Chatham fire fee confusion: Why has Chatham Commission issued a payment deadline extension?

The Chatham Commission will provide relief for unincorporated residents upset over the implementation of the new fire services fee.

The fee funds fire services provided by Chatham Emergency Services, which formerly operated on a subscription basis and billed property owners directly.

The county has extended the due date for bills to Jan. 17, an increase from 30 days to 60 for most residents. The fee can be paid in installments, so long as it is paid in full by Jan. 17.

"Yes, your bill is due 30 days after the billing date, however, no late fee will be assessed on bills paid by January 17, 2023," county spokesman Sean Evans said in an email.

Commissioners discussed the fire fee billing deadline before and during their regularly scheduled meeting on Friday. Multiple commissioners said residents had complained to them about the implementation of the fee. Assistant County Manager Linda Kramer said the county has fielded 462 emails and over 50 voicemails from residents concerned about the new fee.

The collection agency contracted by the county to collect the fire service fee, Lifequest, is based out of Wisconsin, which commissioners said had residents questioning the validity of the bill, concerned it could be a scam.

District 5 Commissioner Tanya Milton said some residents' fees went from $2.62 to $100.

District 2 Commissioner Helen Stone said the online payment and QR code implementation on the bill sent to unincorporated residents was "unfair" to elderly residents who are unfamiliar with technology.

District 6 Commissioner Adot Whitely said because the implementation of the fee through Lifequest was a brand new initiative, problems were to be expected. He said there was no reason to expect the first collection of the fee to be "all milkshakes and Marlboro lights."

Chairman Chester Ellis asked interim County Manager Michael Kaigler if it were possible to "slam on the brakes" with the implementation of the fee, but Kaigler said since the contract with Lifequest is for one year, it would be at least that long before a new solution could be put into place.

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Chatham County Chairman Chester Ellis
Chatham County Chairman Chester Ellis

Why is there a fire fee

The fee includes a flat $100 charge for land and a second charge based on the square footage of residents' improved property as recorded by Chatham County Board of Assessors records. Previously, the bill was calculated based on property value.

The cap for the fee is $10,000, which Chatham Emergency Services CEO Chuck Kearns said is lower that the previous collection done by the department. Kearns said some large apartment complexes paid as much as $50,000 for fire services under the previous system.

The square footage part of the fee works on a tiered rate: Properties measuring up to 499 square feet charged $100; 500 to 999 square feet, $125; 1,000 to 1,999 square feet, $175; 2,000 to 2,999 square feet, $250; 3,000 to 3,999 square feet, $400.

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More: Survey: Unincorporated Chatham residents split when it comes to possible fire fee

What about the fire department?

Chatham Emergency Services has two divisions, including Chatham Fire, which was formerly known as Southside Fire. Chatham Emergency Services is a private business that long operated on a subscription-based revenue model. The department services about 36,000 properties in the unincorporated area, but only about 28,000 of those were paying their fire service subscription prior to the implementation of the county fee.

The non-paying customers were discovered in 2019 after Chatham Fire switched billing software. Officials took their concerns to county leadership, which prompted numerous workshops, district meetings and a resident survey.

The county explored several different options, including a fire fee charged on county property tax bills, developing fire service contracts and the county forming its own fire department.

In December, commissioners approved a contract with Chatham Fire for fire protection services, making the department a vendor instead of a service provider.

Under the contract, Chatham Fire ceased its fire subscription billing effective Dec. 31 and the service period for subscriptions will terminate on June 30, 2022. The department will provide customers with pro rata refunds for the portion of their paid subscription applicable to the service period after June 30, 2022.

Starting in February, Chatham Fire began providing the county with an invoice for actual fire service expenses incurred during the previous month. The department is also required to provide an annual budget to the county manager each March for the annual period starting July 1 along with quarterly financial and operating reports.

In May, Chatham Commission nixed the possibility of a fire ordinance for unincorporated residents, and instead instructed county staff to make plans to fully fund Chatham Fire and implement a fire fee starting this year.

Will Peebles is the City Council and County Commission reporter for Savannah Morning News, covering local Savannah and Chatham County decisions. He can be reached at wpeebles@savannahnow.com or on Twitter @willpeeblesSMN

This article originally appeared on Savannah Morning News: Chatham County FIre Fee collection deadline expanded to January