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Fire Committee Is Closer to New Contract

A new fire protection agreement proposed among St. Ignace city and Moran and St. Ignace townships would put a slightly higher burden of the shared cost on the city and St. Ignace Township, while likely cutting Moran Township's current costs. The city and townships, which have not had a formal fire protection contract for more than 20 years, met to consider one Tuesday, January 19. The deliberating committee also discussed "hydrant rental" and will explore billing property owners' insurance companies to recover costs of emergency response runs.

Under the proposed agreement, protection costs would be computed on 40% of each unit's population, 40% of the property value (state equalized value), and 20% of the costs of responses. The goal is to develop a formula that is fair to the townships and city and not rely so heavily on SEV, as the previous formula did. The original formula used 25% of population and 75% of SEV.

Because the costs of runs have been included, the townships and city could potentially pay more than they did in previous years, but they could pay less if they have fewer runs.

St. Ignace City Manager Eric Dodson said the formula is fair. Moran Township Trustee Mark Spencer, who also suggested the formula at the October fire committee meeting, said he also believes it is fair. Moran Township has the highest property value, at $127,426,072, owing to much lakefront property in the township.

"My feeling is we may be paying a couple percent more, but it's fair," Mr. Spencer said. He is happy the proposed formula does not lean so heavily on SEV, and also that the township could pay less if it has fewer runs.

The committee returned to what "hydrant rental" really means and what the costs pay for. Mr. Spencer said the concept of renting hydrants makes little sense to his constituents, considering Moran Township owns all 49 of its hydrants.

Mr. Dodson said "hydrant rental" is a misnomer and is really a maintenance charge. He said hydrant rental is used to pay for city water department maintenance, including water tower and pump maintenance as well as pipe flushing costs. The fire protection agreement could mean more use for the water department equipment. The city's Department of Public Works charges a $200 fee per hydrant the city and townships own. The city possesses 188 hydrants and is charged $37,600, for example.

Charging insurance companies for fire responses was also considered. Mr. Spencer said other cities and townships charge insurance companies to recover costs, and wondered why ours don't do the same.

Fire Chief John "Bucky" Robinson said billing insurance companies is dicey, at best. Some home owners do not have fire insurance, and there is a chance the city would get tied up in litigation attempting to collect. Since the department could only collect roughly $500 , he said, legal charges could cost just as much, or more. The $500 cap is set by state statute, Mr. Dodson said.

Township Treasurer Sue Dionne warned against charging insurance companies for house fires. While costs could be recovered, she speculated it would drive residents to consider if they want to call the fire department or attempt to put a fire out themselves and avoid any insurance charges.

Mr. Spencer said he is more concerned about charging for personal injury responses than house fires. Many personal injury accidents involve people who are from out of town. The department responded to 17 personal injury accidents in 2009. A personal injury accident, for example, would be a man hitting a truck while attempting to pass a vehicle, or a rollover accident. The City of St. Ignace Fire Department also functions as an emergency rescue team and responds to accidents when a person may need to be extracted from his vehicle.

The commission asked Mr. Robinson to find out how other fire departments bill insurance companies and how successful they are.

A formal contract will be developed using the proposed formula City of St. Ignace Mayor Paul Grondin and Mayor Pro Tempore Don Gustafson represent the city on the fire committee. Township Supervisor Dale Nelson and clerk Donna Harju represent St. Ignace Township. Mr. Spencer and Ms. Dionne represent Moran Township. Mr. Dodson serves as an advisor on the committee.