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 the firefighters’ union and signed a five-year contract with Kurtz Ambulance Service to provide both fire suppression and ambulance services.
The village’s attorney believes this move may spark similar actions in other financially struggling communities across the south suburbs. He mentioned that discussions are already underway with three other local municipalities about potentially outsourcing their own fire departments.
Kurtz Ambulance will take over operations on December 1. As part of the deal, the company will employ 12 full-time firefighter/paramedics who will work in four-person shifts, replacing the current team of more than 30 part-time firefighters. Four of these new employees will be former village firefighters who have chosen to transition to full-time roles with Kurtz.
The village will pay Kurtz $825,000 in the first year of the contract, with annual increases up to a maximum of $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. The village, which allocated nearly $1.5 million for the fire department in fiscal year 2019, expects to save at least half a million dollars annually through this arrangement.
However, the separation agreement with the union—offering each member $1,000 per year of service—will reduce those savings. The total cost for severance is expected to be around $240,000, with payments split between November 30 and spring 2019.
Martin Rita, a 12-year veteran and union president, stated that while the union had proposed several compromises, they couldn’t reach an agreement to keep the department in-house. He expressed hope that the four current firefighters staying with Kurtz would help ease the transition, but he still worries about the quality of service from a private company.
The mayor praised the firefighters and never doubted their performance, but emphasized that the financial situation left no choice. A key factor was the discovery that 18 part-time firefighters were eligible for pensions, potentially leading to long-term financial obligations. Combined with rising workers' compensation and health care costs, the decision to privatize became unavoidable.
Calumet Park officials also plan to expand the private fire and paramedic services beyond the village boundaries, aiming to generate additional revenue. They hope to establish intergovernmental agreements with neighboring communities, similar to the existing 911 dispatch arrangements managed by Kurtz through the village’s emergency communications center.
Joe Richert, secretary-treasurer of Service Employees International Union Local 73, noted that this is the first time he's seen a unionized fire department replaced by a private firm.
Pat Devaney, president of the Associated Fire Fighters of Illinois, said that while the idea of privatizing fire departments isn't new, he wasn't aware of any other municipality besides North Riverside successfully implementing such a move.
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