Title
Contract: Fire Prevention Billing Services [Two-Thirds Vote Required]
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FileID
File ID: 2026-00133
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion by two thirds vote per City Code Section 3.56-.230(E) authorizing the City Manager or designee to 1) suspend competitive bidding, in the best interest of the City, 2) awarding a contract to Fire Recovery USA, LLC with an initial term of three (3) years expiring December 31, 2028, for Fire Prevention Billing Services for a total amount not-to-exceed amount of $500,000; and 3) authorizing the City Manager or designee to execute the specified above and any and all extension(s).
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Contact
Contact: Jason Lee, Fire Marshal, (916) 808-1620, jalee@sfd.cityofsacramento.org, Fire Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Fire Recovery USA, LLC Contract
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Description/Analysis
IssueDetail
Issue Detail: The Sacramento Fire Department (SFD) has an ongoing requirement for fire prevention billing services to recover costs associated with the implementation of the City’s Fire Prevention Inspection program. This program inspects thousands of buildings and businesses that are required to undergo fire inspections in accordance with the California Fire Code, California Building Code, and local ordinances. These inspections generate numerous invoices for the required cost recovery.
Historically the City’s Revenue Division has assisted SFD with billing; however, the department recently implemented a new department-wide fire response management system, ImageTrend, and the Revenue Division’s system is not compatible. Due to the compatibility challenges the SFD conducted a competitive bidding process for services.
In January 2025, SFD issued a Request for Proposal (RFP) for fire prevention billing services under RFP No. P25121121001. The RFP was posted for three weeks on the City’s Planet bid solicitation website. SFD did not receive any proposals. Given the lack of response to the RFP, the SFD recommends suspending competitive bidding in the best interest of the City to move forward with cost recovery billing for fire prevention services. Staff researched companies compatible with ImageTrend that could provide the necessary billing services. As a result, staff recommend engaging Fire Recovery USA, LLC, as they have demonstrated the capability and capacity to meet the department’s needs.
The delay in the RFP closing in January 2025 and the SFD bringing this recommendation to Council reflects staffing challenges couple with the time required to research compatible companies with appropriate professional capacity. In addition, staff spent time negotiating with an alternate vendor who became unresponsive. Staff has since worked diligently with Fire Recovery USA, LLC and the City Attorney’s Office develop a contract for Council consideration.
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PolicyConsiderations
Policy Considerations: This recommendation is consistent with City requirements for competitive bidding as detailed in the Sacramento City Code 3.56, including suspending competitive bidding in the best interest of the City for using the RFP Process for procurement of non-professional services.
Per City of Sacramento Charter 3.56.090, all contracts for supplies or nonprofessional services involving an expenditure of $250,000 or more shall be awarded by the City Council. Such contracts shall be formal written agreements executed by the city manager on behalf of the city. The signature by the city manager constitutes his or her certification that there remain unexpended and unapplied balances of the appropriations or funds applicable to the contract sufficient to pay the estimated expense of executing the contract.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3); 15378 (b) (2).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The Fire Department has an ongoing requirement for fire prevention billing services to recover costs associated with the implementation of the City’s Fire Prevention Inspection program. This program inspects thousands of buildings and businesses that are required to undergo fire inspections in accordance with the California Fire Code, California Building Code, and local ordinances. These inspections generate numerous invoices for cost recovery purposes.
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FinancialConsiderations
Financial Considerations: The annual cost of the contract is approximately $100,000. Sufficient funding is available in the Fire Department’s Fiscal Year (FY) 2025/26 operating budget to make purchases through June 30, 2026.
Purchases made on the contract after June 30,2026, are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived as the city has suspended competitive bidding and utilized an alternate procurement method to select a vendor(s). Fire Recovery USA, LLC is not an LBE.
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Background
The delay in the RFP closing in January 2025 and the FD going to council now was for several reasons. First, the FD fiscal unit was short staffed for six months at the beginning of 2025 and did not have enough staff to facilitate contract negotiations with potential contractors. Secondly, once staff had the bandwidth to research companies who would be able to provide billing services compatible with ImageTrend platform and provide the necessary services for Fire Prevention billing there was a company identified, Wittman Enterprises. Unfortunately, during contract discussions, they became unresponsive after multiple follow-ups by email and phone calls. Staff then identified Fire Recovery USA, LLC as a company that demonstrated the capability and capacity to meet the department’s needs. Staff worked with Fire Recovery USA, LLC and the City Attorney’s Office to get an approved to form contract to seek Council approval.
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