Tulsa fire department seeks insurance reimbursement for crash responses under proposed ordinance

The Tulsa Urban & Economic Development Committee on Nov. 12 heard a presentation on an ordinance that would add an incident-response cost‑recovery chapter to Title 13 of the Tulsa Revised Ordinances, authorizing the city to seek reimbursement from at‑fault parties’ insurers for fire‑department responses to motor‑vehicle incidents.

Assistant Chief Douglas Connor told the committee Tulsa Fire Department responds to about 4,400 motor‑vehicle incidents a year and, working with third‑party vendor Fire Recovery USA, conservatively projects $1.1 million to $1.2 million in annual recoveries after vendor administrative fees. “Fire Recovery USA is the nation’s largest cost recovery company,” Connor said; he added the vendor would work with insurers directly so individuals would have no correspondence with the vendor.

The proposed ordinance ties fee levels to operational costs and national insurance billing rates; staff described four response tiers from minimal scene assessment (Level 1) to heavy rescue and extrication (Level 4) and said the city would bill one fee per incident rather than by apparatus. City legal staff and fire presenters emphasized that only incidents where fault is determined and the at‑fault party has insurance would be pursued; uninsured motorists would not receive bills under the proposed language.

Councilors asked whether the FY budget already reflects expected revenue. Staff said the budget includes roughly $550,000, about half of the conservative projection, and that collections would be placed in the general fund. Staff also warned that Fire Recovery USA’s process typically produces a four‑month lag between incident entry and receipt of funds, so collections begun in January might not appear until April or May.

Procurement and oversight were central concerns at the table. Staff said the contract with the third‑party vendor is still in the purchasing process and may require a sole‑source justification; Fire Recovery USA’s administrative fee is taken “off the top” of recovered amounts and the vendor remits the remainder to the city. Councilors suggested adding safeguards to monitor vendor performance, questioned potential perverse incentives, and debated whether to include an emergency clause to accelerate the ordinance’s effective date. Staff said an emergency clause is possible but may not be necessary if procurement aligns with the ordinance effective date.

The committee did not vote on the ordinance at the meeting; staff said the ordinance would take effect 30 days after publication unless an emergency clause is adopted and that contract execution must be completed before collections begin. The city will return to the council with the ordinance and the procurement contract; staff projected an implementation window that could lead to collections beginning early next calendar year.