Consolidations

Consolidations of fire districts can create unique challenges when LOSAP programs are involved. To solve these relatively new issues you need experience and expertise; you need Penflex. We’ve taken this new challenge head-on, worked with consolidations in the field and have the knowledge you need to get through the process and make a seamless transition.

Over the last two years Penflex has been utilized in cases involving consolidations or creations of New York State political subdivisions that will provide fire protection services. We have already learned from these cases that with regard to the effects on LOSAPs there is a lot more unknown about consolidations and creations than is known. Except in the cases of only a few consolidation scenarios, Article 11-A is very incomplete with regard to what happens to existing LOSAPs when political subdivisions merge or new political subdivisions are created to provide fire protection services.

Moreover, even in simpler cases, such as the creation of a fire district to replace a single Village Fire Department, Article 11-A must be referenced together with New York State Town and Village Law. In even these seemingly simple cases, there are more unanswered questions (and misconceptions) about what happens to existing LOSAP programs that are not transferred to the newly created political subdivision.

This same observation also applies to an existing fire district that enlarges its borders and has absorbed other fire companies into their fire district. The answer to the question, “What happens to the LOSAP sponsored by the fire district (or fire protection district) which no longer exists?” is complex and not without financial consequences to the dissolved fire district.

Based on our first-hand experience, and having worked with knowledgeable attorneys on these consolidations or mergers, we strongly advise anyone considering consolidations or mergers to contact us for guidance (Ed Holohan will publish an article on this subject this coming winter).

To contact Penflex with questions about Consolidation click here. You can also call Penflex with questions at: 1.800.742.1409.