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HomeMy WebLinkAbout2010/06/15 Item 13 CITY COUNCIL AGENDA STATEMENT ~\ft::.. CITY OF .~ (HULA VISTA JUNE 15,2010 Item~ 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 SCHEDULE. FIRE CHIEF 091J CITY MANAGE 4/5THS VOTE: YES NOX SUMMARY In order to respond to the increased costs of responding to vehicle accidents where hazardous fluids are released and mitigation/clean-up 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. RECOMMENDATION Council adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION Not Applicable. 13-1 06/15/2010, Item /2 Page 2 DISCUSSION The Chula Vista Fire Department rcsponds to approximately 420 traffic accidents each year in which hazardous liquids are releascd from the vehicles involved in the accident (including vehicle fires). Because of much more stringent environmental protection requiremcnts, the department is seeking to recover costs associated with this increased level of service from the drivcr 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 Departmcnts 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 liablc for reimbursemcnt to the agcncy for the cost incurred. For purposes of this proposed program, this includes vehicle fircs and/or vehicle accidents where hazardous t1uids such as oil, gasoline, antifreeze, brake t1uid 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 ct seq., allows fire departments to recover costs incurred responding to motor vehicle accidents; including response equipment and staffing to securc, cleanup and/or dispose of any hazardous waste. (See Attachment "'A" for specific legal authority) The fces 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 th~ various responses needed to mitigatc the accident/fire. These fees are based upon the costs involved in responding to thesc incidents. These fees include the costs for responding l1re personnel, equipment usage (fucl, 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 l1re captain) responding to a basic accident with fluid spills cxceeds $600 per call (depending upon the nature of the response). The national average for this type ofresponsc is approximately $435. Expcrience 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 collcctions, 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 Firc 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. Thcy offer the dcpartment the most stream- lined collection process, and have developcd 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 statT to accomplish. It is estimated that the cost savings to the City would exceed $100,000 per year bascd upon two full-time employees 13-2 06!l5/2010, Item /3 Page 3 engaged in administering this program. All contract costs for this program are taken directly only 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 tire agencies/Cities throughout California and the rest of the United States who contract with Fire Recovery USA, LLC for cost rccovery services. DECISION MAKER CONFLICT StatI has reviewed the decision contemplated by this action and has dctermincd that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704,2(a)(l) 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 20 II Fire Department budget. The value of this contract is approximately $17,000 each year (contract fees deducted from 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%. I I' 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 l\1anager, Police/Fire Department 13-3 06/15/2010, Item ~~ Page 4 (This space intentionally blank) 13-4 06/15/2010, Item 13 Page 5 ATTACHMENT "A" APPLICABLE CALIFORNIA CODE SECTIONS California Health and Safety Code 13009,6, (a) (I) 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 rg are a charge against any person whosc negligence causes the incident, if either of the following occurs: (A) Evacuation beyond the property where the incident originates is necessary to prevent loss of life 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 0 f origin, (2) Expenses reimbursable to a public agency under this section are a debt of the person liable therefor, and shall be cOhereforele 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 (I) 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, 13-5 06/15/2010, Item /3 Page 6 A TT ACHMENT "A" (Continued) (d) As used in this section, "mitigate" includes actions by a public 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 willtully 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 tor 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 willfidlv or negligently causes or permits the contents of a vehicle to be deposited upon a street or highway. ur its appurtenances. is liable for the reasonable costs of removing those contents fi'om the street or highway or its appurtenances1 (d) The liability stated in lhis section alsu applies 10 an owner of a vehicle operated wilh lhe owner's permission. as provided in Arlicle 2 (commencing with Seclion 17150), and includes liability for the reasonable cost of necessGlY safety precaulions, including. but not limited to. warning traffic. the removal of debris resulting from accidents, the removal of any materials. or providing detouri. ( e) The Department of Transportation and local authorities, with respect to highways under their respective jurisdictions, may present claims tor liability under this section, bring actions for recovery thereon, and settle and compromise, in their discretion, claims arising under this section. (D lfthe Department of Transportation or a local authority provides services on a highway outside its jurisdiction, at the request o[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 2 Emphasis added 13-6 06/15/20 I 0, Item /3 Page 7 ~ ATTACHMENT "B" FIRE RECOVERY USA RECOMMENDED FEE SCHEDULE MOTOR VEHICLE ACCIDENTS Level I - $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 Levell 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, lire 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 1 and 2 servIces as well as extrication (heavy rescue tools, ropes, airbags, cribbing, etc.). Level 5 - $2.1 00.00 Includes levels 1,2 and 3 services as well as air care (multi- engine company rcsponse, mutual aid, helicopter, etc). 13-7 ATTACHMENT C MASTER FEE SCHEDULE Chapter 15 - Fire Fees General Fire Fees City of Chula Vista Fire Department 276 Fourth Avenue, Chula Vista, CA 91910 ~\f? ~ .-.- -- -- -- C1lY OF CHUlA VISTA iFiRE'cbi:fE-:"'OPERAfiONAI1!PERMITS~.":~~ ':~;i"~",..,":.,,,_..,..._,::"';:1,,,,:";""',,,,'''it.....,,,",,..f,.........,.,.,""..'....".,.... . ......,"''".,...._'." >....-, The City of Chula Vista has implemented a permit fee schedule. The fees as set forth 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.) 1. Annual renewable fire code inspection permits Aerosol products ............................................... $121 Aviation faci I ities ............................................... $198 Battery systems'............................................... $105 Cellulose nitrate film.........................................$105 Combustible dust production...........................$105 Combustible fiber storage................................$105 Combustible mise storage................................$165 Compressed gases, annual or occurrence......$121 Cryogens............................................................ $116 Dry cleaning operations.................................... $105 Explosives/blasting agents ..............................$105 Fi reworks........... .......................................... ...... $143 Fruit and crop ripening .....................................$143 Fumigation/thermal insecticide fogging..........$198 Hazardous materials use and storage.............$198 Hazardous Production Materials Facilities......$198 Heli port .............................................................. $105 High piled combustible storage .......................$165 Hot work operations, inc. cutting & welding....$105 I ndustri a I ovens........................... ...................... $105 Liquefied petroleum gases...............................$105 Liquid/gas fuelled vehicles/equipment, in assembly buildings ...................................$105 Lumber yards/woodworking plants .................$165 M agnesi u m........ ....................... ................... ...... $105 Mall, open or covered .......................................$198 Open bu rn i ng..................................................... $105 Organic coatings ...............................................$105 Place of assembly .............................................$105 Pyroxyl i n plasti cs. .............................................. $121 Repair garages/motor fuel dispensing............$116 Refrigeration equipment ..................................$105 Spraying or dipping/flammable finishes .........$165 Storage of flammable/combustible Iiquids.....$105 Storage of scrap tires/tire byproducts.............$116 Tire rebuilding plants ........................................$198 Waste Ha nd ling................................................. $105 General Use Permit...........................................$105 General use permit: Shall be required for any activity or operation not specifically described above 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. 2. Occurrence permits .. temporary fire code inspectjon permits Amusement buildings .......................................$105 Christmas tree lots.............................................. $83 Compressed gases ...........................................$121 Exhibits and trade shows .................................$198 Explosives or blasting agents...........................$105 Fireworks, per occurrence or barge.................$143 Liquefied petroleum gases...............................$105 Liquid/gas fuelled vehicles/equipment, in assernbly buildings ...................................$105 Mall, open or covered .......................................$198 Open bu rn i ng................... ....................... ........... $105 Outdoor carnival or fairs...................................$165 Place of assembly.............................................$105 Storage tanks, flammable or combustible liquids, installation, per tank........................$165 Storage tanks, flammable or combustible liquids, removal, per tank.............................$165 Tents, canopies & temporary membrane structures, per occurrence or tenVcanopy .$105 Residential Licensed Care Pre-inspection, 1 .. 25 residents ....................... $50 Pre-inspection, > 25 residents.........................$100 Final clearance inspection, 1 .. 25 residents ... $50 Final clearance inspection, > residents ..........$100 General Use Certificate.....................................$105 General use certificate: 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 currently have a fee listed herein. 1 To install or operate stationary lead-acid battery systems having a liquid capacity of more than 100 gallons. City of Chula Vista www.chulavistaca.gov 619.691.5029 13-8 Muy June 2010 MASTER FEE SCHEDULE IIlI FEE BULLETIN 15-100 Page 2 of4 3. Other Inspection/Permit Fees Federal. State or other Government Mencv Annual or per occurrence B, E & R occupancies........................................$105 1-1 occupancies, residential care facilities ......$116 12 occupancies, hospitals................................$165 Hie:h-rise Buildine: lnsoections Annual, base fee ...............................................$143 Annual, additional fee per floor.......................... $11 Re-lnso8ction Fees Per occurrence .................................................. $105 Re-inspection fee would be assessed upon the 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. 'FIRESAfEtv 'cONsfRUttIOi,P~:.T'i..'. . . l.. ~ "...... A' >>.i._,,,,,,,,,,'...,'_:..--~,,,,., ;t"..."", ~'t"'L"""""" .,'"._. ~;:,;:~':' :....,,':t-?,~,:', 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 below. This fee schedule shall adjust for annual San Diego Consumer Price Index for All Urban Consumers changes, not to exceed full cost recovery. 1. Fire Sprinkler System NFPA 13 (per system/riser - first floor/level) 1 - 20 sprinklers ..............................................$622 21.. 100 sprinklers...................................... $1,015 101 - 200 sprinklers ................................... $1,343 201 - 350 sprinklers ................................... $1,736 351 - 600 sprinklers ................................... $2,260 Add'l group of 100 sprinklers, or fraction .......$131 2. Fire Sprinkler System - NFPA 13 (each additional typical floor/level) 1 - 20 sprinklers ..............................................$164 21- 100 sprinklers..........................................$328 101 - 200 sprinklers .......................................$393 201 - 350 sprinklers .......................................$524 351 - 600 sprinklers .......................................$721 Add'l group of 100 sprinklers, or fraction .......$131 3. Additional Fire Sprinkler Review/Inspection Items NFPA 13 Additional hydraulically calculated areas, per req ui red ca Ic....................... ........................... $131 Pre action system .............................................$262 Antifreeze system.............................................. $ 262 Underground work, per 100 linear feet, or fraction thereof..................... ......................... $131 System 4. Fire Sprinkler Tenant Improvement (per line item) Sorinkler tenant imorovement Base fee per suite, first 50 sprinklers .............$360 Additional group of 50 sprinklers, or fraction ..' $66 Tenant imorovement with hvdraulic calculation First calculated area .........................................$262 Additional calculated areas, per calc...............$131 Pre-action system ............................................. $262 Antifreeze system.... .......................................... $ 262 In-rack system, with calculations .....................$393 5. Residential Fire Sprinkler Systems - NFPA 13R (per system/riser) 1-50 sprinklers.................................................$557 51 - 150 sprinkiers..........................................$688 151 - 250 sprinklers .......................................$884 251 - 350 sprinklers ................................... $1,081 Per additional group of 100 sprinklers, or fraction thereof................................................ $98 6. Residential Fire Sprinkler Systems - NFPA 13R (each additional typical system layout) 1.. 50 sprinklers ..............................................$360 51 - 150 sprinklers..........................................$426 151 - 250 sprinklers .......................................$524 251 - 350 sprinklers .......................................$622 Per additional group of 100 sprinklers, or fraction thereof................................................ $95 7. Additional Residential Fire Sprinkler System Review/Inspection Items NFPA 13R Additional hydraulically calculated areas, per required calc............ ................................. ..... $ ~31 Underground work, per 100 linear feet or fraction thereof......... ............ ................ ......... $131 City of Chula Vista 6~9.69~.5029 www.chulavistaca.gov 13-9 May Il1illL2010 MASTER FEE SCHEDULE IlOl FEE BULLETIN 15-100 Page 3 of 4 8. Dwelling Fire Sprinkler Systems.. NFPA 13D 1.. 50 sprinklers ..............................................$459 Per additional group of 50 sprinklers, or fraction thereof............................................... $66 Additional hydraulically calculated areas, per req u i red calc........ .......................................... $131 Residential fire pump .......................................$262 Per additional NFPA 13D system with the same exact structural footprint/layout .50% model unit 9. Fire Pumps.. NFPA 20, per line item Base fee, fire pump with tank.~.................... $2,162 Base fee. fire pump without tank................. $1,767 Pressure maintenance pump...........................$917 10. Fire Service Utilities, per line item Base fee, inspection only .................................$917 Per additional 100 linear feet, or fraction.......$131 11. Fire Alarm Systems.. NFPA 72, per line item Fire alarm system, base fee per system..........$557 Per additional group of 25 devices, or fraction. $66 Per additional sub, booster panel & amplifier $131 Floors below grade, pre floor/level ..................$262 Floors 2 thru 6, per floor/level.........................$262 Floors 7 above, per floor/level.........................$393 12. Kitchen Fire Suppression Systems, per line item Kitchen fire suppression system, base fee .....$393 Per additional group of 10 nozzles, or fraction. $66 13. Standpipe Systems, per line item Base fee ............................................................$688 Per additional floor/level.................................... $66 Per pressure regulating valve/device................ $66 14. Smoke Management Systems, per line item Base fee .............................................................. $66 Per 1f4 hour of meetings, plan reviews, inspections, etc. to be performed, or fraction thereof ....... $33 15. Special Fire Suppression Systems, per line item Base fee per system .........................................$524 Clean Agent System ..........................................$262 Water mist or dry chemical...............................$131 16. Plan Re-submittals, per line item Plan re submittals.............................................$197 Per additional1f4 hour of work performed, or fraction thereof................................................ $33 17. Technical Reports, per line item Technical reports, base fee ................................ $66 Water supply analysis.......................................$524 Fi re code........................ ........ ............................ $393 Alternate means & materials, performance based design, not submitted to Dev Svcs .......... $1,310 Misc Technical reports, per hour ..................... $131 18. F.S.E Inspections, per line item Fai led/Re-inspections............ ........................... $ 2 62 Overtime inspections, 2 hour minimum ..........$296 Overtime inspections, each additional1f4 hr ..... $37 Temporary certificate of occupancy.................$197 19. CVFD Fire & Life Safety Contractor License, per line item Per license, per calendar year..........................$131 Per license, renewal............................................ $66 20. Other Activities, per line item Other activities, not specifically listed herein, per hour, one hour minimum ..............................$131 Other activities, each additional1f4 hour ........... $33 Partial work fee, design only or Installation only...................... 50% of total permit Accelerated plan review. the greater of.... actual OT or ................................................ 50% of total permit 21. Penalty Fees, per line item Permitted work performed and not witnessed/ Inspected by AHJ ...................... 50% of permit fee Work performed without a construction 100% of City of Chula Vista 619.691.5029 www.chulavistaca.gov 13-10 May June, 2010 MASTER FEE SCHEDULE iii FEE BULLETIN 15-100 Page 4 of 4 MOTC)'R.";VEHfcl'E":'.- ACClbtt;fT~;~COSt: l~~g'~Y~~'~2S~;f~~~.~ ::~,dh~b~~ii~~,,:t~~;~;~s~~;: L__Jcevell".RespqJ.l;?~~, Scene scfet'v and invcstiaqtiof) finc/udinq trf~~fij; control. Dotient contact Gnd h(J.zard control), Fee Del' illcideflt~. ....................................$435 2~evel 2 8.:::$oonse {nchicles Levci L services, us If/eft as cleal1-uo wld mOLerial used (soruents u'.>t'd ha7ordous clCarH{O Clnd f:H~iJOsa{). Fee [)QLifll.,id.::'nt ..$495 3. Level 3 Re:StJOI1SR tncludc':L.5..[.ene sQ!f:};Y"",J[UL2!J2Pley;ion, breothing.JJJ.L rescue tools hand tools hose, fir) u~oQm stru(tllr~ orotectiOn..<-C1nd..s:/eCln-uD of ac/,so/me or othef vehicle jjyjt1S that are soil/ed as Cl rcsu!l of the accident/fire. Fee oer incident. ..........$605 4. L€'vel 4 R('stlnn~;e Includes Levell iJ.nd 2 services, as Vv~f'J1JJS f'Xi.ricoUon (heovv rescue tools roDes' oirbogsJribbino etc 1. Fee pi;:~Li.n.GLg!;l:nt~ .....,................,. ----.----,,-----. ................ $l,,,.QQ 5. Level 5 GesDon$fl lncJ udes LeveU.2...11U.d....3""5ervice\",,o:; .Y'!_.~L'- n.5_4.!LS;grg (rnulti-enainp cornf2QlJ.J~~l)Qn5e. mutual aicj-l. Fe!;:': Der incident .".n.. ... $" 100 City of Chula Vista www.chulavistaca.gov 619.691.5029 13-11 ATTACHMENT "D" LIST OF AGENCIES WHO CONTRACT WITH FIRE RECOVERY USA, LLC. California Accounts City of Pinole 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 Fire District City of Roseville Fire Department Tuolumne Fire District North County Fire Protection District South Placer Fire Protection District Oakdalc Rural Fire Protection District City of Hemet Fire Department City of Woodland Fire Department Meridian Fire Protection District City of Petaluma 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 (ineluding Calitornia). 13-12 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 ------~~:? ~ / ~ .'T"""'\",~/-7L/7'-7 C~_ ~~~- vL. . Bart C. Miesfeld City Attorney Dated: G - ? _. / () SERVICE AGREEMENT BETWEEN THE FIRE RECOVERY USA, LLC AND CHULA VISTA FIRE DEPARTMENT 13-13 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 comection 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 ENGAGEMENT 1.1. Engagement. Fire Department hereby engages Company to provide the Company Services described in Article 4 herein, and Fire 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. Reoresentations and Warranties of Comoanv. 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 of California. 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 13-14 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. Indeoendent 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 Emplovees 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 advice or direction of Fire Department. 3.5. Ownership Interest. Department. Company will have no ownership interest III Fire 3.6. No Benefit Contributions. Company shall have no obligation under this Agreement to compensate or pay applicable taxes or provide employee benefits of any kind to any person employed or retained by Fire Department. 3.7. Attornev-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 13-15 ARTICLE 4 GENERAL RESPONSIBILITIES OF COMPANY 4.1. Minimum Amount of Service. Company agrees to devote as much time and attention to the performance 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 perform 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, perform 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 Performing Work. Company may perform 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 perform 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 harmless 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 Company Services. All Company Services provided pursuant to this Agreement will be provided in accordance with the terms, 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 13-16 ARTICLE 6 OBLIGATIONS OF FIRE DEPARTMENT 6.1. Coooeration of Fire Department. The Fire Department agrees to comply with all reasonable requests of Company and provide access to all 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 Agreemcnt may be assigned by Fire Department without the prior written consent of Company, which consent shall not be unreasonably withheld. ARTICLE 7 FIRE DEPARTMENT 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 FireDepartment'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 13-17 (al Company's failure to complete the services specified in 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 INDEMJ'IIFICATlON AND INSURANCE REQUIREMENTS 10.1. Indemnification bv Fire Department. 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 Companv. 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. J 0.3 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 13-18 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 non owned 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 Assigns. 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 6 13-19 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. 1 l.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, retnrn 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. Uto 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. Counterparts. 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. 7 13-20 ] 1.8. 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 bc 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 (jurisdictional, venue and inconvenient forum objections to which are hereby waived by both parties), including recovery of fees and costs. (b) This arbitration clause shall survive the termination of this Agreement, any Transaction Document and any agreement contemplated hereby or thereby. 11.9. Waiver of Jurv Trial: Exemplarv Damages. THE PARTIES HERETO HEREBY WANE THEIR RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING UNDER TIDS AGREEMENT OR ANY TRANSACTION DOCUMENT. NO PARTY SHALL BE AWARDED PUNITIVE OR OTHER EXEMPLARY DAMAGES RESPECTING ANY DISPUTE ARISING UNDER TIDS AGREEMENT OR ANY TRANSACTION DOCUMENT CONTEMPLATED HEREBY. Signatures on following page. 8 13-21 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above. COMPANY: FIRE RECOVERY USA, LLC. a California limited liability company By: /ftfLg Name: Michael Rivera Title: President FIRE DEPARTMENT: Chula Vista Fire Department By: Name: Title: 9 13-22 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 "biliing 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. 1 13-23 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). 2 13-24 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 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. 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 3 13-25 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. 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. 4 13-26 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 D.A.R.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 5 13-27 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 camp, insurance, etc. 6 13-28 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. (;;~~f\ David Hanneman Fire Chief Approved as to form by ~~~~, Bart Miesfeld D 'i {V 7 V( City Attorney H:shared/attorney/Fire - Fire Recovery USA 13-29 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) 13-30 Page 2, Item: Meeting Date: 06/15/2010 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 Frell uencv 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 $P1 Annually/Each Occurrence Cryogens $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 Hicrh-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 ALLATlON 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 Permit $105 Annually 13-31 Page 3, Item: Meeting Date: 06/15/2010 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 inspection of any business that does not currently have a fee listing herein. . Magnesium $105 Annually Fumigation or Thermal1nsecticide Fogging $198 Annually Lumber Yards and Woodworking Plants $165 Annually Mall/Open and Covered $198 Annually ]VIall/Open and Covered Comments: To operate a structure(s) as an open or covered mall. Battery 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 Annually 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 ih $105 Annually/Each Occurrence Assembly Buildings Open Burning $105 Each Occurrence Organic Coatings $105 Annually Pyroxylin Plastics $121 Annually Refrigeration Equipment $105 Annually Heliport $105 Annually Storage of ScraD Tires and Tire Byoroducts $116 Annually Tire Rebuilding Plants $198 Annually Activity Fee Freauenev Applieabilitv/Comments Federal, State, or $105 Annually/Ea B, E, and R Occupancies other Government ch 13-32 Page 4, Item: Meeting Date: 06/15/2010 _i\gencies Occurrence $116 1- 1 Occupancies - Residential care facilities, residential care facilities for the elderly, etc, $165 1-') Occupancies - hospitals. High-rise $143 l\nnuall y 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 PERNfITS 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 Em!ineerinQ Activities # Fire Sprinkler System - NFP A 13 [per system/riser - first floor/level] Fee 1.l I - 20 Sprinklers r per system/riser 1 $622.00 1.2 21 -100 Sprinklers [per system/riserl $1,015.00 1.3 101 - 200 Sprinklers [per svstem/riser] $1,343.00 1.4 201 - 350 Sprinklers [per system/riser] $1,736.00 1.5 351 - 600 Sprinklers [per system/riser] $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 13-33 Page 5, Item: Meeting Date: 06/15/2010 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 ReviewlInspection Items NFP A 13 Fee 1.13 Additional hydraulically calculated areas [per required calc, base plan review, includes 1 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 - NFP A 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 13-34 Page 6, Item; Meeting Date: 06/15/2010 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 - NFP A 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. typical system floorplanllayout] $524.00 3.9 251-350 Sprinklers [each add. typical system tloorplan11ayout) $622.00 3.10 Per additional group of 100 sprinklers [or fraction thereof] $95.00 # Additional Residential Fire Sprinkler Sys. ReviewlInspection Items - NFP A 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 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 I 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 -NFPA 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 13-35 Page 7, Item: Meeting Date: 06/15/2010 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 1, II, Ill, or combination system on the rust 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 v.; - hour of meetings, plan reviews, inspections, etc. performed [or fraction thereof] $33.00 # Special Fire Suppression Systems [per line item] Fee 13-36 Page 8, Item: Meeting Date: 06/15/2010 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, Inergen, C02, etc.] $262.00 11.3 Water Mist or Dry Chemical $131.00 # Plan Rcsubmittals [pcr line item] Fee 12.1 Plan Resubmittals [minimum fee] $197.00 12.2 Per additional 114 -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 1 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 13-37 Page 9, Item: Meeting Date: 06/15/2010 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. a.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 Descriotion Fee Level 1 Response Scene Safetv and Investigation (including tramc control. $435.00 Datient contact. hazard control) Level 2 Response Includes Levell services as well as clean-up and $495.00 material used (Sorbents used. hazardous clean-up and disDosalt 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 spilled as a result ofthe accident/fire. Level 4 Response Includes Level 1 and 2 services as well as extrication $1.800.00 (heavv rescue tools. ropes. airbags. cribbing, etc.t 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: ~~ Bart Miesfeld City Attorney - 7'0 ~!/f ,P..-'?t; David Hanneman Fire Chief 13-38 Page 10, Item: Meeting Date: 06/15/2010 13-39 \ " -:ff13 ~ (P/IS/' 0 Hev-rex-OI.. City of Chula Vista Fire Department Cost Recovery Proposal Fact Sheet . This is not an additional tax, this is a hazard mitigation fee tied to the removal and mitigation of oils and fluids that are spilled on our city streets and roadways after a motor vehicle accident. . These fluids if not ~leaned-up and removed become hazardous toxic waste that contaminate our streams and costal waterways. . Fees charged to the responsible parties insurance company are based on cost to mitigate the hazard created by the at fault driver. . Fees are preset standard amounts used across the State by other Fire Departments and are tied to the level of response and clean-up delivered. . Health and Safety Code, Section 13000 and California Vehicle Code, Section 17300 provide background information and clarification on what action Fire Departments are legally responsible for and are allowed to bill for under State Law. . City staff is seeking approval to hire a billing company to facilitate the collection of these fees as allowable by State Law . These fees have always been billable however the City has never implemented a program to pursue this path. As we continue to face financial threats to our budget, we are forced to access all means of financing in order to maintain our public safety services. 06/15/20l0.ltem /3 Page 7 . ATTACHMENT "B" FIRE RECOVERY USA RECOMMENDED FEE SCHEDULE MOTOR VEHICLE ACCIDENTS Level I - $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 Levell 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 arc spilled as a result of the accident/tire. Level 4 - S 1.800.00 Includes Level 1 and 2 services as well as extrication (heavy rescue tools, ropes, airbags, cribbing, etc.). Level 5 - $2.100.00 Includes levels 1,2 and 3 services as well as air care (multi- engine company response, mutual aid, helicopter, etc). ev-in-Fact. Fire Department appoints t for the following purposes: Billing and Collections. To biB 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 dOT ement. To take possession of and endorse in Fire Department's name' no ecks, money orders, and any other instruments received as C os.