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HomeMy WebLinkAbout6.c. Fire Service Contract with U of MCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: AUGUST 18, 1992 AGENDA ITEM: FIRE SERVICE CONTRACT AGENDA SECTION: UNIVERSITY OF MINNESOTA NEW BUSINESS PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AGENDA V� M 11 6 C ATTACBN=S : DRAFT CONTRACT, OLD CONTRACT APS OVEP' BY : The City of Rosemount provides fire protection service to the University of Minnesota property in Rosemount and Empire Township. This service is provided under a Fire Protection Contract between the City of Rosemount and the Regents of the University. The City is currently providing service without a contract in place and I have been negotiating with the University over a lengthy period of time for a renewal of that contract. The negotiations were put on hold for some time because of discussions by the City in consideration of purchasing a major portion of the University property in Rosemount. Since that idea has been pretty much been laid to rest we again renewed our discussions. The proposed contract, a copy of which is attached along with a copy of the previous contract differs significantly in two areas. The old contract still referred back to a "base value" used to determine a charge. Then a simple formula was applied to create a contract price. Please reference page 3 of the old contract. This discussion goes back to 1981 when the old University Housing was put on the Tax roles and so less of the University property was "non-taxable". This seems quite irrelevant now and so we have replaced this calculation with a 1991 base and will use a Consumer Price Index to increase this each year. Secondly, since all of the private businesses on the University property now pay taxes we have excluded them from having to pay additional charges when the fire department actually responds to a call to them. The University will still have to pay additional charges, as set out in the contract if a response is warranted to one of their properties. Since the businesses now pay some $17,000 in city taxes, under an agreement we negotiated with the University, we did not feel it was fair to charge these people. I feel this is a good contract and ask your approval of it. RECOMMENDED ACTION: MOTION to approve the Fire Protection Agreement between the University of Minnesota and the City of Rosemount for 1991 through 1993. COUNCIL ACTION: CITY OF ROSEMOUNT AND UNIVERSITY OF MINNESOTA FIRE PROTECTION AGREEMENT THIS AGREEMENT, made and entered into this 1st day of March, 1992, by and between the City of Rosemount, a municipal corporation, of the County of Dakota, State of Minnesota, party of the first part, hereinafter "City", and Regents of the University of Minnesota, a Minnesota constitutional educational corporation, party of the second part, hereinafter "University". WITNESSETH: WHEREAS, the University is desirous of having continued fire protection and rescue service furnished by the City's Fire Department; and WHEREAS, the City has adequate facilities and equipment and is willing to make available fire and rescue protection service for the University (and its property tax paying tenants on its property as described herein); and WHEREAS, the City has by appropriate action authorized its Mayor and City Clerk to enter into a contract with the University for furnishing of said service. NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties hereto, it is agreed as follows: 1. City shall continue to provide fire protection service to all of the University's property located in Rosemount and contiguously in Empire Township. 2. City, through its said Fire Department, shall endeavor to protect and save life, and property from destruction by fire, on this property. 3. That at times weather and road conditions through the various seasons of the year may interfere in the rendering of such service, in which event, failure to furnish the service herein agreed upon, shall not be taken as a breach of agreement. City shall not be liable to University for loss or damage of any kind whatsoever resulting from any failure to furnish or any delay in furnishing firefighers 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 the City or its Fire Department, or otherwise. Further, the University further agrees to indemnify and hold harmless City, its officers, agents, employees or fire department members, from any and all liability, claims, damages or expenses, including but not limited to reasonable attorneys' fees, resulting from any act, error or omission of the University in connection with this Agreement. it will be the sole responsibility of the officer in charge of the City to determine the equipment and manpower necessary to respond to and provide service to the University (and its property tax paying tenants). 4. (a) The University agrees to submit a listing of all tenants that store or handle explosive or hazardous materials. Listing shall contain information including owner, address of owner, phone number and name of contact person, description of explosive or hazardous materials stored at the site and location of site. Wd The University agrees to update said listing at least once every six months. (b) The University further agrees to keep the City informed, on a regular basis, of its own fire fighting equipment and procedures. 5. The University agrees to pay the City as compensation for all fire service furnished pursuant to this Agreement, an amount as follows: (a.) 1991 $4,000 1992 $4,180 1993 est. $4,368 The payment for 1992 reflects an increase equal to the Consumer Price Index for the Minneapolis/St. Paul area for the twelve (12) month period ending in September of 1991. The payment due for 1993 will be established by adding to the 1992 payment an amount equal to the 1992 payment times the change in the Consumer Price Index for the Minneapolis/St. Paul metropolitan area between September 31, 1991 and September 31, 1992. (b.) In addition to the annual payment due per above, the University agrees to compensate the City for actual fire service furnished, unless provided to a building or land whose tenant is paying personal property tax to Dakota County. Additional compensation shall be based upon the following equipment schedule: 3 Unit Rate or Charge Ladder/Pumper $100 per hour per unit Tanker $50 per call per unity Rescue $50 per call per rescue unit Grass Rig $50 per call per unit For the purpose of calculating the hourly charges, the following method will be used: 60 minutes or less = 1.0 hours 61 minutes to 90 minutes = 1.5 hours 91 minutes to 120 minutes = 2.0 hours etc. using � hour increments as minimum additional charges beyond the first hour. (c.) Four Thousand and no/100 Dollars ($4,000) shall be payable for 1991 and Four Thousand One Hundred and Eighty and no/100 Dollars ($4,180) shall be payable for 1992 per article 5. (a.) herein, upon execution of this agreement. And Four Thousand One Hundred Eighty and no/100 Dollars plus the Consumer Price Index increase (see 5. a.) shall be payable for 1993. (d.) The City agrees that it will bill the University on a periodic basis for those appropriate charges set out in subparagraph 5.(b.). These charges, if any, are to be billed to the University and paid by them to the City and are the responsibility of the University. 6. (a.) This agreement shall be for a three (3) year period starting January 1, 1991 and expiring December 31, 1993, subject to termination by either party effective on the contract anniversary date upon an one hundred 4 eighty (180) day written notice served upon the other party; and both parties shall review this agreement starting no later than September 1 each year to renegotiate for another term. (b.) If this contract is terminated prior to the completion of any calendar year, the amount due for the portion of the calendar year while the contract is in effect will be a prorated amount of the prepaid contract amount as set out in subparagraph 5(a) of this agreement and the difference between this amount and the amount paid for the entire calendar year shall be refunded by the City. 7. This Agreement is executed in duplicate, each party has a copy and each copy shall be deemed an original for all purposes. 8. Official notices due hereunder shall be directed to the parties hereto as follows: University of Minnesota City of Rosemount Real Estate Office City Administrator 335 Morrill Hall p.O. Box 510 Minneapolis, MN 55455 Rosemount, MN 55068 5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. IN PRESENCE OF: Notary RECOMMENDED: Susan Carlson Weinberg Real Estate Coordinator Kathy Boudreau Property Manager Rosemount Research Center Ken Walter Acting Superintendent Rosemount Agricultural Experiment Station FOR THE CITY OF ROSEMOUNT Mayor City Clerk REGENTS OF THE UNIVERSITY OF MINNESOTA G Treasurer and Associate Vice - President of Finance APPROVED AS TO FORM AND EXECUTION: University Attorney City Attorney CITY OF ROSEMOUNT AND UNIVERSITY OF MINNESOTA FIRE PROTECTION AGREEMENT THIS AGREEMENT, made and entered into this /-O� day of 1987, by and between the City of Rosemount, a municipal corporation, of the County of Dakota, State of Minnesota, party of the first part, and the University of Minnesota, party of the second part, WITNESSETH: WHEREAS, the party of the second part is desirous of having fire protection and rescue service furnished by the City of Rosemount Fire Department; and WHEREAS, the party of the first part has facilities and equipment and is willing to make available fire and rescue protection service for the party of the second part; and WHEREAS, the party of the first part has by appropriate action authorized its Mayor and Administrator/Clerk to enter into a cuntracv with the party of the second part for furnishing of said service. NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties hereto, it is agreed as follows: 1. Party of the first part shall provide fire protection service to the University of Minnesota, Rosemount property described as the Southwest 1/4 of Section 25, South .1/2 of Sections 26;, 27, 28 except that part of the South 1/2 of Section 28 lying North a,nd West of County Road 42, all of Sections 33, 34, 35 and the West 1/2 of Section 36, Township 115, Range 19 West in the City of Rosemount, Dakota County, Minnesota and the West 1/2 of Section 1, all of Section 2, the East 1/2 of the Northwest 1/4 of Section 3, all of Section 4, the East 1/2 of Section 10, all of Section 11, the West 1/2 of Section 12, and all of Section 13 and 14, Township 114 North, Range 19, West in Empire Township, Dakota County, Minnesota. 5. Party of the second part agrees to pay the party of the fi rst part as compensation for all fire service furnished pursuant to this Agreement, an amount established by the following formulas: (a) Using the 1981 adjusted base of $3,863 from the contract covering the period January 1, 1985 through December 31, 1987, which reflects the $1,000.00 agreed upon as a reduction of 1981 base due to the removal of the 25 single family dwellings from tax exempt status through platting and sale of homes. Continuing the 6 1/2 percent per year increase and 82 percent of the gross after increase will be the actual amount due. The rationale for the 82 percent of the gross is established in that 82 percent of the University of Minnesota buildings are non -tax paying. Fire service for buildings paying taxes are to be excluded from the calculation for that reason. ADJUSTED BASE FOR YEARS NOTED AMOUNT DUE (82% OF BASE) 1988 $4,969 $4,075 1989 5,292 4,339 1990 5,636 4,622 (b) In addition to the annual payment due per Section 5 above, the party of the second part agrees to compensate the party of the first part for actual fire service furnished. Additional compensation shall be based upon the following equipment schedule: Unit Rate or Charge Ladder/Pumper $100.00 per hour per unit Tanker $50.00 per call per unit Rescue $50.00 per call per rescue unit Grass Rig $50.00 per call per unit -3- 7. This Agreement is executed in duplicate, each party has a copy and each copy shall be deemed an original for all purposes. IN PRESENCE OF: IN PRESENCE OF: V � / CITY OF ROSEMOUNT Mayor Admi strator/Cler. UNIVERSITY OF MINNESOTA ROSEMOUNT RESEARCH CENTER -5-