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HomeMy WebLinkAbout06-5 Resolution No. 06-5 RESOLUTION AUTHORIZING FIRE PROTECTION SERVICE AGREEMENT WITH DSM DESOTECH INC. WHEREAS, DSM Desotech 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 Olufemi Folarin,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 DSM Desotech Inc. for fire protection service, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: January 11, 2006 Adopted: January 11, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk FIRE PROTECTION AGREEMENT WHEREAS, DSM Desotech Inc., a Delaware corporation, 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 at the property commonly known as 1122 St. Charles Street,in Elgin Township, Kane County, Illinois, (hereinafter referred to as the "Subject Property") 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 t'or the Subject 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, the sufficiency of which is hereby acknowledged, it is agreed as follows: 1. That City shall furnish fire protection service to Company for the Subject Property for a period of one(1)year commencing January 1,2006 and terminating on December 31, 2006. 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 at the Subject Property in the same manner as if said property were situated within the corporate limits of the City of Elgin. In addition to such regular fire protection services,City shall furnish ambulance service at the Subject Property as is generally available to residents of City. 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 without penalty to City and without refund of any kind to Company. 2. That in consideration of said fire protection service,Company agrees to pay to City the sum of Thirty-Five Thousand Five Hundred Five Dollars($35,505). Said payment shall be paid no later than January 6, 2006. 3. That any rights of Company arising pursuant to or in connection with 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. 4. That it is agreed and understood that the fire protection services,ambulance services and other services to be provided by the City pursuant to this agreement are intended to be the same services generally available to the general public for properties located within the corporate city limits of the City of Elgin and that no additional legal obligations or duties are intended or shall be construed to have been created by this agreement. It is further understood and agreed that this agreement is not intended nor shall be construed to alter, limit or constitute a waiver of any of the civil immunities afforded the City pursuant to the Local Governmental and Governmental Employees Tort Immunity Act at 745 ILCS 10/1-101 et seq., as amended, or otherwise, it being agreed that all of the civil immunities set forth in such Act, as amended, or otherwise, shall fully apply to any claims asserted or which might be asserted against the City as a result of this agreement or any actions of the parties pursuant to this agreement. IN WITNESS WHEREOF the City Manager and City Clerk have executed this agreement for and on behalf of the City of Elgin and DSM Desotech Inc. have executed this agreement for and on behalf of said Company and each have caused their respective corporate seals to be affixed. Dated: CITY OF ELGIN 13y .,,..�.%J%% City anager Attest: City Clerk DSM DESOTECH INC. B y L^ s President Attest: Sep et4ry J FALegal Dept\Agreement\FireProtection-DSM Desotech.doc 2 g November 23, 2005 SAFE COMMUNITY TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager James R. Nowicki, Fiscal Services Director SUBJECT: Fire Protection Agreements for 2006 PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider Fire Protection Agreements for four properties located outside the city limits. RECOMMENDATION It is recommended that the City Council approve the 2006 Fire Protection agreements for those four properties located outside the City limits. BACKGROUND The City first offered fire protection contracts in 1962 to Illinois Tool Works, Chicago Rawhide, Leewards and McGraw Edison (St. Charles Street). 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 of the Fire Department. Insurance costs, depreciation and pension contributions were added to the formula in 1976 which currently equates to a rate of$2.10 per$100 Equalized Assessed Valuation. 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. The following table highlights the assessed valuations (2004) and fire protection charges for 2005 as well as the recommended charges for 2006. Fire Protection Agreements for 2006 November 23, 2005 Page 2 2004 Assessed 2005 Assessed 2005 2006 Proposed Valuation Valuation Chimes Charges ITW $1,587,658 $1,694,984 $33,341 $35,595 DSM Desotech 1,583,636 1,690,691 33,256 35,505 St. Charles Properties 122,798 131,009 2,579 2,751 Eagles Club (Kane County Forest Preserve) 107,801 107,801 2,264 2,264 Totals $3,401,893 $3,624,485 $71,440 $76,115 The projected 2006 fire protection charges will increase by $4,675 when compared to the actual 2005 totals due to the increase in assessed valuation to $3,624,485 from $3,401,893 and the sale of Eagles Club to the Forest Preserve District of Kane County. The Eagles Club, now owned by the Kane County Forest Preserve, will be charged the same as last year. COMMUNITY GROUPSANTERESTED PERSONS CONTACTED Representatives from the three properties were contacted and notified of the proposed 2006 fire protection agreement charges. FINANCIAL IMPACT Total fire protection charges would equal $76,115 and would finance the 2006 expenditures. Revenue totaling $72,000 was budgeted in the General Fund for 2006 in account number 010-0000-538.00-00. LEGAL IMPACT None ALTERNATIVES 1. Provide fire protection to these three properties. 2. Do not provide fire protection to these three properties. Respectfully submitted for Council consideration. JRN/mlm