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HomeMy WebLinkAbout5H - Credit River Township Fire and Rescue Services Agreement 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: July 20,2009 AGENDA #: 5H PREPARED BY: Jerilyn Erickson, Finance Director AGENDA ITEM: APPROVAL OF A RESOLUTION TO RENEW AGREEMENT WITH CREDIT RIVER TOWNSHIP TO PROVIDE FIRE AND RESCUE SERVICES INTRODUCTION: The purpose of this agenda item is to have the City Council consider the approval of an Agreement with Credit River Township to provide fire and rescue services. DISCUSSION: Historv In 1998, the City entered into its most recent Agreement with Credit River Township to provide fire and rescue services. The initial term was for five years commencing January 1, 1999 with automatic one-year renewals. State statute 365.181 restricts townships from entering into agreements for fire services beyond a 1 O-year term. Due to this restriction, representatives from Credit River Township and Spring Lake Township requested a meeting with City staff to discuss the renewal of the Fire Agreement. CurrentCifcumsffinces Jerilyn Erickson, Finance Director and Doug Hartman, Prior Lake Fire Chief, met and/or corresponded with representatives from both Credit River Township and Spring Lake Township to negotiate the contents of the Fire Agreement. The Credit River Township Board approved the Fire Agreement on July 6, 2009 pending review by their attorney. Subsequent to the Board meeting, additional language was proposed for the Fire Agreement by the Credit River Township Attorney. The additional language has been reviewed by City staff and the City Attorney and incorporated into this final Agreement. A copy of the Fire Agreement executed by Township board members has been attached to this report. A copy of the Fire Agreement has been forwarded to Spring Lake Township for consideration by their Board. Conclusion This Fire Agreement will continue the long-standing relationship between the City of Prior Lake and the residents of Credit River Township to deliver fire and rescue services. ISSUES: The formula for calculating fire service costs has been retained as in the previous contract. There was a considerable amount of discussion about township needs. In the end the township board concurred with the need for a full www.cityofpriorlake.com RICouncil\2009 Agenda Reportsl07 20 091Renew H~\il~~~?vfikt7eJiH~QJh~n~~@2.44 7 .4245 time Fire Chief as this new position will provide for better ongoing communication between the board and the department and will act as a resource as well for township residents and their homeowners associations. FINANCIAL IMPACT: The Agreement with Credit River Township provides a funding source for a proportionate share of the operating and capital expenditures associated with the fire department. The estimated 2010 revenue from the Agreement with Credit River Township is $200,000. ALTERNATIVES: 1. Approve the Fire Agreement as submitted. 2. Table the Fire Agreement for a specific reason. 3. Deny the Fire Agreement. RECOMMENDED Alternative #1 MOTION: Re~j Frank Boyl , ( ~ R:ICouncill2009 Agenda Reportsl07 20 091Renew Fire Agreement with Credit River T ownship.DOC 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-xxx A RESOLUTION TO RENEW AGREEMENT WITH CREDIT RIVER TOWNSHIP TO PROVIDE FIRE AND RESCUE SERVICES Motion By: Second By: WHEREAS, The Township is authorized by law to provide fire protection for all of the property in said Township; and WHEREAS, The City owns fire apparatus and equipment generally consistent with nationally recognized standards and employs fire fighters trained for the purpose of providing fire suppression and rescue services; and WHEREAS, The Township deems it advisable to have available for the benefit of its residents the services of the Prior Lake Fire Department of Said City; and WHEREAS, This Fire Agreement will continue the long-standing relationship between the City of Prior Lake and the residents of Credit River Township to deliver fire and rescue services. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are authorized to execute the Agreement for Fire and Rescue Services with Credit River Township. PASSED AND ADOPTED THIS 20th DAY OF JULY 2009. YES NO I HauQen I Erickson I Hedberg I leMair I Millar Haugen Erickson Hedberg leMair Millar Frank Boyles, City Manager www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 AGREEMENT FOR FIRE AND RESCUE SERVICES THIS AGREEMENT, entered into by and between the TOWNSnIr" OF CREDIT RIVER, an organized township in Scott County. Minnesota. hereafter refened to as "Township" and the CITY OF PRIOR LAKE, a municipal corporation located in Scott County, Minnesota, hereafter referred to as the "City'" RECITALS A. The Township is authorized by law to provide fire protection for all of the property in said Township; B. The City owns fire apparatus and equipment generally consistent with nationally recognized standards and employs fire fighters trained for the purpose of providing fire supp..-ssion and rescue services. C. The Township deems it advisable to have available for the benefit of its residents the services of the Prior Lake Fire Department of Said City, and NOW, THEREFORE, IN CONSIDERATION OF TI1EIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. SERVICES PROVIDED. During the term of this Agreement the City agrees to provide to the Township with Fire and Rescue Services ("Services") for: interior and exterior structures, undeveloped land, vehicles and miscellaneous fire rescue activities. 2. TERM. This Agreement shall be for a term offive (5) years from Janumy 1.2009 through December 31, 2013. Following expiration of the initial five (5) year term, this Agreement will renew automatically for successive one (1) year terms unless terminated by either party. After the initial five year term, this contract may be terminated effective on December 3151 of any given year, provided that Wlitten notice of such termination is delivered at least 180 days prior to said December 31st date via personal delivery to the respective City Clerk or Town Clerk. 3. PAYMENT. On or before the first day of August each year. the City shall notify the Township of the proposed cost of fire services enumerated herein for the following year. The final amount shall be based upon the actual budget adopted by the Prior Lake City Council for each year of this Agreement period. The City shall invoice and the Township shall pay the bill in two equal semi~annual installments due on the fifteenth day of Janumy and the first day of June. Payments shall be based upon the formula set forth in paragraph 4 below: 4. PAYMENT CALCULATION METHOD. The Township shall pay a percentage ofthe City's cost of operating the City's Fire Department as set forth below. A. The City's cost shall be calculated as follows: I Costs included: I Annual Fire Operating Budget (excluding capital costs) I Cost of Fire Station I (20 year am0l1ization - $169,960/year) I Cost of existing and new fire fighting equipment (15 year amortization) I Cost of renovating existing equipment (15 year amortization) I I Credits to be applied to above costs: I State Fire Aid received (2 years prim') I Shakopee Mdewakanton Sioux Community contribution (as noted below) Historically, the City has received a contribution from the Shakopee Mdewakanton Sioux Community (SMSC) for police and fire services. The City has passed on to the Townships the benefit of this operating cost subsidy. The SMSC has implemented its own fire services and therefore, the City no longer receives a contribution from the SMSC for fire services, To mitigate the impact of eliminating the historic $70,000 per year subsidy that has been applied to the annual cost calculation, the City reserves the right to incrementally phase out the subsidy as follows: Year 1 - $10,000 Year 2 - $10,000 Year 3 ~ $15,000 Year 4 - $15,000 Year 5 - $20,000 B. The Township shall pay a percentage of the City's cost determined as follows: Tax Capacity Valuation of Credit River Township Provided bv Scott County for Year Prior to Year Pavment is Due (divided by) the Combined Tax Capacity Valuation of Prior Lake and those Pa11icipating Townships for Year Prior to Year Payment is Due. = Credit River Cost % C. Credit River Cost Percentage (4B) X Cost (4A) = Annual Payment 5. CITY AGREEMENT. The City agrees: A. To respond to all alarms fOl' fire and rescue itself or through its agents. It is understood and agreed, however, that at times weather and road conditions will interfere with the rendering of Services, and that any given time the equipment may be engaged for Services in the City, mutual aid emergency service, or in another township. In any of these events failure to provide the Service herein agreed upon shall not be considered a breach of this Agreement. B. The operation, management and control of the people and equipment provided by the City shall at all times be under the charge and direction of the City Fire Chief or the Chief's duly authorized agent. C. To consider participation in mutual aid agreements regarding fire protection services. D. To meet with representatives from the participating townships at minimum two times per year (December and June) for purposes of reviewing and receiving input on financial reports, call activity, and future equipment, training and personnel needs. 6. INSURANCE. The City and Township shall each maintain insurance of the types listed below and such other coverage as it deems appropriate: A. Workers Compensation ~ statutory limits B. Comprehensive Liability - statutOlY limits 7. INDEMNIFICATION. The City agrees, to the fullest extent permitted by law to indemnify and hold the Township harmless from any damage, liability 01' cost (including reasonable attorneys' fees and cost of defense) to the extent caused by the City's negligent acts, errors 01' omissions in the performance of services under this Agreement and those of its contractors, subcontractors, consultants or anyone whom the City is legally liable and arising from the provision of services under this Agreement. The Township agrees, to the fullest extent permitted by law to indemnify and hold the City harmless from any damage, liability or cost (including reasonable attorneys' fees and cost of defense) to the extent caused by the Township's negligent acts, errors or omissions in the performance of services under this Agreement and those of its contractors, subcontractors, consultants or anyone whom the Township is legally liable and arising from the provision of services under this Agreement. The City is not obligated to indemnify the Township in any manner whatsoever for the Township's own negligence. . Under no circumstances, however, shall either the City or the Township be required to pay on behalf of itself and other parties, any amounts in excess of the limits on liability established by Minn, Stat. ~ 466. 8. DAMAGE TO CITY EQUIPMENT AND INSURANCE. The City will make no claim against said Township on account of damage to the property of said City while in the fire service of said Township, and will carlY liability insurance protecting itself against damage claims of its firemen for personal il1iul'ies sustained while in the service of said Township, and fulther will callY liability insurance saving both parties harmless so far as negligent acts of the firefighters in the employ of said City are concerned, and not otherwise. 9. EMPLOYMENT RESPONSIBILITIES. It is understood and agreed that the Township shall have no responsibility whatsoever toward the fire fighters or other emergency personnel including any employment related responsibilities such as training, supervision, performance reviews, discipline, compensation, benefits, insurance coverages, compliance with any employment related federal, state, and local laws and lUles such as OSHA, ERISA, RLSA, FMLA, or any other employment related responsibilities or liabilities. It is further agreed that except for paying the agreed upon Annual Payment Amount as set out in this Agreement, the Township shall have no responsibility for acquiring, operating, maintaining, housing, or replacing equipment as needed to provide the fire services described herein. 10. EMERGENCY SERVICE CHARGE. The Township, in its sole discretion, may exercise its authority to impose and collect an emergency service charge on those persons and properties receiving emergency services, including fire services, within the Township. The City shall have no right to, 01' interest in, any service fees collected by the Township. If the Township imposes an emergency service charge it shall provide the City a list of the specific types of information it determines it needs collected in order to successfully impose and collect the charge, City shall make a good faith effort to collect the requested information for each service call to the Township and promptly provide the Township with the information it collected. 11. NO WAIVER. Nothing herein shall be constlUed to waive or limit any immunity from, 01' limitation on, liability available to either party, whether set fmth in Minnesota Statutes Chapter 466 01' othelwise. 12. MODIFICATION. This writing contains the entire agreement between the parties and no alterations, variations, modifications, 01' waivers of the provisions of this Agreement are valid unless reduced to writing, signed by both City and Township. 13. SUBCONTRACTING & ASSIGNMENT, City shall not subcontract or assign any pOltion of this contract to another without prim written permission from the Township. Services provided to Township pursuant to a mutual aid agreement City has, 01' may enter into, with another entity does not constitute a subcontract 01' assignment requiring prior approval of Township so long as City remains primarily responsible for providing fire services to the Township. 14. MINNESOTA LAW GOVERNS. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in Scott County in the State of Minnesota. 15. SEVERABILITY. The provisions oftrus Agreement shall be deemed severable. If any part of this Agreement is rendered void, invalid, 01' othelwise unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement. 16. AMENDMENT. This Agreement may be amended at any time by the mutual consent of the parties. Any such amendment shall be in writing and will be an amendment to this Agreement. 17, JOINT VENTURE. This Agreement shall not constitute a joint venture between the parties. IN WITNESS WHEREOF, the pal1ies have caused this inst11lment to be executed by the respective offices thereof and the respective seals to be affixed hereto. TOWNSHIP OF CREDIT RIVER Dated 1~J9 By~~J ChairofT~nBoard .J v 'If ~ wn Board ' (SEAL) C Dated BY Its Mayor (SEAL) BY Its City Manager