The Case Of The Well-Equipped Fire Firefighters

The headlines in the Washington Post (Sunday, May 22, 1994) read: "Using public funds, volunteer fire departments in Disney County have acquired millions of dollars in costly equipment that is rarely used and may be unnecessary, according to a recent study of the county's troubled fire protection service." Also, according to the study, "Much of the equipment has been purchased from a local company whose employees include top volunteer fire officials."

Background

Disney County volunteers are some of the best equipped in the state. With its population of 236,000, the county has 37 ambulances; the District of Columbia, with more that twice the population, has 26. And Disney County has almost as many fire engines (which cost $225,000 apiece) as neighboring Big Time County, 31 to 33, despite having a quarter of the population and a fraction of the property value. In addition, the department’s own 54 vehicles and boats, most of which are at the disposal of chiefs and assistant chiefs on and off duty.

Like many counties with a rural past, Disney still depends on volunteers, who own all firehouses and equipment and are responsible for staffing the stations on nights and weekends. As the county has grown, more and more paid firefighters have been hired by the county to augment volunteer roles by staffing fire stations on weekdays. Still, there has been a dwindling supply of personnel to man all equipment sitting in the county's 16 stations. Poor relations between the volunteers who actually own the stations and the 100 paid firefighters, who tend to think of themselves as being relegated to second-class status, contributed to a recent mass resignation of 20 percent of the paid staff. Erratic attendance by volunteers during their traditional shifts has further compounded staffing problems at various county stations.

The Study

Disney County "tends to be a fire apparatus-maker's dream because they buy the best and they buy a lot", said Will Becheckin, whose consulting firm, Digup-Dirt, Inc., recently completed the study of Disney County fire protection for the county board of supervisors. "They spend the money because they have it. It's like the kid who spends his money on toys because he has it to spend."

The Issues

During the last few years, as the county government has struggled to stretch its tax dollars and has laid off scores of county workers, the volunteer departments have used public funds to buy elaborate ladder trucks, engines, ambulances, sport utility vehicles, and even boats. In the last fiscal year, the county's 12 independent volunteer fire companies spent $1.3 million on equipment, including such items as a $700,000 aerial ladder truck - one of the most expensive sold in the United States. Custom built by an out-of-state manufacturer, the truck came with a 105-foot ladder, engraved along its length with the fire department's initials and wired with ornamental red, white, and blue lights. There were already two ladder trucks located in stations within four miles of the station to which the new truck was assigned, although few buildings in the county stand taller than 45 feet.

According to the county's paid firefighter union president, adequate staffing is a problem that must be solved by funding the costs associated with hiring and training additional paid firefighters. The county executive has also expressed an opinion that the county has outgrown the concept of volunteer firefighters and feels that serious consideration should be given to staffing all stations predominately with paid personnel.

Back to the original problem of equipment expenditures, the following additional facts were uncovered during the study commissioned by the county:

About two-thirds of the equipment in county fire stations has been purchased from a locally based company - Exquisite Fire Equipment, Incorporated (EFE), which is owned by two honorary "lifetime members" of East-side Company, the largest and oldest volunteer fire company in Disney County. East-side Chief Jock E. Books works as an EFE manager. His assistant chief, Don B. Knowin, and Bandy Jim Upp, the chief of the volunteer rescue department in nearby Dumbtater, an incorporated city within the county, work in sales and marketing. Other volunteers throughout the county work at EFE as well. All 16 of Dumbtater's and East side's rescue vehicles were bought from EFE.

Chief Books declined to comment when asked about his 15-year relationship with EFE, referring all questions to the firm's owners. When contacted, EFE's owner, Nowel Knothing, maintained that nothing had been improper and that no conflicts existed between his workers and the volunteer fire companies. He explained that EFE received a large share of the county's business because of economic and service related issues and that the county was an important customer long before the chiefs came to work for his firm. Local proximity, service, and quality of product lines carried were offered as further reasons for the large volume of county business over the years.

Perhaps one of the most interesting statements made by Nowel Knothing was his contention that the relationships between buyers and seller was blown entirely out of proportion. "The taxpayers don't ask these questions. Only reporters ask these questions", he said.

The relationship has drawn criticism from county officials because the purchases have been made largely without any government oversight. After several recent complaints that volunteer fire companies have tailored specifications to favor particular dealers, Disney County officials have initiated a report on bidding practices, according to the deputy county executive who oversees the fire service.

Even with all that has happened to date, state and county lawyers have said that the volunteers don't have to abide by the rules of public bidding since each fire company is an independent, private corporation. Critics of the system, however, argue that because the county's 12 fire companies get $7 million annually in fire levies (based upon county approved budgets which they submit) collected like taxes from residents, they should be required to submit purchases to some sort of oversight and to open bid.

County supervisors have been reluctant to compel volunteer chiefs to rein in their spending. Each of these volunteer companies is a separate, independent state corporation. They all have their own business practices and policies, according to unnamed county officials, who further stated that the county has no role in the process. County officials generally accept the integrity of the volunteer system and consider their service of great value to the community. Furthermore, because the volunteer fire companies tend to generate the bulk of their operating revenues from their own fund raising efforts, elected county officials see this as an opportunity to avoid the issue of higher taxes that would most certainly result if a paid fire service were to be implemented.

The county is, however, attempting to establish some standards for volunteer company spending and accountability for funds and other resources derived from the fire levies. The volunteer's political clout and the fact that they spend so much of the resources that they raise on equipment has further damaged the morale of the paid firefighters and contributed to the resignations mentioned above. The paid personnel maintain that they can't even get adequate clothing, boots, or other personal equipment, yet hundreds of thousands of dollars continue to be spent on exotic equipment.

Student Analysis and Recommendation:

1. Identify and discuss the major issues surrounding this case. (40 points)

2. Present a recommended course of action for resolving/dealing with each issue identified above. (40 points)

3. Propose a comprehensive methodology for ensuring that these problems don't recur. (20 points)

In preparing your responses, please fully explain and defend your analysis and recommendations.

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