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HomeMy WebLinkAboutCSD-13-028 - Fire Response Recovery Agreement REPORT TO: Committee of a Whole DATE OF MEETING: March 25, 2013 SUBMITTED BY: Michael May, Deputy CAO, Community Service Dept. PREPARED BY: Tim Beckett Fire Department, 519-741-2926 WARD(S) INVOLVED: All DATE OF REPORT: March 19, 2013 REPORT NO.: CSD-13-028 SUBJECT: Fire Response Recovery Agreement RECOMMENDATION: The Director of Supply Services is authorized to enter into an agreement with Fire Marque Inc. for the recovery of costs associated with fire responses; said agreement to be to the satisfaction of the City Solicitor. BACKGROUND: As part of the 2013 budget process Council directed staff to proceed with recovering fees from Insurance companies for costs associated to fire responses. REPORT: In February 2013, Purchasing staff released a Letter of Interest for the purpose of collecting the Fire Department’s costs for responding to emergency situations where property insured. The Letter of Interest was advertised publicly on the City of Kitchener website. Documents were th downloaded by fifteen (15) interested parties, and by the closing date of Tuesday February 19, 2013, four (4) responses had been received. Only one (1) response had the experience and an established program in place that demonstrated the ability to collect such fees. A draft agreement was modified by purchasing and reviewed by legal and is awaiting execution by both parties. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: This initiative aligns with Effective and Efficient government, E1.4 Reduce Reliance on Taxes. FINANCIAL IMPLICATIONS: Based on previous year’s projections Fire Marque Inc. is estimating that the City will recover approximately $250,000 annually after paying the fees due under this Agreement. The cost recovery for 2013 will be less, $150,000-$200,000 based on utilizing the program for a partial year. 2 - 1 COMMUNITY ENGAGEMENT: Not applicable ACKNOWLEDGED BY: Michael May D/CAO 2 - 2