IRVINE – The city has taken a first step toward leaving the Orange County Fire Authority, a move officials have been threatening for several years and one that could create problems for the county’s largest fire department if it becomes reality.

In a closed session Tuesday, the Irvine City Council directed staff to explore leaving the OCFA in 2020 and return with a plan on how that could be accomplished, City Attorney Jeff Melching said.

“It’s a concrete step, but it’s a first step,” Mayor Don Wagner said Wednesday. “The point is to get staff thinking about our steps. When time comes for us to make the final decision, we can make an informed decision.”

City officials have complained for years about Irvine property owners paying more than the fire services they receive. By some estimates, Irvine taxpayers could save about $20 million a year if the city starts its own fire department.

Tuesday was the first time the City Council directed staff on the issue. City staff will analyze the pros and cons of leaving the OCFA, while reviewing the steps to do so and the city’s options, Wagner said. The city must give two years’ notice, by July 2018, if it decides to leave the OCFA after its contract expires in 2020.

The OCFA provides emergency services to 1.8 million people in 23 cities and the unincorporated pockets of Orange County. It is funded by two sources: Direct fees for service paid by eight “cash contract cities,” and a slice of property taxes designated for fire protection from the unincorporated areas and 15 cities, including Irvine.

Irvine property taxpayers provide the OCFA about $68 million a year, or about 20 percent of the fire agency’s budget, officials said.

In an attempt to keep the OCFA intact, Irvine and the fire authority reached an agreement in November 2013 to return more than $134 million in property tax collections to the city. In exchange, Irvine agreed to stay with the OCFA until 2030.

However, the county of Orange challenged the agreement in January 2014, saying it violated state laws that restrict how property taxes collected for emergency services can be used.

An appeals court sided with the county in March 2016, prompting Irvine to explore other options, including leaving the OCFA.

“All we ask for is to be treated fairly,” Irvine Councilman Jeff Lalloway said, “and not subsidize for other cities in Orange County.”

If Irvine leaves, it could have “cascading effect” on the OCFA, said Fred Smoller, associate professor of political science at Chapman University. Remaining cities in the joint powers authority may be forced to pay more and assess their emergency response services.

OCFA officials said Wednesday that they will continue to work with Irvine to come up with a solution.

“We don’t believe that’s going to happen at the end of the day,” said Lori Zeller, assistant chief of business services for OCFA. “I believe they are going to stay with us.”

If Irvine does decides to leave, the city won’t immediately receive all the money its taxpayers contribute to the OCFA, Zeller said. The city will have to negotiate that with the county, she said.

Local officials and experts say Irvine could either create its own fire department or form a new fire agency with other cities as an alternative to staying with the OCFA.

Smoller said Irvine’s council members probably don’t want to create another layer of bureaucracy by starting a city fire department. The city would have to construct new buildings, take on pensions and hire more full-time employees, he said.

“That to me is why, looking at its from 20,000 feet, it looks more like a negotiating tactic than a real deal,” Smoller said. “Local control is expensive, you know.”

Wagner said there hasn’t been any talk with other cities to form a new coalition.

“I hope that we don’t have to (leave), but in order to make sure that our residents get fair value, we need to explore those possibilities,” Lalloway said. “But ultimately, we hope we don’t have to.”

Staff Writer Teri Sforza contributed to this report.