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Otsego Contract for Firefighting Services with the City of Elk River (Elk River Fire Department) <br />January 1, 2011 <br />from any claims of loss or damage arising from the CITY OF ELK RIVER's <br />undertaking to furnish firefighting Services under this Agreement, except for loss <br />or damage caused by the gross negligence or criminal acts of the CITY OF ELK <br />RIVER or the FIRE DEPARTMENT. <br />D. In the event that the FIRE DEPARTMENT is committed and unavailable at the <br />time of dispatch to a call in the CITY OF OTSEGO, the FIRE DEPARTMENT will <br />respond to the call as soon as reasonably possible in the sole discretion of the <br />Fire Chief and/or his/her designee. The Fire Chief and/or his/her designee has <br />the sole authority to prioritize fire calls, to allocate equipment and resources, and <br />to request mutual aid assistance, at his/her discretion and professional judgment. <br />ARTICLE III: PAYMENT <br />For 2011, the CITY OF OTSEGO agrees to pay the CITY OF ELK RIVER an annual fee <br />of $52.28 per parcel of property located within the Fire District, as determined by the <br />Wright County Auditors office. <br />The total cost for 2011 is $169,805.44 (3,248 parcels). <br />The annual fee shall be paid in two equal payments. The first payment shall be made <br />within the month of January and the second payment shall be made within the month of <br />July. <br />The annual fee shall be adjusted on January 1 of each subsequent year that this <br />Agreement is in effect, as follows: <br />A. The number of parcels shall be adjusted to reflect the then current number of <br />parcels located within the Fire District, as determined by the Wright County <br />Auditors office; and <br />B. The total fee shall be determined by result of application of the following formula: <br />TOTAL FEE _ (Approved Annual Fire Department Budget + 15% <br />Administrative Factor + Annual Depreciation of Equipment) x <br />of Parcels in Fire District <br />C. The per parcel fee over the term of this Agreement after application of the above <br />formula shall not exceed 3% over the fee for the immediately preceding year. <br />The total fee due may increase more than 3% based on the number of parcels in <br />the Fire District. <br />D. The parties shall meet and review the proposed fee increases each year prior to <br />August 1. <br />Page 2 <br />