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For years, the Atherton City Council has been complaining about the disparity between the fixed percentage of tax revenues the town’s property owners hand over to the Menlo Park Fire Protection District in return for emergency response services and how much it actually costs the district to provide those services to the town. A report prepared by a consultant hired by the town found that the fire district receives millions of dollars more annually than the town keeps to spend on government operations.

At a joint meeting of the council and Menlo fire board in Atherton on Jan. 22, officials agreed to form a subcommittee to talk about ways to resolve the issue.

The subcommittee, which will consist of two people from each agency, will discuss three options before the town: continue with the status quo, detach from the fire district and seek an alternative for emergency services, or find a mutually agreeable way to increase services to the town.

Serving on the subcommittee and representing Atherton will be Mayor Bill Widmer and Councilman Cary Weist. Fire board President Virginia Chang Kiraly and board member Jim McLaughlin, an Atherton resident, will represent the fire district.

It’s not yet clear how often the subcommittee will meet or what its timeline will be, Atherton Town Manager George Rodericks said, adding that he doubts the meetings will be open to the public.

The consultant’s report showed that Atherton’s property owners provided the fire district with $11.8 million in property tax revenues in fiscal year 2015-16; the town received $7.5 million for its general fund. The consultant derived the district’s costs of emergency services provided within the town by extrapolation, Rodericks told The Almanac.

Atherton receives 10.6 percent of the revenue generated by its property owners’ taxes for government operations; the fire district receives 15.7 percent, slightly more than the 15.6 percent paid to the high school district, and a bit less than the 16.6 percent paid to the elementary school district.

Atherton is home to 8 percent of the district’s residents – the district also serves Menlo Park, East Palo Alto and nearby unincorporated communities – and provides 31.7 percent of the district’s revenues, according to the consultant’s report.

At the joint meeting, Kiraly also introduced discussions on how emergency-response routes could be impacted when Caltrain electrifies its service, and the possibility of a secondary emergency alert system.

The fire district will continue testing a movable long-range siren also capable of transmitting spoken messages in more than one language, Fire Chief Harold Schapelhouman told the group. The systems can be encrypted to foil hackers, and the speakers have a range of 1 square mile, Schapelhouman said.

Weist noted that modern homes are well insulated, making them harder to penetrate with sound. Councilman Rick DeGolia commented that the device, when heard from Las Lomitas Elementary School on Alameda de las Pulgas during an early test on Walsh Road, sounded like a truck horn.

The sirens, Schapelhouman said, would be a secondary alert system to be used in conjunction with the primary system, currently SMC Alert messages sent to subscribers by email, phone and text message by the San Mateo County Office of Emergency Services.

Fifty percent of East Palo Alto is a flood zone and officials there are particularly interested in the siren system, Schapelhouman said.

Electrified trains

Switching Caltrain away from diesel power to electricity will mean more trains running at higher speeds and more quietly. To avoid conflicts with vehicles at grade crossings – there are two in Atherton, at Fair Oaks and Watkins avenues – those crossings would need to be raised above the tracks to create underpasses or lowered into tunnels.

Raising or lowering the tracks – known as grade separation – costs millions of dollars, and there is opposition in Atherton to elevating the tracks. Councilwoman Elizabeth Lewis said in 2017 that raising the tracks “is going to ruin our neighborhoods.”

Lewis has been studying the issue for the council. “We need to somehow figure out how to finance the real solution” of dropping the tracks into a trench or tunnel, she said in 2017. “I think our communities could come together and figure out a way” to finance such a project, she said.

Fire board member Chuck Bernstein suggested at the Jan. 22 meeting that a tunnel is the chosen method in communities that care about their land.

Councilman Mike Lempres asked the fire chief whether firefighters could force trains to stop to allow emergency vehicles to cross the tracks at grade level. That would be done only if someone has been injured or a fire hose is lying across the tracks, Schapelhouman said. Otherwise, fire engines wait for the crossing gates to go up just like other vehicles, he said.

Working together?

No one on the Atherton council is unhappy with the fire district’s performance when emergencies occur in town. “The service we get … is top class. No question about the service,” Mayor Bill Widmer said. In thinking about the revenues-for-services issue, “there was discussion on what steps could we take,” he said. “One of the steps was detachment, yes … (but) we said, ‘We’re not interested in building our own fire district.'”

“We do think that there’s a disconnect in the amount of money that each jurisdiction is paying based on the amount of service they’re receiving,” he said. “That’s what we wanted to discuss.”

“Atherton residents are committing more revenue into the system than they are taking back for the cost of their services,” Lempres said. “That (difference) is fairly substantial, however you look at it.”

“Our preference is to stay in the district,” he added. “Our preference is to work cooperatively to get more resources in Atherton. We don’t know if that’s going to work or not. Thus far … there have been mixed results. We don’t know whether we should be considering withdrawing or not.”

“It would have been nice to have a small (fire) engine in the civic center to respond locally to things,” he said. “That’s an example where the district could have put a little more resources into Atherton. We would have appreciated it greatly, and it changes that whole equation” of the allocation of property taxes.

While no one from the fire district disputed the disparities presented in the report, Bernstein did argue with the methods the consultant used, including the calculation of service calls to Atherton based on where the calls originated.

Atherton residents cannot shop in town – it has no retail – or visit a doctor in town, so they must travel out of town for such matters, Bernstein said. “They may be having heart attacks and traffic accidents elsewhere,” he said.

“The fact is that Atherton residents have no reason to go to Atherton other than to go home,” he said. Likewise, it’s not clear whether emergency calls within town are always for residents. “We don’t know exactly how much service the residents got,” he said.

Bernstein also noted that the study implied that if Atherton were to detach itself from the fire district, there’s an assumption that the fire district would still cover a third of the town where emergency response times from two Atherton stations would not be acceptable. “That isn’t fair either,” he said.

The fire district provides services to communities outside the district without being reimbursed, such as Stanford Weekend Acres and parts of unincorporated Redwood City, Bernstein said. “We shouldn’t be doing that,” he said, referring to the practice in general.

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15 Comments

  1. With a new board in place and the one board member who exacerbated the issue with Atherton so badly gone, one can hope that this can be resolved and the new board will work with the town to rectify the imbalance of payments to the services they are receiving.

  2. The Fire board should not fall for this trick. As the Lempres comments allude to, the council wants to try to con the fire board into paying for a chunk of the Civic Center that Atherton cannot afford. Since the threat of devtachment is not credible – Atherton has no realistic alternative – it would be silly to fall for this ploy.

  3. Technically the Town cannot “detach” from the Fire District since the “Town is not part of its governance. The District encompasses the boundaries of Menlo Park, Atherton, East Palo Alto, and unincorporated portions of the County.

    The Town can no more detach than can either of the other two cities. Menlo Fire District is exactly the same as Woodside Fire and its relationship to the areas of Woodside, Portola Valley and parts of unincorporated county.

    This is not a new ploy by the Town; they play this record every so often. I agree with “Con”….don’t fall for this ploy.

  4. Fire board should not meet or negotiate until the Atherton Council agrees to drop the crazy idea of detachment from the fire district. After that is decided, then everyone on both sides can work as a team.

    I agree with Bob and The Con On:

    Don’t trust the Atherton Council…..they need to get their own house in order…..build that Civic Center and maybe that police department should go to the county sheriff. Police protection must be a very large part of their overall budget.

  5. “paying for a chunk of the Civic Center that Atherton cannot afford”

    Oh, they can certainly afford it. They refuse to pay for it. Two different things.

  6. Hopefully the Town Council will provide the subcommittee identical studies that address the following far more important “financial equity issues”:

    1 – the taxes paid by Atherton residents to the Federal government vs the expenditures by the Federal government within the Town boundaries,

    2 – the taxes paid by Atherton residents to the State government vs the expenditures by the State government within the Town boundaries,

    3 – the taxes paid by Atherton residents to the County government vs the expenditures by the County government within the Town boundaries and, in particular, the County expenditures for public safety within the Town boundaries given Atherton’s own expenditures for its excellent Police Department,

    4 – the taxes paid by Atherton residents to the school districts vs the expenditures by the school districts within the Town boundaries particularly in light of the low percentage of Atherton students who actually attend those school districts.

    In each of the above cases I think the facts will show that Atherton residents pay far more in taxes than they receive in services.

  7. To determine the extent of the financial inequality with those other entities perhaps additional studies should be made, versus singularly focusing on the Fire District. Add to the list the taxes paid vs. services received from the Hospital District, the Mosquito District and a host of others. As Hilary said “it takes a Village”. Also, as they say,Together we stand, separate we fall.

  8. Peter,

    The council has a responsibility for the tax payers to get a good value for their tax dollars. If they are paying for a lot more than they are getting is that fair to the tax payers? It is not and it is the responsibility of the elected officials to help correct that. Maybe they should hold a vote and see if the residents of Atherton are OK with paying more for the service than they get from it. After all not all of the money is going to provide services, look at how much property was purchased, and is not currently needed, under your tenure.

    The fire district is not Robin Hood.

  9. Brian – You clearly do not understand the roles and responsibilities of the Town Council. They were elected, or as is now the case all are appointed, to oversee the functioning of the Town of Atherton. Nowhere in the Town Charter is the Council given the responsibility to oversee other units of government.

    We have elected officials in all the other units of government, Federal, State, County, School dIstricts and Special Districts, that were elected to oversee those functions. In each of these case the voters of Atherton selected their representatives to ensure that their tax dollars are being properly spent.

    Sadly the Town Council has already squandered over $100k of the taxpayers’ money on this misguided effort only to be told that they really don’t have any way to get any of the Fire District’s money unless the Fire Board agrees to give it to them. And in that case all the District constituents must first vote to approve such a transfer. Why exactly would Menlo Park and East Palo Alto voters support giving money to the wealthy Town of Atherton when doing so would mean a reduction in their level of fire services? I also doubt that more than a handful of Atherton residents, who are much more aware of the moral outrage of such an action than the current appointed Council, would support such a transfer.

  10. There is a huge error in this reporting which states that “property tax revenues that the town hands over to the Menlo Park Fire Protection District in return for emergency response services and how much it actually costs the district to provide those services.”

    In fact the Town pays zero for fire services and property tax distribution is done by the County not the Town.

  11. Peter is correct: Atherton property owners, not the town, pay the taxes whose revenues are distributed to the fire district and other public agencies. The county distributes those funds based on a formula determined by the state.

  12. When the Almanac and its reporters are so poorly informed about the structure of the property tax system it is no wonder that the Town Council believes “the disparity between the fixed percentage of property tax revenues that the town hands over to the Menlo Park Fire Protection District in return for emergency response services and how much it actually costs the district to provide those services.”

    Even after this error was brought to the attention of the Editor the sub-headline and story remain unchanged.

    The only thing worse than fake news is news reporting that is wrong and knowingly wrong.

  13. It turns out that the Town of Atherton has NEVER ASKED the Federal or the State or the County or the school districts how much they have collected in taxes from Atherton residents NOR HAVE THEY EVER ASKED the Federal or the State or the County or the school districts how much those entities spend within the Town’s boundaries.

    By my estimate each of those government entities receives far more in taxes from Atherton residents than they spend within the Town boundaries and the net difference for each is far greater than that between the taxes paid to the Fire District and the Matrix study’s estimate of the cost of Fire District services provided to Atherton residents.

    ***************

    On Jan 31, 2019, at 2:47 PM, Theresa DellaSanta <tdellasanta@ci.atherton.ca.us> wrote:
    Subject: Request for public information re Federal government

    Hi Peter,

    This message is in response to your Public Records Act request dated January 25, 2019.

    After a reasonable and diligent search the Town is unable to locate any documents responsive to this request because no such records exist.

    Please feel free to contact me if you have any questions.

    Theresa N. DellaSanta
    Deputy City Manager/City Clerk
    650-752-0529

  14. In addition to Peter’s points regarding the structure of property taxes, I would add that this article presents the decision to detach as a straightforward process that the town could unilaterally pursue. This really misrepresents the process that the town would have to navigate in order to accomplish detachment.

    Contrary to what somebody wrote above, the town most certainly could initiate an application to the San Mateo County Local Agency Formation Commission (LAFCo) requesting detachment as provided in state gov code 56650 with a town resolution. But prior to LAFCo reviewing the application, they LAFCo executive officer would have to provide a certificate of filing that all of the submittal requirements have been satisfied. Amongst other litany requirements detailing how the town would provide its own service, it must have complete the negotiation over how much of the property tax revenue would actually revert to the town as provided in Revenue and Taxation Code chapter 99.

    Specifically, from Tax&Revenue Code 99:
    (5) In the event that a jurisdictional change would affect the service area or service responsibility of one or more special districts, the board of supervisors of the county or counties in which the districts are located shall, on behalf of the district or districts, negotiate any exchange of property tax revenues. Prior to entering into negotiation on behalf of a district for the exchange of property tax revenue, the board shall consult with the affected district. The consultation shall include, at a minimum, notification to each member and executive officer of the district board of the pending consultation and provision of adequate opportunity to comment on the negotiation.
    (6) Notwithstanding any other provision of law, the executive officer shall not issue a certificate of filing pursuant to Section 56658 of the Government Code until the local agencies included in the property tax revenue exchange negotiation, within the negotiation period, present resolutions adopted by each such county and city whereby each county and city agrees to accept the exchange of property tax revenues.

    It is most definitely not automatically presumed that the city would end up with whatever request it was making for a share of the property tax revenue. But rather as stated it would be conducted as a negotiation with the county acting as the fire district’s representative after full consulation with the fire district about the impact on its services. The SM county supervisors would have to sign off on the results of that negotiation acting as representatives for the fire district.

    Assuming that some kind of agreement was reached between the town and the county, perhaps notwithstanding the fire district board’s objections, the application would then ultimately be adjudicated by the 7 member LAFCo board (currently comprised of county reps Don Horsley & Warren Slocum, special district reps Joe Sheridan (sheriff dept) & Joshua Cosgrove (north coast water district), city reps Mike O’Neill (Pacifica) & Rich Garbarino (S. San Francisco), public rep Ann Draper).

    The Contra Costa LAFCo board nicely summarized the decision making process:
    • Any application to detach territory must include a plan to provide services (§56653). An evaluation of a local agency’s plan of service is necessary for consideration of any change of organization or reorganization (§56375) that expands or diminishes a service provider’s responsibilities. The intent of service plans is to ensure that the capacity, cost and adequacy of services within the district or city are not adversely impacted by the proposed LAFCO action. In other words, LAFCO must consider whether the agency proposing to assume the services can feasibly provide the services. Further, LAFCO must consider the effects of the proposed detachment on both the agency gaining territory/service and the agency losing territory/service. The Commission must consider 15 different factors when reviewing a change of organization of reorganization (§56668); no one factor is determinative.

    Although that LAFCo board points out that no one factor is determinitive, there are at least three especially relevant factors in that decision criteria list set out in that govt code:
    (c) The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on the local governmental structure of the county.
    (j) The comments of any affected local agency or other public agency.
    (p) The extent to which the proposal will promote environmental justice.  As used in this subdivision, “environmental justice” means the fair treatment of people of all races, cultures, and incomes with respect to the location of public facilities and the provision of public services.

    So the LAFCo decision is not capricious and is required to be grounded in consideration of how that decision is going to affect everybody involved. Most particularly, I see item (p) being a stumbling block for the town. Lives are on the line, and presumably the fire district’s point is going to be that giving up the property tax attributed to the town’s boundary’s is going to result in unacceptable service delivery times to those most vulnerable in less affluent areas.

    And then there are the political realities. Atherton may think Don Horsely would support the town’s position because Atherton happens to be in his district, but allowing Atherton to simply detach would set a terrible precedent for the entirety of his district. Does he really want to have Woodside considering withdrawing from the Woodside Fire protection district because of economic considerations?

    Anyhoo, I could say a lot more, but my point is that imho detachment with economic benefit to the town is rather far fetched. And it’s most certainly not a unilateral decision that the town can simply “declare”.

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