2017-060 ISO RatingDate: August 18, 2017 Report No. 2017-060
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Improved Insurance Services Office (ISO) fire protection rating effective December 1, 2017.
EXECUTIVE SUMMARY:
ISO is the leading supplier of statistical, underwriting, and actuarial information for the
property/casualty insurance industry. Most insurers use the Public Protection Classification
(PPC) for calculating premiums for residential, commercial, and industrial properties.
ISO completed an analysis of the structure fire suppression delivery system provided in Denton
and recommended a classification of 2/2Y/10, enhanced from Denton’s previous classification of
3/10. On July 31, 2017, the Texas Department of Insurance and State Fire Marshal’s Office
accepted this recommendation with an implementation date of December 1, 2017.
With a split Class 2/2Y, all properties located within 1,000 feet of a fire hydrant or water supply
point and within 5 miles of a fire station will use Class 2. All properties located farther than
1,000 feet of a fire hydrant or water supply and within 5 miles of fire station will use a Class 2Y.
A rating of Class 10 remains for those properties located more than 5 miles from a fire station.
As a result of this favorable change, businesses and residents of Denton may expect up to an
approximate 2 percent rate reduction for commercial properties, while residential rates may
decrease by approximately 8 percent.
The Public Protection Classification is based on a combined analysis of a municipality’s water
distribution system, fire protection resources, 911/Communications system, and fire prevention
programming. A city’s water distribution system represents approximately 40 percent of the
overall rating. Contrasted with the last ISO evaluation over 10 years ago, it was the
improvements in the water distribution system that made it possible to improve the City of
Denton’s rating.
BACKGROUND:
The last ISO study of the City of Denton was completed in May 2004 resulting in a split rating of
3/10. The 3 classification relates to those areas in the core of the City. The rating of 10, the least
favorable available rating, applies to those areas of the City more than five miles from an
existing fire station. Since 2004, only one additional fire station has been constructed, Fire
Station #7 at 4201 Vintage Parkway. The new 2017 classification improves from 3 to 2/2Y, but
retains the 10 classification for areas still beyond five miles from an existing fire station.
Date: August 18, 2017 Report No. 2017-060
DISCUSSION:
Overall, the new classification represents a positive outcome from investments in water
infrastructure. The classification study also offers insight into deficiencies within the Fire
Department service level that will be factored into ongoing strategic planning efforts. The total
points available for fire service is 50. Denton’s fire service was rated at 38.86. Most notably,
the credit available for engine companies is 6; our rating is 2.57. The credit available for ladder
trucks is 4; our rating is 2.88. The credit available for deployment analysis (our ability to
assemble an effective response of engines and ladder within defined response time parameters) is
10; our rating is 5.31.
The Denton Fire Department, in a coordinated effort with the Mayor and City Council, has
developed aggressive strategies to prepare for future growth with innovative approaches that
have included placing new Medic Units in service, land banking locations for future fire stations,
and improved technology directed toward enhanced response times.
In addition, the City of Denton has entered into a creative partnership with the Denton County
Emergency Services District #1 that has advanced the construction schedule for a station
southwest of Denton in Northlake. ESD #1 will supplement first response services to the Robson
Ranch area of our City. The opening of the new station, scheduled for Fall 2018, will permit us
to capture our service contract in an addendum to the ISO evaluation improving that area of
Denton from their current 10 ISO designation to ISO 2.
The Fire Department will prepare a November press release announcing the positive change to
advise our citizens of this opportunity. In addition, at that time messages will be sent to a
distribution list of area insurance providers alerting them to the change in classification approved
by the Texas Department of Insurance.
STAFF CONTACT:
Robin Paulsgrove
Fire Chief
(940) 349-8840