Resolution No. 5

To Approve Agreement for Fire Protection between
the City of Fairfield and the City of Vedic City

December 14, 2001

The following resolution, duly made and seconded, was unanimously adopted by the City Council at its regular meeting on December 14, 2001:

RESOLVED, that the terms and conditions of the attached Agreement for Fire Protection between the City of Fairfield and the City of Vedic City are hereby approved.


Date   Mayor



THIS AGREEMENT is made this _____ day of December, 2001, by and between the city of Fairfield, a municipal corporation in the State of Iowa, and the City of Vedic City, a municipal corporation of the State of Iowa, in consideration of the undertakings of the parties unto each other.

Fairfield will provide Vedic City, and Vedic City will receive from Fairfield, fire protection for real and personal property of owners of property located within Vedic City, located within Jefferson County, Iowa and fire protection will be furnished and received upon the following terms and conditions:

1. This Agreement for providing fire protection will begin on July 25, 2001 when Vedic City became incorporated and continue through June 30, 2003. The amount due under this agreement will be adjusted effective June 30 of each year for the following year.

2. The fee will be calculated as follows:

The annual fee will be the greater of: (a) Sixteen Thousand and no/100 ($16,000.00) per fiscal year, or (b) an amount equal to the incremental increase in the cost of operating the Fairfield Fire Department caused by the addition of Vedic City to Fairfield Fire Department area of first response.

Due to the difficulty in calculating the exact incremental increase in the operating costs of the fire department due to adding Vedic City to its area of first response responsibility the parties agree to use changes in the gross valuation for real estate property tax assessment purposes, without adjustment for rollbacks, as the measuring tool.

In calculating the change in fire protection costs to be paid by Vedic City, the total gross assessed valuation for tax purposes of Vedic City as of the effective date of this agreement shall be divided by the total gross assessed valuation for tax purposes of the sum of the valuations for Vedic City and the area for which the Fairfield Fire Department provides fire protection as of the effective date of this agreement. The resulting fraction, expressed as a decimal, shall then be multiplied by the City of Fairfield's direct annual costs of provided fire protection, including the fire department’s operating budget, pension and other personnel costs directly associated with fire protection, and actual depreciation of buildings and equipment reasonable and necessary to provide adequate fire protection.

3. The term of this contract will be from the July 25, 2001 when Vedic City became a separate municipal corporation through June 30, 2003. This agreement will be renewed automatically thereafter unless either party notifies the other upon 12 months written notice.

4. Vedic City shall receive as a credit towards amounts due pursuant to this agreement an amount equal to the taxes collected by Center Township and/or Jefferson County for the area that becomes Vedic City and paid or applied to the cost of Fairfield providing fire protection for the period beginning when Vedic City is incorporated and ending when the taxes are paid directly to Vedic City.

5. This service is to be provided in accordance with the City of Fairfield Ordinance #______ and Resolution of the City of Fairfield dated _________________, 2001 that provides in part substantially as follows: (1) that the sole discretion will rest with the fire chief as to the people and equipment that will answer each alarm, provided that protection will be reasonable considering available people and equipment of city fire department; and (2) sending of people and equipment to protect property of Vedic City owners will be subordinate to requests for, and rendering of, fire protection within the Fairfield city limits.

6. Fairfield will not be liable for loss or damage to property caused by or resulting from alleged negligence arising from or caused by negligence of Fairfield, its officers or employees in carrying out this contract.

7. Indemnification. Vedic City agrees to indemnify and hold harmless the City of Fairfield from any claim or suit arising out of the actions of the Fairfield Fire Department when providing fire fighters services in Vedic City.

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