3.3. SR 02-22-2011 - Laserfiche WebLink

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REQUEST FOR ACTION TO ITEM NUMBER Ci Council 3.3. AGENDA SECTION MEETING DATE PREPARED BY Consent A enda Febru 22, 2011 T. ohn Cunnin ham, Fire Chief ITEM DESCRIPTION REVIEWED By Otsego Fire Contract (Revised) Tim Simon, Finance Director REVIEWED BY ACTION REQUESTED Request to approve the revised 2011 firefighting services contract for the City of Otsego. BACKGROUND/DISCUSSION On December 20, 2010, the City Council approved the draft firefighting services contract for the City of Otsego. In subsequent discussions with the City of Otsego, some changes have been made to the original draft. The cost model and the fee for service has remained the same since the draft copy you received in December. The renewed contract will bring the City $169,805.44 in revenue compared to $99,980 received in 2010 under the old agreement. Staff met with City of Otsego staff and reviewed the requested changes. The changes are mostly technical in nature and do not alter the overall scope/intent of the contract. Below is a summary of the changes: • Article II, C: Language added to provide indemnification to the City of Otsego for gross negligence or criminal acts by the City of Elk River or the (Elk River) Fire Department. • Article III: Added cost formula to contract and clarification to 3% annual increase provision. With this change, additional clarification was added to ensure receivables reflect actual number of parcels within Fire District (which may result of an overall increase of more than 3% to the previous year's billable rate). Added language for both parties to meet to discuss proposed fee increases prior to August 1 of each year. • Article N: Revised language of mutual aid reimbursement policy. The City of Otsego will pay costs incurred for mutual aid requests to the Otsego Fire District. • Article V: Revised language of false alarm reimbursement policy. City of Otsego will enforce its alarm policy and forward the City of Elk River all penalties and fees. • Article VIII: Language added to Termination clause to separate terms for failure to pay contract rate opposed to mutual aid/false alarm payments. If the City of Otsego fails to make payment under Section III, Elk River may terminate the contract within 60 days. If a dispute regarding mutual aid and/or false alarm fees arise and is not settled within 30 days, the City of Elk River may terminate the Agreement upon 180 days written notice. Staff reviewed the changes and does not have any objection. The City of Otsego has already paid'/z of the annual fee as outlined in Article III. N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\02-22-2011\Otsego Fire Contract.docx