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ITEM 5.1 Firefighting Services Contract with Elk RiverP Ots-elyozl.o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Administration Lori Johnson, City Administrator November 9, 2015 PRESENTER(s): REVIEWED BY: ITEM #: Lori Johnson, City Administrator 5.1 AGENDA ITEM DETAILS RECOMMENDATION: Recommend approval of a five year Contract for Firefighting Services with Elk River. ARE YOU SEEKING APPROVAL OF A CONTRACT? Yes IS PUBLIC HEARING REQUIRED? No BACKGROUND/JUSTIFICATION: The current Contract for Firefighting Services (Contract) with Elk River ends on December 31, 2015. Attached is a Contract for the next five years beginning on January 1, 2016 and terminating on December 31, 2020. The Contract has been reviewed and approved by both city attorneys. The new Contract is essentially the same as the last contract with some clerical corrections/clean-up and a clarification of the notification timeframe for changes to the service area. Below is a summary of the new contract: • Term: Five years - 2016-2020 • Contract Cost: Formula is unchanged from previous contract. The 2016 per parcel cost of $60.56 times the parcel count of 3,512 per Wright County equals a 2016 cost of $212,686.72. • Service Area: Article VII: Modification now includes a sentence to clarify that Otsego may change the Service Area at its discretion. All changes must be approved by the Otsego City Council and provided to Elk River by September 1 of each year. Adjustments to the Service Area were allowed in the current contract; thus, this is a clarification not an addition. The Service Area will remain the same for 2016. • The remainder of the 2016-2020 Contract is consistent with the 2011-2015 Contract SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to approve the Contract for Firefighting Services with Elk River for 2016 — 2020. BUDGET INFORMATION FUNDING: BUDGETED: X ❑ YES General Fund Fire Budget ❑ NO ACTION TAKEN ❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes) COMMENTS: CONTRACT FOR FIREFIGHTING SERVICES This Contract for Firefighting Services ("Agreement") is made and entered into effective January 1, 2016, by and between the CITY OF ELK RIVER, a Minnesota municipal corporation ("ELK RIVER") and the CITY OF OTSEGO, a Minnesota municipal corporation ("OTSEGO"). IT IS HEREBY AGREED BY AND BETWEEN SAID PARTIES AS FOLLOWS: ARTICLE I: FIRE SERVICE ELK RIVER agrees to furnish, through the Elk River Fire Department ("ERFD"), firefighting services ("SERVICES"), as outlined in EXHIBIT A attached hereto, to all properties in OTSEGO located within the area set forth in EXHIBIT B attached hereto ("Fire Service Area"). ARTICLE II: REPONSE AND RESOURCES ERFD will make reasonable efforts to promptly respond to requests for service ("Fire Call(s)") in the Fire Service Area upon notification of such request through the FIRE DEPARTMENT's primary Public Safety Answering Point ("PSAP"), subject to the following terms and conditions: A. The ERFD Fire Chief of ("Chief'), and/or his/her designee, shall be in command of ERFD, including its personnel, equipment, and resources, at all times, as outlined in the ERFD's policy manual and/or the ELK RIVER Code of Ordinances. Furthermore, ELK RIVER owns the buildings and equipment associated with ERFD, and the amounts paid by the OTSEGO for firefighting services do not give rise to any ownership interest in, or responsibility toward, those items. B. The safety of ERFD personnel and equipment are of the utmost importance when responding to and operating at an incident. The 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 ERFD's personnel and/or equipment. C. ELK RIVER and/or ERFD shall not be liable to OTSEGO, , for loss or damage of any kind whatever resulting from any failure to furnish or 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 ELK RIVER or the ERFD, except when such loss or damage is caused by gross negligence or criminal acts by ELK RIVER and/or ERFD. OTSEGO shall indemnify and hold harmless the ELK RIVER and/or the ERFD from any claims of loss or damage arising from 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 ELK RIVER or ERFD. D. In the event that ERFD is committed and unavailable at the time of dispatch to a call in OTSEGO, ERFD will respond to the call as soon as reasonably possible in the sole discretion of the Chief and/or his/her designee. The Chief and/or his/her designee have the sole authority to prioritize Page 1 1 fire calls, to allocate equipment and resources, and to request mutual aid assistance at his/her discretion and professional judgment. ARTICLE III: PAYMENT For 2016, OTSEGO agrees to pay ELK RIVER an annual fee of $60.56 per parcel of property located within the Fire Service Area, as determined by the Wright County Auditor's Office. The total cost for 2016 is $212,686.72 (3,512 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 15t of each subsequent year that this Agreement is in effect, as follows: A. The Otsego may adjust the Fire Service Area boundary annually. Written notification of the revised Fire Service Area as approved by the Otsego City Council must be provided to ELK RIVER no later than September 1 of each year. B. The number of parcels shall be adjusted to reflect the then current number of parcels located within the Fire Service Area, as determined by the Wright County Auditor's Office; and C. 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 the total number of Parcels in Fire Service Area D. 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 Service Area. E. The parties shall meet and review the proposed fee increases each year prior to August ft. ARTICLE IV: MUTUAL AID Because ERFD 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 Chief and/or his/her designee to a call in OTSEGO, OTSEGO agrees to pay such additional cost as may be incurred thereby if in the sole judgment of the Chief and/or his/her designee such additional equipment and/or personnel are needed for assistance in the OTSEGO and are in fact called upon by the Chief and/or his/her designee. Page 12 ARTICLE V: FALSE ALARMS All parties acknowledge that excessive false alarms constitute a public nuisance. OTSEGO agrees to enforce its false alarm policy and to collect and forward to ELK RIVER penalties and fees collected from properties within the Fire Service Area for excessive false alarms. ARTICLE VI: TERM This Agreement shall commence on January 1, 2016, and shall expire on December 31, 2020, 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 ELK RIVER and OTSEGO except that OTSEGO may make changes to the Fire Service Area as provided for in Article III without signature and approval by both parties. 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 Vill: 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. If OTSEGO fails to pay for Services as provided in Article III hereof, ELK RIVER may terminate this Agreement upon 60 days' written termination notice. If OTSEGO fails to reimburse ELK RIVER for mutual aid costs as provided in Article IV hereof, or fails to collect and forward to ELK RIVER penalties for false alarms as provided in Article V hereof, 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, ELK RIVER may terminate this Agreement upon 180 days written termination notice. In the event that this Agreement is terminated, OTSEGO shall still be responsible for paying in full any amount owed to ELK RIVER for Services provided under this Agreement up to the date of termination. 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 Office of the City Clerk. Page 1 3 ARTICLE IX: SEVERABILITY The provisions of this contract shall be deemed severable. If any part of this contact is rendered void, invalid, or otherwise unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this contract. 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 14 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 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) Page 15 EXHIBIT B: FIRE SERVICE AREA -G (D ED N O N 0 Ln Li fD O v rt � I Q � II p w �* m Lri / �- N z Q ❑❑❑❑ O �■ N me C V `- Ln w F) r HIM Ol crou < rl fD ■ O 0 r4k �� � < tF —IM u � ryeBe �il� w � �L � o .q d' N „° ,� 00 —I b O rr OE ((D CQ cj) r+ O w v N — TI Cy) (D N (D hJ N rF 0 Page 16