No additional fiscal impact. This action acknowledges revenue sources to be transferred to the Contra Costa County Fire Protection District (the “District”) from the East Contra Costa County Fire Protection District (“ECCFPD”), which were not specifically outlined in the original Resolution of Application adopted by the District in Resolution No. 2021/8 on September 14, 2021. If Resolution 2022/3 is not adopted to clarify issues regarding the District’s assumption of employment contracts, this would likely result in an assumption of additional costs and related liabilities by the District that were not contemplated in the feasibility analysis informing the recommendation supporting consolidation of ECCFPD with the District and would require additional financial analysis to determine cost impacts.
On September 14, 2021, the Board of Directors adopted Resolution No. 2021/8, a resolution of application to LAFCO requesting that LAFCO initiate proceedings for the annexation of the ECCFPD into the District pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the California Government Code. The resolution contains the requested terms and conditions of annexation, including those relating to the District assuming the contracts of ECCFPD as its successor agency and the terms of the revenue transfer to the District. The ECCFPD Board of Directors adopted a substantially similar resolution on September 16, 2021, which it also submitted to LAFCO. The law regarding annexations provides that when substantially similar resolutions are adopted by the affected local agencies, LAFCO must approve, or conditionally approve, the proposal.
On January 31, 2022, LAFCO’s Executive Officer issued a Certificate of Filing, deeming the applications submitted by ECCFPD and the District complete and setting the matter for hearing on February 9, 2022. Prior to the hearing, the District requested that LAFCO continue the matter to permit the District to clarify its resolution regarding successor agency obligations, employees, and revenue transfer. At the February 9 meeting, LAFCO voted to expand the District’s sphere of influence to include the ECCFPD but agreed to continue the hearing on the applications until its next meeting on March 9, 2022.
The proposed clarifications to the District’s resolution are sought to ensure consistency with the Board of Directors’ ongoing position regarding the transition of employees. Employees of the dissolved ECCFPD are to become employees of the District without interruption of service or seniority. The same terms and conditions of employment will apply to these employees as to similarly situated District employees. The proposed amendment would avoid a situation where the transitioning employees are potentially subject to different contracts and employment terms than similarly situated employees in the same classifications and the resultant confusion and uncertainty this would cause. Specifically, the revisions would clarify that the District would not assume ECCFPD’s collective bargaining agreements, implied or express agreements between ECCFPD and its current employees for retiree health/OPEB, and other employment contracts between ECCFPD and its current employees. For example, the District would not assume ECCFPD’s employment agreement with its Fire Chief.
Additionally, Section 2.(d) relating to the revenue transfer has been revised to remove an incorrect legal citation to the Revenue and Taxation Code, seemingly requiring entering into a property tax exchange agreement. LAFCO’s Executive Officer has advised that the process set forth in the citation is not applicable to the annexation.
While the District’s resolution broadly describes the sources of revenue that will be transferred to the district, for purposes of transparency the Board also is asked to also acknowledge that the anticipated sources of revenue following annexation include but are not limited to those shown in the attached Exhibit A.
If the Board adopts Resolution 2022/3, the Board should direct the Fire Chief, or designee, to submit the resolution to LAFCO.
Failure to clarify the requested terms of annexation could result in confusion concerning which contracts have been assumed by the District, inconsistent employment terms for employees of the District and confusion about the terms of the revenue transfer.