ITEM 7.1 MOU JPA for Fire Servicedim-g-
OtsTY F O
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
---
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
February 8, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Lori Johnson, City Administrator
Andy MacArthur, City Attorney
7.1
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend adoption of the attached Memorandum of Understanding (MOU) between the cities of
Albertville and Otsego for the review and consideration of a joint powers agreement (JPA) for fire
service.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
Yes, MOU
IS A PUBLIC HEARING REQUIRED?
No
BACKGROUND/JUSTIFICATION:
Approval of the attached MOU is the next step in the ongoing partnership with Albertville to explore
formation of a joint powers agreement for fire services. As you may recall, prior to applying for a shared
services grant from the Minnesota Department of Public Safety through the State Fire Marshal, the
concept of entering into a MOU was discussed. At that time it was determined that the MOU should be
delayed until after notification of the shared services grant application was received. Now that the
grant has been awarded, consideration of the MOU is in order.
The City of Albertville is the official grant recipient; therefore, Albertville is also the entity contracting
with Springsted, Inc., for the study. Beyond consultant study costs, each city is responsible for its
related costs that fall outside the grant and for providing the information needed to complete the study.
The MOU addresses those items. The Albertville City Council approved the MOU and the contract with
Springsted on February 1.
The MOU authorizes and directs staff from both cities to do the following:
• Provide information to Springsted, Inc., as needed to allow Springsted to complete the fire
services study. (The $25,000 study is funded by the Shared Services Grant of $23,000 and
$2,000 of the $2,555 matching requirement all of which is funded by the Albertville fire
department budget.)
• Perform financial analysis.
• Provide legal review with each City paying for services requested of their respective City
Attorney.
• Meet with individuals/organizations experienced in fire JPA's.
• Provide other research and communication to fully inform the City Councils of all aspects of a
JPA to allow them to make an informed decision.
• Continue to update the Albertville Otsego Joint Fire Advisory Committee for general discussion
and preliminary input.
Springsted's proposal for the study is attached. As you can see, in addition to the specific JPA items, the
study does include review of a site location for an Otsego fire station. Although the City owns property
on the east side of the city near the commercial area for a future station, a site(s) have not been
selected to serve the balance of the city. It is yet to be determined if the first station should be built on
the existing east location, on other city owned property, or on a site to be acquired on the west side of
town. This study should provide information to help answer that question.
Finally, per the grant agreement, the study must be completed by June 30, 2016. The current fire
services contract with Albertville ends on December 31, 2016, which gives the cities time after the study
is complete to determine how to proceed, whether that is to enter into a JPA, to continue contracting
for service, or to take a different approach.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• Memorandum of Understanding between the City of Albertville and the City of Otsego
• City of Albertville Council Memo dated January 27, 2016
• Springsted, Inc., proposal to evaluate fire services
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve the Memorandum of Understanding between the City of Albertville and the City of
Otsego regarding review and consideration of a joint powers agreement for fire service.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
General Fund Legal and Fire Department
budgets ° No
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ° TABLED ❑ OTHER (List changes)
COMMENTS:
MEMORANDUM OF UNDERSTA.NDJNG
Memorandum of Understanding between:
The- .City of Albertville
The. City of Otsego
Re: Review and consideration of a Joint Powers Agreement (JPA) for fire service
This memorandum of understanding is made and .entered into by and between the City of
Albertville and the City of Otsego; hereinafter referred to as the "parties".
WITNESSETH:
WHEREAS, the parties believe the formation of a Joint Powers. Agreement (JPA) for fire
service may.- be beneficial to both cities. To determine if a IPA is indeed desirable for
both cities, significant study must be completed. Only after considerable research and
.analysis and careful consideration of the cumritsituation'and future plans and
expectations will the two Councils be able to determineifthey should enter into a J-PA;
and
WHEREAS, the parties have received a Shared Services Grant from the State.Fire
Marshal Division of the Department of Public :Safety to study the feasibility of a JPA,
attached hereto as Exhibit A; and
WHEREAS, the parties have received a proposal from Springsted, .Inc, to study the
feasibility of a JPA -for .fire service} attached hereto as,. Exhibit B; and
WHEREAS; the current fire service contract between the parties ends December 31,
2016.
NOW, THEREFORE, the parties hereby -authorize and direct staff to engage in the
following activities to explore further the formation of a JPA::
1. Provide information to Springsted,. Inc., as detailed in the proposal.
2. Perform financial analysis.
3. _Legal .review b respective City Attorneys,
4, Meetings of City Staff 'with State and LMC staff versed in fire service JPA's.
5, Other research and communication needed to provide the City Councils with the
ptos; cons, fisks,.�enefi% costs, liabilities, future implications, and other
po titient.information.necessary to snake. ati itnfor med decision about entering into
a JPA.
6. Continue to provide information to the Albertville Otsego Joint Fire Advisory
Committee for general discussion and preliminary input,
JPA for Fire ,service 7 January 2016
Memo of ,Understanding
Upon completion of research and analysis; the results will be presented to both City
Councils for discussion and direction to determine the next steps in the process or to
cease further action on a JPA, The decision on whether to enter into a 1PA rests entirely
with the Albertville and Otsego City Councils,
CITY OF ALBERTVILLE
Mayor
Dated:
CITY OF OTSEGO
By:
Mayor
Dated:
JPA for Fire Sorvtce 2 Januajy 2016
Memo of Understanding
Nbcrtville
5-HT ,,wkv.as Mv ur'. Mayor and Council Request for Action
January 27, 2016
SUBJECT: FIRE DEPARTMENT- ALBERTVILLE/OTSEGO TIRE SERVICE
Ri, COMMENDATION: It is respectfully requested that the Mayor and City Council consider
the following:
MOTION TO: Approve the Memorandum of Understanding with the City of Otsego to
continue to explore a potential Joint Powers Agreement (JPA) for Fire Services, approve the
State of Minnesota Shared Services Grant Contract, and approve the proposal from Springsted,
Inc. to study shared fire service.
BACKGROUND: The Cities of Albertville and Otsego have been in discussions of a potential
JPA for Fire Services for several months. These discussions have included the Joint Fire
Advisory Committee and both City Councils.
In October/November 2015, both City Councils authorized the respective signing of letters of
support for the Fire Department to submit an application to the Minnesota Department of Public
Safety/State Fire Marshal Division Shared Services Grant Program.
In December of 2015, the Albertville Fire Department received a grant award in the amount of
$23,000 from the Shared Services Grant Program to further explore the option of a JPA. The
allowed project scope outlined in the grant award states:
"study and evaluate the possibility of a joint powers agreement between the cities of Albertville
and Otsego for a j oint File Department. The study will address options for both cities who have
each identified difficult issues that need to be addressed as part of a joint powers agreement.
These issues include: determining value of existing assets, appraisal of Albertville Fire
Department property, vehicles, equipment, buy- in formulas, voting members/board
representation, budget -process, dispute resolution, and timing/location of new facilities, perform
Otsego Station location study ownership of assets, etc.
The purpose of the feasibility study performed by the consultant must include ways to increase
efficiency, effectiveness and/or cost saving methods through voluntary and cooperative shared
services. The report must include possible alternatives for the entities to share fire and rescue
services."
Springsted, Inc. has submitted a proposal to evaluate shared fire services in the Cities of
Albertville and Otsego, which covers the scope of the grant award.
The Joint Fire Committee suggested a Memoranda n of Understanding with the City of Otsego
documenting each group's desire to continue to explore a potential JPA for Fire Services. The
Joint Fire Committee also supports approval of the State of Minnesota Shared Services Grant
Contract and working with Springsted, Inc. to evaluate shared fire service.
M;\Public Data\City Council\Council Packet information\2016\020116\2016-02-01 JPA MOU & spriitgstead Study RCA.doc
Meeting Date; February I, 2016
Agenda Page 22
Mayor and Council Request for Action — February 1, 2016
AlbertviIIe/Otsego Fire Service Page 2 of 2
KEY ISSUES:
• The Fire Department has received a grant award in the amount of $23,000 from the
Minnesota Department of Public Safety/State Fire Marshal Division Shared Services Grant
Program.
• Springsted, Inc. has submitted a project proposal which covers the project scope outlined in
the grant award contract. Springsted proposes to complete study for a lump sum amount of
$25,000,
• The grant project must be completed by June 30, 2016'
POLICY CONSIDERATIONS: All City -related contracts and proposals require City Council
approval.
FINANCIAL CONSIDERATIONS: The Fite Department has received a reimbursable grant
award in the amount of $23,000 from the Minnesota Department of Public Safety/State Fire
Marshal Division Shared Services Grant Program. Included in this grant award is a required City
contribution of $2,555, which will be paid by fire capital.
LEGAL CONSIDERATIONS: The City Council has the authority to enter into contracts to
receive funding and to contract for services on behalf of the City.
Responsible Person/Title: Eric Bullen, Fire Chief
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments: Memorandum of Understanding
State of Minnesota Shared Services Grant Contract
Springsted Proposal to Evaluate Shared Fire Services
MAPublic Data\City Council\Council Packet Information\2016\020116\20L6-02-01 JPA MOU & Springslead Study RCA.doc
Meeting Date:l:cbroxy 1,20[6
Agenda Page 23
Springsted
Proposal to Evaluate Shared Fire Services
The City of Albertville and the City of Otsego, Minnesota
Work Plan January 2016
Objective(s)
The purpose of this project is to study and evaluate the possibility of a joint powers agreement
between the cities of Albertville and Otsego for a joint Fire Department. Options for each city
relative to identified issues will be addressed as they related to the joint powers agreement. These
issues include:
• Determining value of the City of Albertville's existing assets:
o Fire Department property
o Vehicles
o Equipment
• Buy- in formulas
• Board representation and voting members
• Budget process
• Dispute resolution
• Timing/location of new facilities
• Ownership of assets
In addition, the location of the Otsego Fire Station will be evaluated with a specific site
recommendation.
Our approach would be as outlined below:
Task I - Gather and Review Background Information
➢ Current Albertville fire assets
o Fire Department building
• Original Cost
• Current book value
• Current assessed value
o Fire Department equipment including original cost and current book value
• Firetrucks
• Rescue trucks
• Water tankers
• Other equipment (communication, safety, other)
➢ Historical financial information for Albertville Fire Department
City of Albertville, Minnesota
Proposal to Evaluate Shared Fire Services
January 2016
Page 2
o Previous three -years actual operating expenses
0 2016 budget
o Five-year C.I.P.
➢ Agreements for providing Fire services between the City of Albertville and other
entities
o Historical calls for service by location (past three years)
➢ Agreements for Fire services between Otsego and other entities
➢ Any previous studies or other information related to a potential joint powers agreement
➢ Other relevant information
➢ Conduct appraisal of the City of Albertville Fire Department assets
➢ Conduct appraisal of the City of Albertville Fire Department property
➢ Meet with Albertville Fire Chief to discuss current and future services
➢ Meet with the City of Albertville to discuss our background review
Task it - Meet With Cities to Discuss Potential Joint Powers Agreement Terms
➢ We will meet with each City individually to gain an understanding of their position on
a joint powers agreement including:
o Board representation
o Board authority
o Voting
o Budget process
o Buy in of Albertville current assets
• Fire Department equipment
• Fire Department property
o Timing/location of new Fire Station
o Dispute resolution
o Support functions
• Accounting
• Payroll
• Human resources
• Insurances
• Purchasing
• Communications
• Legal
• Annual audit
• Other
o Cost allocation formula
• Operating
• Capital
o Dissolution
➢ Identify areas of agreement and non -agreement
➢ Based on the meetings with each City, we will develop a framework for a joint powers
agreement
City of Albertville, Minnesota
Proposal to Evaluate Shared Fire Services
January 2016
Page 3
Task III - Present Joint Powers Agreement Framework
➢ We will present the framework for a joint powers agreement in a workshop session
with both Cities. The framework will include provisions for all major areas of the joint
power agreement including:
o Board representation
o Board authority
o Voting
o Budget process
o Buy in of Albertville current assets
o Timing/location of new Fire Station
o Dispute resolution
o Support functions
o Cost allocation formula
o Dissolution
➢ Based on the results of the workshop, we will modify or change the major areas as
appropriate.
Task IV - Prepare and Present Report of Findings
➢ Springsted will prepare a Report of Findings that will explain in detail our findings and
recommendations for the framework of a joint powers agreement for Fire Services
➢ We will provide 15 bound copies and one electronic copy of the Report in PDF format
➢ We will present the Final Report to the Cities in a workshop session
City of Albertville, Minnesota
Proposal to Evaluate Shared Fire Services
January 2016
Page 4
Compensation
We propose to complete this study as described in this proposal for the lump sum fee of $25,000 which
includes all direct and indirect costs. We will complete the project within 10 to 12 weeks of receiving
the notice to proceed provided that all necessary information can be obtained in a timely manner and
further provided that City staff and officials are available for meetings as needed by the schedule.
Springsted would invoice for the work based on the schedule shown in the table below.
Crrtulative
Percentage �;�
Pentage
rceoiced
Time`of Invoice „ `
Inuoicea
Inu
Completion of Task II
40%
40%
Completion of Task IV
60%
100%
Additional Work
Should the City of Albertville request and authorize additional work outside the scope of services
described in this proposal we would either negotiate an additional fee based on the added scope or if the
City prefers we would do the additional work on an hourly basis at our standard hourly fees plus any
related out-of-pocket expenses. Additional work would include work outside the scope of services as
agreed to including, but not limited to:
Work related to a special request
Additional on -site meetings
Additional data gathering and analysis
For City of Albertville, Minnesota For Springsted Incorporated
In
Date:
Eon
Date:
Title: Title: Executive Vice President