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00-036CITY OF SHOREWOOD RESOLUTION NO.00- 036 A RESOLUTION AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE EXCELSIOR FIRE DISTRICT JOINT POWERS AGREEMENT WHEREAS, the City of Shorewood (City) has a desire to join with the Cities of Deephaven, Excelsior, Tonka Bay, and Greenwood to form a joint powers fire district; and WHEREAS, the Special Excelsior Fire Department Transition Committee has drafted an Excelsior Fire District Joint Powers Agreement, hereinafter referred to as "the Agreement", attached hereto as Exhibit A and made a part hereof; • NOW, THEREFORE, BE IT RESOLVED that the Shorewood Cite Council hereby authorizes and directs the Mayor and the City Administrator to execute the Agreement on behalf of the City. ATTEST: ADOPTED by the Shorewood City Council this loth day of April 2000. LOVE, MAYOR BRADLEY J. N N, AC ING CITY ADMINISTRATOR 0 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE EXCELSIOR FIRE DISTRICT JOINT POWERS AGREEMENT THIS AGREEMENT, made and entered into as of this _ day of , 2000, by and between the Cities of Deephaven, Excelsior, Greenwood, Shorewood, and Tonka Bay, all of which are municipal corporations of the State of Minnesota (collectively, the "Member Cities"). WHEREAS, the parties hereto are authorized by law to provide fire protection and medical response services to their residents; and WHEREAS, the parties hereto have determined that such power may be best exercised jointly by creation of the Excelsior Fire District to carry out such purposes; and WHEREAS, the parties hereto desire to enter into a joint powers agreement for the purpose of creating and implementing said District including its operation, ownership of equipment and facilities, and funding; and WHEREAS, Minnesota Statutes Section 471.59 authorizes governmental units by agreement of their governing bodies jointly and/or cooperatively to exercise any power common to the • contracting parties and to provide for a joint board representing the parties to the agreement; and WHEREAS, all previous agreements, amendments or parts thereof in force at the time of execution of the Excelsior Fire District Joint Powers Agreement ftre-kerebywill.:be repealed and replaced; and Ll WHEREAS, each signatory to this Agreement ltashereby agreeds to repeal any ordinance in effect in its city that is in conflict with this Agreement, and to amend any existing ordinance or adopt a new ordinance in order to create the Excelsior Fire District; NOW THEREFORE, the parties to this Agreement mutually agree as follows: Section 1 General Purpose and Intent 1.1 General Purpose. It is the general purpose of this Agreement: a.) To provide fire protection services including, but not limited to, fire prevention, fire fighting, and rescue and medical response to one community comprised of the Member Cities; and HC26DS4/ 4706/ 26504960.v5 4/2/2000 Exhibit A 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE b.) To establish a governance structure which will act to the extent possible as an autonomous entity. 1.2 General Intent. It is the general intent of the parties to this Agreement to declare the cities' commitment to establish, through special legislation or other means, a special unit of government to provide fire protection and medical response services to the Excelsior Fire District and to provide the basis for a smooth transition to that special unit of government. Section 2 Organization 2.1 Establishment. There is hereby established by the execution of this Agreement the "Excelsior Fire District" (hereinafter referred to as the "District") to be managed and operated pursuant to the terms of this Agreement. 2.2 Governance. The governing body of the District shall be the "Excelsior Fire District Board" (hereinafter referred to as the 'Board"). The Board shall consist of the following members: • a.) Voting Members: Voting Members shall include one (1) elected official of the city council of each Member City. No employee of the District or any police department serving any of the Member Cities may serve on the Board as a Voting Member. If any Member City/Cities are hereafter consolidated into a new municipal corporation, the new corporation shall have one (1) Voting Member representative. b.) Ex-Officio (non -voting) Members: The chief administrative officer (city manager, administrator, or clerk) of each Member City shall serve on the Board as a non- voting Ex-Officio Member. c.) Alternate Members: The city council of each Member City shall name one (1) elected official of the city council Hof each city to serve as an Alternate Member in case of absence of the Voting or Ex-Officio Member. The Alternate Member shall have the authority to vote in place of (but not in addition to) the Voting Member. The Alternate Member shall not participate as a Board Member except in the absence of the council member or the Ex-Officio Member. • HC26DS4/ 4706/ 26504960.v5 4/2/2000 -2- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE d.) Board Procedures: The Board shall elect from among its Voting Members, a Chair and a Vice -Chair. The Chair shall act as the presiding officer at Board meetings and the Vice -Chair shall act as the presiding officer at any meetings not attended by the Chair. The Board shall have authority to adopt by-laws establishing its own procedures. 2.3 Compensation. Board members shall serve without compensation from the District, but nothing herein shall be construed to prevent a Member City from compensating its members for service on the Board to the extent such compensation is otherwise authorized by law. 2.54 Board Quorum. Four of the Voting Members present shall constitute a quorum for the purposes of all Board meetings, with the exception of Special Quorum Meetings, at which three Voting Members shall constitute a quorum.- 2.45 Meetings. The Board shall hold regular meetings at least once each calendar quarter. The Board may also, from time to time, hold special meetings and emergency meetings. • At any Board meeting attended by only three Voting Members, the three Voting Members in attendance may, by unanimous vote of all three Voting Members in attendance, call for a Special Quorum Meeting. A Special Quorum Meeting may be held only upon at least three days' notice. The quorum for a Special Quorum Meeting shall be achieved by the attendance of three Voting Members. All meetings of the Board are governed by the Minnesota Open Meeting Law, Minnesota Statutes Section 471.705. 2.6 Voting. Each Voting Member shall have an equal vote. Unless otherwise specified herein, the Board may take action on any issue by majority vote of all Voting Members. Voting by proxy is not allowed. 2.7 Operating Committee. The Ex-Officio Members shall comprise the Operating Committee. The Operating Committee shall meet with the Fire Chief/District Administrator on a • HC26DS4/ 4706/ 26504960.v5 4/2/2000 -3- 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE monthly basis and report to the Board at each regular meeting. The Operating Committee shall have authority to approve budgeted expenditures during monthly meetings. Non -budgeted expenditures must be approved by the Board. A list of bills shall provided to each member of the Operating Committee on a monthly basis. 2.8 District Office. The address of the District shall be 339 Third Street, Excelsior, Minnesota 55331-1877. (This address maybe changed by the Board.) 2.9 Fiscal Agent. The City of Excelsior shall act as the initial fiscal agent for the District for which it shall be compensated by the District. The Board may change the fiscal agent as it deems necessary from time to time. The District shall indemnify and hold the fiscal agent harmless from any claims, causes of action, or liability arising out of actions it takes in performing duties under this section except for claims, causes of action or liability arising out of the negligent or intentional acts of the fiscal agent in performing its duties under this paragraph. 2.10 Default. No Board member shall be eligible to vote on behalf of the Member City he or she represents during such time as that Member City is in Default of the terms or provisions of this Agreement. During the time that a Member City is in Default, that Member City's seat on • the Board shall not be counted for purposes of calculating a quorum or a prevailing vote. For the purposes of this Agreement, "Default" shall mean any breach of the terms of this Agreement or failure to comply with any of the provisions herein. Section 3 General Powers of the Board 3.1 Powers. The Board shall have and is hereby given all powers, duties and functions enumerated in this Agreement and provided by law, and all such further powers necessary to carry out the intent and purpose of the District with respect to acquisition of property and operation of the District heretofore set forth, including but not limited to the following: a.) To employ and determine the terms of employment of fire protection, administrative, and other personnel, accountants, consultants, engineers, legal counsel, and other qualified personnel, except as provided in this Agreement. b.) To cause reports, plans, studies, and recommendations to be prepared. c.) To purchase capital equipment and land, and to cause the construction of buildings to implement the purposes of the District. HC26DS4/ 4706/ 26504960.0 4/2/2000 -4- •4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE d.) To lease or purchase equipment (including capital equipment) and supplies necessary for the proper operation, care, maintenance, and preservation of District facilities and equipment. e.) To adopt District bylaws, rules and regulations for the operation, maintenance and use of District fire protection services, equipment, and facilities. f.) To enter into mutual aid agreements with other organizations with similar purposes. g.) To dispose of capital equipment and land consistent with the terms of this Agreement. h.) To sell or lease any of its equipment (including capital equipment) as may be deemed expedient. i.) To establish a yearly operating budget for District services and a capital improvement program/finance plan (including an equipment replacement schedule) of not less than ten years' duration, which shall require approval consistent with the terms of this Agreement. j.) To act as agent for receipt, custody, and disbursement of funds, gifts, or other funds paid or given by the Member Cities on behalf of or for the use of the District. k.) As may be authorized by State law, to act as paying agent for any bonds, contract of indebtedness, and loans made in the names of the Member Cities for the benefit of the District, and act as a custodian of sinking funds created for or required by such indebtedness. 1.) To cause an annual independent audit to be made of all its accounts, books, vouchers, and funds. m.) To promulgate, establish, and adopt suitable bylaws governing operations of the Board. n.) To continue a Firefighters' Relief Association for the benefit of members of the District and to make such contribution to the fund of the Firefighters' Relief Association as the Board deems appropriate. • HC26DS4/ 4706/ 26504960.v5 4/2/2000 -5- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE o.) To contract to provide fire protection and medical response services. 3.2 Disbursements and Bonds. Except as otherwise provided, all unanticipated disbursements of the District shall be approved by the Board and co -signed by two officials designated by the Board. Section 4 Fire Equipment, Land, sn-Buildings, and Funds 4.1 Disposition of Equipment to the Excelsior Fire District. �4pett the-eEffective date-ef tile ' January 1`.200I; all equipment and personal property of the City of Excelsior Fire Department used to provide fire protection services included on the attached Schedule A (the "Leased Equipment") shall be leased to the District pursuant to the terms of t1 an Equipment Lease Agreementdated 2 GG (the "Equipment Lease Agreement"), for One Dollar ($1.00), for a term ending upon the dissolution of the District (which would include the creation of a Fire Services Taxing District) or the expiration of a term of five (5) years. In the event that the District is dissolved before the expiration of the five-year lease term, the Equipment Lease Agreement shall be voided, and the Leased Equipment returned to the City of Excelsior. All expenses relating to the maintenance . and repair of the Leased Equipment and incurred subsequent to the conveyance of the Leased Equipment shall be an operating expense of the District. The District shall have the right to sell the Leased Equipment pursuant to the terms of the Equipment Lease Agreement. The District shall fully document each such sale and retain all records relating to such sale. 4.2 Reimbursement to City of Excelsior Upon Dissolution. In the event that the Member Cities reach an agreement to dissolve the District at any time during the first five years of District operation (which five-year period shall begin on the _ ffeetiy date set tut :.. S _etia_ 24 of 4-45 <ntJanuary 1, 2001), the City of Excelsior shall receive from the District: • One hundred percent (100%) of the value listed on Schedule A for any Leased Equipment sold during tke-fibcalendar year 001 Eighty percent (80%) of the value listed on Schedule A for any Leased Equipment sold during tite-seeatt alendar year 2002; Sixty percent (60%) of the value listed on Schedule A for any Leased Equipment sold during tile-thirdcalendar year 4 9istriet operatieft2003; • HC26DS4/ 4706/ 26504960.0 4/2/2000 -6- 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE Forty percent (40%) of the value listed on Schedule A for any Leased Equipment sold during the faut-4icalendar year of Distriet operati&t2004; and Twenty percent (20%) of the value listed on Schedule A for any Leased Equipment sold during the -€4kcalendar year of Bistriet opera4eft2OO5. Any sum distributed to the City of Excelsior pursuant this Section shall be in addition to any distribution owed to the City of Excelsior pursuant to Section 12 of this Agreement. Section 4.2 shall not apply in the event that the District is dissolved for the sole purpose of the establishment by the Member Cities of a Fire Services Taxing District. 4.3 Existing Land and Building. The Fire Station used by the Excelsior Fire. Department prior to this.,A ement shall,,, beginning on January 1, 2001; became the initial°Fire Station for the District. ;Ownership of the existing building and land for the Fire Station will remain with the City of Excelsior. The District shall pay the City of Excelsior a fair market rent for the space used for the €Fire sStation pursuant to a lease fat -through at least June 30� tks of this Agreemetit, 2003. This rent shall be included in the budget of the District, and all Member Cities will contribute to it in their funding allocations. Any and all leasehold • improvements to the existing building and land for the Fire Station shall remain the property of the City of Excelsior, and no compensation shall be paid to the District for such leasehold improvements when and if the District vacates the existing Fire Station. 4.4 Transfer of Excelsior Fire Department Funds. The, funds remaining in the City of Excelsior Fire Department Funds (specifically, fund numbers 230.31; 233735, and.240) on December 31, 2000 shall be..transferred to the"District on January 1, 200 L 4.45 New Land and Building(s). For any expansions that may occur at the existing fire station site, the land shall be under the ownership of the City of Excelsior. All new buildings and lands may be owned and, to the extent permitted by law, financed by the District. The District may lease buildings and lands, including those that may be owned by any of the Member Cities. 4.§6 Purchase of Equipment. Purchase of equipment by the District must be done in accordance with a capital equipment plan, which must include all physical items whose costs are anticipated to exceed $10,000, approved by the Board. To the extent allowed by law, the District may use debt instruments to make such purchases. 4.67 Use of Equipment Outside District Boundaries. All equipment controlled by the District shall be used when needed within the boundaries of the District for the benefit of • HC26DS4/ 47061 26504960.v5 4/2/2000 -7- .4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE Member Cities. It should not be used outside the District, except as follows: a.) In areas outside the District, where fire emergencies may endanger life or property within the District. b.) When use is covered by contracts duly entered into by the District for fire protection or other services outside the District. C.) When necessary to fulfill mutual aid agreements duly entered into by the Board. d.) In case of major emergency or disaster, when authorized by the Fire Chief/District Administrator, or in his/her absence, the officer in charge. Such use shall be reported as soon as possible to the Fire Chief/District Administrator. e.) When specifically authorized by the Board. Section 5 Personnel and Administration • 5.1 Fire Chief/District Administrator. The Fire Chief/District Administrator shall be responsible to the Board for the efficient and economical operation of the District,; the hiring, termination, supervision, discipline and the direction of District personnel;; the establishment of rules of conduct for those personnel;; and carrying out the policies and procedures adopted by the Board. The Fire Chief/District Administrator is appointed by the Board and serves at the pleasure of the Board. The Fire Chief/District Administrator is a full time employee of the District and may enter into an employment contract with the Board. The Fire Chief/District Administrator shall be chosen by the Board solely on the basis of training, experience, administrative, and other qualifications. The Fire Chief/District Administrator shall be appointed for an indefinite period of time and may be removed by the Board at any time. The Fire Chief/District Administrator need not be a `member' of the Excelsior Fire District. Should the Board determine that there should exist separate Fire Chief and District Administrator positions, only the District Administrator position shall be the full- time paid position. T tfttlf the .District hasnot selected a.Fire Chief/District Administrator, the individual serving as Fire Chief of the Excelsior Fire Department at the time of Ll..- ,. this won December 31, 2000 shall serve as the District's Interim Fire Chief until such time as the Board selects a Fire Chief/District Administrator. • HC26DS4/ 4706/ 26504960.v5 4/2/2000 -8- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE 5.2 Fire Marshal. The District may have a position of Fire Marshal, who shall be appointed by the Fire Chief/District Administrator solely on the basis of training, experience, and administrative, and other qualifications. The Fire Marshal's responsibilities will be to enforce the Uniform Fire Code and perform other duties that may be assigned by the Fire Chief/District Administrator. The Fire Marshal need not be a `member' of the Excelsior Fire District. Fire Marshal responsibilities may be performed by a contractor who is not an employee of the District; however, the Fire Marshal under the employ of the City of Excelsior at tite +:_...,. a f- esfablishtftettt of the on December 31, 2000 shall automatically be appointed as the District's first Fire Marshal with continuation of his/her status as a regular employee including continuation of salary, benefits, accrued leave, and other customary issues of employment. The first Fire Marshal and all subsequent persons filling that position shall serve at the pleasure of the Fire Chief/District Administrator. 5.3 District Positions. The Board may, from time to time, establish, eliminate or reconstitute other employee positions as it deems to be appropriate. 5.4 Training. The District shall at all times be in compliance with such equipment, personnel and training standards as may be required by the laws of the State of Minnesota and • the Federal Government. 5.5 Employees. On this gJanuary 1, 2001-- the personnel of the Excelsior Fire Department become the employees of the District. TIf it has not done so.prior to January 1�"2004, the District must promptly thereafter adopt rules and regulations governing the operation, management, departmental structure, personnel administration and other similar matters related to the District and its personnel and operation. Until such rules and regulations have been adopted, the rules, regulations and ordinances of the Member City where the personnel were previously employed apply to the personnel of the District. • The District shall hold the Member Cities harmless and shall defend and indemnify the Member Cities for any claims, suits, demands or causes of action for any damages or injuries asserted against the Member Cities based on allegations of wrongful, tortious or illegal conduct on the part of the personnel of the Excelsior Fire Department. 5.6 Compensation of Employees. The compensation of the employees of the District shall be set by the Board. 5.7 Membership in Firefighters' Relief Association. Paid on -call employees of the District shall be eligible for membership in the Excelsior Firefighters' Relief Association. Other HC26DS4/ 4706/ 26504960.v5 4/2/2000 -9- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE employees are members of the appropriate public employees' retirement fund, if eligible. 5.8 Continuation of Prior Policies, Plans, and Procedures. All Excelsior Fire Department policies, plans, procedures, and by-laws not superseded by this Agreement, in place at `1te tittle of t eff et -., ate oft,_:. ^ ._-.eem on January 1, 2001, shall remain in effect until changed by the Board. The terms and provisions of this Agreement shall supersede any conflicting Excelsior Fire Department policies, plans, procedures, and by-laws in place at the time of the effective date of this Agreement. Section 6 Uniform Fire Codes 6.1 Adoption of Uniform Fire Code. All Member Cities agree to adopt the most current Uniform Fire Code including Appendix E (requiring building sprinkler systems) and authorize the District to enforce said Uniform Fire Code in their cities within ninety (90) days of execution of this Agreement. Any city not so adopting shall be considered in default of this Agreement as defined in section 2.10 unless said City agrees to indemnify and hold all other cities and the District harmless with regard to any possible circumstance or consequence. All Member Cities further agree that they will approve amendments to their City Codes of Ordinances adopting any updates or revisions to the Uniform Fire Code within sixty (60) days of receiving notice from the District that the Uniform Fire Code has been amended. Section 7 Funding 7.1 Member Contributions. Each city shall contribute an allocated share ("Member Contribution") of the total operating budget (capital and operating expenses) to the District as established by the Board. The share allocated to each Member City shall be based upon that Member City's percentage of the: 1. total tax capacity for the District; 2. assessor's estimated market value for property within the District; 3. population of the District based upon the most recent Metropolitan Council estimates of population within each Member City; 4. total number of tax parcels within the District; and 5. total number of calls made by the District over the previous three (3) years except that the calls made to 255 Mill Street in Excelsior do not count for purposes of this formula. 0 HC26DS4/ 4706/ 26504960.v5 4/2/2000 -10- •4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE Initially, the allocations shall be made by adding each of the percentages identified above and dividing by five. Over time, the allocations will transition to a purely tax capacity based formula on the following schedule: Tax Capacity Other 4 Factors* Weight in Formula Weijzht in Formula 2001 20% 80% 2002 20% 80% 2003 30% 70% 2004 40% 60% 2005 50% 50% 2006 60% 40% 2007 70% 30% 2008 80% 20% 2009 90% 10% 2010 100% 0% *Each of the four factors would be equally weighted within their collective • percentage of the formula. is 7.2 (Quarterly Pam t. The District shall bill each of the Member Cities on a quarterly basis at least thirty (30) days before payments are due. Beginning January 1., 2001, Member Cities shall forward their contributions to the District on a- quarterly basis, with such contributions being due and payable no later than: First Quarter: February 1 Second Quarter: May 1 Third Quarter: August 1 Fourth Quarter: November 1 In the event that a Member City fails to pay any contribution required hereunder on the date due, such Member City agrees to pay a late charge of one-half percent (0.5 %) of the delinquent amount to defray the costs of the District incident to collecting such late payment. Member Cities further agree to pay additional penalties of one-half percent (0.5 %) per day thereafter until payment is made. This provision shall not be deemed to excuse a late payment or be deemed a waiver of any other rights the District may have. HC26DS4/ 4706/ 26504960.v5 4/2/2000 -11- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE Section 8 Budget 8.1 Approval of Capital Improvement Program/Finance Plan aAfter approval of the District's iititia4 annual Operating Budget covering the calendar'year 2001, the Member City councils shall approve a Capital Improvement Program/Finance Plan by an affirmative vote of €era two-thirds majority of the €rye -Member City councils. Any proposed amendment to the Capital Improvement Program/Finance Plan shall be approved by an affirmative vote of €eufa two4hirds majority of the €Member City councils no later than April 15. The vote on the' Capital Improvement Program/Finance Plan or any amendment thereto shall be binding upon all Member Cities. 8.2 Approval of District Operating Budget. The annual District Operating Budget, which shall include any outlay necessitated by the Capital Improvement Program/Finance Plan, must be approved by an affirmative vote of the majority of Member City councils. The vote on the annual District Operating Budget shall be binding upon all Member Cities. 8.3 Budget Process and Schedule. The annual District Operating Budget shall consist of the entire cost of operation of the District including the costs incurred by the District in financing the special fund of the Firefighters' Relief Association, which shall be determined pursuant to the • provisions of Minnesota Statute Section 69.774. TExcept for the annual District Operating Budget for the calendar year.2001;the District shall submit a proposed budget to the Member Cities through their Operating Committee members by June 15. The Member City councils shall vote on the proposed budget by September 1. For, the annual District Operating Budget for -the calendar year" 2001, the District shall submit a proposed budget to the.Member.. Cities'through their Operating Committee members by August" 1, 2000. The Member City councils shall vote on the`caleridar yedf 2001proposed budget by September 1., 2000. 8.4 Base Budget. If the Member Cities are unable to agree on the proposed budget, the amount of the previous year's budget will be increased by the lesser of the.following: a.) The increase in the July Minneapolis/St. Paul Consumer Price Index for All Urban Consumers (CPI-U) over the previous 12-month period; or b.) The percentage increase in the most restrictive statutory levy limit applicable to the budget year placed on any of the Member Cities over the levy limit for that Member City for the prior year. c.) In the event that (a) or (b) decreases, the operating budget shall remain the same. HC26DS4/ 4706/ 26504960.v5 4/2/2000 -12- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE If the Member Cities are, unable to agree on the proposed budget for,calerfdar'year 2001, the Excelsior Fire Department budget for calendar year 2000 shall be increased by the lesser of the items a c ,above; 8.5 Budget Reports. TBeginning January'l, 2001, the District agrees to submit to each of the Member Cities through its Operating Committee member a quarterly budget report. Furthermore, the District agrees to submit to each of the Member Cities through their Operating Committee members a copy of the District's annual financial report no later than June 15 of each year. Section 9 Dispute Resolution 9.1 Dispute Resolution Process. When any Member City believes that there is a misrepresentation or a violation of the specific terms and conditions of this Agreement, that Member City may initiate the dispute resolution process by submitting to the District and each Member City a written statement outlining the dispute or disagreement. This written statement of dispute shall be forwarded by the complaining Member City to the Board at the Board's nest scheduled meeting. The Board will then have a three (3) month period to resolve the dispute as to interpretation or application of the terms of this Agreement. If the dispute is not resolved within the three (3) month period, the dispute shall be forwarded to an appropriate mediation service. The Board may independently call for dispute resolution of any issue, by majority vote of its Voting Members. 9.2 Judicial Relief. If the municipalities cannot mutually agree to a resolution through the mediation process as described in Section 9.1 within ninety (90) days after the initiation of the mediation process, a majority vote of Member Cities shall initiate the submission of the issue to arbitration pursuant to the Uniform Arbitration Act. Section 10 Withdrawal 10.1 Notice. Notice of intent to withdraw from participation in the District may be given only in March of odd -numbered years, with a minimum of 33 months' notice of intent to withdraw. 10.2 Continuing Obligations After Withdrawal. The withdrawing Member City shall pay an amount equal to 500% of the amount allocated to it during the year of its notice of intent to • HC26DS4/ 4706/ 26504960.v5 4/2/2000 -1 J - • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE withdraw. The withdrawing Member City may make this payment during the five years succeeding its leaving the District, but in no year shall the amount paid be less than one -fifth of the 500% amount. 10.3 Vesting. Any party withdrawing from the Agreement shall have no vested rights or ownership in any of the property or assets of the District. 1.0.4 Not Applicable if Dissolved. This Section shall not apply, if the District has been dissolved pursuant to Section 11 of this Agreement , Section 11 Duration and Dissolution of District 11.1 Duration. Unless dissolved pursuant to this Agreement, the duration of the District shall be perpetual. 11.2 Dissolution. The District shall be dissolved upon b heuffirtnative vote of t4a.two-thirds majority of the MemberGitie�City councils. Dissolution shall occur at the end of the second full calendar year after the date of the agreement to dissolve, unless this joint • powers entity is reestablished as a special unit of government. Section 12 Distribution of Equipment Upon Dissolution 12.1 Distribution. Upon dissolution, the assets of the District shall be liquidated according to State law . All cash from the liquidation of assets shall be distributed to the vested Member Cities based upon their share in the funding allocation in effect on the date of the agreement to dissolve. Section 13 Counterparts 13.1 This Agreement may be executed in several counterparts and all so executed shall constitute one and the same agreement and instrument, binding on all of the parties hereto. Section 14 Additional Members 14.1 Process. A municipality shall be added to the District only upon receiving the approval • HC26DS4/ 4706/ 26504960.v5 4/2/2000 -14- 4/3/00 DRAFT -- INCORPORATING . 3/28/00 REVISIONS BY TRANSITION COMMITTEE of each existing Member City. 14.2 Equipment. Municipalities added to this agreement shall not be compensated for equipment donated to the District. 14.3 Budget. The budget as established in Section 8 of this Agreement may be adjusted to reflect the addition of member(s) to the District should such member(s) be added. 14.4 Vesting. A new member must be party to this agreement ten (10) years in order to have a vested interest in the assets of the District. 14.5 Adjustment of Membership. If any Member City/Cities consolidate with another Member City/Cities (i.e., merge to form a single new municipal corporation) the consolidated municipal corporation shall automatically become a single Member City party to this Agreement. Section 15 Amendment of Agreement 15.1 Required Approval. This Agreement may be amended by identical resolutions adopted • by the city council of every Member City. Such resolutions must be filed together with the Board. 15.2 Sub mittal/Consideration/Action Process. The Board or any Member City may propose amendments to this Agreement. Such amendments shall be in the form of a Board or city council resolution, and shall clearly identify the proposed amendment and the reason(s) for the amendment. Any such proposed amendment shall be presented to the Board. The Board shall review the proposed amendment and issue a report on it to the Member Cities within ninety (90) days of proposal of the amendment. Member Cities shall have ninety (90) days after the Board issues its report in which to adopt city council resolutions as identified in Section 15.1. Section 16 Allocation of Resources The parties to this Agreement recognize the possibility that occasions will arise on which demand for the services outlined in this Agreement will exceed the resources available for provision of such services. In such circumstances, District officials shall use their best judgment to prioritize the delivery of services. The parties hereby agree that District shall have complete and definitive discretion in prioritizing the delivery of services pursuant to this Agreement. 0 HC26DS4/ 4706/ 26504960.0 4/2/2000 -15- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE • • Section 17 Effective Date -TExceptas otherwise provided herein, this Agreement is effective on the date f the 4ay ott whielt1u1y' 1, 2000 provided that executed copies of this Agreement, accompanied by a resolution of the city council of each Member City authorizing approval of this Agreement, are filed with the city clerk of the City of Excelsior. Section 18 Notices Any notice required or permitted to be given under this Agreement shall be given in writing, and shall be sent by certified mail to the registered address of the District. Section 19 Choice of Law The provisions of this Agreement shall be construed in accordance with the laws of the State of Minnesota. Section 20 Headings and Captions The headings and captions of this paragraphs and Sections of this Agreement are included for convenience or reference only and shall not constitute a part hereof. Section 21 Entire Agreement This Agreement contains the entire understanding between the Member Cities and the District concerning the subject matter hereof, and the provisions applicable thereto cannot be amended, altered, enlarged, supplemented, abridged, modified, extended, or waived except if done in accordance with the provisions of Section 15 of this Agreement. Section 22 Limitation of Liability - District 22.1 The Member Cities shall hold the District harmless and will defend and indemnify the District for any claims, suits, demands or causes of action for any damages or injuries based on HC26DS4/ 4706/ 26504960.v5 4/2/2000 =91 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE allegations of negligence or omissions by employees, officers, or agents of the Member Cities. 22.2 The District shall hold the Member Cities harmless and will defend and indemnify the Member Cities for any claims, suits, demands or causes of action for any damages or injuries based on allegations of negligence or omissions by employees, officers, or agents of the District. The District's duty to indemnify will be limited to its applicable insurance coverage. Section 23 Limitation of Liability - Member Cities The District shall hold the Member Cities harmless, individually and collectively, and will defend and indemnify the Member Cities for any claims, suits, demands or causes of action for any damages or injuries, arising prior to the establishment of the District, based on allegations of negligence or omissions by employees, officers, or agents of any of the Member Cities arising out of the provision of fire protection services (or the failure to provide such services) including, but not limited to, fire prevention, fire fighting, and rescue and medical response services. Section 24 Effeetive Date �. .e -Distriet shall eommeneeoperations .. .. HC26DS4/ 4706/ 26504960.v5 4/2/2000 -17- • 4/3/00 DRAFT -- INCORPORATING 3/28/00 REVISIONS BY TRANSITION COMMITTEE IN WITNESS WHEREOF, the undersigned governmental units have caused this Agreement to be executed by their duly authorized officers attd 4eli"v ere Ott its behalf Llf f t CITY OF"DEEPHAVEN CITY OF GREENWOOD CITY OF TONKA BAY By. Its` Date-- , 2000 HC26DS4/ 4706/ 26504960.v5 4/2/2000 -18- CITY OF EXCELSIOR CITY, OF SH"OREWOOD