Sonoma County's new $22.4 million accounting and budgeting system has sparked a bitter bureaucratic feud with several local fire districts, prompting a growing number of them to cut financial ties to the county as the computer system goes live this summer.
The dispute is driven by what the fire chiefs claim are exorbitant costs charged by the county for a system both sides agree is highly inefficient. Exacerbating the issue, chiefs said, have been missteps during the new system's rollout for the dozens of special districts in the county.
Several chiefs said the county started off wrong by proposing prices that were later determined to be unjustified. Some claim the county then employed strong-arm tactics to keep fire districts from leaving the system.
"Enough is enough," said Gold Ridge Fire Chief Dan George. "Gold Ridge is pulling out. It'll save the district a little over $15,000 a year."
Of the county's 19 fire districts, seven to 10 are actively moving toward severing ties with the county. Five have notified the county they are out: Gold Ridge, Rancho Adobe, Bennett Valley, Kenwood and Graton.
"The county never thought fire districts would ever bolt," Rancho Adobe Chief Frank Treanor said in an email sent to numerous fire chiefs. He accused the county of "extortion" and playing "hard ball."
Several fire districts pay the county around $20,000 a year for accounting services. Outsourcing those services to a bank or other private financial institution will greatly reduce the cost, according to numerous chiefs.
Several more said they hope to pull their fire district from the county system in the coming year.
"The county is kind of throwing curves at us right now," said Forestville and Russian River Chief Max Ming, who plans to leave the county accounting system in the future. "If you are left behind are you going to absorb those costs? (If so) I don't want to be sitting here."
David Sundstrom, the county's auditor-controller-treasurer-tax collector, is shepherding the new system's rollout. He denied any efforts to retain districts and said he supports their attempts to find cheaper services.
"I've told them if they can find a better deal, please take it, one that does not have the onerous requirements we have," Sundstrom said.
Sundstrom acknowledged the county's initial price estimates were too high, which triggered the revolt. He said the large number of special districts in Sonoma County — 67 in all — made it more difficult for the county to project the proper costs that districts should bear.
"It's an awful thing how we're whipsawing these people," Sundstrom said.
Former Cloverdale Fire Chief Brian Elliott said the county's actions lack credibility. "They've been all over the map."
The unfolding issue has exposed tension between some of the largely independent districts and the county government, just as fire services across Sonoma County are in turmoil amid budget challenges and a shrinking volunteer base.
"It adds to the heat," said Elliott, now a private financial consultant for fire agencies.
The county's new accounting and budgeting system, which replaces a 30-year-old program, is one of the costliest capital projects in recent years. County officials have said the new software and hardware will help the county government better manage its $1.28 billion budget.
It is due to go live July 1.
Last year the county notified districts of their possible share of the cost of the new computer system, which is addition to the annual fees the districts pay for accounting services.
Some of the larger districts faced an annual cost of nearly $10,000 for the hardware and software, in addition to the cost of accounting services.
The county collects property taxes, holds the money and acts as bank and accountant-auditor for dozens of special districts, including fire, water and parks and recreation agencies. For some, the cost of county accounting services equals as much as $40 for every check the district writes to a vendor.
Unhappy already about how much taxpayer money the districts must spend on county accounting services, more than a dozen began to investigate options.
"As long as they have been doing accounting for us, they have charged an amount that includes all of their costs. The result is we pay close to $40 for each check," said Glen Ellen Chief Peter Van Fleet. "We always kind of grit our teeth and say 'Well, OK, we appreciate what the county does for us.'"
For his district, the initial fee for the new computer system was $5,800.
"Last year we paid $11,300 (for accounting services) and $5,800 on top of that?" Van Fleet said. "The computer (system) put us over the edge."
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