07-23-2001 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 23, 2001 n U (Long Lake Fire Station Settlement Agreement, Continued) but allows Medina to terminate the agreement with a 24 month notice and requires notice be given to Medina in the event they will be charged a rental fee. Moorse stated in addition, the Council needs to discuss the settlement proposal by Mn /DOT. Moorse stated Mn /DOT has arrived at a figure of $3.498 million, which includes all soft costs and hard costs. Moorse recommended the settlement agreement reflect the new amount. Mayor Peterson inquired whether the $200,000 for the land is included in that amount. Moorse stated to his knowledge that would include the $200,000. Mayor Peterson stated the City of Orono is responsible for contributing $680,000 in addition to the Mn/DOT monies. Gabriel Jabbour stated Orono needs to know the deadline given by Mn /DOT for acceptance of the settlement agreement. Jabbour noted the original deadline was June 30`h, which was later extended to either July 30`h or 31". Jabbour stated the City of Long Lake is also seeking reimbursement for their public works building and city hall. Jabbour stated the $3.498 million is based on fire protection for 42 square miles, with 9,000 residents. Jabbour stated the City of Long Lake would like Mn /DOT to apply that same formula to their public • works building and city hall facility. Jabbour stated in his opinion that formula would not apply to those two buildings since they would service only the City of Long Lake. Sansevere commented the City of Long Lake may have the misperception that monies are being diverted from their city hall and public works building to the new fire station. Flint stated perhaps the misunderstanding is that Long Lake does not understand the formula that was arrived at to determine the cost to construct a new fire station. Flint stated the value of the current fire station is approximately $500,000, with Mn /DOT willing to pay for the cost of replacing that service. Flint stated the cost of the fire service is based on providing fire protection to 9,000 residents over 42 square miles. Flint stated the cost of replacing Long Lake's public works building and city hall would not be as high since it only services 2,000 residents and covers a service area of .6 miles, which would result in a smaller number. Flint stated in his view they are attempting to compare apples to oranges. Jabbour noted that no representative from the City of Orono has requested that any monies designated to the new fire station be taken away from Long Lake's public works department or city hall. Flint stated it was decided early on that the negotiations concerning the fire station and public works /city hall should be considered separate. Sansevere questioned whether an addendum to the settlement agreement would be better in order to avoid possibly jeopardizing the entire agreement. • PAGE 10