News Photo by Steve Schulwitz Alpena Fire Chief Bill Forbush discusses a proposed intergovernmental contract between the city and Alpena Township. If approved by both municipal boards, the city fire department would take over fire and medical responses in the township.

ALPENA — The prospects of the Alpena Fire Department taking over fire and emergency response operations for Alpena Township improved Monday, as the Alpena Municipal Council set the price to provide fire and emergency response services for Alpena Township.

The council voted to charge the township $400,000 a year for 15 years. The contract can be reviewed after the first three years. Payments will be made monthly after July 1.

Over the life of the deal, the city can not charge the township more than $500,000 a year, unless it is discussed with the township and agreed upon.

In May, the township submitted a proposal to the city offering $387,500 a year, with a $450,000 annual cap.

The Alpena Township Board of Trustees met this morning, and is still considering other options that would rebuild the department, reduce expenses, and maintain full township control. Trustees have said they will host a public meeting to go over the matter, but a date for one is not yet set.

Currently, the city mans and operates the township’s north station, but will manage both stations after July 1.

The contract states the city will provide two paramedics at each station, as well as an advanced life support ambulance. It will also continue to incorporate paid-on-call employees on emergencies in the township and Alpena.

Township residents approved 10-year renewal, for 1.5 mills for fire department operations, equipment, and training in August 2018. That millage will generate $506,243 a year. A few months later they approved a 0.65-mill, five-year tax proposal to be used for new rescue vehicles and other needed equipment. The money paid to the city will come from it.

It’s estimated it would cost about $800,000 for the 2021-22 budget year, for the township to run the department on its own, which is about $300,000 over what the millage brings in.

CORRECTION: This story has been updated to reflect that Alpena Township offered to pay Alpena $387,500 a year for firefighting services offered by the township. That information was incorrect in an earlier version of this story.

This story also has been updated to reflect that Alpena’s counteroffer included an annual cap of $500,000 for the service. That information was unclear in an earlier version of this story.