Item 31
CITY COHNCIl REPORT I Meeting Date; August 30, 2016 General Plan Element: Public Services & Facilities General Plan Goal: Provide a safe environment for all citizens, visitors and private interests
ACTION
Adopt Resolution No. 10503 authorizing Agreement No. 2016-095-COS, Intergovernmental Agreement for the Provision of Fire Protecton Services to the Scottsdale County Island Fire District.
BACKGROUND
The Arizona State Legislature passed HB2780 during the 2007 legislative session, which addresses fire protection services in unincorporated county areas that exist within boundaries of an incorporated city or town. HB2780 places requirements on cities and towns with municipal fire departments to provide fire protection services to county islands within their boundaries, when no private alternative exists. The law went into effect September 19, 2007. The legislation affected inhabited county islands within the boundaries of the City of Scottsdale. They are located in the areas of Exeter and 64*^ St., Miller (Cattletrack) Road north of McDonald Road, and the area of Chaparral and 65'^ St., with a total of 39 residential parcels. A legal analysis of the law, conducted by our City Attorney’s Office, concluded that the City could be required to enter into a fire protection agreement, should the residents in one or all of the county islands form a fire district and request the service. The City has been providing fire protection services to this area since 2009.
ANALYSIS & ASSESSMENT
Staff was notified of the intent of the county islands to form a fire district in July of 2007. The district organizers successfully petitioned the Maricopa County Board of Supervisors on March of 2008 and officially became the Scottsdale County Island Fire District in July of 2008. Staff from the City Attorney’s Office, Risk Management, City Treasurer’s Office, and the Fire Department met with representatives from the District to develop an agreement for the City to provide fire protection services to the District that is based on the minimum requirements of the statute.
The term of the Agreement is five years, the maximum term allowed in the statute. The city will receive $25,212 from the District for the provision of service for the remainder of this fiscal year. The amount for service will be adjusted annually, based on the cost of service formula that is shown in Exhibit B of the Contract. The Agreement and cost of service formula has been reviewed and approved by the Maricopa County Attorney's Office and has determined the Agreement is based on commercially reasonable assumptions, as required by the Statue. City staff participated in a valley wide committee to develop a uniform cost of service formula and uniform IGA template to expedite approval by the County Attorney’s Office. City Council Report | IGA - Provision of Fire Protection to Scottsdale County Island Fire District
RESOURCE IMPACTS
Staffing, Workload Impact No additional staff or resources are required to provide fire protection services to the District. Minimal staff time will be required to administer the contract.
Future Budget Implications The City will be compensated annually, based on the cost of service formula, for the term of the Agreement.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach Adopt Resolution No. 10503 authorizing Agreement No. 2016-095-COS, Intergovernmental Agreement for the Provision of Fire Protection Services to the Scottsdale County Island Fire District.
Description of Option B
Based on State Statute, if the City does not voluntarily enter into this Intergovernmental Agreement, the City would be forced to provide fire service to the District and a 3-person board would be formed to set the rate of compensation paid to the City. The 3-person board would consist of one person from the District, one person from the City, and those two persons would agree upon a third person (if no agreement on the third person is achieved, the County Board of Supervisors would appoint the third person). This option could take the compensation methodology out of the City’s control.
RESPONSIBLE DEPARTMENT(S)
Fire Department
City Treasurer's Office STAFF CONTACT(S)
Lee Guillory, Finance Director [email protected]
Ryan Freeburg, Executive Assistant Fire Chief [email protected]
APPROVED BY
Tom Shannon, Fire Chief (480) 312-1821, [email protected]
Jjbffery Mi^i^ CityAJ Treasurer s/,MIC. Date j(480) 312-2364, [email protected]
Page 2 of 3 City Council Report | IGA - Provision of Fire Protection to Scottsdale County Island Fire District
Brian K. Biesemeyer, Acting City Manager Date (480) 312-2800, [email protected]
ATTACHMENTS
1. Resolution No. 10503 2. Contract No. 2016-095-COS
Page 3 of 3 RESOLUTION NO. 10503
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT NO. 2016-095-COS WITH THE SCOTTSDALE COUNTY ISLAND FIRE DISTRICT TO PROVIDE EMERGENCY FIRE SERVICES TO THE COUNTY ISLANDS WITHIN THE CITY OF SCOTTSDALE
The State legislature has adopted legislation that authorizes cities to provide emergency fire protection services to county islands located within the cities’ planning areas; and
The Maricopa County Board of Supervisors have approved the formation of a County Island Fire District within the City of Scottsdale; and
The City of Scottsdale and the Scottsdale County Island Fire District have negotiated an intergovernmental agreement to provide fire services to the fire district for a period of five (5) years, for an annual cost to the District of $25,212; and
In accordance with State law, the Maricopa County Attorney’s Office has determined that the Agreement is commercially reasonable and has approved the Agreement.
BE IT RESOLVED by the Council of the City of Scottsdale as follows:
Section 1. The Mayor is authorized and directed to sign Intergovernmental Agreement No. 2016-095-COS to provide emergency fire services to the Scottsdale County Island Fire District.
PASSED AND ADOPTED by the Council of the City of Scottsdale this____day of . 2016.
City of Scottsdale, an Arizona Municipal Corporation ATTEST:
Carolyn dagger. City Clerk W. J. “Jim” Lane, Mayor
APPROVED AS TO FORM:
BruceWaghDurrTCi^Attorney C By: Clifford J. Frey Senior Assistant City Attorney
14646577V1 Attachment 1 Contract No. 2016-095-COS Resolution No. 10503
WHEN RECORDED RETURN TO: Ryan Freeburg Executive Assistant Fire Chief Scottsdale Fire Department 8401 E. Indian School Road Scottsdale, Arizona 85251
INTERGOVERNMENTAL AGREEMENT FOR THE PROVISION OF FIRE PROTECTION SERVICES TO THE SCOTTSDALE COUNTY ISLAND FIRE DISTRICT BY THE CITY OF SCOTTSDALE, MARICOPA COUNTY, ARIZONA
THIS AGREEMENT (“Agreement”) is entered into between the CITY OF SCOTTSDALE, an Arizona municipal corporation, (“City”) and the SCOTTSDALE COUNTY ISLAND FIRE DISTRICT, a political subdivision of the State of Arizona, (“Fire District”), collectively referred to in this Agreement as the “parties.”
RECITALS
The City Charter and A.R.S. §11-952, et. seq. authorize the City, and A.R.S. §48- 853(A)(8)(a) and §48-853(A)(10) authorize the Fire District to enter into intergovernmental agreements for the provision of joint action or services, including fire protection services; and
A.R.S. §48-853 authorizes a city to provide fire protection services outside its corporate limits to non-contiguous county islands formed into a Fire District; and
The Scottsdale County Island Fire District has been duly formed by the Maricopa County Board of Supervisors according to law; and
The City is willing to provide fire protection services for property within the Fire District provided that the City is paid for the cost of providing these services, and that City fire fighting personnel are not put at greater risk of death or injury than they would be when responding to emergencies within the City because of infrastructure and hazardous materials storage concerns within the Fire District; and
The parties desire to enter into this Agreement to provide fire protection services within the boundaries of the Fire District.
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AGREEMENT
FOR AND IN CONSIDERATION of the mutual promises and obligations contained in this Agreement, and for other good and valuable consideration, it is agreed as follows:
Article 1. Definitions.
A. “Automatic Aid” means the fire and medical response system, operated by the Phoenix Regional Dispatch System covering the majority of Maricopa County and portions of Pinal County, using satellite and computerized dispatching, and common communications and operating procedures that provides a seamless fire and emergency medical services crossing jurisdictional lines.
B. “Contract Administrator” for the Fire District means the Chairperson of the District Board.
C. “Day” means a calendar day, without regard to whether it is a Saturday, Sunday or holiday.
D. “Emergency” means an incident that poses an immediate threat to life, property, or public safety.
E. “Emergency Medical Services” means emergency medical services performed by Fire Department Personnel as a first responder. It does not include vendors providing contracted ambulance services as regulated by Title 36 of the Arizona Revised Statutes.
F. “Fire Protection Services” means such services as are regularly provided by a municipal fire department and includes, but is not limited to, fire prevention, emergency medical services, inspection of commercial or industrial property where a known code violation exists and enforcement. It does not include inspection and code enforcement in residential property.
G. “Mutual Aid” means service by the City, which is rendered outside the City, in accordance with a written agreement between the City and another governmental agency for mutual emergency aid, in accordance with State law and applicable provisions of the City Code.
Article 2. Fire District Area.
The area comprising the Fire District covered by this Agreement is that area approved by the Maricopa County Board of Supervisors and depicted on the map, attached as Exhibit “A” and by this reference made a part of this Agreement; as such area may be altered through amendment from time to time.
Article 3. Term of Agreement.
Subject to the provisions for early termination as stated in Article 10, the term of this Agreement will be for a period of 5 years, beginning on the effective date of this
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Agreement. For purposes of this Agreement, the effective date of this Agreement shall be the 30th day of August, 2016. This Agreement may be renewed for additional 5 year terms by mutual agreement of the parties after first giving 365 days written notice of their intention to renew. The obligations stated in Articles 5 and 13 will survive the termination or expiration of this Agreement.
Article 4. Scope of Services and Response Performance.
The City will provide fire protection services to property within the Fire District using the City’s existing levels of infrastructure and equipment. The City will provide fire protection services to the Fire District in the same manner as it provides these services to City residents within the City’s jurisdictional limits. Except as is stated otherwise in this Agreement, the City specifically represents that it is not undertaking any additional duty to act, guaranteeing any response times or agreeing to obtain any additional fire protection services capacity or infrastructure by virtue of its obligations under this Agreement.
Article 5. Payment for Fire Protection Service Provided.
The Fire District will pay the City for the fire protection services provided in accordance with the payment formula as stated in Exhibit “B”, attached and by reference made a part of this Agreement. The amount of the payment for fire services may be adjusted annually based on the payment formula set forth in Exhibit “B.” If the amount of the payment changes because of a change in the costs of providing fire services, the City will give the Fire District notice of the change on or before June 15 of each year. Payments must be made in accordance with the payment schedule as provided in Exhibit “C”, attached and by reference made a part of this Agreement. The first payment in the amount of $12,606 will be made on or before December 15, 2016, with a second payment due on June 15, 2017 in the amount of $12,606. These two (2) payments are based on an annual fee for fire protection services of $25,212. The City may, after first giving 90 days written notice, terminate this Agreement if the Fire District fails to make the payments required by this Article 5.
Article 6. Safety Issues.
While the City has agreed to provide fire protection services to property within the Fire District the City must protect the safety of its emergency response personnel. Certain infrastructure issues and hazardous material storage practices, which would not be permitted within the City, may currently exist within the Fire District, increasing the risk to the City’s first response personnel. Where these infrastructure issues and hazardous material storage practices are implicated, they may limit the scope and effectiveness of the services that the City will provide to property located within the Fire District. All emergency services will be provided to the Fire District consistent with the geography of the Fire District, the location of Fire Stations, current infrastructure, water access, streets and building codes of the Fire District property. It is agreed that the recitation of some safety-related issues in this Article is not meant to be all-inclusive. It is agreed further that the City will generally use “universal precautions,’’ meaning it assumes the worst, when dealing with unknown conditions while providing emergency services in compliance with the terms of this Agreement. As a result, the City may be limited in its ability to provide effective fire service to property within the Fire District without proximately located fire hydrants or where any proximately located hydrants
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Article 7. Notice Regarding Safety Issues.
A. Notification of Safety Issues. At the time of execution of this IGA, all facilities within the Fire District are residential, except for the Arizona Public Service Substation. The City has no obligation to inspect these residential facilities within the Fire District for any safety-related issues that may exist on any residential facility within the Fire District. Either party is free at any time to notify the other of safety issues that it discovers.
B. Code Enforcement. The Fire District must adopt the City’s Fire Code (2012 edition of the International Fire Code), and keep 3 copies on file with the Fire District. The Fire District and City’s authority to conduct inspections using that Fire' Code is applicable only to commercial and industrial properties, and does not apply to residential properties. Should commercial or industrial facilities be constructed in the Fire District, either party may inspect commercial and industrial properties and review structural and operational issues with property owners located within the Fire District, make recommendations based on these reviews, and, at either party’s sole election, report compliance issues that either party may discover to the State Fire Marshal, the other party or other applicable regulatory agencies. Where the City knows of a Code violation, it may seek enforcement of the City Fire Code for these known violations. Nothing contained in this Article will be construed in any manner as requiring the City to report any compliance issues.
Article 8. Management of Fire Protection Services.
The City will be responsible for managing the day to day operations necessary for the provision of fire protection services to the Fire District in conjunction with similar services provided within the City.
Article 9. Termination.
Except as provided in Article 5 above, either party has the right to terminate this Agreement after first giving 365 days written notice to the non-terminating party.
Article 10. Fire and Emergency Medical Dispatch Services.
The City will be responsible for providing fire and emergency medical dispatch services through the Phoenix Regional Dispatch Center. The City will provide all necessary radio transmitting or receiving equipment that may be reasonably necessary to provide standard radio coverage to most areas of the Fire District. It is acknowledged that the City may be limited in its ability to provide effective fire and emergency medical dispatch and communication services for structures located on property within the Fire District, particularly commercial and industrial structures. The City will make no distinction between the notification given for 911 calls received from the Fire District and those received within the City’s jurisdiction limits.
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Article 11. Mutual Aid and Automatic Aid Consortium.
The Fire District will not enter into any mutual aid agreements in its own name. During the term of this Agreement only, the Fire District will become a member of the Regional Automatic Aid Consortium through the execution of this Agreement.
Article 12. Indemnification.
A. Indemnification of the City. To the fullest extent permitted by law, the Fire District, its successors, guarantors, and assigns will defend, indemnify and hold harmless the City, its authorized agents, authorized representatives, officers, directors, officials and employees from and against any and all liability, loss, expense, damage, allegation or claim of any nature whatsoever which is caused by any activity, condition or event arising directly or indirectly, in whole or in part, out of the performance or nonperformance of any of the provisions of the contracted services unless the services were provided in a grossly negligent manner. This indemnification specifically includes any claim or expense associated with the City limiting the scope of the fire protection services provided for a particular property within the Fire District in the manner specified in this Agreement. In conjunction herewith, the District shall secure insurance sufficient to cover liability exposure, as more specifically set forth in Article 14, below.
B. Dispute Resolution. The parties agree that in the event that there is a dispute regarding indemnification, the matter may be submitted to mediation or any other alternative dispute resolution process as the parties may agree. If no agreement can be reached, jurisdiction for any court proceeding will lie in the Maricopa County Superior Court. The prevailing party will be entitled to recover against the other party its reasonable attorney’s fees, expert witness fees and other taxable costs incurred in connection with the action.
C. Indemnity’s Effect on the Insurance Provisions. The Insurance provisions in this Agreement are separate and independent from the indemnity provisions of these articles and will not be construed in any way to limit the scope and magnitude of the indemnity provisions. The indemnity provisions of these articles will not be construed in any way to limit the scope and magnitude and applicability of the insurance provisions.
Article 13. Clean Up.
The City will not be responsible for, or provide any clean-up or response relating to debris, residue or waste generated by providing fire protection services under the terms of this Agreement.
Article 14. Insurance Representations and Requirements.
The Fire District will secure insurance sufficient to cover its liability exposure in an amount and under the coverage term set forth in Exhibit “D,” attached and by reference made a part of this Agreement. The City’s Risk Management Director is authorized to review and accept such insurance as the Fire District can obtain to cover its liability exposure and may increase or decrease the amount and scope of coverage of
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insurance required by this Article when in the Risk Management Director’s professional judgment it is necessary because of the cost and difficulty of obtaining insurance coverage by the Fire District. The City will meet its statutory obligation to maintain workers’ compensation insurance for all of its employees.
The City will be an additional insured to the full limits of liability purchased by the Fire District and Fire District insurance coverage must be primary and non-contributory with respect to all other available sources.
Article 15. Annual Reports.
The City will include the services provided within the Fire District as part of its regularly prepared annual report, a copy of which will be filed with the Fire District within 15 days after the report is published each fiscal year. This requirement will continue for the life of this Agreement in a format mutually agreed to by the Parties which will provide information specific to fire protection services within the Fire District.
Article 16. Default and Remedies.
In the event that a party is in default under this Agreement, the other party will have all remedies available to them at law or in equity (including expedited equitable relief) whether under this Agreement or otherwise. The duties and obligations imposed by this Agreement and the rights and remedies available, other than the indemnification provisions, will be in addition to and not a waiver or limitation of any duties, rights and remedies otherwise imposed or available at law or equity.
A. Notice and Opportunity to Cure. If a party believes the other party is in default under the terms of this Agreement, the non-defaulting party will give the defaulting party 30 days written notice of the nature of the default. The defaulting party will have a period of 30 days within which to cure or commence efforts to cure the default before the default becomes actionable. If the defaulting party has commenced good-faith efforts to cure the default within the 30 day period, but the nature of the default will not permit a cure within this period, the failure to cure within the 30 day period will not be considered a default, provided the defaulting party completes the cure within a reasonable period of time. This Article will not apply to any default that occurs as a result of a failure on the part of the Fire District to pay its obligations under this Agreement. No advance notice is required by the non defaulting party if the default is considered to be an imminent threat to the public health, safety or welfare.
B. Dispute Resolution. Before conducting any litigation relating to this Agreement, and in addition to the dispute resolution provisions provided in Article 13.C, the City and the Fire District will negotiate in good faith and attempt to resolve any dispute, controversy, claim or default arising out of this Agreement.
Article 17. Contract Administrator.
The Contract Administrator for the Fire District for this Contract will be the Chairperson of the Fire District Board. The Contract Administrator may act on behalf of
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Article 18. Miscellaneous Provisions.
A. Governing Law. This Agreement will be governed, construed and controlled according to the laws of the State of Arizona.
B. Waiver. No delay or failure to exercise any right or remedy will constitute a waiver of the right or remedy, and no waiver by the Parties of the breach of any provision of this Agreement will be construed as a waiver of any other provision.
C. Severability. The terms and conditions of this Agreement are severable. If for any reason, any court of law or administrative agency should consider any provision of this Agreement invalid or inoperative, the remaining provisions of this Agreement will remain valid and in full force and effect. In accordance with the provisions of ARS § 41-194.01, should the Attorney General give notice to the City that any provisions of this Agreement violates state law or the Arizona Constitution, or that it may violate a state statute or the Arizona Constitution and the Attorney General submits the offending provision to the Arizona Supreme Court, the offending provision(s) shall be immediately severed and struck from this Agreement and the City and the Fire District shall, within 10 days after such notice, negotiate in good faith to resolve any issues related to the severed provision(s). If the parties cannot negotiate a resolution within 10 days, as cited, either party may give written notice of immediate termination.
D. Legal Fees, Costs and Expenses. In the event either Party brings any action for any relief, declaratory or otherwise, arising out of this Agreement, the prevailing Party will be entitled to reasonable attorney’s fees, costs and expenses, as determined by the court, and which will be considered to have accrued on the commencement of the action. This provision will be enforceable whether or not any action is prosecuted to judgment.
E. No Partnership. It is not intended by this Agreement that anything contained in it will create any legally recognized partnership, legally recognized joint venture or legally recognized agency relationship between the City and the Fire District.
F. No Third Party Beneficiaries. No term or provision of this Agreement will benefit any third person, or any other firm, organization, or corporation not a Party to this Agreement, and no person, firm, organization, or corporation will have any right or cause of action under this Agreement.
G. Entire Agreement. This Agreement constitutes the entire agreement between the Parties. No representations, agreements or understandings, oral or written, other than those stated in this Agreement will vary its terms.
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H. Counterparts. This Agreement may be executed in one or more counterparts, and each originally executed duplicate counterpart of this Agreement will be considered to possess the full force and effect of the original.
I. Captions. The captions used in this Agreement are solely for the convenience of the Parties, do not constitute a part of this Agreement and are not to be used to construe or interpret this Agreement.
J. Conflict of Interest. Pursuant to the provisions of A.R.S. §38-511, each party may cancel this Agreement if any person significantly involved in initiating, negotiating, securing, drafting or creating the Agreement on behalf of the City is at any time while the Agreement or any extension of the Agreement is in effect, an employee of any other Party to the Agreement in any capacity to any other Party to the Agreement with respect to the subject matter of the Agreement. Pursuant to the provisions of A.R.S. §11-952 (B)(4), in the event of termination any property contributed by either party shall be returned to the respective party.
K. Authority. Each Party warrants and represents that it has full power and authority to enter into and perform this Agreement, and that the person signing on behalf of each has been properly authorized and empowered to sign this Agreement. Each Party further acknowledges that it has read this Agreement, understands it, and agrees to be bound by it.
L. Assignment. Neither Party may assign or delegate the rights or obligations of this Agreement except with the written consent of the other Party.
M. Liens. The City will not take any action that causes a lien to be placed on any Fire District property. In the event of a lien, the City will notify the Fire District and take steps to immediately extinguish the lien.
N. Regulatory Compliance. The parties agree to comply with all applicable state and federal laws and regulations.
O. Compliance with E-Verify Program. Under the provisions of A.R.S. §41- 4401, both parties warrant to the other that each will comply with all Federal Immigration laws and regulations that relate to their employees and that each now complies with the E-Verify Program under A.R.S. §23-214(A).
A breach of this warranty will be considered a material breach of this Agreement and may subject the breaching party to penalties up to and including termination of this Agreement.
Both Parties retain the legal right to inspect the papers of any employee who works on this Contract or subcontract to ensure compliance with the warranty given above.
Either Party may conduct a random verification of the employment records of the other to ensure compliance with this warranty.
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A Party will not be considered in material breach of this Agreement if it establishes that it has complied with the employment verification provisions prescribed by 8 USCA §1324(a) and (b) of the Federal Immigration and Nationality Act and the E-Verify requirements prescribed by A.R.S. §23- 214(A).
The provisions of this Article must be included in any contract either Party enters into with any and all of its contractors or subcontractors who provide services under this Agreement.
P. Interpretation and Definitions. The Parties agree that each Party and its counsel have reviewed and revised this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not apply in the interpretation of this Agreement.
Q. Time of the Essence. Time is declared to be of the essence of the performance of all terms, covenants, conditions and obligations contained in this Agreement.
R. Force Majeure. Either party will be excused for failures and delays in performance of its respective obligations under this Agreement due to any cause beyond its control and without fault. Nevertheless, each party will use its best efforts to avoid or remove those causes and to continue performance whenever the causes are removed, and will notify the other party of the problem.
S. Amendment. The terms contained in this Agreement may only be amended with City Council and Fire District Board approval.
T. Recitals. The Recitals are by this reference made a part of this Agreement.
U. Notice. Unless otherwise provided in this Agreement, all notices, demands, requests, consents, approvals and other communications (collectively, “Notices”) required by this Agreement will be given by certified U.S. Mail, postage prepaid or personally delivered, against receipted copy, at the address stated below or at any other address as either party will, from time to time, designate in writing to the other given in the same manner specified in this Article. Notices will be considered received upon receipt, will be evidenced by a receipted copy (in the case of notices that are personally delivered), or as evidenced by the postal service receipt. Notice by facsimile or electronic mail will not be considered adequate notice.
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If to the Fire District: With a copy to; David Calverley 4400 N. Scottsdale Road Suite 9-142 Scottsdale, Arizona 85251
If to the City: With a copy to: Ryan Freeburg City Attorney Executive Assistant Fire Chief City of Scottsdale Scottsdale Fire Department 3939 N. Drink\water Blvd. 8401 E. Indian School Road Scottsdale, Arizona 85251 Scottsdale, Arizona 85251
V. Legislative Changes. Should the Arizona Legislature change the provisions of the legislation dealing with Non-Contiguous County Islands in such a manner as to deny either party the benefits of their bargain under the terms of this Agreement, the parties will negotiate in good faith to amend the Agreement in a manner so as to preserve the benefits of this Agreement to both parties. But if either party believes the legislation has been changed in such a manner as to deny the party the benefits of their bargain, that party may terminate this Agreement on giving the other party 90 days written notice.
W. Non-appropriation of Funds. If funds are not appropriated by the City Council for this Agreement, the City will terminate this Agreement as required by A.R.S. §42-17106. In addition, if sufficient funds are not appropriated by the District for the purposes contemplated by this Agreement, the District may terminate this Agreement as well.
THE PARTIES have executed this Intergovernmental Agreement by signing their names on the day and year stated below.
CITY OF SCOTTSDALE, an SCOTTSDALE COUNTY ISLAND FIRE Arizona municipal corporation DISTRICT, a political subdivision of the State of
By:______W. J. “Jim” Lane, Mayor Calverley, Chairman Date: ^6 Ze. [ to Date:
ATTEST:
Carolyn dagger. City Clerk
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The undersigned attorney for the City certifies that the attorney has reviewed this Agreement and finds that it is in proper form and within the power and authority granted to the City under the laws of the State of Arizona.
APPROVED AS TO FORM:
Bruce Wafehburn, Q3ty Attori( By: Clifford J. Frey Senior Assistant City Attorney
Date:
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The undersigned attorney for the Fire District certifies that the attorney has reviewed this Agreement and finds that it is in proper forrn and within the poyver and authority granted to the City under the laws of the State of Ari^na.
Fire District Attorney Date: s-
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PAGE INTENTIONALLY
LEFT BLANK
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EXHIBIT “A”
MAP OF COUNTY ISLAND FIRE DISTRICT
),J il
Paradise Valley
' m“i
Phoenix
Scottajdale
County Islands Without Fire Service •— City of Scottsdale Municipal Planning Area
MCMMr^>«MMW^OaC*.V«MMtaetCSU1lrOMlMOMOi • SCMMM MFA M MfWrwl «• fM M(i. IM
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EXHIBIT “B”
COST OF SERVICE FORMULA
Begin with Adopted Fiscal Year Operating Budget Subtract Revenue Offsets Add Capital Expenses Add City Overhead Rate Equals Total Fire Department Budget Divided by City + County Islands Secondary Assessed Value
Multiplied by County Islands Secondary Assessed Value Equals County Island Fire District Fee
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EXHIBIT “C”
PAYMENT SCHEDULE
One half on December 15 of each year.
One half on June 15 of each year.
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EXHIBIT “D”
INSURANCE REQUIREMENTS
Insurance Representations and Requirements
General: Without limiting any obligations or liabilities of the Scottsdale County Island Fire District, the Fire District must purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies duly licensed by the State of Arizona (admitted insurer) with an AM Best, Inc. rating of B ++ 6 or above or an equivalent qualified unlicensed insurer by the State of Arizona (non-admitted insurer) with policies and forms satisfactory to City of Scottsdale. Failure to maintain insurance as specified may result in termination of this Agreement at City of Scottsdale’s option, upon giving of notice and opportunity to cure as provided in Article 17 of the Agreement.
No Representation of Coverage Adequacy: By requiring this insurance, the City of Scottsdale does not represent that coverage and limits will be adequate to protect the Fire District. The City of Scottsdale reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand evidence of full compliance with the insurance requirements stated in this Agreement or failure to identify any insurance deficiency does not relieve the Fire District from, nor be construed or considered a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement.
Claims Made: In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage must extend, either by keeping coverage in force or purchasing an extended reporting option, for 3 years past completion and acceptance of the work or services as evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions required by this Agreement for the 3-year period.
Policy Deductibles and or Self Insured Retentions: The policies stated in these requirements may provide coverage which contain deductibles or self insured retention amounts. These deductibles or self insured retention will not be applicable with respect to the policy limits provided to City of Scottsdale. The Fire District is solely responsible for any deductible or self insured retention amount. City of Scottsdale, at its option, may require District to secure payment of any deductible or self insured retention by a surety bond or irrevocable and unconditional Letter of Credit.
Evidence of Insurance: Before commencing services under this Agreement, the Fire District must furnish the City of Scottsdale with Certificate(s) of Insurance, or formal endorsements as required by this Agreement, issued by the Fire District’s insurer(s) as evidence that policies are placed with acceptable insurers as required in this Agreement and provide the required coverage, conditions, and limits of coverage and that this coverage and provisions are in full force and effect. If a Certificate of Insurance is submitted as verification of coverage, the
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City of Scottsdale will reasonably rely upon the Certificate of Insurance as evidence of coverage but any acceptance and reliance does not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the above cited policies expire during the life of this Agreement, it is the District’s responsibility to forward renewal Certificates within 10 days after the renewal date containing all the aforementioned insurance provisions.
Certificates must specifically cite the following provisions:
1. The City of Scottsdale, its agents, representatives, officers, directors, officials and employees must be named an Additional Insured under the following policies: a. Commercial General Liability b. Auto Liability c. Excess Liatjility - Follow Form to underlying insurance as required. 2. District's insurance must be primary insurance as respects performance of this Agreement. 3. All policies must waive rights of recovery (subrogation) against the City of Scottsdale, its agents, representatives, officers, directors, officials and employees for any claims arising out of services performed by the City of Scottsdale under this Agreement. 4. District is required to give City 10 days advance written notice of cancellation or non renewal of the required insurance.
Required Coverage
Commercial General Liability: The Fire District must maintain “occurrence” form Commercial General Liability insurance with a limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate, and a $2,000,000 General Aggregate Limit. The policy must cover liability arising from premises, operations, independent contractors, products- completed operations, personal injury and advertising injury. If any Excess insurance is utilized to fulfill the requirements of this paragraph, this Excess insurance must be “follow form” equal or broader in coverage scope then underlying.
Vehicle Liability: Fire District must maintain Business Automobile Liability insurance with a limit of $1,000,000 each accident on District’s owned, hired, and non-owned vehicles assigned to or used in the performance of the Fire District’s work or services under this Contract. If any Excess insurance is utilized to fulfill the requirements of this paragraph, the Excess insurance must be “follow form” equal or broader in coverage scope than underlying insurance. As long as the Fire District does not own or have title to a vehicle, this requirement may also be met with an endorsement to the Fire District’s Commercial General Liability policy insuring Non-owned and Hired Auto Liability with a limit of not less than $1,000,000 each accident. The Certificate of Insurance must specifically note the Non-owned and Hired Auto Liability coverage section to meet this requirement.
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