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A Fire Recovery USA White Paper2271 Lava Ridge Coute, Suite 120Roseville, CA 95661(888) 640-7222www.firerecoveryusa.comBudget Support Through Fire PreventionNovember, 2012

Introduction3Primary Issues3Past Actions4FEMA Sample Billing Rates5Fire Recovery USA Solutions6Benefits8Case Studies9IntroductionToday’s Fire Departments are struggling to keepup with demand. Governmental budgets aredecreasing and costs are on the rise. Fireprevention has become an increasingly importantelement of a fire department’s need to reduceincidents. Combined with cost recovery it canalso provide budget support.Primary IssuesFunding for public services has been flat ordecreasing over the past several years and thereis no apparent relief in sight. There simply is notenough revenue to support the commitments forpublic services. Fire departments need tocontinue to provide a high level of service, evenwith increasing costs and a lower level ofsupport.Past ActionsHistorically many fire departments have onlyinspected high risk or high impact facilities andmost departments have provided these servicesat minimal charge even though their cost issignificant.FIREHOUSE Software/Fire Recovery USASolutionsCombining technology with automation for fullinspections as well as a self-inspection program,fire departments can complete annualinspections for ALL businesses, which willprovide a higher level of review and safetycompliance thus reducing fire suppressionresponse.BenefitsWe’ll explore how a simplified inspection programcan benefit a fire department both with efficiencyand revenue.Case StudiesA demonstration of how FH Inspector for iPadcombined with Fire Recovery USA’s solutionsassisted actual fire departments.

Budget Support Through Fire PreventionIntroductionIn this paper we will demonstrate the ability for a fire department to obtain a substantial increase inpublic safety. We will show how it is possible to maintain safety oversight over all business within acommunity even with a manpower shortage. We will also demonstrate how your inspection andsafety programs, though cost recovery, can create budget support both short and long term.Primary IssuesFire Departments are being asked to provide more services with either static or reducedbudgets. Fire Department responsibilities now extend to all facets of every day life includingfire response, paramedic response, haz-matinventory and oversight, accident response, andbusiness safety. All of this oversight comes with aFunding'cost and manpower requirement. Most of the timethis exceeds a departments physical and financialcapabilities.A simplified example of this business oversight,Fire Departments have a responsibility to assurepublic safety in businesses. This typically involves asafety review of the space. Many fire departmentsCosts'do not fulfill this obligation or partially fulfill thisobligation by only inspecting high risk businesses.This causes a potential for fire and safety exposure to the public as well as potential firesuppression response cost to the fire department.

Past ActionsOne solution to complete the requiredinspections was to create a team ofdedicated fire inspectors in order toassist the company fire inspections.While this did increase the number ofinspections completed annually, theexpense rose commensurate with thepersonnel and therefore, was notfeasible as there was no budget supportfor the program.Another approach was to lower thenumber of annual inspections required tobe performed, which, while helping tomeet a fire department’s goals, was not asatisfactory solution from a safetyperspective. By simply not assigning aninspection the public safety is potentiallycompromised and the fire departmentsresponsibilities are not met.Fire Departments have utilized a systemof Self-Inspections to fulfill theirinspection and oversight requirements inthe past. While not impacting manpower.these programs were implemented bysending an inspection form to a businessthen reviewing the results of this paperform when it was returned. The formswere then held in inventory asconfirmation of an inspection completion.This method of accountability, althoughbetter than nothing was very difficult toadminister and had very little assuranceof accuracy. There was typically no longterm method of checks and balances asthe fire departments still lacked adequatemanpower to fully audit and inspect allbusiness on a regular basis. It was aprogram which was better than doingnothing but still had large lapses anddependency on unaudited statementsand yielded low collection rates.In some areas fire departments begancharging for inspections as a method toprovide funding for their fire preventionprograms. The billing volume andamount typically varied by department,with most billing only permit and high riskinspections.This provided some relief for departments butwas typically not adequate to fully fund the fireprevention program so in most cases there wasstill a significant gap between the fire preventionfunding and their obligations.FEMA Recommends CostRecovery for Fire PreventionFormanyyearsFEMA hasbeenrecommendingchargingfeesforinspections. In their 2012 paper FundingAlternatives for Emergency Medical and FireServices, they say:“Inspection fees have long been used by firedepartments to provide funding for fire prevention.Fee schedules vary among jurisdictions. Inspectionfees may be based upon the type of inspectionconducted (initial or reinspection), the occupancy(educational, industrial, residential, etc.), and thesize of the building. Many departments charge a flatfee for initial inspections with additional fees foreach subsequent reinspection. Additional fees maybe charged when special hazards are present, suchas hazardous materials storage areas.Business self-inspection programs have become anaccepted way to address low-hazard occupancies,while making certain the fire department has thenecessary information on businesses operatingwithin the jurisdiction and the types of hazardspresent. Self-inspection programs involve sending achecklist to the registered business operator. Theowner completes and returns the checklist to the firedepartment along with a nominal fee in exchangefor a Certificate of Inspection. Some firedepartments conduct random audit inspections toensure proper compliance. Self-inspection programsonly work for low-hazard occupancies. Theadvantage is that self-inspections collect informationthe firefighters need, while also providing a revenuestream for fire prevention services at little cost to blications/fa-141.pdf

FEMA Sample Inspection Billing RatesThese solutions, however, may not go far enough in today’s economicenvironment to fully offset the costs of the inspection programs andthe problem of full compliance still exists. New solutions can beexplored.

FIREHOUSE Software / Fire Recovery USA SolutionsCombining technology with automation for full inspections as well as a self-inspectionprogram for low-risk, low-occupancy businesses, fire departments can complete annual baselevel inspections for ALL businesses. By incorporating billing for inspections, this programcan fully fund itself, the program, and the technology required to make it successful.This program provides both the ability to inspect all businesses in a jurisdiction but alsoprovides an electronic database that can be queried for specific information. The crossplatform communications allows effortless auditing of Self-Inspect accounts while automatedbilling and collection provides the ability for a fire department to only administer and performinspections. All other tasks are outsourced and automated to Fire Recovery USA who bills,collects, and accounts for all activity, thus freeing fire department resources to focus onperforming inspections. And with FHinspector for iPad your inspections are completed in afraction of the time of prior systems allowing for higher production from fire department staff.FHinspector for iPadInspectionsFire Recovery USA has worked withFIREHOUSE Software to develop a programto provide a complete inspection programincluding generating the necessary revenueto operate your fire prevention program.Using FHinspector for iPad, a fire departmentcan complete a full inspection in about one-third the time of traditional paper-basedinspections. The device can bring up a street map of the coverage area and place flags onthe map on addresses that are in need of inspections. The inspection form on the screenallows easy “touch-pad” selections and includes the applicable fire codes for all theinspection items.Once the inspection is complete, Fire Recovery USA receives the appropriate informationfor billing automatically. Our exclusive arrangement with FIREHOUSE Software allows us toreceive the data, invoice the business, process payments and issue a fire permit afterpayment is received. We can even update FIREHOUSE Software once payment statuschanges. All accounting and data operations are handled by Fire Recovery USA withoutneed for further action from the fire department.To supplement the FHInspector program,Fire Recovery USA has created a fullyintegrated Self-Inspections program whichassures all businesses are inspectedannually. This full program also allows thecost of your inspection and fire preventionprogram to be allocated across everybusiness in the community allowing for ahigher revenue-producing program to the fire department while being more affordable forbusiness.Self-InspectionSupplement for FullInspections

Self-InspectionHow It WorksFire Recovery USA will mail an information package to each business, containing a letterfrom the Fire Department explaining the program as well as instructions how to login in to ourwebsite and perform a self-inspection.The responsible party completes the Inspection Form online. Our system allows theparticipant to pass or opt-out to receive a full inspection. A “no pass” requires the businessto make corrections prior to completing. If they fail to complete the corrections in a timelymanner, a full inspection will be scheduled. If a business does not meet the criteria of the firedepartment they will automatically be send to the fire department to schedule a fullinspection. If the business passes, the payment for their Fire Permit can be madeimmediately online or mailed by check.Fire Recovery USA processes the payments, as well as provides online access to the firedepartment and city for each inspection. This information is available 24/7 via the Internetand is password protected for security.Benefits Combining these programs can lower inspections times and theadministrative burden by up to 80%. Full inspection times can be lowered by up to 65%. Administrativelabor costs for inspections programs can be lowered by up to 90%. The Fire Inspection Program will support your department byproviding revenue for the services and support your fire departmentprovides. Maintain a high level of safety oversight over all business within acommunity, even with a manpower shortage.