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ITEM 6.10 clTy or Ot MINNES01A 9 DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR; MEETING DATE; Administration Lori Johnson, City Administrator October 22, 2012 PRESENTER(s); REVIEWED BY, ITEM #; Lori Johnson, City Administrator 6.12013-2017 Fire Protection Agreement with Albertville AGENDA ITEM DETAILS RECOMMENDATION, Approve the 2013 — 2017 Fire Protection Agreement with the City of Albertville, ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BAC KGROUNDIJUSTIFICATION: The current contract for fire service with the City of Albertville expires on December 31, 2012, The attached Fire Protection Agreement (Agreements takes effect January 1, 2013, and continues fire service with Albertville until December 31, 2017, unless cancelled per the provisions in the Agreement, In 2011 the City Council approved reducing the number of fire departments serving Otsego from four to three effective 2013; thus, the service area covered by Albertville includes the area previously served by Monticello effective January 1, 2013. The new contract reflects that change, There are other two main changes to the new contract that are noted below, 1, Five Year Contract: In the past, the contracts have been for a one year term requiring annual approval, This contract is a five year contract with a cancelation clause that requires a year's notification (see Section 8 of the Agreementj. The extended contract brings stability and continuity of fire service to Otsego and assists Albertville in its budgeting and planning processes.. Fire Advisory Subcommittee; The contract requires that a Fire Advisory Subcommittee be formed consisting of two Council members, the city administrator, and the finance director from each city along with the Albertville fire chief. The Subcommittee is charged with reviewing ongoing fire service under the Agreement, the proposed fire budget, addressing issues arising from the Agreement, reviewing the operating and capital budgets, and planning for future joint fire and emergency response services. Additionally, the Subcommittee must develop a plan to address the long term direction of the department. The Subcommittee is Required to meet at least two times per year. City Attorney Andy MacArthur has reviewed and approved the contract language as presented in the Agreement. The Administrative Subcommittee has reviewed this Agreement and recommends approval. The Albertville City Council approved the Agreement on October 15. Finally, two Councilmembers must be appointed to serve on the Fire Advisory Committee, The Subcommittee will not meet until 2013; therefore, the Council may delay the appointments until January, SUPPORTING DOCUMENTS: X ATTACHED a NOME List; 2013-2017 Fire Protection Agreement Otsego Fire District Boundaries Map MOTION, (Please word motion as you viouid like it to appear in the minutes.) Motion to approve the 2013 — 2017 Fire Protection Agreement with the City of Albertville. BUDGET INFORMATION FUNDING: Estimated 2013 Cost $156,000 {Includes a one- time additional payment of $10,000 in accrued payroll costs] Included in 2013 Proposed General Fund Budget BUDGETED: RYES .R ACTION TAKEN n APPROVED AS REQUESTED o DENIED a TABLED n OTHER (List changes) COMMENTS: 2013-2017 FIRE PROTECTION AGREEMENT WITH THE CITY OF OTSEGO This agreement is made and entered into by and bet�veen the City of Albertville, a municipal corporation located in the County of Wright, State of Minnesota, and the City of Otsego, a municipal corporation located in the County of Wright, State of Minnesota, WHEREAS, Otsego desires the services of the fire department of Albertville in case of fires occurring in Otsego, as well as the emergency medical services of Albertville in case of a medical emergency, and WHEREAS, Albertville maintains a volunteer fire department with emergency medical response capability, which department is available to provide fire protection and emergency medical response services to properties located in Otsego, and THEREFORE, it is agreed by and between said paries as follows; 1, Albertville, through its fire department, Shall provide fire protection and emergency medical response services to those properties in Otsego identified on the Fire District map attached as Exhibit A to this Agreement. Fire service provided by Albertville includes general structural and nonstructural, grass and forest, and vehicle firefighting and general rescue services including vehicle and equipment extraction and general search and rescue, hazardous materials response, fire code enforcement (but only on existing commercial and industrial structures located in the district) and high level, water and confined space rescue. Such fire protection and emergency medical response services shall be provided from January 1, 2103 through December 31, 2017, unless otherwise terminated pursuant to the terms of this Agreement, Otsego shall pay Albertville a Fire Service Fee ("Fire Service Fee") annually according to the formula set forth in this paragraph in exchange for the provision of fire protection and emergency medical response services as described above. Annual payments shall be made in four equal installments on or before every April 1st, July 1st, October 1 't and December 31st, The Fire Service Fee shall be calculated by multiplying the adjusted fire department budget for the year fire service is to be provided (consisting of the fire department budget less state fire aids received) times the value of the Taxable Tax Capacity within the Fire District that is located in Otsego divided by the total Taxable Tax Capacity of the entire Fire District, where the Taxable Tax Capacity is the Taxable Tax Capacity used to calculate the real property taxes due in the year fire service is provided, For example, if the fire department budget is $380,000, the Taxable Tax Capacity of the Fire District area ill Otsego is $3,000,000, and the total Taxable Tax Capacity of the entire Fire District is $10,000,000, then Otsego's annual payment to Albertville for that year under this Agreement would be $114,000, calculated as $380,000 times ($3,000,000/$10,000,000), Albertville shall issue a statement to Otsego by August of each year detailing the following year's estimated fire service amount due. In the event that Otsego disputes Albertville's calculations or the basis for the calculations, the paries shall within thirty (30) days after such objections are delivered to Albertville meet and negotiate in good faith a resolution to the objections, 3. Otsego and Albertville's respective City Councils shall both appoint Council representatives to a joint Fire Advisory Subcommittee for the purpose of reviewing ongoing fire service under this Agreement, the proposed fire budget, to address issues arising from the Agreement, to review the operating and capital budgets, and to plan for future joint fire and emergency response services, The Subcommittees shall meet as often as is necessary, but shall meet at least two (2) times per year, The Subcornmitttee shall consist of two elected officials from each City, the City Administrator of each City, the Finance Directors from each City and the Albertville Fire Chief, The Subcommittee shall develop a plan to address the long-term direction of the department, 4, Albertville shall take all reasonable steps to insure that it has at all tunes adequate fire fighting and medical personnel and equipment available and ready to provide protection to Otsego's citizens and property as provided for In this Agreement. S. Albertville shall at all times keep in place liability insurance coverage to protect Otsego's interests and to fulfill Albertville's obligations under this Agreement in at least the amount of the maximum tort liability limits set forth in Minn, Stat, 466.04. 6, Albertville shall fully indemnify, hold harmless and defend Otsego from all claims arising out of the negligence of Albertville, its employees, officers or agents In performing its duties under this Agreement, provided such indemnification shall not exceed the maximum tort liability limits set forth in Minn, Stat, 466,04, 7. Albertville's obligation to provide fire protection service and emergency medical response shall be subject to the following; If road and weather conditions at the time of the call are such that the firehiledical ruin cannot be made with reasonable safety to men and equipment, in the opinion of the Fire Chief or his Deputy in charge, no obligation arises under this agreement on the pail of the City of Albertville to answer such Call and no person or party shall have recourse against the City of Albertville or City of Otsego for reasonable refusal to answer such call, In the event that a sufficient amount of the fire fighting/medical equipment and the number of volunteer firefighters, or both, are committed at the tln]e of the fire call, in sole judgment of the Fire Chief or his Deputy, to fighting pre-existing fires or attending a pre-existing emergency, so as to render the available equipment and manpower inadequate to answer a fire or medical call from Otsego, no obligation shall arise under this agreement to answer such call, provided that Albertville males all reasonable efforts to answer the fire or inedical call in Otsego, including requests for mutual aid, c. In the event a fire call by Otsego is answered by Albertville, but before the fire in question is extinguished, the fire fighting equipment or volunteer firefighters, or both, are needed to fight another fire in the Fire District or to respond to another emergency elsewhere in the Fire District, the Chief or his Deputy without liability therefore to any person or to Otsego under this agreement, may in his reasonable judgment, redeploy the firefighting equipment, volunteer firefighters and emergency response equipment as they deem necessary given the competing emergency situations, If a decision is made to leave a pre-existing fire in Otsego, Albertville shall utilize all resources reasonably at its disposal to provide alternative services to extinguish the fire in Otsego, including requests for mutual aid, The reasonable judgment of the Fire Chief or his Deputy shall be final and no person or party shall have recourse against the City of Albertville or the City of Otsego for any damages or losses resulting from such action or decision, The parties acknowledge that Albertville has entered into mutual aid contracts with other fire departments in other municipalities, and that in the event of concurrent fire calls or other concurrent emergencies within the Fire District, ,Albertville Will call for mutual aid to serve one or all such emergencies as deemed necessary by the Fire Chief or his Deputy. Third parties shall have no recourse under this Agreement against either party to the Agreeruent. Because the City of Albertville has heretofore entered into mutual assistance fire fighting agreements with other municipalities possessing firefighting equipment and firefighters, which equipment and firefighters could be called by the Chief or his Deputy to a fire or other emergency in Otsego, the City of Otsego agrees to pay such additional cost as may be incurred thereby if, in the sole reasonable judgment of the Chief or his Deputy, such additional fire fighting equipment/emergency response equipment and firefighters are needed to respond to an emergency in Otsego and are in fact called to such emergency by the Chief or his Deputy. Otsego shall be provided an itemized list and explanation for any additional costs incurred under this section and billed to Otsego. This agreement shall run for the period set forth in paragraph 1, provided, however, that this Agreement may be terminated by either party following one year's Written notice to the other party. In such case, this Agreement shall terminate on the first December 31St following the first anniversary of the termination date (e,g,, if a termination notice is served on October 17, 2014, this Agreement would terminate on December 31, 2015). Written notice of termination shall be effective upon personal service of the termination notice upon the City Clerk of the non -terminating city. 9, Albertville shall provide Otsego With the names and addresses of those parties served in Otsego with fire, medical or rescue services along With the incident report from the event. Otsego may bill such parties separately and keep the proceeds from such billings. 10, Albertville owns all fire/rescue equipment used by the fire department and shall have the sole discretion to determine when and how to dispose of such equipment, provided, however, that the proceeds from the sale of such equipment shall be credited to Albertville's fire department fund, 11. Albertville owns the fire hall and shall have the sole discretion to determine when and how to dispose of it, provided, however, that the proceeds from the sale of the fire hall shall be credited to Albertville's fire department fund. IN WITNESS WHEREOF, the parties have Hereunto set their hands and seals this day of 12012. CITY OF ALBERTVILLE CITY OF GTSEGO By: By: Mark Meehan, Mayor ATTEST; Jessica Stockamp, Mayor Kimberly A. Olson Tami Loff City Clerk City Clerk JLDISMIMER: This product is for informational purposes and may not have been kRre"Istrict a a z�� OA O'S� prepared for, or be suitable for legal, engineering, or surveying I= -- purposes. Users of this information should review or consult the primary data and inforni6on sources to ascertain the usability Boumidailies Map of thelnformatlon.