06-25-2001 Council Minutes - Laserfiche WebLink

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• MINUTES OF THE ORONO CITY COUNCIL MEETING October June 25, 2001 (Long Lake /Orono Fire Station, Continued) Bash stated Orono would contribute $9,500, with Medina and Long Lake contributing some for a total of $13,200. Bash stated this amount goes into Long Lake's general fund. Nygard stated he has to justify these costs to the residents of Orono. Barrett stated as part of the agreement the City of Orono is being requested to make certain capital contributions and to make another contribution over a period of time. Barrett stated the dispute is whether the City of Orono wants to make another contribution to the fire station regardless of what it is called. Murphy stated at the beginning of the negotiations Orono indicated they do not want to pay rent or have depreciation. Murphy suggested this piece of the agreement be pulled out of the settlement agreement and included in the fire protection agreement. Sansevere stated he does not have a problem including it in the fire protection agreement, but that he is not in agreement with the $3,000 going into Long Lake's general fund. Bash stated the value of the building at six percent for 20 years amounts to $109,000 Barrett inquired whether Bash is considering this to be a capital contribution. • Bash stated in order to value buildings, you capitalize the rent. Bash stated $9,500 at six percent for 20 years is $109,000. Bash stated that amount is needed in order to maintain a proper cash flow. Nygard stated in his view any amount of money that the City of Orono gives to the City of Long that winds up in their general fund is wrong. Nygard stated the City of Orono has agreed to a $9,500 administration fee, which is an increase from what Orono is currently paying. U Mayor Peterson stated the Orono City Council would simply like to move this language to the fire protection agreement. Nygard stated he is more than willing to work on the agreements to make them better than what they are, but that he has issue with some of the items contained in the agreements. Bash commented both Councils need to work together to make the new fire station work. Sansevere stated if Orono's administration fee is to be increased, in his view Medina's administration fee should also be increased, which would more than cover this item that is currently being discussed. Sansevere noted the City of Orono is willing to pay $9,500 in administration fees, with Orono currently paying $3,000. Bash stated Medina pays 10 percent of the $13,200. Bash stated any monies that are currently in the budget that are not picked up under the new agreement would require the residents of Long Lake to incur those costs. PAGE 17