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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, September 10, 2012 <br />7:00 o'clock p.m. <br />_____________________________________________________________________________________ <br /> <br /> Page 18 of 26 <br /> <br />(12. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) <br /> <br />Mayor McMillan opened the hearing to public comment. <br /> <br />Denny Walsh, 1354 Rest Point Circle, stated in his view this process has gone really fast and that the City <br />Council is talking about a large budget item. Staff and the City Council have worked hard to keep their <br />budget levy at zero and they are now talking about buying a business from Mound that is having financial <br />problems. Walsh stated one of the issues not discussed and not considered is the fact that people will <br />want raises because they will be overseeing more people. <br /> <br />Walsh noted the contract has some long-term low percentages, such as two percent, and questioned what <br />the City would do if inflation rises to 7 percent or 10 percent. Walsh also questioned what the City would <br />do if the proposed savings of $150,000 becomes a deficit of $150,000. Walsh noted they are potentially <br />spending Orono citizens’ money on this and the City Council should take sufficient time to ensure that all <br />the issues are addressed. Walsh stated Orono does not need to be in a hurry to approve the contract and <br />that they should review it carefully and make sure everything has been addressed properly. Walsh <br />commented it sounds like the City is trying to grow their business and that all issues need to be <br />considered. <br /> <br />(A recess was taken from 9:00 p.m. to 9:05 p.m.) <br /> <br />Rich Wysocki, 2770 Rainey Road, stated he became aware of this issue just today and that he has read the <br />contract. Wysocki noted he has been involved in a lot of public contracts and that in order for it to be a <br />good contract for Orono, it must be revenue neutral with no added costs to the Orono residents. With <br />added patrols, increased supervision will be required, which needs to be considered. <br /> <br />Wysocki stated his next area of concern relates to the term of the contract and that he is surprised it is a <br />10-year contract. Wysocki stated in his experience public contracts are typically limited to three years <br />with a 30-day cancellation for cause and sometimes a 10 day cancellation period. <br /> <br />Wysocki stated his other concern relates to pension funding and possible shortfalls. Wysocki commented <br />he is not sure whether that is a consideration in this situation. Wysocki stated in his view it is a contract <br />that he would love to sign if he was Mound but that he is not sure it is in Orono’s best interests. <br /> <br />Mattick stated the idea behind the 10-year contract is the fact that the City is adding police cars and they <br />want the stability of the revenue to run the department. After Staff reviewed the issues, Staff <br />recommended a 10-year contract and it is not something that Mound requested. Mattick noted there will <br />be startup costs to provide service to Mound. <br /> <br />Wysocki commented that capital expenditures on cars are typically three years along with most <br />everything else. <br /> <br />Mattick stated another reason was that the City did not want to add employees or eliminate employees <br />every three years. Mattick stated the contract does not need to be 10 years but that is what both cities <br />agreed on. <br /> <br />Wysocki stated businesses typically sign three-year contracts. <br /> <br /> <br />Item #02 - CC Agenda - 09/24/2012 <br />Approval of Council Minutes 09/10/2012 <br />[Page 18 of 26]