HomeMy WebLinkAbout5C - Fire & Rescue Services Agreement with Spring Lake Township
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
September 8, 2009
5C
Jerilyn Erickson, Finance Director
CONSIDER APPROVAL OF A RESOLUTION TO RENEW AGREEMENT WITH
SPRING LAKE 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 Spring lake Township to provide fire and rescue services.
DISCUSSION:
ISSUES:
Historv
In 1998, the City entered into its most recent Agreement with Spring Lake
Township to provide fire and rescue services. The initial term was for five years
commencing January 1, 1999 with automatic one-year renewals thereafter. 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
Spring lake Township and Credit River Township requested a meeting with City
staff to discuss the renewal of the Fire Agreement.
Current Circumstances
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 Fire Agreement was approved by the Township Board on
July 6, 2009 and the City Council on July 20, 2009.
The Fire Agreement which the Spring lake Township Board approved is a
modified version of the one that was approved with Credit River Township but is
consistent with past Agreements. A copy of the Fire Agreement executed by
Township board members has been attached to this report.
Conclusion
This Fire Agreement will continue the long-standing relationship between the City
of Prior Lake and the residents of Spring Lake Township to deliver fire and
rescue services.
The formula for calculating fire service costs has been retained as in previous
Agreements. There was a considerable amount of discussion about township
needs. In the end the township board concurred with the need for a full 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.
www.cityofpriorlake.com
R\Counci!\2009 Agenda Reports\09 08 09\Spring L~~s~~~~4:l~e igrf~nill'OO.44 7.4245
FINANCIAL
IMPACT:
The Agreement with Spring Lake 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 Spring
lake Township is $140,000.
ALTERNATIVES: 1. Approve the Fire Agreement as submitted by adoption of the attached
resolution.
2. Table the Fire Agreement for a specific reason.
3. Deny the Fire Agreement.
RECOMMENDED Alternative #1
MOTION:
Reviewed by: /
/;;',l15/J/1t
Frank Boyles, City Manager
R\Council\2009 Agenda Reportsl09 08 09\Spring Lake Township Agenda RepJrt Fire AgreementDOC
RESOLUTION 09-xxx
A RESOLUTION TO RENEW AGREEMENT WITH SPRING lAKE TOWNSHIP
TO PROVIDE FIRE AND RESCUE SERVICES
Motion By:
Second By:
WHEREAS,
Spring lake Township is authorized by law to provide fire protection for all of the
property in the 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,
Spring Lake 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 Spring lake 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 Spring lake Township.
PASSED AND ADOPTED THIS 8th DAY OF SEPTEMBER 2009.
YES
NO
Haugen
Erickson
Hedberg
LeMair
Millar
Haugen
Erickson
Hedberg
LeMair
Millar
Frank Boyles, City Manager
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
AGREEMENT FOR~.u.<E AND RESCUE SERVICES
I111S AGREEMENT, entered into by and between the TOWNStur OF SPRING LAKE, an
organized township in Scott County, Minnesota, hereafter referred 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
suppression 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, IllliREFORE, IN CONSIDERATION OF llllilK MUTUAL COVENANTS lllli
P ARllliS 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 of five (5) years from January 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. If a party intends to terminate this Agreement, it must
provide the other party at least 180 days advance written notice of its decision to
terminate the Agreement.
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 January 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
of the 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 amortization - $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
Credits to be applied to above costs:
State Fire Aid received (2 years prior)
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 Spring Lake Township
Provided bv Scott County for Year Prior to Year
Payment is Due (divided by) the Combined Tax
Capacity Valuation of Prior Lake and
those Participating Townships for Year Prior to
Year Payment is Due.
Spring Lake
Cost %
C.
Spring Lake Cost Percentage (4B) X Cost (4A)
Annual Payment
5. CITY AGREEMENT. The City agrees:
A. To respond to all alarms for 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 - statutory limits
7. INDE~.l.If1CATION. The Township shall indemnify, defend, and hold the City, its
Council, agents, employees, attorneys and representatives harmless against and in
respect of any and all claims, demands, actions, suits, proceedings, liens, losses, costs,
expenses, obligations, liabilities, damages, recoveries, and deficiencies, including
interest, penalties, and attorneys' fees, that the City incurs or suffers, which arise out of,
result from or relate to this Agreement. The responsibility to indemnify and hold the
City harmless from claims arising out of or resulting from the actions or inactions of
the City, its Council, agents, employees, attorneys and representatives does not extend
to any willful or intentional misconduct on the part of any of these individuals. Under
no circumstances, however, shall 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. 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.
9. JOINT VENTURE. This agreement shall not constitute a joint venture between the
parties.
IN WITNESS "'HEREOF, the parties have caused this instrument to be executed by the
respective offices thereof and the respective seals to be affixed hereto.
Dated & / I liD q
I I
TOWNSHIP OF SPRlNG LAKE
BY~M~ ~~ ~~}.-12..~""
Chair of 'F.6wn Board
ByJ(t(I-~j,J . nL
Clerk ~ITo~ard
(SEAL)
CITY OF PRIOR LAKE
Dated
BY
Its Mayor
(SEAL)
BY
Its City Manager