Title:
Consider and take action on Ordinance 2024-08 creating Article V, entitled "Mitigation Rates - for Emergency and Non-Emergency Services" of Chapter 46 of the Code of Ordinances of the City of League City to authorize mitigation rates for Fire Department Services - First Reading (Fire Chief)
Background:
Approval of this ordinance will authorize the City to assess fire mitigation fees for certain categories of emergency and non-emergency services.
The League City Fire Department (“Department”) provides emergency and non-emergency services in connection with motor vehicle incidents, hazardous material spill responses, and other emergency incidents. Emergency and non-emergency services response activity to incidents continues to increase each year, while environmental protection requirements involving equipment and training also create additional demands on all operational aspects of department services.
The City desires to implement a fair and equitable procedure by which to bill for mitigation rates and establish a collection system in accordance with applicable laws, regulations, and guidelines. Along those lines, the Department recommends amending the League City City Code for the purpose of adding authorization for a schedule of mitigation rates for fire department services.
Proposed Categories of Services Eligible for Billing:
• Motor Vehicle Accident Services
• Extrication Services
• Vehicle Fire Services
• Helicopter Landing Zone Preparation Services*
• Gas Leak Services
• Hazardous Materials Services*
• Fire Investigation Services*
• Residential Fires Services
• Commercial Fires Services*
• Elevator Rescue Services*
• Additional Apparatus/Personnel Requested On-Scene
• Specialized Equipment or Supplies
(*Services that may only be charged to Commercial customers, not residential customers)
Billing Procedures for Residents and Commercial Business
• The City will bill a resident’s insurance carrier directly.
o The City will not balance-bill resident, unless resident caused the incident with “knowing” or “intentional” behavior.
• The City will bill a commercial customer’s insurance carrier directly and may balance-bill.
o The City will not balance bill a League City business with less than 50 full-time employees.
• For Commercial Customers, Elevator fees will increase with subsequent calls for service.
• For Gas Leaks, the City will not bill the resident's insurance carrier unless the gas leak is the result of the resident's knowing or intentional behavior.
o The City will also not bill the resident for a contractor's negligence while doing work at the resident's house.
• The City will bill based on a one-hour minimum fee. Anything over one hour will be billed in fifteen-minute increments.
• The City will bill for the prices of any specialized apparatus and/or personnel.
Summary of Changes since last Draft
• Aircraft Accident Services, Water Incident Services, Special Rescues and Chief Responses were removed from the list of services eligible for billing.
• “Reckless” was removed from the exception that would allow the City to be able to balance-bill a residential customer. The City will only balance-bill ifn the resident knowingly or intentionally caused the underling event requiring fire services. The City Manager must provide notice to the City Council of billing for any knowing or intentional behavior.
• League City businesses with less than 50 full-time employees are exempted from balance-billing unless it can be shown that business knowingly or intentionally caused the underlying event requiring fire services.
• For Gas Leaks, the City will not bill the resident's insurance carrier unless the gas leak is the result of the resident's knowing or intentional behavior. The City will also not bill the resident for a contractor's negligence while doing work at the resident's house.
• City Staff will be required to provide an annual report to the City Council regarding the fire mitigation fee program that includes the number and type of incidents, total fees billed and collected by incident type and recommendations of any requested changes to this ordinance and/or the fire mitigation fee schedule.
Future Companion Agenda Items:
If approved, Staff will bring back two companion agenda items: 1) a resolution that will authorize a schedule of fees for specific services under these categories of eligible billing (currently attached to this agenda item) and 2) a resolution authorizing an agreement for billing services related to the collection of the approved fees.
Projected Revenue:
We estimate these fees could generate approximately $350,000 annually at a 65% collection rate. The funds will be deposited in a fire directorate fund to help pay for new or expanded programs.
Attachments:
1. Ordinance 2024-08
2. Fire Mitigation Presentation
3. Fee Schedule
4. Redline changes since last Draft
FUNDING
{x} NOT APPLICABLE
STRATEGIC PLANNING
{x} NOT APPLICABLE