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Item 5.1 Fire Marshal Contract Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Public Safety Fire Chief McCoy June 8, 2026 PRESENTER(s) REVIEWED BY: ITEM #: Fire Chief McCoy City Administrator/Finance Director Flaherty City Attorney Kendall 5.1 – Fire Marshal Contract STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. X Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommend the City Council approve a Contract Fire Marshal Agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: The Fire Marshal position is a critical component of an effective and modern city fire department. While emergency response remains a primary function of the department, preventing fires and reducing community risk are equally important responsibilities that require dedicated leadership and expertise. A Fire Marshal oversees fire prevention activities, including fire and life safety inspections, code enforcement, plan reviews for new construction and renovations, fire investigations, and public education programs. These functions help ensure that businesses, schools, multifamily housing, and public facilities comply with applicable fire and life safety codes, reducing the likelihood of fires and minimizing risks to residents, visitors, and firefighters. As the City continues to grow and develop, the demand for inspections, permit reviews, occupancy approvals, and code compliance oversight increases. A Fire Marshal provides the technical expertise necessary to evaluate development projects, identify potential hazards before they become problems, and ensure that fire protection systems are properly designed and maintained. In addition, the Fire Marshal serves as the department’s lead authority on fire investigations, helping determine fire causes, supporting legal and insurance processes, and identifying trends that can inform future prevention efforts. Through public education and community outreach, the Fire Marshal also promotes fire-safe behaviors that reduce incidents and improve overall community resilience. The Fire Marshal position strengthens the City’s commitment to public safety by balancing emergency response with proactive prevention measures. This position supports regulatory compliance, community risk reduction, firefighter safety, and the protection of lives and property throughout the City. The City had identified Cary Smith to fill this position through a contracted service agreement. Mr. Smith recently retired from his long-term Fire Marshal position from another metro community and is looking to provide this service through the contracted service agreement on a part-time basis. The Administrative and Public Works Subcommittees reviewed and discussed this concept during both their April and May meetings. Additionally, this concept was reviewed and discussed by the Public Safety Commission at their May meeting and provided a recommendation for consideration of approval by the City Council. The agreement has been reviewed by City Attorney Kendall and provided to Mr. Smith for his review and consent. SUPPORTING DOCUMENTS ATTACHED: • Contract Fire Marshal Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve a Contract Fire Marshal Agreement between the City of Otsego and Cary Smith, dba FCA, LLC, subject to final agreement review by the City Attorney. BUDGET INFORMATION FUNDING: BUDGETED: General Fund – Fire Department (42200) No. As this position will support the Building Safety Department in addition to the Fire Department, City staff propose that this unbudgeted cost be funded by building permit revenues. Year-to-date 2026 permit revenues have already exceeded the full-year budgeted amount for the Building Safety Department expenditures. 1 239380v1 CITY OF OTSEGO CONTRACT FIRE MARSHAL AGREEMENT This Agreement made this _____ day of ______________ 2026, by and between City of Otsego, ("City") and Cary Smith dba FCA, LLC ("Contractor"). The parties mutually agree as follows: 1. Purpose. The purpose of this Agreement is to set forth the terms and conditions under which the Contractor will provide certain services to the City. This Agreement shall not preclude the City from engaging any other person or entity to perform the services identified in this Agreement, nor shall this Agreement preclude Contractor from providing similar or related services for any other entity. 2. Services. Contractor agrees to act as the City of Otsego’s Part-time Contracted Fire Marshal in accordance with the scope of work provided by Exhibit A of this Agreement (“Services”). The Contractor agrees to comply with applicable city policies in performance of the Services. 3. Termination. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City to terminate this Agreement at any time, subject to the provisions of this Agreement. Furthermore, nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Contractor to terminate this Agreement at any time, subject to the provisions of this Agreement. Upon termination, the City will pay the Contractor for Services rendered prior to the date of termination, except in the event of a material breach of this Agreement. 4. Compensation. The City shall pay Contractor $75.00 per hour for Services rendered under this Agreement. Time shall be billed in increments of fifteen (15) minutes. The City shall remit payment to Contractor within fifteen (35) days of receipt of Contractor invoice. 5. Standard of Performance. The Contractor shall exercise the same degree of care, skill, and diligence in the performance of the Services as is ordinarily possessed and exercised by a contractor under similar circumstances. 6. Independent Contractor Relationship. It is expressly understood that the Contractor is an “independent contractor” and not an employee of the City. The Contractor shall have control over the manner in which the Services are performed under this Agreement. The Contractor shall not be entitled to any benefits from the City, including, without limitation, insurance benefits, sick and vacation leave, workers’ compensation benefits, unemployment compensation, disability, severance pay, or retirement benefits. Nothing in this Agreement shall be deemed to constitute a partnership, joint venture or agency relationship between the Parties. 7. Indemnification. To the fullest extent permitted by law, the Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of the Contractor’s negligence or the Contractor’s performance or failure to perform its obligations under this Agreement. Contractor’s obligation to defend shall apply only to claims for which indemnification is owed under this Section. Contractor shall not be obligated to 2 239380v1 indemnify or defend the City for any claims to the extent caused by the negligence or willful misconduct of the City or its officials, employees, or agents. The Contractor agrees this indemnity obligation shall survive the completion or termination of this Agreement. 8. Insurance Requirements. The Contractor, at its expense, shall procure and maintain in force for the duration of this Agreement the following minimum insurance coverages: a. General Liability. The Contractor agrees to maintain commercial general liability insurance in a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products completed operations, personal injury, advertising injury, and contractually assumed liability. The City shall be endorsed as additional insured. b. Automobile Liability. If the Contractor operates a motor vehicle in performing the Services under this Agreement, the Contractor shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000 combined single limit. c. Professional (Errors and Omissions) Liability Insurance. The Contractor will maintain professional liability insurance for all claims the Contractor may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Contractor’s professional services required under this Agreement. The Contractor is required to carry the following minimum limits: $1,000,000 per occurrence; $2,000,000 annual aggregate. The retroactive or prior acts date of such coverage shall not be after the effective date of this Agreement, and the Contractor shall maintain such insurance for a period of at least three (3) years following completion of the Services. If such insurance is discontinued, extended reporting period coverage must be obtained by the Contractor to fulfill this requirement. d. Workers’ Compensation. The Contractor agrees to provide workers’ compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. The Contractor shall also carry employers liability coverage with minimum limits are as follows: • $500,000 – Bodily Injury by Disease per employee • $500,000 – Bodily Injury by Disease aggregate • $500,000 – Bodily Injury by Accident The Contractor shall, prior to commencing the Services, deliver to the City a Certificate of Insurance as evidence that the above coverages are in full force and effect. The insurance requirements may be met through any combination of primary and umbrella/excess insurance. The Contractor’s policies shall be the primary insurance to any other valid and collectible insurance available to the City with respect to any claim arising out of Contractor’s performance under this Agreement. 3 239380v1 The Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days advanced written notice to the City. 9. City Assets. The City agrees to provide the Contractor information technology equipment such a computer, cellular telephone, and desk phone at a furnished space at the Otsego Fire Station; and further agrees to provide use of a City owned vehicle to be used only within the City in order to perform the Services of this Agreement. 10. Compliance with Laws. The Contractor agrees to comply with all federal, state, and local laws and ordinances applicable to the Services to be performed under this Agreement, including all safety standards. 11. Term. This Agreement shall be effective the date executed by both the City and the Contractor, and will continue until mutually agreed upon ending, or as otherwise terminated pursuant to this Agreement. 12. General Provisions. a. Entire Agreement. This Agreement supersedes any prior or contemporaneous representations or agreements, whether written or oral, between the Parties and contains the entire agreement. b. Assignment. The Contractor may not assign or subcontract Services under this Agreement to any other person unless written consent is obtained from the City. c. Amendments. Any modification or amendment to this Agreement shall require a written agreement signed by both Parties. d. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in Wright County, Minnesota. e. Ownership of Documents. All reports, plans, specifications, data, maps, and other documents produced by the Contractor in the performance of Services under this Agreement shall be the property of the City. The City may use such information for its purposes. The City shall be the copyright owner. f. Government Data/Privacy. The Contractor agrees to abide by the applicable provisions of the Minnesota Government Data Practices Act, Minnesota Statues, Chapter 13, and all other applicable state or federal rules, regulations or orders pertaining to privacy or confidentiality. The Contractor understands that all of the data created, collected, received, stored, used, maintained or disseminated by the Contractor in performing those functions that the City would perform is subject to the requirements of Chapter 13, and the Contractor must comply with those requirements as if it were a government entity. This does not create a duty on the part of the Contractor to provide the public 4 239380v1 with access to public data if the public data is available from the City, except as required by the terms of this Agreement. g. Records. Contractor shall maintain complete and accurate records of time and expense involved in the performance of Services. h. Audits. Pursuant to Minn. Stat. Section 16C.05, subd. 5, the Contractor’s books, records, documents, and accounting procedures and practices that are relevant to this Agreement, are subject to examination by the City and either the Legislative Auditor or the State Auditor for a minimum of six years from the end of this Agreement. i. Waiver. The waiver by either party of any breach or failure to comply with any provision of this Agreement by the other Party shall not be construed as or constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this Agreement. j. Third Party Reliance. This Agreement is intended for the mutual benefit of Parties hereto and no third-party rights are intended or implied. k. Notices. All notices and other communications pursuant to this Agreement must be delivered via email or delivered by registered or certified mail, postage prepaid, or delivered by hand at the addresses set forth below: Notice to City: City of Otsego 13400 90th Street NE Otsego, MN 55330 Attn: City Administrator Notice to Contractor: Cary Smith dba FCA, LLC 3330 Xanthus Lane Plymouth, MN. 55447 marshalbs73@icloud.com l. Force Majeure. Except for payment of sums due, neither Party shall be liable to the other or deemed in default under this Agreement, if and to the extent that Party’s performance is prevented by reason of force majeure. “Force majeure” includes war, an act of terrorism, a pandemic or epidemic, fire, earthquake, flood and other circumstances which are beyond the control and without the fault or negligence of the Party affected and which by the exercise of reasonable diligence the Party affected was unable to prevent. m. Savings Clause. If any court finds any portion of this Agreement to be contrary to law, invalid, or unenforceable, the remainder of the Agreement will remain in full force and effect. 5 239380v1 City of Otsego Contractor Jessica L. Stockamp, Mayor Cary Smith dba FCA, LLC Audra Etzel, City Clerk 6 239380v1 Exhibit A – Scope of Services for Contract Fire Marshal Services Under the direction of the Otsego Fire Chief, the contractor agrees to provide the following services, subject to the terms and conditions of the Agreement • Permitting & Plan Review. o Provide the services of a city fire marshal including working with Otsego Building officials on new plan review, on site visits of construction zones and answering questions related to facility construction. • Create a Risk Based Inspection Program of existing facilities. o Identify and prioritize occupancies that have a higher risk factor ▪ High-risk occupancies: annual or more frequent inspections ▪ Moderate-risk occupancies: 1 to 2 -year cycles ▪ Low-risk occupancies: complaint-driven or self-certification ▪ New construction inspections coordinated with building department ▪ Establish a Knox key box program ▪ Accessible preplan and emergency contact data for responding crews • Identify & Rank Community Fire Risk. o Analyze fire incident data (last 5–10 years) o Identify high-risk occupancies: ▪ Multi-family housing ▪ Older commercial buildings ▪ Schools, health care facilities ▪ Industrial and hazmat sites (302 facilities) o Map fire loss, injuries, sprinkler protected vs. unprotected properties and code violations ▪ and ordering equipment, tools, and other items necessary for all department apparatus. • Coordinate and implement an Otsego Fire Key Box System. o Working with our current Fire Service Contract cities, identify buildings in Otsego that have a current fire key box from either Elk River, Rogers or Albertville. o Identify buildings that don’t yet have a fire key box. o Create a plan to change all boxes to a new Otsego fire key box program o Develop a budget. o Develop a plan to implement this program to be functional by January 1, 2027. • Attendance of monthly meetings and Public Safety Advisory Commission as directed by the Fire Chief. • Develop and Coordinate a Community Outreach Program. o Assist with coordination, scheduling, and execution of public engagement events. o Provide work assignments and responsibilities where necessary. • Relationships and Partnerships o Engagement and communication with current Fire Service, EMS, and Law Enforcement partners to improve and define future cooperative relationships. o Engagement and work directly with Otsego City Staff as needed including building officials, city planner, utilities department and Parks Department. • Other work as agreed upon by the Contractor and Fire Chief.