Excerpts from ChicagoTribune.com:
In a groundbreaking decision that could reshape emergency services in small suburban towns, Calumet Park has decided to outsource its fire department to a private company in a bid 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 handle both fire suppression and ambulance services.
The move is expected to have a ripple effect across the south suburbs, where many communities are struggling with high operational costs. According to the village’s attorney, discussions are already underway with three other local municipalities about similar outsourcing efforts.
Kurtz will take over the fire department on December 1. As part of the deal, the company will employ 12 full-time firefighter/paramedics to replace the current team of more than 30 part-time workers. Four of these new hires will be former Calumet Park firefighters who have chosen 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 a maximum of $925,000 by the fifth year. This figure does not include the salary of the fire chief or the costs for building maintenance, equipment, and utilities. Calumet Park, which allocated nearly $1.5 million for its fire department in fiscal year 2019, expects to save at least $500,000 annually through this arrangement.
However, the separation agreement with the union will cost the village around $240,000 in the first year, as each member will receive $1,000 per year of service, paid in two installments. Martin Rita, a 12-year veteran and union president, expressed concerns about the quality of service from a private company, even though he was pleased that some firefighters would remain on board during the transition.
The mayor praised the previous firefighters but emphasized the financial necessity of privatization. The decision was partly driven by the fact that 18 part-time firefighters were eligible for pensions, potentially leading to long-term liability. Rising healthcare and workers’ compensation costs also played a role in the choice to outsource.
Looking ahead, Calumet Park hopes to expand its private fire and paramedic services beyond its borders, aiming to generate additional revenue for the community. The village plans to enter into intergovernmental agreements with neighboring areas, similar to how it currently provides 911 dispatch services through Kurtz.
This move marks a significant shift in the way public safety services are managed, and it has drawn attention from labor unions and fire departments across Illinois. Joe Richert of the Service Employees International Union Local 73 noted that this is the first time a private firm has taken over a unionized fire department.
Pat Devaney of the Associated Fire Fighters of Illinois said that while privatization threats are not new, few communities have actually followed through. He highlighted that North Riverside was an exception, where legal challenges prevented privatization.
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