What Happened?
Redwood City in California was recently granted permission to hire and manage firefighters that will service the municipality’s residents as well as those in nearby San Carlos. The Redwood City Fire Department will take over full management and oversight of San Carlos’ two fire stations as part of a shared services agreement that will cost San Carlos $2 million over the next five years.
The Goal
Prior to creating the shared services partnership, San Carlos was contracting Redwood City fire officials to come and manage its department. While the two cities were not fully sharing services, they were exercising a hybrid consolidation strategy that eventually evolved into a more long-term agreement.
The five-year deal struck between San Carlos and Redwood City includes a 13 percent salary increase for all firefighters from San Carlos. Redwood City will take on managerial responsibilities of both fire departments while receiving $5.57 million from San Carlos in 2013-2014 and up to $6.65 million by 2018.
San Carlos is also responsible for all costs associated with fire station, engine and equipment maintenance. By launching the shared services partnership, however, the combined staff will reduce overtime and improve efficient use of resources in the two cities.
Merging Abroad
While consolidation initiatives in police, fire and emergency services departments are becoming more popular nationwide, England has also shown interest in shared services models. The UK’s Department for Communities and Local Government, under the guidance of former Chief Fire and Rescue Advisor Sir Ken Knight, released a report discussing the nation’s fire and emergency services program.
The report analyzed how much was being spent by local governments across the country, and suggested a consolidation model be considered to significantly reduce costs and make better use of available resources. The research concluded that improving efficiency in local government fire and emergency service management could cut hundreds of millions of dollars each year, saving valuable taxpayer money.
Sir Ken Knight’s recommendations included:
- Merging local departments
- Privatizing components of fire and emergency services
- Creating mutual organizations led internally
- Sharing equipment and facilities between departments
- Greater use of part-time workers
- Testing the efficiency of allowing police departments to manage fire and rescue services
Sir Ken Knight noted fire and emergency calls have dropped by 40 percent over the past 10 years, while deaths from fires were reduced as well. Local government expenditure on fire and emergency services, however, has remained the same.
Everybody Happy?
According to Knight’s analysis, the potential cost savings of shared services strategies would benefit all communities in some way, regardless of population density or affluence. Public opinion, however, demonstrates a preference for fire and emergency services to be housed and managed locally. This creates a cultural barrier to making swift and drastic changes to the way these departments are structured and financed.
Furthermore, decision makers would have to generate support from local fire and emergency services officials to ensure compliance with new policies.
Simplifying Services
Gov1 has followed the consolidation trend nationwide including fire and emergency services strategies and other projects generating significant savings.