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Information regarding the potential transition to a fire district <br />9/14/2023 <br />Notes <br />......................... Y ...................................................................................................................................................................................................................... r ..................................................................................... <br />Answer :Important decisions related to staffing and facilities have been in conversations at the board :Statement from UFD Admin and Brad <br />:level for several years and are the primary driving factor forth is discussion. These are costly Martens <br />::and complex decisions which must now be made in the near future. The current governance <br />:structure of the board and past practice of getting all three cities to agree unanimously on <br />:decisions has proven to be challenging. This has led to the discussion of anew governance <br />Imodel of afire district in order to streamline the decision making process. Afire district board I <br />:would have the only vote for decision making as compared to the current model and practice I <br />:of having majorities of three city councils approve decisions. <br />Question 20 Mhat if any deadlines exist for making this decision? <br />................................ ...................................................................................................................................................................................................................... .................................................................................................... <br />Answer :There are no official deadlines however there are things that could be impacted by timing such::Opinion from UFD Admin <br />:as the ability to accept state funding or when the first "income" check would be received from <br />lRarnsey County as it relates to funds to cover operating costs. <br />Question 21 ::What are the legal costs estimated for this process? <br />................................. ? ...................................................................................................................................................................................................................... a.................................................................................................... <br />Answer Missolving the non-profit and transfering assets to the fire district etc. could cost upwards of ::Opinion from attorney Erich Hartmann <br />::$15-20K. Costs to create the fire district are estimated to be $5-10K. <br />Question 22 1 How would the new building on Pine Tree be funded through a fire district? <br />............................................................................................................................................................................................................................................................................................................................................................ <br />Answer ::The Fire District can incur debt for capital projects that would be paid for by direct taxes. ::Minn. Stat. § 144F.01 <br />Question 23 Mow would additional staffing be funded through a fire district? <br />............................................................................................................................................................................................................................................................................................................................................................ <br />Answer :Staffing would be paid for through the operating budget which is part of the levy. :Opinion from UFD Admin <br />Question 24 Mhat would happen if one city did not support moving to a fire district? <br />............................................................................................................................................................................................................................................................................................................................................................ <br />Answer I Not every city needs to participate. To create a fire district, two or more cities are required to ::Opinion from UFD Admin <br />participate. <br />Question 25 lHow would CIP purchases be funded in the initial years of a fire district? <br />................................ ...................................................................................................................................................................................................................... p.................................................................................................... <br />Answer ::All three cities have savings for fire department CIP. Those funds need to be transferred to the::Opinion from UFD Admin <br />I Fire District. Cloquet Fire District, for example, is still requiring assitance from their cities <br />because they started with a $0 bank account. The savings already realized by the cities <br />:shouldn't become a "bonus" to the cities by transferring that liability to the fire district. <br />Question 26 Mhat happens to the Shoreview owned stations? <br />................................ ...................................................................................................................................................................................................................... ................................................................................................... <br />Answer :Shoreview, who owns St. 130 and 140, could sell or lease those two stations to the Fire ::Opinion from UFD Admin <br />District. <br />Question 27 1 Does the Fire District have the ability to incur debt? <br />................................ ...................................................................................................................................................................................................................... .................................................................................................... <br />Answer Yes. Minn. Stat. § 144F.01 <br />Question 28 : :What fire department dissolution options are there? <br />............................... ...................................................................................................................................................................................................................... .................................................................................................... <br />Answer :There are two dissolution options per the contracts. ::Reference all three individual contracts <br />::Fire Department Initiated: ... assets shall be conveyed to a successor organization which ibetween the cities and the fire department <br />provides Fire Protection Services to [all three cities]; or, if a successor organization does not <br />::provide Fire Protection Services to all three cities, assets shall be conveyed to the [three cities] <br />I in a manner and in the proportions deemed appropriate by such cities. <br />!City Initiated: ... assets shall be liquidated. <br />Question 29 Are there another option to change the governance model to streamline the decision making <br />i process without transitioning to a Fire District? <br />...... .......................... . ...................................................................................................................................................................................................................... ................................................................................................... <br />Answer ::Fire Department/City Contracts could be updated. ::Opinion of the UFD Admin <br />UPA Agreements could be updated. <br />:Fire Department Bylaws could be updated. <br />Question 30 1 How does the bond rating get set for the district to incur debt? <br />................................ .................................................................................................................................................................................................................. .................................................................................................... <br />Answer <br />lCity Finance Department <br />