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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 10, 2020 5 B. Lake Johanna Fire Department Station Cities Agreement City Administrator Perrault stated on July 13, 2020 The City Council discussed and provided direction regarding the LJFD cities agreement that will be needed prior to moving forward with the acquisition of land off Pine Tree Drive for a future fire station. The major changes that were made following that special work session are noted below: • (Section 2.3) The City Council agreed that one of the three cities, if needed, will bond for the construction of the new station. Furthermore, future debt service payments on the bonding will be made in accordance with the cost share formula, which is updated annually. • (Section 2.5) The no later than construction date will be June 30, 2026. • (Section 2.7) The Council agreed to language regarding a successor organization utilizing the station should LJFD cease to serve the cities. City Administrator Perrault reported these changes were preliminarily discussed with the LJFD Board, and there appeared to be general agreement between the three cities. At the board meeting, additional language (section 2.8) was requested regarding the sale of the land should the new station not move forward. This language is included in the draft for tonight's review. If Council is comfortable with this updated agreement, the three cities will bring this document forward for formal approvals. Following approval of the agreement, the fire department can move forward with the land acquisition. The fire department is still in its due diligence phase through August 21, 2020 and would need to close by September 21, 2020. Following the land acquisition, the fire department would have a construction start date of no later than June 30, 2026; other than this date, there is not a timeline for construction of the new station. Mayor Grant questioned what would happen if the LJFD were to dissolve or stop providing services to Arden Hills. Councilmember McClung reported this was addressed in Section 2.8. Further discussion ensued regarding the reimbursement language within the agreement. Councilmember Holmes stated she was troubled by the existing language and recommended an appraisal be completed on the fire station before reimbursements were made. Mayor Grant suggested the reference to the Consumer Price Index be changed to the Inflation Index. Councilmember Holmes asked if a real estate broker or real estate lawyer had reviewed this language. City Administrator Perrault commented this language had not changed since the Council reviewed this document in July. He noted this language originated from himself and City Attorney Jamnik. Mayor Grant indicated he supported the proposed language.