BACKGROUND:
Like many fire districts in the State, the Contra Costa County Fire Protection District is heavily dependent on property tax revenues to fund its operations. With the long and deep economic recession and the associated steep decline in the housing market, the funding the District has traditionally relied on for providing fire services has declined signficantly. Additionally, due to retirement system investment losses and a change to the way in which the retirement system allocates costs, the District's annual pension expense has more than doubled. In response to worsening financial conditions, the District enacted a number of measures over the last few years to cut costs and improve efficiencies. To maintain service levels, reserve funds from prior year budget surpluses were used to bridge the gap caused by the decline in property tax revenues.
In November 2012 the voters in the District's 300 square mile service area had the oppotunity to vote to approve a temporary special tax meaure. The measure received 53% of the votes, but under State law it needed a two-thirds supermajority to be successful.
Prior year reserve funds are now nearly exhausted and the District must reduce operating costs significantly to operate within its current revenue stream.
Given the difficulty in obtaining a supermajority vote on any new tax and to avoid potential layoffs should the measure be unsuccessful, the District left certain positions vacant as attrition occured. As of December 1, 2012, the District has 219 filled firefighter positions. The minimum staffing requirement with 28 stations/crews is 255 firefighters. The vacancies are being staffed by recalling personnel on an overtime basis.
Cuts have already been made in non-operational areas. At this time the District has no option but to reduce direct service delivery levels to the community. Due to the low baseline level of resources, further reductions will have an adverse impact on response times, operational capacity, and the District’s ability to protect and serve the community.
The attached plan proposes the closure of four stations in January 2013. The anticipated savings from this service level reduction is estimated at $3 million for the remainder of fiscal year 2012-13. The District has already realized some personnel cost reductions by allowing positions to remain vacant and staffing them with overtime personnel. (The savings results from the difference between the hourly overtime rate and the fully loaded cost of filling a position on a permanent basis.) Therefore, reducing suppression staffing by four functional units (i.e., stations) will result in a reduction to the District's overtime expense in FY 12-13:
Fire Captain Weighted Hourly Rate: $38.59
Fire Engineer Weighted Hourly Rate: $34.16
Firefighter/Firefighter-Paramedic Weighted Hourly Rate: $29.24
Weighted Rate - All Positions: $34.00
Weighted Overtime Rate: $51.00
$51.00 x 24 Hours x 3 Positions x 181 Days = $664,632
Workers' Compensation @ 8.5% = $56,494
Medicare @ 1.45% = $9,637
Savings/Station = $730,763
Estimated Savings for Four (4) Fire Stations in FY 12-13 = $2,923,052
Note: This item was originally calendared for deliberation on December 4, 2012. The Fire Board of Directors voted to delay providing direction to the Fire Chief on potential station closures for one week -- i.e., until December 11, 2012.
CONSEQUENCE OF NEGATIVE ACTION:
The savings from station closures will not be recognized in the current fiscal year, resulting in more severe service level reductions in the following fiscal year (FY-13/14).
CHILDREN'S IMPACT STATEMENT:
Not applicable.
CLERK'S ADDENDUM
HEARD staff report from Chief Louder and Pat Frost, Emergency Management Services Director, and Dr. Joseph Barger.
The following provided public comment: Mike Anderson, Mayor of Lafayette (handout attached); Cindy Silval, Mayor of Walnut Creek; Bill Granados, CCCFPD Advisory Commission; Erling Horn, resident of Lafayette; George Figone, Acalanes Valley Homeowners Association; Laura Fitzpatrick, resident of Walnut Creek;Leonard Carp, resident of Walnut Creek; Carol Dwinell, resident of Briones; George Burtt, resident of Acalanes Valley; Ray Ulmer, resident of Mt. View; Pat Ulmer, resident of Mt. View; Cheryl Grover, president of Mt. View Homeowners Association (handout attached); Jason Connor, Station 8, Local 1230; Mike Egan, resident of Walnut Creek; Richard Sonsteng, UCOA; Mike Alford, resident of Martinez; Florence Franet, resident of Walnut Creek; Vincent Wells, President Firefighters Local 1230.
The following people did not speak but left written comments: Ellen Diamond, Diamond Terrace Retirement Community; Peter Weiler, resident of Clayton; Sepidah Farshadnia, resident of Walnut Creek; Jennifer Digrazia, resident of Walnut Creek; Terry L. Byrnes, resident of Walnut Creek; Judy Roberts; Michael Thomas, resident of Walnut Creek; Rudgear Meadows Homeowners Association; Adele Ward, resident of Walnut Creek.
AUTHORIZED the Fire Chief to implement the Service Reduction and Fire Station Closure Plan