HomeMy WebLinkAbout2010/05/04 Item 16
CITY COUNCIL
AGENDA STATEMENT
:s'Y~ CITY OF
-- CHULA VISTA
Item --1k-
MAY 4,2010
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONTRACT WITH FIRE
RECOVERY USA LLC TO PROVIDE EMERGENCY
SERVICES COST RECOVERY SERVICES
SUBMITTED BY:
REVIEWED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING CHAPTER XV FIRE
DEPARTMENT FEES OF THE CITY OF CHULA VISTA
MASTER FEE SRH.E S HEDULE.
FIRE CHIEF~~
CITY MANAGERf
YES
NOX
4/5THS VOTE:
SUMMARY
In order to respond to the increased costs of responding to vehicle accidents where hazardous
mitigation is required, the Fire Department desires to implement a new program to recover costs
associated with these events. Fire Recovery USA LLC, has been selected to provide billing and
collection services for the City of Chula Vista.
ENVIRONMENTAL REVIEW
This proposed activity has been reviewed for compliance with the California Environmental
Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defined
under Section 15378 of the State CEQA Guidelines because it will not result in a physical
change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA
Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
RECOMMENDA nON
Council adopt the resolutions.
BOARDS/COMMISSION RECOMMENDA nON
Not Applicable.
DISCUSSION
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The Chula Vista Fire Department responds to approximately 420 traffic accidents each year in
which hazardous liquids are released from the vehicles involved in the accident (including
vehicle fires). Because of much more stringent environmental protection requirements, the
department is seeking to recover costs associated with this increased level of service from the
driver who was at fault for the accident. Most, if not all automobile insurance companies have
provisions in their policies stipulating payment to fire departments for emergency response and
service provided at vehicle accidents. Fire Departments throughout the country are starting to bill
for these services in order to contain costs of service and maintain response times and quality of
service.
In accordance with the California Health and Safety Code, Section 13000 et seq., an individual
who acts negligently or in violation of the law and thereby requires the jurisdiction to provide an
emergency response to a danger posed by a fire or hazardous substance shall be liable for
reimbursement to the agency for the cost incurred. For purposes of this proposed program, this
includes vehicle fires and/or vehicle accidents where hazardous fluids such as oil, gasoline,
antifreeze, brake fluid or any other hazardous liquids originating from the vehicle including non-
automotive fluids transported by the vehicle. (See Attachment "A" for specific legal authority)
Additionally, California Vehicle Code, Section 17300 et seq., allows fire departments to recover
costs incurred responding to motor vehicle accidents; including response equipment and staffing
to secure, cleanup and/or dispose of any hazardous waste. (See Attachment "A" for specific legal
authority)
The fees associated with this program will vary depending upon the severity and nature of the
accident/fire. Attachment "B" of this staff report outlines the fees associated with the various
responses needed to mitigate the accident/fire. These fees are based upon the costs involved in
responding to these incidents. These fees include the costs for responding fire personnel,
equipment usage (fuel, wear and tear, etc.), protective equipment replacement, containment and
clean up, and other costs associated with response to the incident.
Because of the balance between seeking full cost recovery and cost containment to the insurance
companies, the Fire Department recommends a lower fee than what the actual costs are. For
example, the cost of an engine company (staffed with a fire fighter, fire engineer and fire
captain) responding to a basic accident with fluid spills exceeds $600 per call (depending upon
the nature of the response). The national average for this type ofresponse is approximately $435.
Experience with cost reimbursement from insurance companies throughout the United States has
shown that this fee is commonly accepted as a reasonable fee by the insurance companies.
Therefore, in order to maximize the total number of collections, the Fire Department
recommends utilizing the fee structure outlined in Attachment "B".
Because this is a new program, and would require the hiring of specialized staff to handle the
billing and collection of these fees, the Fire Department recommends contracting with Fire
Recovery USA, LLC, to handle this service. Fire Recovery USA, LLC is a nationally recognized
company specializing in fire response cost recovery. They offer the department the most stream-
lined collection process, and have developed a professional relationship with the insurance
companies, ensuring maximum cost recovery. This service would be significantly more cost
effective to contract out than hire in-house staff to accomplish. It is estimated that the cost
savings to the City would exceed $100,000 per year based upon two full-time employees
engaged in administering this program. All contract costs for this program are taken directly only
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from the fees recovered by Fire Recovery USA, LLC. If a fee is not able to be collected, there is
no cost to the City.
Approval of this program will also require an update to the City of Chula Vista Master Fee
Schedule to delineate the fees charged. Attachment "C" details the updates required.
Attachment "D" lists the fire agencies/Cities throughout California and the rest of the United
States who contract with Fire Recovery USA, LLC for cost recovery services.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site
specific and consequently the 500 foot rule found in California Code of Regulations section
I 8704.2(a)(1) is not applicable to this decision.
CURRENT YEAR FISCAL IMPACT
Approval of this resolution will result in entering into a contract with Fire Recovery USA, LLC
for fee collection and processing. No appropriations are necessary since all fees to Fire Recovery
USA, LLC are taken at point of collection from the gross amount collected, with the net balance
being remitted to the City.
Since this is a new program, it is difficult to predict the exact amount of revenue that will be
recovered, but a conservative estimate is $100,000 per year. This amount has already been
included in the Fiscal Year 2011 Fire Department budget.
The value of this contract is approximately $17,000 each year (contract fees deducted rrom
Gross Fees Collected). This contract will be for two years, with two optional one year extensions
should the City choose to extend the contract. The fees charged against the collections are as
follows:
The collection fee starts at 17% of gross receipts and after six months, if Fire
Recovery USA, LLC collection rate is above 65%, then the fee goes to 20%. If the
collection rate ever falls below 65%, then Fire Recovery USA, LLC will lower the
fee back to 17%. It will never go above 20% and is evaluated every six months.
ONGOING FISCAL IMPACT
This contract will result in a net positive impact each fiscal year depending upon the number of
accidents which are eligible for collection, and the recovery rate achieved by the contractor.
ATTACHMENTS
Attachment A - Applicable California Code Sections
Attachment B - Fire Recovery USA, LLC Recommended Fees
Attachment C - Master Fee Schedule Amendment
Attachment D - List of Agencies Who Contract with Fire Recovery USA, LLC
Attachment E - Contract for Service with Fire Recovery USA, LLC
Prepared by: Edward Chew, Administrative Services Manager, Police/Fire Department
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(This space intentionally blank)
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ATTACHMENT "A"
APPLICABLE CALIFORNIA CODE SECTIONS
California Health and Safetv Code
13009.6. (a) (1) Those expenses of an emergency response necessary to protect the public from
a real and imminent threat to health and safety by a public agency to confine, prevent, or mitigate
the release, escape, or burning of hazardous substances described in
subdivision iG) are a charge against any person whose negligence causes the incident, if either of
the following occurs:
(A) Evacuation beyond the property where the incident originates
is necessary to prevent loss oflife or injury.
(B) The incident results in the spread of hazardous substances or
fire posing a real and imminent threat to public health and safety
beyond the property of origin.
(2) Expenses reimbursable to a public agency under this section
are a debt of the person liable therefor, and shall be cDhereforele in
the same manner as in the case of an obligation under contract,
express or implied.
(3) The charge created against the person by this subdivision is
also a charge against the person's employer if the negli' ence causing
the incident occurs in the course of the person's employment.
(4) The 'ublic agencies participating in an emergency response
meeting the requirements of paragraph (1) of this subdivision may
designate one or more of the participating agencies to bring an
action to recover the expenses incurred by all of the designating
agencies which are reimbursable under this section.
(5) An action to recover expenses under this section may be joined
with any civil action for penalties, fines, injunctive, or other
relief brought against the responsible person or employer, or both,
arising out of the same incident.
(b) There shall be deducted from any amount otherwise recoverable
under this section, the amount of any reimbursement for eligible
costs received by a public agency pursuant to Chapter 6.8 (commencing
with Section 25300) of Division 20. The amount so reimbursed may be
recovered as provided in Section 25360.
(c) As used in this section, "hazardous substance" me"ns any
hazardous su"stance listed in Section 25316 of this code or in
Section 6382 of the Labor Code.
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ATTACHMENT "A" (Continued)
(d) As used in this section, "mitigate" includes acti"ns by a
"ublic agency to monitor or model ambient levels of airborne
hazardous substances for the purpose of determining or assisting in
the determination of whether or not to evacuate areas around the
property where the incident originates, or to determine or assist in
the determination of which areas around the property where the
incident originates should be evacuated.
California Vehicle Code
17300. (a) A person who willfully or negligently damages a street or highway, or its
appurtenances, including, but not limited to, guardrails, signs, traffic signals, snow poles, and
similar facilities, is liable for the reasonable cost of repair or replacement thereof.
(b) A person who willfully damages or destroys a memorial sign placed by the Department of
Transportation, including, but not limited to, a sign memorializing a victim under Section 101.10
of the Streets and Highways Code, is liable for that damage or destruction for the highest of the
following amounts:
(I) One thousand five hundred dollars ($1,500).
(2) The actual repair cost or replacement cost, whichever is applicable.
(c) A person who willfully or negligently causes or permits the contents of a vehicle to be
deposited upon a street or highway, or its appurtenances, is liable for the reasonable costs of
removing those contents from the street or highway or its appurtenances1
(d) The liability stated in this section also applies to an owner of a vehicle operated with the
owner's permission, as provided in Article 2 (commencing with Section 17150), and includes
liability for the reasonable cost of necessary safety precautions, including, but not limited to,
warning traffic, the removal of debris resulting from accidents, the removal of any materials, or
providing detourl.
(e) The Department of Transportation and local authorities, with respect to highways under their
respective jurisdictions, may present claims for liability under this section, bring actions for
recovery thereon, and settle and compromise, in their discretion, claims arising under this
section.
(f) If the Department of Transportation or a local authority provides services on a highway
outside its jurisdiction, at the request of the department or the local authority that has jurisdiction
over that highway, the department or the local authority may present a claim for liability for
rendering this service under this section, bring actions for recovery thereon, and, in its discretion,
settle and compromise the claim.
I Emphasis added
, Emphasis added
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ATTACHMENT "B"
FIRE RECOVERY USA RECOMMENDED FEE SCHEDULE
MOTOR VEHICLE ACCIDENTS
Levell - $435.00
Scene Safety and Investigation (including traffic control, patient contact, hazard control). This
will be the most common billing level. This occurs almost every time the Fire Department
responds to an accident.
Level 2 - $495.00
Includes Level I services as well as clean-up and material used (Sorbents used, hazardous clean-
up and disposal).
Level 3 - Car Fire - $605.00
Includes scene safety, fire suppression, breathing air, rescue tools, hand tools, hose, tip use,
foam, structure protection, and clean-up of gasoline or other vehicle fluids that are spilled as a
result of the accident/fire.
Level 4 - $1.800.00
Includes Level I and 2 servIces as well as extrication (heavy rescue tools, ropes, airbags,
cribbing, etc.).
Level 5 - $2.1 00.00
Includes levels I, 2 and 3 services as well as air care (multi- engine company response, mutual
aid, helicopter, etc).
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ATTACHMENT "c"
MASTER FEE SCHEDULE AMMENDMENT
CHAPTER XV FIRE DEPARTMENT FEES
A. FIRE CODE INSPECTIONS - OPERATIONAL PERMITS
The City of Chula Vista has implemented a pennit fee schedule. The fees as set forth in
"Attachment 2-A, Sections 2901.00 and 2901.01" are based on an inspection/review of
the activity to be conducted. Issuance of a pennit is contingent upon compliance.
Multiple pennits will be required if applicable (this fee schedule shall adjust for annual
San Diego Consumers Price Index for All Urban Consumer changes, not to exceed full
cost recovery).
Activitv Fee Frenuencv
Place of Assembly $105 Annually/Each Occurrence
Waste Handling $105 Annually
Outdoor Carnival or Fairs $165 Each Occurrence
Combustible Fiber Storage $105 Annually
Combustible Misc. Storage $165 Annually
Compressed Gases $121 Annually/Each Occurrence
Crvogens $116 Annually
Dry Cleaning Operations $105 Annually
Combustible Dust Producing Operations $105 Annually
Explosives or Blasting Agents $105 Annually/Each Occurrence
Fireworks $143 Annually/Each Occurrence/Each
Barge
Repair Garages for Motor Fuel Dispensing $116 Annually
Facilities
Hazardous Materials Use & Storage $198 Annually
High-Piled Combustible Storage $165 Annually
Liquefied Petroleum Gases $105 Annually/Each Occurrence
Industrial Ovens $105 Annually
Spraying or Dipping( Flammable Finishes $165 Annually
Tents, Canopies & Temporary Membrane $105 Each Occurrence/ Per Tent/Canopy
Structures
Hot Work Operations: Including Cutting and $105 Annually
Welding
Storage Tanks (Flammable and/or $165 Each Occurrence (Per Tank)
Combustible Liquids)-INST ALLA nON
Storage Tanks (Flammable and/or $165 Each Occurrence (Per Tank)
Combustible Liquids)-REMOV AL
Storage of Flammable or Combustible Liquids $105 Annually
Christmas Tree Lots $83 Each Occurrence
General Use Pennit $105 Annually
General Use Permit Comments: Shall be required for any activity or operation not specifically
described below which, in the judgment of the Fire Chief or Fire Marshal is likely to produce
conditions hazardous to life or property, and shall be accompanied by fees as set forth herein.
General Use Certificate $105 Each Occurrence
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General Use Certificate Comments: Shall be required for each new business within the city of
Chula Vista that is applying for a business license (with a physical address) or for a single
inspection of any business that does not current! have a fee listing herein.
Magnesium $105 Annually
Fumigation or Thermal Insecticide Fogging $198 Annuallv
Lumber Yards and Woodworking Plants $165 Annuallv
Mall/Open and Covered $198 Annuallv
MaWOpen and Covered Comments: To operate a structure(s) as an open or covered mall.
Battery Systems $105 I Annuallv
Battery System Comments: To install or operate stationary lead-acid battery systems having a
liquid capacity of more than 100 gallons.
Residential Licensed Care Pre-inspections (25 $50 Each Occurrence
or less residents)
Residential Licensed Care Pre-inspections (26 $100 Each Occurrence
or more residents)
Final Clearance Inspections: Care Facilities $50 Each Occurrence
(25 or less residents)
Final Clearance Inspections: Care Facilities $100 Each Occurrence
(26 or more residents)
Aerosol Products $121 Annuallv
Amusement Buildings $105 Each Occurrence
Aviation Facilities $198 Annually
Cellulose Nitrate Film $105 Annuallv
Exhibits and Trade Shows $198 Each Occurrence
Fruit and Crop Ripening $143 Annuallv
HPM (Hazardous Production Materials) $198 Annually
Facilities
Liquid or Gas Fuelled Vehicles / Equipment in $105 Annually/Each Occurrence
Assembly Buildings
Open Burning $105 Each Occurrence
Organic Coatings $105 Annually
Pyroxylin Plastics $121 Annually
Remgeration Equipment $105 Annually
Heliport $105 Annually
Storage of Scrap Tires and Tire Byproducts $116 Annually
Tire Rebuilding Plants $198 Annually
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Activi Fee
Federal, State, or $105
other Government
Agencies
$116
I - 1 Occupancies - Residential care facilities,
residential care facilities for the elderly, etc,
High-rise
Building
$165
$143
Annually
I - 2 Occu ancies - hos itals.
See adopted California Fire Code for specific
definition.
Plus
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Inspections $ II per
floor
Re- Inspection $105 Per Occurrence Re-inspection fee would be assessed upon the
Fees second re-inspection when required and/or;
Re-inspection as a result of a requested
inspection not cancelled two hours or more
prior to established aDDointment time.
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*Annually "" renewable fire code inspection pennits.
*Each Occurrence ~ temporaryfire code inspection pennits.
*See adopted California Fire Code for specific definitions/applicability.
[Resolution 2007-224. effective 08/14/2007}
B. FIRE SAFETY ENGINEERING - CONSTRUCTION PERMITS
Fees for the plan review, plan re-submittal, consultation, inspection, and re-inspection of
fire and life safety systems shall be collected in accordance with the fee schedule as set
forth in "Attachment 2-B, Sections 3100.00 (this fee schedule shall adjust for annual San
Diego Consumer Price Index for All Urbam Consumers changes, not to exceed full cost
recovery).
Fire Safety Engineering Activities
# Fire Sprinkler System - NFPA 13 [per system/riser - first
floor/level] Fee
1.1 1 - 20 Sprinklers [per system/riser 1 $622.00
1.2 21 - 100 Sprinklers r per system/riser 1 $1,015.00
1.3 101 - 200 SDrinklers rper system/riserl $1,343.00
1.4 201 - 350 Sprinklers rper system/riserl $1,736.00
1.5 351 - 600 Sprinklers rper system/riserl $2,260.00
1.6 Per additional group of 100 sprinklers [or fraction thereof - per $131.00
system/riser 1
# Fire Sprinkler System - NFPA 13 [each additional typical
floor/level] Fee
1.7 1-20 Sprinklers [typical floor on same system/riser]
$164.00
1.8 21 - 100 Sprinklers [typical floor on same system/riser]
$328.00
1.9 101 - 200 Sprinklers [typical floor on same system/riser]
$393.00
1.10 201 - 350 Sprinklers [typical floor on same system/riser]
$524.00
1.11 351 - 600 Sprinklers [typical floor on same system/riser]
$721.00
1.12 Per additional group of 100 sprinklers [or fraction thereof -
typical floor on same system/riser] $131.00
# Additional Fire Sprinkler System Review/Inspection Items
NFP A 13 Fee
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1.13 Additional hydraulically calculated areas [per required calc,
base plan review, includes I calc] $131.00
1.14 Pre-action system
$262.00
1.15 Antifreeze system
$262.00
1.16 Underground work per 100 linear feet [or fraction thereof]
$131.00
# Fire Sprinkler Tenant Improvement [per line item]
Fee
2.1 Sprinkler Tenant Improvement - [base fee per suite - includes
first 50 sprinklers] $360.00
2.2 Per additional group of 50 sprinklers [or fraction thereof]
$66.00
2.3 Tenant Improvement with a hydraulic calculation [first calced
area] $262.00
2.4 Additional hydraulically calculated areas [per required calc]
$131.00
2.5 Pre-action system
$262.00
2.6 Antifreeze system
$262.00
2.7 In-rack system w/calculations
$393.00
# Residential Fire Sprinkler Systems - NFPA 13R [per
system/riser] Fee
3.1 I - 50 Sprinklers [per system/riser]
$557.00
3.2 51 - ISO Sprinklers [per system/riser]
$688.00
3.3 151 - 250 Sprinklers [per system/riser]
$884.00
3.4 251-350 Sprinklers [per system/riser]
$1,081.00
3.5 Per additional group of 100 sprinklers [or ftaction thereof - per
system/riser] $98.00
# Residential Fire Sprinkler Systems - NFPA 13R [each add.
Typical system layout] Fee
3.6 1- 50 Sprinklers [each add. typical system floorplanllayout]
$360.00
3.7 51 - 150 Sprinklers [each add. typical system floorplanllayout]
$426.00
3.8 151 - 250 Sprinklers [each add. typi cal system
floorplanllayout] $524. 00
3.9 251-350 Sprinklers [each add. typical system floorplanllayout]
$622.00
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3.10 Per additional group of 100 sprinklers [or fraction thereof]
$95.00
# Additional Residential Fire Sprinkler Sys.
Review/Inspection Items - NFPA 13R Fee
3.11 Additional hydraulically calculated areas [per required calc,
base plan review, includes I calc] $131.00
3.12 Underground work per 100 linear feet [or fraction thereof]
$131.00
# Dwelling Fire Sprinkler Systems - NFP A 13D [per line
item] Fee
4.1 I - 50 Sprinklers [per system/riser]
$459.00
4.2 Per additional group of 50 sprinklers [or fraction thereof - per
system/riser] $66.00
4.3 Additional hydraulically calculated areas [per required calc,
base plan review, includes 1 calc] $131.00
4.4 Residential Fire Pump
$262.00
4.5 Per additional NFPA 13D system with the same exact structural
footprint/layout [4.1 & 4.2] Varies {50%
of Model
Unit]
# Fire Pumps - NFP A 20 [per line item]
Fee
5.1 Fire Pumps - NFP A 20 - [base fee per fire pump with a tank]
$2,162.00
5.2 Fire Pumps - NFP A 20 - [base fee per fire pump without a
tank] $1,767.00
5.3 Pressure Maintenance Pumps [i.e. stand alone, retrofit]
$917.00
# Fire Service Utilities [per line item]
Fee
6.1 Fire Service Utilities [base fee, inspection Only]
$917.00
6.2 Per additional 100 linear feet of pipe [or fraction thereof]
$131.00
# Fire Alarm Systems - NFPA 72 [per line item]
Fee
7.1 Fire Alarm Sys. - NFPA 72 - [base fee per system and/or
building] $557.00
7.2 Per additional group of 25 devices [or fraction thereof]
$66.00
7.3 Per additional sub, booster panel, and amplifier
$131.00
7.4 Floors 2 through 6 and floors below grade [per floor/level]
$262.00
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7.5 Floors 7 and above [per floor/level]
$393.00
# Kitchen Fire Suppression Systems [per line item]
Fee
8.1 Kitchen Fire Suppression Systems [base fee, per system]
$393.00
8.2 Per additional group of 10 nozzles [or fraction thereof]
$66.00
# Standpipe Systems [per line item]
Fee
9.1 Standpipe Systems [base fee per class I, II, III, or combination
system on the first floor/level] $688.00
9.2 Per additional floor/level
$66.00
9.3 Per pressure regulating valve/device
$66.00
# Smoke Management Systems [per line item]
Fee
10.1 Smoke Management Systems [base fee]
$66.00
10.2 Per \4 - hour of meetings, plan reviews, inspections, etc.
performed [or fraction thereof] $33.00
# Special Fire Suppression Systems [per line item]
Fee
11.1 Special Fire Suppression Systems [base fee is per system and
shall incorporate 11.2 or 11.3] $524.00
11.2 Clean Agent System [FM200, Inergen, C02, etc.]
$262.00
11.3 Water Mist or Dry Chemical
$131.00
# Plan Resubmittals [per line item]
Fee
12.1 Plan Resubmittals [minimum fee]
$197.00
12.2 Per additional 1/4 -hour of work performed [or fraction thereof]
$33.00
# Technical Reports [per line item]
Fee
13.1 Technical Reports [base fee]
$66.00
13.2 Water Supply Analysis
$524.00
13.3 Fire Code
$393.00
13.4 Alternate Means & Materials, Performance Based Design [not
submitted to BLDG] $1,310.00
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13.5 Misc. Technical Reports [not listed above - charged per hour]
$131.00
# F.S.E. Inspections [per line item]
Fee
14.1 Failed / Re-inspections
$262.00
14.2 Overtime Inspections [2-hour minimum]
$296.00
14.3 Overtime Inspections [each additional quarter-hour increment]
$37.00
14.4 Temporary Certificate of Occupancy
$197.00
# CVFD Fire & Life Safety Contractor License [per line item]
Fee
15.1 CVFD Fire & Life Safety Contractor License [per license, per
cal endar year] $131.00
15.2 CVFD Fire & Life Safety Contractor License [per license,
renewal] $66.00
# Other Activities [per line item]
Fee
16.1 Other Activities Not Specifically Listed Herein [per hour, one-
hour minimum] $131.00
16.2 Other Activities [each additional quarter-hour increment]
$33.00
16.3 Partial Work Fee [contractors that perform design only versus
installation only] 50% of the
Total Permit
16.4 Accelerated Plan Review [the greater value shall be used, 50%
of permit or O.T.] 50% of the
Total Permit
vs. O. T.
# Penalty Fees [per line item]
Fee
17.1 Penalty Fee For Permitted Work Performed and Not
Witnessed/Inspected by AHJ 50% of the
Permit Fee
17.2 Penalty Fee for Work Performed Without a Construction Permit
100% of the
Permit Fee
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[Resolution 2007-224, effective 08/14/2007]
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C. Motor Vehicle Accident Cost Recoverv Fees
Service Level Descrintion Fee
Level I Response Scene Safetv and Investigation (including traffic controL $435,00
natient contact hazard contro!)
Level 2 Response Includes Level I servl ces as well as clean-up and $495,00
material used (Sorbents used, hazardous clean-up and
disnosal)'
Level 3 Response Includes scene safety, fire suppression, breathing air, $605,00
rescue tools, hand tools, hose, tip use, foam, structure
protection, and clean-up of gasoline or other vehicle
fluids that are snilled as a result of the accident/fire,
Level 4 Response Includes Level I and 2 services as well as extrication $1,800,00
(heavv rescue tools rones airbags cribbing, etc.).
Level 5 Response Includes levels I, 2 and 3 services as well as air care $2.100.00
(multi- engine company response, mutual aid, helicopter,
etc).
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ATTACHMENT "D"
1/
05/04/2011, Item i k7
Page]6 of 16
LIST OF AGENCIES WHO CONTRACT WITH FIRE RECOVERY USA, LLC.
California Accounts
City of Pin ole Fire Department
Foresthill Fire Protection District
Pioneer Fire Protection District
Nevada County Consolidated Fire
District
Penryn Fire Protection District
City of Upland Fire Department
Montezuma Fire Protection District
Olancha Cartago Fire Department
Dobbins-Oregon House Fire Protection
District
Kirkwood VFD
Sutter-Basin Fire District
Loomis Fire Protection District
Carpinteria-Summerland Fire Protection
District
Georgetown Fire Protection District
Rio Vista Fire Department
Newcastle Fire Department
Nevada City Fire Department
Ripon F ire District
City of Roseville Fire Department
Tuolumne Fire District
North County Fire Protection District
South Placer Fire Protection District
Oakdale Rural Fire Protection District
City of Hemet Fire Department
City of Woodland Fire Department
Meridian Fire Protection District
City of Pet alum a Fire Department
Mokelumne Rural Fire District
Schell Vista Fire Protection District
El Dorado County Fire protection
District
River Delta Fire District
City of Selma Fire Department
City of Manteca Fire Department
City of San Bernardino Fire Department
Escalon Consolidated Fire District
Higgins Area Fire Protection District
Placer Hills Fire District
Arbuckle - College City Fire Protection
District
Waterloo Morada Rural County FPD
Willow Creek Fire Protection District
Keyes Fire Protection District
Apple Valley Fire Protection District
Intermountain F&R Department
Fire Recovery USA, LLC currently has 141 active accounts throughout the USA
(including California),
16-16
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONTRACT WITH FIRE
RECOVERY USA LLC TO PROVIDE EMERGENCY
SERVICES COST RECOVERY SERVICES
WHEREAS, the City of Chula Vista Fire Department responds to over 420 motor vehicle
accidents each year that involve either a fire or release of hazardous/toxic fluids; and
WHEREAS, the increased environmental protection requirements for mitigation and
clean-up of these incidences have resulted in higher costs to the Chula Vista Fire Department;
and
WHEREAS, California Health and Safety Code (Section 13000 et seq.) as well as
California Vehicle Code (Section 17300 et seq.) allows fire departments to recover costs incurred
responding to motor vehicle accidents; including response equipment and staff to secure, cleanup
and/or dispose of any hazardous waste; and
WHEREAS, the City of Chula Vista Fire Department wishes to contract with Fire
Recovery USA, LLC for the provision of fee billing and collections in relation to motor vehicle
accidents which qualifY for fee recovery; and
WHEREAS, Fire Recovery USA, LLC is a nationally recognized company specializing
in fee recovery and collections, and has established a professional relationship with various auto
insurance companies.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby approve a contract with Fire Recovery USA, LLC to provide emergency services
cost recovery services.
David Hanneman
Fire Chief
Approved as to form by
~
City Attorney
Presented by
H:shared/attomeylFire - Fire Recovery USA
16-17
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING CHAPTER XV FIRE
DEPARTMENT FEES OF THE CITY OF CHULA VISTA
MASTER FEE SCHEDULE
WHEREAS, the City of Chula Vista Fire Department responds to over 420 motor vehicle
accidents each year that involve either a fire or release of hazardous/ toxic fluids; and
WHEREAS, the increased environmental protection requirements for mitigation and
clean-up of these incidences have resulted in higher costs to the Chula Vista Fire Department;
and
WHEREAS, California Health and Safety Code (Section 13000 et seq.) as well as
California Vehicle Code (Section 17300 et seq.) allows fire departments to recover costs incurred
responding to motor vehicle accidents; including response equipment and staff to secure, cleanup
and/or dispose of any hazardous waste; and
WHEREAS, the City of Chula Vista Master Fee Schedule, "Chapter XV Fire Department
Fees" is required to be updated to reflect new fees associated with the recovery of costs
associated with motor vehicle accidents.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby amend Chapter XV Fire Department Fees of the City of Chula Vista Master Fee
Schedule to read:
(see next page)
16-18
Page 2, Item:
Meeting Date: 05/04/2010
CHAPTER XV FIRE DEPARTMENT FEES
A. FIRE CODE INSPECTIONS - OPERATIONAL PERMITS
The City of Chula Vista has implemented a permit fee schedule. The fees as set forth in
"Attachment 2-A, Sections 2901.00 and 2901.01" are based on an inspection/review of
the activity to be conducted. Issuance of a permit is contingent upon compliance.
Multiple permits will be required if applicable (this fee schedule shall adjust for annual
San Diego Consumers Price Index for All Urban Consumer changes, not to exceed full
cost recovery).
Activitv Fee Frel1uencv
Place of Assembly $105 Annually/Each Occurrence
Waste Handling $105 Annuallv
Outdoor Carnival or Fairs $165 Each Occurrence
Combustible Fiber Storage $105 Annuallv
Combustible Misc. Storage $165 Annually
Compressed Gases $121 Annually/Each Occurrence
Cryogens $116 Annually
Drv Cleaning Operations $105 Annuallv
Combustible Dust Producing Operations $105 Annually
Explosives or Blasting Agents $105 Annuallv/Each Occurrence
Fireworks $143 Annually/Each Occurrence/Each
Barge
Repair Garages for Motor Fuel Dispensing $116 Annually
Facilities
Hazardous Materials Use & Storage $198 Annually
High-Piled Combustible Storage $165 Annually
Liquefied Petroleum Gases $105 Annually/Each Occurrence
Industrial Ovens $105 Annually
Spraving or Dipping! Flammable Finishes $165 Annually
Tents, Canopies & Temporary Membrane $105 Each Occurrence/ Per Tent/Canopy
Structures
Hot Work Operations: Including Cutting and $105 Annually
Welding:
Storage Tanks (Flammable and/or $165 Each Occurrence (Per Tank)
Combustible Liquids)-INSTALLATION
Storage Tanks (Flammable and/or $165 Each Occurrence (Per Tank)
Combustible Liquids)-REMOV AL
Storag:e of Flammable or Combustible Liquids $105 Annually
Christmas Tree Lots $83 Each Occurrence
General Use Permit $105 Annually
16-19
Page 3, Item:
Meeting Date: 05/04/2010
General Use Permit Comments: Shall be required for any activity or operation not specifically
described below which, in the judgment of the Fire Chief or Fire Marshal is likely to produce
conditions hazardous to life or property, and shall be accompanied by fees as set forth herein.
General Use Certificate $105 Each Occurrence
General Use Certificate Comments: Shall be required for each new business within the city of
Chula Vista that is applying for a business license (with a physical address) or for a single
insvection of any business that does not currently have a fee listing herein.
Magnesium $105 Annually
Fumigation or Thermal Insecticide Fogging $198 Annually
Lumber Yards and Woodworking Plants $165 Annually
Mall/Oven and Covered $198 Annually
Mall/Open and Covered Comments: To overate a structure(s) as an open or covered mall.
Batterv Systems $105 Annually
Battery System Comments: To install or operate stationary lead-acid battery systems having a
liquid capacity of more than 100 gallons.
Residential Licensed Care Pre-inspections (25 $50 Each Occurrence
or less residents)
Residential Licensed Care Pre-inspections (26 $100 Each Occurrence
or more residents)
Final Clearance Inspections: Care Facilities $50 Each Occurrence
(25 or less residents)
Final Clearance Inspections: Care Facilities $100 Each Occurrence
(26 or more residents)
Aerosol Products $121 Annuallv
Amusement Buildings $105 Each Occurrence
Aviation Facilities $198 Annually
Cellulose Nitrate Film $105 Annually
Exhibits and Trade Shows $198 Each Occurrence
Fruit and Crop Ripening $143 Annually
HPM (Hazardous Production Materials) $198 Annually
Facilities
Liquid or Gas Fuelled Vehicles / Equipment in $105 Annually/Each Occurrence
Assembly Buildings
Oven Burning $105 Each Occurrence
Organic Coatings $105 Annually
Pyroxylin Plastics $121 Annually
Remgeration Equipment $105 Annually
Heliport $105 Annuallv
Storage of Scrap Tires and Tire Byproducts $116 Annuallv
Tire Rebuilding Plants $198 Annually
Activi
Federal, State, or
other Government
Fee
$105
/Comments
16-20
Page 4, Item:
Meeting Date: 05/04/2010
Agencies Occurrence
$116 I - I Occupancies - Residential care facilities,
residential care facilities for the elderly, etc,
$165 I - 2 Occupancies - hospitals.
High-rise $143 Annually See adopted California Fire Code for specific
Building definition.
Inspections Plus
$11 per
floor
Re- Inspection $105 Per Re-inspection fee would be assessed upon the
Fees Occurrence second re-inspection when required and/or;
Re-inspection as a result of a requested inspection
not cancelled two hours or more prior to
established appointment time.
*Annually = renewable fire code inspection permits.
*Each Occurrence - temporary fire code inspection permits.
*See adopted California Fire Code for specific definitions/applicability.
[Resolution 2007-224, effective 08/14/2007J
B. FIRE SAFETY ENGINEERING - CONSTRUCTION PERMITS
Fees for the plan review, plan re-submittal, consultation, inspection, and re-inspection of
fire and life safety systems shall be collected in accordance with the fee schedule as set
forth in "Attachment 2-B, Sections 3100.00 (this fee schedule shall adjust for annual San
Diego Consumer Price Index for All Urbam Consumers changes, not to exceed full cost
recovery).
Activities
#
Fee
1.1
1.2
1.3
1.4
1.5
1.6
$622.00
$1,015.00
$1,343.00
$1,736.00
$2,260.00
$131.00
#
Fee
1.7
$164.00
1.8 21 - 100 Sprinklers [typical floor on same system/riser]
$328.00
1 6-21
Page 5, Item:
Meeting Date: 05/04/2010
1.9 101 - 200 Sprinklers [typical floor on same system/riser]
$393.00
1.10 201 - 350 Sprinklers [typical floor on same system/riser]
$524.00
1.11 351 - 600 Sprinklers [typical floor on same system/riser]
$721.00
1.12 Per additional group of 100 sprinklers [or fraction thereof-
typical floor on same system/riser] $131.00
# Additional Fire Sprinkler System Review/Inspection Items
NFP A 13 Fee
1.13 Additional hydraulically calculated areas [per required calc,
base plan review, includes I calc] $131.00
1.14 Pre-action system
$262.00
1.15 Antifreeze system
$262.00
1.16 Underground work per 100 linear feet [or fraction thereof]
$131.00
# Fire Sprinkler Tenant Improvement [per line item]
Fee
2.1 Sprinkler Tenant Improvement - [base fee per suite - includes
first 50 sprinklers] $360.00
2.2 Per additional group of 50 sprinklers [or fraction thereof]
$66.00
2.3 Tenant Improvement with a hydraulic calculation [first calced
area] $262.00
2.4 Additional hydraulically calculated areas [per required calc]
$131.00
2.5 Pre-action system
$262.00
2.6 Antifreeze system
$262.00
2.7 In-rack system w/calcu1ations
$393.00
# Residential Fire Sprinkler Systems - NFPA 13R [per
system/riser] Fee
3.1 1 - 50 Sprinklers [per system/riser]
$557.00
3.2 51-150 Sprinklers [per system/riser]
$688.00
3.3 151 - 250 Sprinklers [per system/riser]
$884.00
16-22
Page 6, Item:
Meeting Date: 05/04/2010
3.4 251-350 Sprinklers [per system/riser]
$1,081.00
3.5 Per additional group of 100 sprinklers [or fraction thereof - per
system/riser] $98.00
# Residential Fire Sprinkler Systems - NFPA 13R [each add.
Typical system layout] Fee
3.6 1 - 50 Sprinklers [each add. typical system floorplan/layout]
$360.00
3.7 51-150 Sprinklers [each add. typical system floorplanllayout]
$426.00
3.8 151 - 250 Sprinklers [each add. typical system
floorplanllayout] $524. 00
3.9 251-350 Sprinklers [each add. typical system floorplanllayout]
$622.00
3.10 Per additional group of 100 sprinklers [or fraction thereof]
$95.00
# Additional Residential Fire Sprinkler Sys.
Review/Inspection Items - NFPA 13R Fee
3.11 Additional hydraulically calculated areas [per required calc,
base plan review, includes 1 calc] $131.00
3.12 Underground work per 100 linear feet [or fraction thereof]
$131.00
# Dwelling Fire Sprinkler Systems - NFPA 13D [per line
item] Fee
4.1 1 - 50 Sprinklers [per system/riser]
$459.00
4.2 Per additional group of 50 sprinklers [or fraction thereof - per
system/riser] $66.00
4.3 Additional hydraulically calculated areas [per required calc,
base plan review, includes 1 calc] $131.00
4.4 Residential Fire Pump
$262.00
4.5 Per additional NFP A 13D system with the same exact structural
footprint/layout [4.1 & 4.2] Varies [50%
of Model
Unit]
# Fire Pumps - NFP A 20 [per line item]
Fee
5.1 Fire Pumps - NFP A 20 - [base fee per fire pump with a tank]
$2,162.00
5.2 Fire Pumps - NFP A 20 - [base fee per fire pump without a
tank] $1,767.00
16-23
Page 7, Item:
Meeting Date: 05/04/2010
5.3 Pressure Maintenance Pumps [i.e. stand alone, retrofit]
$917.00
# Fire Service Utilities [per line item]
Fee
6.1 Fire Service Utilities [base fee, inspection Only]
$917.00
6.2 Per additional 100 linear feet of pipe [or fraction thereof]
$131.00
# Fire Alarm Systems - NFP A 72 [per line item]
Fee
7.1 Fire Alarm Sys. - NFP A 72 - [base fee per system and/or
building] $557.00
7.2 Per additional group of 25 devices [or fraction thereof]
$66.00
7.3 Per additional sub, booster panel, and amplifier
$131.00
7.4 Floors 2 through 6 and floors below grade [per floor/level]
$262.00
7.5 Floors 7 and above [per floor/level]
$393.00
# Kitchen Fire Suppression Systems [per line item]
Fee
8.1 Kitchen Fire Suppression Systems [base fee, per system]
$393.00
8.2 Per additional group of 10 nozzles [or fraction thereof]
$66.00
# Standpipe Systems [per line item]
Fee
9.1 Standpipe Systems [base fee per class I, II, III, or combination
system on the first floor/level] $688.00
9.2 Per additional floor/level
$66.00
9.3 Per pressure regulating valve/device
$66.00
# Smoke Management Systems [per line item]
Fee
10. I Smoke Management Systems [base fee]
$66.00
10.2 Per ~ - hour of meetings, plan reviews, inspections, etc.
performed [or fraction thereof] $33.00
# Special Fire Suppression Systems [per line item]
Fee
16-24
Page 8, Item:
Meeting Date: 05/04/2010
11.1 Special Fire Suppression Systems [base fee is per system and
shall incorporate 11.2 or 11.3] $524.00
11.2 Clean Agent System [FM200, lnergen, C02, etc.]
$262.00
11.3 Water Mist or Dry Chemical
$131. 00
# Plan Resubmittals [per line item]
Fee
12.1 Plan Resubmittals [minimum fee]
$197.00
12.2 Per additionall!4 -hour of work performed [or fraction thereof]
$33.00
# Technical Reports [per line item]
Fee
13.1 Technical Reports [base fee]
$66.00
13.2 Water Supply Analysis
$524.00
13.3 Fire Code
$393.00
13.4 Alternate Means & Materials, Performance Based Design [not
submitted to BLDG] $1,310.00
13.5 Misc. Technical Reports [not listed above ~ charged per hour]
$131. 00
# F.S.E. Inspections [per line item]
Fee
14.1 Failed / Re-inspections
$262.00
14.2 Overtime Inspections [2-hour minimum]
$296.00
14.3 Overtime Inspections [each additional quarter-hour increment]
$37.00
14.4 Temporary Certificate of Occupancy
$197.00
# CVFD Fire & Life Safety Contractor License [per line item]
Fee
15.1 CVFD Fire & Life Safety Contractor License [per license, per
calendar year] $131. 00
15.2 CVFD Fire & Life Safety Contractor License [per license,
renewal] $66.00
# Other Activities [per line item]
Fee
16-25
Page 9, Item:
Meeting Date: 05/04/20 I 0
16.1 Other Activities Not Specifically Listed Herein [per hour, one-
hour minimum] $131.00
16.2 Other Activities [each additional quarter-hour increment]
$33.00
16.3 Partial Work Fee [contractors that perform design only versus
installation only] 50% of the
Total Permit
16.4 Accelerated Plan Review [the greater value shall be used, 50%
of permit or O.T.] 50% of the
Total Permit
vs. O. T.
# Penalty Fees [per line item]
Fee
17.1 Penalty Fee For Permitted Work Performed and Not
Witnessed/Inspected by AHJ 50% of the
Permit Fee
17.2 Penalty Fee for Work Performed Without a Construction Permit
100% of the
Permit Fee
[Resolution 2007-224, effective 08/14/2007}
C. Motor Vehicle Accident Cost Recoverv Fees
Service Level Descrintion Fee
Level I Response Scene Safetv and Investigation (including traffic control. $435.00
· "atient contact hazard control'
Level 2 Response Includes Level I services as well as clean-up and $495.00
material used (Sorbents used. hazardous clean-up and
disnosaJ).
Level 3 Response Includes scene safetv. fire suppression. breathing air. $605.00
rescue tools. hand tools. hose. tip use. foam. structure
protection. and clean-up of gasoline or other vehicle
fluids that are snilled as a result of the accident/fire.
Level 4 Response Includes Level I and 2 services as well as extrication $1.800.00
(heavy rescue tools ro"es airba<'s cribbill!1:. etc.),
Level 5 Response Includes levels 1. 2 and 3 services as well as air care $2.1 00.00
(multi- engine companv response. mutual aid. helicopter.
etc).
Presented by:
Approved as to form by:
David Hanneman
Fire Chief
~~~,
Bart Miesfel~
City Attorney
16-26
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
eC-: ~
Bart C. Mie~
City Attorney
Dated:
L(- 1-- -/U
SERVICES AGREEMENT
BETWEEN FIRE RECOVERY USA, LLC AND
THE CITY OF CHULA VISTA FIRE DEPARTMENT
16-27
ATTACHMENT "E"
CONTRACT FOR SERVICE
SERVICES AGREEMENT
This Services Agreement ("Agreement") is made effective as of ,
2010 ("Effective Date"), by and between FIRE RECOVERY USA, LLC., a Califomia limited
liability company ("Company"), and Chula Vista Fire Department, ("Fire Department"). The
Company and Fire Department are referred to herein individually as a "party" and collectively as
the "parties."
RECITALS
WHEREAS, Company engages in the business of performing billing and collection
services ("Company Services") for United States fIre departments in connection with the motor
vehicle accidents ("MY A") and other services at which the fIre departments provide emergency
services;
WHEREAS, Fire Department seeks the services of Company to assist with the billing and
collection for services that Fire Department provides in connection with MY A and other
services; and
WHEREAS, Company and Fire Department desire to enter into this Agreement to
memorialize their agreements regarding the Company Services to be provided to Fire
Department.
NOW, THEREFORE, in consideration of the mutual representations, warranties and
covenants set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Company and Fire Department agree as follows:
ARTICLE 1
ENGAGE~lENT
1.1. EnJ>agement. Fire Department hereby engages Company to provide the Company
Services described in Article 4 herein, and F ire Department hereby accepts such engagement, all
on the terms and conditions set forth herein. Company will determine the method, detail and
means of performing the services detailed below.
ARTICLE 2
REPRESENTATIONS AND WARRANTIES
2.1. Remesentations and Warranties of Companv. Company hereby represents and
warrants to Fire Department that, at all times during the term of this Agreement, Company is a
limited liability company duly organized, validly existing and in good standing under the laws of
the State ofCalifomia.
2.2. Representations and Warranties of Fire Department. Fire Department hereby
represents and warrants to Company that, at all times during the term of this Agreement, Fire
16-28
Department is a municipal fire department and organized fire fighting unit established pursuant
to the laws and ordinances of the state in which Fire Department is located.
ARTICLE 3 .
COMPANY STATUS AND QUALIFICATIONS
3.1. IndeDendent Contractor. Company enters into this Agreement, and will remain
throughout the term of the Agreement, as an independent contractor. Company agrees that it will
not become an employee, partner, agent or principal of Fire Department while this Agreement is
in effect.
3.2. Payment of Income Taxes. Company is responsible for paying when due all
income taxes, including estimated taxes, incurred as a result of the compensation paid by Fire
Department to Company for services rendered under this Agreement. On request, Company will
provide Fire Department with proof of timely payment. Company agrees to indemnify fire
Department for any claims, costs, losses, fees, penalties, interest, or damages suffered by Fire
Department resulting from Company's failure to comply with this provision.
3.3. Use of EmDlovees or Subcontractors. Company may, at Company's own
expense, use any employees or subcontractors as Company deems necessary to perform the
services required of Company by this Agreement. Fire Department may not control, direct, or
supervise Company's employees or subcontractors in the performance of those services.
3.4. Oualifications. Company represents that it is qualified and has the skills
necessary to perform the services under this Agreement in a competent and professional manner,
without the adyice or direction of Fire Department.
3.5. OwnershiD Interest.
Department.
Company "ill have no ownership interest m Fire
3.6. No Benefit Contributions. Company shall have no obligation under this
Agreement to compensate or pay applicable taxes or proyide employee benefits of any kind to
any person employed or retained by Fire Department.
3.7. Attorney-in-Fact. Fire Department appoints Company as Fire Department's
attorney-in-fact for the following purposes:
(a) Billing and Collections. To bill and collect ("Collections") all revenue earned by
and due to Fire Department, in connection with Fire Department's provision of
emergency services at the sites of MY A and other services, and to receive all
Collections on Fire Department's behalf and to sue for and give satisfaction for
monies due on account and to withdraw any claims, suits, or proceedings
pertaining to or arising out of Company's or Fire Department's right to collect
such amounts; and
(b) Endorsement. To take possession of and endorse in Fire Department's name any
notes, checks, money orders, and any other instruments received as Collections.
2
16-29
ARTICLE 4
GENERAL RESPONSIBILITIES OF COMPANY
4.1. Minimum Amount of Service. Company agrees to devote as much time and
attention to the perfonnance of the Company Services under this Agreement as may be, in
Company's sole discretion, required to accomplish the tasks described herein to accomplish the
results for which the Company is responsible under this Agreement.
4.2. Companv Services. Contractor agrees to perfonn the Company Services related
to billing and collections set forth in the "List of Company Services" attached hereto as Schedule
"A" and incorporated herein by reference.
4.3. Non-Exclusive Relationship. Company may represent, perfonn services for, and
contract with as many additional clients, persons, or companies as Company, in Company's sole
discretion, sees fit.
4.4. Time and Place of Perfonnin~ Work. Company may perfonn the services under
this Agreement at any suitable time and location Company chooses.
4.5. Materials and Equipment. Company will supply all materials and equipment
required to perfonn the services under this Agreement.
4.6. Workers' Compensation. Company agrees to provide workers' compensation
insurance for Company and Company's employees and agents and agrees to hold hannless and
indemnify Fire Department for any and all claims arising out of any injury, disability, or death of
any of Company's employees or agents.
4.7. Assignment. Neither this Agreement nor any duties or obligations under this
Agreement may be assigned by Company without the prior written consent of Fire Department,
which consent shall not be unreasonably withheld.
ARTICLE 5
COMPENSATION OF COMPANY
5.1. Compensation for Companv Services. All Company Services provided pursuant
to this Agreement will be provided in accordance with the tenns, including compensation
amounts and schedule of remittance, set forth in the "List of Company Services," attached hereto
as Schedule A.
5.2. The provisions of Article II of this Agreement will govern any dispute associated
with compensation.
3
16-30
ARTICLE 6
OBLIGATIONS OF FIRE DEPARTMENT
6.1. Cooperation of Fire Department. The Fire Department agrees to comply with all
reasonable requests of Company and provide access to a:ll documents reasonably necessary to the
performance of Company's duties under this Agreement.
6.2. Assignment. Neither this Agreement nor any duties or obligations under this
Agreement may be assigned by Fire Department without the prior written consent of Company,
which consent shall not be unreasonably withheld.
ARTICLE 7
FIRE DEPARTl\-tENT AUTHORIZATION
7.1. Authorization. Notwithstanding other provisions of this Agreement, Company
shall obtain authorization from Fire Department prior to performing any of the following:
(a) The sale conveyance, transfer, pledge exchange, assignment, hypothecation, or
encumbrance of Fire Department's interest in any sums owed to Fire Department;
and
(b) All other limitations as stated by the terms of this Agreement.
ARTICLE 8
TERMINATION OF AGREEMENT
8.1. Termination on Notice. Notwithstanding any other provision of this Agreement,
either party may terminate this Agreement at any time by giving thirty (30) days written notice to
the other party. Unless earlier terminated as set forth below, this Agreement shall be effective as
of the date fIrst set out above and shall continue for a period of two (2) years with Fire
Departments option to renew for two additional two (2) year periods.
8.2. Termination on Occurrence of Stated Events. This Agreement will terminate
automatically on the occurrence of any of the following events:
(a) Bankruptcy or insolvency of either party.
(b) Assignment of this Agreement by either party without the consent of the other
party. The parties agree that neither party will unreasonably withhold consent to
such an assignment.
8.3. Termination for Default. If either party defaults in the performance of this
Agreement or materially breaches any of its provisions, the non-breaching party may terminate
this Agreement by giving written notifIcation to the breaching party. Termination will take effect
immediately on receipt of notice by the breaching party or fIve (5) days after mailing of notice,
whichever occurs fIrst. For the purposes of this paragraph, material breach of this Agreement
includes, but is not limited to, the following:
4
1 6-31
(a) Company's failure to complete the servIces specified m the Description of
Services.
(b) Fire Department's material breach of any representation, warranty or agreement
contained in this Agreement.
(c) Company's material breach of any representation, warranty or agreement
contained in this Agreement.
(d) Fire Department's yearly billable run volume is at or below six (6) runs.
ARTICLE 9
PROPRIETARY RIGHTS
9.1. Confidential Information. Any written, printed, graphic, or electronically or
magnetically recorded information furnished by Fire Department for Company's use are the sole
property of Fire Department. This proprietary information includes, but is not limited to,
customer requirements, customer lists, marketing information, and information concerning the
Fire Department's employees, products, services, prices, operations, and subsidiaries. Company
will keep this confidential information in the strictest confidence, and will not disclose it by any
means to any person except with the Fire Department's approval, and only to the extent
necessary to perform the services under this Agreement. This prohibition also applies to
Company's employees, agents, and subcontractors. On termination of this Agreement, Company
will return any confidential information in Company's possession to fire Department.
ARTICLE 10
INDEMNIFICATION AND INSURANCE REQUIREMENTS
10.1. Indemnification bv Fire DeDartment. Fire Department'shall indemnify Company
and hold it harmless from any and all liability, including reasonable attorney's fees, caused by or
resulting from (i) any negligent or intentional acts or omissions of Fire Department or any
officer, director, agent, or employee thereof, or (ii) any breach of this Agreement by Fire
Department.
10.2. Indemnification bv Company. Company shall indemnify Fire Department and
hold it harmless from any and all liability, including reasonable attorneys' fees, caused by or
resulting from (i) the negligent or intentional acts or omissions of Company or any officer,
director, agent, or employee thereof, or (ii) any breach of this Agreement by Company.
10.3 Insurance. COMPANY agrees to continuously maintain, in full force and effect,
the following policies of insurance during the term of this Agreement.
COVERAGE
LIMITS OF LIABILITY
Workers Compensation
Statutory
5
16-32
Commercial General Liability
Bodily Injury:
$1,000,000 each occurrence
$2,000,000 aggregate
Property Damage:
$1,000,000 each occurrence
Personal Injury:
$1,000,000 each occurrence
$2,000,000 aggregate
Automobile Liability including
endorsements for owned,
hired and nonowned vehicles
Bodily Injury:
$500,000 each occurrence
$1,000,000 aggregate
Property Damage:
$100,000 each occurrence
COMPANY shall submit a certificate evidencing such coverage in a form satisfactory to
the City Attorney of CITY, prior to undertaking any work hereunder. COMPANY shall also
provide a separate endorsement form showing CITY, its officers, agents and employees as
additional named insureds for each type of coverage, except for Workers' Compensation and
Professional Liability. Such insurance shall specifically cover the contractual liability of
COMPANY. The coverage shall be primary as to such additional insureds and no coverage of
the CITY shall be called upon to contribute to a loss. Said certificates shall provide for at least
thirty (30) days written notice to CITY prior to cancellation or modification of any insurance
required by this Agreement. COMPANY shall furnish a certificate for the period covered by this
Agreement. Any insurance written on a claims made basis is subject to the approval of the City
Attorney. Insurance coverage in the minimum amounts set forth herein shall not be construed to
relieve COMPANY of liability in excess of such coverage, nor shall it preclude CITY from
taking such other actions as are available to it under any other provisions of this Agreement or
law.
ARTICLE 11
GENERAL PROVISIONS
11.1. Governing Law. This Agreement shall be governed in all respects by the laws of
the State of California, without giving effect to any choice or conflict of law provision or rule
(whether of the State of California or any other jurisdiction that would cause the application of
the laws of any jurisdiction other that the State of California).
11.2. Entire Agreement. This Agreement constitutes the entire agreement between the
Parties pertaining to the subject matter contained in it and supersedes all prior and
contemporaneous agreements, representations, and understanding of the parties.
11.3. Successors and Assi~s. Except as otherwise provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors
and administrators of the parties hereto. No party may assign any of its rights or obligations
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hereunder without the express written consent of the other party hereto, which consent may not
be unreasonably withheld; provided, however, any party may assign any and all of its rights and
interests hereunder to one or more of its affiliates and designate one or more of its affiliates to
perform its obligations hereunder; provided, however, that such party remains liable for full and
total performance of its obligations hereunder.
11.4. Notices. Any notices authorized to be given hereunder shall be in writing and
deemed given, if delivered personally or by overnight courier, on the date of delivery, if a
Business Day, or if not a business day, on the first Business Day following delivery, or if mailed,
three days after mailing by registered or certified mail, return receipt requested, and in each case,
addressed, as follows:
If to the Company to:
with a copy to:
Fire Recovery USA, LLC
219 Vernon Street
Roseville, CA 95678
Attention: Mike Rivera
The Watkins Firm, APC
4520 Executive Drive, Suite 105
San Diego, California 92121
Attention: Chris Popov, Esq.
If to Fire Department to:
with a copy to:
Attention:
Attention:
or if delivered by telecopier, on a Business Day before 4:00 PM local time of addressee, on
transmission confirmed electronically, or if at any other time or day on the first Business Day
succeeding transmission confirmed electronically, to the facsimile numbers provided above, or to
such other address or telecopy number as any party shall specify to the other, pursuant to the
foregoing notice provisions. When used in this Agreement, the term "Business Day" shall mean
a day other than a Saturday, Sunday or a day on which commercial banks in San Diego are
generally closed for business.
11.5. Waiver: Amendments. This Agreement, and the Transaction Documents, (i) set
forth the entire agreement of the parties respecting the subject matter hereof, (ii) supersede any
prior and contemporaneous understandings, agreements, or representations by or among the
parties, written or oral, to the extent they related in any way to the subject matter hereof, and (iii)
may not be amended orally, and no right or obligation of any party may be altered, except as
expressly set forth in a writing signed by such party.
11.6. Countemarts. This Agreement may be signed in several counterparts.
11.7. EXDenses. Each party shall bear its own expenses incurred with respect to the
preparation of this Agreement and the consummation of the transactions contemplated hereby.
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11.8. Arbitration.
(a) If at any time there shall be a dispute arising out of or relating to
any provision of this Agreement, any Transaction Document or any agreement
contemplated hereby or thereby, such dispute shall be submitted for binding and
final determination by arbitration in accordance with the regulations then
obtaining of the American Arbitration Association. Judgment upon the award
rendered by the arbitrator(s) resulting from such arbitration shall be in writing,
and shall be final and binding upon all involved parties. The site of any
arbitration shall be within the County of Placer in the State of California. The
award may be confirmed and enforced in any court of competent jurisdiction.
The parties hereby agree that any federal or state court sitting in the County of
Placer in the State of California is a court of competent jurisdiction. This
paragraph does not limit in any way a party's right to seek injunctive relief in any
state or federal court sitting in the County of Placer in the State of California
Uurisdictional, venue and inconvenient forum objections to which are hereby
waived by both parties), including recovery offees and costs.
(b) This arbitration clause shall survive the termination of this
Agreement, any Transaction Document and any agreement contemplated hereby
or there by.
11.9. Waiver of JUry Trial: Exemplary Damages. THE PARTIES HERETO HEREBY
WAIVE THEIR RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE
ARISING UNDER TIllS AGREEMENT OR ANY TRANSACTION DOCUMENT. NO
PARTY SHALL BE AWARDED PUNITIVE OR OTHER EXEMPLARY DAMAGES
RESPECTING ANY DISPUTE ARISING UNDER TIllS AGREEMENT OR ANY
TRANSACTION DOCUMENT CONTEMPLATED HEREBY.
Signatures on following page.
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IN WlTNESS WHEREOF, the tmdersigned have executed this Agreement as of the date
first written above.
COMPANY:
FIRE RECOVERY USA, LLC.
a California limited liability company
By:
/' //
~;?4h<
!
Name: Michael Rivera
Title: President
FIRE DEPARTMENT:
Chula Vista Fire Departmeut
By:
Name:
Title:
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SCHEDULE A
LIST OF COMPANY SERVICES
1. Fire Recovery agrees to bill the responsible party on the Fire Department's behalf for
services provided/rendered. The billing rates below show a range of "billing levels",
however, our claims are itemized. The levels below are provided as a range of
acceptable billing rates and are considered usual, customary and reasonable (UCR).
Fire Recovery will provide notice to Fire Department of changes in rates.
2. Fire Recovery will provide, as a normal matter of business; entry of claims and
submission to the responsible party, collections of monies deemed due to the Fire
Department, payments of the agreed upon percentage of said monies to Fire
Department, and reporting of progress.
3. Fire Recovery agrees to bill to the best of its ability all claims provided to Fire Recovery
by the Fire Department.
4. Fire Recovery will not begin litigation against a person, entity, or insurance carrier
without prior written approval by the Fire Department.
5. Fire Recovery agrees to reimburse Fire Department for a portion of the monies collected
at a rate of 83% of the total monies collected on the Fire Department's claims for the first
six (6) months. Every six (6) months Fire recovery agrees to provide Fire Department
with an audit of its collection percentage from the preceding six (6) months. If the
preceding six (6) months collection percentage is more than 65%, then Fire Recovery
will be entitled to retain an addition 3% per month on monies collected until the next six
(6) month audit. If a six (6) month audit shows the collection percentage drops below
65%, then Fire Recovery will reimburse Fire Department a the original rate of 83% for
the following six (6) months. The collection percentage will be based on "billable runs",
defined as runs where the at-fault billable individual is a non-resident and has insurance
coverage.
6. Fire Recovery agrees to pay these monies collected to the Fire Department on a
monthly basis, within seven (7) working days after the close and accounting of the
monthly billing cycle.
7. Fire Recovery agrees to make available, reports via a password protected website to the
Fire Department which detail billable claims outstanding (which are claims submitted, but
not yet completed) and claims completed in the prior billing cycle.
8. Fire Recovery will not be responsible for, nor accept any liability for, any erroneous,
invalid, or illegal procedure codes or claims submitted to Fire Recovery by the Fire
Department on the Run Sheets.
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EXHIBIT A
MITIGATION FEES
BASED ON PER HOUR
MOTOR VEHICLE INCIDENTS
Level 1 - $435.00
Provide hazardous materials assessment and scene stabilization. This will be the most
common "billing level". This occurs almost every time a fire department responds to an
accident/incident.
Level 2 - $495.00
Includes level 1 services as well as clean up and material used (sorbents) for
hazardous fluid clean up and disposal. We will bill at this level if the fire department has
to clean up any gasoline or other automotive fluids that are spilled as a result of the
accident/incident.
Level 3 - CAR FIRE - $605.00
Provide scene safety, fire suppression, breathing air, rescue tools, hand tools, hose, tip
use, foam, structure protection, and clean up gasoline or other automotive fluids that are
spilled as a result of the accident/incident.
Level 4 - $1,800.00
Includes level 1 & 2 services as well as extrication (heavy rescue tools, ropes, airbags,
cribbing etc.). We will bill at this level if the fire department has to free/remove anyone
from the vehicle(s) using any equipment. We will not bill at this level if the patient is
simply unconscious and fire department is able to open the door to access the patient.
This level is to be billed only if equipment is deployed.
Level 5 - $2,200.00
Includes levels 1, 2, & 4 services as well as Air Care (multi-engine company response,
mutual aid, helicopter). We will bill at this level any time a helicopter is utilized to
transport the patient(s).
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Level 6
Itemized Response: You have the option to bill each incident as an independent event
with custom mitigation rates, for each incident using, itemized rates deemed usual,
customary and reasonable (UCR). These incidents will be billed, itemized per
apparatus, per personnel, plus products and equipment used.
HAZMAT
Level 1 - $700.00
Basic Response: Claim will include engine response, first responder assignment,
perimeter establishment, evacuations, set-up and command.
Level 2 - $2,500.00
Intermediate Response: Claim will include engine response, first responder
assignment, hazmat certified team and appropriate equipment, perimeter establishment,
evacuations, set-up and command, Level A or B suit donning, breathing air and
detection equipment. Set-up and removal of decon center.
Level 3 - $5,900.00
Advanced Response: Claim will include engine response, first responder assignment,
hazmat certified team and appropriate equipment, perimeter establishment,
evacuations, first responder set-up and command, Level A or B suit donning, breathing
air and detection equipment and robot deployment. Set-up and removal of decen
center, detection equipment, recovery and identification of material. Disposal and
environment clean up. Includes above in addition to any disposal fees of material and
contaminated equipment and material used at scene. Includes 3 hours of on scene
time - each additional hour @ $300.00 per HAZMAT team.
PIPELINE INCIDENTS I POWER LINE INCIDENTS
(Includes, but not limited to: Gas, Sewer, Septic to Sewer, and Water Pipelines)
Level 1 - $400.00
Basic Response: Claim will include engine response and first responder assignment,
perimeter establishment, evacuations, first responder set-up and command. Includes
inspection without damage or breakage.
Level 2 - $1,000.00
Intermediate Response: Claim will include engine response, first responder
assignment, and appropriate equipment, perimeter establishment, evacuations, first
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responder set-up and command. May include HAZMA T team, Level A or B suit
donning, breathing air and detection equipment. Supervise and/or assist pipeline repair.
Level 3 - Itemized Claim Charges
Advanced Response: Claim will include engine response, first responder assignment,
and appropriate equipment, perimeter establishment, evacuations, first responder set-
up and command. May include HAZMAT team, Level A or B suit donning, breathing air
and detection equipment. Supervise and/or assist pipeline repair of intermediate to
major pipeline damage. May include set-up and removal of decon center, detection,
recovery and identification of material. Disposal and environment clean up.
FIRE INVESTIGATION
Fire Investigation Team - $275.00 per hour.
Includes:
. Scene Safety
. Investigation
. Source Identification
. K-9/Arson Dog Unit
. Identification Equipment
. Mobile Detection Unit
. Fire Report
The claim begins when the Fire Investigator responds to the incident and is billed
for logged time only.
FIRES
Assignment - $400.00 per hour, per engine / $500.00 per hour, per truck
Includes:
. Scene Safety
. Investigation
. Fire / Hazard Control
This will be the most common "billing level". This occurs almost every time a fire
department responds to an incident.
OPTIONAL: A fire department has the option to bill each fire as an independent
event with custom mitigation rates.
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Itemized, per person, at various pay levels and for itemized products use.
WATER INCIDENTS
level 1
Basic Response: Claim will include engine response, first responder assignment,
perimeter establishment, evacuations, first responder set-up and command, scene
safety and investigation (including possible patient contact, hazard control). This will be
the most common "billing level". This occurs almost every time a Fire Department
responds to a water incident.
Billed at $400 plus $50 per hour, per rescue person.
Level 2
Intermediate Response: includes Level 1 services as well as clean up and material
used (sorbents), minor hazardous clean up and disposal. We will bill at this level if the
fire department has to clean up small amounts of gasoline or other fluids that are spilled
as a result of the incident.
Billed at $800 plus $50 per hour, per rescue person.
level 3
Advanced Response: includes Level 1 and Level 2 services as well as DAR.T.
activation, donning breathing apparatus and detection equipment. Set up and removal
of decon center, detection equipment, recovery and identification of material. Disposal
and environment clean up. Includes above in addition to any disposal fees of material
and contaminated equipment and material used at scene.
Billed at $2,000 plus $50 per hour per rescue person, plus $100 per hour per
HAZMAT team member.
level 4
Itemized Response: You have the option to bill each incident as an independent event
with custom mitigation rates, for each incident using, itemized rates deemed usual,
customary, and reasonable (UCR). These incidents will be billed, itemized, per trained
rescue person, plus rescue products used.
BACK COUNTRY OR SPECIAL RESCUE
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Itemized Response: each incident will be billed with custom mitigation rates deemed
usual, customary and reasonable (UCR). These incidents will be billed, itemized per
apparatus per hour, per trained rescue person per hour, plus rescue products used.
Minimum billed $400 for the first response vehicle plus $50 per rescue person.
Additional rates of $400 per hour per response vehicle and $50 per hour per
rescue person.
CHIEF RESPONSE
This includes the set-up of Command, and providing direction of the incident. This could
include operations, safety, and administration of the incident.
Billed at $250 per hour.
MISCELLANEOUS
Engine billed at $400 per hour.
Truck billed at $500 per hour.
Miscellaneous equipment billed at $300.
MITIGATION RATE NOTES
The mitigation rates above are average "billing levels", and are typical for the incident
responses listed, however, when a claim is submitted, it will be itemized and based on
the actual services provided.
These average mitigation rates were determined by itemizing costs for a typical run
(from the time a fire apparatus leaves the station until it returns to the station) and are
based on the actual costs, using amortized schedules for apparatus (including useful
life, equipment, repairs, and maintenance) and labor rates (an average department's
"actual personnel expense" and not just a firefighter's basic wage). The actual
personnel expense includes costs such as wages, retirement, benefits, workers comp,
insurance, etc.
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