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B. Reimbursement for SERVICES <br />OTSEGO shall reimburse ELK RIVER for SERVICES as follows: <br />1. During the five (5) calendar years between 2016 and 2020, 20% of the CALLs <br />responded to by ERFD have been to sites in the FSA. <br />2. For the calendar year 2022, OTSEGO shall reimburse ELK RIVER for SERVICES <br />in an amount equal to 20% of the 2022 ERFD Adjusted Budget, plus 20% of the <br />ERFD fleet depreciation (based on replacement cost). <br />3. The ERFD Adjusted Budget shall be the total ERFD budget, less: <br />(a) Amounts budgeted for Emergency Management; and <br />(b) Amounts budgeted for Fire State Aid. <br />(c) Line item for budgeted fleet purchases. <br />4. In years 2023 and beyond, OTSEGO's reimbursement for SERVICES each <br />calendar year shall be the total of: <br />(a) the percentage of the ERFD Adjusted Budget for that year equal to the <br />percentage of CALLs generated in the FSA over the five (5) years <br />preceding the most recent year; and <br />(b) an additional amount equal to the same percentage as calculated in 4(a) <br />of the ERFD depreciation for that year. <br />ARTICLE II FIRE INSPECTION SERVICES <br />Commencing on January 1, 2022, ELK RIVER shall undertake required Fire Inspection within the <br />Elk RIVER FSA of OTSEGO. <br />A. Process and Indemnification <br />1. OTSEGO shall provide to ELK RIVER an annual list of sites that require fire <br />inspections. <br />2. ELK RIVER shall provide to OTSEGO, at the time of billing, documentation and <br />reports (in written or electronic format) regarding each inspection setting forth the <br />address of the site inspected, the time spent on the inspection, observations made <br />at the site, and the result of the inspection. <br />3. ELK RIVER shall defend, hold harmless and fully indemnify OTSEGO from any <br />and all claims or causes of action of whatever nature resulting from or arising from <br />the fire inspections undertaken pursuant to this AGREEMENT. However, nothing <br />in this AGREEMENT shall waive any immunities or liability caps applicable to ELK <br />RIVER under Minnesota statutory or case law, including Minnesota Statutes, <br />Chapter 466. <br />Page 12 <br />