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Home My WebLink About05-30-2002 Council Work SessionCouncil Work Session 5:30 p.m., Thursday, May 30,2002 Orono City Council Chambers AGENDA 1. Mound Fire Station and Fire Service Issues 2. Twenty-Year Long Lake Fire Service Agreement 3. Highway 12 Development 4. Policy Issues Regarding Stormwater Drainage Improvement Projects and Assessments 5. Other TO: FROM: DATE: Mayor and City Council Ron Moorse, City Administrator May 28,2002 SUBJECT: Mound Fire Station and Fire Service Options The City of Mound has provided all of the fire service cities with information regarding the costs of the new fire station and the proposed share of costs to be allocated to each city. The costs of the fire station are proposed to be allocated according to the same formula as are the operating costs of the Mound Fire Department. Using this formula, Orono would pay 20% of the costs of the fire station. Orono ’s share of the fire station costs is $687,000. The debt service on this cost over 20 years is $71,500 per year. Because the Mound fire station project involves a potential long term fimding commitment, and a related long term commitment to the Mound Fire Department in terms of fire service provision to the southwest area of Orono, the fire station project is causing the City to take a long term look at how best to provide fire service to the City, and in particular to the southwest area of the City. From staffs perspective, decisions regarding fire service options should be based on the following criteria 1. Ensure high quality fire service 2. Provide fire service in a cost effective manner 3. Preserve and enhance the viability of volunteer-based fire departments 4. Effectively manage the number and size of fire stations and fire apparatus. There are four key issues involved in reviewing the provision of fire service to Orono in light of the Mound fire station project. These are as follows; 1.Should Orono continue to be involved \\ith multiple fire departments, potentially including being a part of a fire district that would serve the northwest Lake Minnetonka area, or should larger areas of the City be consolidated under a smaller number of fire departments? 2.If Orono is to invest in a fire station to serve its southwest quadrant, should Orono invest in the new Mound fire station or in a satellite station in Navarre? 3.Should Orono and the other cities who receive fire service from Mound pay a portion of the costs of the new Mound fire station, and, if so, should the cost allocation be on the same basis as the allocation of operating costs? 4.If the cities are to pay a portion of the costs of the new fire station, should the cities receive an equal portion of equity in the fire station building? To assist the Council ’s discussion of the issues listed above, the following is a broad review of each J l^r an Mound Fire Station and Fire Service Options May 28. 2002 Page 2 of these issues. 1. Continue to receive service from multiple fire departments. a. Pros. Continues lies witii existing fire departments, all of which provide excellent fire service, and all of which have a population base from which to draw volunteer firefighters; particularly Mound which has a population of approximately 15,000 from which to draw volunteer firefighters. The fire departments that serve Orono also serve other cities. The participation by multiple cities makes fire service more cost-effective for the participating cities. Remaining involved with multiple departments provides the potential for the creation of a fire service district that could provide substantial efficiencies regarding the provision of fire service to the larger area. b.Cons. In a fire service agreement with multiple cities, Orono does not have full control of the budget. Continuing with multiple departments in their current configuration is more expensive for Orono than reducing the number of fire departments, particularly the elimination of service from Mound and Maple Plain in favor of the expansion of the Long Lake fire service area. 2.Satellite station in Navarre. a.Pros. 1) Could improve response time to the Navarre area. 2) Would open up a potential pool of volunteer firefighters in Navarre. 3) If Orono chooses to continue to receive fire service fit>m Mound, the satellite station would provide a service option if the Mound service Mound Fire Station and Fire Service Options May 28, 2002 Page 3 ____________________________ relationship was to become unworkable at some point in the future. If the Navarre satellite station was operated by Long Lake, it would enable a signiflcant reduction in operating costs. b.Cons. Because the response time to the Navarre area from the Mound fire station is adequate, the satellite station is not needed from a response time standpoint. There is significant uncertainty as to the ability to recruit sufficient volunteer firefighters to staff a Navarre satellite station, both in the short term and in the long term. The investment in a Navarre satellite station would reduce the resources available to fund the Mound fire station. 3. Proposed Mound fire station cost allocation formula. a.Pros. Operating costs are allocated according to a formula designed to approximate the level of need for and usage of fire service. There is a degree of logic behind allocating capital costs in the same way. If all cities pay a share of the costs, the costs for each city are reduced. b.Cons. Oronu and the other service contract cities are purchasing a service. To the extent the service can be provided adequately from the current facility, it is arguable whether the contracting cities should pay for a new facility. Payment of the debt service would increase Orono’s annual cost for Mound fire service from $I 10,000 to $182,000. This is an increase of $72,000 or 65%. 4. Obtain equity in the Mound fire station equivalent to Orono’s cost allocation. a.Pros. iiirni.Trd1ffftrTHr Mound Fire Station and Fire Service Options May 28. 2002 Page 4 ______ If the equity includes a buyout upon dissolution of the fire service agreement, this provides a strong incentive for Mound to be responsive to Orono’s fire service needs. We cannot see 1S or 20 years into the future to know whether Mound will continue to be able to provide adequate fire service. If substantial changes occur which cause an inability to provide adequate fire service, the City’s investment in the fire station would be lost. b.Cons. If there was a dissolution that required a buyout, the buyout would have to occur over a period of years. The equity payout may not be sufficient to fund a fire service alternative such as a satellite station n Navarre. Based on the general analysis above, staff has the following recommendations: 1.Maintain ties with the Mound Fire Department for fire service to the southwest portion of the City. 2.The City should participate in, and lead if necessary, a process to evaluate the benefits and feasibility of a broader fire service organization that can facilitate cost effective fire service delivery and preserve and enhance volunteer-based fire service over the long term. 3.Pursue with Mound a cost allocation formula for both capital costs and operating costs that makes the cost of fire service from Mound competitive with the cost of fire service provided through a satellite station in Navarre operated by Long Lake. 4.Do not build a satellite station in Navarre at this time, but reserve a site for a future station. c t i ) : !i ^ i li 1’ 1 4! i! •i B. TO: FROM: DATE: Mayor and City Council Ron Moorse, City Administrator May 28,2002 SUBJECT: 20-Year Fire Service Agreement with Long Lake The Settlement Agreement with Long Lake regarding the new fire station includes the development of a 20-year Hre service agreement to guide the fire service relationship. The Council has reviewed the proposed agreement and has not indicated any concerns regarding the proposed language. But the Council did direct staff to obtain input from Gabriel Jabbour and Jim Murphy prior to Council approval, particularly regarding suggestions by Dick Flint concerning the City of Orono having a greater voice in managing the Department, particularly the Fire Chief. In view of recent actions by the Long Lake Fire Chief in relation to fire service expenditures, hiring, and training that have each raised concerns, it is important the Council discuss this issue. Gabriel Jabbour has suggested language indicating that Orono has a strong inherent interest in ensuring the Long Lake Fire Department operates well and is well managed. Orono will work diligently with Long Lake to ensure effective management of the Hre service. Any detriment to the Long Lake Fire Department is a detriment to Orono and its investment in the Long Lake Fire Department. The language suggested by Dick Flint is as follows; 1.The Fire Chief may be removed with or without cause by either city upon a four- fifths vote of its City Council. No major contracts or other major financial obligation may be undertaken except with the approval of cities paying 60% of the operating costs that year. The challenge is to develop language that balances the fact that the Long Lake Fire Department is an operating department of the City of Long Lake with the fact that Orono pays over 70% of both the operating and capital costs of the Department, and Orono is committing to obtaining fire service from the Long Lake Fire Department for a 20-year period. While the current agreement language gives Orono control over the annual operating budget, we need language that enables the City to be proactive in addressing problems, particularly when a Fire Chief is making decisions regarding expenditures, hiring, and training that may create long term liabilities for Orono as a party to the fire service agreement, and as the party responsible for funding the majority of the costs of the Long Lake Fire Department. j i TO; FROM: DATE: Mayor Peterson and Council Members Ron Moorse, City Administrator jw/U May 28,2002 SUBJECT: Highway 12 Retail Development Staffs position regarding community scale or subregional scale retail development, such as a grocery store, along Highway 12, has been set out in the staff report to the Planning Commission, and in an email to the Council. The developer of the proposed mixed-use development at Willow and Highway 12 is painting the grocery store issue as a one-time opportunity, and as a citizen demand issue, in an attempt to persuade the Plamting Conunission and Council to approve retail uses, particularly the grocery store, ata scale well beyond the neighborhood scale or accessory scale en\ isioned for this area. Since the Council has not had an opportunity to discuss this issue, the worksession will provide that opportunity. n '1 5: S' I