STUDY SESSION ON THE STATE OF FIRE DISTRICTS IN THE COUNTY AND OPTIONS FOR FINANCES AND ALTERNATIVE GOVERNANCE MODELS Agenda Item #8 September 26, 2018
Over a decade of studies The central questions for all of these studies and reports were: • How to stabilize poor, rural districts; and/or • Whether it is possible to increase efficiency and/or provide better fire service with fewer districts It’s not a new issue… September 28, 2018 3
It’s not unique to EDC San Bernardino – August 29, 2018 San Diego - September 14, 2018 Ventura - September 15, 2018 September 28, 2018 4
Agenda 1. Review of LAFCO Process 2. Uniqueness of Fire Services 3. Setting in El Dorado County 4. Funding for Fire Districts 5. How Did We Get Here? 6. Options 7. Presentation by John Traylor – SD LAFCO 8. Input from the Audience
LAFCO Process • Only under limited circumstances can LAFCO initiate its own petitions: – Consolidations – Mergers – Dissolutions – Establishment of subsidiary districts
LAFCO Process • LAFCO initiated proposals must be consistent with a recommendation or conclusion from a sphere of influence study, special study, or municipal service review • All other types of petitions (annexations, detachments, reorganizations, etc.) must be initiated by an outside party
Initiation of LAFCO Process A consolidation or a reorganization can be initiated by: • 5, 10, or 25% of registered voters or landowners within each district, or in some cases, area to be reorganized, depending on how a proposal is processed. • Resolution of an affected local agency (e.g., county, city, special district).
Initiation of LAFCO Process A consolidation or a reorganization can be initiated by: • As discussed earlier, a resolution by LAFCO consistent with special study, sphere of influence, or Municipal Service Review under the circumstances outlined earlier.
Normal LAFCO Process
Protest Provisions • LAFCO initiated proposal: 10% protest in any (one) district will trigger election in all districts.
Protest Provisions • Non-LAFCO initiated proposal: If any affected district objects to reorganization, then 25% protest in any (one) district will trigger election where protest is registered.
Protest Provisions • Non-LAFCO initiated proposal: If affected districts do not object to reorganization, then 25% protest in entire territory will trigger election in all districts.
The Day After • Going through LAFCO process, regardless of method of initiation: – Only way to have a district cease to exist as a legal entity – Property taxes are transferred; possible extension of any special tax and CalPERS contract – Possibility of re-opening the property tax allocation for an area
The Day After • Going through LAFCO process, regardless of method of initiation: – Labor agreements will need to be considered as having a fiscal and/or a political impact – The governing and operating structure can be structured in a way that maintains some level of local control
Uniqueness of Fire Services • It must be kept in mind that fire suppression is different from other types of services provided by other local governments – Services must be provided in a time sensitive manner – Heavily regulated September 28, 2018 16
Uniqueness of Fire Services • It must be kept in mind that fire suppression is different from other types of services provided by other local governments (cont’d) – Labor intensive & specialized – Equipment has a limited shelf life – Cannot be outsourced to private entities September 28, 2018 17
Regulations & Guidelines • State and Federal regulations require the safety of the firefighter • The same amount of the following is required for career and volunteer firefighters: – Training – Equipment – Fire response
Command and Control District A: – Mix corps of career and volunteer firefighters – Two battalion chiefs (salaried) – One fire chief (salaried)
Command and Control District B: – Volunteer corps – One fire chief (salaried)
Command and Control District A District B
Command and Control New district: – Mixed corps of career and volunteers firefighters – Three battalion chiefs (salaried) – One fire chief
Command and Control New district savings? – Facility, equipment and apparatus costs likely to remain the same – District B’s firefighters were volunteers, so no salary savings – One fire chief’s salary is saved; savings partially offset by salary of new battalion chief.
Command and Control Still worth doing – Some benefit savings from replacement of chief, depending on the difference in levels of benefits – Back office and operational savings (payroll processing and human resources; administrative support; district counsel costs)
El Dorado County Fire Districts 13 Agencies total • One city department • One CWD • Two CSDs • 9 FPDs • EMS provided by 2 fire- based JPAs
Funding Primary sources of FPD funding: • General/discretionary spending – Property taxes* – Special taxes* – Strike Team funds * Regular, consistent and ongoing
Funding Primary sources of FPD funding: • Dedicated sources for specific expenditures – Capital improvement plans – Benefit assessments* – Facility districts* – Grants * Regular, consistent and ongoing
Funding • From the 2010 Fire and Emergency Services Study:
How did we get here? • Proposition 13 not only capped the amount of property taxes that could be collected, it also froze the proportional share of PTs that a district could receive – Impacted poorer, volunteer districts • Demographic changes and changes to rural communities means that the days of bucket brigades are over September 28, 2018 29
No Easy Answers? • Financing issues have been known for years • Districts proactive with certain cost-saving methods and practices – Joint training – Single dispatch – Some joint purchases of equipment – Joint grant applications – Automatic aid – Incident command agreements
No Easy Answers? • Options – Full contract for services – Consolidation or reorganization – San Diego/San Bernardino models – Funding option September 28, 2018 31
Concluding Thoughts • Consolidating districts will save money in the long term, but not in the short term and not enough to address immediate needs • Stable districts will resist annexing or consolidating with poorer districts without the poorer district shoring up its finances first • All parties are nearly tapped out. No one agency can shoulder the full cost of fixing the problem by itself
Alternatives • Alternatives to going through LAFCO process: – Functional consolidation (almost there) – Administrative consolidation – Memorandum of Understanding – Join Powers Agreement
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