Incident Response Cost Recovery
- Tulsa City Council
- Nov 14
- 4 min read
Background
The Tulsa Fire Department responds to more than 4,400 motor vehicle accidents each year.
The “Incident Response Cost Recovery” ordinance, proposed by the Tulsa Fire Department (TFD) and passed by the City Council on November 12, permits the City of Tulsa to recover costs from responsible parties for TFD responses to motor vehicle collisions. Fees would be administered and collected by a third-party vendor.
According to estimates provided by a fire cost recovery company, the City could potentially recover approximately $1.2 million annually, minus administration fees. This number is based on a conservative recovery rate estimation of 50 percent. The average recovery rate across the country is 50 to 75 percent.
Implementing this cost recovery program would provide a significant opportunity to recoup expenses associated with emergency response, reduce the financial burden on the City, and enhance the sustainability of fire department operations.
Cost Recovery
Several municipalities, including Bixby, Sand Springs, Sapulpa, and Tahlequah, have implemented cost recovery programs to offset the expenses associated with emergency response to motor vehicle accidents. More than 40 fire departments in Oklahoma use cost recovery services.
These programs allow fire departments to seek reimbursement from the at-fault party’s insurance carrier, thereby helping to recover costs associated with personnel, equipment, and resources utilized during incident response.
This approach not only promotes fiscal responsibility but also ensures that local taxpayers are not solely burdened with the financial impact of emergency services provided to non-residents or those at fault in traffic incidents.
Fees
Fees are only recovered if fault can be determined and the at-fault party has insurance. Bills are sent to the at-fault party’s insurance company.
Fees were developed using actual operational costs of the fire department, FEMA reimbursements and national insurance billing rates.
Only one fee level is charged, and any fees recovered go back into the City’s general fund.
Fees will be assessed as follows. Only one level of fees will be charged, on a one-time only basis, not by the hour.
Level 1 response involves assessment and scene stabilization. This will be the most common billing level, occurring each time the Fire Department responds to an accident or incident. | $710.00 |
Level 2 response includes Level 1 services as well as clean up and materials (sorbents) used for hazardous fluid clean up and disposal. | $785.00 |
Level 3 response involves car fires, including scene safety, fire suppression, breathing air, rescue tools, hand tools, hose, tip use, foam, structure protection, and cleanup of gasoline or other automotive fluids spilled because of the accident or incident. | $865.00 |
Level 4 response includes Extrication using heavy rescue tools, ropes, airbags, cribbing, etc. This charge will be added if the Fire Department must free or remove anyone from the vehicle(s) using any equipment. | $1,865.00 |
Appeals
The ordinance provides for an appeal process where an at-fault party may appeal the fees to the Fire Chief. Any at-fault party whose claim is denied by the Fire Chief may then appeal that decision to the City Council.
Operational Requirements
TFD will utilize a reporting platform to upload post-incident data for processing and documentation. TFD personnel will collect the names and insurance information of all involved parties at the scene of each motor vehicle accident. Reports noting the equipment utilized during the response and any personal protective gear that required laundering because of the incident will also be documented.
No additional TFD staffing is needed for these operational requirements.
These enhancements will ensure accurate and complete documentation, which is essential for successful cost recovery and compliance with third-party administrative requirements.
Learn More
Frequently Asked Questions
Which agency determines who is at fault in a car accident?
Insurance providers determine the at-fault party in a car accident.
Are additional fire department staff needed to implement this ordinance?
No, a third-party vendor will administer the process.
Does the City assess fees for other services?
Yes, the City of Tulsa already charges recovery costs for hazardous materials incident responses from the fire department. Under Title 13, Chapter 4, responsible parties are charged for the cost to mitigate harmful hazardous materials at a rate of $1,800 per hour. Additionally, the actual costs of equipment, supplies, materials consumed in the response to the hazardous materials incident, and any contract labor utilized in the mitigation efforts may be added. Annual fees that would cover these costs are available to Tulsa residents and businesses, as well as an appeal process for those with questions about any assessed fees.
Will insurance rates increase due to the new ordinance?
Several factors can increase insurance premiums, like age, demographics and geography. The additional fee for fire recovery claims does not increase insurance premiums, according to cost recovery vendors. Fire cost recovery fees are also a small percentage of total accident claims.
Additionally, fire cost recovery is already built into the insurance premiums customers pay. Before this ordinance was enacted, Tulsa had not been utilizing the option to recover costs from insurance, according to fire officials.
How were the fees determined in the fee schedule?
The fees were established based on Tulsa Fire Department operational costs, FEMA reimbursements and national insurance billing rates.
Will uninsured motorists be billed if they are at fault?
No, individuals without auto insurance will not be billed. The goal of the ordinance is not to put residents who cannot afford to pay into financial hardship, but to reduce the financial burden to the City and the tax dollars the community is contributing.
As it is still against Oklahoma law to drive without insurance, uninsured drivers still risk car impoundment, losing their license, as well as citations for failure to have insurance.
What if I’m underinsured or my insurance company does not pay the bill? Will I be personally responsible for fees?
The primary goal of this initiative is to recover operational costs from insurance providers, not from individuals. Insurance companies may occasionally decline payment on submitted claims. To account for this, the program was designed with a 50 percent recovery rate. In the rare event that a resident receives a bill, TFD does not expect that individual to pay out of pocket. A designated member of the department will coordinate directly with the vendor to help prevent such occurrences and ensure the process remains equitable.
When will this ordinance go into effect?
The ordinance will go to the Mayor for signing, and if approved, will go into effect 30 days after publication and after a contract is signed with a third-party administrator.
