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DRAFT Comprehensive Fire Service Study MEDINA, MINNESOTA <br /> <br />Matrix Consulting Group Page 55 <br />• The City of Orono will have the option of funding the remaining amount. If Orono <br />does not wish to fund the total of the remaining amount, it must fund at least the <br />average of its last three City Budget Percentages including the current calendar <br />year and may fund more if it chooses. <br /> <br />• Medina will fund the balance remaining to be funded after Long Lake and Orono <br />have specified their funding amounts. <br /> <br />The contract outlines the disposition of major equipment with the City of Long Lake having <br />the first right to purchase the equipment. If the City of Long Lake does not exercise their <br />right to purchase, the City with the largest ownership share will have th e right to acquire <br />full title. With the limited funding the City of Medina has provided, it is likely the equity is <br />limited as well. <br /> <br />Funding for capital improvements for the Hamel Fire Department are contained in its <br />contract with the City of Medina. The funding follows the same budget process as the <br />operating budget and requires approval from the City. The difference with this contract <br />and the others is that Hamel only contracts with the City of Medina. There is a table in the <br />contract that specifically identifies the ownership shares between the two parties of the <br />contract and is updated annually. As well, Hamel Fire Department has the first right to <br />purchase the City of Medina’s share in any of the assets co -owned as listed. Following <br />the refusal of Hamel Fire Department to purchase the City’s share, the City of Medina <br />could exercise their right to purchase the Fire Department’s share. In the past three years <br />the City of Medina has averaged $73,000 per year for contributions to the capital <br />improvements. <br /> <br />While the contract with the Hamel Fire Department does provide some ownership shares <br />of the apparatus it would still require the City to purchase the remaining ownership shares <br />from the fire department to fully acquire ownership. None of the contracts provide <br />ownership shares for any of the fire stations. The key issue is in the event of the <br />dissolution of one of the fire departments, service delivery would be impacted and the <br />City would not have the ability to quickly establish a fire protection service fo r the area <br />served by that agency, including the ability to house any apparatus and equipment. <br /> <br />The following table illustrates the ownership equity in the apparatus and other equipment <br />as of May 2020.