Crime & Safety

County Fire District Chief's Retirement and Consulting Kicks Up a Firestorm

Outgoing Chief Kenneth Waldvogel will continue his old job for six months as a consultant, while drawing his pension. It's perfectly legal and may be cost-effective, but it has drawn criticism.

Santa Clara County Fire Department Chief Kenneth Waldvogel retires in a matter of days, but he'll be staying on in the new year as a consultant while the county conducts an executive search for his replacement.

That's at his old salary of $236,691.  And he'll be drawing his $200,000 state pension at the same time. That's the rub. North county Supervisor Liz Kniss has called it "double dipping." County Executive Jeffrey Smith, who okayed the deal, says it would actually save the county money because it won't pay benefits.

"Clearly given what we're up against in terms of the budget, we need to look at these kinds of situations with the utmost scrutiny," said Supervisor Dave Cortese, the incoming board president, who prefaced his remarks that he was not familiar with the details of the arrangement.

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The fire district covers unincorporated Santa Clara County and includes Cupertino, Los Gatos, Monte Sereno, and Saratoga. It also contracts with four cities—Los Altos, Los Altos Hills, Campbell and Morgan Hill—to provide fire services.

Smith said he wanted Waldvogel's experience and leadership for six months while they searched for his replacement because the fire district has three big issues to handle: union negotiations, contract negotiations with the city of Morgan Hill, and an ambulance contract with the county's new provider. He was also concerned that Campbell, Los Altos and Los Altos Hills could be looking to reopen negotiations and the county would not have the leadership with the background  they needed to meet that challenge.

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On Wednesday, though, few were talking except Smith was talking. Kniss, who sharply criticized the arrangement Tuesday in the San Jose Mercury News, did not make herself available to further inquiries. And Waldvogel, a fire fighter praised highly as dedicated professional who spent his entire career at the department, referred all calls to his boss, Smith.

"The fact is, it's a better deal for the district," Smith said. He added, "The presentation of it being somehow inappropriate is pandering to the public's general belief that public employees aren't doing a job worth being paid for."

The question of the cost and sustainability of generous pensions in this era of diminished resources, however, has caused consternation across the state and the country. The issue surfaced in the recent election debate of Los Altos Hills Town Council candidates and looms over virtually every community. The Mercury News Wednesday opined that the problem is  commentary on Waldvogel's professional ability or worthiness, but the systemic problem of generous pensions that must be paid by taxpayers when stock market pension investments generate insufficient returns, was unsustainable.

State Sen. Joe Simitian (D-Palo Alto) has twice introduced legislation that would require retirees who are drawing a pension to wait six months before returning to work for the same organization.

"I don't like this arrangement and I don't think it's appropriate," Kniss was quoted in the Mercury News Tuesday. "I have problems with double-dipping, and I did not know this was how we were handling it -- if I did I would not have sanctioned it."

Kniss' aide said Tuesday afternoon that the supervisor stood by her remarks but she was not responding further to any media requests about the matter.

Smith said that hiring retiring executives to do their old jobs is not routine, but is used when circumstances are unusual, such as this case. The fact is, if Waldvogel were continuing in his job in 2011, the county would be paying his salary, plus his benefits, which add about 30 percent more to the county's costs. This arrangement eliminates 30 percent of the personnel costs from the budget, he said.

The retirement benefits come from paying into CalPers over the years, and retirees are vested in it. The money does not come from the general fund, he contended.

Smith opted for the consultancy because a lower-ranking fire department employee would not have Waldvogel's experience and background to meet the contract negotiations that are coming up, plus that person would have to do his old job and learn the chief's job at the same time, Smith said.

 "This is a person worked for his entire life for county, who is uniquely skilled and trianed, and the county's inveted millions of dollars into his training and development over the years, that we can't just grab out of thin air," Smith said.  

Morgan Hill has been entertaining the possibility of changing its contract to CalFire, the California Department of Forestry and Fire Protection, Smith said.

"CalFire is setting up to take over the Morgan Hill contract," he said. Losing that contract "would be a huge loss, with impacts throughout our fire district, and huge layoffs to compensate."

While Los Altos, Los Altos Hills and Campbell do not have contracts up for negotiation, they do have service issues and budgetary issues they're concerned about, Smith said. "And we fully expect they will come back look to look for a reduction in costs. Either side can reopen negotiations, trying to get a better deal."

Supervisor Cortese, from District 3 said that although the board can't change
the fact that the county fire chief reports to Smith, they could adopt
a policy in the future prohibiting top county executives from coming
back under contract.

"If we really want to stop it, we don't have to wait until the legislature
takes action. As a board we need to discuss this."


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