J-2 - City of Tiffin Fire Assn Transition Agreement - Draft 6 4-23-21

e. Donated funds to the current fire department non-profit will stay with the newly created non- profit corporation. 14. Insurance. a. It agreed that the parties intend to ensure that there are no gaps in any insurance coverage during this transition. b. The Association shall purchase and maintain adequate insurance policies for all services and property, including apparatus, vehicles, equipment, in addition to defense of any personal injury claims, employment claims, errors and omissions/professional liability, and shall provide workers’ compensation insurance for all volunteers of the Association for the duration of this agreement. The Association’s insurance coverage shall provide for the full replacement cost of damaged equipment, apparatus, and vehicles. The City shall be named as an additional insured. If inadequacies are discovered, the Association agrees to increase its insurance to provide sufficient coverage. – (Review current policy with Relion to make sure adequate coverage is in place during the Transition) c. The Association shall provide copies of all insurance policies to the City for inspection and review upon request. The Association shall not cancel or reduce insurance coverage without first notifying the City Administrator and coordinating with him or her. d. The City shall be responsible for providing all workers’ compensation, (also review for adequate converage) personal injury and employment liability, tort claims, and errors and omissions insurance for City employees effective July 1, 2021 and through the duration of this agreement and transition process. 15. Reports. The Association agrees to cooperate with the City regarding audits or recommendations contained therein. The Fire Chief shall provide a semi-annual quarterly report of calls, services, and the status of the transition to the City Council, the Association, and, if applicable, a transition committee. 16. Cooperation. The parties mutually agree to cooperate to achieve the purposes of this agreement and to transition all equipment, property, assets and funds and services to the City. If the Association fails to complete the terms of this agreement by June 30, 2022, by default and operation of law, all property and equipment shall be transferred to the City and thereafter owned by the City. The City will then also pay off the debt of the Association for the pumper truck and tanker truck. The City will not be assuming any other liabilities and debts of the Association. 17. Grants. The parties agree that the City shall be permitted to seek any grants within its discretion during the term of this agreement as one organization. All funds will be accounted for and managed by the City. The City shall own any property or equipment purchased using grant funds awarded to the City and shall be responsible for said property or equipment. 18. Recording. The City Clerk shall cause this Agreement to be recorded in the office of the county recorder and filed with the Secretary of State within 30 days of the date of this Agreement. 19. Severance Clause. If any of the provisions of this Agreement are declared invalid for any reason, the invalidation shall not affect other provisions of this Agreement that can be given effect without the invalid provisions. The provisions of this Agreement are severable. 20. Governing Law. This agreement shall be governed by the laws of the State of Iowa. 5