HomeMy WebLinkAboutOrdinance 4297 FAYETTEVIALE
THE CITY OF FAYETTEVILLE, ARKANSAS
To: Dan Coody, Mayor
Fayetteville City Council
From: Dennis Ledbetter, Interim Fire Chief N 1FN
Date: February 20, 2001 W
Subject: Renewal of Rural Fire Contracts
Many citizens outside the city limits of Fayetteville, within a two mile radius, contract with the City
for fire suppression service in order to get an insurance premium advantage on their properties.
These contracts are designed to expire on May 31 of each year so that they can be renewed at or
about the same time.
Every other year, rates are recalculated to reflect increased fire protection costs incurred within the
City. This year such a rate revision is due.
A standard formula is used to determine the amount to be charged for rural contracts for the
succeeding two years. For 2001 -2002 and 2002-2003, the formula yields a cost of $228.00 per
"Association" property and $456.00 per "Individual" property. An Association exists when three or
more owners of contiguous properties all desire to have contracts. Individual contracts are required
for individual (or two adjacent) properties. A discount of$40.00 is allowed for each type of contract
where a similar agreement exists with the nearest rural volunteer fire department.
The ordinance for renewing the contracts and establishing the new rates is scheduled to be
considered by the Council at the March 20, 2001 meeting. We seek your approval of this ordinance
so that we can continue this service for two more years.
If you have any questions concerning this project or desire any additional information, please give
me a call at extension 365 or 575-8365 . Thank you.
113 WEST MOUNTAIN 72701 501 521-7700
FAX 501 575-8257
FA TTEVILF
THE CITY Of FAYETTEVIEEE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To : John Maguire , Administrative Services �Diirector
From : Marsha Farthing , Accounting Manager �llA
Date : February 20 , 2001 U
Subject : Renewal of Rural Fire Contracts
Attached is an agenda item request to establish annual rates for
rural fire contracts for the two year period ending May 31 , 2003 ,
in the amounts of $ 228 per member for association contracts and
$ 456 for individual contracts . The revenue from these contracts is
estimated to be $ 66 , 000 per year .
The computations are based on the City ' s 2001 Budget for Fire
Department expenditures and for property tax and state insurance
turnback revenues credited to the Fire Pension Fund . The estimated
depreciation is a calculation of annual depreciation on the fixed
assets of the Fire Department as of December 31 , 2000 . The cost
allocation amounts were obtained from the Budget Department ' s Cost
Allocation Plan used for the 2000 Budget .
The revenue derived from rural fire contracts for fiscal year 2000
was $ 64 , 014 . Currently , the City has contracts with eleven ( 11 )
individual households and with thirty- nine ( 39 ) associations
representing three hundred twenty ( 320 ) households .
The rates for contract years 1999 - 2001 were $ 220 per member for
association contracts and $ 440 for individual contracts . A
discount of $ 40 was allowed for both types of contract where a
similar agreement exists with a rural fire department . The rates
for contract years 1997 - 99 were $ 197 per member for an association
contract and $ 394 for an individual contract with a $ 40 discount
allowed where a similar agreement existed with a rural fire
department .
City of Fayetteville
Proposed Rural Fire Contract Fees
2002 and 2003
Estimated Annual Cost of Fire Protection for the City of Fayetteville:
PROPO
Fire Department Budget - 2001 * 4,499,075 RURAL
eoNr.
Estimated Contributions to Fire Pension Through 219,519
Property Taxes - 2001
Estimated Contributions to Fire Pension Through 144,291
State Insurance Refund - 2001
Estimated Annual Depreciation 357,413
2001 Cost Allocation - less equipment use 308,482
Total Estimated Annual Cost 5,528,780
Proposed Fees for Rural Fire Contracts:
Estimated Annual Cost $5,528,780/24,759** 223
Administrative Charges 5
Proposed Annual Fee per Association Member 228
Proposed Annual Fee per Individual Contract 456
(Twice Association Member Fee)
*Excludes fixed assets
**Total City of Fayetteville utility
customers as of December, 2000 (excluding irrigation)
Sample - Association Contract
C O N T R A C T
This CONTRACT executed this day of 20 by
and between the City of Fayetteville , Arkansas , hereinafter called
the " City " and the undersigned representative of owners of real
property located within two ( 2 ) miles of the Fayetteville corporate
limits , hereinafter called the " Property Owners " .
WHEREAS , § 33 . 046 of the Fayetteville Code of Ordinances ,�*#M
provides for an " association " contract which is defined as a R SOC
contract covering not less than three contiguous properties , and COA1
WHEREAS , the City staffs and equips an organized fire
department , and
WHEREAS , the Property Owners do not have fire suppression
service available ; and
WHEREAS , the Property Owners desire to contract with the City
for the Fayetteville Fire Department to combat fires which may
occur on the property described below ; and
WHEREAS , under Ark . Code Ann . § 14 - 53 - 102 ( 1987 ) and § 33 . 046 of
the Fayetteville Code of Ordinances , fire fighting machinery and
equipment , with the necessary fire personnel to operate the same ,
may be used to combat fires beyond the corporate limits ; and
WHEREAS , the purpose of this agreement is to set forth the
terms and conditions , consistent with § 33 . 046 of the Fayetteville
Code of Ordinances , under which the Fayetteville Fire Department
will combat fire on the property described below ,
NOW , THEREFORE , in consideration of the mutual covenants
contained herein , the parties hereby agree as follows :
1 . During the term of this agreement , the City shall provide
fire suppression service to and shall combat fires occurring on the
real property , at the addresses listed in Exhibit " A " attached
hereto and made a part hereof , subject to the conditions set out
herein .
2 . To defray costs incurred by the City in providing fire
suppression service to the aforesaid property , the Property Owners
shall pay to the City in advance an annual " fire suppression fee "
equivalent to $ 228 per household . If the Property Owners can show
proof of membership in a rural fire department , the fee shall be
$ 188 per household .
3 . The term of this contract shall commence upon the
execution date hereof and shall expire May 31 , 2002 ; provided this
Contract shall not be effective until receipt by the City of the
" fire suppression fee " prescribed herein . Prior to the receipt of
said fee , this Contract shall be of no force and effect and the
City shall be under no obligation to provide fire suppression
service to or combat any fire in the aforesaid area . The Property
Owners ' representative shall collect the required fees from all
property owners , remit the fees to the City of Fayetteville
Accounting Department and execute the contract on behalf of the
Property Owners .
4 . During the term of this Contract , the City shall provide
fire fighting machinery and equipment , with the necessary fire
personnel to operate the same , to combat fires occurring on the
aforesaid property ; provided , the City shall be under no obligation
to respond to any fire located in said area if the Fayetteville
City Mayor or the Fayetteville Fire Chief determines that such
response will substantially impair the ability of the Fayetteville
Fire Department to provide adequate fire protection service to
Fayetteville or to adequately combat fire or fires occurring in
Fayetteville . In the event such a determination is made , neither
the City nor any city official or employee shall be liable for any
damages or loss which occurs from any fire on the aforesaid
property .
5 . Neither the City of Fayetteville nor any Fayetteville
official or Fire Department official or employee involved in
combating a fire on the aforesaid property shall be liable for any
damages or loss that occurs when the Fayetteville Fire Department
is combating a fire located on said property .
6 . All members of the Fayetteville Fire Department engaged in
fighting a fire located on the aforesaid property shall be
considered to be acting within their line of duty and in discharge
thereof and shall not lose or forfeit any right or benefit in rank ,
pay , disability or retirement payments or benefits .
7 . The City may terminate this agreement by giving thirty
( 30 ) days written Notice of Termination to the Property Owners at
the following mailing address :
Association Name
Property Owners ' Representative
Mailing Address of Representative
In the event the City terminates this agreement , the City
shall refund the unused standby fire suppression fee on a pro - rata
basis to the Property Owners . The amount of unused standby fire
suppression fees shall be computed as follows :
Total Fire Number of days Total Fire Amount
Suppression Fee - Contract in effect X Suppression Fee = of
Paid in Advance 365 Days Paid in Advance Refund
8 . The Property Owners may terminate this agreement by giving
a written notice of termination , signed by the Property Owners to
the Mayor of the City of Fayetteville , 113 W . Mountain ,
Fayetteville , Arkansas , 72701 . In the event a Property Owner
terminates this agreement , no unused portion of the fee will be
refunded by the City , but the unused portion of the fee may be
transferred to a subsequent occupant of the property upon approval
by the Fire Chief or his / her designee .
9 . Any notice of termination shall be deemed given on the
date the notice is deposited in the United States mail , as
evidenced by the postmark thereon , provided the correct postage is
paid , and the notice is addressed as provided herein .
10 . The Property Owners may extend the term of this Contract
for an additional term of one ( 1 ) year , to May 31 , 2003 , in
accordance with the following procedure : During the first year of
the contract , at least thirty ( 30 ) days prior to the termination of
this Contract , the Fayetteville Accounting Department shall mail to
the Property Owners ' representative a notice specifying the amount
of the fire suppression fee which the City will charge for the next
year . If the Property Owners desire to extend the term of this
Contract , the Property Owners ' representative shall collect the
fees from all property owners and remit the fees to the City of
Fayetteville Accounting Department prior to June 1 , 2002 . Upon
payment of the required fees , this contract shall be extended to
May 31 , 2003 . The property Owners hereby grant the person
designated in paragraph 7 of this Contract limited power of
attorney for the purpose of executing and renewing this Contract in
accordance with the procedure prescribed herein .
11 . In the event this Contract is executed after June 1 , 2001 ,
the fire suppression fee payable under paragraph 2 shall be reduced
for the original contract term in accordance with the following
formula :
Number of elapsed Amount of Amount of
days after June 1 X Fire Suppression = Reduction in
365 Fee Suppression Fee
12 . Any modification of this Contract must be in writing and
must be authorized by the Mayor of the City of Fayetteville and the
undersigned Property Owner .
IN WITNESS WHEREOF , this Contract is executed on the date
first above written .
CITY OF FAYETTEVILLE , ARKANSAS
By :
Mayor
ATTEST
By :
City Clerk
Property Owner
2001 - 2002 fee received Date Amount
Renewal fee received Date Amount
Sample - Individual Contract
C O N T R A C T
This CONTRACT executed this day of 20 by
and between the City of Fayetteville , Arkansas , hereinafter called
the " City " and the undersigned owner of real property located
within two ( 2 ) miles of the Fayetteville corporate limits ,
hereinafter called the " Property Owner " .
WHEREAS , the City staffs and equips an organized fire
department , and
WHEREAS , the Property Owner does not have fire suppression
service available ; and SA SR
7.
CON7
WHEREAS , the Property Owner desires to contract with the City
for the Fayetteville Fire Department to combat fires which may
occur on the property described below ; and
WHEREAS , under Ark . Code Ann . § 14 - 53 - 102 ( 1987 ) and § 33 . 046
of the Fayetteville Code of Ordinances , fire fighting machinery and
equipment , with the necessary fire personnel to operate the same ,
may be used to combat fires beyond the corporate limits ; and
WHEREAS , the purpose of this agreement is to set forth the
terms and conditions , consistent with § 33 . 046 of the Fayetteville
Code of Ordinances , under which the Fayetteville Fire Department
will combat fire on the property described below ,
NOW , THEREFORE , in consideration of the mutual covenants
contained herein , the parties hereby agree as follows :
1 . During the term of this agreement , the City shall provide
fire suppression service to and shall combat fires occurring on the
real property at the Property Owner ' s address listed in paragraph
7 , subject to the conditions set out herein .
2 . To defray costs incurred by the City in providing fire
suppression service to the aforesaid property , the Property Owner
shall pay to the City in advance an annual " fire suppression fee "
equivalent to $ 456 . If the Property Owner can show proof of
membership in a rural fire department , the fee shall be $ 416 .
3 . The term of this contract shall commence upon the
execution date hereof and shall expire May 31 , 2002 ; provided this
Contract shall not be effective until receipt by the City of the
" fire suppression fee " prescribed herein . Prior to the receipt of
said fee , this Contract shall be of no force and effect and the
City shall be under no obligation to provide fire suppression
service to or combat any fire in the aforesaid area .
4 . During the term of this Contract , the City shall provide
fire fighting machinery and equipment , with the necessary fire
personnel to operate the same , to combat fires occurring on the
aforesaid property ; provided , the City shall be under no obligation
to respond to any fire located in said area if the Fayetteville
City Mayor or the Fayetteville Fire Chief determines that such
response will substantially impair the ability of the Fayetteville
Fire Department to provide adequate fire protection service to
Fayetteville or to adequately combat fire or fires occurring in
Fayetteville . In the event such a determination is made , neither
the City nor any city official or employee shall be liable for any
damages or loss which occurs from any fire on the aforesaid
property .
5 . Neither the City of Fayetteville nor any Fayetteville
official or Fire Department official or employee involved in
combating a fire on the aforesaid property shall be liable for any
damages or loss that occurs when the Fayetteville Fire Department
is combating a fire located on said property .
6 . All members of the Fayetteville Fire Department engaged in
fighting a fire located on the aforesaid property shall be
considered to be acting within their line of duty and in discharge
thereof and shall not lose or forfeit any right or benefit in rank ,
pay , disability or retirement payments or benefits .
7 . The City may terminate this agreement by giving thirty
( 30 ) days written Notice of Termination to the Property Owner at
the following mailing address :
Property Owner ' s Name
Address
Mailing Address
In the event the City terminates this agreement , the City
shall refund the unused standby fire suppression fee on a pro - rata
basis to the Property Owner . The amount of unused standby fire
suppression fees shall be computed as follows :
Total Fire Number of days Total Fire Amount
Suppression Fee - Contract in effect X Suppression Fee = of
Paid in Advance 365 Days Paid in Advance Refund
8 . The Property Owner may terminate this agreement by giving
a written notice of termination , signed by the Property Owner to
the Mayor of the City of Fayetteville , 113 W . Mountain ,
Fayetteville , Arkansas , 72701 . In the event the Property Owner
terminates this agreement , no unused portion of the fee will be
refunded by the City , but the unused portion of the fee may be
transferred to a subsequent occupant of the property upon approval
by the Fire Chief or his / her designee .
9 . Any notice of termination shall be deemed given on the
date the notice is deposited in the United States mail , as
evidenced by the postmark thereon , provided the correct postage is
paid , and the notice is addressed as provided herein .
10 . The Property Owner may extend the term of this Contract
for an additional term of one ( 1 ) year , to May 31 , 2003 , in
accordance with the following procedure : During the first year of
the Contract , at least thirty ( 30 ) days prior to the termination
of this Contract , the Fayetteville Accounting Department shall mail
to the Property Owner a notice specifying the amount of the fire
suppression fee which the City will charge for the next year . If
the Property Owner desires to extend the term of this Contract , the
Property Owner shall remit the required fee to the City of
Fayetteville Accounting Department prior to June 1 , 2002 . Upon
payment of the required fee , this Contract shall be extended to May
31 , 2003 .
11 . In the event this Contract is executed after June 1 , 2001 ,
the fire suppression fee payable under paragraph 2 shall be reduced
for the original contract term in accordance with the following
formula :
Number of elapsed Amount of Amount of
days after June 1 X Fire Suppression = Reduction in
365 Fee Suppression Fee
12 . In the event that a Property Owner joins an association ,
a contract covering not less than three contiguous properties ,
during the Contract period , the fee will be reduced to an
association rate in the manner described in paragraph eleven . The
rate difference will be refunded to the Property Owner .
13 . Any modification of this Contract must be in writing and
must be authorized by the Mayor of the City of Fayetteville and the
undersigned Property Owner .
IN WITNESS WHEREOF , this Contract is executed on the date
first above written .
CITY OF FAYETTEVILLE , ARKANSAS
By :
Mayor
ATTEST
By :
City Clerk
STAFF REVIEW FORM
x AGENDA REQUEST
x CONTRACT REVIEW
GRANT REVIEW
ORDINANCE REVIEW
For the Fayetteville City Council meeting of QlVOW C200/
FROM :
Marsha Farthing Accounting Admin . Services
Name Division Department
ArTTON RRQTTTRRn
Approval of an ordinance amending Sec . 33 . 046 , Code of Fayetteville , to establish
annual fees for Rural Fire Contracts for the two year period of 6 / 01 / 01 - 5 / 31 / 03 .
MAT TO CTTV ,
None
Cost of this Request Category/ Project Budget Category/ Project Name
Account Number Funds Used To Date Program Name
$ 7RFA
QEJZt
Project Number Remaining Balance Fund OFRTn
BUD T EVIEW : Budgeted Item Budget Adjustment Attached
B dg t Coordinator Administrative Services Director
61
Acco ing na J Da ADA Coordinator Date
Z/ z � a/-
City Attor y Date Internal Auditor Date
Purchasing Officer Date
STAFF RVr0MMF.Nn ATTON '
Staff recommends approval .
aa� oi
Division Head Date Cross Reference
New I
ecto /tat
h haY I Prev Ord/Res # :
J;7tD1r
i e ervices Director Da e
—�Lz ( Orig Contract Date :
M ) or Date
FAYETTE" LLE
THE CITY OF FAYETTEVIEEE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Marsha Farthing, Accounting Manager
From : Heather Woodruff, City Clerk
Date: March 22, 2001
Attached is a copy of the ordinance amending Section 33 .046, to set the fees for rural fire
contracts. The original will be microfilmed and filed with the City Clerk.
cc: Nancy Smith, Internal Audit
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