06-5 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
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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