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AGREEMENT <br />NOW THEREFORE, the Participating Agencies, for and in consideration of the mutual <br />benefits, covenants and agreements set forth herein, agree as follows: <br />1. Services. <br />(a) San Carlos agrees to retain a fire department including certain personnel <br />and infrastructure at its sole cost sufficient to provide specified fire and emergency services, as <br />more particularly described in Exhibit "A" attached hereto and incorporated herein by reference <br />(collectively "San Carlos Obligations"). <br />(b) Redwood City agrees through its Fire Department to provide to San Carlos <br />fire and emergency services, such as fire suppression, prevention, investigation, training, and <br />emergency medical services, all as more particularly described in Exhibit "B" attached hereto and <br />incorporated herein by reference (collectively, "Services"). <br />2. -Staffing and Compensation. <br />(a) San Carlos shall pay Redwood City a fee for the Services pursuant to the <br />staffing and compensation schedule described in Exhibit "C", attached hereto and incorporated <br />herein by reference. No other staffing, assistance or compensation for the Services shall be allowed <br />except for items covered by subsequent amendments to this Agreement in writing. <br />(b) The actual cost of the Services shall be reviewed and amended annually to <br />reflect all of the following: <br />(i) San Carlos shall pay the actual increase in the Personnel Staffing costs, <br />including the then applicable "Employer Normal Cost" or its equivalent as shall be <br />provided by Ca1PERS and the self-insured workers compensation cost, associated <br />with providing the Services (which are included in Exhibit "C", Items A D). <br />(1) The actual increase in the self-insured workers compensation <br />cost will be based on recommendations outlined in an actuarial report <br />provided to Redwood City by its actuary. Each year Redwood City shall <br />have an actuarial study performed on the Fire Department (exclusive of <br />Labor Code section 4850 benefits and Temporary Disability time) for the <br />primary purpose of providing Redwood City with a reasonably accurate <br />estimate of the self-insured workers compensation cost associated with <br />providing the Services for the following fiscal year. San Carlos shall pay <br />Redwood City for 1/3 of the cost of the actuarial study but not to exceed <br />One Thousand Dollars ($1,000) in any given year. The actuarial report shall <br />reflect an 80% Confidence Level. <br />(2) The total amount of self-insured workers compensation that San <br />Carlos will pay shall be based on the number of positions allocated to San <br />Carlos. For example, if the actuarial report determines that the cost of <br />workers compensation at the 80% confidence level is $1 million with 65 <br />ATW/AGR/2018/AMENDMENTS/AMEND NO.2 SAN CARLOS — RWC FIRE AGREEMENT <br />REV: 0417-18 JS <br />Page 2 of 32 . <br />