Port considers charging for help from fire department

A proposal to bill insurance companies for services provided by the Port Washington Fire Department when responding to motor vehicle accidents and vehicle and structure fires is under consideration by the city’s Police and Fire Commission.

The commission in September heard a proposal by Justin Powell of Fire Recovery USA to bill for the services, a proposal he said could bring in about $35,000 annually.

Powell told the commission that this type of billing is becoming “somewhat of a norm in the fire department space” as communities grapple with tight budgets.

“Municipalities are searching for new ways to avoid increasing taxes and/or reducing levels of service,” he said, noting that significant costs are incurred in responding to accidents and fires.

The billing is especially tempting, Powell said, because “a good majority” of insurance policies will pay those costs.

“If you don’t bill them, the insurance company retains the money,” he said. “By not billing the insurance, you’re essentially paying for the services twice (in taxes for the services and the insurance premium).”

Powell said the program is relatively seamless, requiring the fire department to submit its normal incident reports to the company when billing is appropriate.

His company then works with the insurance company to determine the at-fault party and bills them.

If the insurance company doesn’t cover the claim, Powell said, the city may opt not to seek payment. Some communities decide not to go after residents for the funds in these cases but to seek the costs from nonresidents.

“That’s a policy decision on your part,” he said.

Powell said that Fire Recovery USA retains 22% of all costs recovered, adding that the firm has a collection rate of between 70% and 100%. The average invoice, he said, is $670.

The city would have to pass a resolution or ordinance to collect the fees, Powell said, adding that the municipality can decide when it will file claims — for motor vehicle accidents, vehicle or structure fires, hazardous material situations, special rescue services or landing zones.

“The city can pick and choose what to file claims for,” he said.

The city can also seek fees for fire inspections from businesses, Powell said, adding many departments seek $50 to $150 for the service.

Fire Chief Joe DeBoer said a number of neighboring communities charge these fees.

“It looks good to me,” Commission Chairman Jim Biever said. “Hopefully we can move ahead with it.”

DeBoer said that he favors the idea because residents don’t have to pay the fee.

“This is money we’ve been leaving on the table,” he said. “We’re not looking to tack on fees to our residents. It’s to collect insurance funds that already exist as part of the (insurance) policy.

“I really think this is a good program for us to look for ways to recover some of our operating and staffing costs.”

Commission member Joe Dean was prepared to make a motion, but did not because the agenda did not allow for action on the issue.

The commission is expected to consider instituting the fees again later this fall.

DeBoer said he expects the billing would begin on Jan. 1.