The Oceano Community Services District (OCSD) is worried that a fire services contract proposed by the cities of Arroyo Grande and Grover Beach will drain the unincorporated town’s coffers.
“They’re basing their proposal on what they think Oceano should have paid were we to remain in the Five Cities Fire Authority,” OCSD General Manager Will Clemens said at the May 10 community services district meeting.
Come June 30, the OCSD will officially exit the Five Cities Fire Authority, leaving itself and the remaining members, Arroyo Grande and Grover Beach, to grapple with the future of emergency fire and medical services. Limited funding sources for Oceano followed by two failed attempts to pass a special parcel tax to pay for those services prompted the Oceano to pull out of the joint powers agreement for the agency.
In January, the OCSD applied to the Local Agency Formation Commission (LAFCO) to relieve itself of providing fire and medical assistance to the community effective July 1. The OCSD requested that San Luis Obispo County provide emergency services to Oceano after LAFCO makes its decision.
However, the LAFCO process is expected to take 12 to 18 months to conclude. Until then, the OCSD needs to figure out an interim plan to provide services.
The proposed solution is a nine-month-long contract with the Five Cities Fire Authority (FCFA) that spans from July 1, 2023, to March 31, 2024. During that period, Grover Beach and Arroyo Grande would pay a combined total of almost $5 million for fire services, while Oceano pays $1.2 million to receive fire services from the agency.
Clemens said that the main issues with the proposed contract are that the nine-month length is too short and that the OCSD is required to pay more than the cities.
He added that a comparatively lower cost for the OCSD is justified because the proposed contract mentions that the district will receive fewer services because its local fire station will not be used. Instead, the FCFA will provide for the region using the two stations in Arroyo Grande and Grover Beach. Plus, the OCSD will have no say in operational decisions.
Clemens recommended that the OCSD try to negotiate the contract with the two cities. He suggested increasing its length to one year and keeping Oceano’s contribution the same, while increasing Arroyo Grande and Grover Beach’s share by an additional $1.6 million total.
Grover Beach City Manager Matt Bronson told New Times that the cities set nine months as a preference with the LAFCO process in mind.
Both Bronson and Arroyo Grande City Manager Whitney McDonald added that the costs for fire services are not allocated solely based on service calls. The funding formula also depends on population and station staffing. McDonald told New Times that the cities made the contract decision based on the assessment done by Baker Tilly—the consulting agency that assessed the Fire Authority’s finances.
“[Baker Tilly] concluded that Oceano should have $1,211,000 of property tax revenue available to pay for service in fiscal year 2023-24, which at $131,750 per month would equate to approximately nine months of service,” McDonald said.
Clemens announced at the May 10 meeting that the OCSD’s expected property tax revenue cannot be committed to fire services alone. It also has to pay for other services like lighting and the California Public Employees Retirement System. The board unanimously voted for him to negotiate on a flexible term that costs the district no more than $1.15 million total. Clemens said that he plans to send the OCSD’s proposal to the city managers on May 18, but reaching an agreement could be tough.
“During the discussion held with the Arroyo Grande City Council on April 25, 2023, direction was provided to offer a nine-month service contract at a cost of $1,211,000, so it is unlikely that the terms mentioned above [OCSD’s proposal] would be successful,” McDonald said. Δ
This article appears in May 18-28, 2023.