Excerpts from ChicagoTribune.com:
In a groundbreaking decision that could reshape how small suburban towns handle emergency services, Calumet Park has decided to outsource its fire department to a private company in an effort to reduce costs. On November 8, the village board unanimously approved a separation agreement with its firefighters' union and signed a five-year contract with Kurtz Ambulance Service to manage both fire suppression and ambulance services for the community.
The move is expected to set a precedent in the south suburbs, where many municipalities are struggling with rising operational costs. The village attorney mentioned that discussions are already underway with three other communities considering similar outsourcing strategies. He believes this could lead to a broader shift in how local governments handle essential public services.
Kurtz Ambulance will take over the fire department on December 1. As part of the deal, the company will deploy 12 full-time firefighter/paramedics in four-person shifts, replacing the current team of over 30 part-time firefighters. Four of these positions will be filled by existing Calumet Park firefighters who have agreed to transition to full-time roles with Kurtz.
The village will pay $825,000 in the first year of the contract, with annual increases up to $925,000 by the end of the five-year term. This amount does not include the fire chief's salary or expenses related to building maintenance, equipment, and utilities. In fiscal year 2019, the village allocated nearly $1.5 million for the fire department, and officials hope to save at least $500,000 annually through this partnership.
However, the separation agreement with the union will cost the village around $240,000 in the first year. Union members will receive half their severance payment on November 30 and the remaining half in early 2019. Martin Rita, a 12-year union member and president, expressed concerns about the quality of service from a private company, even though he was relieved that four firefighters would stay on during the transition.
The mayor praised the current firefighters and emphasized that the decision wasn’t based on the quality of service but on financial necessity. A major factor in the decision was the realization that 18 part-time firefighters were eligible for pensions, potentially leading to long-term liabilities. Rising workers’ compensation and healthcare costs for the department also played a key role in the choice to privatize.
Looking ahead, Calumet Park hopes to expand its private fire and paramedic services beyond the village, aiming to generate additional revenue. Officials plan to establish intergovernmental agreements with neighboring communities, similar to the existing 911 dispatch arrangements operated by Kurtz.
This development marks a significant shift in public safety management. Joe Richert, a representative of the Service Employees International Union Local 73, noted that this is the first time a unionized fire department has been replaced by a private firm.
Pat Devaney, president of the Associated Fire Fighters of Illinois, said while the idea of privatizing fire departments isn't new, there are very few examples of such moves being successfully implemented. North Riverside is one such case where legal challenges prevented privatization, but no other municipality has followed through on the threat.
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