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26 Contract Agreement for Police Services Page 3 V. PAYMENT FOR SERVICES This Agreement will be effective January 1, 2010 and will continue until December 31, 2011. In consideration of the services to be provided under this Agreement, Falcon Heights will pay St. Anthony an annual fee of $578,595 for the year 2010, and an annual fee of $590,167 for the 2011, for the police service under this Agreement. This Agreement will be effective January 1, 2010 and will continue indefinitely unless canceled in accordance with the procedure outlined in Section XX of this Agreement. In consideration of services provided for under this Agreement, St. Anthony and Falcon Heights shall establish the fee for these services by June 15, 2011. VI. METHOD OF PAYMENT St. Anthony will bill Falcon Heights monthly for 1/12 of the annual fee, and Falcon Heights will promptly remit payments to St. Anthony within 30 days after receiving each billing from St. Anthony. VII. LIABILITY St. Anthony will be responsible for all liability incurred as a result of the actions of St. Anthony police officers under this Agreement, and will hold Falcon Heights, its officers and employees harmless for any liability resulting from actions of a St. Anthony employee and shall defend Falcon Heights, its officers and employees, against any claim for damages arising out of St. Anthony's performance of this Agreement; provided, however that if the claim, action or liability is one which is insured by St. Anthony's liability insurer, Falcon Heights will bear the first $5,000.00 of expense for any such claim, action or liability, or expenses relation thereto, including attorneys' fees, to the extent not covered by the insurer because of a deductible amount under the policy (which deductible amount is currently $10,000.00). VIII. ADMINISTRATIVE RESPONSIBILITY The law enforcement and police services rendered to Falcon Heights will be under the sole direction of St. Anthony. The standards of performance, the hiring and discipline of officers assigned, and other matters relating to regulations and policies related to police employment, services and activities, will be within the exclusive control of St. Anthony. The parties hereto expressly affirm the importance of work force diversity and St. Anthony agrees to use reasonable efforts, within applicable departmental budgetary limits, to recruit qualified female and minority police officers. IX. JOINT ADVISORY COMMITTEE Both cities will appoint members to a Joint Advisory Committee. The committee will meet at least once a year to ensure that this Agreement and the services performed pursuant to this Agreement are meeting the expectations of both cities. Any recommendations of the committee will be strictly advisory. X. COMMUNICATIONS, EQUIPMENT AND SUPPLIES St. Anthony will furnish all communication equipment and any necessary supplies required to perform the services, which are to be rendered under this Agreement. XI. COOPERATION AND ASSISTANCE AGREEMENTS Falcon Heights will be included in all Cooperative Agreements entered into by the St. Anthony Police Department with other police services units.