07-26-1993 Council Minutes2 - Laserfiche WebLink

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/ TO: FROM: DATE: SUBJECT: Mayor and City Council Ron Moorse, City Administrator July 23, 1993 Long Lake Fire Contract Update C , \ %*Councilmember Kelley and I have met with representatives Long Lake to discuss the proposed contract. The following is an outline of the major items discussed. 1. 2 . Contract duration and cancellation. The discussion regarding the duration of the contract was for this agreement to be a three year agreement. This is similar to past police service contracts between the two cities which have been three year agreements up until the 1990's. The three year agreement is to reflect the determination by both Orono and Long Lake that the proposed arrangement is acceptable from a longer term perspective than one year. If this is the case there should be no changes in the next three years that would be significant enough to change that determination in terms of the city's fire protection needs or in terms of the Long Lake fire department's ability to meet those needs. The City of I,erg Lake has proposed that they provide us with proposed budget numbers for the next three years that will give Orono some assurance regarding the level of costs for the service. If these costs increase beyond these budgeted amounts the increase would need to be approved by Orono. An additional benefit of the multi-year contract is it gives assuiance to both cities that this issue will be resolved for three years. Cost allocation formula. In discussing the addition of the fire fighter hours factor to the cost allocation formula, it was suggested that this factor be weighted less than the market value factor because the fixed costs of the fire department (i.e. the amount and type of equipment, training etc.) which are more related to the market value factor are a greater portion of the fire department cost than are the variable costs suen a fire fighter hours, fuel etc. Councilmember Kelley and I are reviewing this suggestion to determine the proper weight for the factors. Dissolution language. The discussion of the dissolution languaae resulted in agreement on two areas. 1. ) r.rcit city should have the first right of refusal prior to selling to any other party. 2. ) The value of the equipment should not be based on a depreciation schedule, instead it should be based on an agreed upon price or as determined by a bid process. It is th»=* intent of the representatives of the two cities that a final proposal regarding a fire contract will be ready for approval by both councilj at their first council meetings in August. 3 .