C- N~) DC) — Residential Fire Safety Advisory Committee do Honolulu Fire Department 3375 Koapaka Street, Suite H-425 — ~ — Fr: rrn rr~ ~=‘ Honolulu, Hawaii 96819-1869 = - zC) May3l,2005 ~CD ~c N~) CD F The Honorable Donovan M. Dela Cruz, Chair and Members of the City Council City Council City and County of Honolulu Honolulu, Hawaii 96813 C) Dear Chair Dela Cruz and Council Members: The Residential Fire Safety Advisory Committee (RFSAC) was established by Resolution No. 04-334, CD 1, to explore options, requirements, time frames, costs, incentives, and benefits regarding residential high-rise building safety applications. The RFSAC’s findings are as follows: 1. The installation of an automatic fire sprinkler system and other life safety systems in existing residential high-rise buildings, presently not required, would significantly reduce the life safety and property damage risk from the consequences of fire. 2. The adopted Building Code of the City and County of Honolulu requires the installation of automatic fire sprinklers and other life safety systems in new residential high-rises. The adopted Fire Code of the City and County ofHonolulu requires the retrofitting of automatic fire sprinklers and other life safety systems in existing high-rise hotel and business buildings. 3. During 2000-2004, fires within the City and County ofHonolulu in single-family homes accounted for 43% of the structure fires, 59% of the property damage, and 95% of the fatalities. Fires in high-rise buildings accounted for approximately 3% of the total structure fires and approximately 5% of the total property damage. There were no fatalities as a result of fires in high-rises during this time period. There were five injuries, whichrepresent approximately 3% of those injured in fires. Fire damage estimates in high-rise buildings with sprinklers were $175,410 or 1% of the total property damages. Fire damage estimates in high-rise buildings without sprinklers were $2,770,420 or 5% of the total property damages. A Structure Fire Report for the years 2000-2004 is attached (Attachment A). 4. Two listings compiled by the Department of Planning and Permitting (DPP) for approximately 300 nonsprinklered residential high-rise buildings are attached (Attachment B). The DPP estimated that there are 147,064 one- and two-family dwellings within the City and County of Honolulu. ~ Corn. No. ~Lt~S The Honorable Donovan M. Dela Cruz, Chair and Members of the City Council Page 2 May 31, 2005 5. Based upon a list from the DPP regarding unsprinklered residential high-rise buildings, the Department of Budget and Fiscal Services (BFS), Real Property Assessment Division, estimates that there are approximately 24,612 individual residential high-rise dwelling units within the City and County of Honolulu. This means that there are approximately seven times more one- and two-family dwellings than there are high-rise units. 6. A cost analysis of four representative residential high-rise buildings provided by S.S. Dannaway Associates, Inc. is attached (Attachment C). The analysis is based on the best available information, given the current rise in construction activity and material costs. The fire sprinkler costs are also based on steel pipe installation and will be less if approved plastic piping is utilized. 7. The Hawaii Insurance Bureau (HIB) provided loss cost estimates for three highrise residential and three high-rise hotel buildings (Attachment D). The loss costs represent an actuarial estimation of future costs of claims and are not the final insurance premiums. The threeresidential buildings had an average decrease of 12.9% for the building structure and an average increase of3l.9% for the building contents of loss costs when a sprinkler credit was applied and then removed. 8. The Honolulu City Council and the Hawaii State Legislature should consider enacting legislation to provide incentives to owners of residential structures who are willing to install fire sprinklers. Such installations will not only reduce property damage and save lives but also provide additional revenue from taxes paid by businesses involved in the installation of fire sprinklers. The RFSAC discussed the following possible incentives to mitigate the costs of retrofitting residential high-rise buildings with automatic fire sprinklers and other life safety systems. Please note that these incentives do not reflect an agency’s support or opposition for any of the listed incentives. 1. Incentive: Extend compliance period to 10-15 years. In the event of a fire, enclosed corridor buildings present a greater hazard to occupants due to the spread and confinement of heat and smoke within the building. These buildings would be given a shorter compliance period. Open corridor buildings present a lesser degree of hazard by allowing venting to the outside atmosphere. The extended compliance period would also allow the existing labor force to complete a retrofit ordinance. Approval Authority: Honolulu Fire Department (HFD) and City Council Benefits: Owner and Contractor The Honorable Donovan M. Dela Cruz, Chair and Members of the City Council Page 3 May 31, 2005 2. Incentive: Real property tax credit/exemption time limit. This one-time or multiple-year credit/exemption would require proof of the completed sprinkler installation. The BFS would determine the amount of the credit/exemption. The credit would be deducted from the property tax; an exemption would be an upfront dollar amount. - Approval Authority: BFS Benefits: Owner 3. Incentive: Property lien to pay upon sale/transfer. A funding source (i.e. general obligation bond) would be used to fund the cost of the sprinkler installation for qualified persons. A lien that would be paid when the property is sold or transferred would be placed on the property. A process to have this lien paid as first priority would have to be established. Approval Authority: BFS Benefits: Owner 4. Incentive: Fire insurance savings. Determining a percentage of increase or decrease in fire insurance premium amounts was not established. By applying a loss cost estimate, three representative residential high-rise buildings had an average decrease of 12.9% in future costs ofclaims for the building structure and a 31.9% average increase for the building contents. Approval Authority: Industry Benefits: Owner 5. Incentive: Water meter fee reduction. The Board of Water Supply (BWS) indicated that in most cases, a dedicated water meter is required for sprinkler systems. Of the approximately 300 nonsprinkleredbuildings that the BWS reviewed, approximately 250 would need some type of fire service system (i.e., new meters). The BWS charges for the cost of the meter, but not for any water used for fire protection purposes. Costs vary depending on the meter size that is required. The current one-time charge is $21,000 for an 8-inch meter, $12,100 for a 6-inch meter, and $5,600 for an 4-inch meter. Approval Authority: BWS Benefits: Contractor and Owner The Honorable Donovan M. Dela Cruz, Chair and Members of the City Council Page 4 May 31, 2005 6. Incentive: Building permit fee reduction. Paying a building permit fee and for the permit processing would add to costs for retrofitting with sprinklers. For example, the permit fee for a $1 million project would be $7,415. Any permit fee reduction would require City Council approval. The DPP has enforcement powers with respect to compliance issues such as mandatory retrofitting. Lessees and lessors must both be responsible for compliance. Civil fines for noncompliance are possible. Approval Authority: City Council Benefits: Owner and Contractor 7. Incentive: State tax credit. H.B. 1448, H.D.2 (Attachment E) proposed a $1,000-per-year-for-five-years credit for the installation of sprinkler systems for owners of apartments built before 1975 or in single-family dwellings. The proposal passed the House but died in the Senate. The State was not in a financial position to give such a credit. Much more support will be required to pass such a proposal. Approval Authority: State Legislature Benefits: Owner 8. Incentive: Federal tax accelerated depreciation. H.R. 1131 (Attachment F) and S512 propose to amend the Internal Revenue Code to classify fire sprinkler systems as a five-year property for depreciation purposes. The current depreciation rate is 27.5 years for residential rental property and 39 years for business property. The proposal would increase the rate ofreturn on the sprinkler installation cost for high-rise buildings, residential occupancies up to and including four stories, and in one- and two-family dwellings. Support through Federal senators and representatives would be necessary. Approval Authority: U. S. Congress Benefits: Owner 9. Incentive: City-Sponsored low interest loans. Many apartment and condominium residents are owner/occupants on fixed incomes. Low interest loans will be needed to assist these owner/occupants. Approval Authority: City Council Benefits: Owner The Honorable Donovan M. Dela Cruz, Chair and Members of the City Council Page 5 May 31, 2005 10. Incentive: Remove the wet standpipe system (WSS). All high-rise residential buildings without sprinkler systems have a WSS. These include hose cabinets in common areas and are an available water supply for fire fighting by occupants or fire fighters. The hoses require an annual maintenance check and the WSS requires a five-year maintenance test. Upon approval from the DPP, the WSS may be removed (thus eliminating maintenance costs) after the installation of a sprinkler system. Approval Authority: DPP Benefits: Owner 11. Incentive: Eliminate elevator upgrade. The installation of a sprinider system may require upgrading the existing elevators. Exceptions to the upgrade may be allowed if National Fire Protection Association 13 Standard criteria are met. Approval Authority: DPP Benefits: Contractor and Owner We hope the above information will be of assistance to you in determining whether an ordinance to retrofit residential high-rise buildings with automatic fire sprinklers should be introduced. Should you have any questions or wish to discuss this further, please call Chair Rogers at 831-7778. LLOYD D. ROGERS, RFSAC Battalion Chief, BFD ir and President, SAM DANNAWAY, S. S. Dannaway RFSAC Ass~s, emb Inc. and ROBERT RNANDEZ, RFSA~vIemberand Member, Hawaii Building Tradth’Council TIMOThY HIU, RFSAC Member and Acting Building Division Chief, DPP T. ~~~~TFSACMemberand dmi istrator, , eal Property Assessment Division RICHARD PORT, RFSAC Member and Board Member, Hawaii Council of Association of Apartment Owners The Honorable Donovan M. Dela Cruz, Chair and Members ofthe City Council Page 5 May 31, 2005 10. Incentive: Remove the wet standpipe system (WSS). All high-rise residential buildings without sprinkler systems have a WSS. These include hose cabinets in common areas and are an available water supply for fire fighting by occupants or fire fighters. The hoses require an annual maintenance check and the WSS requires a five-year maintenance test. Upon approval from the DPP, the WSS may be removed (thus eliminating maintenance costs) after the installation of a sprinider system. Approval Authority: DPP Benefits: Owner 11. Incentive: Eliminate elevator upgrade. The installation of a sprinkler system may require upgrading the existing elevators. Exceptions to the upgrade may be allowed ifNational Fire Protection Association 13 Standard criteria are met. Approval Authority: DPP Benefits: Contractor and Owner We hope the above information will be of assistance to you in determining whether an ordinance to retrofit residential high-rise buildings with automatic fire spriniders should be introduced. Should you have any questions or wish to discuss this further, please call Chair Rogers at 831-7778. LLOYD D. ROGERS, RFSAC Chair and Battalion Chief HFD SAM DANNAWAY, RFSAC Member and President, S. S. Dannaway Associates, Inc. ROBERT FERNANDEZ, RFSAC Member and Member, Hawaii Building Trades Council TIMOTHY HIU, RFSAC Member and Acting Building Division Chief, DPP GARY T KIJROKAWA, RFSAC Member and Administrator, BFS, Real Property Assessment Division RICHARD P0 T, RFSAC Member and Board Member, Hawaii Council of Association of Apartment Owners The Honorable Donovan M. Dela Cruz, Chair and Members of the City Council Page 6 May 31, 2005 • ~ KEITh SHIDA, RFSAC Member and Principal Executive, Customer Care Division, BWS KENNETh G. SILVA, RFSAC Member and Assistant Chief, HFD ~ Preside t, Hawaii Coun Apartment Owners ~ insurance Analyst, of Association of MARK YEE, RFSAC Member and Administrative Rules Specialist, State Department ofTaxation LR:lt Attachments , Inc. Attachment A National Fire Incident Reporting System City and County of Honolulu Structure Fire Report 2000-2004 Fires Total 2000-2004 Injuries % of Total ~ Injuries $57,235,859 % of Dollar Loss NA 153 NA 21 % of Total Fatalities NA 43% $33,827,254 59% 85 56% 20 95% 1,932 % of Total Fires NA 837 Dollar Loss Fatalities structure fires Singlefamily fires Multifamily 456 24% $8,911,850 16% 30 20% 0 0 fires High-rise fires 67 3% $2,945,830 5% 5 3% 0 0 High-rises 21 1% $175,410 1% 0 0 0 0 46 2% $2,770,420 5% 5 3% 0 0 310 17% $8,080,370 14% 17 11% 0 0 1,602 83% $49,155,489 86% 136 89% 21 100% with sprinklers High-rises without ~p!inklers Fireswith sprinklers Fires without sprinklers ~ Attachment B Addresses for Residential Properties with Non-Sprinkler Buildings** TAX MAP KEY ADDRESS NUMBER 11058002 11058009 11058010 11058011 11058011 11058013 11059026 11059028 11060008 11060011 11060012 11061015 11061015 11061020 11061024 11062001 11062005 11062007 11062009 11062018 11062018 11062019 11062019 11062019 11062042 11062049 11062051 11065001 11065029 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 13039001 ** 3030 5180 3148 3160 909 949 955 975 3139 3161 3215 801 805 3020 2977 1015 2889 2907 2929 2950 5358 2920 2940 5368 1031 1077 1099 1121 1128 427 1445 1472 1474 1475 1476 1478 1482 1483 1484 1485 1486 1488 1492 1494 1496 1498 1518 1520 1530 1531 1532 1538 11540 1545 11548 11550 ADDRESS SUFFIX STREET NAME [DIRECTION ALA ILIMA LIKINIST ALAiLIMA ALAILIMA ALA NANALA ALA NANALA ALA LILIKO~ ALA UUKOI ALA ILIMA ALAIUMA ALAIUMA ALANIOIPL ALANIOIPL ALA NAPUAA PL ALA ILIMA ALA NAPUNANI ALA IUMA ALA ILIMA ALA ILIMA • ALA ILIMA LIKINIST ALA ILIMA ALA ILIMA LIKINIST ALA NAPUNANI ALA NAPUNANI ALANAPUNANI. ALA NAPUNANI ALA NAPUNANI LINAPUNI ST LINAPUNIST LINAPUNI ST LINAPUNI ST LINAPUNI ST LINAPUNIST LINAPUNI ST LINAPUNI ST LINAPUNI ST LINAPUNI ST LINAPUNI ST LINAPUNI ST_________ LINAPUNI SI_________ LINAPUNIST LINAPUNI ST LINAPUNI ST LINAPUNI ST LINAPUNI ST UNAPUNI ST LINAPUNI ST LINAPUNIST LINAPUNI ST LINAPUNI ST LINAPUNI ST LINAPUNIST LINAPUNI ST LINAPUNI ST I . . All addresses for each property are listed, which may include dwelling unit addresses. 1 Addresses for Residential Properties with Non-Sprinkler Buildings** ‘1552 1554 1556 1558 11562 Ti 564 . ** 1566 1568 1570 1572 1574 1576 1578 1580 1582 1584 1586 1588. 1590 1592 2001 1409 1425 1465 1450 1220 1511 1515 1519 410 1308 1301 1307 1311 1512 625 1520 1516 1421 730 824 757 710 785 815 817 819 821 827 1220 818 920 1022 2011 2019 2029 2033 . . . . . V V . . LINAPUNIS LINAPUNI ST LINAPUNI S T LINAPUNI ST__________ LINAPUNIST________ LINAPUNI ST_________ LINAPUNJI ST_________ LINAPUNZIST________ LINAPUNI ST_________ LINAPUNI SI_________ LINAPUNIST LINAPUNIST LINAPUNIST LINAPUNI ST LINAPUNIST LINAPUNIST LINAPUNI ST LINAPUNIST LINAPUNI ST LINAPUNIST AUPUNIST LILIHAST LILIHAST MLAST AALAST AALA ST NUUANU AVE NUUANU AVE NUUANU AVE MAGELLAN AVE ALAPAI ST LUSITANAST LUSITANAST LUSITANAST ALAPAI ST IOLANI AVE WARDAVE WARD AVE ALAPAI STCAPTAIN COOK AVE KINAUST KINALAU PL LUNALILO ST KINAUST KINAUST KINAUST KINAUST KINAUST KINAUST WARD AVE KING ST S WARD AVE PROSPECT ST NUUANU AVE NUUANU AVE . NUUANU AVE INUUANU AVE All addresses for each property are listed, which may include dwelling unit addresses. V 2 Addresses for Residential Properties with Non-Sprinkler Buildings** ~2010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22010023 22020002 22020002 22020002 22020002 23006001 23017013 23017013 23018008 23018008 23018029 23019004 23019004 23019004 23019004 23019061 23019065 23019067 23021011 23021015 3021015 3021020 3021020 23021025 23021028 23021032 23022052 23023003 23023005 23034004 23034004 23036001 23036038 23036039 23036039 23036039 23041011 23041011 ** . - 2033 2033 2033 2033 2033 2033 2033 2033 2033 2033 2033 2033 2033 2033 2039 2039 2039 2039 2039 2039 21 38 2101 2103 1350 1560 1578 934 933 910 1541 1545 1551 1583 1650 1624 1610 731 738 750 781 1561 747 750 780 1655 1682 1670 620 623 419 419 1600 1650 359 1617 11620 A B C D E F G H I________________ J___________________ K L_________________ M N A B C D E . . . .. V V V . . . . A NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE NUUANU AVE CRAIGSIDE PL JUDD ST NUUANU AVE NUUANU AVE ALA MOANA KANUNUST KANUNUST KEEAUMOKU ST SHERIDAN ST AHANAST KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KANUNUST KANUNUST KANUNUST AMANAST KAHEKAST KAHEKA ST AMANAST ‘ KANUNUST AMANA ST AMANAST AMANA ST MAKALOA ST KALAKAUA AVE KALAKAUA AVE MCCULLY ST PUMEHANA ST ATKINSON DR ATKINSON DR ALA MOANA ALA MOANA ATKINSON DR KAPIOLANI BLVD KONAST All addresses for each property are listed, which may include dwelling unit addresses. V . . V V S V 3 Addresses for Residential Properties with Non-Sprinkler Buildings** 24003003 24003003 24007002 24008003 24009008 24009008 24011039 24012010 24012010 24012010 24012010 24012010 24012011 24012012 24013032 24013032 24013032 24013032 24013032 24013032 24013032 24013032 4013032 4013032 24013032 24013032 24013032 24013033 24013033 24013033 24013033 24013033 24014004 24014004 24014012 24014012 24014012 24014012 24014012 24014012 24014012 24014052 24014052 24014052 24015004 24015005 24015017 24015017 24015021 24015021 24015021 24015021 24015021 24015021 24015021 24015021 24015021 . 1150 1125 1212 1434 1323 1403 1212 1134 1134 1134 1134 1134 1122 1112 1048 1048 1048 1048 1048 1050 1050 1050 1050 1050 050 1054 1054 1040 1040 1040 1040 1040 930 1420 913 913 913 915 915 915 1425 924 1314 1314 1441 1456 915 927 902 910 912 914 916 1918 920 1515 1523 . . A B C D A B C D A B C D F A V A B C D V A B B V IS V V V V A B KING ST YOUNG ST PUNAHOU ST PUNAHOU ST MAKIKI ST MAKIKI ST KINAUST KINAUST KINAUST KINAUST KINAUST ~KINAUST KINAUST KINAUST KINAU ST KINAUST KINAUST KINAU ST KINAU ST KINAU ST KINAU ST NAUST NAUST V NAUST KINAUST KINAU ST KINAU ST KINAUST KINAUST KINAU ST KINAUST KINAUST LUNALILOST VICTORIA ST GREEN ST GREEN ST GREEN ST GREEN ST GREEN ST GREEN ST WARD AVE KINAU ST VICTORIA ST VICTORIA ST VICTORIA ST THURSTON AVE PROSPECT ST PROSPECT ST SPENCER ST SPENCER ST SPENCER ST SPENCER ST SPENCER ST SPENCER ST SPENCER ST WARD AVE WARD AVE All addresses for each property are listed, which may include dwelling unit addresses. 4 Addresses for Residential Properties with Non-Sprinkler Buildings** 24015021 24016004 24016005 24016014 24016023 24016023 4016043 4016043 4016045 4016045 24016046 24017002 24017002 24017005 24017005 24017005 24017006 24017056 24019010 24019015 24019017 24019034 24021039 24021039 24021039 24021039 24021039 24021039 24021039 24021039 24021054 24021054 24021054 24021057 24023005 24023005 24023013 24023014 24023014 24023014 24023014 24023026 24023033 24024014 24024014 24024022 24024022 24024029 24024029 24024029 24024029 24024029 24025021 24025021 24025022 24025039 24025067 V . 1523 .1069 1560 1025 1031 1039 1011 1013 1050 999 1001 1098 1400 1018 1020 1020 1020 1415 1535 1111 1121 1155 1447 1447 1447 1447 1451 1451 1451 1451 1569 1569 1309 1323 1805 1815 1710 1537 1541 1545 1836 1541 1550 1700 1710 1604 1634 1617 1627 1627 1438 1438 1628 1628 11620 1333 1716 A V . A , V V A B C A B C V - A V A . V . . A B A WARDAVE SPENCER ST THURSTON AVE WILDER AVE MAUNAIHI PL MAUNAIHIPL PROSPECT ST PROSPECT ST MAUNAIHI PL WILDER AVE WILDER AVE LUNALILO ST PENSACOLA ST LUNALILO ST LUNALILO ST LUNALILO ST GREEN ST VICTORIA ST PENSACOLA ST WILDERAVE WILDERAVE HASSINGER ST KEWALO ST KEWALOST KEWALOS KEWALOSI KEWALOST KEWALOST KEWALOST KEWALOST KEWALOST KEWALOST WILDER AVE WILDER AVE POKI ST POKI ST PUNAHOUST NEHOAST NEHOAST NEHOAST POKIST DOMINISST WILDER AVE MAKIKI ST MAKIKIST MAKIKI ST MAKIKI ST KEEAUMOKU ST KEEAUMOKU ST KEEAUMOKU ST WILDER AVE WILDER AVE KEEAUMOKU ST KEEAUMOKU ST KEEAUMOKU ST HEULU ST IKEEAUMOKU ST All addresses for each property are listed, which may include dwelling unit addresses. V V 5 Addresses for Residential Properties with Non-Sprinkler Building s~”~ 24025067 24025067 24025073 24028001 24028001 24028001 24028001 24029023 24029026 24030051 24030058 24030075 24030075 24030075 24030075 24030075 24031002 26002014 26002014 26002014 26002014 26003013 26003014 26003014 26003035 26003035 26004012 26007006 26007006 26007006 26007006 26007006 26007006 26008002 26008002 26009001 26010002 26010007 26011015 26011015 26011015 26011020 26011021 26011022 26011023 26011023 26011023 26012001 26012001 26012002 26012002 26012007 26012065 26012065 26013002 26013002 26013013 ** V V . V V 1718 1718 1310 1246 1248 1250 1702 1630 1616 1130 1650 1683 1683 1683 1687 1687 1010 2211 2215 2210 205 247 253 255 2164 203 2161 1915 1917 1919 1921 1923 1925 246 252 2003 1765 1777 1720 1720 1720 1696 1690 1684 1660 1676 1521 425 435 . 1860 405 1804 425 1435 469 456 1717 A . A B A V V - A B . V V KEEAUMOKU ST KEEAUMOKU ST HEULUST HEULUST HEULUST HEULUST KEWALOST LIHOLIHO ST LIHOLIHOST WILDER AVE PIIKOI ST PENSACOLA ST PENSACOLA ST PENSACOLA ST PENSACOLA ST PENSACOLA ST WILDER AVE HELUMOARD HELUMOARD KALIARD LEWERS ST BEACH WLK BEACH WLK BEACH WLK KALIARD SARATOGA RD KALIARD KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE PAOA PL PAOA PL KALIA RD ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALA MOANA ALAWAI BLVD ENARD ENA RD ALA MOANA ENARD ALA MOANA ENA RD ENARD ENARD ~HOBRONLN ALA WAI BLVD All addresses for each property are listed, which may include dwelling unit addresses. V V V V I . 6 AddresVses for Residential Properties with Non-Sprinkler Buildings** 26013014 26013014 26013014 26013014 26013018 26014026 26014026 26014026 26015001 26015001 26015001 26015001 26015001 26015001 26015001 26015001 26015001 26015001 26015001 26015002 26015009 26015012 26015025 26015026 26015030 26015030 26016001 26016001 26016001 26016001 26016001 26016001 26017004 26017016 26017031 26017051 26017053 26017057 26017060 -26018007 26018007 26018083 26018083 26019001 26019009 26019021 26019021 26020040 26020053 26020069 26021011 26021016 26021018 26021020 26021020 26021020 1715 1715 400 444 1645 1909 215 V 231 2028 2030 2032 2034 2036 2040 2042 2044 2046 2048 422 411 2029 454 419 425 439 445 2015 2085 2089 452 451 453 455 445 2115 440 2170 V V V 411 2140 430 320 328 334 336 364 342 2211 358 2222 2233 441 2375 444 441 431 432 436 V A V V V V ~V V V V V V ALAWAI BLVD ALAWAI BLVD HOBRON LN HOBRONLN ALAWAI BLVD ALA WAI BLVD MCCULLYST MCCULLYST V KUHIO AVE KUHIO AVE KUHIO AVE KUHIO AVE KUHIO AVE KUHIOAVE KUHIO AVE KUHIO AVE KUHIO AVE KUHIO AVE NAMAHANA ST KUAMOOST ALAWAI BLVD NAMAHANA ST KEONIANA ST KEONIANA ST KEONIANA ST KEONIANA ST ALAWAI BLVD ALAWAI BLVD ALA WAI BLVD KALAIMOKU ST OLOHANA ST OLOHANA ST OLOHANA ST KAIOLUST ALAWAI BLVD LEWERS ST KUHIO AVE KAIOLUST KUHIO AVE KAIOLUST LEWERS ST LEWERS ST LEWERS ST LEWERSST SEASIDEAVE SEASIDE AVE KUHIOAVE ROYAL HAWAIIAN AVE ALOHA DR ALA WA! BLVD LEWERSST ALAWA! BLVD KANEKAPOLEI ST WALINAST INAHUAST WALINAST IWALINAST All addresses for each property are listed, which may include dwelling unit addresses. V 7 Addresses for Residential Properties with Non-Sprinkler Buildings** 26021021 26021021 26021025 26021025 26021025 26021045 26021050 26021068 26021068 26021068 26021068 26021068 26021084 26021084 26021084 26021107 26021107 26021107 26021107 26021107 26021107 26021107 26021107 26021110 26023018 26023039 26023045 26023045 26023050 26023050 26023067 26023067 26023067 26023072 26023072 26023072 26023072 26024010 26024014 26024024 26024032 26024073 26024073 26024073 26024074 26024085 26024097 26025001 26025015 26025015 26025017 26025021 29025032 26025040 26025048 26025060 26025060 ** 12345 440 436 429 435 455 435 V V 437 437 437 445 447 V V V 2281 2283 2283 411 415 417 419 421 423 425 427 2355 2450 2424 2463 2450 2449 2463 V 415 419 425 465 2460 2462 2464 222 2442 2440 236 2421 2418 2422 2415 2465 225 2533 277 311 320 250 225 2509 303 2547 1330 V V A B V A V V V V V V V V ALA WA! BLVD WALINAST NOKONANI ST SEASIDE AVE SEASIDE AVE NAHUA ST WALINAST NOHONANI ST NOHONANI ST NOHONANI ST NOHONANI ST NOHONANI ST ALAWAI BLVD ALA WAI BLVD ALA WAI BLVD NAHUAST NAHUAST NAHUAST NAHUAST NAHUAST NAHUAS NAHUAST__________ NAHUAST VV ALA WAI BLVD V KOAAVE KOA AVE KUHIO AVE PRINCE EDWARD ST KUHIO AVE KUHIO AVE KUHIO AVE KUHIO AVE KUHIO AVE KUHIO AVE PRINCE EDWARD ST PRINCE EDWARD ST PRINCE EDWARD ST LILIUOKALAN! AVE KUHIO AVE V KUHIO AVE V LILIUOKALANI AVE ALA WAI BLVD TUSITALAST TUSITALA ST ALA WAI BLVD ALA WA! BLVD KAIULANI AVE V ALAWAIBLVD OHUAAVEV OHUAAVE OHUA AVE OHUA AVE LILIUOKALANI AVE ALA WAI BLVD LILIUOKALANI AVE ALA WAI BLVD IPAOAKALANI AVE All addresses for each property are listed, which may include dwelling unit addresses. VV ‘ V V V 8 Addresses for Residential Properties with Non-Sprinkler Buildings** 2500 103 107 204 2575 155 2555 V 134 129 240 320 320 320 2609 2027 2033 778 778 V V V A B 500 555 V 509 444 2440 845 2637 2651 2648 2525 2825 1941 910 754 V V V A B C 778 778 2333 796 2205 2211 V KALAKAUA AVE V KEALOHILANI AVE KEALOHILANI AVE MAKEE RD KUHIO AVE PAOAKALANI AVE CARTWRIGHTRD KAPAHULU AVE PAOAKALANI AVE MAKEE RD AINAKEA WAY AINAKEA WAY AINAKEA WAY ALA WAI BLVD V V V V V_________________ 1650 1617 1616 1215 1320 1414 1414 1414 1414 1414 1609 1411 1415 1617 1625 1621 1635 1639 V V V V V . V A B C D V V I DATE ST DATE ST WILIWILI ST WILIWILI ST WILIWILI ST WILIWILI ST KAPIOLANI BLVD SENBERG ST DATE ST DATE ST PAANISTHNL UNIVERSITY AVE UNIVERSITY AVE UNIVERSITY AVE HIHIWAIST DATE ST UNIVERSITY AVE KUILEI ST KUILEI ST V KUILEI ST DATE ST KING ST CHURCH LN KAPAHULU AVE EKELA AVE YOUNG ST BERETANIA ST YOUNG ST V ALEXANDER ST ALEXANDER ST ALEXANDER ST ALEXANDER ST ALEXANDER ST ALEXANDER ST ALEXANDER ST CLARK ST VHNL PUNAHOU ST PUNAHOU ST CLARKSTHNL CLARKSTHNL DOLE ST DOLE ST DOLE ST All addresses for each property are listed, which may include dwelling unit addresses. V 1 V V V V S V V S T V 9 Addresses for Residential Properties with Non-Sprinkler Buildings** 28012043 28012049 28012050 28012050 28012051 28012061 28023003 28023003 28023003 28023003 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 28029001 31032001 31032001 31032003 31032004 31032007 31032007 31032007 31032009 31032010 31032016 31032030 31033001 31033001 V V 31033009V 31033010 31033011 31033015 31033015 31033059 32005023 33005008 35016016 35017004 39008009 39035013 39070001 39070002 39070003 43054013 45033003 45039001 53008002 73012014 V 1639 1521 1529 1615 1535 1629 2444 V 2530 2540 2560 2421 2444 2485 2525 2555 2563 2569 2571 2575 2579 2583 2585 2591 2645 2997 2999 2979 2969 2873 2875 2877 2893 2895 2885 2943 2801 2809 3019 V 3015 3003 3056 3051 3065 1139 3350 4340 4300 500 250 6770 6750 6710 14 090 535 1567 1750 A V V V V V V V C V V V . V DOLE ST PUNAHOU ST PUNAHOU ST WILDER AVE PUNAHOU ST WILDER AVE DOLE ST DOLE ST V DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST DOLE ST KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUAVAVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE KALAKAUA AVE COCONUT AVE COCONUT AVE KALAKAUAAVE KALAKAUAAVE KALAKAUAAVE V V V V VV V ~V V V KALAKAUA AVE KIELEAVE KALAKAUA AVE 9TH AVE SIERRA DR PAHOA AVE WA!ALAE AVE LUNALILO HOME RD KAWAIHAEST HAWAII KAl DR HAWAII KA! DR HAWAII KA! DR AULIKE ST NAMOKU ST LULUKU RD KAM HWY WILIKINADR All addresses for each property are listed, which may include dwelling unit addresses. V 10 Addresses for Residential Properties with Non-Sprinkler Buildings** 73012014 74007001 74007001 74007001 74007001 84002010 84002010 84002010 4002010 84004014 84004014 84004014 94039048 94039083 94039083 94039083 94039083 94039083 94039083 94039083 94039083 94039083 95012017 95012017 95012017 95012017 95012017 95012017 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 V 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 95012030 97021020 1830 1060 221 225 229 680 710 V 740 770 965 975 1005 337 357 361 371 334 V V 336 338 340 344 346 014 020 045 055 061 065 2027 2027 2027 2027 2027 2031 2031 2031 2031 2031 031 031 2035 035 2035 2035 2035 2035 2035 2035 2039 2039 2039 2039 2039 2039 2039 2039 913 WILIKINADR KILANI AVE KOAST KOAST KOAST KILl DR KILl DR V V V V V V V V KILl DR KILl DR FARRINGTON HWY FARRINGTON HWY LAHILAHI ST PUPUMOMI 57 FARRINGTON HWY FARRINGTON HWY V FARRINGTON HWY PUPUMOMI ST PUPUMOMI ST PUPUMOMI ST PUPUMOMI ST V PUPUMOMI ST PUPUMOMI ST WAIHONUST WAIHONUST WAIKALANI DR WAIKALANI DR V WAIKALANI DR WAIKALANI DR WAIKALANI PL A WAIKALANI PL B WAIKALANI PL C WAIKALANI PL WAIKALANI PL D V WAIKALANI PL A WAIKALANI PL B WAIKALANI PL C__________________ WAIKALANI PL D__________________ WAIKALANI PL E__________________ WAIKALANI PL F___________________ WAIKALANI PL WAIKALANI PL A__________________ WAIKALANI PL B___________________ WAIKALANI PL C___________________ WAIKALANI PL D WAIKALANI PL E___________________ WAIKALANI PL F WAIKALANI PL WAIKALANI PL VG WAIKALANI PL A WAIKALANI PL 8 WAIKALANI PL c WAIKALANI PL D WAIKALANI PL E WAIKALANI PL F IWAIKALANI PL G WAIKALANI PL 4TH ST PC •~All addresses for each property are listed, which may include dwelling unit addresses. V V V V V V V 11 Addresses for Residential Properties with Non-Sprinkler BuildingS** 97021020 98012054 99003026 99040052 99040052 99040052 99064025 ** V 950 450 500 009 060 064 070 V 015 LEHUAAVE LP KOAUKA LP KALALOA ST KAU HALE ST KAU HALE ST KAU HALE ST KALALOAST All addresses for each property are listed, which may include dwelling unit addresses. V V 12 Attachment B Residential Properties with Non-Sprinkler BuiVldings* ~ Tax Map.Key ~r ~ Number of Floors Total Floor Area Year Built V 1973 11058002 11058009 11058010 12 17 0 1972 12 0 1973 11058011 20 16 0 0 1973 1972 8 0 1973 10 0 0 0 0 0 11058013 11059026 11059028 11060008 11060011 11060012 11060012 11061015 11061020 22 13 13 10 . 11062009 11062018 11062019 11062042 11062049 11062051 V V VV 11065029 13039001 V V V 21040037 21041013 1 Buildings built before 1975 with 8 or more floors. V 8 8 15 8 0 0 0 15 9 16 13 0 0 0 0 118 0 19 18 16 V V V 0 0 0 0 0 215730 0 0 0 V V V V0 . 0 V 1974 1971 1972 1972 1972 1972 0 0 0 16 9 19 23 22 15 15 15 12 23 23 21038008 21039002 21039004 21039012 2104.0001 * V 13 1 062007 21041024 - 9 V 11061024 11062001 11062005 13039001 16018084 17023008 17023036 17023039 17026006 17026006 17026006 21005004 21005004 21005004 21021045 21037001 0 1969 1971 1971 1972 1969 1972 1971 1969 1969 1971 V 1974 1971 1972 1963 1963 1969 1974 1971 1970 1967 1967 1967 1963 0 0 1963 1963 10 0 1968 8 0 1969 0 0 0 1962 1967 1972 8 14 8 V 8 0 1960 14 17 11 0 0 0 1974 1974 9 10 0 0 1974 1973 1973 1 Residential Properties with Non-Sprinkler Buildings* 21042001 V 21044033 22005004 18 12 V 16 25 9 22010022 22010023 22020002 V 23006001 23017013 23018008 33 17 8 V 23018029 23019004 23019061 23019065 V V V 23021015 23021020 23021025 23021028 23021032 23022052 23023003 23023005 2~034004 23036001 23036038 23036039 23041011 24003003 24007002 24008003 24009008 24011039 24012010 24012011 24012012 24013032 24013033 24014004 24014012 24014052 24015004 V V V V V V V VV 0 1965 1969 1971 0 0 0 ~V 1968 1964 V 0 1967 16 14 0 0 0 1969 1965 1966 1965 1967 VI 970 15 16 18 20 22 21 19 27 8 10 12 19 15 40 17 10 35 V V 1970 1971 1968 1972 1970 13 V 13 23019067 0 0 0 0 0 0 12 23019004 23021011 21 0 1595000 V 0 292000 V 0 0 0 0 0 0 0 0 0 154300 0 2651810 V V 1970 1968 1965 1967 1971 1971 1968 1964 V 1970 1959 1971 1970 1967 972 V 128 21 11 V V V 10 11 12 12 17 26 19 15 0 0 0 V V 1971 V 0 0 0 0 0 0 0 0 V 24015005 24015017 V 24015021 24016004 24016005 24016014 * Buildings built before 1975 with 8 or more floors. 14 15 0 0 16 12 12 13 0 0 0 0 1972 1973 1972 1972 1970 1973 1973 1968 1971 1968 1965 1971 1967 1967 1972 1965 2 Residential Properties with Non-Sprinkler Buildings* 24016023 11 24016043 11 12 24016043 24016045 24016046 24017002 24017005 17 13 17 V V 8 17 11 V V V V V 0 0 V V 24024029 24025021 24025022 24025039 24025067 24025073 24028001 24029023 24029026 V V V 0 0 0 969 0 V 13 0 10 0 1957 11 18 18 0 0 0 1965 1965 1965 9 9 12 8 22 0 0 0 0 0 0 0 0 0 0 1973 1971 1972 1967 1970 1964 1971 1972 1970 1973 1973 V V V 24031002 26002014 26003013 26003014 26003035 26004012 26007006 V - 12 V .. . 17 27 0 1973 264286 1968 31156 44731 0 0 192000 46640 1 959 1 961 1968 1959 1974 1960 24 358400 18 30 16 17 428186 42044 72300 92361 1966 1 967 1962 961 1961 V V 11 9 11 15 30 V V Buildings built before 1975 with 8 or more floors. 0 0 0 0 0 9 V 1970 1967 1970 1968 1971 1972 1973 1968 20 V 1970 1957 8 9 14 13 24030051 24030058 24030075 0 1969 1970 1969 23 15 - 1969 20 21 14 24024029 1963 1960 11 12 24024022 1971 1966 0 12 24023014 24023026 24023033 24024014 1969 1972 112920 0 0 . 22 V 24023013 26008002 26009001 26010002 2601 0007 26011015 26011015 0 V 12 24017056 24019034 24021039 24021054 24021057 24023005 0 V 24017006 24019010 24019015 24019017 0 0 0 3 Residential Properties with Non-Sprinkler Buildings* 26011020 10 16 16 V 26011021 26011022 26011023 V 0 0 0 0 0 437083 0 62400 16 ‘ 14 26012001 26012002 26012007 26012065 26012066 26013002 26013013 26013014 26013018 26014026 26015001 26015002 26015009 26015012 26015026 23 V 19 V V V 13 14 38 30 37 15 16 19 8 10 8 V V V 14 26015035 26016001 11 19 V 26017004 26017016 26017028 26017031 26017051 26017053 26017057 26017060 V V V 1959 0 0 324000 0 7410 108100 56960 0 0 0 . 1971 1969 1974 1966 V 1969 1967 1967 1970 1966 1970 0 0 V 12 15 V 1968 1969 1958 V 14 26015030 1960 1970 1968 1966 V 1970 1961 0 0 - 0 11 2500 15 9 8 25 12 8 0 0 0 0 0 V 1967 1954 1971 1964 1970 1959 40480 1959 1973 1961 1960 11 31000 1967 26019001 26019009.. 23 14 4022 71900 26019021 26020040 26020053 26020069 9 10 19 10 26018007 26018083 V V V V V V V V V V 1967 V 0 0 0 0 2700 V 1969 1960 1969 1969 1969 1970 26021011 26021016 26021018 26021020 26021021 14 15 10 17 0 1967 28 0 1974 26021025 26021045 26021050 26021068 15 10 0 0 1961 1969 26021084 26021107 * V V 1 1 Buildings built before 1975 with 8 or more floors. 3400 42350 1966 1969 V 0 12 16 102650 10 10 0 75000 1971 1967 V 1962 1959 4 Residential Properties with Non-Sprinkler Buildings* 26021110 26023018 26023039 26023045 10 10 I 8 12 26023050 12 26023067 1960 22940 49196 8119 12101 1960 1964 1974 1968 0 1450 0 0 0 1968 1970 1968 1966 1974 13 15 13 12 V 26023072 26024010 V 0 VV V 26024014 26024024 23 26024032 9 15372 1966 26024073 20 20 0 0 1970 1966 14 16 15 16 0 0 0 0 1968 1965 1970 1974 26025021 14 15 0 0 1970 1970 26025032 10 0 1960 26025040 10 0 26025048 12 0 26025060 10 26026014 26027002 27 174557 1967 1960 14 19 0 0 1967 1970 26027026 26027028 26027032 12 8 10 0 0 6541 26027037 26028001 9 24 0 0 26028019 26028035 26028037 14 8 11 0 0 0 27002014 27004001 8 36 0 642985 1971 1970 27006007 19 0 1973 27006022 9 0 1966 27013002 17 25 0 1969 0 1969 1971 1960 1974 26024074 V 26024085 26024097 26025001 26025015 26025017 V 27013002 27013008 27013011 27013023 27015004 27016019 27017020 27017039 27019015 27027023 * V V 26027003 V V V Buildings built before 1975 with 8 or more floors. . V V V VV 1973 1968 V 0 V V 1967 1971 1962 1964 1974 V 38 10 24 0 0 0 13 11 12 12 42 37 0 0 0 Oi 0~ 0 1967 1964 1968 1966 1972 1970 1970 1973 1971 5 Residential Properties with Non-Sprinkler Buildings* 27027025 V 27028020 V 27031017 27035015 V 0 1971 0 8 0 1970 1970 0 1972 0 9 28001037 28001042 28010024 28011006 28012014 28012022 28012025 28012036 28012043 28012049 8 10 12 0 13 14 11 10 9 13 14 16 0 0 0 1973 1964 1974 1970 1974 0 1973 0 0 1974 1973 1971 9 V V V V V . V V 0 0 V 1969 28012050 8 0 1967 28012051 28012061 28023003 28029001 28029001 28029001 28029001 28029001 31032001 31032003 31032004 31032007 31032009 31032010 31032016 31032030 31033001 31033009 31033010 9 12 13 10 0 1965 0 1966 0 0 1962 1962 13 0 1971 1971 1972 13 9 0 0 1972 1957 11 13 0 0 1960 1959 0 1960 0 1969 175627 1959 1967 1957 V 31033015 31033059 32005023 33005008 35016016 35017004 13 V V V V V V V r V V V 31033011 V 13 V V V V 16 8 21 13 12 8 13 10 12 9 V V V V V 0 0 57430 0 V V 1959 V 0 0 0 V . 0 0 0 1960 1965 1960 1967 16 88000 1959 1965 9 0 1965 24 27 0 0 1969 1966 35017004 39008009 39008009 14 9 9 0 0 0 1966 1973 1973 39035013 24 0 39070001 39070002 39070003 43054013 14 15 18 11 0 0‘ 0 0 1973 1974 1974 1974 * V Buildings built before 1975 with 8 or more floors. V 1966 6 Residential Properties with Non-Sprinkler Buildings* 45033003 45039001 53008002 . 73012014 74007001 V 84002010 84002010 84004014 94039048 94039083 95012017 95012017 95012030 97021020 V V V 14 9 9 208011 0 0 10 0 8 0 17 0 17 9 0 0 0 V 8 9 . 10 V 0 0 0 98012054 19 98030053 22 0 0 0 0 0 V V 99064025 * Buildings built before 1975 with 8 or more floors. 14 10 9 V V V 1974 1971 1972 1969 1969 1966 V 1970 0 0 11 10 9 99003026 99040052 1962 1966 1971 1972 1972 1973 1974 V 1974 1974 1971 1970 1974 7 COST ANALYSIS High-Rise Fire Safety Task Force V Type of Building Cost for sprinkler protection of dwelling Cost of sprinkler system for common areas Cost of fire pump system (electric motor drive) Cost of BWS DC meterand connections Cost for engine generator for emergency power Cost for asbestos remediation Total cost of fire sprinkler system Additional items Cost for upgrade of fire alarm system Cost of fire pump system (diesel engine drive) Squarefoot Costs Estimated Square Footage Sprinkler System Cost/square foot Fire Alarm System Cost/square foot Cost Per Dwelling Unit Number of dwelling units Sprinkler System Cost/dwelling unit Fire Alarm System Cost/dwelling unit Notes: DATE: Marco Polo 2333 Kapiolani Blvd. 1001 Wilder Avenue Pearl One 98-500 Koauka Loop 31-Mar-05 Royal Court 920 Ward Avenue Residential Condo $1,912,500 $162,750 $75,000 $30,000 $75,000 $207,525 Residential Condo $373,500 $124,500 $78,000 $0 $75,000 $49,800 Residential Condo $1,984,500 $205,500 $55,500 $25,500 $75,000 $219,000 Residential Condo $915,000 $315,000 $55,500 $25,500 $75,000 $123,000 $2,462,775 $700,800 $2,565,000 $1,509,000 $432,344 $102,000 $103,750 $102,000 $456,250 $66,000 $256,250 $66,000 642,985 $3.83 $0.61 75,315 $9.30 $1.38 625,985 $4.10 $0.73 233,701 $6.46 $1.10 572 $4,305.55 $755.85 67 $10,459.70 $1,548.51 300 $8,550.00 $1,520.83 112 $13,473.21 $2,287.95 No sprinklers for parking garage included no need for additional BWS fire service No sprinklers for parking garage included connection. Converting a standpipe riserto combination system. . Converting a standpipe riserto combination system. V Sprinkler Cost by: Other Cost by: Grinnell Fire Protection SSD exact floor area not availablefigure show is an estimate Grinnell Fire Protection SSD Pacific Fire Protection SSD Pacific Fire Protection SSD c-F c-I0~ C-) CD 1. Fire sprinkler costs are based on Steel pipe system (schedule 40) C-) Attachment 0 MEMORANDUM March 31, 2005 To: Residential Fire Safety Advisory Committee From: Stacy Sugimura Government Relations! Insurance Analyst HAWAII INSURANCE BUREAU, INC. RE: Loss Cost estimates for three condominiums and three retrofitted hotels HAWAII INSURANCE BUREAU The Hawaii Insurance Bureau, Inc. is an independent, non-profit corporation operating as a service and advisory organization governed by a Board of Directors elected from member insurance companies. HIB serves nearly 300 property and casualty insurance companies and their subsidiaries located in Hawaii and on the continental United States. On behalf of these companies HIB prepares and files rules, forms and loss costs with the State of Hawaii Insurance Division. About fifteen years ago, HIB phased-out advisory gross rates and replaced them with advisory average prospective loss costs. We also perform field inspections, and statistical analysis. For more than 125 years, the Hawaii Insurance Bureau, Inc. and its preceding organizations have served member and subscriber insurance companies. LOSS COST The advisory loss costs represents an actuarial estimation of the future cost of claims. The loss costs provides companies with cost estimates associated ~ with the claims that are expected to arise from future policies and the expenses for adjudicating claims. To the extent that a member company wishes to adopt and use the HIB loss cost in its own ratemaking process, it is up to each company individually to determine the additional charges that may be needed to cover its other expected operating expenses. Included in premium rates, but not in loss costs, are the costs of wages, office rent, marketing, customer service, taxes, licenses, underwriting expenses, and profits. ESTIMATES The Hawaii Insurance Bureau, Inc. was asked by this advisory committee to provide the insurance premium for sprinklered buildings as well as the insurance premium without fire sprinklers. As explained above, HIB does not calculate insurance premiums, but Residential Fire Safety Advisory Committee March 31, 2005 Page Two instead calculates loss cost. For this reason, we have provided loss cost estimates for threeretrofitted hotels and three condos that are sprinklered. V V We selected three condos. These condos varied in location, type of construction and sprinkler grade. In order to conduct this analysis, we selected three condos that have been sprinklered. We calculated the loss cost as a sprinkleredbuilding, then we removed the spi-inkler credit and again calculated the loss cost for both building and contents. Condo #1 Building Structure Loss Costs Building Contents Loss Costs Condo #2 Building Structure Loss Costs Building Contents Loss Costs Condo #3 Building Structure Loss Costs Building Contents Loss Costs Non-sprinklered Automatic Sprinidered Percentage Change 0.009 0.010 11% 0.024 0.015 -37.5% Non-sprinklered Automatic Sprinklered Percentage Change 0.009 0.010 11.0% 0.024 0.016 -33.3% Non-sprinklered Automatic Sprinklered Percentage Change 0.006 0.007 16.7% 0.0 16 0.0 12 -25.0% V The committee asked HIB to review three specific hotels which were retrofitted with sprinkler systems. We have removed the names of the hotels for their privacy. Hotel #1 Building Structure Loss Costs Building Contents Loss Costs Gift Shop Offices Restaurant Bar Hotel Non-sprinklered Automatic Sprinklered Percentage Change 0.022 0.013 -40.9% 0.065 0.061 0.029 0.03 0.038 -55.4% -55.8% -59.6% 0.033 -64.9% 0.020 -65.0% 0.094 0.094 0.033 V Residential Fire Safety Advisory Committee March 31, 2005 Page Three Hotel #2 Building Structure Loss Costs Building Contents Loss Costs Beauty Shop Restaurant Hotel General Mercantile Art Gallery Non-sprinklered Automatic Sprinklered 0.030 0.013 Hotel #3 Building Structure Loss Costs Building Contents Loss Costs Sporting Goods Store Bar Restaurant Beauty Shop Hotel V Percentage Change -56.7% V 0.069 0.027 -60.9% 0.107 0.039 -63.6% 0.039 0.020 48.7% 0.074 0.031 58.1% 0.102 0.038 62.7% Non-spnnklered Automatic Sprinklered Percentage Change 0.018 0.013 -27.8% V V V V 0.063 0.030 -52.4% 0.093 0.034 0.039 -63.4% 0.093 0.059 0.032 0.026 0.020 -58.1% -55.9% -37.5% We cannot emphasize enough that these are loss cost figures. Again, loss cost is the expected losses plus the expense of adjusting those claims. In short, it is a partial component of the final premium. We would also like to point out the insured is eligible for full credit only if the sprinkler and hydraulic calculations are submitted to and reviewed by HIB. Otherwise, the insured will get partial sprinkler credit if their testing is up-to-date. Attachment E Report Title: Income Tax Credit; Automatic Fire Sprinkler System Description: an income tax credit for qualifying costs of automatic fire sprinkler systems installed and placed into service after June 30, 2006. (HB1448 HD2) Provides HOUSE OF REPRESENTATIVES 1448 V TWENTY-THIRD LEGISLATURE, 2005 H.D. 2 V STATE OF HAWAII A BILL FOR AN ACT relating to income tax credit. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The purpose of this Act is to establish a capped income tax credit for qualifying costs of automatic fire sprinkler systems installed and placed into service after June 30, 2006. SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: “~235— Automatic fire sprinkler system; income tax credit. (a) Each individual or corporate resident taxpayer who files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section which shall be deductible from the taxpayer’s Hawaii state individual or corporate income tax liability, if any, for the taxable year in which the credit is properly claimed. The tax credit may be claimed for each automatic fire sprinkler system that is installed and placed into service by a taxpayer after June 30, 2006. (b) The tax credit shall be equal to per cent of the qualifying costs of the automatic fire sprinkler system; provided that: (1) The tax credit shall not exceed $1,000 in each taxable year for each individual automatic fire sprinkler system (2) The credit may be claimed for each taxable year up to five consecutive taxable years; provided that the taxpayer shall not be allowed to claim the credit after the fifth taxable year; and (3) The excess of credits over a taxpayer’s individual or corporate income tax liability for any taxable year shall not be refunded to the taxpayer. (c) For the purposes of this section: “Automatic fire sprinkler system” means an integrated system of underground and overhead piping designed in accordance with fire protection engineering standards. The portion of the sprinkler system above ground is a network of specially sized or hydraulically designed piping installed in a building, a structure, or area, generally overhead and to which sprinklers are connected in a systematic pattern. The valve controlling each system riser is located in the system riser or its supply piping. Each sprinkler system riser includes a device for activating an alarm when the system is in operation. The device is normally activated by heat from a fire and discharges water over the fire area. “Qualifying costs” means costs incurred in purchasing or otherwise acquiring an automatic fire sprinkler system, including accessories and installation, for use:. (1) In any apartment or condominium built before 1975 or in any other multi-residential dwelling; and (2) In single-family residential dwellings. (d) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for actual cost incurred by the entity for the taxable year. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule. (e) All claims, including any amended claims, for tax dit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for whichV the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the rights to claim the credit. (f) The director of taxation shall: (1) Prepare any forms that may be necessary to claim a tax credit under this section (2) Require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section; and (3) Adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.” SECTION 3. The department of taxation shall determine the estimated amount of tax credits that may be claimed and the estimated amount of state tax revenue that may be lost as a result of the tax credit and shall report its findings to the legislature no later than twenty days prior to the convening of the regular session of 2006. SECTION 4. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2020. Attachment F I 109TH CONGRESS 1ST SEssioN To amend the Internal Revenue Code of 1986 to classify automatic fire sprinkler systems as 5-year property for purposes of depreciation. IN THE HOUSE OF REPRESENTATIVES MARCH 3, 2005 Mr. WELDON of Pennsylvania (for himself, Mr. BASS, Mr. C~&NToR,Mr. CLAY, Mr. COSTELLO, Mr. ENGLISH of Pennsylvania, Mr. FITZPATRICK of Pennsylvania, Mr. GALLEGLY, Mr. HALL, Mr. HINCITEY, Mr. HOLDEN, Mr. HYDE, Mrs. JONES of Ohio, Mrs. MALONEY, Mr. MCHUGH, Mr. MCINTYRE, Mr. OWENS, Ms. PRYCE of Ohio, Mr. REHBERG, Mr. ROGERS of Michigan, Mr. SHIMKUS, Mr. SOUDER, Mr. UPTON, Mr. WILSON of South Carolina, Mr. ACKERMAN, Mr. CARNAHAN, Mr. EvANS, Mr. GILCHREST, Mr. GORDON, Mr. HOLT, Mr. INSLEE, Ms. JACKSON-LEE of Texas, Mr. KILDEE, Mr. LARSON of Connecticut, Mrs. LOWEY, Mr. RUSH, Mr. TOwNS, Mr. WExLER, and Mr. KENNEDY of Rhode Island) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to classify automatic fire sprinkler systems as 5-year property for purposes of depreciation. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States ofAmerica in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the “Fire Sprinkler Incen- 5 tive Act of 2005”. 2 1 SEC. 2. FINDINGS. 2 The Congress finds that— 3 (1) since the publication of the original study 4 and comprehensive list of recommendations in Amer- 5 ica Burning, written in 1974, requested advances in 6 fire prevention through the installation of automatic 7 sprinkler systems in existing buildings have yet to be 8 fully implemented; 9 (2) fire departments 10 mately 1,700,000 fires in 2003; responded to approxi- 11 (3) there were 3,925 civilian deaths and 18,125 12 civilian injuries resulting from fire in the United 13 States in 2003; 14 (4) 111 firefighters were killed in 2003; 15 (5) fire caused $12,300,000,000 in direct prop- 16 erty damage in 2003, and sprinklers are responsible 17 for a 70 percent reduction in property damage from 18 fires in public assembly, educational, residential, 19 commercial, industrial and manufacturing buildings; 20 (6) fire departments respond to a fire every 20 21 seconds, a fire breaks out in a structure every 61 22 seconds and in a residential structure every 79 sec- 23 onds in the United States; 24 (7) the Station Nightclub in West Warwick, 25 Rhode Island, did not contain an automated sprin- V •HR 1131 IH 3 1 kler system and burned down, killing 100 people on 2 February 20, 2003; 3 (8) due to an automated sprinkler system, not 4 a single person was injured from a fire beginning in 5 the Fine Line Music Café in Minneapolis after the 6 use of pyrotechnics on February 17, 2003; 7 (9) the National Fire Protection Association 8 has no record of a fire killing more than 2 people 9 in a completely sprinklered public assembly, edu- 10 cational, institutional or residential building where 11 the system was .properly installed and fully oper- 12 ational; 13 (10) sprinkler systems dramatically improve the 14 chances of survival of those who cannot save them- 15 selves, specifically older adults, young children and 16 people with disabilities; 17 (11) the financial cost of upgrading fire counter 18 measures in buildings built prior to fire safety codes 19 is prohibitive for most property owners; 20 (12) many State and local governments lack 21 any requirements for new structures to contain auto- 22 matic sprinkler systems; 23 (13) under the present straight-line method of 24 depreciation, there is a disincentive for building safe- •HR 1131 IH 4 1 ty improvements due to an extremely low rate of re- 2 turn on investment; and 3 (14) the Nation is in need of incentives for the 4 voluntary installation and retrofitting~of buildings 5 with automated sprinkler systems to save the lives of 6 countless individuals and responding firefighters as 7 well as drastically reduce the costs from property 8 damage. 9 SEC. 3. CLASSIFICATION OF AUTOMATIC FIRE SPRINKLER 10 11 SYSTEMS. (a) IN GENERAL.—Subparagraph (B) of section 12 168(e)(3) of the Internal Revenue Code of 1986 (relating 13 to 5-year property) is amended by striking “and” at the 14 end of clause (V), by striking the period at the end of 15 clause (vi) and inserting 16 end the following: 17 “, and “, and by adding at the V “(vii) any automatic fire sprinkler sys- 18 tem placed in service after April 11, 2003, 19 in a building structure which was placed in 20 service before such date.”. 21 (b) ALTERNATIVE SYsEM.—The table contained in 22 section 168(g)(3)(B) of the Internal Revenue Code of 23 1986 is amended by inserting after the third item the fol- 24 lowing: ‘‘(B)(vii) ‘HR 1131 IH 7’’. 5 1 (c) DEFINITION OF AUTOMATIC FIRE SPRINKLER 2 SYsTEM.—Subsection (i) of section 168 of the Internal 3 Revenue Code of 1986 is amended by adding at the end 4 the following: 5 “(17) AUTOMATED FIRE SPRINKLER SYSTEM.— 6 The term ‘automated fire sprinkler system’ means 7 those sprinkler systems classified under one or more 8 of the following publications of the National Fire 9 Protection Association— 10 11 “(A) NFPA 13, Installation of Sprinkler Systems, 12 “(B) NFPA 13 D, Installation of Sprin- 13 kier Systems in One and Two Family Dwellings 14 and Manufactured Homes, and 15 “(C) NFPA 13 R, Installation of Sprinkler 16 Systems in Residential Occupancies up to and 17 Including Four Stories in Height.”. 18 (d) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to property placed in service after 20 April 11, 2003. 0 ‘HR 1131 111