STATEMENT OF ISSUE
Florida Statutes, Section 166.201, provides that a “ municipality may raise, by taxation and licenses authorized by constitution or general law, or by user charges or fees authorized by ordinance, amounts of money which are necessary for the conduct of municipal government and may enforce their receipt and collection in the manner prescribed by ordinance not inconsistent with law.”

This statute allows the City to adopt into ordinance a fee to recover some funding for services currently paid for through the General Fund Transfer. The Fire Service Fee generates funding that allows the Fire Department to remain in a “ready to respond” mode for fixed property uses. However, the Fire Department routinely responds to vehicle accidents and vehicle fires, which are not included in Fire Service Fee calculations. Fire Department services are required on approximately 10% of all reported vehicle accidents within the city limits and 100% of reported vehicle fires. This ordinance will allow recovery of some of the expenses associated with those responses.

In anticipation of this project and collection of funds, the Fire Department’s revenue projections were increased by $550,000 in FY2009. The City Attorney’s Office and the Department of Management and Administration have reviewed and concur with this item.

RECOMMENDED ACTION
Option 1. Introduce Ordinance No. 09-O-05 and set for public hearing on January 28, 2009.

FISCAL IMPACT
Forecasted revenues generated are approximately $550,000 annually.

Cindy Dick, Fire Chief, Tallahassee Fire Department

Anita Favors Thompson, City Manager

For information, please contact: Cindy Dick, Fire Chief, 891-6600 or Cassandra Jackson, 891-8554

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES

Florida Statutes, Section 166.201, provides that a “ municipality may raise, by taxation and licenses authorized by constitution or general law, or by user charges or fees authorized by ordinance, amounts of money which are necessary for the conduct of municipal government and may enforce their receipt and collection in the manner prescribed by ordinance not inconsistent with law.”

This statute allows the City to adopt into ordinance a fee to recover some funding for services currently paid for through the General Fund Transfer. The Fire Service Fee generates funding that allows the Fire Department to remain in a “ready to respond” mode for fixed property uses. However, the Fire Department routinely responds to vehicle accidents and vehicle fires, which are not included in Fire Service Fee calculations. Fire Department services are required on approximately 10% of all reported vehicle accidents within the city limits and 100% of reported vehicle fires. The Motor Vehicle Accident and Fire Response Fee Ordinance, hereinafter the Accident Response Ordinance, will allow recovery of some of these expenses. In anticipation of this project and collection of funds, the Fire Department’s revenue projections were increased by $550,000 in FY2009.

The Fire Services Fee, authorized by Section 8-65, General Code of Ordinances, covers costs associated with fixed property use and not vehicular crashes and fires. Motor Vehicle Recovery Fee programs, like the one currently proposed, were introduced into Florida fire departments a few years ago and are gaining momentum due to the current economic climate. The instant ordinance will allow recovery of a portion of the costs currently being funded by City taxpayers. Government Services Group, Inc., which specializes in government finance and taxation issues, and is under contract to provide updating of the Fire Service Fee, has advised the City Attorney’s Office that there is no conflict of interest in adoption of this Accident Response Ordinance because of the different underlying purposes of the ordinances.

The provisions of the proposed ordinance specifically provide as follows:

Section 8-68 states the purpose of the ordinance to require that users of fire emergency services, as a result of vehicular accidents, pay for maintenance and operating costs related to the incident.

Section 8-69 provides for the types of costs to be covered by the ordinance, i.e. labor, vehicle maintenance and supply and transportation costs necessary to mitigate the incident, and authorizes a Commission resolution specifying fees.

Section 8-70 authorizes the City Manager to invoice and collect the prescribed fees from the party receiving the services or their insurance carrier.

Section 8-71 provides for a designated trust account for fees collected pursuant to the ordinance.

Section 8-72 authorizes expenditures of funds from the designated account to be used only to defray motor vehicle accident fire rescue costs.

This ordinance is proposed for an April 1, 2009, effective date because of the time necessary to comply with the City’s competitive procurement policy. Should this ordinance be passed, it is the Fire Department’s intention to competitively bid the contract for invoicing and collection of the accident response fee.

Once a vendor has been selected, extensive research will be done to determine an appropriate fee schedule specific to Tallahassee Fire Department services. When complete, the proposed fee schedule will be brought back to the Commission for review and adoption by resolution. Several cities and counties in Florida have adopted similar ordinances, and fees typically range from $400 - $700 per fire unit response. Fees are based on the actual service provided; therefore, the severity of the crash and extent of rescue efforts required determine the fee for the specific incident. Fees are charged solely for the hazard mitigation, fire suppression and victim extrication services provided. Fees are not charged through this ordinance for the provision of any patient care provided by the Fire Department.

CHARITABLE CONTRIBUTIONS
N/A

OPTIONS

1. Introduce Ordinance No. 09-O-05 and set for public hearing on January 28, 2009.

Pros:
• Provides an additional and more equitable means for recovering costs associated with service provision.
• Reduces pressure on Deficiencies Fund.

Cons:
• Could result in public dissatisfaction as customers are not charged for such services today.
• Requires additional staff time and resources for program management and contract oversight.

2. Do not introduce Ordinance No. 09-O-05 and provide alternate direction.

Pros:
• Staff time allotted for program management will be available for alternate assignment.

Cons:
• Costs associated with services, which are not collected through the Fire Services Fee, will continue to require transfer from the Deficiencies Fund.

ATTACHMENTS/REFERENCES

1. Florida Statutes, Section 166.201
2. Proposed Ordinance No. 09-O-05