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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Q...R.+.G.I [\! II b-
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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.
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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:
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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.
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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.
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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.
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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
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resolution, Resolution No. 2008-149, are being modified by this resolution.
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SECTION 2. Resolution #2008-149, Part IX: Fire Department is hereby amended to
add Section II as follows:
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"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.
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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
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one hour; any additional response time for the incident will be billed in 15 minute increments at
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the rate of$43.50 per 15 minutes."
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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.
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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
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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
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By:
,
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day of
,2009.
Patrick J. Morris, Mayor
City of San Bernardino
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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