Fire Cost Recovery Billing Ordinance Copyrighted
May 18, 2026
City of Dubuque ACTION ITEMS # 6.
City Council
ITEM TITLE: Fire Cost Recovery Billing Ordinance
SUMMARY: City Manager recommending City Council approval to
advance a Fire Cost Recovery Ordinance, including the
associated fee schedule for consideration.
ORDINANCE Amending the City Of Dubuque Code of
Ordinances, Title 7, Chapter 2, Section 2, by Repealing Said
Section and Enacting a New Section in Lieu Thereof Relating
to the Recovery of Fire Department Mitigation Costs
SUGGUESTED Receive and File; Motion B; Motion A
DISPOSITION:
ATTACHMENTS:
1. MVM Memo - Fire Cost Recovery Billing Ordinance
2. Staff Memo DFD- Fire Cost Recovery Billing Ordinance
3. Fire Cost Recovery Ordinance - 2026
Page 863 of 890
Dubuque
THE CITY OF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fire Cost Recovery Billing Ordinance
DATE: May 11, 2026
Fire Chief Amy Scheller is recommending City Council approval of a Fire Cost Recovery
Ordinance, including the associated fee schedule.
In October 2025, the Dubuque Fire Department presented a long-term financial
sustainability strategy intended to support future operational needs, minimum staffing
improvements, and enhanced emergency response capabilities throughout the
community. The strategy identified three primary components including modernization
of ambulance billing rates utilizing the annual GEMT cost reporting methodology,
implementation of a Fire Cost Recovery billing program, and negotiated operational
savings associated with the department's Public Consulting Group (PCG) contract.
Since that time, the department has implemented the ambulance billing modifications
and previously completed the negotiated PCG contract adjustments discussed. The
department is now advancing the remaining component of the strategy through
implementation of the proposed Fire Cost Recovery program and associated ordinance
structure.
Establishing this ordinance is a needed step in creating the legal and administrative
framework necessary to recover eligible costs associated with specific emergency
response incidents, including motor vehicle accidents, hazardous materials incidents,
vehicle fires, specialized rescue responses, and other eligible emergency mitigation
activities where recovery from a responsible party or insurer is permitted.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Page 864 of 890
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Amy Scheller, Fire Chief
Jenny Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
Sam Janecke, EMS Bureau Chief
Jason Lehman, Assistant City Attorney
Dawn March, Purchasing and Safety Coordinator
Joe Pregler, Chief Information Officer
2
Page 865 of 890
Dubuque
THE CITY OF �
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TO: Mike Van Milligen, City Manager
FROM: Amy Scheller, Fire Chief
SUBJECT: Fire Cost Recovery Billing Ordinance
DATE: April 28, 2026
INTRODUCTION:
The purpose of this memorandum is to request approval to advance a Fire Cost
Recovery Ordinance for City Council consideration. Establishing this ordinance is a
needed step in creating the legal and administrative framework necessary to recover
eligible costs associated with specific emergency response incidents, including motor
vehicle accidents, hazardous materials incidents, vehicle fires, specialized rescue
responses, and other eligible emergency mitigation activities where recovery from a
responsible party or insurer is permitted.
This request is directly connected to prior operational and staffing discussions
presented to the City Manager and City Council during late 2025 regarding firefighter
staffing enhancements, minimum staffing improvements, and the department's long-
term financial sustainability strategy. As outlined in the October 17, 2025 memorandum
regarding ambulance billing adjustments and firefighter staffing increases, the Fire
Department identified three primary funding strategies intended to assist in supporting
future personnel and operational costs: (1) modernization of ambulance billing rates
utilizing the annual GEMT cost reporting methodology, (2) implementation of a Fire Cost
Recovery billing program, and (3) negotiated contractual savings associated with the
department's Public Consulting Group (PCG) service agreement.
The proposed Fire Cost Recovery Billing Ordinance directly aligns with Funding
Strategy #2 and represents the formal mechanism necessary to implement a structured
Fire Cost Recovery billing program within the City of Dubuque. The department
previously communicated that these combined financial strategies were intended to
support additional firefighter staffing requests associated with improving minimum
staffing levels, increasing operational resiliency, and strengthening frontline emergency
response capabilities. These discussions also included the department's intent to
pursue a Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire
and Emergency Response (SAFER) Grant to assist with a portion of future personnel
costs to support the long-term sustainability of those positions following conclusion of
the federal grant period.
Page 866 of 890
The department's FY2027 staffing plan included a request for nine additional firefighter
positions intended to further improve minimum staffing levels, increase operational
capacity, and strengthen emergency response reliability throughout the community.
These positions are contingent upon the successful award of a FEMA SAFER Grant,
which would provide critical federal assistance during the initial implementation period
while allowing the department to implement the billing strategies and City to evaluate
long-term sustainability through the operational and revenue strategies previously
identified.
DISCUSSION:
In October 2025, the Dubuque Fire Department presented a long-term financial
sustainability strategy intended to support future operational needs, minimum staffing
improvements, and enhanced emergency response capabilities throughout the
community. The strategy identified three primary components including modernization
of ambulance billing rates utilizing the annual GEMT cost reporting methodology,
implementation of a Fire Cost Recovery billing program, and negotiated operational
savings associated with the department's Public Consulting Group (PCG) contract.
Since that time, the department has implemented the ambulance billing modifications
and previously completed the negotiated PCG contract adjustments discussed. The
department is now advancing the remaining component of the strategy through
implementation of the proposed Fire Cost Recovery program and associated ordinance
structure.
To support implementation of the Fire Cost Recovery initiative, the City completed a
formal Request for Proposal (RFP) process to identify a qualified vendor capable of
providing billing administration, reporting, claims management, and insurance recovery
support services associated with municipal fire cost recovery operations. A review
process involving representatives from the Fire Department, City Legal, and Finance
Departments was conducted, resulting in the selection of Fire Recovery USA as the
preferred vendor for the program.
Following the vendor selection process, the Fire Department worked collaboratively with
the City Attorney's Office and City Legal staff to develop proposed ordinance language
utilizing recommendations and industry best practices associated with Fire Cost
Recovery programs. The proposed ordinance establishes the legal authority necessary
to administer the program, define eligible incidents and services, and formally adopt the
associated mitigation and response fee schedule applicable to eligible emergency
incidents.
As an industry best practice, mitigation and response fees are recommended to be
specifically identified within the ordinance itself. Incorporating the fee schedule directly
into the ordinance improves transparency, establishes clear local authority, supports
administrative consistency, and strengthens the City's ability to recover eligible costs
2
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from insurance carriers and responsible parties. This approach is commonly utilized by
municipalities administering Fire Cost Recovery programs and ensures the fees are
formally adopted through the public ordinance process.
RECOMMENDATION:
It is respectfully requested that approval to submit a Fire Cost Recovery Ordinance,
including the associated fee schedule, for City Council review and consideration. This
action will provide the necessary structure to move forward with implementation of the
program in an organized and legally supported manner.
CC
Jenny Larson
Laura Bendorf
Sam Janecke
Crenna Brumwell
Jason Lehman
Dawn March
Joe Pregler
3
Page 868 of 890
ORDINANCE NO. -26
AN ORDINANCE AMENDING THE CITY OF DUBUQUE CODE OF ORDINANCES,
TITLE 7,CHAPTER 2,SECTION 2,BY REPEALING SAID SECTION AND ENACTING
A NEW SECTION IN LIEU THEREOF RELATING TO THE RECOVERY OF FIRE
DEPARTMENT MITIGATION COSTS
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DUBUQUE, IOWA:
Secrion 1. REPEAL AND REPLACEMENT.
Title 7, Chapter 2, Section 2 of the City of Dubuque Code of Ordinances is hereby repealed and the
following adopted in lieu thereo£
7-2-2: RECOVERY OF FIRE DEPARTMENT MITIGATION COSTS.
A. PURPOSE.
The purpose of this section is to provide for the recovery of costs incurred by the City when
its Fire Department responds to Incidents requiring EmergencyT or Non-Emergency Services,
and to allocate such costs to those persons or entities responsible for causing or contributing
to such Incidents,in order to reduce the financial burden on taxpayers.
B. DEFINITIONS.
For purposes of this section, the following terms shall have the meanings indicated:
1. Emergency Serr�ices means fire suppression, rescue, emergency medical response,
hazardous materials response, and other services provided by the Fire Department in
response to an Incident.
2. Non-Enaergency Services means services provided by the Fire Department that do not
involve an immediate threat to life or property but require the use of personnel,
equipment, or resources.
3. Incident means any occurrence to which the Fire Department responds in the
performance of its duties.
4. Ke.r�onsible Pary means any person, firm, corporation, or other entity whose act or
omission caused or contributed to an Incident.
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5. Mitigation Co.rt.r means the reasonable costs incurred by the City for personnel,
equipment, materials, administrarive expenses, and any contracted services associated
with responding to and mitigating an Incident.
C. LIABILITY FOR COSTS.
1. Each Responsible Party shall be liable to the City for Mitigation Costs incurred by the
Fire Department in responding to an Incident, to the extent such part�� caused or
contributed to the occurrence of the Incident.
2. Liability shall be joint and several where more than one Responsible Party exists.
D. SCHEDULE OF FEES.
1. Mitigation Costs shall be assessed in accordance with the Schedule of Mitigation Rates
attached hereto as Exhibit A.
E. BILLING;INSURANCE.
1. The City may bill Mitigation Costs:
a. Directly to any Responsible Party;
b. To any applicable insurance carrier; and/or
c. Through a third-party claims administrator.
2. Responsible Parties shall, upon request, provide complete and accurate insurance
information,including policy numbers and carrier contact information.
3. The City is authorized to pursue recovery from any available insurance coverage,
including but not limited to automobile,liability, and property insurance.
4. Insurance proceeds shall be credited to the outstanding balance;any remaining amount
shall remain the obligation of the Responsible Party.
5. Submission of a claim to insurance shall operate as a waiver of any charges or
otherwise limit the City's ability to pursue full cost recovery.
6. To the extent permitted by applicable law, Mitigation Costs may be recovered
regardless of fault where insurance coverage applies to the Incident.
F. CLAIMS ADMINISTRATION.
1. The City may contract with a third-party claims administrator to assist with:
a. Billing and invoicing;
b. Insurance claim submission and follow-up;
c. Documentation of services rendered;
d. Collection of Mitigation Costs; and
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e. Customer service related to billing inquiries.
2. Any such administrator shall act on behalf of the City and in accordance with this
Code of Ordinances, other applicable law, and the terms of any agreement approved
by the City.
3. The City may authorize the claims administrator to:
a. Submit claims directly to insurance carriers;
b. Receive payments from insurers; and
c. Coordinate with Responsible Parties regarding billing matters.
4. Compensation to a claims administrator may be structured on a contingency or fee-
for-service basis, as approved by the City, and may be paid from recovered proceeds.
5. The use of a claims administrator shall not:
a. Relieve any Responsible Party of liability;
b. Limit the City's authority to pursue collection by other lawful means; or
c. Affect the availability of administrative appeal rights under this section.
6. All records related to Mitigation Cost recovery shall remain the property of the City,
subject to applicable public records laws.
G. MOTOR VEHICLE INCIDENTS.
1. In the case of motor vehicle Incidents,Mitigation Costs may be billed to:
a. Any Responsible Party; and/or
b. The insurer of any vehicle involved.
2. It is the intent of the City that recovery for motor vehicle Incidents be directed
primarily to insurance coverage when available.
3. Nothing herein shall limit the Cit��'s ability to recover costs from uninsured or
underinsured Responsible Parties.
H. BILLING; COLLECTION.
1. Payment sha11 be due within the time stated on the invoice.
2. Delinquent accounts may be recovered by any lawful means, including:
a. Civil actions;
b. Collection agencies;
c. Use of a claims administrator;
d. Intercept of insurance proceeds; and/or
e. Any other method authorized by applicable law.
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I. SPECIAL ASSESSMENT; LIEN.
To the extent permitted by applicable law and where the Incident is connected to real property
owned by the Responsible Party, any unpaid Mitigation Costs may be certified to the county
treasurer and collected in the same manner as a property tax or assessed as a lien against such
real property.
J. ADMINISTRATIVE APPEAL.
1. A Responsible Party may appeal the imposition or amount of Mitigation Costs by filing
a written appeal with the City Manager or designee within thirty (30) days of billing.
2. The appeal shall include:
a. The appellant's name and contact information;
b. The invoice number;
c. A statement of the grounds for appeal; and
d. Any supporting documentation.
3. The City Manager or designee may request additional information or conduct an
information hearing.
4. The City Manager or designee shall review the submitted information and issue a
written decision affirming, modifying, or waiving the charges.
5. The decision shall constitute final administrative action.
K. HARDSHIP WAIVER.
1. The City Manager or designee may reduce or waive Mitigation Costs upon a showing
of undue financial hardship or other equitable considerations.
2. In determit�it�g whetheY a hardship e�sts, the City may consider:
a. The financial resources of the Responsible Party;
b. Whether and to what extent insurance coverage is available;
c. The nature and severity of the incident;
d. Whether the incident was accidental or beyond the reasonable control of the
Responsible Party; and
e. Any other factors deemed relevant to fairness and equity.
3. A request for hardship waiver may be submitted as part of an appeal or as a separate
written request.
L. OTHER REMEDIES.
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The remedies provided in this section are cumulative and do not limit the City's authority to
recover costs under any other provision of law.
M. EXHIBIT A—MITIGATION RATE SCHEDULE.
The mitigation rate schedule attached as Exhibit A is hereby adopted and incorporated by
reference. Said schedule establishes standardized billing levels and itemized rate options for
Fire Department services.
The rates listed in Exhibit A shall be adjusted by a percentage equal to the annual increase in
the Consumer Price Index. The adjusted rates shall be effective July 1, 2027, and each July 1
thereafter, as provided below:
1. INDEX USED.
The adjustment shall be based on the percentage change in the Consumer Price Index
for All Urban Consumers (CPI-U), U.S. City Average, All Items (1982-84 = 100), as
published by the U.S. Bureau of Labor Statistics or its successor entity.
2. CALCULATION METHOD.
The percentage change shall be calculated by comparing the most recently published
CPI-U index for the April preceding the adjustment date to the CPI-U index for the
same month in the immediately�preceding year.
3. ADJUSTMENT APPLICATION.
The resulting percentage increase shall be applied to the then-current rates, and the
adjusted amounts shall become effective on July 1.
4. DEFLATION
In the event the CPI-U reflects a negative percentage change, rates shall be adjusted
downward consistent with the percentage decrease.
5. ROUNDING.
Adjusted amount sha11 be rounded to the nearest dollar.
6. PUBLICATION DELAY.
If the CPI-U for the applicable month is not published at the time of calculation, the
most recently available index shall be used,with a true-up applied upon publication,if
necessary.
Section 2. SEVERABILITY.
If any provision of this ordinance is held invalid, such invalidity shall not affect other provisions.
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Section 3. EFFECTIVE DATE.
This ordinance shall take effect upon publication.
Passed, approved, and adopted this day of , 2026.
Brad M. Cavanagh, Mayor
Attest:
Adrienne N. Breitfelder, Cit��Clerk
Page 874 of 890
EXHIBIT A—FIRE DEPARTMENT MITIGATION RATE SCHEDULE
Section 1. PURPOSE AND APPLICATION.
This Mitigation Rate Schedule establishes standardized charges for Fire Departrnent services. Rates
reflect the average cost of providing emergency and non-emergency response services, including
apparatus,personnel, equipment, and administrative overhead. All rates are presumptive billing levels.
The City reserves the right to utilize itemized billing based on actual services rendered using rates
deemed usual, customary, and reasonable.
Section 2. GENERAL COST BASIS.
Mitigarion rates are calculated using apparatus amorrizarion (useful life, maintenance, repair,
replacement), total labor costs (wages, benefits, retirement, insurance, workers' compensation),
equipment and material usage, and administrative and operational overhead.
Section 3. MOTOR VEHICLE INCIDENTS.
A. Base Response Levels
1. Level 1 — $637.00
Hazard assessment and scene stabilization (standard response).
2. Level 2 — $726.00
Includes Level 1 plus hazardous fluid containment and cleanup.
3. Level 3 (Vehicle Fire) — $886.00
Fire suppression, rescue tools, foam application, and cleanup.
B. Additional Services
1. Extrication — $1,915.00
Applies when specialized rescue equipment is deployed to remove trapped occupants.
2. Landing Zone — $584.00
Applies when a helicopter landing zone is established or utilized.
C. Itemized Billing Option
Incidents may be billed peY appaYatus, personnel, equipment, and materials.
Section 4. HAZARDOUS MATERIALS (HAZMA'l�.
1. Level 1 (Basic) — $1,029.00
Initial response,perimeter control, evacuation, and command.
2. Level 2 (Intermediate) — $3,673.00
Includes Level 1 plus hazmat team deployment, protective suits, breathing air, monitoring
equipment, and decontamination.
3. Level 3 (Advanced) — $8,673.00
Includes Level 2 plus robot deployment, recover�and identification of material, disposal and
clean up, and up to three (3) hours of on-scene rime. Additional on-scene time is billed at
�391.00 per hour per hazmat team.
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Section 5. ILLEGAL FIRES.
Rates identical to standard fire response:
• Engine: $585.00 per hour
• Truck: �732.00 per hour
Applicabilit�J:
Charges apply when:
• Fires are in violation of burn bans or regulations; or
• Required permits were not obtained.
Liability:
Responsible parties shall be liable for the actual cost of response, including labor, equipment, and
associated expenses.
Section 6. WATER INCIDENTS.
1. Level 1 — �600.00 + $72.00/hour per responder
Basic response and investigation. Initial response, perimeter control, evacuation, and
command.
2. Level 2 — �1,205.00 + $72.00/hour per responder
Includes Level 1 plus minor hazardous material cleanup.
3. Level 3 — �2,984.00 + $72.00/hour per responder and $140.00/hour per HAZMAT team
member.
Includes Level 2 plus D.A.R.T. activation,specialized rescue teams,decontamination,disposal,
and environmental cleanup.
4. Leve14—Itemized Billing (UCR)
Section 7. BACKCOUNTRY / SPECIAL RESCUE.
Each incident will be billed with custom mitigation rates deemed usual, customary and reasonable.
These incidents will be billed and itemized per apparatus peY hour,peY trained Yescue person per houY,
plus rescue products used. The minimum charge shall be$600.00 per response vehicle plus $72.00 per
hour per rescue person.
Section 8. COMMAND / CHIEF RESPONSE.
A. �367.00 per hour.
Includes incident command, operational oversight, safety management, and administration.
Section 9. ADDITIONAL TIME ON-SCENE (ALL INCIDENTS).
• Engine: $585.00 per hour
• Truck: �794.00 per hour
• Command: $367.00 per hour
• Miscellaneous Equipment: $440.00 per hour
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Section 10. BILLING PROVISIONS.
A. The mitigation rates contained herein are average billing levels for one hour of service and are
typical for the incident responses listed.Actual charges may vary based on the duration of the Incident,
the personnel and apparatus(es) deployed, and the materials and equipment used.
B. Average mitigation rates shall be determined by itemizing costs for a typical run (from the time
a fire apparatus leaves the station until it returns to the station) and be based on the actual costs,using
amorrized schedules for apparatus (including useful life, equipment, repairs, and maintenance) and
labor rates (the Fire Department's actual personnel expenses and not just a firefighter's base wage).
"Actual personnel expense" includes, but is not limited to, base wages; overtime; premium pay�s;
employer-paid payroll taxes; pension and deferred compensarion contributions; health, dental, and
vision insurance; workers' compensation; life and disability insurance; paid leave accruals and
associated backfill costs; training and cerrification expenses; uniform and personal protective
equipment costs; and administrative overhead direcdy attributable to personnel.
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