ITEM 1_attachment 1To: Adam Nafstad, City Administrator; Albertville City Council
From: Mike Couri
Date: May 27, 2015
Re: Possible Joint Powers Fire Agreement with City of Otsego.
Listed below are the main issues that I anticipate will be part of any Joint Powers Fire
Agreement between the City of Albertville and the City of Otsego. These issues are
being identified for the purpose of discussion at the Council level to provide general
guidance to the Fire Committee members at their next meeting with the City of Otsego.
The main issues related to the formation and operation of a Joint Powers Agreement for
Fire Service are as follows:
1. Ownership of Equipment and Fire Hall. The Joint Powers entity would likely
own the Fire fighting equipment, but what about the current Fire Hall and any
future Fire Halls? Who will own and maintain them? What will become of them
when their useful lives as Fire Halls have ended?
2. How to Value the Equipment Albertville Will Bring to the Table. Currently,
Albertville owns all of the fire fighting equipment. If ownership is eventually to
be transferred to a new joint entity, how will Albertville be compensated for its
equipment? Will Albertville receive cash? If so, where will it come from? Will
Albertville receive a "credit" to be applied to its share of the fire department
expenses for a period of years? If so, Otsego will need to pay much more during
those years to keep the Department properly funded.
3. How to Structure the Membership and Voting Power of the Joint Powers
Board. Will Albertville and Otsego each have equal representation on the Board?
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If so, will there be a third party appointed to break ties? If so, who appoints that
person and how long do they serve?
4. Will Representation Be Static for the ]Life of the ,Joint Powers Agreement or
Will it Change with Changes in Population or Funding. As Otsego's tax base
and population increase, will its voting power on the Joint Powers Board stay the
same or increase? This will likely be a very important long-term issue.
Essentially, the question is whether Albertville is prepared at any time in the future
to accept less than an equal voting share in the Joint Powers Fire entity.
5. What ,Will the Funding Formula be Based Upon. Currently, each City's
contribution to the Fire Department budget is based upon the tax capacity served
in each City. Will this continue or will some other formula be used?
6. Will the Joint Powers Board Have the Authority to Set the Joint Fire
Department Budget Independent of the Two City Councils. If so, is
Albertville's Council willing to face years where it may have to increase its levy to
fund the purchase of equipment that may really only benefit Otsego, but is
necessary for the joint operation of the Department? There may be times Otsego
feels the same way about equipment that will primarily benefit Albertville.
7. How Will Otsego's Future Fire Hall and Equipment to be Housed in it be
Funded. Will Otsego's satellite station be funded by Otsego or in part by
Albertville through the regular Fire budgeting process? Who will own the satellite
Fire Hall? Who will pay for the equipment that will be placed in that satellite
facility?
8. How Will Disagreements Between the Parties be Handled. Rather than have
"showdown" votes at the Joint Powers Board Meetings which may lead to
irreconcilable differences, will there be some process or procedure that the parties
will agree to go through when things get difficult? Perhaps jointly consulting with
the State Fire Marshall? Perhaps consulting with other fire departments' chiefs?
9. Will 'There be Any Way for the Parties to Terminate the Joint Powers
Agreement. Because reconstituting two separate fire departments from one joint
department that dissolved would be a monumental task, our recommendation is
that whoever leaves the Joint Powers Agreement leaves all of their investment
behind so that the remaining party does not have to start a fire department from
scratch. This arrangement may sometimes resemble a dysfunctional marriage, as
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both parties may at times despise each other, but neither one wants to lose its
investment to date. Can the City live with this arrangement?
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