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HomeMy WebLinkAbout4C - Township Fire ContractsCONSENT AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: BUDGETIMPAC~ 4 (C) RALPH TESCHNER FINANCE DIRECTOR CONSIDER APPROVAL OF TOWNSHIP CONTRACTS APRIL 4, 1994 FIRE & RESCUE The purpose for this agenda item is for the City Council to approve the attached annual fire and rescue contracts between the City and the Townships of Credit River and Spring Lake. The City has enjoyed a long term relationship with both townships with respect to cost participation on fire and rescue service. This arrangement has proven to be mutually beneficial to all parties from both a financial perspective as well as response standpoint. Typically, in the past, the contract agreement ran for a period of one year. However due to a significant increase in the proposed contract amount for 1994 the Townships expressed a desire for a more stable charge basis that would not spike dramatically from year to year. In return for this consideration the City requested a longer term commitment on behalf of the townships. This was accomplished by amortizing the cost of the fire and rescue equipment over a period of 15 years as opposed to the equipment certificate bond term of 4 years. By spreading out the equipment costs we were able to lower the contract amount. However, in exchange for deferring this income stream over a longer time frame, the City requested a longer term contract as well. The building payback for the new Fire Hall runs concurrently with the term of the bond issue (20 years). Therefore as a result of these negotiations a new formula for cost sharing was developed (see Item #3 of the Contract) along with an extended contract term of five years. This calculation compares very closely with our current method of cost allocation with the exception that the townships will now be given a pro-rata share credit for the Indian Community contract plus any fire and ambulance revenue that are paid by township residents. Another variation from previous contracts is that the townships will remit payment in two equal semi-annual installments (See Contract Item g4). As indicated by the contract the following payment amounts have been determined for 1994: 4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ALTERNATIVES: RECOMMENDATION: ACTION REQUIRED: Credit River Township - Credit River Township - $51,865.00 $54,680.00 The individual contract amounts total $106,545.00 which is $33,990 less than budgeted. This shortfall is anticipated to be offset by a similar or larger increase which is currently being negotiated with the SMDC community. The positive aspect of this payment structuring is that the City will continue to receive payment after our equipment bonds are retired and thereby subsequently recover these dollars. The following alternatives are available to the City Council: 1. Approve the contracts as submitted. 2. Amend the contract per Council direction and direct Staff to re-negotiate any such points with the townships. Staff believes the contract to be an equitable agreement that fairly represents both sides accordingly and would recommend approval of the Contract. Both townships have approved the contracts at their annual meeting subject to a great deal of discussion. This discussion pertained to reviewing such options ranging from contracting with other jurisdictions to establishing their own fire department. At the present, their consensus was that service provided by the Prior Lake Fire Department is the preferred choice based upon both response time and financial considerations. A motion as part of the consent agenda to approve the Fire and Rescue Contract between the City of Prior Lake and Credit River Township and the Fire and Rescue Contract between the City of Prior Lake and Spring Lake Township. FIRE AND RESCUE CONTRACT THIS AGREEMENT, entered into by and between the TOWNSHIP 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 Town; B. The Township deems it advisable to have available for the benefit of its residents the services of the Fire Department of Said City, and C. The City owns fire apparatus and equipment consistent with nationally recognized standards and employs fu'e fighters trained for the purpose of providing fire protection and emergency medical services (EMS). D. By this agreement the Town and City desire to contract for providing fn'e protection, to include interior structural, wildland, vehicle and miscellaneous fire suppression and emergency medical services (EMS) at the Basic Life Support level, and to set forth the various rights and obligations of the parties with regard to such services. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. TERM. This contract shall be for a term of (5) years commencing January 1, 1994, through December 31, 1998. Following expiration of the initial five (5) year term, this Contract shall be automatically renewed for successive one year terms unless terminated by either party giving the other party at least 180 days advance notice of its decision not to renew the Contract. 2. 1994 PAYMENT. The Township agrees to pay the City $54,680.00 for the performance of this Contract in 1994. Payment in future years shall be based upon the formula set forth in paragraph 3 below: 3. PAYMENT IN 1995 AND FUTURE YEARS. The Township shall pay a percentage of the City's cost of operating the City's Fire Department as set forth below. The City's cost shall be calculated as follows: + Annual Fire Operating Budget (excluding capital cost). + $169,960.00 (cost of existing Fire Hall amortized over 20 years). + Cost of fu'e fighting equipment amortized over 15 years. + Renovation cost of existing equipment amortized over 15 years. - State fire aid - Indian Community contract revenue for fire services. - Fire & Rescue service revenue (revenue derived from individuals and insurance payments for ambulance, rescue and fire service calls within the Township shall be credited one year forward for the previous year). COST Page 1 If Emergency Medical Service ("EMS") is no longer provided during the duration of this Contract period, an adjustment shall be credited to the Township to reflect all expense and revenue reductions associated with such ambulance service. The Township shall becom~ res_t}onsible for obtaining and paying for such EMS services fl' no longer provided by the City. Revenue derived from the sale of the ambulance units will be divided between the Township and the City in accordance with the percentage of cost the Township paid for the year when the equipment is sold. The Township shall pay a percentage of the City's cost determined as follows: Tax Capacity Valuation of Spring Lake Township 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 % Spring Lake Cost Percentage X Cost (see paragraph 3) = Annual Payment 4. PAYMENT. On or before the first day of August each year the city shall bill the Township for the following year detailing the formula upon which payment is sought. The Township shall pay the bill in two equal semi-annual installments due on or before the first day of January and the first day of June. 5. TOWNSHIP AGREEMENT. The Township agrees: A. To engage the services of the City for fire suppression and emergency medical services within the township during the term of this Contract. Bo It is further agreed that Said City shall not be held liable in any way to the township, or to any inhabitant or property owner thereof, or to any other person, firm or corporation for failure of Said City Fire Department to attend a fire or rescue call or to put out a fh'e, for damage to goods or property or for any other reason. As part of the consideration for providing said fire and rescue services, Said City is entitled to any and/or sums payable under the provisions of insurance policies of said residents for fire and/or rescue calls made by Said City Fire Department. The Township shall remit to the City insurance payments received for said services. Do The Township shall have enacted an ordinance authorizing a service charge to be imposed upon the owner, lessee or occupant of the property serviced by the City pursuant to this Contract for all or any part of the cost of the operation and maintenance of the fire protection and rescue system and services provided to the Township by the City of Prior Lake. 6. CITY AGREEMENT. The City agrees: Ao To respond to all alarms for fire and medical emergencies itself or through its agents. It is understood and agreed, however, that at times weather and road conditions will interfere with the rendering of service, and that any given time the equipment may be engaged for services in the City or in another Page 2 township. In any of these events, failure to provide the service herein agreed upon, shall not be taken to be a breach of this Contract. Bo 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 Chiefs duly authorized agent. C. To maintain mutual aid agreements in effect on the date this Contract is signed. 7. INSURANCE. The City and Township shall 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 8. TERMINATION OF CONTRACT. This Contract, following expiration of its initial five (5) year term, may be terminated by either the City or the Township by giving the other party at least one hundred eighty (180) days prior written notice of such cancellation. 9. AMENDMENT. This Contract may be amended at any time by the mutual consent of the parties. Any such amendment shall be in writing and will be attached to this Contract. IN WITNESS WHEREOF, the parties have caused this instrument to be executed by the respective officers thereof and the respective seals to be affixed hereto. TOWNSHIP OF SPRING LAKE (SEAL) Dated BY Chair of Town Board BY Clerk of Town Board CITY OF PRIOR LAKE Dated BY Its Mayor (SEAL) BY Its City Manager FIRESL.WRT Page 3 T T ~ ~ FIRE AND RESCUE CONTRACT THIS AGREEMENT, entered into by and between the TOWNSHIP OF CREDIT RIVER, 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 Town; B. The Township deems it advisable to have available for the benefit of its residents the services of the Fire Department of Said City, and C. The City owns fire apparatus and equipment consistent with nationally recognized standards and employs fire fighters trained for the purpose of providing fire protection and emergency medical services (EMS). D. By this agreement the Town and City desire to contract for providing fire protection, to include interior structural, wildland, vehicle and miscellaneous fire suppression and emergency medical services (EMS) at the Basic Life Support level, and to set forth the various rights and obligations of the parties with regard to such services. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. TERM. This contract shall be for a term of (5) years commencing January 1, 1994, through December 31, 1998. Following expiration of the initial five (5) year term, this Contract shall be automatically renewed for successive one year terms unless terminated by either party giving the other party at least 180 days advance notice of its decision not to renew the Contract. 2. 1994 PAYMENT. The Township agrees to pay the City $51,865.00 for the performance of this Contract in 1994. Payment in future years shall be based upon the formula set forth in paragraph 3 below: 3. PAYMENT IN 1995 AND FUTURE YEARS. The Township shall pay a percentage of the City's cost of operating the City's Fire Department as set forth below. The City's cost shall be calculated as follows: + + + + Annual Fire Operating Budget (excluding capital cost). $169,960.00 (cost of existing Fire Hall amortized over 20 years). Cost of fire fighting equipment amortized over 15 years. Renovation cost of existing equipment amortized over 15 years. State fire aid Indian Community contract revenue for fire services. Fire & Rescue service revenue (revenue derived from individuals and insurance payments for ambulance, rescue and fire service calls within the Township shall be credited one year forward for the previous year). COST Page 1 If Emergency Medical Service ("EMS") is no longer provided during the duration of this Contract period, an adjustment shall be credited to the Township to reflect all expense and revenue reductions associated with such ambulance service. The Township shall become responsible for obtaining and paying for such EMS services if no longer provided by the City. Revenue derived from the sale of the ambulance units will be divided between the Township and the City in accordance with the percentage of cost the Township paid for the year when the equipment is sold. The Township shall pay a percentage of the City's cost determined as follows: Tax Capacity Valuation of Credit River Township 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. = Credit River Cost % Credit River Cost Percentage X Cost (see paragraph 3) = Annual Payment 4. PAYMENT. On or before the first day of August each year the city shall bill the Township for the following year detailing the formula upon which payment is sought. The Township shall pay the bill in two equal semi-annual installments due on or before the first day of January and the first day of June. 5. TOWNSHIP AGREEMENT. The Township agrees: A. To engage the services of the City for fu'e suppression and emergency medical services within the township during the term of this Contract. It is further agreed that Said City shall not be held liable in any way to the township, or to any inhabitant or property owner thereof, or to any other person, firm or corporation for failure of Said City Fire Department to attend a fire or rescue call or to put out a fire, for damage to goods or property or for any other reason. As part of the consideration for providing said fire and rescue services, Said City is entitled to any and/or sums payable under the provisions of insurance policies of said residents for fire and/or rescue calls made by Said City Fire Department. The Township shall remit to the City insurance payments received for said services. Do The Township shall have enacted an ordinance authorizing a service charge to be imposed upon the owner, lessee or occupant of the property serviced by the City pursuant to this Contract for all or any part of the cost of the operation and maintenance of the fire protection and rescue system and services provided to the Township by the City of Prior Lake. 6. CITY AGREEMENT. The City agrees: Ao To respond to all alarms for fire and medical emergencies itself or through its agents. It is understood and agreed, however, that at times weather and road conditions will interfere with the rendering of service, and that any given time the equipment may be engaged for services in the City or in another Page 2 township. In any of these events, failure to provide the service herein agreed upon, shall not be taken to be a breach of this Contract. 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 Chiefs duly authorized agent. C. To maintain mutual aid agreements in effect on the date this Contract is signed. 7. INSURANCE. The City and Township shall 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 8. TERMINATION OF CONTRACT. This Contract, following expiration of its initial five (5) year term, may be terminated by either the City or the Township by giving the other party at least one hundred eighty (180) days prior written notice of such cancellation. 9. AMENDMENT. This Contract may be amended at any time by the mutual consent of the parties. Any such amendment shall be in writing and will be attached to this Contract. IN WITNESS WHEREOF, the parties have caused this instrument to be executed by the respective officers thereof and the respective seals to be affixed hereto. TOWNSHIP OF CREDIT RIVER (SEAL) Dated BY Chair of Town Board BY Clerk of Town Board CITY OF PRIOR LAKE Dated BY Its Mayor (SEAL) BY Its City Manager FIRESL.WRT Page 3