12-14-2022 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator DATE: December 14, 2022 RE: 2023 Little Canada Fire Department Contract ACTION TO BE CONSIDERED: Approval of 2023 Little Canada Fire Department Contract BACKGROUND: Attached is the Fire Protection Contract with the Little Canada Fire Department for 2023. The City of Little Canada is authorized by law to provide fire protection services for all property in City of Little Canada, and the Little Canada Fire Department is a volunteer fire department that operates as a non-profit association under the laws of the State of Minnesota. The City agrees to pay the following amounts to the Little Canada Fire Department for fire protection services: a. $428,000 shall be paid in quarterly installments. The City will issue the first quarterly check immediately following the first City Council meeting of the contract year. Subsequent quarterly payments will be issued immediately following the Council meetings preceding April 1st, July 1st, and October 1st. b. $35,190 or the “required contribution” as calculated pursuant to statutory requirements for deficit retirement associated with the fire relief association, whichever is greater, shall also be paid in quarterly installments for Little Canada Fire Relief funding. This contribution will be increased on an annual basis according to the Cost of Living Adjustment (COLA) increase for staff based on the Consumer Price Index (CPI). c. Within 30 days of receipt, the City shall remit to the Fire Department a lump sum payment in the same amount of Fire State Aid received from the State of Minnesota. City Administrator Heineman has reviewed the Little Canada Fire Department budget request and the attached contract with Fire Chief Don Smiley and the Long Range Planning Committee. The 2023 contract is virtually the same as previous versions, with the addition of the following language in subsection 9: The Fire Department will be reimbursed for unforeseen operating expenses and capital expenditures included the City of Little Canada’s five-year Capital Improvement Plan, upon submission of proper documentation for the expenditure. Unforeseen reimbursements will be funded from the fund balance of the General Fund. The contract amounts above have also been included in the City’s final recommended budget and levy for 2023. RECOMMENDED ACTION: Staff recommends approval of the 2023 Fire Protection Contract as presented.