Feature Highlight: Hazmat Cost Recovery
Hazardous Materials or Hazmat response can eat up a huge amounts of resources in the form of personnel time, equipment usage and consumables. In extreme cases a large response could cost a Public Fire Department a large portion of its annual Budget.
In many cases State statutes will allow Fire Departments to do what many refer to as ‘Cost Recovery’, whereby the FD can claim back costs directly associated to the Hazmat incident response. In most situations the offending or responsible party e.g. the transporter or industrial site is the one liable to pick up the bill.
There are a few important considerations to take into account before producing your first cost recovery bill:
1.) Firstly, what items are you willing and able to recover?
2.) Are you simply going to recover consumables and send on the restocking cost?
3.) Or as above, are you going to include a cost per hour or per use on all equipment used?
Below you can also see a full fee schedule for personnel.
It’s worth sitting down with your team ahead of time and working out these rates so that they are consistent and updated to maintain accuracy. Below you can see the end of a three page D4H cost recovery report, if you’d like to see a demo of how D4H could solve this issue for your department, please fill out the form here.
The simple part is the replacement of supplies used. For these you simply pass on the restocking cost to the RP. The statute allows for municipalities to recover costs as well. This could apply to towns that contract to another fire department for services. Some departments have a fee schedule for personnel costs as well as hourly apparatus rates. These rates should be determined ahead of time and should have a rationale as to how they were derived. For instance, personnel costs should reflect actual costs.
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