10.b1 Staff report- May Township Contract 2024-2026
Staff Report
Date of Meeting: August, 15th 2023
To: City Council
From: Mike Hinz, Fire Chief
Re: 2023-2026 May Township Fire Contract
Background:
Scandia Fire contracts with May Township to provide fire protection to about 15% of the township. Stillwater
Fire and Marine Fire provide coverage to the remainder of the township. We negotiate a new contract every 3
years and the current contract expires December 31st of this year.
Issue:
Should the city council approve presenting May Township these contract costs?
Proposal Details:
Present May Township with the included excel worksheets and contract in the following amounts.
2024 = $35,816
2025 = $36,443
2026 = $46,007
Fiscal Impact:
This contract off-set’s the fire department budget for expense incurred in May Township. It will also cover a
portion of debt payments for capital assets. If this contract is not approved capital debt would have to be
covered completely by the City of Scandia.
Options:
(1) Approve presenting the 3 year contract costs to May Township.
(2) Choose a different amount to charge
(3) Discontinue contract
Recommendation:
Option (1).
City of Scandia Fire Department Budgets, 2012-2028
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 2024 2025 2026 2027 2028
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Estimated Adopted Proposed Estimated Estimated Estimated Estimated
Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expense Expenses Budget Budget Budget Budget Budget Budget
2% increase 2% increase 2% increase 2% increase
Operating Budget $361,522 $276,840 $258,138 $224,038 $362,868 $192,189 $276,310 $251,217 $212,753 $309,597 $302,527 $330,400 $330,140 $351,323 $358,349 $365,516 $372,827 $380,283
Less Municipal Contribution to
Relief Association $18,258 $19,200 $18,259 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Plus Debt Service Payments $43,108 $45,485 $42,938 $50,000 $50,000 $50,000 50,000.00$ 150,000.00$ 150,000.00$ 150,000.00$
Total Budget $386,372 $303,125 $282,817 $224,038 $362,868 $192,189 $276,310 $251,217 $212,753 $309,597 $302,527 $380,400 $380,140 $401,323 $408,349 $515,516 $522,827 $530,283
Change from Previous Year, not
including Relief Assoc.-21.55%-6.70%-20.78%61.97%-47.04%43.77%-9.08%-15.31%45.52%-2.28%25.65%5.57%1.75%26.24%1.42%1.43%
May Township Contract Cost $33,551 34,558$ 35,594$ 32,248$ 33,216$ 34,212$ 34,771$ 35,000$ 35,000$ 30,710$ 31,493$ 32,300$ 35,816$ 36,443$ 46,007$ 46,659$ 47,325$
Contract Percentage change from
Previous Year 3.00%3.00%3.00%-9.40%3.00%3.00%1.63%0.66%0.00%-12.26%2.55%2.56%10.89%1.75%26.24%1.42%1.43%
Cost if increased 3% since 2012 34,558$ 35,594$ 36,662$ 37,762$ 38,895$ 40,062$ 41,263$ 42,501$ 43,776$ 45,090$ 46,442$ 47,836$ 49,271$ 50,749$ 52,271$ 53,840$ 55,455$
Proposed 3 year contract
2026 cost increase due to debt service payment
for replacement of primary engine at a cost
estimate of $700,000-$800,000 in 2025
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FIRE DEPARTMENT SERVICE AGREEMENT
THIS AGREEMENT, made and entered into effective January 1st, 2024, by and between the City of
Scandia, Washington County, Minnesota, 14727 209th Street North, Scandia, MN 55073, a public corporation
(“City”) and May Township, Washington County, Minnesota, 13519 May Avenue North, Stillwater, MN 55082,
a public corporation (“Town”).
WHEREAS, the Town desires to contract with the City for the furnishing of fire service to that part of
the Town described on the Service Area Map (Exhibit A); and
WHEREAS, the City agrees to furnish such services on the terms and conditions hereinafter set forth.
NOW THEREFORE, in consideration of the mutual promises contained herein, it is mutually agreed
between the City and the Town as follows;
1. The City shall furnish the services of its fire department to the Town in that part of its area
shown in the Service Area Map (Exhibit A)
2. The City Fire Department will respond to calls for service to the described area in the Town with
apparatus, equipment and personnel of the fire department responding to any such call and will render all
assistance possible in the saving of lives and property, within the limits of personal sa fety of the personnel.
The parties understand the fire department officer in charge of the particular scene shall
exercise judgment to determine, in consideration of all the established policies, guidelines, procedures, and
practices, how best to allocate the available resources of the fire department under the circumstances of a
given situation.
3. Failure to respond to a call because of adverse weather conditions, unavailability of equipment
or personnel or for any other reason beyond the control of the fire department shall not be considered to be a
breach of this agreement. If the fire department is unable to respond it will notify the “911” Center and the
Marine on St. Croix and Stillwater Fire Departments of its inability to respond.
The parties understand and agree that the city will endeavor to provide the services indicated
above to the best of its ability given the circumstances, but the City makes no guarantees that the services it
actually provides in a given situation will meet any particular criteria or standard
4. The term of this contract shall be January 1st,2024 to December 31st, 2026. If this contract is not
replaced by a new contract by December 31 st, 2026, this contract shall continue in force month to month at
the then current yearly rate plus 5% prorated to a monthly payment basis until such time as a replacement
contract is executed or until either party terminates in writing. Either party may terminate this contract during
the extended period at any time with or without cause by providing 30 days written notice to te other party of
its intent to terminate.
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5. The town shall pay to the City for the fire department services rendered to it by the City the
sum of $35,816.00 on or before April 15th, 2024; the sum of $36,443.00 on or before April 15th, 2025; and the
sum of $46,007.00 on or before April 15th, 2026.
In the event of the termination of this agreement prior to the completion of the full term
described herein, a pro-rata adjustment of the annual fee shall be made and paid to the appropriate party.
6. Any amounts recovered for fire calls under this contract from insurance in effect on the
premises involved with the fire shall be property of the Town.
7. The City, its officers, agents and employees shall not be liable for any intentional or negligent
act of the Town or any officer, agent or employee of the Town and the Town agrees to hold the City, its
officers, agents and employees harmless from any intentional or negligent act of the Town or any officer,
agent or employee of the Town and the town agrees to defend the City, its officers, agents or employees from
any claim for damages resulting from a negligent or intentional act of the Town or any officer, agent or
employee thereof.
8. The Town, its officers, agents and employees shall not be liable for any intentional or negligent
act of the City or any officer, agent or employee of the City and the City agrees to hold the Town, its officers,
agents and employees harmless from any intentional or negligent act of the City or any officer, agent or
employee of the city and the city agrees to defend the Town, its officers, agents or employees from any claims
resulting from a negligent or intentional act of the City or any officer, agent or employee thereof.
9. No Waiver. Nothing herein shall be construed to waive or limit any immunity from, or limitation
on, liability to either party, whether set forth in Minnesota Statutes Chapter 466 or otherwise.
10. Subcontracting and Assignment. The City shall not subcontract or assign any portion of their
contract to another without prior written permission from the Town. Services provided to the Town pursuant
to a mutual aid agreement the City has, or may enter into, with another entity does not cons titute a
subcontract or assignment requiring prior approval of the Town so long as the City remains primarily
responsible for providing fire services to the Town’s Service Territory.
11. Service Contract. This is a service contract. The parties do not intend t o undertake or create,
and nothing herein shall be construed as creating, a joint powers agreement, joint venture, or joint enterprise
between the parties.
12. Minnesota Law Governs. This contract shall be governed by and construed in accordance with
the internal laws of the State of Minnesota. All proceedings related to this contract shall be venued in the
State of Minnesota.
13. Severability. The provisions of this contract shall be deemed severable. If any part of this
contract is rendered void, invalid, or otherwise unenforceable, such rendering shall not affect the validity and
enforceability of the remainder of this contract.
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14. It is understood that this agreement contains the entire agreement between the parties and
that any statement, promise or inducements made by any party hereto, or officer, agent, or employee of
either party which is not contained in this agreement shall not be valid and binding; and this agreement may
not be enlarged, modified or altered except in writing signed by the parties hereto. It is expressly understood
between the parties and this understanding shall be considered in interpreting the provisions of this
agreement, that upon notice given by any party hereto, later negotiations may be undertaken for the purpose
of revising, adding to or striking any provision of this agreement which appears unworkable or insufficient to
perfect, maintain and insure the purpose of this agreement. Any change of the original provisions of this
agreement shall be written, signed by both parties and attached to this agreement as provided above and any
later revision, addition or deletion shall only apply to the provisions revised, added or deleted and the
remainder of this agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this agreement to be executed by its appropriate officers.
CITY OF SCANDIA
Christine Maefsky, Mayor
ATTEST:
Kyle Morell, City Administrator
MAY TOWNSHIP
John Pazlar, Chairman
ATTEST:
Bobbi Hummel, Clerk
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Exhibit A
(See Attached)
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