RI Court Upholds Ability of Fire Districts to Charge Plan Review Fees

A Rhode Island superior court judge has ruled that a local fire district can charge a plan review fee, and in doing so it is not bound by a local municipality’s valuation method for determining the amount of that fee. The suit was brought by UTGR, Inc., the company that operates Twin Rivers Casino in the town of Lincoln.

UTGR submitted plans for a $50,500,000 construction project to the Lime Rock Fire District. Lime Rock Fire District is located within the town of Lincoln. Pursuant to the LRFD Rules and Regulations for Plan Review Submittals, LRFD charged UTGR $203,033 for plan review. The fee was based upon the valuation that UTGR submitted. UTGR objected to the amount claiming that the fee would be $43,477.01 if the fire district used the valuation method that the town of Lincoln used pursuant to its local building code ordinance.

UTGR paid the $203,033, and filed an appeal with the Rhode Island Fire Safety Code Board of Appeal and Review challenging LRFD’s right to charge a fee at all, and alternatively arguing that if the district could charge a fee, by state law any fee imposed had to follow a valuation method established by municipal ordinance. Since LRFD could not enact municipal ordinances itself, it was required to follow the town’s ordinance.

The Board of Appeal and Review upheld the fire district’s authority to assess a plan review fee and concluded LRFD was not bound by the town’s ordinance for calculating the valuation of the project. The Board concluded that LRFD’s Rules and Regulations for Plan Review Submittals was a municipal ordinance under the state fire code. That prompted UTGR to file suit in Superior Court seeking declaratory relief, and a refund of $159,555.99 from LRFD.

The court initially discussed the basis for declaratory relief jurisdiction, and after concluding it had the jurisdiction to issue declaratory relief, held as follows:

• This Court grants the request for declaratory relief, finding that pursuant to Rhode Island Fire Code Regulations § 1.14.3.4, LRFD is authorized to collect fire plan review fees, provided such fees do not exceed the amounts set forth in § 23-28.2-26.
• This Court further declares that Defendant LRFD can determine “cost of construction” as provided in the Lincoln ordinance or can determine “cost of construction” based upon project information available to LRFD, including information provided by an applicant requesting plan review.
• In accordance with § 23-28.2-26, Albert Ledoux of the Lime Rock Fire District was a duly appointed and certified Assistant Deputy State Fire Marsal authorized to review fire plans and collect fees.
• Assistant Deputy Ledoux conducted the fire plan review with respect to UTGR’s project.
• While Plaintiff urges that the statute authorizes the State Fire Marshal’s Office to collect fire plan review fees, Assistant Deputy Ledoux is duly certified and appointed to enforce the Fire Safety Code and conduct fire plan reviews.
• Next, UTGR contends that if LRFD has authority to collect plan review fees, the fees must be calculated in accordance with the Lincoln Ordinance and not the LRFD FPR Regulation.
• As support for this assertion, Plaintiff relies on the language in Fire Code Regulation § 1.14.3.4 that fire plan review fees “may be collected by the Assistant Deputy Fire Marshals of the municipal fire departments and/or fire districts, pursuant to municipal ordinance.”
• Nevertheless, LRFD is an independent municipal entity, that is separate from the Town of Lincoln.
• As such, when determining the “cost of construction,” LRFD is not obligated to follow the Lincoln town ordinance because it is an independent quasi-municipal entity.
• Moreover, this Court must give deference to the Fire Board’s decision that “the municipal ordinance applicable in this matter is the LRFD Rules and Regulations titled Plan Review Submittals.”
• As such, the regulation LRFD adopted was properly applied, giving deference to the Fire Board’s determination.
• For the above reasons, this Court grants the request for declaratory relief, finding that pursuant to Rhode Island Fire Code Regulations § 1.14.3.4, LRFD is authorized to collect fire plan review fees, provided such fees do not exceed the amounts set forth in § 23-28.2-26.
• This Court further declares that Defendant LRFD can determine “cost of construction” as provided in the Lincoln ordinance or can determine “cost of construction” based upon project information available to LRFD, including information provided by the applicant requesting plan review.

Here is a copy of the ruling: