Mike, This was the same deal I worked under when I was a deputy and chief. I never got overtime or holiday it was all rolled into my salary. It is always interesting when you serve at the pleasure of the mayor or city manager but it was worth it to be able work at that level and do good stuff for the troops. The difference was I knew that was the deal when I took the job.
This is how our organization is set up. The Fire Chief and the Deputy Fire Chief's are all salary and work 40 hours per week. Any "on-call" or response back to a major incident "after hours" are non-compensated. Salary is just that, regardless if you worked 100 hours that week. Some were allowed to bank the extra hours into "comp time" but that has dried up as well.
Now Battallion Chief's are operational positions, "shift commanders" and are allowed OT for any additional time above and beyond their regular shift. They also get paid OT to cover any sick or vacation vacancies.