3/26/07

Ms. Freda  Jeffs
Chair
Put Community First!

Dear Freda,

Subject: Half Moon Bay Fire District (HMBFD)

            Thank you for the opportunity to provide you with an updated summary of the challenges  facing the HMBFD.  This is an important public policy issue that one way or another will affect all Coastside residents.

            The District is facing two closely-related problems. First, for some number of years the District has suffered from labor problems that have resulted in non-stop litigation costing hundreds of thousands of dollars, employees’ grievances, excess overtime and sick leave, and even insubordination.  Recent Fire Chief Bonano used the words “unmotivated” and “disgruntled” to describe the situation and  the media has repeatedly pointed out the labor problem.

            Second, the District faces a very real financial crisis.  For a number of years expenses have exceeded revenues. In fiscal ‘06 the budget was “balanced” by taking $400K from reserves and using over $300K in one-time dollars that the District received from the state.  Today the District does not have any reserves for operations, equipment, retirees’ health care, disaster preparedness or any other critical area.  An unacceptable and dangerous situation.

            In the spring of ‘06 the Board of Directors sought and received advice on how to best fix our broken system.  Two highly-respected Fire Chiefs, our current acting Chief, a professional consultant and the San Mateo Civil Grand Jury all recommended the some action -- contract for personnel services.  Since the District already contracts for numerous services (ambulance, training, legal, maintenance, etc.) and this contract had major financial and operational benefits as noted below, the Board voted to pursue this course of action.

            After a lengthy and detailed “Request For Proposal” (“RFP”) process, I signed, as Board President, a contract with the California Department of  Forestry and Fire (now known as Cal Fire) on 3/2/07 for Cal Fire to provide personnel services to the Coastside.  This contract is for personnel salary and benefits (S&B) only, and is “not to exceed” $5.4M.  For comparison, in ‘06 the District spent $6.8m for S&B.  The District of course will continue to have other expenses such as equipment, buildings, volunteers, retirees etc..

            The contract is detailed and provides significant benefits to Coastside residents.  Key elements include:

i) complete local control of level of service, staffing levels, programs, finances, ownership of equipment and buildings etc. 

            ii) improved services

            iii) new operational efficiencies including a full-time inspector and training officer 

iv) major cost savings, allowing the District to build reserves and fund desired new programs

            v) no lay-offs or salary cuts for current employees.

            Our 25 union employees will transfer to the Cal Fire union, gaining new opportunities and benefits.

            About Cal Fire: they are the third largest fire department in the US.  They have 3,800 permanent firefighters in California, provide firefighting and emergency services to 32 of California’s 58 counties including San Mateo, have 575 local government fire stations and provide full services under contract to over 30 cities and towns in California.  A very professional organization.

            So where do we stand today?  The Union has circulated and submitted to the Board of Directors two referendums demanding that the Board either cancel the contract with Cal Fire or submit the issue to the voters.  The first petition was rejected because it was submitted before the Board took any action.  The second petition was rejected after complete legal review on the grounds that citizens were asked to sign a petition that did not contain all of the information required by the California Election Code.  Among other problems, the petition contained factual errors and numerous misleading statements.  We believe the union will seek to have a judge overturn this decision.  If the union is successful, the matter may go to the voters in November.  In addition the union has hinted that it will sue the District on a yet-unknown matter.  All of this of course is very expensive in legal fees.

            The question I am constantly asked is, “Why should 25 union members, 13 of whom live in this District, so strongly oppose a decision that has huge benefits to the 25,000 Coastside residents and taxpayers?”  The firefighters will retain their very generous pay package and a benefit package that is probably better than any 95% of Coastside residents can look forward to (retire at age 50 with up to 90% of salary, life-time health benefits, etc.).  They will still be members of the same international union but will have to change locals.  Firefighters will have to work one to two days more a month, but with extra compensation. They now work 10 days a month or 122 days a year. So why?

            The union has attempted to sell their opposition by stating that the new contract would result in a reduced level of services, poor emergency services, “hidden costs”, and loss of local control of the District.  Such comments are without merit.

            But let me note what I believe has become a factor in the dispute.  Numerous fire districts throughout the state are facing, in various degrees, similar financial problems to HMBFD.  Our situation is being viewed by many as a test case.  If we are able to improve the level of services, gain efficiencies and be more cost-effective without raising taxes, others may very well explore similar contracts.  As you may have seen in the media, all public agencies are facing huge unfunded liabilities for retirees’ health care.  The HMBFD is  having an actuarial study done to determine our liability but it certainly will be in the millions of dollars.  Under our contract with Cal Fire, the state will assume this cost.

            I am sure this issue will take many twists and turns in the weeks ahead but the bottom line is that we need to face up to the problem and fix it.  To be forced to return to the same broken system is not an option.

Gary Burke