7.2 Pequot Lakes Fire District Contract

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deemed a breach of this Contract. The judgment of the fire department officer in charge of the particular scene shall be final in all such matters. e. Subject to the foregoing, two or more fire calls received from the city officers or from property owners within the service territory described herein shall be answered in the order of receipt, unless the Fire Chief or other officer in charge of the Fire District at that time otherwise directs. 2. Payments. In consideration for the fire services extended by the Fire District to City under this Contract, City shall compensate the Fire District as follows: a. Annual Payment — Lump Sum. During the term of this Contract, City agrees to make payment to the Fire District in the amount of $102,189.31 for the 2023- 2024 service year (the "Payment Amount"). Such Payment Amount shall be made on or before May 1, 2023. The annual Payment Amount provided above and as annually adjusted is based on the application of the following formula: S=U+TxC 2 C = Cost of fire department operations in dollars. S = Each contracting Party's share of total cost expressed in dollars. T = Building market value of each contracting party expressed as a percent of the sum of the building market value of all contracting parties. U = Use of fire department services in each contracting Party expressed as a percent of the total use of fire department services by all contracting parties. U (Use) + T (Building Market Value) is a method of arriving at the percent of costs that should be charged to each contracting party. To the above formula is added .01 % of the current building market value for Firemen's Relief Association. b. Insurance Proceeds. CIty will pay to the Fire District all proceeds it receives from the State of Minnesota Fire Aid Insurance payments. c. Contribution to Fireman's Relief Association. In addition to the other payments listed in this Contract, City will pay $15,060.16 annually to the Fireman's Relief Association so long as this Contract remains in effect. d. Additional Payments. In addition to the foregoing, City shall also pay the Fire District the following: i. $500.00 for the first hour and $350.00 for each additional hour or fraction thereof spent by the Fire District on any call. 2