Chamber urges Fitial to withdraw, amend new fire fee rates

The Saipan Chamber of Commerce is asking Gov. Benigno R. Fital that the newly adopted fire safety regulations that require $500 for permitting and re-inspection, among other things, be withdrawn and amended “to truly reflect the actual costs associated with necessary, responsible and valuable fire inspections and permitting for all CNMI commercial establishments.”

The Chamber also told the governor that the Department of Public Safety’s Fire Division has been inspecting, re-inspecting and permitting under the proposed regulations in early December 2011, “before the proposed regulations were printed on Dec. 29, 2011 [in the Commonwealth Register], and almost two months before the proposed regulations would have become permanent on Jan. 30, 2012.”

Douglas Brennan, Chamber president, said of greater concern to the Chamber and its smaller member companies are “increased costs associated with required fire code permits, inspections themselves, and any further re-inspections of commercial establishments operating outside compliance with CNMI fire code regulations.”

The Chamber president said while the business organization has always believed that fire code inspection and enforcement promotes fire safety, it believes permit and inspection fees proposed to take effect today are “draconian, and above an acceptable range businesses should be charged at any time, let alone during this harsh economic recession.”

“SCC is not saying we have a rogue fire chief gone mad, but $500 for permitting every year, $500 for an inspection every year and another $500 for re-inspection at a business establishment is much more than actual costs associated with the CNMI DPS Fire Division conducting inspections and permitting,” Brennan told the governor.

Thomas Manglona, chief of the Department of Public Safety’s Commonwealth Fire Division, said while they have started inspections and re-inspections, they are “not yet” requesting businesses to pay the fine.

But businesses interviewed said the Fire Division has been implementing fees and fines even before the regulations containing revised rates were to take effect today. They have been asked to pay for fire permit of $500 and re-inspection fee of $500, and are faced with additional fines for not complying with violations found.

The Chamber said the CNMI Fire Division is expected to collect some $4.5 million a year with permitting, inspections, and re-inspections based on Commerce data showing over 3,000 commercial establishments in the CNMI.

Brennan said that figure does not include instances where additional permits would be required for Christmas trees, candles on the premises and other specific fire code allowances assessed additionally for compliance.

“Recent press articles have quoted the CNMI Fire Division as saying costs associated with saving human lives are never too high. We agree, but at $4,500,000 per year in fire code permitting and inspection rates, it begins to appear as the newly adopted fees are arbitrary and capricious at best,” he said.

The Chamber also believes all enforcement and inspections are necessary and will prevent fires from occurring, “but more enforcement work should be done in assessing how those fires were started in the first place.”

“SCC knows most of those fires were residential, while arson has been identified in some cases. It is erroneous to believe increasing fee costs for permitting and inspections will decrease fire incidents,” Brennan told the governor.

He also said businesses cannot continue to endure additional burden affecting the cost of doing business in the CNMI.

“These new fee schedules are just plain too much,” he added.