City, fire district at odds over fire contract

Jan. 10--Oneonta's mayor called on Town of Oneonta Fire District commissioners to work with the city to resolve differences about fire protection services and costs, which recently were reviewed by a consulting firm that proposed the District pay 7 percent more toward expenses.

Mayor Gary Herzig warned that if the fire district forms its own department, the size of the city department could be cut and the safety of city and town residents would be jeopardized.

Some factors and figures in the consultant's non-binding report need more review, the sides said separately.

The fire district is "looking in to all avenues that will provide the taxpayers with the level of service that they are accustomed to," Commissioner Johna Peachin said in an email Monday.

"We need to be able to do so with controls over the costs involved and in the current arrangement this does not seem possible," Peachin said. "The 14-plus percent tax increase that was incurred in 2017 can not be sustained in the age of the property tax cap."

Under a three-year agreement with the city, which has paid crews, district payments were set at $1.03 million in 2016; $1.05 million in 2017; and $1.1 million in 2018. The District had refused the city's original $1.2 million offer, and the contract was reached after the city took the fire district to State Supreme Court in December 2015.

A task force, formed as part of the agreement, hired VFIS, a consulting firm from York, Pennsylvania.

VFIS studied risk, property values, population, coverage area, service calls and other factors. In 2016, the city paid $2.8 million, or 73 percent, of the OFD budget of $3.8 million, according to the VFIS study, and the fire district paid $1.03 million, or 27 percent.

The $3.8 million budget doesn't include retirement benefits, insurance or building costs, the consultant said. The OFD staffing model has crews of six firefighters.

VFIS, which weighed various factors, proposed the district pay 34 percent, or 7 percent more, of the OFD budget. All costs of providing service should be included in the calculation, including expenses charged to the city's general fund, plus related costs, such as insurance premiums, fire department property and liability insurance, the report said.

VFIS said the district's options include developing a volunteer fire department; contracting with an agency other than the OFD; or continuing an arrangement with the city of Oneonta.

Fire commissioners will discuss the report at their next meeting, Peachin said.

"While the cost sharing formula proposed in the report results in a percentage in line with the historical figure used in all previous contracts, it remains artificially high," Peachin said. "The consultant issued the report without ever responding to requests by both parties to explain certain elements of the formula. The report provides little substantiation, rationale or discussion of the formula beyond its presentation."

In a media release issued Monday, Herzig said said he respected the recommendations of VSIF.

"It is my understanding, unfortunately, that the commissioners will continue to explore the feasibility of creating a volunteer fire department to protect the town fire district," Herzig said. "Such a move would result in a serious reduction in the size of the Oneonta Fire Department and would jeopardize the safety of residents of both the town and the city. In this era of cooperative government, it is my hope that we can continue to work together for the good of all."

Herzig said the city and district identified seven entities, which were sent a request for proposals to provide non-binding recommendations on determining costs. After reviewing proposals, VFIS was retained and met with the task force.

Task force members were Meg Hungerford, city finance director, Sixth Ward Common Council Member Russ Southard and commissioners Peachin and Mike Butler.

Hungerford said the cost of the VFIS proposal at $4,500, plus expenses, was to be split equally between the city and fire district. Discussions are expected to continue, she said, but another task force meeting date hasn't been set.

"If there is not a subsequent agreement with the district, the city will need to determine the specifics of the resulting impact on operations, which would likely include a reduction in staffing," Hungerford said. "Our hope is that the arrangement will continue beyond 2018."

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