City of Gonzales
FIRE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Updated Mitigation Rates for Fire Department Emergency Response
RECOMMENDATION
Staff recommends the City Council adopt the updated mitigation rates as provided in Exhibit A, and authorize staff to make the necessary changes to the City’s Cost for Services Fee Schedule.
BACKGROUND
In March of 2016, the City Council authorized the City Manager to enter into an agreement with Fire Recovery USA for the purpose of recovering costs associated with Fire Department emergency response.
This agreement has allowed the Fire Department, through Fire Recovery USA, to bill insurance companies for the costs associated with mitigation of emergency incidents to recover costs. The primary focus of recovery efforts is towards vehicle accidents, because mitigation fees are built into many auto insurance policies. This allows for the Fire Department to recover costs without placing a financial burden on those involved in the accident. Cost recovery has also been successful for other types of incidents including fires and hazardous materials releases, when it is proven that the individuals involved were negligent in actions resulting in an emergency response, such as unauthorized control burns, and vehicles leaking fluids onto a roadway. This program has allowed the Fire Department to recover $34,933.12 in emergency response costs over the life of the program; however, the mitigation rates billed for specific types of response have not been increased since the program began in 2016.
REVIEW AND ANALYSIS
Explain Recommendation and How it Supports the Vision
AGENDA
ITEM
14 City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: Cost recovery efforts for emergency response allow for a way to supplement the Fire Department Budget without placing an additional financial burden on residents. Increasing the mitigation fees is necessary to keep pace with the rising costs involved with emergency response.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
ALTERNATIVES
The Council could choose to leave the mitigation rates at current levels. That option is not recommended as it does not allow for recovery of the ever-increasing cost of emergency response.
BUDGET IMPACT
The revenues collected through cost recovery are dependent on the number of emergency incidents, and if the individuals involved are covered by insurance. Revenues cannot be accurately predicted; however, the program at current rates provides around $3,800 annually, so the increase in rates should lead to an increase in revenue. Fire Recovery USA takes a portion of the fees collected to administer the program so there is no cost to the Fire Department involved.
CONCLUSION
Staff recommends the City Council adopt the updated mitigation rates as provided in Exhibit A, and authorize staff to make the necessary changes to the City’s Cost for Services Fee Schedule.
Attachments:
1. 2025 Mitigation Rates