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HomeMy WebLinkAbout13-Fire CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Q...R.+.G.I [\! II b- (I, , From: Mat Fratus, Deputy Chief Subject: Resolution amending the city's master fee schedule, resolution number #2008-149 establishing a fee for Fire Department removal of hazardous materials spills resulting from traffic collisions. Dept: Fire Date: January 29,2009 MC/C Meeting Date: February 2,2009 Synopsis of Previous Council Action: RECOMMENDATION: 1. Adopt resolution, and 2. Authorize the Director of Finance to amend the FY 2008-2009 Adopted Budget and decrease General Fund revenue associated to Haz Mat cleanup included in account #001-000-4709 by 195,900 (rounded) from $477,500 to a new total of $281,600; establish a new revenue account for this fee with a budget of $79,200; and to incorporate the expenditures in the amount of$47,500 (rounded) associated with this program into the FY 2008-2009 Fire Department Budget by appropriating $47,500 from the General Fund Budget Reserve. C~7 \flr~ Signatu e Contact Person: Mat Fratus, Deputv Chief Phone: (909) 384-5286 Supporting data attached: Staff Report, Cost Analvsis Worksheet, and Resolution Ward: Citv Wide FUNDING REQUIREMENTS: Amount: Source: (Acct No.) (Acct Description) Finance: Council Notes: ~o datJ9- /t:} Agenda Item No.~3" _~Q STAFF REPORT Subiect: Resolution amending the city's master fee schedule, resolution number #2008-149 establishing a fee for Fire Department removal of hazardous materials spills resulting from traffic collisions. Backl!round: The Fire Department is proposing the implementation of a new service fee to recover costs for actions taken at traffic collisions that leave hazardous materials on public right of ways. These hazardous materials include gasoline, diesel, hydraulic fluid, radiator fluid, lubricants, and battery acid. During these incidents, fire personnel contain and remove spilled material from the accident site, and secure the vehicle(s) in preparation for towing so that no further release of harmful materials will occur. Fees would be charged for the response, clean-up, and proper disposal of any leaking materials. This will be accomplished by billing the insurance company of the at-fault driver. The California Vehicle Code Section 17300-17303 establishes that the registered owner of the vehicle(s) is liable for the reasonable cost of responding to traffic incidents and removing hazardous substances that spill onto public right of ways, and authorizes local agencies to present claims for the recovery of clean up costs. However, the proposed program will only bill the insurance carrier of the at-fault vehicle, not each individual owner. The recommended fee is proposed based on the actual cost of providing specific emergency services during incidents involving motor vehicle fluid spills. Therefore, the Fire Department estimates that the cost per incident will be $291.00. Attached for your review is the cost analysis worksheet for this recommended fee (attachment A). The fee for service is for reasonable costs incurred for emergency vehicle response, personnel, supplies, and equipment. The fee will not exceed the actual cost incurred by the Fire Department to providing this service. Other cities that have successfully implemented similar programs include Oakland, CA; Redlands, CA; Upland, CA; Sacramento, CA; Las Vegas, NV; Dallas, TX; Forth Worth, TX; and Northern Arizona Fire District. Financial Impact: The estimated gross amount that would be billed for this fee is $760,200 annually, with projected net annual revenue of $237,450. This figure is based on an average of 3,000 motor vehicle accidents responded to per year, 70% of which will likely result in some form of spill that will be billable. 1 The projected net revenue is based on a single, 4-person engine response, and a minimum of a one hour commitment of Fire Department resources. The need for additional Fire Department resources at the scene or commitments of longer than one hour would be billed accordingly, resulting in higher fees. This fee will not be billed for traffic incidents that do not result in some sort of hazardous materials release. The collection rate for these incidents is estimated at 70%. This rate is based on what other fire departments are currently billing for like service and are collecting. Fire intends to contract the billing for this service to an outside agency that specializes in this area. The typical billing company charges a 25% fee for billing the insurance companies. Although this varies with different billing services, Fire is projecting a similar charge of 25% for the service. In addition, there are costs associated with the maintenance of the program, which includes the purchase of chemical absorbent, hazardous waste containers, waste hauling, and handling equipment. The projected monthly cost of these items is approximately $6,910, or $82,950 annually. Although these program costs are accounted for in the projected net revenue, Fire is requesting that for FY 2009-10, $82,950 be appropriated to account number 001-202- 5111 to cover associated materials costs. In addition, Fire is requesting that approximately $106,000 be appropriated to account number 001-202-5505 (Other Professional Services) to cover the costs of the billing contract. The projected net revenue for the remainder of FY 2008-09 (March 2009-June 2009) is $79,150. To cover the program costs for this period, Fire is requesting that $27,650 be appropriated to account number 001-202-5111 to cover associated materials costs. In addition, Fire is requesting that approximately $19,800 be appropriated to account number 001-202-5505 (Other Professional Services) to cover the costs of the billing contract. The projected revenue of $79,150 for the remainder of FY 2008-09 is approximately $196,000 below the revenue amount that was projected for the 2008-09 budget. These projections were based on a full year's revenue collection from this program. However, the program of this nature requires a great deal of research and preparation, which has delayed full implementation, and thereby reduced the ability to collect a full year's revenue. Fire will be submitting a bid proposal to the Finance Department to solicit bid proposals for the billing and collection of the fee. Once these are reviewed, the Fire Department will come back to the Mayor and Common Council for approval to award a contract to the vendor for billing services. In FY 2009-2010, the City will need to budget for a full year of billing services and collections. In addition the revenue and expenditures accounts will need to reflect the increase in costs and revenue for the City. 2 Recommendation: 1. Adopt resolution, and 2. Authorize the Director of Finance to amend the FY 2008-2009 Adopted Budget and decrease General Fund revenue associated to Haz Mat cleanup included in account #001-000-4709 by 195,900 (rounded) from $477,500 to a new total of $281,600; establish a new revenue account for this fee with a budget of $79,200; and to incorporate the expenditures in the amount of $47,500 (rounded) associated with this program into the FY 2008-2009 Fire Department Budget by appropriating $47,500 from the General Fund Budget Reserve. 3 RESOLUTION NO. 1 2 RESOLUTION OF THE CITY OF SAN BER.NARDINO AMENDING RESOLUTION 3 2008-149 ESTABLISING A FEE FOR FIRE DEPARTMENT REMOVAL OF HAZARDOUS MATERIALS SPILLS RESULTING FROM TRAFFIC COLLISIONS. 4 5 BE IT RESOLVED THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 6 BERNARDINO AS FOLLOWS: 7 SECTION 1. Resolution No. 2008-149, adopted by the Mayor and Common Council 8 on May 5, 2008 establishing a new master fee schedule for city-wide user fees is hereby 9 amended to revise Part IX: Fire Department. No fees established in the previous master fee 10 resolution, Resolution No. 2008-149, are being modified by this resolution. 11 12 SECTION 2. Resolution #2008-149, Part IX: Fire Department is hereby amended to add Section II as follows: 13 14 "Section I I: The following fee is hereby established for response services at a 15 traffic incident that requires removal of hazardous substances that spill onto public right of 16 ways, streets, and highways in the City of San Bernardino jurisdiction. 17 18 A. Hazardous Material Spill incident $291.00 for first hour The fee established by this section covers the initial response and any time up to 19 one hour; any additional response time for the incident will be billed in 15 minute increments at 20 the rate of$43.50 per 15 minutes." 21 22 23 24 25 26 27 28 IIII IIII IIII IIII IIII IIII IIII IIII ::J. - d-O~ 4=t I) RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION 2008-149 ESTABLISING A FEE FOR FIRE DEPARTMENT REMOVAL OF 1 HAZARDOUS MATERIALS SPILLS RESULTING FROM TRAFFIC COLLISIONS. 2 3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 4 and Common Council of the City of San Bernardino at a meeting thereof, 5 held on the day of 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COUNCIL MEMBERS: AYES ESTRADA BAXTER BRINKER VACANT KELLEY JOHNSON MCCAMMACK ,2009, by the following vote, to wit: ABSTAIN ABSENT NAYS Rachel G. Clark, City Clerk City of San Bernardino The foregoing Resolution is hereby approved this Approved as to form: JAME F. PENMAN, City Attorney .~ By: , ~ day of ,2009. Patrick J. Morris, Mayor City of San Bernardino 2 Attachment "A" Vehicle Accident Response Fee Cost Analysis Worksheet Department/Divis! Fund Account User Fee Description Datel Fire 1 001 202 Fluid Clean Up 11/20/20081 Personnel Costs labor Rates Total Direct Dept. or Avg. Total Straight Fringe Labor Div. Total Labor Hours Labor Cost Time Labor Benefits Costs Overhead Costs Committed per Incident Fire Captain $ 36.19 $ 9.04 $ 45.23 $ 4.52 $ 49.75 1 $ 49.75 Fire Engineer $ 31.13 $ 7.77 $ 38.91 $ 3.89 $ 42.80 1 $ 42.80 Fire Paramedic $ 31.48 $ 7.86 $ 39.34 $ 3.93 $ 43.27 1 $ 43.27 Firefighter $ 27.92 $ 6.97 $ 34.89 $ 3.49 $ 38.38 1 $ 38.38 Total Personnel Costs per Unit of Service: $ 174.20 Material & Rental Costs Equip. Quantity Rental Cost Each Required Unit Cost Absorbent Material $20 1 $20.00 $25 per 55 gallon drums mo. $25 0.1 $2.50 5 gallon pail with screw on lid $20 0.1 $2.00 Plastic bag liner $2 1 $2.00 Latex gloves per pair $0.75 4 $3.00 Removal of 55 gallon drum from fire station storage once per month $100 0.1 $10.00 Total cost of materials including rental of 55 gallon barrels: $39.50 Total cost for a level one response: o o o Engine Response Hours 1.00 $ 40.00 Total cost for a level one response: $ 40 Total Service Direct Cost $ 254 City-Wide Gen. & Admin. Rate @ 14.55% $ 37 Total Service Cost/Unit $ 291 Avg. Fee Billed per Incident $ 291