AGENDA #4b
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Daniel Jones, Fire Chief
SUBJECT: Fire Department Services and Fees for Services
DATE: April 20, 2005
This budget working paper describes the fees charged for fire inspections, permits, plan reviews and related services. It also discusses operational services that in some instances result in charges to a business owner to recoup costs of services provided during special circumstances.
BACKGROUND
Currently, the fire department has a fee schedule that lists all activities requiring a permit and fees are based on the type of activity for which a permit is requested. For example, a fireworks display has more potential for creating fire protection problems than the erection of a tent so a fireworks display permit ($100.00) is double that of a tent permit ($50.00).
Similarly, our inspection fees are based on the type of inspection that is being conducted. A certificate of occupancy inspection carries no charge for the initial inspection but if a re-inspection is required there is a re-inspection fee ($50.00). In addition, as a result of the recently adopted changes regarding the annual occupancy inspection program, a fine is levied on those occupancies that fail to comply when life safety hazards are discovered during an inspection.
During the past two years the department has also adopted the practice of invoicing property owners or contractors for unusual services that place a high demand on the department in terms of labor and equipment.
DISCUSSION
In an effort to reflect the seriousness of life safety violations, the Council during the 04/05 budget process approved an increase in the fine that is charged when business owners fail to comply with fire code. The fine was increased from $25.00 to $100.00 for all re-inspections that are required to ensure correction of designated life safety violations. We do not believe an increase in the fine is warranted at this time.
Although we review plans for building construction, installation of fire warning and fire suppression equipment as well as private and public construction projects that must be approved through the zoning compliance or special use processes, the fire department does not apply any additional charges for plan reviews.
Even though we do not charge a plan review fee for review of fire warning and fire suppression equipment installations, there is a permit fee of $100.00 for each application. We believe the amount of the permit fee is sufficient to recover the costs of staff time required for review of these plans.
Private and public building construction projects that require review through zoning compliance or special use project processes remit payment to the Planning Department. The fees are calculated to recover the costs of staff time for all Town personnel, including Fire Department personnel that are involved in these review processes.
A revised fee schedule for all activities that require a permit was adopted by Council during the last budget process. Since several new permit fees were established and some existing permit fees were increased, we believe the current fee schedule is adequate.
Over the past two years the department has also initiated the practice of invoicing property owners or contractors for unusual or special services that require additional operational services or place a serious demand on the department for labor and equipment. The most recent example involves the water main break that occurred at UNC Hospitals a couple of weeks ago. A private contractor, while conducting an excavation project, hit a major water main on the complex that affected water supply in several of the buildings. The department placed personnel and apparatus on site, stretched hose lines and established strategies to provide adequate water supply in the event a fire occurred. Fire units and personnel remained on site until repairs to the water main were completed. The contractor’s insurance carrier was billed for the costs involved which totaled $5,495.00.
We are also billing for intentionally set fires that are the result of celebrations when responsible parties can be identified. These incidents typically follow Duke vs. Carolina basketball games, ACC tournament games and NCAA games. These usually occur at fraternity houses and we have instituted the practice of invoicing the house when we respond to extinguish a bonfire.
Another example of invoicing for services relates to fireworks displays. The number of organizations that wish to have regular fireworks displays have increased over the last few years. In order for the organization to “guarantee” the availability of required staffing and apparatus for the fireworks display, the organization must agree to reimburse the Town for salaries when personnel are hired back to work these events and the charges include apparatus expenses. Since fire protection must be provided for a fireworks display, most of these organizations are willing to reimburse the expenses of hiring back personnel and apparatus use rather than take chances of having the display postponed or cancelled in the event an on-duty unit has to leave.
The examples provided are service driven and it is impossible to determine how often these events may occur. As a result, revenue predictions for these types of incidents cannot be calculated with any certainty, especially since the department is only trying to recover the costs of services provided.