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Contract Agreement for Police Services Page 6 EXHIBIT A April 12, 2006 MEMORANDUM OF UNDERSTANDING Re: Contract Agreement for Police Services, effective January 1, 2007 To: Mike Mornson From: Heather Worthington We wish to clarify three separate contract provisions, contained within the revised_ Contract Agreement for Police Services, effective January 1, 2007: 1. Consolidated Dispatch Provision: Falcon Heights will be billed directly by Ramsey County for dispatch costs. The contract amount will be adjusted annually to account for this direct payment to the County, and the contract amount reduced to reflect said payment. 2. Alternate Revenue: Falcon Heights, may, at its discretion, negotiate "payments in lieu of taxes" with tax exempt and non-profit entities within the boundaries of Falcon Heights to recoup service casts. These payments may be invoiced by Falcon Heights, or at the direction of Falcon Heights, by the City of St. Anthony in cases where said nonprofit or tax exempt entity requests or requires such action. Any alternate revenue sources negotiated by Falcon Heights will be utilized exclusively by St. Anthony to offset the overall contract cost. The City of St. Anthony shall not retain fees against these alternate revenue sources, unless extra staff is required and costs are incurred for the event, and adequate documentation is provided to the City of Falcon Heights by the City of St. Anthony. In that case, the funds will then be used to offset any extra costs. 3. Salary Offset: In the event that the police union contract is negotiated at a rate lower than the projected rate of 3.5%, the salary costs of the contract will be adjusted to reflect this lower rate. In the event that the police contract is negotiated at a rate above 3.5%, the amount of the contract will be adjusted to reflect these higher salary costs of the contract. Mike Mornson, City Manager City of St. Anthony Heather Worthington, City Administrator City of Falcon Heights 50