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fire calls, to allocate equipment and resources, and to request mutual aid assistance at his/her <br />discretion and professional judgment. <br />r,L'1I�1i�IIR]JIJiI�i!YI <br />For 2016, OTSEGO agrees to pay ELK RIVER an annual fee of $60.56 per parcel of property located within <br />the Fire Service Area, as determined by the Wright County Auditor's Office. <br />The total cost for 2016 is $212,686.72 (3,512 parcels). <br />The annual fee shall be paid in two equal payments. The first payment shall be made within the month <br />of January and the second payment shall be made within the month of July. <br />The annual fee shall be adjusted on January 1st of each subsequent year that this Agreement is in effect, <br />as follows: <br />A. The Otsego may adjust the Fire Service Area boundary annually. Written notification of the <br />revised Fire Service Area as approved by the Otsego City Council must be provided to ELK RIVER <br />no later than September 1 of each year. <br />B. The number of parcels shall be adjusted to reflect the then current number of parcels located <br />within the Fire Service Area, as determined by the Wright County Auditor's Office; and <br />C. The total fee shall be determined by result of application of the following formula: <br />TOTAL FEE _ (Approved Annual Fire Department Budget + 15% Administrative Factor+ <br />Annual Depreciation of Equipment) x % of the total number of Parcels in Fire <br />Service Area <br />D. The per -parcel fee over the term of this Agreement after application of the above formula shall <br />not exceed 3% over the fee for the immediately preceding year. The total fee due may increase <br />more than 3% based on the number of parcels in the Fire Service Area. <br />E. The parties shall meet and review the proposed fee increases each year prior to August 1'` <br />ARTICLE IV: MUTUAL AID <br />Because ERFD has heretofore entered into mutual assistance firefighting agreements with other fire <br />departments, municipalities, and agencies possessing equipment and/or personnel, which equipment <br />and/or personnel could be called by the Chief and/or his/her designee to a call in OTSEGO, OTSEGO <br />agrees to pay such additional cost as may be incurred thereby if in the sole judgment of the Chief and/or <br />his/her designee such additional equipment and/or personnel are needed for assistance in the OTSEGO <br />and are in fact called upon by the Chief and/or his/her designee. <br />Page 12 <br />