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9.j Discussion on Fire Services agreement with May Township Staff Report Date of Meeting: April 17, 2018 To: City Council From: Neil Soltis, Administrator Re: Fire Services Agreement with May Township Background: At the January 3rd Council work session May Township Board Chair Bill Voedisch discussed the continuation of the agreement with May Township to provide fire protection services. The current agreement expired on December 31st, but provisions in the agreement provide for continued coverage until a new agreement is in place. Voedisch explained that they want to base the annual charge on the formula contained in the League and Township Association model fire services agreement. May Twp. has used this formula in their agreement with Stillwater for fire services. At the April 4th work session the Council approved using the 3-part formula from the model fire services agreement in drafting a new agreement for fire protection services with May Township. The draft that follows this report reflects the 3-part formula and provides clarity as to the source(s) of the data to be used in determining the percentages. The agreement has been reviewed by City Attorney Andy Pratt. Issue: Should the Council approve the form of the agreement? Proposal Details: If the form of the agreement is approved. Staff will work the May Township staff to determine the percentages to be used in the agreement. The final agreement would be presented to the Council and May Township Board for approval at a later date. Fiscal Impact: The fiscal impact of the agreement is not know at this time. Based on estimates, there will not be any significant changes from the amount paid to the City under the previous agreement. Options: 1. Approve the form of the agreement 2. Modify the agreement 3. Defer or take no action on the agreement 4. Propose extending the previous agreement with an inflation adjustment Recommendation: Option 1 League of Minnesota Cities Model Contract: 12/15/2017 Page 1 City of Scandia, Minnesota Town of May, Minnesota Fire Service Contract This Fire Service Contract (the “Agreement”) is made and entered into this _______ day of _______, 2018 (the “Anniversary Date”) between the City of Scandia, Washington County, Minnesota, 14727 209th St. N, Scandia, MN 55073, a municipal corporation and political subdivision (the “City”), and the Town of May, Washington County, Minnesota, 13519 May Ave. N, Stillwater, MN 55082, a municipal corporation and political subdivision (the “Town”). Collectively, the City and the Town are referred to herein as the “Parties.” RECITALS A. City maintains a volunteer fire department with medical rescue service equipment and fire-fighting trucks equipped with hose and water tanks suitable for use in the protection of property against loss by fire in areas inside and outside of the corporate limits of the City. The Town does not maintain medical rescue service equipment or fire-fighting equipment of its own, and the Town desires to purchase the services of the City on an ongoing basis for fire and medical rescue services within a portion of the Town’s corporate limits. B. The purpose of this Agreement is to memorialize the cooperative obligations and responsibilities of the Parties in order to provide for a steady and consistent revenue stream to support the ongoing rescue and fire-fighting obligations of the Scandia Fire Department (the “Fire Department”). C. The Parties hereto acknowledge and agree that the Town receives fire services from one or more other fire departments pursuant to one or more other written agreements. The Fire Department has historically provided regular coverage to a discrete area of the Town, which coverage will continue pursuant to this Agreement. Such discrete area of the Town covered by the Fire Department as the regular service provider is referred to herein as the “Town Service Area.” The entire area regularly served by the Fire Department, including within the corporate limits of the City, is referred to herein as the “City Service Area.” In consideration of the mutual promises and agreements hereinafter set forth the Parties do hereby agree as follows: 1. Fire Services. Town agrees to purchase from City, and City agrees to provide Town, the following fire-related services (the “Services”): League of Minnesota Cities Model Contract: 12/15/2017 Page 2 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 √ General Search & Rescue √ Hazardous Materials Response √ Confined Space Rescue √ High Level Rescue Level of Hazardous Materials Response √ Water Rescue □ First Responder, Awareness √ Diving/Recovery √ First Responder, Operations □ HAZMAT Technician √ Disaster Response □ HAZMAT Specialist √ _Active Shooter 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 independent and unfettered judgment to determine, in consideration of all the established policies, guidelines, procedures, and practices of the Fire Department, how best to allocate the available resources of the Fire Department under the circumstances of a given situation. Failure to provide the Services because of poor weather conditions or other conditions beyond the control of City shall not be deemed a breach of this Agreement. b. No Guarantee. The Parties understand and agree City will endeavor to reasonably provide the Services indicated above 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. The City and its officers, employees and volunteers shall not be liable to the Town or any other person for failure to furnish assistance under this Agreement or for recalling assistance. 2. Payment. Town agrees to pay City annually during the term of this Agreement the “Town Payment Amount” determined annually according to the following formula: League of Minnesota Cities Model Contract: 12/15/2017 Page 3 The following percentages relate specifically to Town in relation to the entire City Service Area (e.g., the entire City, the Town Service Area, and all or any portions of other cities, towns, or unorganized territories included in the City’s primary City Service Area). Number of fire service calls to the Town Service Area averaged over the last three years in relation to service calls averaged over the last three years in the City Service Area (not including recalled calls and other calls for response outside of the City Service Area): _______% Market value of all taxable and non-taxable structures within the Town Service Area, in relation to the City Service Area, as determined by Washington County using the most recent Washington County property tax records: _______% Households in the Town Service Area, in relation to the City Service Area, as determined by Washington County using the dwelling type information in the most recent Washington County property tax records: _______% Total: _______ % ÷ 3 = _______% of Town Cost Allocation Total Fire Department Annual Operational Budget for the upcoming year: $_______ $_______ x ________% = $_______ Operational Budget Town Cost Allocation Town Payment Amount City shall provide Town a written claim for the Town Payment Amount by the following date, or for each partial payment of the Town Payment Amount according to the following schedule: a. Annual Meeting of Parties. Town and City shall hold at least one joint meeting annually during the term of this Agreement at least 60 days before its Anniversary Date to calculate the Town Cost Allocation and the Town Payment Amount for the upcoming year, discuss Town’s satisfaction with the Services provided during the preceding year, and to discuss such other issues as either Party deems relevant to this Agreement. If the Town Payment Amount is based on a lump sum rather than a formula, the financial terms of this Agreement will be reviewed annually and appropriate cost adjustments made upon mutual agreement of the Parties. The meeting shall be held separately from any regular Town Board or City Council meeting and shall be attended by at least a quorum of each party’s governing body. Any numerical changes to the Town Cost Allocation, the Fire Department Annual Operational Budget, and the Town Payment Amount may be made and agreed to by the Parties without further amendment to this Agreement. 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 League of Minnesota Cities Model Contract: 12/15/2017 Page 4 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 Town Service Area and promptly provide Town with the information it collected. 4. Service Area. City shall provide Services as indicated in this Agreement to the Town Service Area described or as indicated on a map which is attached hereto and made part of this Agreement. The identified area shall constitute the Town’s Service Area for the purposes of this Agreement. 5. Term. This Agreement shall commence on the Anniversary 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 r esponsibility toward, those items unless a specific ownership interest is indicated below: 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 Services described herein to Town Service Area; b. Develop a detailed annual operational budget for the Fire Department for each year during the term of this Agreement before the joint meeting described in Section 2(a) of this Agreement, 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 each 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 Town Service Area or City’s ability to provide the 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 Agreement. 8. Town’s Responsibilities. In addition to any other obligations described herein, Town shall: a. Promptly pay City the Town Payment Amount as indicated above for each year of service, or a prorated share of the Town Payment Amount for the length of service in a given year actually provided if this Agreement is terminated early; b. Present a budget and levy proposal to the Town electors at each annual Town meeting during the term of this Agreement seeking authority to levy funds as needed to pay the Town 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 Agreement. League of Minnesota Cities Model Contract: 12/15/2017 Page 5 It is understood and agreed Town shall have no responsibility whatsoever toward the City firefighters 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 Town Payment Amount, for acquiring, operating, maintaining, housing, or replacing equipment as needed to provide the 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 Agreement and any extensions thereof. The City shall maintain insurance equal to or greater than the maximum liability applicable to municipalities as set forth in Minnesota Statutes, Section 466.04, subd. 1, as amended. 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 Agreement. City shall also maintain workers’ compensation coverage as required by law. 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 Agreement 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, as amended, 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 Agreement subject to the limits of liability under Minnesota Statutes, Chapter 466, as amended. 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. 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, as amended, or otherwise. 12. Good Faith Services Provided. The Fire Department will act in good faith in sending vehicle(s), equipment and personnel to any fire or medical rescue emergency within the Town Service Area, shall use best efforts and practices to provide the Services pursuant to current fire safety protocol and as required under federal and state law and the then-current Minnesota Fire Code, and no liability shall attach to the City by reason of any such fire or medical rescu e emergency or by reason of any negligent act or omission of the driver(s) or any of the personnel sent by City in connection with the work of providing any of the Services. If multiple fires or medical rescue emergencies occur at the same time within the City and Town Service Areas, the Fire Chief or his designee/agent shall have the independent and unfettered discretion to direct the deployment of available vehicle(s), equipment and personnel to a certain location or League of Minnesota Cities Model Contract: 12/15/2017 Page 6 locations. Shall road or weather conditions be, in the independent and unfettered judgment of the Fire Chief or his designee/agent, unfavorable in the furnishing of vehicle(s), equipment and personnel at the time, City is not obligated to respond to said call. City and its officers, employees and volunteers shall not be liable to Town or any other person for any failure to furnish assistance under this Agreement or for recalling assistance as provided herein, should conditions or circumstances warrant such action. 13. 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. 14. Subcontracting & Assignment. City shall not subcontract or assign any portion of this Agreement 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 the Services to the Town Service Area. 15. Termination. This Agreement may be terminated at any time 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 Services according to the schedule established herein, City may terminate th is Agreement 60 days from the date of personal service of a written termination notice. Notice to City shall be served on the City Administrator, or if the City Administrator is unavailable, the Mayor, and notice to Town shall be served on the Town Clerk, or if the Town Clerk is unavailable, the Board Chair. 16. Service Contract. This Agreement 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. 17. Minnesota Law Governs. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in the State of Minnesota. 18. Severability. The provisions of this Agreement shall be deemed severable. If any part of this Agreement is rendered void, invalid, or otherwise unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement. League of Minnesota Cities Model Contract: 12/15/2017 Page 7 IN WITNESS WHEREOF, the Parties have executed this Agreement effective on the date indicated above. City of Scandia, Minnesota Town of May, Minnesota By its Mayor: By its Chairperson: ___________________________________ ______________________________________ Signature Signature ___________________________________ ______________________________________ Print Name Print Name ___________________________________ ______________________________________ Date Date ___________________________________ ______________________________________ City Administrator Clerk ___________________________________ ______________________________________ Print Name Print Name ___________________________________ ______________________________________ Date Date League of Minnesota Cities Model Contract: 12/15/2017 Page 8 EXHIBIT A MAP OF TOWN SERVICE AREA