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HomeMy WebLinkAbout93-225 Resolution No. 93-225 RESOLUTION AUTHORIZING FIRE PROTECTION SERVICE AGREEMENT WITH LEE WARDS CREATIVE CRAFTS, INC. WHEREAS, Lee Wards Creative Crafts, Inc. , a corporation, is the owner of certain property located outside the corporate limits of the City of Elgin; and WHEREAS, said owner has requested the City of Elgin to furnish fire protection services for said property on the terms set forth on the attached agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Larry L. Rice, City Manager, and Dolonna Mecum, City Clerk, be and are hereby respectively authorized and directed to execute an agreement on behalf of the City of Elgin with Lee Wards Creative Crafts, Inc. for fire protection service, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: August 11, 1993 Adopted: August 11, 1993 Vote: Yeas 5 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk FIRE PROTECTION AGREEMENT WHEREAS, Lee Wards Creative Crafts, Inc. hereinafter referred to as "Company" is the owner of certain property located south of the corporate limits of the City of Elgin on Illinois Route 25 in Elgin Township, Kane County, Illinois, which property and improvements located thereon are outside the corporate limits of any municipality; and WHEREAS, Company has requested the City of Elgin, hereinafter referred to as "City" to furnish fire protection service for said property; and WHEREAS, City has agreed to provide said fire protection service on the terms and conditions hereinafter stated. NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and the covenants hereinafter contained, it is agreed as follows : 1 . That City shall furnish fire protection service to Company for a period of one ( 1) year commencing January 1, 1993 and terminating on December 31, 1993 . Fire protection service shall consist of extending to the Company the regular fire fighting facilities of the City in case of a fire upon the Company' s premises in the same manner as if said property were situated within the corporate limits . In addition to the regular fire protection services, City shall furnish ambulance service as is generally available to residents of the City of Elgin. As a condition of the furnishing of fire protection services, Company agrees to permit City to make inspections to determine compliance with the fire code of the City of Elgin and agrees to comply with same. Failure to do so shall constitute grounds for termination of this agreement. 2 . That in consideration of said fire protection service, Company agrees to pay to City the sum of Twenty-One Thousand Four Hundred Dollars ($21,400.00) . Said payment shall be paid no later than September 10, 1993 . 3 . That the right, title and interest of the said Company under this agreement may from time to time be assigned with respect to all of the above described premises or portions thereof . Written notice of such assignment shall be given to City with thirty (30) days . IN WITNESS WHEREOF the City Manager and City Clerk have executed this agreement for and on behalf of the City of Elgin and Lee Wards Creative Crafts, Inc. have executed this agreement for and on behalf of said Company and each have caused their respective corporate seals to be affixed. CITY OF ELGI BY r._4∎. City Ma"N Attest: City Clerk (SEAL) LEE WARDS CREATIVE CRAFTS, INC. By ,./! Its Presi ent 1/ Attest: Secretary (SEAL) Elm n s = 1 X Agenda Item No. July 21, 1993 TO: Mayor and City Council FROM: City Manager SUBJECT: Fire Protection Contracts PURPOSE: The purpose of this memorandum is to review the fire protection charges to five (5) properties located outside the city limits and to seek approval of those contracts. BACKGROUND: The City first offered fire protection contracts in 1962 to Illinois Tool Works, Chicago Rawhide, Leewards (State Street) and McGraw Edison (St. Charles Street) . This charge was in lieu of fees for services when requested, however the fee that was charged did not recover the cost associated elk with providing the service. In 1967, the fire protection contracts established a tax rate based on real estate and personal property assessed valuations. The tax rate only included operating costs and capital expenditures. Insurance costs, depreciation and pension contributions were added to the formula in 1976. The overall goal in establishing the fire protection charges was to make it economically beneficial for each business to annex into the City of Elgin. In the recent past there has been some interest on the part of some of the businesses to annex into the city. The following table highlights the fire protection charges for 1991 and 1992 as well as the recommended charges for 1993. 1992 Assessed % 1991 1992 1993 Valuations Total Charges Charges Totals Leewards $1,018,730 35.0 $23,700 $20,460 $21,400 ITW 1,204,501 41.4 22,150 23,000 25,300 DeSoto 573 ,636 19.7 8,200 8,900 12,050 Hintz Trucking 50,087 1.7 1,360 1,375 1,050 Eagles Club 65,257 2.2 1,290 1,265 1,370 $2,912,211 100.0 $56,700 $55,000 $61,170 The projected 1993 fire protection charges increase by approximately $6,000. This is due in large part to the overall tow increase in assessed valuation to $2,912,211 from $2,630,750. Specifically, Leewards, ITW, and DeSoto realized increases in their assessed valuations of nearly $73 ,000, $86,000, and $133,000 respectively. FINANCIAL IMPACT: Total fire protection charges would equal $61,170 and would finance the 1993 expenditures. RECOMMENDATION: To approve the 1993 Fire Protection charges for those five properties located outside the city limits. Ps. Ci y Manag= r r r