10-10-2022 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING September 26, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 11 of 13 stability for the department, and they can grow the robust budgets to look at long-term capital. Printup stated Orono has been a cash cow, whether with the cable commission, LMCD, or other bureaucratic entities, and it is time to reign that in. If people want to jump on board and have Orono provide that service such as with police and public works, that is what he is in favor of. The Fire Chief would be an Orono employee reporting to the Orono City Council. Crosby is still in favor of a joint board as an advisory board but not as an employment board. Johnson spoke about the appraisal from Orono ($1,700,000). He noted they still have not received a copy Long Lake’s appraisal. The written agreement was that each City would get their own appraisal and if there was a dispute they would get a third appraisal. Long Lake told Johnson their City Attorney has advised them not to give a copy of their appraisal. Johnson shared about rolling stock which are the vehicles minus the two vehicles Orono purchased at 100% and he shared about estimated market values on equipment. Johnson shared Long Lake’s projected fire cost estimated at $1,430,000 over 10 years which includes operational expense and the contribution to the CIP (Capital Improvement Plan). Long Lake is concerned about giving up their half of fire station #1 and the equipment because they believe one day there will be a JPA or Fire District that comes together and each City must contribute something for that. For a City like Medina, that is a big deal and they will have to build a building. Long Lake is concerned about parting with some of their assets for when/if that day comes. Johnson proposes to overpay Long Lake for their contribution and what is owed in an effort to make this transition, noting the firefighters are the biggest asset, and Orono can give them incentive that pays them more than contractually obligated but perhaps less than Orono’s expenses would be if they started all over from scratch. He feels this is a common ground between Orono not starting from scratch and gives Long Lake the cash to always have assets available. Johnson noted if this contract goes away, so does this deal. Printup asked if the contract says $1,400,000 why would Orono want to give Long Lake more than that? Johnson replied ultimately Orono is trying to give Long Lake incentive to cooperate and put this all behind the cities and allow the firefighters in the crosshairs an incentive so there is a long-term plan in place. He noted the appraisal is $850,000 for the building and Johnson proposes to give Long Lake $1,250,000 for that building, the rolling stock remains the same and Orono will pay 100% of what they are owed, there is an unexpended CIP and Johnson suggests that Long Lake retain the roughly $200,000 of capital improvement funds that are supposed to go into the fire department. The total offer amount would be $1,588,440. Mayor Walsh clarified Orono will take care of the deferred maintenance. Johnson replied in the affirmative, noting included with the building purchase of $1,250,000 Orono would take it as-is and would prioritize that maintenance. Johnson proposes a 10-year contract with Long Lake for $70,000/year and that the City of Orono pays Long Lake’s next 10 years of CIP contribution which is worth about $700,000. He noted putting it all together is about $730,000 savings for Long Lake. Johnson spoke about the rolling stock and donated items which should also be included, and stated the ultimate offer to Long Lake would be $2,488,000 that occurs on or before June 1, 2023. Johnson shared they have done quite a bit of work understanding the Relief funds, retirement, investing, and with this plan that is administered and insured by the City of Orono. There would not be any disruption for the firefighters. Mayor Walsh noted it would be similar to what they do with the police department with a budget and CIP for squad cars, the cities and mayors meet every quarter to go through the budget and everything being