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May 26, 2009 <br />Justin Miller <br />City of Falcon Heights <br />2077 West Larpenteur Avenue <br />Falcon Heights, Minnesota 55113 <br />Dear Justin: <br />Enclosed is the Contract Agreement for police services for 2010 and 2011 between the City of <br />Falcon Heights and City of St. Anthony. The increases for each contract year are 2% in 2010 <br />and 2% in 2011. In 2010, the City removed $11,000 for dispatching services. This will be paid <br />to Ramsey County by each city. <br />The proposed increase is necessary to offset increased costs in the following areas <br />✓ Health insurance premiums increased 16% and each year continues to rise at <br />double-digit levels. <br />✓ Increasing costs of maintenance (labor, tires, parts & etc.). <br />✓ Volatility of fuel costs. <br />✓ PERA (Employer pension contributions were increased by the State). <br />The proposed increase listed below is contingent on a favorable approval of the St. Anthony City <br />Council. The St. Anthony City Council will schedule approval after Falcon Heights approves the <br />contract. Here is a current summary of the cost for services: <br />2009 <br />Proposed <br />Proposed <br />Contract <br />2010 <br />2011 <br />$567,250 <br />$578,595 <br />$590,167 <br />In addition, we have changed language on the Joint Advisory Committee to meet once per year, <br />changed the Termination Agreement so it is consistent with both cities. Also, dispatch <br />expenditures will be paid for by each city. If you have any questions, please contact me at 612- <br />782-3311 or email at mike.mornson@ci.saint-antlrony.mn.us <br />Sincerely,— <br />6// <br />Michael J. Mornson <br />City Manager <br />Enclosures <br />3301 Silver Lake Road, St. Anthony, Minnesota 55418.1699 • www.ci.sainl-anlhoay.run.us • (612) 782-3301 • FAX (612) 782-3302 <br />Our Mission is to be a progressive and livable community, a walkable village, which is safe and secure. <br />23 <br />