2016-06-06 City Council Minutes - Workshop"'�
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CITY HALL - COUNCIL CHAMBERS
CITY COUNCIL WORKSHOP
Monday, June 6, 2016
APPROVED MINUTES
1. Call to Order
Mayor Hendrickson called the meeting to order at 6:04 p.m.
Present: Mayor Hendrickson and Council members Olson, Sorensen, and Vetsch
Absent: Hudson
Others Present: City Administrator -PWD Adam Nafstad, Finance Director Tina Lannes, Fire
Chief Eric Bullen, and City Clerk Kimberly Olson
2. Shared Fire Services Study
Nick Dragasich and Mark Nagel, of Springsted Inc., were present at the meeting to review the
draft study on shared fire services.
Dragasich stated that an initial matrix was developed to show the areas of agreement and
disagreement between the cities of Otsego and Albertville in regards to shared fire services.
Disagreement regarding board representation, board authority, operating cost formula, and
dissolution were identified during the preliminary meetings.
Sorensen questioned the difference in opinion regarding dissolution. Dragasich reported that
Albertville would like a five year notice and special legislation to convert to a fire district if the
disagreement cannot be settled. Otsego preferred a two year notice. Bullen stated that Otsego
was not comfortable with special legislation without the opportunity for both cities to weigh in;
they did not care for it to automatically go to special legislation. Sorensen stated that both cities
would still need fire service and Dragasich replied that fire service would continue until there is
an outcome.
Dragasich reviewed how they valued Albertville's current fire trucks. He stated there was no one
in Minnesota to appraise the trucks and due to the short timeline and cost to have it appraised on
site, they utilized an appraiser from California. Sorensen indicated he was surprised how low the
appraisal came in. Bullen stated that the appraisal is for the truck chassis only and does not
include any equipment carried on the vehicles.
Dragasich stated that Otsego requested the timing and location of a second fire station be
removed from the scope of Springsted's study as Otsego would prefer to build and own their
own fire station. Nafstad reported that Otsego may want to combine other city facilities
alongside the fire station. Albertville was agreeable to the concept.
Page 1
Dragasich listed Springsted's proposed terms that appeared to be agreeable to both cities:
• Equal representation from both cities and an appointed impartial mediator to break tie
votes
• If a budget cannot be approved by both cities, the Fire Department will continue to be
funded under the previous year's budget
• Each city will build and own its own fire station with operating costs being the
responsibility of the joint department
• Otsego will compensate Albertville for the value of the current assets
• Disputes will be resolved by a mediator chosen by lot
• The city that provides support functions will be compensated for those support functions
• Operation costs will be based on each city's portion of total taxable tax capacity
• Dissolution will require a five year notice and assets will be divided based on each city's
contribution to their acquisition
Council discussed dissolution scenarios and how Albertville's fire department would be left if
the joint department dissolved. The Council had concerns with keeping the department in the
same status as it was when it enters into the agreement. Bullen stated this is a bigger issue for
Albertville than Otsego. Nagel reported the longer the two entities are in the joint department
the less likely dissolution is due to the expense of creating a stand -alone department.
Dragasich outlined the other alternatives to a joint department such as:
• Current contract arrangement for fire services
• Otsego to start its own fire department
• Otsego to contract fire services from either Elk River or Rogers or both
Nafstad reported that both he and Bullen had submitted comments on the study to Springsted and
Springsted will be meeting with the City of Otsego next week. He indicated there may be slight
changes to the study before it is submitted to the State. Dragasich stated he will report back on
any comments from Otsego.
3. Adjournment
The meeting was adjourned at 6:58 p.m.
y submitted,
Kimberly A/Olson, City Clerk
City Council Meeting Minutes Page 2
Workshop Meeting of June 6, 2016