05-23-2022 Council Packet - Laserfiche WebLink

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EXHIBIT A Financial and Other Terms Questions for Orono's Proposed Purchase of LLFD Assets (Please provide detailed and specific answers to each of the following inquires.) Responses in Blue. 1. If a sale of the LLFD were to occur, what would the proposed organizational structure look like? What would happen to current LLFD employees? It is Orono’s intent to offer a place for all the current firefighters in the new organization (volunteers + chief.) Orono would own the Fire Department and Long Lake could choose to be a city that we provide services to. (Contract City) 2. Does Orono desire to purchase all assets of the LLFD? If less than all, designate those to be purchased in your proposal. Yes, Orono would propose to purchase all functioning mission-critical assets. 3. What is Orono's proposed purchase price for Station 1? Orono proposes to pay 50% of the appraised value of the Station. Per the appraisal dated December 10, 2021, that value is $ 850,000. As of the writing of this memo, we are still waiting to hear the results of Long Lake’s appraisal. 4. What is Orono's proposed purchase price for the LLFD Pension Plan? The LLFD Pension Plan is not owned by the city. It is an asset of the Fire Relief Association with the city guaranteeing the fund. We propose to move the pension plan over as is. Orono will assume responsibility for guaranteeing the fund. All members will retain benefits and vesting as they do now. We’ve had discussions with the state and have been assured this will be a straightforward process. 5. What is Orono's proposed purchase price for all previously purchased assets of the LLFD (e.g. vehicles, equipment, furniture, gear, etc.)? $ 338,250.40 (As of 2021; will be adjusted for recent vehicle and SCBA replacements) 6. What is Orono's proposed purchase price for those items previously donated to the City of Long Lake for use by the LLFD (Those items owned 100% by Long Lake, e.g. Polaris 6 x 6, B11 fireboat, etc.)? Orono will accept the transfer of ownership of those donated items for the Fire department to ensure their continued use as the donors intended. They are part of the previously spelled-out equipment spreadsheet. 7. How does Orono propose to make payment to Long Lake? (i.e. Cash payment? In-kind services? Both?) If something other than a cash payment for all purchased assets is proposed, provide specific details as to what in-kind services are offered and for what duration. Cash Payment. From our previous discussion and correspondence, we understand that Long Lake is not interested in an in-kind service arrangement. 8. If Long Lake were to agree to sell LLFD assets to Orono, when do you propose this would take place? Outline your proposed transition plan. Upon written agreement. With the agreement in June of 2022, we believe the transition could be complete/effective by January of 2023. 9. If a sale of the LLFD were to occur, what would it be called going forward (i.e. Would O rono retain