09-10-2012 Council Minutes - Laserfiche WebLink

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MINUTES OF THE � ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (12. CONTRACT FOR LAW ENFORCEMENT SER i�ICES, Continued) Mayor McMillan opened the hearing to public comment. Denny Walsh, 1354 Rest Point Circle, stated in his view this process has gone really fast and that the City Council is talking about a large budget item. Staff and the City Council have worked hard to keep their budget levy at zero and they are now talking about buying a business from Mound that is having financial problems. Walsh stated one of the issues not discussed and not considered is the fact that people will want raises because they will be overseeing more people. Walsh noted the contract has some long-term low percentages, such as two percent,and questioned what the City would do if inflation rises to 7 percent or 10 percent. Walsh also questioned what the City would do if the proposed savings of$150,000 becomes a deficit of$150,000. Walsh noted they are potentially spending Orono citizens' money on this and the City Council should take sufficient time to ensure that all the issues are addressed. Walsh stated Orono does not need to be in a hurry to approve the contract and that they should review it carefully and make sure everything has been addressed properly. Walsh commented it sounds like the City is trying to grow their business and that all issues need to be considered. (A recess was taken from 9:00 p.m.to 9:05 p.m.) Rich Wysocki,2770 Rainey Road, stated he became aware of this issue just today and that he has read the contract. Wysocki noted he has been involved in a lot of public contracts and that in order for it to be a good contract for Orono, it must be revenue neutral with no added costs to the Orono residents. With added patrols, increased supervision will be required,which needs to be considered. Wysocki stated his next area of concern relates to the term of the contract and that he is surprised it is a 10-year contract. Wysocki stated in his experience public contracts axe typically limited to three years with a 30-day cancellation for cause and sometimes a 10 day cancellation period. Wysocki stated his other concern relates to pension funding and possible shortfalls. Wysocki commented he is not sure whether that is a consideration in this situation. Wysocki stated in his view it is a contract that he would love to sign if he was Mound but that he is not sure it is in Orono's best interests. Mattick stated the idea behind the 10-year contract is the fact that the City is adding police cars and they want the stability of the revenue to run the department. After Staff reviewed the issues, Staff recommended a 10-year contract and it is not something that Mound requested. Mattick noted there will be startup costs to provide service to Mound. Wysocki commented that capital expenditures on cazs are typically three years along with most everything else. Mattick stated another reason was that the City did not want to add employees or eliminate employees every three years. Mattick stated the contract does not need to be 10 years but that is what both cities agreed on. Wysocki stated businesses typically sign three-year contracts. Page 18 of 26