4.a 3 Discussion on Fire Services Agreement with May Township
Staff Report
Date of Meeting: November 1, 2017
To: City Council
From: Neil Soltis, Administrator
Re: Fire Service Contract with May Township
Background:
The City provides Fire and EMS services to a portion of May Township. A map of the service area follows
this report. The current 3-year agreement expires on December 31, 2017. The charge has previously
been a negotiated amount. The May Town Board has requested that the charge be based on a model
contract from the League of MN cities and the Township Association that uses a formula to determine the
charge. The proposed formula uses 3 factors:
1. % of fire service calls
2. % of market value of all taxable and non-taxable structures
3. % of population
Of these factors the % of fire calls is readily available. Our Assessor cannot determine a source to
determine the market value of structure for both Scandia and the portion of the Town served by the Fire
Department. I am working with the County to identify a source of this information. The population factor
could be estimated determined by using the Met Council estimates of population and households and
then determining the number of households within the May Twp. Service area.
Issue:
Should the City continue to provide fire services to May Township?
What basis should be used for determining the charge?
Should the contract be based on the current service agreement or should the language in the model
contract be utilized as amended for the change in allocation formula?
Proposal Details:
If the Fire Service Agreement is to be continued, it would be helpful to establish a formula for the charge
that would be adjusted annually based on specific data sources . The use of a fixed component
(population / households / market value) provides stability to the rate while the number of calls shifts the
burden based on demand.
I believe the number of runs and estimate of households based on the Met Council estimates are factors
that are available and provide a reasonable balance between the fixed cost for operating a Fire
Department and the demand for services. Utilizing runs as a factor allows the allocation to reflect the
demand for services from non-residents such as visitors to the Big Marine Park Reserve, the Disabled
Veterans Rest Camp, Camp Lakamaga, and the lakes and rivers in the communities. In calculating the
number of runs the number of mutual aid runs or calls to provide services outside of the service area
should be excluded and treated more as a fixed cost of maintaining a Fire Department.
A draft of a revised Fire Services Agreement using the 2 factors reference above is provided for review.
Fiscal Impact:
The number of households as of 2016 in the Town still needs to be verified. Using information when the
previous agreement was being negotiated, the 2014-2016 run data, and the proposed budget, the 2018
cost to the Town would be $34,873, which is a 1.93% increase over the 2017 billing.
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FIRE DEPARTMENT SERVICE AGREEMENT
THIS AGREEMENT, made and entered into effective January 1, 2015 8, 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 limit s of
personal safety 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 situati on will meet any particular criteria
or standard.
4. The term of this contract shall be January 1, 20158 to December 31, 201720. If
this contract is not replaced by a new contract by December 31, 201720, 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
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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 the other party of its intent to
terminate.
5. The Town shall pay to the City for the fire department services rendered to it by
the City the sum of $32,248.00 on or before April 15, 2015; the sum of $33,216.00 on or before
April 15, 2016; and the sum of $34,212.00 on or before April 15, 2017.
Payment. Town agrees to pay City annually during the term of this contract the Payment
Amount determined annually according to the following formula:
Number of fire service calls to Town averaged over last three years - % of total calls
within the service area of the City and Town.
Population within the service area as determined by the most current state
demographer’s estimate available at the time the payment Amount is determined - %
Total: _________% ÷ 2 = ________% of Town Cost Allocation
The % Town Cost Allocation shall be multiplied by the sum total of following factors:
Fire Department Annual Operational Budget for the upcoming year as adjusted for the
Fire Retirement contribution from the State
Annual depreciation on capital assets
Administrative charge of 1% of the Fire Department budget
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 the 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 claim for damages 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 available to either party, whether set forth in Minnesota Statutes Chapter
466 or otherwise.
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10. Subcontracting and Assignment. The City shall not subcontract or assign any
portion of this 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 constitute 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 to 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.
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 pro visions 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.
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IN WITNESS WHEREOF, the parties have caused this agreement to be executed by its
appropriate officers.
CITY OF SCANDIA MAY TOWNSHIP
ATTEST: ATTEST:
Deleted: Randall Simonson, Mayor
Deleted: William Voedisch, Chairman¶
Deleted: Kristina Handt, Clerk/Administrator Linda
L. Klein, Clerk¶
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Exhibit A
(See Attached)
FIRE CONTRACT CALCULATION-2018
EXHIBIT B - COST ALLOCATION
ESTIMATED
COMBINED AVERAGES FIRE RUNS HOUSEHOLDS TOTAL AVERAGE
Scandia 88.54% 89.91% 178.45% 89.23%
May Township 11.46% 10.09% 21.55% 10.77%
Total 100.00%100.00%200.00%100.00%
BUDGET
COST OF FIRE PROTECTION 2018 NOTES
Operating Costs $236,500
Depreciation $84,461
Administration (1% of Operations) $2,698
Total $323,659
2018 2017 $ Increase
Proposed Actual (Decrease)
COST ALLOCATION (1)Contract Amount Contract Amount (2)
Scandia $288,786
May Township $34,873 $34,212 $661
Total $323,659 $34,212 $661
Year Contract Price % Increase
2006 $20,890
2007 $21,516 3.00%
2008 $22,162 3.00%
2009 $29,266 32.05%
2010 $30,876 5.50%
2011 $32,574 5.50%
2012 $33,551 3.00%
2013 $34,558 3.00%
2014 $35,594 3.00%
2015 $32,248 -9.40%
2016 $33,216 3.00%
2017 $34,212 3.00%
2018 $34,873 1.93%
GRANT STILLWATER TOWNSHIP
MARINE ONST. CROIX
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Arcola Tr NOzark Tr N1 2 6 t h S t N
Oldfield Ave N
154th St N
15 0t h St N
180th St N
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130th St N127th St N
142nd St N Sheffield La N124th St N
1 2 1 s t S t N
Queens Way N
15 2nd S t N
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176th St N
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Panama Ave N140th St N
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May Ave NMay Ave NFIRE RESPONSE SERVICE AREAS
Town of May
This map is for planning purposes only. Source: Washington County, MN DNR, NACApril 24, 2014.
0 1 20.5 Miles
Homes/Principal Structures
Parcels
Fire Service Area
Water
Homes/Principal Structures per Area:Scandia FD = 153 Marine FD = 223 Stillwater FD = 803
MARINE FD
STILLWATER FD
SCANDIA FD
MAP 1
This material is provided as general information and is not a substitute for legal advice.
Consult your attorney for advice concerning specific situations.
RISK MANAGEMENT INFORMATION
MODEL FIRE CONTRACT BETWEEN CITY AND TOWN
Fire protection is the most commonly contracted for service between cities and towns. In most
cases, these contracts have long and unique histories resulting in widely varying contract
provisions. Many have long terms and are often renewed without giving much attention to their
content beyond the provisions dealing with the cost of the service. The result can be contracts with
outdated provisions that do not adequately protect the interests of either the city or town. In other
cases, the parties are keenly aware of the contract provisions and disagree over its wording. To
assist cities and towns in these types of situations, the Minnesota Association of Townships
worked with the League of Minnesota Cities to develop this sample fire contract.
This sample has many goals: encouraging the use of written contracts; providing language that
reflects current approaches to issues such as liability and indemnification; addressing issues that
may have been overlooked in local contracts; offering language that attempts to protect the
interests of both cities and towns; and ultimately providing a platform from which cities and towns
can build their own contract to fit their particular circumstances and interests. Keep in mind this
sample does not, and is not intended to, address all the unique circumstances that may exist in a
particular situation.
Many of the recommendations contained in the “Guidelines for Minnesota Fire Protection
Contracts” (rev. November 2001) written by the Fire/EMS/Safety Center were incorporated into
this sample. However, the formula suggested in the document was simplified for this sample. For
example, the sample uses the number of calls to a jurisdiction to reflect the level of department use
instead of attempting to develop a method for determining the percentage of use of the fire
department for each call as suggested in the Safety Center’s document. While some calls certainly
involve more fire department resources than others, it was felt the level of use is balanced out over
the three year average used in the formula. Not only is this approach simpler, it reduces the on-
going administrative burdens on the fire department to track the more detailed information needed
to determine the percentage of use per call.
Public officials with questions regarding this sample are encouraged to contact their respective
organizations and, as always, have the contract reviewed by your local attorney before adopting it.
Chris Smith 02/08
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SAMPLE FIRE CONTRACT
This contract is made and entered into this ___________ day of ___________, 20___ (“Anniversary Date”)
between the City of _____________________ , ________________ County, Minnesota, [address], a public
corporation (“City”), and ___________________ Township, ________________ County, Minnesota,
[address], a public corporation (“Town”).
In consideration of the mutual promises and agreements hereinafter set forth the parties do hereby agree as
follows:
1. Fire Service. Town agrees to purchase from City, and City agrees to provide Town, the following fire
services:
(Check all those that apply)
□ Structural Firefighting □ Emergency Medical Services
□External Structural Firefighting □ Fire Scenes
□ Interior Structural Firefighting □ Rescue Scenes
□ Grass/Forest Firefighting □ General Medicals
□ General Firefighting Level of Emergency Medical Response
□ Vehicles & Equipment □ First Responder
□ Carbon Monoxide Calls □ Emergency Medical Technician
□ Other Non-Structural Firefighting □ Paramedic
□ Rescue □ Fire Code Enforcement
□ Vehicle & Equipment Extrication □ Hazardous Materials Response
□ General Search & Rescue Level of Hazardous Materials Response
□ Confined Space Rescue □ First Responder, Awareness
□ High Level Rescue □ First Responder, Operations
□ Water Rescue □ HAZMAT Technician
□ Diving/Recovery □ HAZMAT Specialist
□ Disaster Response
□ ________________________________
The services indicated above are further explained, or limited, as follows:
a. Allocation of Resources. 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. Failure to provide fire services
because of poor weather conditions or other conditions beyond the control of City shall not be
deemed a breach of this contract.
b. No Guarantee. The parties understand and agree City will endeavor to provide the services
indicated above to the best of its ability given the circumstances, but City makes no guarantees that
the services it actually provides in a given situation will meet any particular criteria or standard.
2. Payment. Town agrees to pay City annually during the term of this contract the Payment Amount
determined annually according to the following formula:
The following percentages relate specifically to Town in relation to the entire territory to which City
provides fire services as the primary service provider (e.g., the entire City, Town’s Service Territory,
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and all or any portions of other cities, towns, or unorganized territories included in the City’s primary
service area).
Number of fire service calls to Town
averaged over last three years: _________%
Market value of all taxable
and non-taxable structures: _________%
Population: _________%
Total: _________% ÷ 3 = ________% of Town Cost Allocation
Total Fire Department Annual Operational Budget
for the upcoming year: $_______________
$______________ x ___________% = $_________________
Operational Budget Town Cost Allocation Payment Amount
For the purposes of this formula, population shall be determined by the most current state demographer’s
estimate available at the time the Payment Amount is determined.
City shall provide Town a written claim for the Payment Amount by the following date, or for each partial
payment of the Payment Amount according to the following schedule:
a. Annual Meeting of Parties. Town and City shall hold at lease one joint meeting annually during
term of this contract at least 60 days before its anniversary date to calculate the Payment Amount
for the upcoming year, discuss Town’s satisfaction with the service provided during the year, and to
discuss such other issues as either party deems relevant to this contract. The meeting shall be held
separately from any regular Town or City meeting and shall be attended by at least a quorum of
each party’s governing body.
3. Emergency Service Charge. Town, in its sole discretion, may exercise its authority to impose and
collect an emergency service charge on those receiving emergency services, including fire services,
within Town. City shall have no right to, or interest in, any service fees collected by Town. If Town
imposes an emergency service charge it shall provide City a list of the specific types of information it
determines it needs collected in order to successfully impose and collect the charge. City shall make a
good faith effort to collect the requested information for each service call to the Service Territory and
promptly provide Town with the information it collected.
4. Service Territory. City shall provide fire services as indicated in this contract to the area in Town
described below and/or as indicated on a map which is attached hereto and made part of this contract.
The identified area shall constitute the Town’s Service Territory for the purposes of this contract.
[Describe the Service Territory or attach map outlining the Service Territory]
5. Term. This contract shall commence on the effective date indicated above and shall expire ____ years
from that date unless terminated earlier as provided herein.
6. Ownership. City owns the buildings and equipment associated with the Fire Department and the
amounts paid by Town do not give rise to any ownership interest in, or responsibility toward, those
items unless a specific ownership interest is indicated below: [describe if Town currently has any interest in the
buildings or equipment or will acquire some interest during the term of the contract]
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7. City’s Responsibilities. In addition to any other obligations described herein, City shall:
a. Authorize and direct the City fire department to provide the fire services described herein to
Town’s Service Territory;
b. Develop a detailed annual operational budget for the fire department for each year during the term
of this contract by the Anniversary Date and present it to Town along with sufficient information to
explain the items included in the budget figures;
c. Upon Town’s request, provide Town access to financial and cost data related to the fire department
for five years prior to the current service year;
d. Disclose to Town any proposed action City or the fire department intends to take that can
reasonably be expected to effect the Insurance Services Office Fire Protection Grade in the Service
Territory or City’s ability to provide the fire services indicated above; and
e. Promptly disclose to Town any information City can reasonably anticipate will directly affect its
ability to perform its obligations under this contract.
8. Town’s Responsibilities. In addition to any other obligations described herein, Town shall:
a. Promptly pay City the Payment Amount as indicated above for the year of service, or a prorated
share of the Payment Amount for the length of service actually provided if the contract is
terminated early;
b. Present a budget and levy proposal to the town electors at each annual town meeting during the
term of this contract seeking authority to levy funds as needed to pay the “Payment Amount”; and
c. Promptly disclose to City any information Town can reasonably anticipate will directly affect its
ability to perform its obligations under this contract.
It is understood and agreed Town shall have no responsibility whatsoever toward the fighters or other
emergency personnel including any employment related issues such as training, supervision,
performance reviews, discipline, compensation, benefits, insurance coverages, compliance with any
employment related federal, state, and local laws and rules such as OSHA, ERISA, RLSA, FMLA, or
any other employment related issues. It is further agreed Town has no responsibility, beyond paying the
agreed upon Payment Amount, for acquiring, operating, maintaining, housing, or replacing equipment
as needed to provide the fire services described herein.
9. Insurance Requirements. City shall maintain general liability insurance for its services and shall
include Town as an additional insured for the term of this contract and any extensions thereof. City
shall also maintain inland marine, automobile, and property insurance coverages. City shall provide
Town proof of such insurance coverages and the additional insured endorsement naming the Town
annually by the anniversary date of this contract.
10. Indemnification. City agrees to defend and indemnify Town against any claims brought or actions
filed against Town or any officer, employee, or volunteer of Town for injury to, death of, or damage to
the property of any third person or persons, arising from City’s performance under this contract for
services. Under no circumstances, however, shall City be required to pay on behalf of itself and Town,
any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466
applicable to any one party. The limits of liability for Town and City may not be added together to
determine the maximum amount of liability for City. The intent of this subdivision is to impose on City
a limited duty to defend and indemnify Town for claims arising out of the performance of this contract
subject to the limits of liability under Minnesota Statutes Chapter 466. The purpose of creating this duty
to defend and indemnify is to simplify the defense of claims by eliminating conflicts between the
parties and to permit liability claims against both parties from a single occurrence to be defended by a
single attorney.
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11. No Waiver. Nothing herein shall be construed to waive or limit any immunity from, or limitation on,
liability available to either party, whether set forth in Minnesota Statutes Chapter 466 or otherwise.
12. Modification. This writing contains the entire agreement between the parties and no alterations,
variations, modifications, or waivers of the provisions of this agreement are valid unless reduced to
writing, signed by both City and Town, and attached hereto.
13. Subcontracting & Assignment. City shall not subcontract or assign any portion of this contract to
another without prior written permission from Town. Services provided to Town pursuant to a mutual
aid agreement City has, or may enter into, with another entity does not constitute a subcontract or
assignment requiring prior approval of Town so long as City remains primarily responsible for
providing fire services to Town’s Service Territory.
14. Termination. This contract may be terminated at anytime during its term by mutual agreement of the
parties. Either party may terminate this agreement by personally serving a 120 day written notice of
termination on the other party. This agreement shall terminate 120 days from the date of personal
service of the written termination notice unless the party serving the notice withdraws the notice in
writing before it is effective. If Town fails to pay for the service according to the schedule established
herein, City may terminate this agreement 60 days from the date of personal service of written
termination notice. Notice to City shall be served on the City administrator, or City clerk if there is no
City administrator, and notice to Town shall be served on the Town clerk.
15. Service Contract. This is a service contract. The parties do not intend to undertake or create, and
nothing herein shall be construed as creating, a joint powers agreement, joint venture, or joint enterprise
between the parties.
16. 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.
17. 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.
IN WITNESS WHEREOF, the parties have executed this contract effective on the date indicated above.
City Town
________________________________ City _______________________________ Township
By its Mayor: By its Chairperson:
___________________________________ __________________________________________
Signature Signature
___________________________________ __________________________________________
Print Name Print Name
___________________________________ __________________________________________
Date Date
___________________________________ __________________________________________
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Clerk Clerk