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12. Emergency Expenditures <br />When there is a need for emergency major equipment repair or emergency building <br />repair, or other emergency need that will have a substantial negative impact on the <br />operational capabilities and/or safety of the firefighters or of the fire station if not <br />immediately addressed, the emergency expenditures may be authorized by the Long Lake <br />City Administrator and the Long Lake Fire Chief, or their designees. If these costs <br />exceed the approved budget amounts, the Long Lake City Administrator and/or the Fire <br />Chief will, within thirty days of the expenditures, notify the Contracting Cities of the <br />expenditure, including an explanation of the emergency need. Emergency expenditures <br />will be shared according to the cost sharing formula set out in this contract. Any <br />reimbursement of the emergency expenditures through insurance, emergency/disaster <br />assistance funding, or other sources will be credited to the Contract Cities in the same <br />manner as the costs were shared. <br />13. Annual Audit of Actual Costs <br />The Contracting City understands and agrees that it is impossible to project with <br />complete accuracy the actual costs of labor and equipment as well as the service to be <br />required by each Contracting City for the forthcoming contract year and thereby hereby <br />agrees to a yearly audit to adjust the prior year's estimated cost of service as set forth <br />above to the actual costs incurred by the City of Long Lake. On or before April 30th.of <br />each year the City of Long Lake will tabulate the actual cost of the fire department <br />budget for the prior contract year and will submit to the Contracting Cities a summary of <br />the actual costs. The actual costs set forth for the prior contract year may result in either <br />a surplus or deficit with respect to that year's Annual Operating Budget. Any surplus <br />shall be refunded to the contract cities in the same ratio as the cost allocation formula. <br />Any deficit shall be funded by the contract cities in the same ratio as the cost allocation <br />formula. It is expected that expenditures will remain within the Annual Operating <br />Budget amounts and will only exceed such budget amounts in the case of an emergency <br />expenditure as provided in Section 12 or when mutually agreed to by the Contracting <br />Cities as provided in Section 14 of this Agreement. <br />14. Unforecasted Expenditures <br />Notwithstanding any of the above, the Contracting Cities shall have the right to be heard <br />regarding any proposed expenditures which are not identified in the Annual Operating <br />Budget and which exceed $5,000. Notice of such proposed, non -budgeted expenditures <br />shall be given in writing to the Contracting Cities prior to actual expenditures for such <br />items and the Contracting cities shall thereafter have 21 days in which to approve or <br />disapprove the same in writing and if there is no response which disapproves the <br />expenditure, it is agreed that such proposed expenditures may be made and the cost <br />thereof shall be included in the Annual Operating Budget as if ratified originally. <br />C <br />