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DRAFT Comprehensive Fire Service Study MEDINA, MINNESOTA <br /> <br />Matrix Consulting Group Page 57 <br />Medina Fire Department Contracts <br />Department Expiration Date Termination <br />with cause <br />Termination <br />without cause <br /> <br />Hamel Fire <br />Department <br /> <br />December 31, 2022 90-day written notice <br />2 years written notice no <br />earlier than December 31, <br />2020 <br /> <br />Long Lake Fire <br />Department <br /> <br />December 31, 2025 3 years written notice 2 years written notice <br /> <br />Loretto Fire <br />Department <br /> <br />December 31, 2021 90-day written notice 1-year written notice <br /> <br />Maple Plain Fire <br />Department <br /> <br />December 31, 2021 Immediate with written <br />notice <br />6-month written notice <br />provided on January 1 of <br />the subsequent year. <br /> <br />Conclusions on Contract Risks <br /> <br />For most situations, the termination of a contract provides a considerable time frame to <br />address the fire protection needs of the City. However, should Loretto Fire Department <br />and the Hamel Fire Department provide a simultaneous 90-day notice, the City could be <br />in a position to lose its fire protection system in the northern half of the City rather quickly. <br />While this scenario is not likely to occur, it does highlight a vulnerability to the fire <br />protection system. <br /> <br />3 Fire Services Management <br /> <br />Each fire department presents their operating budget and their capital improvement <br />requests to the City annually. At the appropriate time the City meets with the individual <br />department and determines the amount of funding to be provided based on the contract. <br />Once the budgets are approved, the contract fire departments are able to spend the funds <br />according to their budgets without any further oversight from the City. <br /> <br />The State Auditor provided a Statement of Position in December 2018 that states in part <br />“Independent nonprofit firefighting corporations are separate corporations and usually are <br />authorized to control their own financial accounts. In these fire departments, the nonprofit <br />corporation generally issues paychecks and corresponding tax statements to its <br />firefighters and handles the hiring and discipline of firefighters. The nonprofit corpo ration <br />funds the fire department by charging for fire services through its contracts with cities and <br />towns.”