City admits failure to collect permit fees, denies other accusations

The following letter was forwarded to NewsLanc:

“Apparently, for at least 3 years, the city has failed to collect a number of permit fees charged by the Fire Bureau when persons apply for a UL fire alarm permit.  These permits require an annual inspection from the Fire Bureau.  This information was revealed to the fire bureau’s new secretary today by administration staff who wished for her to ‘get on it.’  She’s only been a staff person at the Fire Bureau for 4 months.

“The amount that has gone uncollected:  more than $100,000.

“Feel free to distribute this information.

“Additionally, I have confirmed that the current city administration has never applied for a SAFER or AFG grant to help fund FD operations. http://www.firegrantsupport.com/prog/

“These grants could have been used this year, or applied for next year to offset millions of dollars in costs to the city.

“The city hasn’t sought federal stimulus money either.  A friend of mine in the Reading fire department is likely going to get to keep his job because of a $2.5 million infusion of federal stimulus money.

“This administration has been very lazy in finding money to offset personnel costs.  It is disturbing that the city could come up with grants for lights at a garage, an arts director, sidewalks and streetscape improvements and all the other nice, but non-essential projects that have cropped up in the past few years, but it couldn’t find a single dollar to help the fire department.”

The following response was provided to NewsLanc by Patrick S. Hopkins, City Administrator:

“I have reviewed the email you were sent and we’ve done some research into the fire inspection permit fees and the grants.

” In response to the issue of unpaid fire permit fees, it is accurate that there are unpaid fire permit fees that date back to at least 2006.  This problem was identified when we began the process of reforming the entire fire permit issuance process.  Prior to this reform, permits like those for fire alarm systems were sent out at the same time as the invoice.  So permit holders had their permit in hand without first paying the fee.  Some permit holders took advantage of this and left their permit fees unpaid.  Since identifying this problem, among others, in the permitting and invoicing system we have worked to develop an entirely new system.  Permit holders are now sent a billing for their next annual permit 2 months prior to the expiration of their current permit.  A new permit is only issued upon payment of the invoice.  A second invoice is sent 30 days prior to the current permit expiration date.  If a permit lapses due to non-payment the Fire Marshal’s office will take steps to ensure that the building in question complies with the International Fire Code and City Ordinances relating to required permits.

“As of this date, there are outstanding permit fees of approximately $70,000 from the past several years.  Since getting a handle on the scope of the problem we have revamped our systems.  We have also recently gotten approval from City Council to be able to send outstanding unpaid fees to a collection agency.

“On the issue of grants to support fire operations, it is true that we have not applied for grants that would support firefighter salary expenses.  The problem, from a financial perspective, of grants that support salaries is that they induce a municipality to incur future expenses when the municipality may have no ability to pay those expenses.  The SAFER grants that have been available will cover all or a portion of firefighter salaries for a period of 2 years and then 100% of the ongoing costs must be paid for by the municipality.  If we do not have sufficient funding to pay the salaries of additional firefighters now, how are we going to have sufficient funding two or three years in the future?

“However, the City Fire Bureau has applied for other grants for equipment in each federal grant round starting in January 2007.  This includes the following grants applied for:

• January 2007 – Fire prevention safety grant – $110,000
• May 2007 – Assistance to Firefighters Grant for computers and software – $140,000
• November 2007 – Fire Prevention and Safety Grant for smoke detectors – $20,800
• April 2008 – Assistance to Firefighters Grant for emergency generators at 3 City fire stations – $208,100
• May 2009 – Assistance to Firefighters Grant for protective gear – $208,100
• May 2009 – Assistance to Firefighters Grant for fire station rehab – $1,000,000

“Of the above grants applied for, the City only received funding for $100,000.

“On the issue of the City of Reading receiving grants, the information you received is false.  Chief Gregg has talked with the Fire Chief in Reading and Mayor Gray has discussed the issue with Mayor McMahon.  Reading has neither applied for nor received any grants to support firefighter staffing.  One of the reasons Reading may decided to reduce the number of firefighter layoffs is because their current labor contract has a clause which requires a minimum on duty staffing of 22 firefighters.  Reducing the overall number of firefighters may be financially counterproductive if the minimum staffing requirements would cause overtime to skyrocket.  This article from the Reading Eagle published on November 11th addresses this issue in more depth: http://readingeagle.com/article.aspx?id=165849

“I hope this response provides the additional information you were looking for. I’m sure you understand that when difficult decisions have to be made, those affected by those decisions may try to sway public opinion with information that doesn’t tell the whole story.  I appreciate your providing us with the text of the email you received and allowing us ample time to response to inaccurate information.

“Please contact me if you have any other questions.”