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Fire Protection Service Contract Page 5 <br /> 6.4 The Fire Department agrees to submit to the Cities a quarterly budget report and a <br /> copy of the Fire Department's annual financial report, as prepared by its certified public account- <br /> ant, no later than June 15 of each year. <br /> 6.5 Since the operating expenses of the Fire Department are largely a function of the <br /> number and magnitude of fire calls which cannot be accurately predicted, and since unexpected or <br /> increased expenses can result from emergencies and other unforeseen circumstances causing <br /> expenditures in excess of anticipated and budgeted amounts, it is agreed that if it is determined at <br /> any time by the Fire Department and confirmed by the Cities that budgetary appropriations are or <br /> will not be sufficient to cover such unexpected or increased expenses, the Cities shall pay to the <br /> Fire Department each City's pro rata share (according to 5.1) of the funds necessary to meet the <br /> unexpected expenses. <br /> 6.6 It is agreed-that coritinuity of fire protection services constitutes a top priority for the <br /> allocation of the Cities' financial resources. In the event of any annual revenue shortfall in one or <br /> more of the Cities, it is agreed that the Fire Department operating budget may be reduced on the <br /> same basis as budgets for other services involved in exercise of the safety services of the Cities; <br /> provided that (i) the Fire Department's basic financial needs will be met by the Cities and (ii) the <br /> application of any operating budget reductions will be determined by the Fire Department. <br /> ARTICLE 7 <br /> Term and Renewability <br /> 7.1 This contract shall replace all previous fire protection service contracts between the <br /> respective Cities and the Fire Department. The term of this contract shall be for 10 years from <br /> January 1, 1994 to December 31, 2003. The contract shall be effective upon execution and shall <br /> be automatically renewed for successive 10-year periods on the same terms and conditions <br /> contained herein unless either party gives a six-month written notice to terminate this contract or <br /> renegotiate any portion thereof within the last year of any 10-year increment of this contract. In <br /> the event the term of this contract expires prior to the execution of a subsequent contract and <br /> during the time in which negotiations between the parties are proceeding there shall be a 90-day <br /> grace period commencing on the date of such expiration during which this contract shall continue <br /> in full force and effect. <br /> - 5 - <br />