The City’s bankruptcy exit plan projected millions in savings by contracting fire services out.
As San Bernardino approaches a 4th year of bankruptcy, the bankruptcy exit plan is facing a rocky implementation on the fire services front. While San Bernardino expects to save on pensions and other aspects of contract work, city manager Allen Parker stated that it is “bordering on a crisis.”
Firefighter unions have tried to block the contracting for services, and while a judge rejected their first request, they plan to appeal. The union have several lawsuits filed regarding pay raises, something most other unions have resolved.
Additionally, Governor Brown signed AB 868 which allowed police and firefighters to transfer CalPERS pension credits to the San Bernardino County retirement system.
On the contracting front, the San Bernardino County Fire Department and Centerra, a private firm, are the two bidders looking to get the contract. It is expected that the contractor would rehire city employees.
Speaking on pensions more broadly, things get even more interesting as the city is still on the hook for the year of missed CalPERS payments. A tentative agreement has San Bernardino paying back the missed year’s payments over the next two years plus interest.
The recent SB 222 could also help as could give bonds more protection in municipal bankruptcies by placing a “statutory lien” revenue used to back the general obligation bonds issued by local governments.
For further reading on the San Bernardino Fire and Pension situation, see here.