FDAC Report February 2023

FIRE DISTRICTS ASSOCIATION OF CALIFORNIA

FDAC REPORT

FEBRUARY 2023

2023 BOARD OF DIRECTORS

President Jim Comisky

1st Vice President Eric Walder

2nd Vice President Jeff Willis

Treasurer Richard Pearce

FDAC STAFF

Catherine Smith, Executive Director

Carmen Berry, Deputy Executive Director

Melissa Feltz, Coordinator

Dani Dejeu, Assistant

Derrick Bouchard, Graphic Designer

PHOTOGRAPHY

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The purpose of this Association shall be: 1) to present a united position on fire protection issues; 2) to coordinate with other associations with similar views on fire protection, including legislation; 3) to provide advisory services and any other services deemed appropriate by the Board of Directors that may benefit member agencies; 4) to keep member agencies informed on laws relating to fire suppression, emergency medical and other related services provided by member agencies; 5) to take an active role in the legislative process affecting public agencies providing fire suppression, emergency medical and related services.

Thank you to all the authors in this issue for sharing with you their time and expertise. If you have an idea for a future article, please contact Carmen Berry at the FDAC office at cberry @fdac.org

Disclaimer: The views and opinions expressed in these articles are those of the authors and do not necessarily reflect the official policy or position of FDAC.

For more information on FDAC or this magazine, please contact the FDAC office at 916.231.2137 or visit the website at www.fdac.org.

Fire Agencies Insurance Risk Authority

Susan Blankenburg, General Manager

1255 Battery Street, Suite 450 San Francisco, ca 94111

Office 415.536.4005 Toll Free 855.350-7617

 Lowest Stable Premiums Available

 Exclusively Fire & Emergency Service Agencies

 Broadest Insurance Coverage Available

 Risk Management Assistance

In 1987, one of the largest insurers of California Fire Districts informed the fire industry that they would not be renewing their insurance. FAIRA's first year of operation resulted in an immediate premium reduction of 30%, and that was just the start! Since then we’ve continued to see favorable outcomes for our members including a combined additional savings of over 10% in the past 7 years alone. Not only did we create a solution that guaranteed continuous coverage and reduced premiums, FAIRA is the largest and only multi-state Fire District pool in the United States and has saved millions of dollars.

Our members pay less in premium than they did in 1988 for exposures that have quadrupled. We provide our members with risk management and loss control services including contract review, live & online training and we provide insurance rates that lead the marketplace when it comes to coverage terms and pricing for Property, Vehicle & Liability coverage for Fire Districts and Emergency Service Agencies

www.faira.org

PRESIDENT’S MESSAGE

As we move quickly into 2023, there has been a lot of activity since our last FDAC Report.

The Education Committee has put the final touches on the Annual Conference program to be held in Napa from March 14-17, 2023. It will be a solid program for fire chiefs, elected and appointed board members as well as fire district professionals. Registration is open and I encourage you to attend the conference and take a chance to gain knowledge in areas you may not be familiar with, as well as the unique opportunity to network with peers from around the state. The exhibitor area will be the largest we have had and a unique opportunity to see the latest and greatest in technology and services available to the fire service. Please encourage your peers to attend this event.

We continue to work very closely with Cal Chiefs and try to align our priorities. A great example was a meeting in Sacramento in December 2022. The purpose of the meeting was to align the California legislative priorities for 2023. Included in the meeting were the leadership folks from FDAC, CalChiefs, California Professional Firefighters, CalCities, CSDA, Smith Moore and Associates, PPA, and others. For me, that was the most powerful and meaningful meeting I have ever been part of during my professional time in the fire service. We identified not only issues that we all face, we also started to map out the solutions to those issues. The most substantial issue facing fire districts is long-term sustainable funding. Over the past four decades we have been hit financially several times.

Prop 13 in the late 70’s froze property tax, ERAF shift to fund State’s obligation to school funding, then Prop 172 in the 90’s that was supposed to backfill the losses of the ERAF shift to public safety, yet the vast majority of those funds go to law enforcement. We plan on getting together again soon and keep the momentum going. I have reached out to the new OES Director and asked that we find a date to meet next month to continue our quarterly meetings with OES and the fire service leadership group.

FDAC’s legislative folks are working with CalChiefs and PPA. Chief Walt White is now the lead for FDAC and is doing a great job. If you have questions or concerns, reach out to him.

I am sure that most of us saw the negative impacts from the violent winter storms that impacted the state after New Year’s. Even though the 2022 fire season was not as dramatic as the previous seven years, Mother Nature saved a different punch for the California fire service. We did what we always do, we rose to the occasion and protected our communities from a different threat that came in the form of severe winter storms with deadly winds and major rainfall. The all-risk California fire service.

This will be my final President’s Message to you. I would like to thank each one of you for your continued support. Chief Eric Walder will take over at the conclusion of the 2023 Annual Conference. The FDAC Board of Directors and the staff from Smith Moore & Associates will continue to advocate on your behalf and we stand ready to assist you with your needs.

Jim Comisky, South Lake County Fire Protection District

Take care of yourself, and the troops. I look forward to seeing you in Napa in March!

Chief Jim Comisky (ret.) President FDAC

South Lake County Fire Protection District

You will not want to miss the 2023 FDAC Annual Conference. This year’s conference will provide education and networking opportunities for California fire district leadership and board members. We will be kick-starting the conference off strong with our Opening Keynote, Dr. Reginald Freeman, Fire Chief for City of Oakland where he runs a fire department that responds to over 60,000 calls annually.

Located in Napa, CA the Marriott Hotel is surrounded by legendary Napa wineries for you to sit back, relax and enjoy the sun with the beautiful view of the Northern California Valley. Register today to get your spot locked in and we look forward to seeing you soon for another impactful conference.

Register Today!

Fire Districts Association of California

CORNER: Building Relationships with Legislative Representatives

Good, bad, or indifferent, relationships make the world go around. Building strong relationships with elected officials and other legislative representatives is critical in the role of fire chief. These individuals could be on the local, state, or federal level of government. The strength of those relationships can play a significant role in your organization’s success. Last year I reached out to two local assembly members with a request for funding to build a new fire station. This project is critical infrastructure needed to serve the community of Pine Grove.

The three keys to communication with anyone are to be: respectful, specific, and responsive. During your initial and subsequent meetings, be on time, thank the official for his or her time and stress your interest in working with them. Many legislative representatives are looking for opportunities to support their constituents and serve the communities they represent. Furthermore, elected officials have a vested interest in public safety and many are painfully aware, that a disaster event is a media event, and a media event is a political event. A disaster of a disaster undermines the public’s perception of government and their confidence in elected officials. Therefore, legislative representatives want you to be successful and tend to appreciate it when you present them with opportunities to support your agency. I have joked that this was one of the first times I asked someone for millions of dollars, and they called me back.

Respecting their time includes scheduling an appointment well in advance if possible. Be prepared with concise and specific communication. Be respectful of their time and make leave behind

materials brief and to the point. I like to say, “If it has a staple in it, it is too long.” Check to make sure your organization’s priorities are in alignment with the elected official’s priorities. If you are unsure about their priorities, don’t be afraid to ask and practice active listening. If possible, I strongly recommend face-toface communication with leave behind materials on your agency and the request. I would follow up on any meeting with a thank you email. In that email, be sure to include any relevant attachments that he or she could easily share electronically with colleagues and constituents to gain support.

Gather support for your ask from other stakeholders in your community. If you are fortunate enough to have your legislator assign a staff member to follow up on your request, be responsive. I was very fortunate to have a shovel ready project and community support. Thanks to the vision of former Fire Chief Jim McCart, who purchased the property for the district 12 years earlier and had a preliminary station design prepared, I was able to have those plans updated and a revised cost estimate done quickly. This allowed me to share a conceptual drawing and accurate cost of construction estimate prior to the legislative deadline. Additionally, I sought and received a dozen letters of community support for the projected from community groups and allied agencies including the Amador County Board of Supervisors, the local school district, the Pine Grove Community Group, Sheriff, CHP, Cal Fire and CPF. I do recommend that you draft a support template letter when soliciting these letters to improve your chances of a timely and favorable response.

Chief Walt White FDAC Zone 3 Director

Fire Chief, Amador Fire Protection District

Timing of your request is important. We submitted our request at a time of an unprecedented State budget surplus and on the heels of some of the State’s deadliest and most destructive fires. Two of these fires affected our County. I am personally grateful, for the time, attention and support of assembly members Frank Bigelow and Ken Cooley as well as their staff and my team for the preparation and advocacy of this funding request. I am thankful for the legislators who voted to support our funding request and to Governor Newsom for signing this budget bill into law. Our community and stakeholders are appreciative of the funding and look forward to the fire station’s operation and access to the associated community room. I look forward to working with the staff of the California Office of Emergency Services (Cal OES) on the distribution of this funding and with a selected builder on the construction of this critically needed fire station. Moreover, I wish all of you success in building productive relationships with your legislative representatives that will improve public safety and protect your community.

Starting relationships with elected officials can feel daunting. Take this effort one step at a time and feel free to reach out to FDAC if you need assistance. You do not need a request in hand to start building these relationships. In fact, having a relationship prior to a request is very helpful and may increase the success of the request. Like the saying goes, “The best time to make friends, is before you need them”. California’s local government fire service needs advocates at the local, state and federal levels to ensure we can provide the highest quality of fire services to our communities.

Fire Districts Association of California

2023-24 SESSION BEGINS

The California Legislature has returned to the Capitol to begin the 2023-24 Session.  The first order of business was to organize the two Houses after an unprecedented number of new members were elected to office in November.  Even though nearly one quarter the body turned over, over three quarters of the seats remained in Democratic hands.  The Senate organization was orderly, and the makeup of standing committees was released early in January.  However, in the Assembly, after a marathon and often heated caucus meeting, the Assembly Democrats elected Anthony Rendon of Lakewood to continue to serve as Speaker, but they also elected Robert Rivas of Salinas to assume that critical leadership position effective July 1 of this year.  An unusual circumstance indeed, which led to an extended delay in the construction of committees with the committee lists just being announced on January 18.  It will take some time before these committees convene to begin sifting through newly introduced bills. During the time the structure of the Legislature was being assembled, the unified fire service leaders met in Sacramento to discuss legislative priorities for the new Session.  Leaders from FDAC, CalChiefs, CPF, League of California Cities, CSDA, Metro Chiefs and FIRESCOPE met to both share their legislative ideas, but also to develop unified positions to the extent possible. Improving firefighter training programs, sustainable funding for local fire protection districts and EMT operational advancements including support for community paramedicine and CARE

Court funding for the fire service had lively discussion.  A review of the threat imposed by the proposed Business Roundtable-sponsored Initiative obtaining signatures to qualify for the November Ballot to restrict local government revenue enhancement ballot efforts and an update on the status of the ongoing regulatory rulemaking process relating to the Fire Hazard Severity Zones in the State Responsibility Area were presented.  The collaborative nature of the meeting was apparent and there is an expectation that the group will continue to meet as the measures get introduced at the Capitol.

2023-34 GOVERNOR’S STATE BUDGET PROPOSAL

On Tuesday, January 10, 2023, Governor Newsom unveiled a $297 billion state budget plan.  The financial outlook is much bleaker than the last two years.  The proposal forecasts revenues will be $29.5 billion lower than in the 2022 budget projections and the state now faces an estimated budget gap of $22.5 billion in the 2023-2024 fiscal year.  Wildfire response and prevention programs have been preserved but will experience reductions of less than 3% in General Fund expenditures.  Specifically, defensible space inspection, monitoring and reporting will receive $10 million in cuts.  The Legislature will now begin the Budget hearing process to produce a final state budget before the beginning of the new fiscal year on July 1.

BUDGET HIGHLIGHTS CLIMATE CHANGE Drought

Proposes new spending to respond to drought and prevent floods, including among others:

Russell W. Noack Public Policy Advocates, LLC

Julee Malinowski Ball Public Policy Advocates, LLC

• Allocates $135.5 million General Fund over two years to support local agencies working to reduce urban flood risk.

Wildfire and Forest Resilience

• Reduces General Fund expenditures by $91 million (less than 3 percent), partially offset by a $14 million fund shift to Proposition 98 funds. If there is sufficient General Fund in January 2024, reductions not otherwise offset by other funds will be restored. Programmatic changes include:

• Reduces Climate Catalyst Fund appropriations by $10 million General Fund in 2020-21 and $31 million in 2021-22, about 84 percent.

• Cuts $10 million General Fund in 2022-23 and $15 million in 202324 for the Stewardship of State Owned Lands, about 8 percent.

• Decreases $5 million General Fund in 2023-24 for defensive space inspections, or 20 percent.

• Cuts $5 million General Fund in 2023-24 for monitoring and research, or 13 percent.

• Reduces $15 million General Fund in 2023-24 for workforce training, which is partially offset by a shift of $14 million to Proposition 98 for similar purposes.

Extreme Heat and Community Resilience

• Reduces Urban Greening funding by $100 million General Fund in 2023-24, or 40 percent.

• Cuts the Extreme Heat and Community Resilience Program by $25 million General Fund in 202223 and $50 million in 2023-24 or 43 percent.

• Decreases Urban Forestry funding $20 million General Fund in 2022-23 and $10 million in 2023-24, or 27 percent.

• Delays $85 million General Fund to 2024-25 for Community Resilience Centers.

• Reduces Regional Climate Resilience funding by 50 percent with $25 million General Fund in 2022-23 and $100 million in 2023-24.

• Cuts the Transformative Climate Communities Program by 25 percent with $65 million General Fund in 202223 and $40 million in 2023-24.

• Reduces the Community Air Protection Program, AB 617, by 8 percent with $50 million General Fund in 2023-24 for this program, which includes a shift of $250 million to the Greenhouse Gas Reduction Fund.

GENERAL GOVERNMENT Homelessness

• Does not include any changes to funding for homelessness programs included in the 2022 Budget Act. Proposes to work with the Legislature on outcomes and accountability.

PUBLIC SAFETY Office of Emergency Services

• Proposes $3.3 billion ($771.7 million General Fund) and 1,877 positions for OES.

• Includes $28.7 million and 40 positions across various departments including OES and the Military Department, to maintain and enhance the California Cybersecurity Integration Center.

• Excludes $250 million General Fund for the Seismic Retrofitting Program for Soft Story Multifamily housing from the 2023-24 budget but may be restored in January 2024 if sufficient General Fund is available.

Fire Districts Association of California

GOVERNOR’S APPOINTMENTS (DECEMBER 2022 – JANUARY 2023)

Nancy Ward has been appointed as Director of the California Governor’s Office of Emergency Services (Cal OES), the first woman to hold the position. Ward has served in several positions at Cal OES since 2014 and brings decades of distinguished leadership in emergency management, including at the Federal Emergency Management Agency (FEMA). Ward has been a Retired Annuitant at the California Governor’s Office of Emergency Services since 2017, where she was Chief Deputy Director and Department of Homeland Security Advisor from 2014 to 2017. In 2009, she served as the FEMA Acting Administrator within the U.S. Department of Homeland Security. Ward was Regional Administrator for FEMA Region IX from 2006 to 2014 and served as FEMA Response and Recovery Division Director from 2000 to 2006. This position requires Senate confirmation, and the compensation is $232,858. Ward is registered without party preference

Katherine Butler, 38, of Redondo Beach, has been appointed Deputy Director of the Hazardous Waste Management Program at the California Department of Toxic Substances Control Butler has served as Senior Health Deputy for Supervisor Janice Hahn, Chair of the Los Angeles County Board of Supervisors since 2021. She was a Program Supervisor at the Los Angeles County Department of Public Health from 2015 to 2020 and a Senior Health Scientist at McDaniel Lambert Inc. from 2008 to 2014. Butler is a board-certified toxicologist. She earned a Master of Public Health degree in Environmental Epidemiology from the University of Michigan. This position does not require Senate confirmation and the compensation is $189,636. Butler is registered without party preference.

Ashley Williams, 34, of West Sacramento, has been appointed Deputy Director for Legislative and External Affairs at the Emergency Medical Services Authority. Williams has been Office Chief of Maintenance Strategic Planning at the California Department of Transportation since 2020. She was Staff Services Manager I at the Governor’s Office of Emergency Services from 2019 to 2020. She was an Associate Governmental Program Analyst at CalPERS from 2016 to 2019. She was a Manager for Safeway from 2005 to 2017. She earned a Master of Science degree in Communications from Syracuse University. This position does not require Senate confirmation and the compensation is $126,000. Williams is registered without party preference.

James D. Haskin, 44, of Fremont, has been reappointed to the Building Standards Commission, where he has served since 2022. Haskin has been Director of Pre-Construction at All Temperature Service Air Conditioning Inc. since 2005. He was Chief Estimator at Air Systems Inc. from 2001 to 2005. Haskin is a member of the Sheet Metal and Air Conditioning Contractors’ National Association. This position requires Senate confirmation and there is no compensation. Haskin is a Republican.

Laura Rambin, 53, of Oakland, has been appointed to the Building Standards Commission. Rambin has been Principal at Studio Bondy Architecture since 2013. She was an Architect at Starkweather Bondy Architecture from 2003 to 2013 and at SMWM from 2000 to 2003. Rambin was a Designer at Michael Stanton Architecture from 1996 to 2000. She is a member of the American Institute of Architects. She earned a Master of Architecture degree from the University of California, Los Angeles. This position requires Senate confirmation and there is no compensation. Rambin is a Democrat.

Grant Parks, 47, of Rocklin, has been appointed State Auditor at the California State Auditor’s Office Parks has been a Principal Manager of Audit Services at the Judicial Council of California since 2016. He held several positions at the California State Auditor’s Office from 1999 to 2016, including Principal Auditor and Audit Team Leader. Parks earned a Master of Business Administration degree from the University of California, Davis. This position does not require Senate confirmation and the compensation is $232,858. Parks is registered without party preference.

Walter “Budge” Currier, 55, of Granite Bay, has been appointed Assistant Director, Public Safety Communications at the California Governor’s Office of Emergency Services Currier has been 9-1-1 Branch Manager at the California Governor’s Office of Emergency Services since 2011. He was Communication Engineer and Project Manager at AECOM from 2007 to 2011. Currier was an Assistant Professor at Liberty University from 2006 to 2007. He served in the U.S. Marines from 1985 to 2006. Currier is President of the National Association of State 9-1-1 Administrators and a member of the National Council of Statewide Interoperability Coordinators, National Emergency Number Association and the Association of Public Safety Communications Officials. He earned a Master of Science degree in Electrical Engineering from the Naval Postgraduate School. This position does not require Senate confirmation and the compensation is $168,552. Currier is registered without party preference.

LEGISLATIVE UPDATE

The Joint Legislative Task Force has already met twice to begin analyzing newly introduced pieces of legislation.  The majority of bills will be dropped a day or two before the February 17 deadline for introductions.  Some measures already under review include:

Assembly Bill 40 (Rodriguez) would require Cal EMSA to develop a statewide standard of 20 minutes 99% of the time for ambulance patient offload time with a corresponding electronic signature program

for capturing the time the ambulance arrives and when transfer of care is executed to the hospital.

Assembly Bill 42 (Ramos) would prohibit a local agency from imposing a sprinkler requirement for “tiny homes”, defined to be any dwelling with a total floor area less than 500 square feet.

Assembly Bill 55 (Rodriguez) would set the MediCal fee for service reimbursement rate for emergency medical transport at $350 per transport.

Assembly Bill 99 (Connolly) would require the Department of Transportation to develop a statewide policy to discontinue roadside spraying of herbicides and synthetic pesticides in counties where the board of supervisors has adopted a resolution opposing their use for vegetation management.

Assembly Constitutional Amendment No. 1 (AguiarCurry) would reduce the vote approval requirement from 66.7% to 55% for local government revenue enhancement measures incurred to fund affordable housing or infrastructure improvements.

Assembly Constitutional Amendment No. 2 (Alanis) would establish the Water and Wildfire Resiliency Fund and would require the Treasurer to annually transfer 3% of all state revenues to the fund.

Senate Bill 35 (Umberg) is the legislative vehicle for making modifications in the Community Assistance, Recovery, and Empowerment (CARE) Program that was enacted last year with a delayed effective date.

Senate Bill 57 (Gonzalez) would state intent to enact legislation to prohibit public safety power shutoffs during extreme weather events.

Senate Bill 67 (Seyarto) would require EMS providers who treat a suspected overdose victim to report the incident to Cal EMSA.

Fire Districts Association of California

LINDA FIRE PROTECTION DISTRICT ZONE 2: DISTRICT HIGHLIGHT

Linda Fire Protection District (LFPD) was established in 1948 when a community was in need and was established to provide fire protection to unincorporated Yuba County. LFPD started as a small volunteer fire department serving a small population south of the City of Marysville. Fast forward 75 years, LFPD now serves 56 square miles and a population of almost 40,000. A large majority of the commercial and residential growth in Yuba County is occurring within the LFPD boundaries. As the District grows, so do the demographics. The small town we used to know has changed dramatically.

As a result, the needs of our community have grown, as well. Last year, LFPD ran over 5,500 calls for service while assisting in automatic and mutual aid locally, as well as throughout the state. LFPD is no stranger to disasters. Portions of the District has experienced major flooding in both 1986 and 1997.

LFPD currently employs 17 full-time safety employees, which include a Fire Chief, one Battalion Chief, and two administrative staff. LFPD is a combination fire department with 15 volunteers, interns, and reserves to help support the needs of the community. Like a lot of districts in Zone 2, it takes community support to help us succeed. LFPD has three stations, two of them being full-time and one being a volunteer station. LFPD is currently a CAL OES assignee for both a Cal OES type 1 apparatus and an OES Mobile incident support vehicle.

LFPD, in its 75 years of existence, has had only had four Fire Chiefs, all being members of the community they serve.

This continuity has created a culture of community. As the community and State continue to change LFPD, as well as all special districts, we are all experiencing challenges in funding, growth, and providing the highest level of service possible.

Kyle Heggstrom

Fire Chief

Linda Fire Protection District

FDAC ZONE 2

Fire Districts Association of California

FINANCING FIRE STATION PROJECTS IN CALIFORNIA

It was an all-too-familiar story. Lakeside Fire Protection District’s Station 3, first built in the 1970s, was now old and in constant need of costly repairs. It was originally designed for all-male crews and smaller fire engines. The sleeping quarters and restrooms did not allow for much privacy. The bays could barely fit the new bigger engines. Numerous upgrades were necessary to bring the station up to the Americans with Disabilities Act compliance. There was no decontamination room or space for turnout gear extractors. And besides getting functionally obsolete, the station was just too old and needed to be rebuilt after four decades of heavy use.

The station’s location was still optimal for the community, so Lakeside opted for its full redesign and renovation. The planning process was managed in-house by the Facility Committee and the improvements were done through a design-build contract. The new Station 3 was built up to the current codes and features individual bedrooms with climate control, up-to-date bathrooms, a weight room, a new classroom, and a state-of-the-art decontamination room.

Project financing was a key piece of the puzzle. While Lakeside had some reserves, they were insufficient to cover the full cost. Material prices were going up faster than Lakeside could build up savings. Several funding alternatives were considered, including a general obligation bond and a bank loan. Community support for a general obligation bond was limited, but with a strong tax base, Lakeside had the cash flow to take on some debt. The $4.5 million project ended up being financed with a tax-exempt low-interest rate bank loan structured as a lease agreement. To preserve cash reserves, the District opted for a 100% project financing.

“With an affordable loan, we were able to reset the time-clock for Station 3,” says the District’s Division Chief Humberto Lawler.

Lakeside is not alone in their dilemma. Hundreds of California communities are dealing with functionally and physically obsolete fire stations. Limited revenues and rapidly rising construction costs do not allow fire departments to save up for major upgrades and new facilities. Grant funding can be hard to get, may take years, and comes with a lot of complex conditions. Sometimes debt is the only solution.

Dmitry Semenov

There are five primary ways to finance a station renovation or construction in California.

1. General Obligation Bonds : Cities and fire districts can ask voters within their boundaries to approve an additional ad valorem property tax that is then pledged for issuance of bonds. This creates a new revenue source, so that the agency’s general fund is not responsible for the debt repayment. The community directly pays for the project. While financially this is one of the best solutions, getting it requires a two-thirds voter approval, which many areas have been struggling to achieve. If there are other outstanding general obligation bonds in the community, debt limits may be an additional obstacle. While gathering community support is hard work and takes time, it may be well worth it, especially if general fund revenues are limited.

2. Mello Roos Community Facilities District Bonds: Like general obligation bonds, Mello Roos community facility districts also create a new revenue source in the form of special tax assessments. Mello Roos bonds must be approved by two thirds vote, but the vote can be limited to the specific area of the jurisdiction that is receiving the benefit of the new facility. Unlike general obligation bonds, Mello Roos community facility districts can finance not just capital projects, but also on-going operations and service costs.

3. Assessment District Bonds: Forming an assessment district also allows to create a new revenue stream that complements the general fund. A simple majority vote is required to form an assessment district, a much easier threshold to clear. But an assessment engineer needs to calculate specific benefit for each parcel. Only benefiting parcels can be required to pay the assessments.

4. Lease Financing: Where general obligation, Mello Roos, and assessment district bonds are not an option, and general fund revenues are available to pay for the debt, a project can be

financed through a lease financing. Lease financing can take on a form of certificates of participation, lease revenue bonds, or a lease agreement. While called a lease for regulatory purposes, this type of financing in California very closely resembles a mortgage or a loan. The financing is secured by a pledge of leasehold interest in a real property of the borrowing agency. Unlike mortgages, lease financing does not give creditors a right to foreclose on the property. If a default happens, the creditor has an option to lease the property to a third party, but only for the duration of the lease term. Lease financing is widely used in California to finance fire and police stations, city halls, courthouses, libraries, and other types of government facilities. General obligation, Mello Roos, and assessment district bonds are usually issued through a public sale of investment securities and can have a term of up to 30 years. Lease financing can take on a form of a public sale or a direct bank placement, essentially a bank loan. Bank placements are usually limited to 15-20 years in financing term.

5. USDA Community Facilities Direct Loan Program: Rural communities may be eligible to apply for long-term low interest rate financing from the U.S. Department of Agriculture. This type of financing is similar to lease financing. Debt payments are made by the general fund and a pledge of facility as collateral may be required. The USDA financing usually entails a longer application and approval process and comes with more restrictive covenants and conditions, but it offers a longer term (up to 40 years) and a lower interest rate than bank financing.

In deciding which financing type is appropriate for your situation, it is important to remember that financial markets are constantly changing. Funding availability comes and goes. Each financing mechanism has its advantages and trade-offs, so good financial and legal advice is paramount.

Dmitry Semenov is a principal of Ridgeline Municipal Strategies, specializing in financing and financial planning for fire districts. He can be reached at dsemenov@ ridgelinemuni.com and 916-250-1590.

NOVATO FIRE DISTRICT: HISTORY IN THE MAKING

FDAC would like to send a well-deserved congratulations to Captain Kim Lesik for making history at the Novato Fire District (NFD). Captain Lesik is the first female in the district’s history to hold the Engine Captain position. Captain Lesik was hired at NFD as a firefighter paramedic in 2003. Kim has a Bachelor’s Degree in Science from Cal State Long Beach. She holds certifications as a California State Fire Officer, Engine Boss, Truck Qualification and Trainer, Basic Life Support instructor, is a confined space rescue technician, and holds certificates in many additional fire related coursework. Captain Lesik is currently the director of the Novato Fire Foundation and has participated as an instructor in the NorCal First Alarm Girls Fire Camp. On behalf of FDAC, congratulations, Captain Kim Lesik!

Captain Kim Lesik

The Fire Districts Association of California (FDAC) EBA and the Fire Agencies Self Insurance System (FASIS) will consolidate, effective July 1, 2023, to form Fire Risk Management Services (FRMS). FRMS is a multi-line risk pool providing employee benefits and workers’ compensation coverage programs to eligible fire districts in California.

The branding was developed following months of meetings with the FDAC EBA & FASIS Consolidation Advisory Committee in conjunction with a communications consultant. This plan includes creation of a brand for the new consolidated entity including a name, purpose, logo, and tagline. Development of the branding also was informed by a Joint Member Survey issued in August 2022. The FRMS brand was officially adopted on December 7, 2022 by the joint FDAC EBA & FASIS Boards of Directors.

Name: Fire Risk Management Services (FRMS)

Tagline: Covering California’s Fire Service Community

Purpose: To provide comprehensive and cost-effective coverage programs through a responsive risk pool for fire service agencies.

This is a digital resource to bridge the existing FDAC EBA and FASIS websites and the new FRMS website (to be officially launched in June 2023). While work on the governance structure, coverage programs, and consolidation rollout continue, we encourage you to bookmark this landing page for information and updates on the process. In addition, please click the “Subscribe to Mailing List” link below if you are not receiving our email updates on the status of the consolidation process.

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