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STAFF REPORT <br />TO: Mayor Keis and Members of City Council <br />FROM: Chris Heineman, City Administrator <br />DATE: January 13, 2021 <br />RE: 2021 Little Canada Fire Department Contract <br />ACTION TO BE CONSIDERED: <br />Motion to Approve the 2021 Little Canada Fire Department Contract. <br />BACKGROUND: <br />Attached is copy of the annual contract with the Little Canada Fire Department for 2021. The <br />budget numbers were updated to reflect the City of Little Canada’s adopted budget. The City <br />agrees to pay the following contracted amounts to the Little Canada Fire Department for fire <br />protection services: <br />a.$369,688 shall be paid in quarterly installments. The City will issue the first quarterly <br />check immediately following the first City Council meeting of the contract year. <br />Subsequent quarterly payments will be issued immediately following the Council <br />meetings preceding April 1st, July 1st, and October 1st. <br />b.$32,537 or the “required contribution” as calculated pursuant to statutory requirements <br />for deficit retirement associated with the fire relief association, whichever is greater, <br />shall also be paid in quarterly installments for Little Canada Fire Relief funding. This <br />contribution will be increased on an annual basis according to the Cost of Living <br />Adjustment (COLA) increase for staff based on the Consumer Price Index (CPI). <br />c.Within 30 days of receipt, the City shall remit to the Fire Department a lump sum <br />payment in the same amount of Fire State Aid received from the State of Minnesota. <br />RECOMMENDED ACTION: <br />City Administrator Heineman has reviewed the contract with Fire Chief Don Smiley and a copy <br />has been sent to the LCFD. Staff recommends approval of the contract as presented.