Hernando Today
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Council Gives First Nod To Emergency Fees
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Published: September 17, 2008
BROOKSVILLE - The city is one step closer to charging insurance companies — or uninsured out-of-towners — for services by provided when the police and fire departments respond to a car wreck or house fire.
The city council late Monday voted 4 to 1 in favor of a recommendation by its police and fire chiefs to start a "cost recovery program" to bill for emergency services. Staffers will draw up a contract with Cost Recovery Corporation, a Dayton, Ohio-based firm that specializes in sending bills to insurance companies and tracking their status.
Council members agreed with the two chiefs and the company's president, Regina Moore, who during a presentation described the program not as a revenue maker but rather as a "reasonable and responsible" way to protect taxpayer resources by going after the insurance companies of non-residents who cause an accident while in the city.
Moore estimated the program could bring in as much as $150,000 each year to put back into police and fire department budgets.
"It's recovering funds that have already been spent by your taxpayers," Moore said.
If the out-of-town driver is uninsured, the Cost Recovery would go after the driver directly.
But it won't just be the insurance companies of non-residents that will be billed. In an auto accident, the insurance company of the at-fault driver would get the bill, even if the driver lives in the city. Same for the insurance company of a resident whose house catches fire.
The claim would be dismissed if rejected by the resident's insurance company.
Moore noted statistics provided by Police Chief George Turner that show more than 70 percent of accidents in the city have been caused by non-residents.
"You have an unfair burden placed on your citizens, subsidizing services for which they receive no benefit," Moore said.
Moore's firm set its billing fees based on research in fire and police departments throughout the country. The fees vary based on a department's response to a given incident, she said. An average fee for police response to a traffic crash is $180; for the fire department to a crash, about $600.
Many insurance companies already have provisions for fees in policies, in which case the fee would be kept to the amount of the rider, Moore said.
She said 56 percent of insurance companies accept the claims.
The city does not pay a fee to the corporation. Instead, the firm adds its administrative costs on top of the city's bill to insurance companies.
Councilmember Lara Bradburn agreed that Brooksville should recover the cost incurred by the first responder but doesn't want the city "to be the business of harassing bill collector."
Moore said the city decides how hard to go after insurance companies or uninsured drivers.
"We're not going to function outside of your direction," Moore said.
Vice-mayor Frankie Burnett said he liked that aspect.
"The best part of this is the city sits down with the recovery corporation to say how we want this done and how far we want to go," Burnett said.
Moore said it's a myth the program would raise insurance premiums. An at-fault driver's premium is going to go up "whether we're there or not," she said.
Pugh said he had a philosophical problem with charging insurance companies for services that city residents already pay for. As well, Pugh said the city gets revenue from at-fault drivers through fines attached to citations.
City Manager Jennene Norman-Vacha said the program could be in place by the end of the year.
Building fee increases tabled
The council decided to hold off on a vote to hike fees charged for building services.
The fees haven't increased in five years, Lew Chandler, the city's building official, told the council in presenting the proposed rate hikes. Lew is employed by PDCS, the firm under contract to provide building services.
Some council members agreed fee increases were warranted in at least some cases but wanted staff to investigate whether PDCS, can get out of its three-year lease for its current home on Liberty Street and move into vacant space in City Hall to save money on rent and lower the rate hikes.
In other action, the council unanimously approved a small-scale comprehensive plan amendment to change nearly 5 acres on the State Road 50 bypass at Mildred Avenue to allow for a hotel and office space.
Reporter Tony Marrero can be reached at 352-544-5286 or lmarrero@hernandotoday.com.
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