Hastings recommends city contract with Paint Creek fire district

Hillsboro Mayor Drew Hastings is recommending to the Hillsboro City Council that the city contract with the Paint Creek Joint EMS and Fire District at $600,000 per year for three years, with the option to extend for one year.

Hastings said that the agreement would save the city an estimated $1,540,000, "compared to continuing operation of the fire department with an estimated $899,648 deficit and a capital costs/benefits/administration (CBA) deficit of $450,000," for a total deficit of $1,348,648.

It is proposed that the agreement become effective in October.

"I have made a recommendation to council that the city enter a contract with the Paint Creek fire district," Hastings told The Highland County Press Tuesday evening. 

If the recommendation is approved, Hastings said it would "dissolve" Hillsboro Fire and Rescue. 

The recommendation was distributed to the members of the Hillsboro City Council on Tuesday evening.

The proposal cannot move forward without the approval of council and the fire district.

According to the letter from Hastings, dated June 19:

"Here is where things stand with the Fire/EMS negotiations with Paint Creek. Here are the essential points of agreement and the timeline:

• That the Fire District is able and willing to provide 24/7 fire protection and emergency medical services to the City of Hillsboro using licensed firefighters and EMTS and/or paramedics.

• That the parties propose to enter into a contract for fire protection and emergency medical services for three (3) years with an option exercisable by the City to renew for one (1) year. The City will pay a fee for these services of $600,000 per year for the three year term and for the one year renewal period. The effective date would be October 1, 2012. The contract rate will be pro-rated for 2012.

• That the minimum staffing level would be four (4) full-time or employees who are fully licensed as firefighter/EMTs and/or paramedics assigned 24/7. These four employees will be assigned to the Fire Station.

• The Chief of the Fire District would have the discretion to determine the assignment of personnel. At times, coverage may be provided from other stations of the District so long as the four (4) person staffing at the Hillsboro Station per shift is maintained. The Fire District intends to put five such persons on staff per shift in addition to any on-call volunteers or other employees. In no event shall staffing levels fall below a minimum to maintain the City’s current ISO rating.

• That the Fire District would operate a station using the City’s current fire station building to be known as the Hillsboro Station. The City will continue to own the fire station property and the vehicles and other equipment. The Fire District would utilize vehicles and other equipment currently owned by the City as needed. The City would lease both the building and vehicles/equipment to the Fire District for $l per year. The City would insure the building and property and maintain the structure. The Fire District would insure any vehicle/equipment it decides to lease and maintain it for its useful life. The Fire District would insure any other contents of the building.

• That the Fire District would give special consideration to the City’s firefighters/EMTS/paramedics to fill any open positions that will be created by the need for services pursuant to the contract or for paid positions that are or will become open in the Fire District during the term of the contract. The Fire District Board establishes the terms of employment pursuant to a contract with the IAFF.

• That the Fire District will accept all qualified persons who have served as volunteer firefighters/EMTs/paramedics during 2012 with the City of Hillsboro to serve in the same capacity with the Fire District.

• That the City will remain responsible for the bond payment on the building (approximately $135,000 per year).

• The City agrees that the Fire District has the right to bill third party payers for EMS services. The Fire District would pursue a “soft billing” policy for the billing of runs made in the City. Soft billing is currently City policy.

Liberty Township Trustee Jerry Williams said Hastings told him that the agreement "was a done deal." However, the fire district board, and Hillsboro City Council would have to vote on such an agreement in order for it to become official.

"He called me and told me that I was his first phone call," Williams said. "He said they were going with Paint Creek (fire district)."

Highland County Prosecutor Anneka Collins, legal counsel to the townships, told The Highland County Press that, "obviously this changes the options for the townships. At least they can move forward knowing that a counter-offer from the city is not forthcoming."

The city and Liberty, Jackson, New Market and Washington townships have been in talks with the city regarding EMS and fire coverage for months. A proposal submitted to the city by the townships was rejected by council's finance committee on May 21, and there has been no formal counter-offer.

The city had stated earlier this year that they would no longer contract with the townships for the services, as they have since the 1970s, after 2012. The options that were under consideration were the creation of a fire district with the city and the townships, the townships forming their own district without the city, or joining an existing district.

An unofficial proposal was submitted earlier this month to the township trustees, council and the city by the Hillsboro Professional Firefighters IAFF Local 2972. The proposal starts at $40 per person for 2013, and increases to $50 per person through 2021.

President of the Hillsboro City Council Lee Koogler said Tuesday that he was aware the city administration had a proposal they were submitting to the fire district's board.

There has been no formal meeting by the fire district, and in order for the move to be official the board would have to vote one the matter.

Hillsboro City Council member Dave Shoemaker said that Tuesday evening he received information from the city regarding the proposed agreement with the fire district, but he has not had the opportunity to review it.

"It says on it 'information only,'" Shoemaker said of the paperwork he received. "The city is talking about it, but I can't really say anything until I have the opportunity to read and digest it. But I think that it is prudent for us to look at it and digest it, the same as any other offer, be serious about it, and look at the numbers."

Shoemaker said that he is not aware of any special city council meeting being proposed for the official consideration of the proposal.

"It is my understanding that it is for a contract (with the district, rather than the city joining the district)," Shoemaker said. "I don't think this is anything to be rushed through, regardless of whether it's the right or the wrong thing to do. We have to carefully consider it, because we do have a lot of equipment, personnel, and citizens to think about, as well as our finances. It is terrible to say, but when it comes down to it, the bottom line is the numbers. Until we see that information, and the auditor sees it, we can't make a decision."

Williams told The Highland County Press that he is meeting with a member of the Paint Creek Joint EMS and Fire District Tuesday evening "for a fact-finding meeting" at the district's headquarters in Greenfield.

Koogler said that in order for Hillsboro to go with the fire district for services, it must be voted on by the Hillsboro City Council.

"If the administration were to officially propose this, it would have to be pitched to council, and then it would have to be voted on and approved by council," Koogler said. "If they had a plan in place at that time, it would have to have the approval of council, with a very public vote."

Paint Township joined the fire district in March after they were unable to reach an agreement with the city for services.

The Paint Creek Joint EMS and Fire District operates under a 5.5-mill levy.

A three­-year contract with Paint Creek Fire District, according to the recommendation:

• Secures full-time Fire/EMS services from a professional full-time Fire District. Provides service and coverage consistent with what the people of Hillsboro have come to expect.

Hillsboro will keep ownership and responsibility for maintenance of Station One. The city will lease its existing Fire/EMS equipment at a concessionary rate of $1 per year in exchange for maintenance costs paid by the Fire District.

• Ensures equal treatment of Hillsboro taxpayers and results in significant savings. During the term of the three­year contract the city will pay the per capita equivalent rate of what every resident in the Fire District now pays. Because the city will fund the Contract using existing Income Tax revenue, the contract will not increase taxes on Hillsboro residents.

• Projected savings to the city of more than $300,000 annually. (It) removes a significant stumbling block in city/township relations.

• With the termination of several Township contracts this year, the city is facing shortfalls in its budgeted Fire/EMS accounts beginning on or about October 1st. Managing the Fire/EMS issues with the townships has bogged down over irreconcilable expectations that have existed in one form or another since this contractual arrangement began in the 1970s.
From the outset of discussions, the city has made clear its support for a fire district with the seven townships. The idea was rejected by a majority of trustees. Allows the City to refocus its leadership on growing the County’s economy and better manage remaining city services. The city needs to use its limited resources to begin addressing a backlog of maintenance issues with streets and utilities. We need to focus leadership on developing strategies to grow private sector jobs. Hillsboro’s infrastructure, location and access to services make it a competitive location to grow a business for the benefit of city and county residents alike. (It) creates certainty in the city’s expenditure for Fire/ EMS protection.

• The contract takes advantage of a growing trend in local government toward consolidating Fire/EMS services to reduce administrative and regulatory compliance costs.

• Gives the city three years to study the performance and reliability of the Paint Creek Fire District in Hillsboro.

• The city will have the benefit of time and experience to determine whether or not it will choose to join the Fire District as a permanent voting member in 2016.


When asked what would happen to the current contract the city has with the firefighter union, Hastings said the union was scheduled to meet with the city on Wednesday. 

"I am not a lawyer, so I can't say for sure what happens to that contract," Hastings said. "I can tell you that we are going into a union shop. The district is an IAFF union. It's a different local than our local, so the firefighters that want to join or be employed by the district would have the same protections they currently have, I would think."

Union representatives are scheduled to meet with Hillsboro Safety and Service Director Rick Giroux and the city's labor attorneys, according to Hastings. 

"It's not a matter of honoring the contract (with the firefighters)," Hastings said. "If council approves the recommendation), then the Hillsboro fire department, as to my understanding, would be dissolved. If it's dissolved, then there's no contract."

Hastings said that the city is, and will remain, in talks with the union. 
"We are in talks with them. I assume they would file a grievance and maybe go to arbitration. That is what that path is there for, to settle disputes between management and union," Hastings said. "I am surmising that is a possibility. I am not a lawyer, though." 

Hastings said that Hillsboro Law Director Fred Beery, deputy law director Laura Curliss, and the outside law firm Blaugrund, Herbert, Kessler, Miller, Myers, Postalakis, Inc. have been working on the matter matter since February. 

Hillsboro firefighters contacted by The Highland County Press on Tuesday declined to comment. 

Hastings said he anticipates a special meeting being called some time next week to discuss the recommendation. 

Hastings said that he wants the residents of Hillsboro to know that he believes this is the best option for the city, from a financial, as well as service, standpoint. 

"The citizens benefit greatly from this because they really will not notice, except financially," Hastings said. "The best kind of benefit is the kind of benefit you don't notice. In other words, you wake up on a Tuesday and you still have the same services as you did the day before. I made very sure we had assurances that we have our city protected by having our citizens well-served. I wasn't going to do anything until I was assured our citizens were going to be the same or better services that they have now. That was crucial. I just want the citizens to know that. That is what they are asking about."

Hastings said that if the contract moves forward, the city will pay the equivalent of the district's 5.5-mill levy. 

"We don't have a levy, but we will pay the equivalent, which is about $600,000," Hastings said. "It might be (paid) quarterly, or twice a year, and will continue paying off our building, which is $135,000. That is $735,000 a year. Our current fire department budget, according to Rick or (Hillsboro auditor) Gary (Lewis) is around $1.8 million, when you actually get to the real cost of it. Let's play devil's advocate and say it's $1.5 million. That's still a far cry away from $735,000."

Revenue from the Hillsboro EMS has been going into city's general fund and not directly into the fire/EMS department's budget. However, Hastings said that losing the EMS soft billing revenue will not have a negative impact on the city's overall budget. 

"The general fund will benefit. The fire department will tell you different, but just because we lose the EMS money, that is by far offset by the savings and the expenses," Hastings said. 

"I have spent a lot of time on this, close to five months," Hastings said.

"I have left no stone unturned. I didn't take any aspect of this lightly. I have lived and breathed this problem since February. I am completely confident that this is the best option and the best recommendation to take. Any other option leaves us in the red. Substantially in the red." 
 
Hillsboro City Council's next regularly scheduled meeting is July 9.