Uncertainty over how much Crest Forest Fire Protection District's unfunded pension liabilities will cost the district caused tempers to flare at Wednesday night's board meeting, and only calming words by County Fire Division Chief Jim Johnstone defused tensions.
Financially stretched to maintain the current level of fire protection services, the district is hoping that outsourcing services to County Fire will be the solution to how to protect the community in future years.
But weeks ago, after fire board members directed the district's division chiefs to begin working out a contract with the county, the issue of unfunded pension liabilities arose.
No hard numbers have yet surfaced from San Bernardino County Employees Retirement Association (SBCERA), but rumors and speculation have unfunded liability costs as high as $15 million, or payments due to SBCERA from Crest Forest Fire somewhere between $250,000 and $400,000 annually.
It's that uncertainty, along with the district approving a 2012-13 budget balanced only by dipping into reserves, which fueled last night's tensions early in the meeting.
Board member Ken Nelsen's fears concerning the district's future quickly surfaced following a report from Division Chiefs Jerry Ringhofer and Jon Garber that there was no answer as yet from SBCERA.
Nelsen said he wanted to hear what other options were being looked at if unfunded pension costs proved a stumbling block to outsourcing services.
“Who's looking out long term,” he said. “Our budget is negative, and we're spending our reserves” to balance it, he added.
Nelsen then hinted that if the district kept spending its reserves to balance budgets, at some point it would face the danger of going bankrupt. That could force the district to dissolve.
Board member Leslie Dodge-Taylor said she also wanted to see what other options might be available.
“We need to do our due diligence to see what it would take to stay a district,” she said.
She said that the district had enough rough numbers from SBCERA to begin looking at other options.
That's when tempers started to flare. Nelsen began arguing with Jeffre Ferre, the district's legal counsel, over how to proceed, with Ferre recommending the public be allowed to speak, followed by board discussion. Nelsen basically told Ferre to butt out.
Firefighter union president Omar Aguilar added to tensions by in effect accusing Nelsen and Dodge-Taylor of not responding to his telephone calls.
“Seems like the two of you (Nelsen and Dodge-Taylor) have talked a lot about this,” he said. “What plans do you guys have? We're the ones that have been going to the meetings.”
As union president, Aguilar has been involved, along with the two division chiefs, in trying to get SBCERA to answer the question of how much money the district owes in unfunded pension liabilities.
It was at that point, with friction building between Aguilar and the two board members, that County Fire's Johnstone asked to be heard.
“This has been a stressful time from the get-go,” he began. “Whether you stay or go (independent or outsource services), we're supportive. You have my pledge.
“I understand your frustration,” he continued. “And there are decisions to be made. I believe we are making progress.”
Johnstone encouraged the board to give the process more time. He said County Fire is helping to come up with the answers.
Johnstone's remarks quickly calmed attitudes.
In the end, the board agreed to wait another two weeks to see if SBCERA would come up with the unfunded pension liability costs the district would face.
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