HomeMy WebLinkAbout6.j. Approve the 2012 Fire Services Contract with the University of Minnesota ROS�� v1CJl.�NT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: June 19, 2012
AGENDA ITEM: Approve the 2012 Fire Services Contract AGENDA SECTION:
with the University of Minnesota Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO. �,� .
ATTACHMENT: Revised Contract APPROVED BY:
RECOMMENDED ACTION: Motion to approve the 2012 Fire Services Contract with the
University of Minnesota.
ISSUE
The Finance Department is asking that the Council approve a revised fire services contract bet�vccn the
City of Rosemount and the Regents of the University of Minnesota.
BACKGROUND
There has been a long-standing contract in place bet�veen the City of Rosemount and the Uni�-ersin- of
Minnesota for oux Fire Dcpartment to provide fire suppression ser�rices to the U of M.
Because it had been many years since the contract language had been updated, staff initiated a discussion
with our City Attorney to begin Yeview of the existing contract In doing so, the Attorney advised that the
entire contract be revised, as the language needed to be clarified and brought up-to-date. The revisions
began with the 2011 contract, but the Universit��requested additional changes to the way the annual
service fee was calculated before approval. The Regents asked that the base annual service charge be
adjusted for those acres in the service area that are leascd and pay either ad valorem real estate or personal
property taxes. The previous contract stated that per-vehicle call charges were not billed if a parcel paid
taxes to the County, so we have agreed to adjust the base annual fee to reflect this same principle. "I'he
per-response call billing is handled the same as in the previous contract, but the per-vehicle charges billed
were updated to reflect more current costs for operation and maintenance.
Our City Attorney has revised the contract and the Attorney for the Regents of the Universitt� of
Minnesota has reviewed and approved the final revised contract at this time.
RECOMMENDATION
Recommend the above motion and authorize the necessary signatures.
FIRE CONTRACT
This contract is effective as of the 1 St day of January, 2012 ("Anniversary Date") between the City of
Rosemount, Dakota County, Minnesota, a public corporation ("City"), and Regents of the University of
Minnesota, a Minnesota constitutional corporation ("University").
In consideration of the mutual promises and agreements hereinafter set forth the parties do hereby agree as
follows:
1. Fire Service. University agrees to purchase from City, and City agrees to provide University, the following
fire services:
(Check all those that apply)
❑x Structural Firefighting ❑X Emergency Medical Services
DExternal Structural Firefighting ❑X Fire Scenes
❑x Interior Structural Firefighting 0 Rescue Scenes
❑X Grass/Forest Firefighting ❑X General Medicals
❑X General Firefighting Level of Emergency Medical Response
❑X Vehicles& Equipment � First Responder
0 Carbon Monoxide Calls ❑ Emergency Medical Technician
❑x Other Non-Structural Firefighting ❑ Paramedic
� Rescue ❑ Fire Code Enforcement
� Vehicle & Equipment Extrication ❑X Hazardous Materials Response
❑X General Search & Rescue Level of Hazardous Materials Response
0 Confined Space Rescue* ❑X First Responder, Awareness
❑X High Level Rescue* ❑x First Responder, Operations
❑ Water Rescue ❑X HAZMAT Technician*
❑ Diving/Recovery � HAZMAT Specialist*
� Disaster Response
❑
The services indicated above are further explained, or limited, as follows:
Services marked with * will be provided, as available, through the Dakota County Special Operations
Team.
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 wil( endeavor to provide the services
indicated above to the best of its ability given the circumstances, but City �nakes no guarantees that
the services it actually provides in a given situation will meet any particular criteria or standard.
2. Payment. The University will pay to City as compensation for all fire services furnished pursuant to this
agreement:
402086 CLL RS215-5 1
a. Base Annual Fee. A `Base Annual Fee" shall be used in the calculation of the amount of the
Annual Fee payable by the University to the City. Not later than November 30 of each year during
which this Agreement is in effect, the City shall notify the University of the Base Annual Fee
applicable to the following calendar year. The Base Annual Fee will be adjusted in each year
commencing January 1, 2013 in accordance with the annual change in the Consumer Price Index,
all urban consumers, Midwest urban area, as of the September 30`�' of the preceding year.
b. The Annual Fee actually payable by the University in 2013 and any subsequent calendar year shall
be calculated by multiplying the Base Annual Fee for such year (determined as provided in
paragraph (a), above) by a fraction, the numerator of which is the number of acres within the
Service Territory (as defined below)that are not subject to either ad valorem real estate taxes under
Minnesota Statutes Section 272.01 or personal property taxes under Minnesota Statutes Sections
272.01 and 273.19 as of October 31 of the preceding year, and the denominator of which is 6,852
acres, which the parties agree is the number of acres in the Service Territory that are not subject to
either ad valorem real estate taxes or personal property taxes for the pay-2011 tax year. The
Annual Fee shall be payable within 30 days after the University is billed by the City. The parties
shall cooperate with each other in making the determination as to the number of acres in the Service
Territory that are subject to real or personal property taxes. For this purpose, the University shall
provide to the City a list of all leases within the Service Territory, and the number of acres covered
by each lease, no later than November 30 of each year during the Term of this Agreement. The
intention of the parties is that the Annual Fee payable by the University shall be limited to the
amount associated with University property within the Service Territory that is exempt from real
estate and personal property taxes.
c. In addition to the annual fee, University will pay City for actual fire service furnished, unless
provided to a building or land the tenant of which is paying personal property taxes to Dakota
County or provided within the right-of-way of any public roadway. Such additional compensation
shall be in accordance with the charges specified in Attachment One. City may change the hourly
charges effective January 1 of any calendar year during the term of this contract by sending an
updated Attachment One to University at least 150 days before the effective date of the change in
rates as noted in the updated Attachment One. The first such change may not be effective before
January 1, 2013. If University notifies City of cancellation in accordance with paragraph 14 before
the specified effective date of the change in hourly charges, the changes shall not go into effect
unless University withdraws the notice of termination, in which case the amended hourly rates will
be in effect retroactive to the stated effective date of the amended rates.
d. The Annual Fee payable by the University to the City for 2012 shall be $5,000. This amount takes
into account the number of acres within the Service Territory for which real property or personal
property taxes are being paid. For the purpose of determining the Annual Fee for 2013, the Base
Annual Fee for 2012 shall be deemed to be $5,000.
3. Emergency Service Charge. University, in its sole discretion, may collect an emergency service charge on
those receiving emergency services, including fire services, on University property. City shall have no right
to, ar interest in, any service fees collected by University. If University 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 (as defined below) and promptly provide
University with the information it collected.
4. Service Territory. City shall provide fire services as indicated in this contract to the area described or
depicted on Attachment Two, which is attached hereto and made part of this contract. The identified area
402086 CLL RS215-5 2
shall constitute the University's Service Territory for the purposes of this contract, which the parties agree
covers 7686 total acres. The parties shall agree upon any changes to the Service Territory on or before
December 1 for each subsequent year during the term of this contract.
5. Term. This contract shalt commence on the effective date indicated above and shall continue from year to
year until terminated in accordance with paragraph 14.
6. Ownership. City owns the buildings and equipment associated with the Fire Department and the amounts
paid by University do not give rise to any ownership interest in, or responsibility toward, those items.
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
University's Service Territory;
b. Disclose to University any proposed action City or the fire department intends to take that can
reasonably be expected to affect the Insurance Services Office Fire Protection Grade in the Service
Territory or City's ability to provide the fire services indicated above; and
c. Promptly disclose to University any information City can reasonably anticipate will directly affect
its ability to perform its obligations u��der this contract.
d. In the event of termination, promptly return a prorated amount of the annual fee provided for under
paragraph 2, based on the effective date of termination.
8. University's Responsibilities. In addition to any other ob(igations described herein, University shall:
a. Promptly pay City the Payment Amount as indicated above for the year of service.
b. Promptly disclose to City any information University can reasonably anticipate will directly affect
its ability to perform its obligations under this contract. Such information will include a listing of
all tenants that store or handle explosive or hazardous materials. Such listing shall contain
information including owner, address of owner, phone number and name of contact person,
description of explosive or hazardoLis materials stored at the site and the location of the site.
University shal( update such listing at least once every six months. University shal( also keep City
apprised of University's own fire fighting equipment, procedures and capabilities.
It is understood and agreed University shall have no responsibility whatsoever toward the 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 University 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
University as an additional insured for the term of tllis contract and any extensions thereof. City shall also
maintain inland marine, automobile, and property insurance coverages. In addition, City shall maintain
workers' compensation insurance for its firefighters. City shall provide University proof of such insurance
coverages and the additional insured endorsement naming the University annually by the anniversary date of
this contract.
10. Indemnification. City shall not be liable to University for loss or damage of any kind whatsoever resulting
from any failure or delay in furnishing firefighters or fire equipment, or from any failure to prevent, control
or extinguish any fire, whether loss or damage is caused by the negligence of the officers, agents or
employees of City or its Fire Department, or otherwise. University agrees to indemnify and hold harmless
402086 CLL RS215-5 3
City, its officers, agents, employees and Fire Department members from any and all liability, claims,
damages or expenses, including but not limited to reasonable attorney's fees, resulting from any act, error or
omission of University in connection with this Agreement.
I 1. 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.
]2. 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 University, and attached hereto.
13. Subcontracting& Assignment. City shall not subcontract or assign any portion of this contract to another
without prior written permission from University. Services provided to University, 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 University so long as City remains primarily responsible for providing fire
services to University's Service Territory.
14. Termination. This contract may be terminated at any time during its term by mutual agreement of the
parties. Either party may terminate this agreement by personaily 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 University 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 Clerk and notice to University shall be served on the Regents of the
University of Minnesota, c/o Real Estate Office, Suite 424, Donhowe Building, 319 15`�'Avenue SE,
Minneapolis, MN 55455 with a copy to University of Minnesota, Office of the General Counsel,Attn:
Transactional Law Services Group, 360 McNamara Alumni Center, 200 Oak Street SE, Minneapolis, MN
55455-2006.
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 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.
�Signatures follow.]
402086 CLL RS215-5 4
IN WITNESS WHEREOF,the parties have executed this contract effective on the date indicated above.
IN PRESENCE OF: FOR THE CITY OF ROSEMOUNT
Notary Mayor
City Clerk
RECOMMENDED: REGENTS OF THE UNIVERS[TY
OF MINNESOTA
Susan Carlson Weinberg Treasurer and Senior Vice President
Director of Real Estate Finance
APPROVED AS TO FORM AND
EXECUT[ON:
City Attorney
402086 CLL RS215-5 5
ATTACHMENT ONE
Annual Fee and Equipment Char�es
I. Base Annual Fee: $5,000 for calendar year 2012 to be adjusted annually in accordance with
paragraph 2 of the Fire Contract.
II. Equipment Charges Effective January 1, 2012:
Unit Rate or Char�e
Engine $300 per hour per unit
Ladder $400 per hour per unit
Utility $100 per hour per unit
Rescue $150 per hour per unit
Tender $250 per hour per unit
Brush $100 per hour per unit
Command Vehicle $ 50 per hour per unit
For the purpose of calculating the hourly charges,the following method will be used:
60 minutes or less = 1.0 hour
61 minutes to 90 minutes = 1.5 hours
91 minutes to 120 minutes = 2.0 hours
Beyond the first hour, minimum additional charges will be accrued in half hour
increments.
Canceled Call-out Charge $]00.00
IIL City Equipment and Staff Rates for other departments(i.e. Public Works) if assistance is
required by Fire Department as determined by the Fire Department in its reasonable discretion:
E�uipment
Per hour charge (does not include operator). Equipment charges, including licensed vehicles
and mobile equipment, will be calculated as follows: The actual cost of the equipment
(including annual depreciation, annual insurance premiums, annual license t�es if applicable,
annual operating and maintenance expenses, and an annual carrying fee)will be divided by the
estimated hours the equipment is expected to be used annually.
Staff per-hour char�
Staff charges for each employee billed will be calculated using the actual hourly rate plus all
payroll taxes and benefit charges for such hours as are determined by the Fire Department.
402086 CLL RS215-5
ATTACHMENT TWO
Service Territory
402086 CLL R5215-5
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