Fire Costs Targeted

by Melissa Bailey | September 3, 2008 12:23 AM | | Comments (15)

IMG_0096.JPGAs the threat of more layoffs looms, two aldermen looked to save money by tackling a sacred cow, the city fire department.

In a directive introduced to the Board of Aldermen at Tuesday night’s meeting, Beaver Hills Aldermen Carl Goldfield and Moti Sandman called on the city to investigate ways the city can save money by rethinking the role of firefighters.

The order directs Chief Administrative Officer Rob Smuts to investigate several potential cost-saving measures: Reducing firefighting staff, using city vehicles to transport victims to the hospital, and charging medical insurers for medical services.

Their proposal comes at a tough budgetary time for the city. Two months after its fiscal year began, the city is still struggling to negotiate with unions on how to close a $5 million gap in its FY08-09 budget.

The city has said that more layoffs may be coming if the unions don’t agree to make concessions in areas such as medical benefits, pensions or pay raises.

Citing the “strong possibility” of such layoffs “in the very near future,” Sandman and Goldfield urged Smuts to whip up some numbers on the city’s second-largest department (not including the Board of Ed). The fire department has a $31 million line item in the FY08-09 budget; the police department rings in at about $37 million.

Only a small fraction of the work firemen do is suppressing fires, the aldermen noted. A total 85 percent of fire department resources go towards medical services, while only 15 percent goes towards fighting fires, the aldermen wrote, citing 2005 data. This is because firemen are the first responders to the scene of any 911 call, be it a heart attack, a homicide or building leaping with flames.

Untapped Revenue?

Looking for an untapped revenue stream, the aldermen zeroed in on the medical side. The fire department has two emergency response units (also called Advanced Life Saving, or ALS units, basically big ambulances). The units don’t charge for the medical treatment they give out, such as putting victims in a neck brace, or for transporting them to the hospital.

Revenue for those tasks goes to the American Medical Response, which operates ambulances and also treats people at the scene.

In each ambulance run, Sandman sees an opportunity lost: If the city transported those victims, it could earn roughly $800 to $900 a pop, he said. He estimated total untapped revenue at in the “tens of thousands” per year, combining transport with other medical services.

Smuts, who has separately been tackling these issues, said he recognized the potential revenue stream, but the bureaucracy required to start billing for those services would detract from the revenue. He hasn’t crunched the numbers on whether billing for those services would give the city a net benefit. He said he’d check into whether the billing could be done through AMR.

Pat Egan, the fire union’s president, welcomed the line of inquiry.

“If there is a revenue stream that we’re missing out on, we should take a look at it,” Egan said after the meeting. “Other municipalities have found a way to tap into that,” he said.

A Staff Reduction?

Egan wasn’t so eager about another direction aldermen were leaning — towards changing the firefighters’ minimum staffing requirement. A clause written into the firefighters’ labor contract requires the city to keep at least 73 firefighters on-duty per shift. The mayor conceded to the new requirement in 2006, during his gubernatorial run.

“We ask that the CAO look at the cost saving - if any - in removing or reducing the minimum staffing requirement,” the aldermen’s order read.

Changing that requirement would require changing the labor contract, which expires in 2011.

Egan warned against tinkering with the staffing pledge — a move that he said would threaten the lives of firefighters and residents alike.

“We’re talking about people’s lives here,” Egan said. “Firefighters who have families to go home to want to mitigate our chances of getting killed as much as possible, and that happens by having the proper manpower on scene.”

The last time the city tried to close a firehouse, residents were “up in arms,” Egan recalled. A strong resident and union lobby blocked the move when the city proposed shutting down the East Grand Avenue firehouse a few years ago.

“The citizens’ response was pretty quick, and pretty clear,” Egan recalled. They didn’t want their lives jeopardized. They didn’t want a price put on their heads.”

Egan also defended the minimum staffing requirement for two reasons: One, he said it merely reflected existing staffing levels on the force. And two, the clause came coupled with cost-cutting overtime agreement. In the same contract as they secured the minimum staffing requirement, firefighters agreed be paid regular wages, not higher overtime wages, for overtime work.

Sandman cautioned that he is not advocating any specific changes, yet . He’s just asking for information to be gathered so the city can make fiscally responsible decisions as it plans ahead for its next budget year.

“I’m not advocating cutting staff,” Sandman said. If Smuts comes back with a recommendation that would deplete staffing levels, Sandman said he wouldn’t be afraid to push for that change.

“I know it’s not going to be an easy sell,” however, Sandman said.

The aldermen’s proposal was largely based on an outside audit done in 2002 by the MMA Consulting Group, Inc., of Boston. The report gave two suggestions, both of which called for expanding the medical services provided by the fire department.

Aldermen gave Smuts 90 days to come back to them with a report. The report is to include the city’s options, including “the status quo, refashioning the department into a First Responder Department,” and “reducing the size of the department.”

Egan said he’d be open to discussing expanding firefighters’ medical role.

In the hallway outside the meeting, Smuts agreed to report back within 90 days. He’s already been thinking through how to reform the department: Click on the play arrow for an April video in which Smuts explains the topic.

Tuesday night he said the options the aldermen proposed are “definitely worth looking into,” though he could not comment on their feasibility. Smuts predicted that staff reduction would be likely if more revenue is not found.

“If we can’t figure out a way of getting additional revenues on the medical side, I would not be surprised if there is strong budgetary pressure” to cut the staffing side, Smuts said. Those cuts would likely not come until 2011, when the union contract is up.

In the meantime, Egan said he’s open to answering questions at an aldermanic hearing, which should happen in the next 30 days.

“Everybody has the right to ask a question,” said Egan, “and I certainly with be glad to give my answer.”







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Comments

Posted by: jeffreykerekes [TypeKey Profile Page] | September 3, 2008 6:52 AM

I am glad to see that these two aldermen are looking more closely at the NHFD, as I would any closer scrutiny of any department. What ever happened to the list of BOE contractors that the BOA agreed to cut funding on if the list was not submitted?

I know Smuts has been looking into the NHFD issue for some time and NHCAN made these same proposals over a year or more ago. Looking into medical billing is a great idea. I would not limit looking to AMR to handle this function as there are businesses across the country that specialize in this and may provide a cost savings over AMR.

One way to judge whether changing staffing levels in the NHFD changes the desirability or places too much of a "price on your head" is whether people still want the job at NHFD. According to Smuts, it is harder to get a job as a NHFD Firefighter than to get into Yale. NHFD has a lower acceptance rate than Yale meaning there are many, many, many, people applying. If the job becomes less safe, people won't want it.

Posted by: hdavid | September 3, 2008 7:52 AM

It is refreshing to see how a fiscal crunch can sharpen minds and force our leadership to think the hitherto "unthinkable". As Jeffrey points out NHCAN made these same suggestion six months ago.

Our CAO is a competent individual who can execute what is required -- if so directed. Perhaps this Aldermanic initiative from two unlikely Alders may be a signal that someone up there is accepting that cost-effective management of all City services is a precondition for new revenue streams.

The $31 million cost for Fire Services is driven by the two basic factors -- staffing levels and compensation package. The proposal described addresses the staffing level and extraction of some revenues for performing these services. It does not even mention the compensation package side of the equation, although these may be related -- you want fewer firemen, we want to take home more to keep our fire staff from having to worry about putting food on the table.

For years we were given to understand that the minimum requirement for 73 firemen was a safety requirement related to staffing for peak needs. There are other options for this especially as we now know that true structure fires are extremely rare due the improved education, building design, etc..

The proposal to attempt to bill for such EMR services is worth pursuing. However, let us determine whether the nature of the individuals so served have the capacity to pay -- and whether or not the City will choose to send such individuals to collections. Perhaps AMR can enlighten us as to their success in being paid for these services and how much of these costs are considered a cost of doing business that is recovered from other non-911 initiated ambulance runs??

Jeffrey is right about avoiding giving this billing functions to AMR to perform. Aside from the fact that there are other billing service providers, the issue is whether we should consider letting AMR do the entire 911 role and limit our finest to the original task of fighting structure fires!!! Yes, we can anticipate the objections -- how do we staff for peak fires, how can we trust profit making entities to do anything as well as public spirited employees, etc..

These are legitimate considerations that should be directly addressed, but as long as structural changes are being considered we should review all constructive proposals and make the proposed review as comprehensive as possible.

I have not seen or heard about any analysis of the "raison d'etre" -- I have to sound sophisticated in these matters!!! -- for peak staffing of the fire department. The discussion would be enhanced if we had access to a study of the distribution of truly structure fires -- their timing, their cluster distribution, etc. Then we could determine what levels of staff would be necessary to address peak structure fires -- using mutual support agreements with adjacent townships, cross training alternative City or other resources -- Police ??? -- to support firemen in this limited structure fire fighting role.

It is encouraging to see someone up there beginning to realize that we must look at internal solutions to reduce costs since State and other funding is unlikely. But I will restrain my enthusiasm until we see some results!!!

By the way, do our Alders know the average compensation package of our firemen?? Jeffrey alluded to this with his reference to the ratio of new firemen applications for every available job. Jeffrey is too polite to mention that the total compensation package for firemen is north of $110,000 per year -- salaries, overtime, benefits, etc. Perhaps a study of such and similar jobs in surrounding cities would help define what is an appropriate package.

My coolness -- who is feeling a bit warmer today.

Posted by: Joey | September 3, 2008 8:34 AM

Anyone even pondering the thought of reducing the staffing should be relieved of there responsibilities. Transporting patiants will bring in revenue. to be effective the city will have to add additional emergency units to its fleet. And the majority of people who apply to the fire service do not care about the dander of it. Its all about pride and the tradition of being a firefighter as well as great inner reward.

Posted by: downtown d | September 3, 2008 8:36 AM

I know that I kicked around the idea used in some other towns around the country to use registered nurses or nurse practitioners as first responders for medical emergencies instead of sending out the fire trucks. Not only would it cut back on staff expenses, it would also reduce sound pollution and increase quality of life.

anyone know of how bad/good an idea this is?

Posted by: FairHavenResToo [TypeKey Profile Page] | September 3, 2008 9:50 AM

I completely concur with Downtown D. I live by a fire station and the number of non-fire calls they answer is absurd. Not to mention the number of false alarms. That has to be a huge drain on the budget, just due to the fuel costs of those huge trucks. I've often wondered how many runs per month are actually legitimate.

Posted by: Mark [TypeKey Profile Page] | September 3, 2008 10:02 AM

Is it possible to look into the agreement between Yale and New Haven? The university relies completely on the city for fire services, including many false alarms to the Library system. What is the arrangement for this, and how frequently is it negotiated?

Posted by: Gary Doyens | September 3, 2008 10:08 AM

The idea of generating tens of thousands of dollars when you have a $5 million gap doesn't seem to be a very profitable vein of inquiry, unless the city intends to put ALS ambulances at every fire house and quit rolling the fire trucks to medical calls which are a complete waste under any scenario.

But the fundamental question continues to be that the city's expense structure is out of whack with its revenues and its prospects for growth as measured against any metric. You have nearly 5,000 employees for a city of just 125,000 people, a third of which are living in subsidized housing. Government leadership has allowed years of mission creep, generous compensation and benefit packages, and new debt to overwhelm our ability to pay for it. We are at a cross roads.

Where is the plan to bring it into balance? Where is the mayor?

Posted by: FacChek | September 3, 2008 10:35 AM

A Staff Reduction?

"Egan wasn't so eager about another direction aldermen were leaning -- towards changing the firefighters' minimum staffing requirement. A clause written into the firefighters' labor contract requires the city to keep at least 73 firefighters on-duty per shift. The mayor conceded to the new requirement in 2006, during his gubernatorial run".

Why even bother laboring to research and comment on this issue further.
In 2006 the mayor gave away the store and all the profits in order to look pro union in his failed attempt for governor.
The contract has another three years until re-negotiations can begin.
Goldfield and Sandman are merely raising false premises by offering this issue now, only to back slide later.

Remember, the spending of 3.1M for the fire recovery, including the 1M pay-off to Spector, has not yet been approved by the board of alderman.
Now that's something positive Goldfield could be doing.

Posted by: anon | September 3, 2008 11:46 AM

How about the Mayor proposes an across the board 20% cut of all city administrative and union salaries. People can't even afford to heat their homes this winter. We all need to sacrifice. Use part of the savings to lower taxes, before more families leave the city.

Posted by: cedarhillresident | September 3, 2008 12:47 PM

Harry Jeffery love your comments And yes NHCAN has been suggesting this for sometime.

People, first of all the board of Alderman pasted an UNBALANCED budget! And here we are Sept. 3 and it is still UNBALANCED!!!! Here we are gearing up for the next budget and this one is STILL NOT BALANCED!

As Gary stated spending is key. Restructuring the city departments is a must. What was financially possible before is no long the case.

I to am happy to see that these alders have come froward with this. But coming up to the next budget year with nothing left to sell, where are we going to be??? Mill Rate increase on top of the ridiculous faze-in. We need to start this now!! City policy's need to be re written. The ideal thing would be Hartford would change some requirements and laws. And my fairy tail dream to institute property tax reform. But we all know that this and pilot money may not happen. And instead of putting our eggs in this basket, like we did last year we need to be smart enough to know that spending in our great little city needs to be restructured.

:)

Posted by: concerned jake | September 3, 2008 12:57 PM

I wouldn't be so ready to jump on the transport bandwagon. The revenue is not there. most calls for service are to the uninsured, underinsured, or on assistance. These fees are capped by state regulation.

As far as staffing reduction, this is a well documented health and safety issue concerning the public and firefighters alike.

The fd simply does not have enough paramedics to run their current non-transport system and they don't regularly hire paramedics because current civil service rules don't allow these skilled workers any preference on entry testing.

Even departments that do recruit paramedics like wallingford have trouble getting medics. Further, these medics won't even be used and abused like they are in new haven.

It is a huge investment in time and money to train employees of the fd and in fact there is a high academic attrition rate so the department can spend hundreds of thousands on traing a crew of paramedics only to have them fail the program.

What will the diversity police say about hiring only paramedics? As I recall the city scuttled two valid civil service lists for promotion to lieutenant and captain and ruined the dreams of some solid fire officers. What will the disparate impact be on a paramedic test? Last I knew there was no surplus of minority paramedics.

Staffing reductions will only further damage emergency mecical services as most paramedics on the job have less seniority and would likely suffer if there were reduCtions. The department would go from bad to worse.

Actually, with the exception of a shortage of medics new haven has the ideal and most efficient system. Engine companies are cross trained and do double duty. They are supplemented by the two medic units. When not on fire or medical calls much down time is spent training.

The system needs fine tuning and quite frankly there hasn't been a great deal of cooperation in trying to get the kinks worked out but maybe this will help.

For a change, why don't you listen to your people within the department who have tried to get these issues corrected for many years and these concerns have fallen on deaf ears.

Staffing reductions will only delay response times costing lives and result in avoidable property damage.

By the way, how many assistant principals are needed at one school? TAlk about wasting resources.

Posted by: che15 | September 3, 2008 11:33 PM

these aldermen should propose a cut of everything screw it. from now on the fd should only respond to calls they deem worthy. drunk passed out on the green in front of alder clown home, sorry move him yourself. woman with fever on kensington street, take sometylenol. man with laceration to wrists in morris cove, call ct mental health.
now lets cut back the cops. boy shot on congress ave, if only a flesh wound please drive to the hospital and if you want to make a complaint please call the police at a later date. youths on bikes in east rock intimidating the residents, pleasse define intmidating first and call critical mass for advice. your cable is out, please no more calls to 911.

The fact is the city of new haven relies heavily on its emergency services for an assortment of problems. contrary to popular belief emergency services usually solves these problems. Emergency services is the face of new haven government. find an alderperson who has ever solved any of your problems without emergency services. you probably cant. times are tough no doubt but think about what the city's emergency serviceshave done for the city as a whole. Ask what has the media done for you, your alderpeople have done for you, and what you have done for yourselve.

Posted by: jeffreykerekes [TypeKey Profile Page] | September 4, 2008 7:11 AM

Concerned Jake:

Assistant principals and contractors are a real concern. BOE is the single largest component of the budget. We have failing schools but the largest school construction program in the country.

The city's budget can really be boiled down to three departments, BOE, NHFD & NHP, about 79% (from the top of my head). All other departments make up the small remainder. BOE is by FAR the biggest part, or about 65%. Police and fire come in at about 7% each.

The aldermen past a resolution to cut off funding to BOE contractors if a list of contractors was not provided sometime this summer. I am unsure if that list has been made available yet. This is clearly a place to start looking into cuts. I hope the BOA will cut funding to the BOE if they don't have that list. If not, it would marginalize the BOA's role in this city even further. If they can't even get a list of expenses at BOE, there is not much point in having a BOA. We could save another $90k.

Posted by: pissed | September 4, 2008 8:26 PM

I can't believe that the alderman has the nerve to even think about reducing the staff in the NHFD. when was the last time he had to run all night for medical calls, false calls where someone just wanted a ride to the other side of town. Maybe he should volunteer at the FD and see what's it like. Paramedics are paid only $1 more per hr than the other ff's. If the city is having a problem, maybe Destefano can institute a card program for everyone to receive discounted rates for the medical calls the fd has to respond to. Oh yeah and since the illegals don't have to pay taxes, you would rather boot a working person's car so they can't go to work to pay the past due taxes. the problem is not with the police dept or the fire dept, its the people handling the budget. i'm sure they don't take a cut in their pay. All I can say is shame on you mr.alderman. I pray your never in need of medical attention, and the response time is 1/2 hr. And with the cost of heating I'm sure the number of calls for carbon minoxcide poisoning, and fires from bad electric blankets and kerosene heaters, that are sure to come, you might not want to make a decision on cutting FD personnel just yet. Its nice to see that we can put a price on someone life, and take away from someones family. "What a pro-life person you are".

Posted by: chuck d | September 5, 2008 1:31 PM

Why don't we charge the illegal aliens $10 to get into Lighthouse Park?? On a good weekend that could easily turn into 20K. Remember Lighthouse can easily have 1000-2000 cars enter it's gates on a typical summer weekend. That's money lost and remember the home-owning tax paying legal residents get in for free by paying their taxes. Illegal aliens getting in for free can easily turn into 50K a month during the summer (depending on weather). Why cut public safety when we have an untapped source of income - illegal aliens using municipal services like Lighthouse?

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