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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 pl151201 Q ~,,~ t -~ ,I~ i $' 3 ~~eew-+aF.+n--.. «... Legend Elk River FD MUN ,.. .. 118 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 ~ ~ ~ ~ F Q~ ~~ >h _ ? _ = „~~ ~ ~ ~ ~ - Cx ~ s ~ , o ~~ ~ _ Q i ~ ~ ~ .... r: ~ _ _ ~ f c~ ~, a ~. ~, ., --_ ,.. ~. r -- m '"F9 " ', ~ F r.. Y Y /(11~j ~ ' ' ~` K „" t O ~~ O ~, W O /~ (T7 ~ ~ ~ 333 ~ < "'1 ~ (D ~ ~ ;_ ~~~ ~ sW =~ ~ y< Q ~ M Y ~ n G t C. T P Ar. ~ ~ y^ w l ~ r O -' ~ ^- r 3 ~ ~ "i ' ro j F ~ Cfi ~ ~ ~ N ~ C1 ~ G ~ ~' f ~' ~ 3+ N ~ 1. D n ~ :^, D ti W Page 8 ~I~~-Iii 3. ~ . ~~ C~Op~ 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 _=~'' ,. ~~- ~ ~, ..:i~~ _ t ~~. ~, a- ,#~ ~ r.,~ ~ ;~ - ~ ~~_ Z,- -- .{ ~- Legend Elk_RFser FD MUN ~~8 ~ tY+ear Att9M ~i~raii[ipa6ity ii tDr~rzels ~arrtd Buii dung Adl~[hirte ~tntal Mar~C~t wive X91'0 1Il$ ~2~eg~ X23$ 2~6,~b13o~00.0(9 354,$B~,'90~.00 933,50d).t)0 622,436,70f9.CtD Page 7 Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department) January 1, 2011 ~& ~ ~' o 0 ~ I' D o m '~ ~~`' .. < ~` ~ ' TI ~, _ _ !D ~ , E ~ ~ x ~ ~ ~ ~. ~ ~ O ~ j,, W i O ~ : m `. ? ~ Q ~ ~ < ~ -• ~ tD N ~3 ~~ ~ ~' ~ ~~c$z R~ ~~~ 5$ ~ ; , ~ ~ 5 ~~ ~ ~ m ~ `: ~ ~ ~ ~ ~ ~ ,g 3 o ~ ~ ~ ~ .. ~ o a a ~ ~ y ~ ~ a ~ m R dab ~ ~$$`~ ~~ -' N ~ ~ V 's N ~ ~ _o ~ o w C ~ m _~ C n ~ n Page 8