3.3. SR 02-22-2011REQUEST FOR ACTION
TO ITEM NUMBER
Ci Council 3.3.
AGENDA SECTION MEETING DATE PREPARED BY
Consent A enda Febru 22, 2011 T. ohn Cunnin ham, Fire Chief
ITEM DESCRIPTION REVIEWED By
Otsego Fire Contract (Revised) Tim Simon, Finance Director
REVIEWED BY
ACTION REQUESTED
Request to approve the revised 2011 firefighting services contract for the City of Otsego.
BACKGROUND/DISCUSSION
On December 20, 2010, the City Council approved the draft firefighting services contract for the City of
Otsego. In subsequent discussions with the City of Otsego, some changes have been made to the original
draft. The cost model and the fee for service has remained the same since the draft copy you received in
December. The renewed contract will bring the City $169,805.44 in revenue compared to $99,980
received in 2010 under the old agreement.
Staff met with City of Otsego staff and reviewed the requested changes. The changes are mostly technical
in nature and do not alter the overall scope/intent of the contract. Below is a summary of the changes:
• Article II, C: Language added to provide indemnification to the City of Otsego for gross
negligence or criminal acts by the City of Elk River or the (Elk River) Fire Department.
• Article III: Added cost formula to contract and clarification to 3% annual increase provision.
With this change, additional clarification was added to ensure receivables reflect actual number
of parcels within Fire District (which may result of an overall increase of more than 3% to the
previous year's billable rate). Added language for both parties to meet to discuss proposed fee
increases prior to August 1 of each year.
• Article N: Revised language of mutual aid reimbursement policy. The City of Otsego will pay
costs incurred for mutual aid requests to the Otsego Fire District.
• Article V: Revised language of false alarm reimbursement policy. City of Otsego will enforce its
alarm policy and forward the City of Elk River all penalties and fees.
• Article VIII: Language added to Termination clause to separate terms for failure to pay contract
rate opposed to mutual aid/false alarm payments. If the City of Otsego fails to make payment
under Section III, Elk River may terminate the contract within 60 days. If a dispute regarding
mutual aid and/or false alarm fees arise and is not settled within 30 days, the City of Elk River
may terminate the Agreement upon 180 days written notice.
Staff reviewed the changes and does not have any objection. The City of Otsego has already paid'/z of
the annual fee as outlined in Article III.
N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\02-22-2011\Otsego Fire Contract.docx
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
Revised (Otsego) Contract for Firefighting Services (w/ attachments)
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\City Council\Council RCA\Agenda Packet\02-22-2011\Otsego Fire Contract.docx
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 I: 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 II: 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, nor 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 except when such loss or
damage is caused by gross negligence or criminals acts by the CITY OF ELK
RIVER and/or the FIRE DEPARTMENT. The CITY OF OTSEGO shall indemnify
and hold harmless the CITY OF ELK RIVER and/or the FIRE DEPARTMENT
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
from any claims of loss or damage arising from the CITY OF ELK RIVER's
undertaking to furnish firefighting Services under this Agreement, except for loss
or damage caused by the gross negligence or criminal acts of the CITY OF ELK
RIVER or the FIRE DEPARTMENT.
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
For 2011, 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 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.
The annual fee shall be adjusted on January 1 of each subsequent year that this
Agreement is in effect, as follows:
A. The number of parcels shall be adjusted to reflect the then current number of
parcels located within the Fire District, as determined by the Wright County
Auditors office; and
B. The total fee shall be determined by result of application of the following formula:
TOTAL FEE _ (Approved Annual Fire Department Budget + 15%
Administrative Factor + Annual Depreciation of Equipment) x
of Parcels in Fire District
C. The per parcel fee over the term of this Agreement after application of the above
formula shall not exceed 3% over the fee for the immediately preceding year.
The total fee due may increase more than 3% based on the number of parcels in
the Fire District.
D. The parties shall meet and review the proposed fee increases each year prior to
August 1.
Page 2
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
ARTICLE IV: MUTUAL AID
Because the FIRE DEPARTMENT has heretofore entered into mutual assistance
firefighting agreements with other fire departments, municipalities and agencies
possessing equipment and/or personnel, which equipment and/or personnel could be
called by the Fire Chief and/or his/her designee to a call in the CITY OF OTSEGO, the
CITY OF OTSEGO agrees to pay such additional cost as may be incurred thereby if in
the sole judgment of the Fire Chief and/or his/her designee such additional equipment
and/or personnel are needed for assistance in the CITY OF OTSEGO and are in fact
called upon by the Fire Chief and/or his/her designee.
ARTICLE V: FALSE ALARMS
All parties acknowledge that excessive false alarms constitute a public nuisance. The
CITY OF OTSEGO agrees to enforce its false alarm policy and to collect and forward to
the CITY OF ELK RIVER penalties and fees collected from properties within the Fire
District for excessive false alarms.
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 notice of 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.
Page 3
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
If the CITY OF OTSEGO fails to pay for Services as provided in Article III hereof, the
CITY OF ELK RIVER may terminate this Agreement upon 60 days' written termination
notice.
If the CITY OF OTSEGO fails to reimburse the CITY OF ELK RIVER for mutual aid
costs as provided in Article IV hereof, or fails to collect and forward to the CITY OF ELK
RIVER penalties for false alarms as provided in Article V hereof, the CITY OF ELK
RIVER may terminate this Agreement after 30 days notice to make payment or settle
any dispute. In the event that payment is not made, or any dispute is not resolved within
the 30 day period, the CITY OF ELK RIVER may terminate this Agreement upon 180
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. The CITY OF ELK RIVER
shall return any portion of the annual fee already paid allocated for Services provided
after 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 4
Otsego Contract for Firefighting Services with the City of Elk River (Elk 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 5
Otsego Contract for Firefighting Services 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 Surface Ice 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 Level
o First Responder, Operations Level
• Emergency Medical Services, specifically:
o First Responder Level to Personal Injury Accidents (as requested and per
FIRE DEPARTMENT 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:2898801 v3
Page 6
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
EXHIBIT B: FIRE DISTRICT
Elk River Fly
F'ayabe 2010 Tax Data
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Year MUN Municipality tt Parcels _ Land 6ui:din8 Machine 7atal Market Value
z0~a 1.1.8 Oue&o 3248... 266,613,300.00 354,869,900.00 953,500.00 622,436,700.60
Page 7
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
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CONTRACT FOR FIREFIGHTING SERVICES ~e.V lx
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 I: 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 II: 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, nor 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, except when such loss or
damage is caused by gross negligence or criminals acts by the CITY OF ELK
~Y
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
RIVER and/or the FIRE DEPARTMENT. The CITY OF OTSEGO shall indemnify
and hold harmless the CITY OF ELK RIVER and/or the FIRE DEPARTMENT
from any claims of loss or damage arising from the CITY OF ELK RIVER's
undertaking to furnish firefighting Services under this Agreement, except for loss
or damage caused by the gross negligence or criminal acts of the CITY OF ELK
RIVER or the FIRE DEPARTMENT.
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
For 2011, 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 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.
The annual fee shall be adjusted on January 1 of each subsequent year that this
Agreement is in effect, as follows:
A. The number of parcels shall be adjusted to reflect the then current number of
parcels located within the Fire District, as determined by the Wright County
Auditors office; and
B. The total fee shall be determined by result of application of the following formula:
TOTAL FEE _ (Approved Annual Fire Department Budget + 15%
Administrative Factor + Annual Depreciation of Equipment) x
of Parcels in Fire District
C. The per parcel fee over the term of this Agreement after application of the above
formula shall not exceed 3% over the fee for the immediately preceding year.
The total fee due may increase more than 3% based on the number of parcels in
the Fire District.
D. The parties shall meet and review the proposed fee increases each year prior to
August 1.
Page 2
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
ARTICLE IV: MUTUAL AID
Because the FIRE DEPARTMENT has heretofore entered into mutual assistance
firefighting agreements with other fire departments, municipalities and agencies
possessing equipment and/or personnel, which equipment and/or personnel could be
called by the Fire Chief and/or his/her designee to a call in the CITY OF OTSEGO, the
CITY OF OTSEGO agrees to pay such additional cost as may be incurred thereby if in
the sole judgment of the Fire Chief and/or his/her designee such additional equipment
and/or personnel are needed for assistance in the CITY OF OTSEGO and are in fact
called upon by the Fire Chief and/or his/her designee.
ARTICLE V: FALSE ALARMS
All parties acknowledge that excessive false alarms constitute a public nuisance. The
CITY OF OTSEGO agrees to enforce its false alarm policy and to collect and forward to
the CITY OF ELK RIVER penalties and fees collected from properties within the Fire
District for excessive false alarms.
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 notice of 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.
Page 3
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
If the CITY OF OTSEGO fails to pay for Services as provided in Article III hereof, the
CITY OF ELK RIVER may terminate this Agreement upon 60 days' written termination
notice.
If the CITY OF OTSEGO fails to reimburse the CITY OF ELK RIVER for mutual aid
costs as provided in Article IV hereof, or fails to collect and forward to the CITY OF ELK
RIVER penalties for false alarms as provided in Article V hereof, the CITY OF ELK
RIVER may terminate this Agreement after 30 days notice to make payment or settle
any dispute. In the event that payment is not made, or any dispute is not resolved within
the 30 day period, the CITY OF ELK RIVER may terminate this Agreement upon 180
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. The CITY OF ELK RIVER
shall return any portion of the annual fee already paid allocated for Services provided
after 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 4
Otsego Contract for Firefighting Services with the City of Elk River (Elk 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 CITY OF OTSEGO
By its Mayor: By its Mayor:
Signature Signature
Print Name Print Name
Date Date
City Clerk: City Clerk:
Signature Signature
Print Name Print Name
Page 5
Otsego Contract for Firefighting Services 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 Surface Ice 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 Level
o First Responder, Operations Level
• Emergency Medical Services, specifically:
o First Responder Level to Personal Injury Accidents (as requested and per
FIRE DEPARTMENT 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)
GP2898801 v3
Page 6
Otsego Contract for Firefighting Services 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/ZOi 0
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X91'0 1Il$ ~2~eg~ X23$ 2~6,~b13o~00.0(9 354,$B~,'90~.00 933,50d).t)0 622,436,70f9.CtD
Page 7
Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department)
January 1, 2011
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