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03.10 North Net Fire Training Facilities Second Amendment �°F��°�,�` ��;\�GpPPORqlFati`Y� . p���� i'Q A GENDA ITEM �'v� ;�Q= y�`-� �f�6.������° ��0��pP' Apri I 9, 2019 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto, City Manager FROM: Doug Fackiner ' Chief ��"" REVIEW: City Man ger � Finance �� 1 . SUBJECT Second Amendment to the Amended and Restated Agreement with North Net Joint Powers Authority for North Net Fire Training Facilities. 2. SUMMARY The member agencies of North Net Joint Powers Authority (JPA) entered into the Amended and Restated North Net Joint Powers Agreement (Original Agreement) dated November 1, 2012. The member agencies entered into the First Amendment to Amended and Restated North Net Joint Powers Agreement effective as of June 1, 2013. The Member Fire Chiefs, as well as the JPA Board, are now proposing that the attached Second Amendment to the Amended and Restated Agreement be adopted. 3. RECOMMENDED ACTION Approve the amendment to agreement with North Net Joint Powers Authority for North Net Fire Training Facilities and authorize the Mayor and the City Clerk to execute the amendment to agreement on behalf of the City. 4. FISCAL IMPACT Section 5.2 of the Original Agreement is amended to provide that the Members' administrative fee paid to the City of Anaheim is to be reduced from 12% to 6% of the Members' Fair Share Percentage, effective with the Fiscal Year beginning on July 1, 2019, and continuing thereafter. This amendment results in a decrease of $18,102 which will be reflected in the Fiscal Year 2019-2020 budget. 5. STRATEGIC PLAN GOALS Goal 1: Provide for a safe community b. Provide and maintain infrastructure necessary to ensure the safety of the public. Goal 2: Be a fiscally healthy community a. Expend fiscal resources responsibly. ITEM 3• �� 1 04/09/2019 6. DISCUSSION AND BACKGROUND In 1976, the Cities of Orange, Anaheim, and Garden Grove formed the North Net Joint Powers Authority to provide fire training to their respective fire departments in a cost- effective manner. The North Net Joint Powers Authority is operated out of the North Net Fire Training Facility (North Net) located at 2400 East Orangewood Avenue, Anaheim. North Net is governed by the Amended and Restated North Net Joint Powers Agreement, which was approved by each member's City Council in 2012. The North Net Board of Directors is comprised of a representative from each member's City Council. Pursuant to Section 10.1 of the Amended and Restated North Net Joint Powers Agreement, the City of Anaheim is paid a 12% administrative fee to reimburse it for the costs of administrative support it provides to the North Net Fire Training Facility operations. This administrative support has historically taken the form of contract administration and processing from Anaheim's public works departments, administrative assistant support, operations support, and duties related to finance and treasurer functions. When the 12% administrative fee was set, there was no single person designated to administer North's Net's operation. The Joint Powers Authority (JPA) was adopted in 2012 and became effective on July 1, 2013. It provides that North Net would retain a full-time administrator to be responsible for its operations. A full-time administrator was hired and each City Member contributes toward the costs in accordance with their pro rata cost share, which are calculated each year based on the number of sworn firefighters in each City. Orange's cost share is generally around 28%, Anaheim's 50%, and Garden Grove's 22%. Since the full-time administrator was hired, the need for Anaheim administrative support has dropped significantly. The administrator has assumed much of this administrative function, as well as taken over the day-to-day operations of the North Net Fire Training facility, which used to be accomplished with a combination of firefighter personnel from all three jurisdictions. In light of how North Net is now operated and the reduced need for Anaheim administrative support, the amendment proposes to reduce Anaheim's administrative fee from 12% to 6%. This reduction would be effective as of July 1, 2019, which marks the beginning of North Net's fiscal year. In terms of dollars, Anaheim's administrative fee would be reduced from around $100,000 to approximately $50,000. The City of Garden Grove has been negotiating with the Orange County Fire Authority to assume its fire department responsibilities. Garden Grove has, in accordance with the JPA, provided North Net with notice of its intent to withdraw effective July 1, 2019. Garden Grove has not, as of this date, determined whether it is actually withdrawing as negotiations are continuing. This reduction in Anaheim's administrative fee will apply whether or not Garden Grove remains or withdraws from the JPA. 7. ATTACHMENTS 1. Second Amendment to the Amended and Restated Agreement 2. North Net Training Center Proposed Budget for Fiscal Year 2019-2020 3. Garden Grove Notice of Intent to Withdraw from Authority ITEM 2 04/09/2019 SECOND AMENDMENT TO AMENDED AND RE5TATED NORTH NET JOINT POWERS TRAINING AGREEMENT This Second Amendment to Amended and Restated North Net Joint Powers Agreement (hereafter, "Second Amendment") is entered into to be effective on the lst day of July 2019, by and between the following public entities (collectively, the "Parties"): A. City of Anaheim B. City of Garden Grove C. City of Orange � RECITALS � A. The Parties entered into the Amended and Restated North Net Joint Powers Agreement dated November 1, 2012 (hereafter, the "Original Agreement"). B. The Parties entered into that First Amendment to Amended and Restated North Net Joints Powers Agreement effective as of June 1, 2013 ("First Amendment"). C. The Pa.rties desire to amend the Original Agreement, as amended by the First Amendment, to modify the administrative fee paid to the City of Anaheim under the Original Agreement to reflect the fact that a full-time Administrator, paid directly by the Members, now administers the North Net Training Authority operations, which has significantly reduced the need for Anaheim's administrative services. Now,therefore, the Parties agree as follows: Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. Section 2. Administrative Services. Section 5.2 of the Original Agreement is amended to provide that the Members' administrative fee paid to the City of Anaheim is to be reduced from twelve percent (12%) to six percent (6%) of the Members' Fair Share Percentage, effective beginning with the Fiscal Year beginning on July 1, 2019, and continuing thereafter. Section 4. Inte�ration. This Second Amendment amends, as set forth herein, the Original Agreement and First Amendment, except as specifically amended hereby, the Oi7ginal Agreement and First Amendment shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Second Amendment and 1386504.1 the tei7ns and provisions of the Original Agreement and First Amendment, the tei�ns and provisions of this Second Amendment shall control and govern the rights and obligations of the Parties. Section 4. Counternarts. This Second Amendment may be executed in one or more counterpai�ts, each of which shall be deemed an original, but all of which together will constitute one instrument. . IN WITNESS WHEREOF, the Pai-�ies have caused this Second Amendment to be executed by their duly authorized officers as of the date first stated above. Dated: CITY OF ANAHEIM By: _ � MAYOR ATTEST: APPROVED AS TO FORM: By: By; CITY CLERK CITY ATTORNEY Dated: CITY OF GARDEN GROVE By: MAYOR — 5 cve Jon.�s ATTEST: APP OVED AS O FO . a- O Yv.P, By: � 1 o By CITY CLERK —T��ra �I CI A O Y- d av -r'a�o� Dated: CITY OF ORANGE By; MAYOR ATTEST: APPRO AS TO FORM: By: By: CITY CLERK ITY A ORNEY 1386504.1 „����� Anaheim — Garden Grove - Orange IVORTH NETTRAINIIVG CENTER ���� TO: North Net Training Authority, JPA Board �� FROM: Brenda Carrion, FacilityAdministrator DATE: February 25, 2019 SUBIECT: Proposed Budget for Fiscal Year 2019-2020 Recommendation Staff recommends approval of the proposed FY19-20 budget totaling $901,084. The proposed budget includes anticipated labor and operating cost, and administrative�fees. Discussion The proposed FY19-20 budget will constitute a decrease of$121,304 or 11.86%from the FY 2018-19 budget. The City of Garden Grove gave notice of possible separation from the JPA on June 30, 2019 (Attachment A). If that notice is not rescinded, Garden Grove will no longer be a member of JPA effective June 30, 2019. Staff developed two budgets, one with the City of Garden Grove as a member and a second without the City of Garden Grove as a member. If Garden Grove remains a member, the recommendation is to place the amount of Garden Grove's contribution in a capital reserve account. If not, the recommendation is that no contribution will be made to capital reserve contributions (Attachment B). LaborExpenses Labor increased by $10,818 (3.73%) due to salary step increases and changing burden costs including increases in PERS, medical and medical retirement. Operating Expenses Operating costs decreased by$121,304 (11.86%). Some contract services increased, but staff reduced expenses in other line items to compensate for the increase. Staff considered the impact of Garden Grove leaving and made temporary cuts in capital improvements and building maintenance to reduce overall operating costs for FY19-20. In the event Garden Grove remains as a member, staff recommends Garden Grove's fair share contribution be placed in capital reserves for drill ground concrete replacement (Attachment C). Administrative Fee As compensation for providing services under the Amended and Restated North NetJoint z400 E orar,gewood a�e. Powers Training Agreement, Members pay an administrative fee of twelve percent(12%) Anaheim,ca 9zso6 of their Fair Share Contributions to Anaheim. This 12% fee was established prior to the (714)978-7304 time that North Net hired a full-time Administrator,which North Net pays for directly. 1384197.1 Proposed Budget—Fiscal Year 2019-2020 Page 2 The full-time Fire Training Facilities Administrator, along with General Counsel, who is also paid directly by North Net, have significantly reduced the amount of administrative service requirements from Anaheim. As such, staff recommends the administrative fee of twelve percent (12%) be reduced to six percent (6%). The JPA budgets for contract services that include General Counsel, grant writing and auditing service needs. (Attachment D}. Full implementation of this recommendation will require an amendment to the Joint Powers Agreement which will require the approval of each member's city council. JPA Member Contribution Pursuant to Section 5.1A of the Joint Powers Agreement, each City's fair share percentage contribution to the budget is calculated by dividing the total number of sworn firefighter positions of all Members by the number of sworn firefighter positions for each Member on January 15Y of each calendar year.The number of sworn firefighter personnel was reduced by one (1) for Anaheim, while Garden Grove and Orange remained the same as FY18-19. Each Member is invoiced for its fair share percentage by the Administrator on a quarterly basis beginning July 1. Member contribution without the City of Garden Grove and$0 towards capital reserves. No. of Capital Contribution Member Firefi�hters Fair Share Bud�et Reserves Amount Anaheim 209 64.51% $468,397 $0 $468,397 Orange 115 35.49% 257 687 �0 $257,687 Total 324 100% $726,084 $0 $726,084 Member contribution with the City of Garden Grove and$206,227 towards capital reserves. No. of Capital Contribution Member Firefi�hters Fair Share Bud�et Reserves Amount Anaheim 209 50.24% $364,784 $103,613 $468,397 Orange 115 27.64% $200,690 $56,997 $257,687 Garden Grove 92 22.12% 160 610 45 617 $206,227 Total 416 100% $726,084 $206,227 $932,311 North Net Revenue As compensation for providing training services and facility rental North Net generates revenue from third-party users of the North Net facility. This is used to help offset operating costs and balance the budget, Revenue projections increased to$175,000 for the 2019-20 fiscal year which is$12,000(7.36%)higher than what is budgeted for FY18-19. With the uncertainty of Garden Grove, staff has taken a conservative approach in estimating revenue for FY19-20. Attachments Attachment A—Notice of Intent to Withdraw from Authority Attachment B—Proposed Budget for Fiscal Year 2019-2020 Attachment C—Concrete Replacement Attachment D—Second Amendment to the Amended and Restated North Net Joint Powers Training Agreement 1384197.1 NORTH NET TRAINING CENTER Attachment B ADOPTED xPROPOSEDX XPROPOSED* 2018-2019 2019-2020 2019-2020 WITHOUT GARDEN WITH GARDEN GROVE GROVE OPERATING REVENUES Member Contributions Anaheim $432,788 $468,397 $468,397 Garden Grove $189,580 � $0 $206,227 Orange $237,020 $257,687 $257,687 Facility Revenue $163,000 $175,000 $175,000 Revenue Total $1,022,388 $901,084 $1,107,311 OPERATING EXPENSES Salaries and Wages $289,846 $300,664 $300,664 Instructional Training Expense $179,500 $171,500 $171,500 Administration and Overhead $109,542 $51,005 $51,005 Office Supplies and Maintenance $171,300 $153,114 $153,114 Other Operation Expenses $122,200 $124,801 $124,801 Total Operating Expenses $872,388 $801,084 $801,084 CAPITAL IMPROVEMENT $150,000 $100,000 $100,000 CAPITAL RESERVES $0 $0 $206,227 Expense Total $1,022,388 $901,084 $1,107,311 NORTH NET TRAINING CENTER Attachment B XPROPOSED BUDGET 2019-2020 WITHOUT GARDEN GROVEX OPERATING EXPENSES � Salaries and Wages $300,664 Instructional Training Expense $171,500 Office Supplies and Maintenance $153,114 Other Operation Expenses $124,801 Ca p ita I I m prove m ent $100,000 Total Operating Expenses $850,079 Administration and Overhead 6% $51,005 TOTAL BUDGET $901,084 OPERATING REVENUES Member Fair Share Budget Capital Reserves Contribution Amount Anaheim 64.51% $468,397 $0 $468,397 Orange 35.49% $257,687 $0 $257,687 $726,084 North Net Revenue $175,000 TOTAL REVENUE $901,084 NORTH NET TRAINING CENTER Attachment B PROPOSED 2019-2020 WITH GARDEN GROVE � OPERATTNG EXPENSES Salaries and Wages $300,664 Instructional Training Expense $171,500 Office Supplies and Maintenance $153,114 Other Operation Expenses $124 801 � Ca p ita I I m p rovement $100,000 Total Operating Expenses $850,079 Administration and Overhead 6% $51,005 Captal Reserves $206 227 � TOTAL BUDGET $1,107,311 OPERATING REVENUES Member Fair Share Sudget Capital Reserves Contribution Amount Anaheim 50.24% $364,784 $103,613 $468,397 Orange 27.64% $200,690 $56,997 $257,687 Garden Grove 22.12% $160,610 $45,617 $206,227 $932,311 , North Net Revenue $175,000 TOTAL REVENUE $1,107,311 GARDENGROVE CITY OF GARDEN GROVE Steven R.]ones Mayor Stephanie Kiopfenstein Mayor Pro Tem - District 5 George 5. Brietlgam Council Member- District 1 7ohn R. O'Neill Council Member- District 2 Thu-Ha Nguyen Council Member- District 3 VIA FIRST CLASS MAIL Patrlck Phat Bui Council Member- District 4 December 20, 2018 Kim Bernice Nguyen Council Member- District 6 Secretary of the Board North Net Training Center 2400 E. Orangewood Ave. Anaheim CA 92806 Re: Notice of Intent to Withdraw from Agreement Dear Board Secretary: The Garden Grove City Council has directed our office to commence negotiations with the Orange County Fire Authority for fire services. If the negotiations are successful, the City of Garden Grove will need to terminate its participation in North Net, Consequently, pursuant to Section 8.2 of the Joint Pawers Agreement, the City of Garden Grove hereby provides its notice of intent to withdraw from the Agreement effective the end of the current fiscal year ending June 30, 2019. Enclosed please find a copy of the City Council's minute order and staff report authorizing this action. Please do not hesitate to contact us should you have any questions or concerns pertaining to this matter. RespectFully, ���� � Maria Stipe Deputy City Manager Enclosures 11222 Acacia Parkway • P.O.Box 3070 • Garden Grove, CA 92842 � www.ggcity.org EXCERPT FROM THE MINUTES GARDEN GROVE CITY COUNCIL REGUlAR MEETING OF December 11, 2018 Community Meeting Center 11300 Stanford Avenue, Garden Grove, CA 92840 CONVENE MEETING At 6;35 p.m., Mayor Jones convened the meeting in the Council Chamber. R�LL CALL PRESENT: (7) Mayor 7ones, Mayor Pro Tem Beard, Council Members O`Neill, T. Nguyen, Bui, Klopfenstein, K. Nguyen ABSENT; (0) None AUTHORIZATION FOR CITY MANAGER TO SEND NOTICES OF WITHDRAWAL FROM FIRE DEPARTMENT RELATED AGREEMENTS WITH OUTSIDE AGENCIES (F: 61,1) Following City Attorney Sandoval's report, and following City Council comments that the withdrawal is for the purpose of ineeting deadlines if the City were to contract with tf�e Orange County Fire Authority, and does not afFect current or future membership to oufiside agencies, it was moved by Council Member K. Nguyen, seconded by Council Member T. Nguyen that: The City Manager be authorized to send notices of withdrawal to the Metro Cities Fire Authority, North Net Training Center, and Orange County-City Hazardous Materials Emergency Response Authority at the time required by the respective agreements. The motion carried by a 7-0 vote as follows: Ayes: (7) Brietigam, O'Neiil, T. Nguyen, Bui, Klopfenstein, K. Nguyen, Jones Noes; (0) None STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF GARDEN GROVE ) I, LIZABETH VASQUEZ, Deputy City Clerk of the City of Garden Grove, California, do hereby certify that the foregoing is a true, full, and correct copy of the Minute Entry on record in this affice, said minutes being subject to City Council approval. IN WITNESS WNEREOF, I hereunto set my hand seal this 20th day of December 2018. zabe h Vasquez Deputy City Clerk -1- I GLUfLU I C �oversneec Agenda Item - 6.j. City of Garden Grove INTER-DEPARTMENT MEMORANDUM To: Scott C. Stiles From: Omar Sandoval Dept.: City Manager Dept.: City Attorney Subject: Authorization for City Manager to send Date: 12/il/2018 Notices of Withdrawal from Fire Department Related Agreements wfth outside agencies. (Action Item) 0 B]ECTIVE To seek City Council authorization to send notices of withdrawal from the Metro Cities Fire Authority (MetroNet), North Net Training Center, and Orange County-City Hazardous Materials Emergency Response Authority, related to Fire Department operations. This fs necessary to prevent the payment of related costs for an entire year if the City decides to contract wfth OCFA for fire services. BACKGROUND The City is a current participant in three cooperation and joint powers agreements refated to the Fire Department operations. MetroNet provides communicatlons services for Fire Department dispatch. The member agencies Include the Cities of Garden Grove, Anaheim, Brea, Fountain Valley, Huntington Beach, Newport Beach, and Orange. North Net Trainfng Authority owns property and a facility called the North Net Training Center located in Anaheim near Angels Stadium, The facility is owned and managed through a joint powers agreement between the Cities of Garden Grove, Anaheim and Orange, and is used for firefighter training. The Orange County-City Hazardous Materials Emergency Response Authority provides hazmat response for events that may occur in the City. The City of Garden Grove is not a member of the joint powers authority, but participates in its hazmat emergency response services as a subscriber. If the City were to contract with OCFA for fire servlces, the Cfty will need to terminate its relationship with the foregoing outside agencies. DISCUSSION The MetroNet and North Net Training Center agreements require a notice of withdrawal to be provided by the City no later than December 31, 2018, for withdrawal effective on the end of the fiscal year, June 30, 2019. In effect, these agreements require a six-month notice of withdrawal. The City will need to send the notices by December 31, 2018, pending the current negotiations with OCFA. Should the City wait to provide the notices, then the City wili be required to cont(nue to be financially responsible for its share of the costs for the programs provided by these agencies through the end of tf�e next fiscal year, ending on ]une 30, 2020 (provided that the City gives notice of withdrawal by December 31, 2019). The Orange County-City Hazardous Materials Emergency Response Authority requlre 60 days' notice of termination of the subscription agreement. If approved, the City Manager would send notice of termination within the 60 days' period, in the event that the City were to contract with the OCFA for fire services. FINANCIAL IMPACT None. The Clty's funding participation in the programs wil{ end effective]une 30, 2019 in the event that the City withdraws from the programs were the City to contract with OCFA for fire services. RECOMMENDATION It is recommended that the City Council: hHnc•Ilnorrlonnrn�ie nronicananrl�rnmiAnunrlaPi�hlirl(;rn�erChoet�env71lnmlll=�(1Q4RI1AnnfinnlC7=7dR 1M 'IULU/LU Itl �oversnee[ • Authorize the City Manager to send notices of withdrawal to the Metro Cities Fire Authority, North Net Training Center, and Orange County-City Hazardous Materials Emergency Response Authority at the time required by the respective agreements. hkne•!/narrlunnrnve nn�n�c�nonr�o rnmlGnonrlaPiihlir/f:nvorChnot acnv�lfemlll-'�(1G4R�Aunfinnlfl=7dR 919 CITY OF GARDEN GROVE GARDEN GROVE OFFICE OF THE CITY CLERK Steven R. ]ones Safeguard al1 official records of the City. Mayor Conduct municipal elections and oversee legislative administration. Stephanie Klopfenstein Provide reliable, accurate, and timely information to the Mayor Pro Tem - District 5 City Counci/, staff, and the general public. George S. Brietigam Council Member - District 1 7ohn R. O'Neill Council Member - District 2 February 28, 2019 Thu-Ha Nguyen Council Member - District 3 Patrick Phat Bui Council Member - District 4 North Net Training Authority, JPA Board Kim Bernice Nguyen 2400 E. Orangewood Ave Council Member- District 6 Anaheim, CA 92806 Attention: Brenda Carrion, Facility Administrator Enclosed is a signed set of the approved Budget for Fiscal Year 2019-2020. For convenience and expediency, a self-addressed envelope has been included, as our office respectfully requests that a copy of the fully executed agreement be returned to the City Clerk's Office. Sincerely, Teresa Pomeroy, CMC City Clerk By: L z V quez Deputy City er Enclosure c: Finance Department Finance Department/Purchasing Fire Department 11222 Acacia Parkway • P.O.Box 3070 • Garden Grove, CA 92842 ggcity.org CITY COiJNCIL MINUTES APRIL 9, 2019 3. CONSENT CALENDAR(Continued) 3.7 Agreement with the County of Orange for a Lead Forensic Specialist in the Police Department through June 30,2022. (A2100.0; AGR-6447.3) ACTION: Approved agreement and authorized the Mayor and City Clerk to execute on behalf of the City. 3.8 Consultant Services Agreement with Darren Doerschel for consulting and support related to the Police Department Emergency Operations Center remodel. ACTION: Approved the Agreement with Darren Doerschel in the amount of$17,100 for professional services and authorized the Mayor and City Clerk to execute on behalf of the City. (A2100.0; AGR-5921.D) 3.9 Agreement with Chapman University for production of Local Cable Programming. ACTION: Approved the agreement with Chapman University in the amount of$900,000 for the production of local cable programming, and authorized the Mayor and City Clerk to execute on behalf of the City. (A2100.0; AGR-5689.B) 3.10 Second Amendment to the Amended and Restated Agreement with North Net Joint Powers Authority for North Net Fire Training Facilities. � ACTION: Approved the amendment to agreement with North Net Joint Powers Authority for North Net Fire Training Facilities, and authorized the Mayor and City Clerk to execute on behalf of the City. (A2100.0; AGR- 0160.1.E.2) 3.11 First Amendment to Attorney Services Agreement with the law firm of Nielsen Merksamer Parrinello Gross & Leoni to provide legal services related to litigation defense in the matter of Southwest Voter Registration Education Project, et al., v. City of Orange. (A2100.0; AGR-6751.1) ACTION: 1) Approved a First Amendment to Attorney Services Agreement with Nielsen Merksamer Parrinello Gross&Leoni in the amount of$250,000;and authorized the Mayor and City Clerk to execute on behalf of the City; and 2) Authorized the appropriation of $250,000 from the General Fund unreserved fund balance to expenditure account number 100.0301.51600.00000, General Fund—Legal Services. 3.12 Appropriation of$30,400 in designated donation funding received from the Friends of the Orange Public Library. (C2500.I) ACTION: 1)Accepted into the city's revenue budget$30,400 in donations from Friends of the Orange Public Library, revenue account number 100.2001.48390.19990, Donations—Friends of the Library; and 2)Authorized the appropriation of$30,400 to Friends of the Orange Public Library(#19990)to the following expenditure account numbers: 100.2001.53301.19990, Library Books $6,750 100.2001.53340.19990, Craft Supplies 2,000 , 100.2004.51423.19990, Maintenance Contracts 7,400 100.2004.53910.19990, Minor Office Equipment 750 100.2014.53910.19990, Minor Office Equipment 500 100.2016.51670.19990, Other Prof. & Consulting 5,000 100.2016.53340.19990, Craft Supplies 3,500 100.2017.53340.19990, Craft Supplies 4,500 $30,400 PAGE 5