3.4. SR 12-20-2010REQUEST FOR ACTION
TO ITEM NUMBER
Ci Council 3.4
AGENDA SECTION MEETING DATE PREPARED BY
Consent A ends December 2Q 2010 T. ohn Cunnin hate, Fire Chief
ITEM DESCRIPTION REVIEWED By
Otsego Fixe Contract Tim Simon, Finance Director
REVIEWED BY
Lori ohnson, Ci Administrator
ACTION REQUESTED
Request to approve the draft 2011 firefighting services contract fox the City of Otsego.
BACKGROUND/DISCUSSION
In August, 2010, the fire department and city administration began reviewing the fire services agreement
with the City of Otsego. The last formal agreement was executed on September 16, 1998.
During the course of this evaluation, one of the concerns that was raised was the yearly fluctuation in
receivables to the City of Elk River for services rendered. Under the previous agreement, billing was
based upon a percent of fire calls within the Elk River "Otsego" fire district. This model makes budgeting
fox both cities difficult and doesn't accurately reflect the actual cost of running the fire department
(considering costs related to operating expenses, capital expenses, and general overhead) and providing
this service to the City of Otsego. Regardless of the number of calls fox service, the department must be
at a constant state of readiness. Previous invoice amounts are reflected below:
• 2010: $99,980
• 2009: $123,785
• 2008: $170,406
The pay structure fox the proposed new contract is based on aper-parcel amount and the fire
department's 2011 budget. The current Elk River "Otsego" fire district includes 3,248 parcels. Taking
into consideration the proposed fire administration budget (including a 15% administrative factor and
annual depreciation of equipment), the price per parcel comes to $52.28. This proposed rate structure has
been previously discussed with the officials from the City of Otsego.
The total contract amount proposed fox 2011 is $169,805.44 which is reflected in the attached contract.
The City of Elk River is proposing a five (5) year contract with a 3% annual increase to the base amount.
The five year contract will encourage a fresh look at the agreement and to allow for any adjustments to
the base amount, if needed (factoring in capital expenditures, etc.). The contract calls fox two equal
payments to the City of Elk River, one in January and the other in July. This payment structure is similar
to other service contracts in place with other departments.
N:\Public Bodies\City Council\Council RCA\Agenda Packet\72-20.2010\Otsego R¢e COntracLdoc
The Elk River Fire Department had also proposed fue marshal/inspection services but the City of
Otsego has opted not to pursue those services at this time. Such services axe not included in the proposed
contract.
Upon acceptance by the Council, the contract will be forwarded to the City of Otsego for consideration.
Any minor adjustments to the contract will be reviewed and considered by staff. While not anticipated,
any significant changes will be brought back to Council fox consideration.
FINANCIAL IMPACT
The proposed contract will result in $169,805.55 revenue to the City of Elk River which is included in the
2011 budget.
ATTACHMENTS
• (Otsego) Fue Protection Contract (w/ attachments)
Action Motion by _ Second by _ Vote
Follow Up
N:\Pubkc Bodies\City Countil\Coundl RCA\Agenda Packet\t2-20.7A10\Otsego Fire COntactdoc
CONTRACT FOR FIREFIGHTING SERVICES
This Contract for Firefighting Services ("Agreement") is made and entered into effective
January 1, 2011 by and between the CITY OF ELK RIVER, a Minnesota municipal
corporation ("CITY OF ELK RIVER") and the CITY OF OTSEGO, a Minnesota municipal
corporation ("CITY OF OTSEGO").
IT IS HEREBY AGREED BY AND BETWEEN SAID PARTIES AS FOLLOWS:
ARTICLE 1: FIRE SERVICE
The CITY OF ELK RIVER agrees to furnish through the Elk River Fire Department
("FIRE DEPARTMENT") firefighting services ("Services"), as outlined in EXHIBIT A
attached hereto to all properties in the CITY OF OTSEGO located within the area set
forth in EXHIBIT B attached hereto ("Fire District").
ARTICLE 2: RESPONSE AND RESOURCES
The FIRE DEPARTMENT will make reasonable efforts to promptly respond to requests
for service ("fire call(s)") in the Fire District upon notification of such requests through
the FIRE DEPARTMENT'S primary public safety answering point ("PSAP"), subject to
the following terms and conditions:
A. The Fire Chief of the FIRE DEPARTMENT ("Fire Chief'), and/or his/her
designee, shall be in command of the FIRE DEPARTMENT, including its
personnel, equipment and resources, at all times, as outlined in the FIRE
DEPARTMENT's policy manual and/or the CITY OF ELK RIVER Code of
ordinances. Furthermore, the CITY OF ELK RIVER owns the buildings and
equipment associated with the FIRE DEPARTMENT, and the amounts paid by
the CITY OF OTSEGO for firefighting Services do not give rise to any ownership
interest in, or responsibility toward, those items.
B. The safety of FIRE DEPARTMENT personnel and equipment are of the utmost
importance when responding to and operating at an incident. The Fire Chief
and/or his/her designee shall have the authority to modify and/or cancel a
response if road, weather and/or other hazardous condition(s) pose a safety
threat to the FIRE DEPARTMENT'S personnel and/or equipment.
C. The CITY OF ELK RIVER and/or the FIRE DEPARTMENT shall not be liable to
the CITY OF OTSEGO or to any property within the Fire District for loss or
damage of any kind whatever resulting from any failure to furnish or any delay in
furnishing personnel or equipment, or from any failure to prevent, control or
extinguish any fire or control or mitigate a situation, whether or not such loss or
damage is caused by the negligence of the officers, agents or employees of the
CITY OF ELK RIVER or the FIRE DEPARTMENT. The CITY OF OTSEGO shall
indemnify and hold harmless the CITY OF ELK RIVER and/or the FIRE
Otsego Fire Protection Contract with the City of EIk River (Elk River Fire Department)
January 1, 2011
DEPARTMENT from any claims of loss or damage arising from the CITY OF ELK
RIVER's undertaking to furnish firefighting Services under this Agreement.
D. In the event that the FIRE DEPARTMENT is committed and unavailable at the
time of dispatch to a call in the CITY OF OTSEGO, the FIRE DEPARTMENT will
respond to the call as soon as reasonably possible in the sole discretion of the
Fire Chief and/or his/her designee. The Fire Chief and/or his/her designee has
the sole authority to prioritize fire calls, to allocate equipment and resources, and
to request mutual aid assistance at his/her discretion and professional judgment.
ARTICLE III: PAYMENT
The CITY OF OTSEGO agrees to pay the CITY OF ELK RIVER an annual fee of
$52.28 per parcel of property located within the Fire District, as determined by the
Wright County Auditors office. The price per parcel shall increase by 3% annually for
each year this Agreement remains in effect.
The total cost for 2011 is $169,805.44 (3,248 parcels).
The annual fee shall be paid in two equal payments. The first payment shall be made
within the month of January and the second payment shall be made within the month of
July.
ARTICLE IV: MUTUAL AID
The FIRE DEPARTMENT may enter into mutual aid agreements with other
organizations. The primary purpose of such agreements is to provide emergency
assistance to each other in the event of disasters, large scale emergencies or incidents
that exceed the capabilities of the FIRE DEPARTMENT. These agreements often are
written, but occasionally are arranged verbally after a significant disaster or emergency
occurs.
The CITY OF OTSEGO hereby agrees to reimburse the FIRE DEPARTMENT and/or
the CITY OF ELK RIVER for any costs associated with the FIRE DEPARTMENT
requesting mutual aid assistance while responding to or operating at an incident scene
within the Fire District.
ARTICLE V: FALSE ALARMS
All parties acknowledge that excessive false alarms constitute a public nuisance. The
CITY OF OTSEGO agrees to enforce the CITY OF ELK RIVER false alarm policy and
to collect and forward to the CITY OF ELK RIVER such penalties and fees as the FIRE
DEPARTMENT charges to properties within the Fire District for excessive false alarms
as provided in the false alarm policy.
Page 2
Otsego Fire Protection Contract with the City of Elk River (Elk River Fire Department)
January 1, 2011
ARTICLE VI: TERM
This Agreement shall commence on January 1, 2011 and shall expire on December 31,
2015 unless terminated earlier as provided herein.
ARTICLE VII: MODIFICATION
This writing contains the entire agreement between the parties and no alterations,
variations, modifications or waivers of the provisions of this Agreement are valid unless
reduced to writing and signed by both the CITY OF ELK RIVER and the CITY OF
OTSEGO.
This Agreement and the exhibits attached hereto contain the entire agreement of the
parties with respect to the subject matter of this Agreement, and supersede all prior
negotiations, agreements and understandings with respect thereto.
ARTICLE VIII: TERMINATION
This Agreement may be terminated at any time during its term by mutual agreement of
the parties. Such mutual agreement to terminate shall be in writing and shall be
effective when fully executed by both parties.
Either party may terminate this Agreement by serving a 365-day written notice of
termination to the other party. This Agreement shall terminate 365 days from the date
of written termination, unless the party serving the notice specifies a later date of
termination or withdraws the notice of termination in writing before it is effective.
If the CITY OF OTSEGO fails to pay for Services according to the schedule established
herein, the CITY OF ELK RIVER may terminate this Agreement upon 60 days' written
termination notice.
In the event this Agreement is terminated, the CITY OF OTSEGO shall still be
responsible for paying in full any amount owed to the CITY OF ELK RIVER for Services
provided under this Agreement up to the date of termination. Notice to either party shall
be made to the city administrator, or city clerk if there is no city administrator.
ARTICLE IX: SEVERABILITY
The provisions of this contract shall be deemed severable. If any part of this contract is
rendered void, invalid, or otherwise unenforceable, such rendering shall not affect the
validity and enforceability of the remainder of this contract.
Page 3
Otsego Fire Protection Contract with the City of EIk River (EIk River Fire Department)
January 1, 2011
IN WITNESS WHEREOF, the parties have executed this contract effective on the date
indicated above.
CITY OF ELK RIVER
By its Mayor:
Signature
Print Name
Date
City Clerk:
Signature
Print Name
CITY OF OTSEGO
By its Mayor:
Signature
Print Name
Date
City Clerk:
Signature
Print Name
Page 4
Otsego Fire Protection Contract with the City of Elk River (Elk River Fire Department)
January 1, 2011
EXHIBIT A: SERVICES
The CITY OF ELK RIVER and the FIRE DEPARTMENT agrees to provide the CITY OF
OTSEGO the following Services, subject to the terms and conditions of the Agreement:
• Structural Firefighting, specifically:
o Exterior Structural Firefighting
o Interior Structural Firefighting
• Grass/Forest Firefighting
• Other Firefighting, specifically:
o Vehicle & Equipment Firefighting
• Technical Rescue, specifically:
o Vehicle & Equipment Extrication
o General Search and Rescue
o Rope Access/Confined Space Rescue (subject to team availability)
• Other, specifically:
o Investigation of Fire and Carbon Monoxide Alarms
• Hazardous Materials Response, specifically:
o First Responder, Awareness
o First Responder, Operations
• Emergency Medical Services, specifically:
o First Responder Level to Personal Injury Accidents (as requested and per
policy) and to support Technical Rescue Operations
• Disaster Response, specifically:
o Initial response for rescue, life-safety and incident stabilization (not
including emergency management related functions)
GP:2898601 v2
Page 5
Otsego Fire Protection Contract with the City of Elk River (Elk River Fire Department)
January 1, 2011
EXHIBIT B: FIRE DISTRICT
Elk River FD
Payable 2010 Tax Data
06/15/2010
Legend
Elk_River FD
MUN
118
,ear rviun mumupauty n rarceis Lantl Buitling Mzchine Total Market Value
2010 118 Otsego 3248 266,613,300.00 354,689,900.00 953,500.00 622,436,700.00
Page 6
Otsego Fire Protection Contract with the City of EIk River (EIk River Fire Department)
January 1, 2011
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