4.1. SR 08-09-2010 - Laserfiche WebLink

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number of calls in Otsego has decreased, the formula no longer generates enough revenue to cover the costs of providing fire service to Otsego. The current contract payment is approximately $70,000 less than it was in 2008 because of the decrease in calls while the City's costs of providing fire service have increased during that time. Chief Cunningham, Tim Simon, and I met with Otsego City Administrator Mike Robertson and Finance Director Gary. Groen to discuss our proposal to change the method of calculating Otsego's cost of fire service. We proposed to Otsego that we change to a per parcel method of payment which is the same method Monticello utilizes in its contract with Otsego for fire service. This would result in more consistent charges to Otsego from year to year making budgeting easier for both cities; but most importantly, it would cover the actual costs of providing this service to Otsego. The Otsego City Council will be reviewing our proposal at their August 9 Council meeting. I recommend that the Council approve a change in the contract to the per parcel method. If the Council approves this change, staff will bring the revised contract back fox consideration at a future meeting. Attached is a letter from Chief Cunningham to Mike Robertson addressing this issue in addition to a letter on fire inspection services in Otsego. On the expenditure side of the fire department budget, also attached is a memo from Scott Schmitt, President of the Elk River Fire Relief Association, regarding the City's 2011 contribution to the Relief Association. Due to an adjustment in the data entered on the form calculating the contribution, the required contribution has increased resulting in the need to increase the budgeted contribution by $8,500. This adjustment is not included in the budget attached to this memo. Another policy change to staff is bringing forward fox consideration is the duty officer program. A memo from Chief Cunningham addressing this issue in detail is attached. There is a cost associated with implementing this program that is not included in the attached budget. If the Council concurs with the recommendation to implement a comprehensive duty officer program, the cost will be added to the budget. Staff will be prepared to go over this proposal in detail at the meeting. Emergency Management It is imperative that the City maintain its emergency siren warning system at all times. In order to do that, a siren replacement and an upgraded siren control system are included in the budget. Chief Cunningham will provide more information on the siren control system at the meeting. The siren replacement is consistent with past practice of replacing a siren each year with the exception of 2010 when it was determined that one was not needed. Conclusion Please remember to bring along to the meeting the summary revenue, expenditure, overtime, and capital outlay pages that were distributed prior to last week's meeting. If you need another copy, please contact me. Further, if you need more information on any of these department budgets prior to the meeting, please let me know.