A decision on the future of Los Osos’ fire department could be made in April.
The Los Osos Community Services District’s General Manager’s latest report said they continue to have talks with both CAL FIRE/County Fire and the Morro Bay Fire Department about a future contract.
Since last September, when the issue was first raised, “staff has been working with both agencies to see if 1) there was interest in contracting with District, and 2) if they would provide a proposal for contract services for the Board’s consideration,” G.M. Ron Munds said in his report that went to the LOCSD board at its March meeting.
He added that he expected to receive responses “in the coming week” and anticipates bringing it to the Board at its April 2 meeting.
“After the review,” Munds said, “the Board will have the opportunity to decide on which direction to pursue and direct staff accordingly on completing the contracting process.”
He added that since they will be well into preparing the next budget, the Board will have to make “a timely decision” so it could be included in the budget.
Though it has a fire assessment district, the LOCSD contracts with CAL FIRE/County Fire to run its single station fire department. The station is a full paramedic unit and has an excellent record of service that pre-dates the contract, going back to the days when it was the South Bay Fire Department. The LOCSD contracted with CAL FIRE in 2004 and at the time it was billed as a cost saving measure.
In a previous report, Munds said, “Since 2004, there have been relatively small increases in the contract amount in the 2% to 4% range.”
But that changed in the 2019-20 fiscal year when the County’s bill was hiked by 27%, then another 17% in 2023-24, and another 25% for FY 2025-26.
“These increases have outpaced the revenue sources with the projections for the fiscal year 2025-26 running a deficit of approximately $278,000,” Munds said.
That sobering figure prompted the LOCSD to look to Morro Bay about possibly merging the two fire departments.
Like Los Osos, Morro Bay has a single station fire department that is also a full paramedic service. But while Morro Bay’s budget comes out of the general fund, in Los Osos they have a special assessment district that pays for it. Raising rates requires a holding a protest vote under Prop. 218, and while that is normally a routine matter, it is possible that taxpayers could balk and reject any future increases.
The Morro Bay City Council, when asked to allow the fire chief to negotiate the matter, agreed to look into a possible merger of the two departments.
In his previous report, Munds listed the Los Osos fire department’s budget for FY 2024-25 at $3.81 million, rising to $3.92M in 2025-26, an increase of $183,000.
But it listed total expenditures for 2025-26 at $4.27M against $3.99M in revenues. Leaving a $278,000 shortfall.
“The current projected deficit,” Munds said, “is the first time since the District has contracted with the County/Cal Fire that there has been a shortfall.”
It should be noted that the County is at the mercy of the State with regards to pay and benefits paid to all CAL FIRE employees.
So if the Governor negotiates a healthy pay increase for CAL FIRE, it trickles down to all the various counties, cities and districts that contract with CAL FIRE for fire services.
While smaller agencies have advantages that come with a large department providing fire services — lots of personnel, training and equipment purchasing power — the men and women who work at the station in Los Osos are paid according to the contract.
Also, the larger department allows for more movement and opportunity for advancement for the firefighters, though it could mean having to move away from here to realize it.
