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Fourth Amendment to OCFA Joint Powers Agreement February 5, 2019 Page 2 • JPA divided into two types of member agencies: o Structural Fire Fund - payment via property tax funds transferred directly from OC Tax Assessor o Cash Contract Cities - remit payment based on invoice for services rendered • Santa Ana is a Cash Contract member • Previous JPA Contract Amendments: o Amended Agreement (September 23, 1999) Agreement of membership and JPA terms o First Amended Agreement (July 1, 2010) Established a five-year short fall for Cash Contract Cities, increased the annual cost adjustment to 4.5%/vear. added automatic renewal language for 20 year terms o Second Amended Agreement (February 10, 2014) - Changes to the agreement to allow refund to Structural Fire Fund cities for overpayment o Third Amended Agreement (July 7, 2015) — Changes to the agreement to eliminate alternate Directors to the OCFA Board The original JPA was amended on September 23, 1999, and renewed in 2010 by the First Amendment, which provided for a term that runs through 2030. In 2013, OCFA's members approved a Second Amendment to the Amended JPA, in attempt to address these same "Overpayment" concerns by the City of Irvine; however, the Second Amendment was subsequently invalidated by court judgment. On July 7, 2015, the Santa Ana City Council adopted a resolution related to the Third Amendment to the OCFA Joint Powers Agreement to eliminate alternate Board directors and authorized the City Manager and Clerk of the Council to execute the amendment with OCFA. Following this action, a Third Amendment was approved by OCFA's members, which eliminated alternate Directors to the OCFA Board. On October 25, 2018, the Orange County Fire Authority (OCFA) Board of Directors approved a proposed Fourth Amendment to the OCFA Joint Powers Authority (JPA) Agreement to formalize the OCFA's commitment to its accelerated pension liability paydown plan. Following this action, OCFA is now seeking approval from its member agencies for a Fourth Amendment to formalize the OCFA's commitment to its "snowball" accelerated pension liability paydown plan (Exhibit 1) with a passage of a resolution of the City Council (Exhibit 2) supporting such action. In order to become effective, the Fourth Amendment must be approved by at least two-thirds (e.g., 16 of 24) of the member agencies' governing bodies. As of January 22, 2019, the following 14 member agencies have approved resolutions in support of the Fourth Amendment: City of Aliso Viejo City of Buena Park City of La Palma City of Laguna Hills City of Laguna Woods City of Los Alamitos City of Mission Viejo City of Rancho Santa Margarita City of San Juan Capistrano City of Stanton City of Tustin City of Villa Park City of Westminster City of Yorba Linda OCFA's Accelerated Pension Paydown Plan At its meeting of September 26, 2013, the OCFA Board of Directors adopted an accelerated pension liability paydown plan, otherwise known as the "snowball" plan. The snowball plan calls for the OCFA to accelerate payment of its unfunded pension liability more quickly than the 55D-2