Fire protection services in Chester and the adjacent area have reached such a critical stage that officials are appealing for help from the Plumas County Board of Supervisors and the Local Agency Formation Commission.
“It’s a horrible situation,” said Supervisor Kevin Goss.
The Chester Public Utilities District’s fire department ceased nearly all operations Feb. 29. Since then, it has relied on Peninsula Fire Protection District for round-the-clock fire and emergency medical services to Chester residents. Peninsula Fire, a neighboring district, has received no extra revenue to support its services and staffing a station in Chester.
That is a burden Peninsula Fire can no longer carry, said Adam Cox, general manager of the Chester PUD. Without funding to reimburse Peninsula Fire for its costs going forward, Peninsula Fire has said it will be forced to step back from the arrangement, leaving Chester with only one option: hiring Cal Fire at an even higher cost, he said.
“The other option is draconian.”
Adam Cox, Chester Public Utilities District general manager
Cox and Peninsula Fire officials have petitioned Plumas County LAFCo, which approves local district annexations and consolidations, to dissolve the fire portion of the Chester PUD and annex it to the Peninsula district. They also asked the county supervisors for $50,000 to cover the costs of the annexation.
“I understand it’s a heavy lift but the other option is draconian,” Adams told the board of supervisors Oct. 15.
LAFCo approval may be rescinded
LAFCo met Oct. 21 to consider the annexation process. The first step is to conduct a review of the services provided by the two fire districts.
The goal is to combine the districts to allow Peninsula Fire to collect taxes from Chester Fire district residents, said Goss, chair of the LAFCo board. If approved, Chester residents will continue paying the existing Chester Fire parcel tax of $95 per year for approximately 30 more years, until the debts are paid off. In addition, beginning in 2025, Chester residents would also begin paying Peninsula Fire’s voter-approved parcel tax of $440, said Cox That fee is to pay for Peninsula’s costs of operating in Chester. The fire districts are not asking for funds to cover any of Peninsula’s operational costs, Cox said.
The LAFCo board’s Oct. 21 agenda included adopting the municipal service review required for annexation. The process is facing an ambitious timeline. It requires notification to Chester taxpayers by the end of December, Cox said. If all of the bureaucratic steps are not completed this calendar year, the Peninsular Fire district will have to wait 12 more months for reimbursement, Goss said.
That is the worst-case scenario and it could require fire protection services provided by Cal Fire, the state’s firefighting agency, said Cox. Those costs would be “exorbitant” if Cal Fire sued to collect them, he added.
The already complex scenario was further complicated Oct. 21 by an error in the posting of the LAFCo agenda. The time listed on the public announcement was 1 p.m. The board, however, met at 10 a.m., its usual meeting time. No one from either Chester or Peninsula fire district attended.
Posting an incorrect time denied the public the opportunity to participate in the LAFCo meeting and could be a violation of the Ralph M. Brown Act, California’s open meeting law. The LAFCo board may need to rescind its actions and hold another public hearing at another date, Goss said.
Both the Chester and Peninsula district boards will be holding public hearings on the proposed annexation. The Chester meeting is scheduled for Nov. 6 . The Peninsula board is scheduled to meet Nov. 8, Cox said.
Paying for annexation fees
Cox and Peninsula Fire Chief Robert Gray did attend the county board of supervisors’ meeting Oct. 15 to ask for $50,000 in county funds to pay the costs of annexing the Chester fire district to Peninsula Fire.
The Chester fire district has accumulated what Cox called “a significant amount of debt.” It owes $1.8 million to the CPUD sewer fund, and is carrying $2.8 million in unfunded accrued liabilities to CalPERS, and approximately $900,000 in unfunded liabilities, he told the supervisors.
It is now facing a “complete lack of funds,” Cox said. Three separate ballot measures in two different elections attempted to raise revenues to allow it to continue to finance fire and EMS services. All three failed: one Nov. 7, 2023 and the other two May 7.
The $50,000 ask is an estimate. The costs of the proposed annexation could be reduced by LAFCo, Cox said, but he anticipates some charges for legal services, surveying, accounting and permitting.
The supervisors considered the request in a discussion that included criticism of the way the Chester PUD has handled its financial crisis.
“I understand the dilemma but it stems from mishandling,” said Supervisor Jeff Engel. “You are opening a precedent for other community services districts.”
“I don’t like spending the money but it’s in the county’s best interest to resolve this as soon as possible.”
Tom McGowan, Plumas County supervisor
Cox said he understood the precedent but added, “It would be a lot more expensive to have to hire Cal Fire when these fire districts go out of business.”
Supervisor Tom McGowan called the crisis “an exceptional situation.”
“We do need to move forward,” said McGowan, who represents the Chester/Almanor district. “I don’t like spending the money but it’s in the county’s best interest to resolve this as soon as possible.”
He strongly recommended giving any money approved to the Peninsula Fire district, not Chester.
Annexation on an aggressive timeline
The annexation process involves many steps that include contacting taxpayers and relevant agencies in the annexation area, said Debra Lucero, county administrative officer. The county has been working through a similar process following consolidation of several small fire districts to form the Beckwourth Peak Fire Protection District, approved Nov. 7, 2023 by voters in eastern Plumas County. It’s a time-consuming procedure, Lucero said, and December 15 is the soonest she would expect to get letters back from all the agencies.
“We’re moving as fast as we can,” said Goss.
Deputy County Counsel Sara James suggested delaying action to Nov. 5, the board’s next meeting. The request for funds was vague, she said, and her office had had no input. Any vote would require a four-fifths majority, James said.
“It’s a burden for all of us.”
Robert Gray, Peninsula Fire Protection District chief
Goss asked Cox if a three-week delay would be “a deal breaker.” “In my opinion, yes,” Cox replied.
Peninsular Fire Chief Robert Gray said all the districts in the Almanor area have been meeting since February to craft a solution to the crisis. “It’s a burden for all of us,” he said. “We can’t continue without some compensation. The problem is not going to go away.”
McGowan made a motion to approve up to $50,000 in county general funds to cover the annexation process expenses. Supervisor Greg Hagwood provided the second. Approval required a four-fifths vote.
When the vote was called, Supervisor Engel voted no. Supervisor Dwight Ceresola said he “passed,” which caused the motion to fail. Ceresola said he would vote for the funds if the motion stipulated that the $50,000 was a loan held in the Plumas County auditor’s office. That motion passed 4-1, with Engel voting no.
