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the Member's authority to acquire new territory, and the Member may contract with another fire <br />service provider to provide fire services for that territory. <br />4.5 Allocation of Resources. The Members recognize the possibility that occasions will <br />arise on which demand for the services outlined in this Agreement will exceed the resources <br />available for the provision of such services. In such circumstances, Department officials shall <br />use their best judgment to prioritize the delivery of services. The Members hereby agree that the <br />Department shall have complete and definitive discretion in prioritizing the delivery of services <br />pursuant to this Agreement. The Department must provide reasonably equitable service to all <br />Members and must meet all contract standards set forth in fire service contracts between the <br />Department and any Contract Cities. <br />SECTION 5 FIRE EQUIPMENT, LAND, BUILDINGS, AND FUNDS <br />5.1 Equipment and Personal Property. <br />a. The Department shall acquire (by gift, devise, purchase or lease) all <br />equipment and personal property necessary for the operation of the <br />Department on terms and conditions as approved by the Board. The <br />Department may not lease equipment or personal property from a Member <br />except as provided in Sections 11 and 14 of this Agreement. <br />b. The purchase of equipment by the Department must be done in accordance <br />with a capital improvement program approved as provided in Section 8.1 of <br />this Agreement. <br />c. The Department may sell its equipment and personal property to a third party <br />upon approval of the Board or to a Member upon unanimous approval of the <br />Board. The proceeds from any sale of Department equipment or personal <br />property must be deposited in a capital fund for the Department. The <br />Department may donate surplus equipment in accordance with Minnesota <br />Statutes, Section 471.3459. <br />d. The Department, with the approval of the Fire Chief, may allow a Member <br />occasional and temporary use of Department apparatus and equipment. Each <br />Member will be required to enter into an equipment use agreement with the <br />Department before being allowed to utilize any apparatus or equipment <br />owned or controlled by the Department. The equipment use agreement shall <br />require that a Member utilizing Department equipment shall indemnify the <br />Department against, and hold the Department harmless from, any claims, <br />damages, liabilities, losses, fees, and costs, including reasonable attorneys' <br />fees, which occur as a result of the Member's use. <br />5.2 Existing Land and Building. The existing parcels of land and buildings that are listed <br />on the attached Exhibit A ("Fire Station Properties") shall, as of the Operative Date, become the <br />initial fire stations for the Department. Ownership of the Fire Station Properties will remain with <br />235703v20 <br />