when the new or extended fire
protection services can feasibly be extended to the
affected territory;
9. An indication of any improvements or upgrades to
structures, roads, sewer or water facilities, or other
conditions the public agency slated to provide new or
extended services would impose or require within the
affected territory if the fire protection contract is
completed;
10. A determination, supported by documentation, that
the proposed fire protection contract meets the
criteria of a change in 25% of service
area/employment status.
COMPREHENSIVE FISCAL
ANALYSIS
Must be independently prepared and submitted with the
application.
Must address 3 issues:
1.
Review of the Plan for Service.
2.
Comparison of costs of existing service provider with
service costs for similar service areas.
3.
Any other information and analysis needed to
support the findings required of the Commission.
LAFCO PROCESS
Timelines:
• LAFCo Staff must determine whether application is
complete within 30 days.
• LAFCo Hearing must be no later than 90 days from date
the application is deemed complete.
• Affected local agencies, the County and any
interested parties must be notified at least 21 days prior
to hearing. Also, notice must be published and posted
on LAFCo website.
• Aggrieved Party can request reconsideration of
Commission decision within 30 days
COMMISSION HEARING
The commission may approve, disapprove, or approve
with conditions, the contract for new or extended
services following the hearing at the commission
meeting.
COMMISSION
DETERMINATION
The Commission may approve or conditionally approve
of the contract if it can determine that:
• The public agency will have sufficient revenues to carry
out the exercise of the new or extended fire protection
services outside its current area;
• If the public agency will not have sufficient revenues, the
Commission may condition approval on concurrent
approval of sufficient revenue sources. If the new
revenues are not approved, then the approval of the
contract is null and void.
COMMISSION
DETERMINATION
The Commission approval contingent upon all of the following
four factors:
1.
2.
3.
4.
The proposed exercise of the new or extended fire
protection services outside the applicant’s current service
area is consistent with the intent of this division, including,
but not limited to, the policies of Sections 56001 and
56300.
The commission has reviewed the comprehensive fiscal
analysis.
The commission has reviewed any testimony presented at
the public hearing.
The proposed affected territory is expected to receive
revenues sufficient to provide public services and facilities
and a reasonable reserve during the three fiscal years
following the effective date of the contract or agreement.
SPONSOR’S
CLARIFICATIONS
In December 2015, the California Association of LAFCOs
(CALAFCO) met with California Professional Firefighters
(legislation sponsor), CAL FIRE Local 2881 and the
California Fire Chief’s Association to clarify certain
aspects of the new law.
Resulting bulletin was distributed to LAFCos and is
provided today.
SPONSOR’S
CLARIFICATIONS
The change of 25% of employees is intended to apply to any
one of the agencies signing on to the contract; it is not
intended to be cumulative across all fire agencies.
 Changes in wages, benefits, hours worked or working
conditions are not intended to be include in the definition of
“changes in employment status.”
Renewal of existing contracts are not subject to the new
provisions unless the renewed contracts included
amendments that triggered the 25% change in service area
or employment status.
EXAMPLES
How would 56134 apply to the following :
• A new agreement for an area that is already served
subject to 56134?
• A new agreement for an area that is not served?
• Higgins FPD terminates CALFIRE contract?
• Penn Valley FPD initiates CALFIRE contract?
• Washington Co. Water District contracts with NCCFD?
COMMISSION POLICIES FOR
IMPLEMENTATION OF 56134
DEFINITIONS
The Commission may utilize comments from the affected
agencies in crafting policies to implement SB 239
• Define the proof each an applicant must provide to
determine whether the percentage of the service area
affected by the contract is or is not 25%;
• Define what constitutes “changes in employment
status”
• Lay-offs
• Compensation and\or Benefit changes
• Changes in employment rights or working conditions
COMMISSION POLICIES FOR
IMPLEMENTATION OF 56134
Specify Exemptions for:
• Automatic Aid
• Mutual Aid agreements
• Renewals of existing contracts
• Ambulance Service
Other Policy Suggestions?
QUESTIONS?