11-24-1997 Council Packet - Laserfiche WebLink

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r MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD ON NOVEMBER 10,1997 (#15 Purchase of Squad Cars - Continued) Vote: Ayes 4, Nays 1, Peterson. (#16) LONG LAKE FIRE SERVICE CONTRACT FOR THE YEARS 1998-2000 Moorse reported that the 3-year agreement with Long Lake Fire Department for fire service is basically an extension of a 3-year agreement for another year to become a 3- year contract. The contract stipulates a budget increase of 4%. The fire department's budget increase is 3.96%. The City's actual cost is based on a cost allocation formula. Moorse indicated the actual increase will be 5.3%. The fire department is also proposing a special equipment purchase for a larger fire hose for fires where no hydrants are available. Moorse said Staff is suggesting more discussion be held on this matter to determine needs and whether it is a good purchase. At this time, Moorse asked Council for agreement with the contract. Kelley questioned why market value of homes was used as a factor in the cost allocation formula. He questioned why a large house or small house with four children in it should be of different value. Moorse indicated market value is a measure of property to be protected. Moorse noted that the number of fire hours is also used. Kelley questioned the wisdom in using market value in the fire district and if market value is a true reflection of how it should be evaluated. Kelley noted the result is an increase in Orono's share of the budget without alot of control by the City. He noted a discrepancy between the cities and their contracts. He suggested that fire hours be the only criteria. Moorse indicated that the fire department protects properties and the valuation gives an idea of the property being protected. Kelley said an argument could be made for newer homes being more fire resistant with the newer and better products available. Moorse noted that market value is made up of both land and building. In Orono, a substantial portion of market value is related to the land versus the building. Jabbour reported that the Council needs to discuss the long term relationship with Long Lake. He noted that the police contract has a similar criteria with population and market value. He feels tax capacity should also be used as a criteria noting the differing j)erccntages between commercial and residential properties. Orono is not benefiting as there is a low amount of commercial property in the City. Jabbour said there is more activity in commercial buildings with the number of people occupying it versus the number of people in a home. Jabbour suggested these contracts be negotiated at a time different from contract renewal. 24