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21 1"r thr TO: Mayor and City Council FROM: Mark Casey, City Manager RE: Long Term Police Contracts DATE: July 22, 2014 Attached is the proposed five-year Contract Agreement for Police Services for both the cities of Falcon Heights and Lauderdale. The 2015 fee would be $634,386 for each city or a 2.8% increase from 2014. Falcon Heights and Lauderdale's City Councils have approved the proposed contract. We believe resiliency and sustainability are core attributes for which all cities strive. These elements span all aspects of a city's operation. Continuity of operations ensures continued functions of core city responsibilities over a wide variety of potential emergencies, along with the ability to perform day to day business. Our current model of contracting law enforcement services to Falcon Heights and Lauderdale has been very successful, and after 20 years of productive mutually beneficial services, begs for a longer-term contractual relationship that can accomplish several things: 1. Recognize our already long-term relationship. 2. Provide some stability and some assurances to all involved cities. 3. Stabilize the police department and help to recruit/retain qualified and experienced officers. All three cities mutually benefit from our current police contractual relationship, and all three cities can also benefit from a longer-term contractual relationship as well. Like private business, we all function better and more efficiency when there is stability within our business environment. Stability and strength are born from expectations, and when expectations can be reliably forecast, energy can be focused in areas of the greatest concern and benefit for the citizens we serve. In order to provide an appropriate level of comfort for all three cities, I proposed adding a "re -opener" or trigger to the term portion of the contract that if the fee increase is greater than 3 percent (3%). If the re -opener does not occur, then the contract is automatically renewed. If the re -opener does occur, then staff will meet with the respective cities. St. Anthony will continue to provide an annual budget and the annual meeting with the mayors would also continue.