HomeMy WebLinkAbout11/06/2012 06 Fire Code Inspection Fee Program ■
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: November 6, 2012
- I - ••
ITEM TITLE: Fire Code Inspection Fee Program.
SUBMITTED BY: David Willson, Fire Chief
CONTACT PERSON /TELEPHONE: Chief Willson, 575 -6165
SUMMARY EXPLANATION:
The Annual Fire Inspection program was eliminated from the budget in 2012. The FY 2013
proposal is to reestablish annual fire safety inspections at a cost of $175,911 30 annually under the
direction of the Fire Department.
The council has also discussed a fee to offset the direct cost of performing the inspections. After
much discussion with all parties involved, it seems most prudent and cost effective to have the
business license cost increased by the needed amount rather than add the manpower intensive
step of billing and receiving payment for each business.
The attached memo outlines two funding options as well as explanations.
Resolution Ordinance Other
(specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding
Source: Phone:
APPROVED FOR
SUBMITTAL: EL lr• City Manager
STAFF RECOMMENDATION:
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
Fire Inspection Program /Fee Proposal
AFire dministration Suppression
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Fire Investigation � 401 North Front Street, Yakima, WA 98901 (509) 575 -6060
& Education Fax (509) 576 -6356
Training , 'ieE Utei' www.yakimafire.com
Communications Y
Date: October 29, 2012
To: Honorable Mayor, Members of City Council
Tony O'Rourke, City Manager
From: Dave Willson, Fire Chief
Subject: Fire Inspection Program Fee Collection Proposal
•
Objective:
Provide a fee schedule and collection process that is minimal and equitable to business
owners and minimal in manpower and cost to the City.
Primary Points of Consideration:
• The Council has identified the need to re- institute an annual fire inspection
• program under the management of the Fire Department. This program will
provide required annual fire safety inspections only and not code enforcement
practices. The program will use two full time inspectors under the same Civil
Service Class Code and Pay Code as the previous inspectors were under.
• The cost of running this program inclusive of all salaries, benefits, equipment,
fuel, and training is $175,911.30 per year. This amount is included in the
proposed 2013 budget and does not include increases in fuel, wage, and benefit
costs for years after that.
• Required testing of fire related systems such as automatic sprinklers, alarm
systems, hood suppression systems, and extinguishers will remain the obligation
of the business owner and performed by a certified testing firm.
Methods of fee collection:
To minimize the cost of ,this program, a foremost consideration is to design it with as
little human involvement as possible. We are only counting on using two inspectors and
making all other record keeping and billing a non human process. With this in mind, the
fee collection process must operate without paper, stamps, envelopes, money and
check handling, or manual billing data entry.
A fee schedule was calculated and designed for each occupancy level, using a two part
formula. The plan was to have the fee amount auto populate at the codes department
so the fee could be charged when the business license was purchased each year. After
meeting with the codes department representatives, legal and financial staff, it was
• found that the data cannot be uploaded into Paladin system without a software upgrade
if there is one.
After much discussion, it was realized that the most expedient and efficient way to
collect the fee was to increase the business license by an amount equal to what the
cost would be to the business owner. A preliminary determination by the legal
department shows that this "regulatory fee" to be an acceptable practice.
OPTION #1
Increase business license fee by a percentage that will closely mirror the fee collection
formula. The increase would range from $15 to $245.
Strengths:
• There will be no added man -hours added to the process of annual fire inspectors
for fee collection.
• Fee collection rates will be commensurate to size of business.
• No additional.
• No additional man -hours for finance department billing processes.
• No delinquent fee collection process for city or business.
Weakness'
• Non profit businesses will not be funding inspection program (legal dept. is
researching possibility of adding a fee structure for non profits).
OPTION #2
Impose fee -for- service billing system. Each business would be charged a fee after each
inspection is performed. Fee is based on formula.
Strengths:
• Each business would pay a more exact amount for service including those non
profits not protected by state mandate.
Weaknesses:
• Require billing, collecting, depositing actions by a person in fire and /or finance
division.
• The City would be placed in position to impose non - payment penalties on
businesses.
• Additional book keeping system would have to be added for separate fee
collection system. •
RECOMMENDATION FROM STAFF
Staff recommends Option #1 for fee collection system to fund annual fire inspection
program.