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ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 17, 2010 7 <br /> LD Lake Johanna Fire Department Contract Budget Discussion (continued) <br /> Mayor Harpstead suggested that policies be put in place as the department was becoming a full- <br /> time operation. <br /> Councilmember Holden agreed the department needed to function as a real organization. <br /> Finance Director Iverson reviewed the audit report and stated the department does not have <br /> pledged collateral on their funds. The funds for the department were only FDIC insured up to <br /> $25000. <br /> Mayor Harpstead stated the department clearly exceeds the $250,000 amount. <br /> Finance Director Iverson stated according to state statute this was not a correct policy. The <br /> other cities did not realize this discrepancy and some concern was expressed at the last meeting. <br /> Mayor Harpstead indicated the fire department does not want to feel like they need to hire <br /> someone to address the financial concerns,but would benefit from assistance from the City. <br /> Councilmember McClung explained the plan at this time was to have a six year transition period <br /> within the department to roll out of six 24-hour fireman and the closing of Station 1. Additional <br /> personnel will be called in if necessary. He asked if the Council was in favor of this plan. <br /> Councilmember Holmes was not in favor of the plan. She questioned how units would respond <br /> to all of Arden Hills with the railroad tracks. The department would need to prove to the City that <br /> all areas of the City could be responded to in a timely manner. Additional concerns were raised if <br /> it was necessary to have the fire department respond to all medical calls when Allina was also <br /> present. <br /> Councilmember Holden felt that Fire Station 1 has already been closed. There was only one <br /> truck at this site and a limited number of runs are being sent from this site. She was concerned <br /> that all of the equipment would be sent to the Station on Lexington Avenue, which has the fewest <br /> number of calls. <br /> Councilmember Grant felt the coverage would be sufficient in comparison to volunteers that <br /> have to respond. He did express concern about the train and railroad tracks and how this would <br /> affect response times. <br /> Mayor Harpstead indicated the duty crews appear to be a better, more cost effective, way for the <br /> department to respond to the needs in Arden Hills in the event of a fire. He was not convinced <br /> that a volunteer fire department will work long term. With that, the newer stations would be more <br /> appropriate. <br /> Councilmember Holden stated the department itself did no maintenance on Fire Station 1, which <br /> has created the problem. Shoreview has the majority of the votes at this time and they have <br /> moved the department in the direction they chose. <br />