Given the new economic reality, local government has to look at its entire structure and how it does business.

With regards to fire service, Gilroy should open a competitive bidding process. Let's see what Santa Clara County Fire, Gilroy Fire and even the California Department of Forestry and Fire Protection have to offer - what service standards and for what price. Morgan Hill has been contracting with county fire for quite some time, and the reports are that all is well.

Fire protection isn't the only city budget item in need of scrutiny, but it is a huge, ever-increasing expense. With calls for service being 90 percent medical and sprinkler systems being required in virtually every building, it tops the list.

Also perplexing is the current practice of sending fire trucks and ambulance paramedics to medical calls. The City Council should review that in terms of dollars and common sense. Why not contract for an additional, far-less-expensive ambulance to be stationed in Gilroy and cut out the expense and training required for Gilroy firefighters?

The city is in a serious bind, and there isn't going to be a bailout anytime soon. The unions remain steadfast in their unwillingness to offer serious, good faith concessions. So the Council and City Administrator Tom Haglund are left with few alternatives.

Severing ties with California Public Employees' Retirement System should be scrupulously looked at as should an increased emphasis on volunteerism.

How can the city facilitate, for example, a volunteer fire department force to aid in times of dire need?

Though not completely parallel, the volunteer staffing of the city museum is a good example of what's going to need to happen.

It's a new world that calls for brave action.