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HomeMy WebLinkAboutMINUTES - 05142013 - FPD D.1RECOMMENDATION(S): AUTHORIZE the Fire Chief, or designee, to pay (i) $7,500 to the Moraga-Orinda Fire District (MOFD) for the Contra Costa County Fire Protection District’s (District) share of the purchase option payment for the property proposed for the joint District-MOFD fire station, and (ii) up to $15,000 for preliminary due diligence costs associated with the proposed fire station. 1. 2. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/14/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes:See Addendum VOTE OF SUPERVISORS AYE:John Gioia, Director Mary N. Piepho, Director Karen Mitchoff, Director Federal D. Glover, Director NO:Candace Andersen, Director Contact: Fire Chief Daryl Louder, 925-941-3500 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 14, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: D.1 To:Contra Costa County Fire Protection District Board of Directors From:Daryl L. Louder, Chief, Contra Costa County Fire Protection District Date:May 14, 2013 Contra Costa County Subject:Joint Fire Station Project with Moraga-Orinda Fire District RECOMMENDATION(S): (CONT'D) AUTHORIZE the Fire Chief, or designee, to develop and negotiate a Joint Powers Agreement with the Moraga-Orinda Fire District to jointly purchase, build, and operate a single fire station (Station-46) to replace District Station-16 (West Lafayette) and MOFD Station-43 (East Orinda) and to bring the agreement to the Board for consideration. FISCAL IMPACT: $22,500 from the District's Capital Outlay Fund. The commitment of additional funds will require approval of the Fire Board of Directors and will be in conjunction with a request for authorization to enter into a Joint Powers Agreement. BACKGROUND: On March 12, 2013, the Board authorized the Fire Chief, or designee, to conduct formal discussions with MOFD regarding a proposed jointly constructed and operated fire station to replace District Station-16 and MOFD Station-43. The District and MOFD have negotiated a term sheet (see Attachment A) that will be used as the basis for the development of a Joint Powers Agreement (JPA). If the JPA terms are successfully negotiated, the JPA will then be presented to the District Board and the MOFD Board for final consideration. On April 24, 2013, the MOFD Board approved payment of $7,500 as the second portion of the purchase option payment for the property located at 1035 Lorinda Lane, Lafayette (Project Site). The payment of the $15,000 purchase option payment secures MOFD’s right to purchase the Project Site until May 25, 2013. The terms (Attachment A) require the District to request authority from its Board to reimburse MOFD for the payment of the second portion of the purchase option price. The terms (Attachment A) also require the District to contribute one half of the estimated costs of due diligence associated with developing the proposed Station-46. The estimated costs of due diligence are $30,000 for environmental testing, traffic study, hazardous materials review, soils testing, appraisal, and survey (see Attachment B due diligence items and estimates). Development of Joint Powers Agreement (JPA) The purpose of the JPA is to acquire the property proposed for the Project Site, and jointly build, own, and operate the joint Station-46. MOFD cannot purchase the Project Site since it is outside of its district boundaries. The JPA would allow the District and MOFD to jointly purchase the Project Site. The terms (Attachment A) upon which the JPA will be developed require Project Site acquisition costs and Station-46 construction costs to be equally shared by both agencies and based on an agreed upon project cost to be developed prior to adoption of the JPA. The annual personnel and operating cost of Station-46 would be shared equally by both entities, subject to certain ceilings on the District’s contribution. District Station-16 (West Lafayette) and MOFD Station-43 (East Orinda) are located in suburban/rural areas that have low population density and low service demands. However, a fire station is still necessary in the area to maintain adequate response time coverage and address the high wildland fire risk potential. District Station-16 (West Lafayette) and MOFD Station-43 (East Orinda) are currently located approximately 1.5 miles apart but are operated by two separate agencies. In light of the current fiscal climate, there is an increasing demand for greater efficiency and utilization of public funds. To this end, the District is working closely with the Moraga-Orinda Fire District to develop solutions that will continue to provide excellent service to the communities but more closely match resources with service demands. Shared capital costs (land acquisition and construction of proposed Station-46) are approximately five million dollars. However, these costs would be offset by the sale of both District Station-16 and MOFD Station-43. More importantly, significant savings would be realized annually from reduced personnel and operating costs. It is anticipated that the District would save over one million dollars annually and thus recoup its capital cost in less than three years. Currently, both fire companies are underutilized and respond to approximately 1.5 emergency incidents per day. Service could be adequately provided to both areas with a single unit and the new unit would respond to approximately 1,100 calls per year or three incidents per day. CONSEQUENCE OF NEGATIVE ACTION: The District would not be authorized to contribute one half of the purchase option payment for the purchase of the proposed joint station or contribute its portion of the due diligence costs, and the District could not develop the JPA with MOFD to jointly acquire the Project Site. Long-term operational savings would not be realized. CHILDREN'S IMPACT STATEMENT: None. CLERK'S ADDENDUM Speakers: Don Tatzin, Vice-Mayor of Lafayette; Randy Bradley, Chief, Moraga-Orinda Fire Protection District; Vincent Wells, President Firefighters’ Local 1230; Jeff Clark, resident of Danville; Peter Clark, Happy Valley Improvement Association; Bill Granados, Contra Costa County Fire Protection District Advisory Fire Commission . DENIED authorizations for Joint Fire Station Project with Moraga-Orinda Fire District. ATTACHMENTS Attachment A Attachment B Attachment A Draft Deal Points For The Development of a Joint Contra Costa County Fire Protection District / Moraga-Orinda Fire Protection District Replacement Fire Station I. Conceptual Goals A. Contra Costa County Fire Protection District (“ConFire”) is the owner of Station 16 located at 4007 Los Arabis Avenue, Lafayette (“Station 16”), which was initially closed due to mold and deferred maintenance, and was later deactivated as an active fire station as part of an effort to close the budget deficit within ConFire. B. The Moraga-Orinda Fire Protection District (“MOFD”) owns and operates Station 43 located at 20 Via Las Cruces, Orinda (“Station 43”), which MOFD desires to replace, is located approximately 1.5 miles west of Station 16. C. MOFD staff and ConFire staff have identified a parcel of property located at 1035 Lorinda Lane, Lafayette (the “Project Site”), which is located within the boundaries of ConFire, and is being offered for sale by John and Crysanthe Papadakos (“Sellers”). MOFD holds an option to purchase the Project Site, which is a suitable location to build a fire station to be jointly developed and jointly operated by ConFire and MOFD to replace both Station 16 and Station 43. D. MOFD has paid $7,500 to Sellers as the first installment of the purchase option payment. The final installment of the purchase option, a second payment in the amount of $7,500, is due April 25, 2013, with the purchase of the Project Site to occur no later than May 25, 2013. MOFD cannot purchase the Project Site since it is outside of its district boundaries, but ConFire and MOFD can purchase the Project Site through a Joint Powers Agreement between ConFire and MOFD (the “JPA”). E. To accomplish their goals of replacing Stations 16 and 43, and facilitating appropriate response times in the areas served by Stations 16 and 43, MOFD staff and ConFire staff have proposed that MOFD and ConFire, through the JPA, purchase the Project Site from the Sellers with MOFD and ConFire funds, and a replacement fire station be constructed on the Project Site (the “Project”), to be jointly owned and jointly operated as “Station 46” by MOFD and ConFire as a replacement for Station 16 and Station 43, for 40 years. F. MOFD staff and ConFire staff have proposed that MOFD will provide primary staffing of one three-person paramedic engine company comprised of a Captain, 2 Engineer and Firefighter. A minimum of one position on the company must be a paramedic, and all three positions may be paramedics, but ConFire will only be responsible for contributing to staffing costs as described in Section V (Operation of Station 46) below. G. MOFD staff and ConFire staff propose to proceed with the Project provided that: 1. The arrangement must provide fire protection services in the area previously serviced by Station 16 and Station 43. 2. Both agencies will commit funds equally based on an agreed upon Project budget. Funds beyond the agreed upon Project budget will require both agency’s approval. 3. MOFD may not pursue or initiate annexation of Lafayette into MOFD, and ConFire may not initiate or pursue annexation of any portion of MOFD into ConFire without agreement by both parties prior to any consideration by the Contra Costa County Local Agency Formation Commission. 4. MOFD will provide primary staffing for Station 46, and ConFire will provide ancillary staffing as necessary to address real or potential risks). H. The steps outlined below are intended to achieve these goals. This is only a conceptual document. It is not a binding legal agreement. If the parties reach an understanding on these issues, they will negotiate a formal agreement that will further describe the details of this transaction and the rights and obligations of the parties. II. Scope of the Project and Agreed Development Costs A. MOFD to Obtain Project Site Appraisal and Evaluate Condition of the Site (Due Diligence). As an initial step in the Project, MOFD will obtain an appraisal of the Project Site. MOFD will do any necessary investigation and testing of the conditions of the Project Site, including (at a minimum) a Phase I hazardous materials review. ConFire and MOFD will split the costs equally for the studies and inspections, which will include, without limitation, environmental testing, traffic study, hazardous materials review, soils testing, appraisal, and survey (“Due Diligence”). The cost of Due Diligence is currently estimated to cost $30,000 in the aggregate (the “Estimated Due Diligence Costs”). B. ConFire to Request Authority to Deposit $7,500 for Project Site Purchase Option. On May 7, 2013, ConFire will request authority from its Board of Directors to pay (i) $7,500 to MOFD for payment to the Sellers as the second installment of the purchase option payment, and (ii) up to $15,000 for Due Diligence costs associated with the Project. 3 C. MOFD to Undertake CEQA. MOFD will begin the CEQA review process with a timeline that permits MOFD and ConFire to make a decision regarding purchasing the Project Site and construction of Station 46 that includes consideration of CEQA findings prior to May 28, 2013. MOFD and ConFire will equally share the cost of CEQA review. D. MOFD to Provide Building Specifications. MOFD, with input from ConFire, will prepare Project specifications for the construction of Station 46 (the “Project Specifications”). E. Preparation of Project Budget and Determination of Agreed Upon Project Cost. Based on the foregoing information, MOFD will prepare a budget for the Project. ConFire and MOFD will review the budget for purposes of determining the feasibility of the Project and, if the Project is found to be feasible, they will negotiate an agreed upon Project cost to be expended for the acquisition of the Project Site and the construction of the replacement fire station (the “Agreed Upon Project Cost”). III. Transaction Documents A. Joint Powers Agreement. The JPA will be developed and agreed upon by MOFD and ConFire for the acquisition of the Project Site, construction of Station 46, and operation of Station 46. B. Acquisition of the Project Site and Construction of Replacement Fire Station. The JPA will provide for (i) the purchase of the Project Site from the Sellers, with title being held by ConFire and MOFD as tenants in common, (ii) the construction of the replacement Fire Station by MOFD on the Project Site, and (iii) disposition of the replacement Fire Station after 40 years, or earlier termination under certain conditions. Acquisition and construction costs will be funded equally by MOFD and ConFire. C. Facility Use. The JPA will provide for the use, staffing, maintenance, management/administration and allocation of the cost of services for Station 46. All costs will be funded equally by MOFD and ConFire. IV. Property Transactions A. Acquisition of Project Site from Sellers by MOFD. According to the terms of the JPA, if all of the following conditions precedent are satisfied, MOFD will acquire the Project Site from Sellers for the purchase price set forth in the purchase option contract between MOFD and the Sellers ($1,225,000), title to be held by ConFire and MOFD as tenants in common: 1. The Project is found to be feasible based on the Project budget analysis; 4 2. The appraisal of the Project Site supports payment of the $1,225,000 purchase price specified in the purchase option between MOFD and Sellers; 3. The CEQA review is on schedule and the findings are not anticipated to delay the Project; and 4. The Project Site investigation does not reveal any remediation outside of the Project budget or proposed timeline. B. Construction of the new replacement Station 46 by MOFD. MOFD will construct the new replacement Fire Station to the Project Specifications. During construction MOFD and ConFire will meet and do regular cost accountings to ensure that costs are on-track according to the Agreed Upon Project Cost. Each agency has the right to make change orders during the course of the Project, with approval by the other agency. MOFD will obtain all required permits and entitlements. V. Operation of Station 46 A. Joint Operation; Staffing. ConFire and MOFD will jointly operate Station 46, and MOFD will provide primary staffing, and ConFire will provide ancillary staffing as necessary to address real or potential risks, all in accordance with the terms of the JPA. ConFire’s contribution to total labor costs at Station 46 will be capped at 50% of what it pays in labor costs at a ConFire district station staffed by a three person paramedic company comprised of a captain, engineer, and firefighter (“ConFire Staff Costs”). B. Annual Operating Costs Review. The annual operating costs of Station 46 (staffing personnel costs, supplies, and facility operating costs), will be split equally among ConFire and MOFD. On an annual basis, MOFD and ConFire will review and compare their respective annual operating costs to determine if single company operating costs for both agencies are similar. If the annual review and comparison shows that MOFD operating costs exceed ConFire operating costs by greater than ten percent, ConFire single company operating costs will be used as the basis for splitting the annual operating costs of Station 46, and ConFire’s contribution to the annual operating costs of Station 46 will be one half of the ConFire single company operating costs. VI. Project Exit Provisions A. Withdrawal Prior to JPA Execution. Prior to the execution of the JPA, either agency may withdraw from the Project, and will be responsible for one half of the 5 cost of the purchase deposit and one half of the Estimated Due Diligence Costs already incurred. B. Withdrawal After Project Site Acquisition But Prior to Project Completion. 1. Withdrawal After Purchase but Before Design Phase. The JPA will provide that after the purchase of the Project Site, but before MOFD has contracted with an architect and project manager to design the Project (the “Design Phase”), either agency may withdraw from the Project, and the withdrawing agency will be responsible for one half of the Agreed Upon Project Costs incurred to date, and the Project Site will be sold and the proceeds will be split equally between ConFire and MOFD. 2. Withdrawal After Purchase and After Design Phase. The JPA will provide that after the purchase of the Project Site, and after the start of the Design Phase of the Project, either agency may withdraw from the Project, and the withdrawing agency will be responsible for one half of the Agreed Upon Project Costs incurred to date and will forfeit its one half of the purchase price of the Project Site if the non-withdrawing agency elects to continue the Project and take title to Station 46, but if the non- withdrawing agency declines to continue the Project and take title to Station 46, the parties will cooperate in selling the Project Site and the proceeds will be divided equally between ConFire and MOFD. C. Withdrawal After Project Site Acquisition After Project Completion. The JPA will provide that an agency may withdraw from the JPA after construction of Station 46, and will be required to transfer title to Station 46 to the non- withdrawing agency with no reimbursement for any costs previously spent by the withdrawing agency. No withdrawal will be effective, and the JPA will not be terminated, until title has been transferred to the non-withdrawing agency and all other legal requirements have been satisfied. Attachment B Station 46 CEQA/Appraisals/Surveys Element Company Contact Number Proposal Cost Comments/Status 1. Air Quality LSA Malcolm Sproul 510-236-6810 Waiting $4,500 Will require Board approval on 4/25. 2. Noise LSA Malcolm Sproul 510-236-6810 Waiting $4,500 Will require Board approval on 4/25. 3. Biology LSA Malcolm Sproul 510-236-6810 Waiting $3,500 Will require Board approval on 4/25. 4. Cultural CSU Sonoma Kate Green 707-664-2878 Received $1,500 Will require Board approval on 4/25. 5. Traffic Omni Means Peter Galloway 925-935-2230 Waiting $6,780 Will require Board approval on 4/25. 6. Haz Mat Enviro Assessment James Robinson 877-629-6838 Received $1,800 In progress, expected completion 4/18 7. Soils Engeo Ray Skinner 925-866-9000 Received $1,800 Complete 8. Appraisal Real Estate Services Melissa Sovocool 925-708-5282 Received $600 Complete-appraised at asking price ($1,225,000) 9. Survey Lee & Braze George Braze 510 887-4086 Received $2,600 Complete Total $27,580