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Home My WebLink About10-09-23-SWSMayor: David Grant Councilmembers: -A DEN HILLS Brenda Holden Emily Rousseau Special City Council Tena Monson Tom Fabel Work Session Agenda October 9, 2023 5:30 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651-792-7800 Website : www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. This meeting can be accessed remotely by joining via Zoom (see Public Inquiries/Informational below for instructions) This meeting will be streamed live on local Cable Channel 16 and available for playback on our website. CALL TO ORDER - Declare October 9, 2023 a Non -Holiday to Conduct City Business 1. PUBLIC INQUIRIES/INFORMATIONAL ITEMS Members of the public are invited to remotely monitor the City Council meeting via Zoom using the below link. Members are also welcome to provide public comments during this section of the agenda via Zoom. Members wishing to provide public comment must use the "raise hand" feature in Zoom to identify themselves as wanting to make a public comment and will be called upon to provide their public comment during this portion of the agenda. Those that speak must state their name and address for the record. HTTPS://US02W EB.ZOOM. US/J/88489026952 *Please make sure you have the most up-to-date version of Zoom to participate in the meeting* This is an opportunity for citizens to respectfully bring to the Council's attention any items which are relevant to the City. In addressing the Council, you must first state your name and address for the record. Comments shall be limited to three (3) minutes or less. Written documents may be distributed to the Council prior to the start of the meeting to allow a more timely presentation. Council will generally not respond at the same meeting where an issue is initially raised by a member of the public but the Council may refer the issue to staff for further research and possible report or action at a future Council meeting. 2. RESPONSE TO PUBLIC INQUIRIES 3. AGENDA ITEMS 3.A. Lake Johanna Fire Department (LJFD) Fire District Discussion Dave Perrault, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 3.B. TCAAP Planning Discussion Dave Perrault, City Administrator Documents: MEMO.PDF 3.C. Lake Johanna Blvd Speed Display Sign Dave Perrault, City Administrator Documents: MEMO.PDF 4. OPTIONAL ITEMS 4.A. Food Donations Discussion Dave Perrault, City Administrator Documents: MEMO.PDF 4.B. Council Tracker Dave Perrault, City Administrator Documents: MEMO.PDF 5. COUNCIL/STAFF COMMENTS ADJOURN AGENDA ITEM — 3A ,-ARZEN HILLS MEMORANDUM DATE: October 9, 2023 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: LJFD Fire District Discussion Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration Council should consider providing direction on their interest in a potential fire district. Background The City Council is being asked by the Lake Johann Fire Department (LJFD) Board of Directors on their opinion if a fire district is the right model for the LJFD. The City Council received a presentation in July on this concept and the memo for that meeting is attached under Attachment A. At that meeting, Council did not come to a definitive conclusion either way on whether or not they would support a fire district, but rather supported the three City Councils getting together and discussing a fire district. The fire department held a public meeting and invited all three City Councils to attend on September 19th. While no full City Council was in attendance, members of each Council (Arden Hills, Shoreview, and North Oaks) all had representatives present. The memo from that meeting is provided under Attachment B. Following the three Cities meeting, the fire board met and discussed the previous meeting. The fire board's direction was to bring back the discussion of a fire district to each City and see if they are comfortable making a recommendation for or against. Common questions that were apparent in the discussions regarding a fire district were: • Taxing structure — market capacity versus a predefined formula • Voting structure — how many votes for each City • Authority of district member — what will the expectation be for each of the fire district board members, and how will information and decisions be made with regards to their respective City Councils • Tax levy control — how will Cities keep fire district levy in check • Governance — if the current governance model is inefficient, can it be changed to be more efficient Page 1 of 2 One interesting note since these meetings occurred is the fire department was made aware that they are a recipient of the SAFER Grant; this grant will fund new full-time staff for 2024, 2025, and 2026; following 2026, the Cities will be responsible to fund the positions. Following this meeting, the City's preference will be brought to the next fire board meeting. Budget Impact N/A Attachment Attachment A: July Fire District Background Memo Attachment B: September Three City Meeting on Fire District Memo Page 2 of 2 Attachment A ,-ARZEN HILLS MEMORANDUM DATE: July 10, 2023 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Fire District Discussion Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration The Lake Johanna Fire Department Board has requested each City discuss and provide feedback on the concept of a fire district as it relates to the governance of LJFD. Background The LJFD Board has been considering the possibility of a fire district since a legislative change was made that made it easier to create a fire district. This has been in tandem with reviewing options for additional staffing, as well, as the construction of a new fire station. Tonight's discussion is intended to be focused on the possibility of a fire district, updates have also been provided regarding staffing and the proposed station. Brief History In 2018, the LJFD underwent a needs study, link is below: (https://www.cityofardenhills.org/DocumentCenter/View/353 8/LJFD-Needs-Assessment) In short, the study indicated a need for a new station for additional spaces for equipment, training, administration, etc. Ideally, the station would be located near County Road E but West of the railroad tracks that make response difficult from the Victoria Station. Following completion of the new station, it is anticipated the Victoria Station would be closed, and the current station on Lexington and County Road I would be converted to a 24/7 staffed station. Today, the Lexington Station is only staffed during the day by command staff, and the Victoria and Hodgson Stations are staffed by 24/7 Duty Crews. The map below shows the location of each station (marked by circled red F's) and the proposed station (orange marker with red arrow pointing at it). Page 1 of 3 a t..,0,----------- -y . I The new station location will provide better response times to both southern Arden Hills and Shoreview; converting the Lexington Station to 24/7 will also provide better coverage to North Oaks, northern Shoreview, and TCAAP when built. Between 2019 and 2021, the Arden Hills City Council, along with the other two cities, passed resolutions of support for the new station, and have also approved a Joint Powers Agreement to facilitate future funding of the new station. Along with the new station project, the department has also been discussing staffing, specifically hiring at least six new full-time Captains. The board did recommend that the new staffing was their preferred option moving forward. The department previously applied for a SAFER Grant and was unsuccessful at the time, and is pursuing one this year, too. The fire department gave a presentation to the City Council in July and August of 2022, and the City Council was supportive of applying for the SAFER Grant and the associated new positions. Fire District The board has also been discussing the possibility of creating a fire district, which would be its own separate taxing authority. A fire district is viewed as a more efficient form of governance versus the current board as the fire district board could independently approve projects. The fire district would bring the fire department off of each City's tax rolls, but would still have implications to each City. The first being how would the fire department's cost be split amongst the cities. The cities would have the option to split the cost based on a formula, which could be similar to the one we use today. Another option would be to have it based on overall market value. The Page 2 of 3 market value option would likely increase the cost to North Oaks, while decreasing the cost to both Arden Hills and Shoreview (we would see our percentage drop from 25 percent to 22 percent). It is believed that should the cities use a formula with the fire district that the cities would still then be responsible for presenting the fire district's items through our Truth in Taxation process, which may give the optics to residents that the fire district taxes are part of the city's taxes. Another point to consider, is while the fire district would still have one elected from each City for representation, the district would be acting independently at the direction of the fire district board. Attached is information that has been presented to the current board for consideration (see Attachment A); the board has not yet made a recommendation for or against a fire district, but is looking for feedback from the City Councils. Constructing a New Headquarters The three cities, via a Joint Powers Authority (JPA), have been awarded approximately $6.37 million in State funding for the construction of a new headquarters (must be spent or encumbered by 12/31/2027). Recent estimates have put the cost of the station close to $19 million, which leaves approximately $13 million to be paid for by the three cities. Arden Hills portion of this would be 25 percent, or $3.25 million. Should the three cities decide to move forward with construction, the City of Arden Hills would likely need to bond for its portion of the project. Assuming a 5 percent interest rate, it can be assumed the annual cost to the City would be approximately $260,788 per year. Our current levy for the General Fund is $4,098,680, and our overall levy is $4,718,680, this addition would equate to a 6.4 percent increase and a 5.5 percent increase in the General Fund and overall levy, respectively. New Staffing The department is seeking to hire additional full-time staffing in the upcoming years. To help offset those costs the department is pursuing a SAFER Grant through the Federal Government, which would pay for the new positions for the first three years (an approximate total value of $2 million). The cities would be responsible to pay for the positions following the grant period. Regardless if the grant is received or not, the fire department is planning to have six of these new positions in next year's budget. At full cost, the new positions would cost approximately $900,000, with Arden Hills' portion being 25 percent, or $219,502. Not accounting for the future fire station cost increase, this alone represents a 5.4 percent and 4.6 percent increase to the General Fund and overall levy, respectively. For 2024, the fire department is anticipate hiring these positions in March and in July, which would result in a cost savings. For 2024, the costs for Arden Hills due to the Captains is estimated $138,001. Budget Impact The City will need to consider how to balance current spending priorities along with the proposed fire department costs. The City could push out the fire station project and increase the levy in anticipation of construction. The proposed 2024 budget for the department is attached and included in the budget are summary tables that provide for different scenarios with and without the new station. Attachments • Attachment A: Fire District Information Presented to the LFJD Board • Attachment B: Proposed 2024 LJFD Budget Page 3 of 3 Lake Johanna Fire Department Board of Directors Fire District Discussion Revised 6/20/23 Why the interest in creating a Fire District? In 2021, the Minnesota State Legislature amended Statute 2020, section 275.066 Special Taxing Districts adding Fire Protection Special Taxing Districts under 2990.01 giving authority for two or more cities municipalities to establish a special taxing district to provide fire protection or emergency medical services within the area of the district. At a Board of Directors meeting, Arden Hills Councilmember and Board of Directors Representative Dave McClung informed the board members of this new legislation. At that time, it was generally agreed that this might be a good alternative for the cities to consider given significant future operating and capital funding needs in the future. Current Governance Model The Fire Chief reports to the Board of Directors. The Board of Directors consists of seven (7) Board Members allocated as follows: City Representatives Shoreview — 2 Board Members Arden Hills —1 Board Member North Oaks — 1 Board Member Fire Department Representatives At -Large — 3 Board Members The Fire Chief serves as the Chief Executive Officer and is responsible for day-to-day operations of the Fire Department, recommends policies and programs, has the authority to hire, discipline and terminate all staff. The Fire Chief prepares operating and capital budgets for the Board of Directors. Historically, if one city is not in favor of the proposed budget(s), the budgets are adjusted until all three cities are in favor. Historically, the board voting on approving budgets does not occur until all three cities are in favor of the budgets. Once the board approves the operating and capital budgets, each city must individually approve their percentage share of the budgets for the following year. The Board of Directors has adopted a "Fire Distribution Formula" based on the following criteria: 25% Population, 25% Households, 10% Market Value, and 40% Fire/EMS calls. For 2023, the cities' share of the budget is: Arden Hills 24.9%, North Oaks 14.4%, and Shoreview 60.7%. This formula is also averaged over a five-year period creating stability. For historical purposes, no city has gone up or down more than 1.4% in total between 2015 and 2023. Year over year, no city has gone up or down more than 0.5%. Highlights of the Current Governance Model: 1. Ensuring continuity within the business structure has proven to be difficult which leads to the revisiting of previously "decided" upon items which has led to significant delays to changes to meet today's needs. 2. While the cities do work well together, it can, at times, be difficult to operate by 100% consensus across all three cities and the board (four separate majority votes) which has led to significant delays to change to meet today's needs. 3. Although the history of "why" is known and understood, having subordinates (firefighters) as board members is no longer appropriate for the business. This is not a good business practice for the future. 4. Today, there is not a process to ramp up the budget to prepare for upcoming changes. Committing financially to anything beyond the next 12-month period is absent. Fire District Governance Model State law requires that Fire District Board Members must be made up of elected members of the governing body of the political subdivision and serve at the pleasure of that participant's governing body. One example of what the Board could look like with the current three -city makeup: City Board Representatives Arden Hills — 2 Board Members North Oaks — 2 Board Members Shoreview — 3 Board Members The Fire Chief would report to the Fire District Board. The Fire District Board may elect to form an Operating Committee. This committee would likely include the City Managers/Administrators from the member cities. This Operating Committee would meet monthly with the Fire Chief and other staff as needed, and report to the board at each regular meeting. The Operating Committee would likely have the authority to approve budgeted expenditures during monthly meetings. Non -budgeted expenditures would likely need to be approved by the Board. A list of bills would be provided to each member of the operating committee monthly. Special Taxing District State Statute allows for two taxing options for the Fire District: a.) The Board may levy a tax on the taxable real and personal property in the district. The proceeds of the levy must be used as provided in statute. b.) The Board may apportion its levy among the political subdivisions under a formula or method. The amount of the levy allocated to each political subdivision must be added to that political subdivision's levy and spread at the same time and in the same manner as provided by law for other taxes. The proceeds of the levy must be collected and remitted to the district and used as provided in this statute. Use of the Levy Proceeds The proceeds of the property taxes levied must be used to provide fire protection or emergency medical services to residents of the district and property located in the district, as well as to pay debt issued. Debt The district may incur debt under chapter 475 when the board determines doing so is necessary to accomplish its duties. In addition, the board of the district may issue certificates of indebtedness or capital notes to purchase capital equipment. Information regarding the potential transition to a fire district Notes Question 1 What is a realistic timeline to implement afire district? Answer It would likely take one-year to complete Opinion of Chief Boehlke Question 2 Will the fire department need to disband or dissolve? Answer The financial and operational functions can be kept separate or they can both be handled Opinion from attorney Erich Hartmann by the Fire District. In other words, two structures could be used: (1) the Fire District could be used merely to levy taxes, manage the budget, and handle the financial aspects only while the fire protection operations are accomplished by the Fire Department; or (2) the Fire District can handle all the financial and operational functions as an entity that directly employs firefighters, owns the fire stations and equipment, and is managed by a single board. The second option, the Fire District operating as a fire department, makes sense because it eliminates the redundancy of administering two boards and maintaining the Fire Department as a separate entity, including corporate and financial recordkeeping and reporting. It would be appropriate to dissolve the Fire Department after the Fire District has been established and the merger is completed. Dissolving a nonprofit corporation such as the Fire Department involves several steps, as outlined below, and takes several months to complete. Thus, you should anticipate an interim period during which the Fire Department will continue to operate in concert with the Fire District until all assets and liabilities of the Fire Department are transferred to the District and the Fire Department is dissolved. Question 3 What would the fire department need to do to become part of the new fire district? Answer An initial overview of the steps to transition from the Fire Department to the Fire District follows: a. Each municipal partner must approve a resolution and an agreement concerning the Fire District, as outlined in Joe Kelly's December 27, 2021, memo and pursuant to Minn. Stat. § 144F.01. b. The municipal resolution or agreement must specify that the Lake Johanna Firefighters Relief Association pension plan is associated with the Fire District. § 144F.01, Subd. 2(c). c. The Fire District must file the establishing resolution and required agreements (and any amendments) with the Minnesota Department of Revenue. d. Bylaws of the Fire District should be prepared for execution upon formation of the Fire District. e. I anticipate that the Fire Department will dissolve, following this process: a. Prepare resolutions of Fire Department board and members approving the dissolution of the Fire Department and transfer of all its assets to the Fire District. b. Prepare notice of meeting of Fire Department members stating that a purpose of the meeting is to consider dissolving the corporation. c. Hold meetings of board and members. d. Proceed with dissolution (Minn. Stat. § 317A.701(a)(2)): i. Prepare and file Notice of Intent to Dissolve with Secretary of State. ii. Submit Notice of Intent to Dissolve required by Minn. Stat. § 317A.811 with Attorney General. iii. Commence winding up process (§§ 317A.725 and 317A.735). 1. Collect any debts owed to the Fire Department. 2. Pay or make arrangements to pay debts, liabilities, and obligations of the Fire Department. Chief Boehlke April 5, 2023 Page 3 3. Complete § 317A.811 requirements prior to transfer of Fire Department assets to Fire District. 4. Obtain waiver or satisfy 45-day notice period (to AG) in § 317A.811, Subd. 2. 5. Transfer assets in accordance with § 317A.735. a. Confirm adequate insurance is in place for the Fire District. b. Deed the real estate to the Fire District. c. Assign trucks, equipment, and personal property to the Fire District. 6. Submit to Attorney General a list of persons to whom assets were transferred pursuant to § 317A.811, Subd. 4. 7. Prepare and file Articles of Dissolution with Secretary of State. Opinion from attorney Erich Hartmann Question 4 What would the governance structure of afire district be? Answer The bylaws of the fire district would likely determine this; it is unlikely that firefighters Statement from Brad Martens would be part of that structure Question 5 Would the fire department be able to keep its tax-exempt status? Answer The Fire District will be exempt from tax as a special taxing district that operates a fire Opinion from attorney Erich Hartmann department. I recommend having an initial discussion now with your accountant. Question 6 What would the fire districts' budget and finance controls look like? Answer The bylaws of the fire district would likely determine this. Statement from Brad Martens Question 7 What staffing changes would be required for the fire district? Information regarding the potential transition to a fire district Notes Answer None are anticipated due to a move to a fire district. Statement from Brad Martens Question 8 How would moving to a fire district impact full-time and part-time firefighters day to day operational roles? Answer No changes are anticipated in the day to day operational roles. Statement from Brad Martens Question 9 Will the fire district be able to continue to send its part-time firefighters to the Lake Johanna Firefighters Relieve Association for pensions? Answer Yes Opinion from attorney Erich Hartmann Question 10 What happens to the fire department owned equipment and station? Answer All fire department equipment and St. 120 would become property of the fire district. Statement from UFD Leadership Question 11 How would the Pine Tree property be transitioned to the fire district? Answer The property would become Fire District property. Statement from UFD Leadership Question 12 How would the tax line item be listed on a property tax statement? Answer The Fire District will show up as an assessment similar to a school district. Statement from UFD Leadership Question 13 Who would vote to approve a fire district levy amount? Answer The Fire District Board of Directors. Statement from UFD Leadership Question 14 What would be the governance structure of the fire district board? Answer This structure would be developed by a group/committee that would be directed with Statement from UFD Leadership developing this and other details prior to the standing up of the Fire District. Reference Excelsior Fire District regarding their being an "operational committee" or "working group" that may include city staff and/or fire district leadership. Question 15 What is the budget impact to cities with a weighted levy compared to a tax capacity levy? Answer Question 16 What are the alternatives to a fire district? Answer Remain as we are. Transition to a single city department that could contract with others Statement from UFD Leadership for service. Question 17 Are any of the cities interested in taking over the fire department operations? Answer Question 18 Do two-thirds of the fire fighters need to approve the change to a fire district model? Answer Question 19 What is the urgency for discussing this topic now? Answer The demonstrated and agreed upon need for costly operational and capital investment is Statement from UFD Leadership driving this conversation. After a Fire District is established, the vote of that board is final and doesn't need three separate approvals by individual cities. Changing the funding mechanism streamlines the process of making necessary changes to our operation. Question 20 What if any deadlines exist for making this decision? Answer There are no official deadlines however there are things that could be impacted by timing Statement from UFD Leadership such as the ability to accept state funding or when the first "income" check would be received from Ramsey County as it relates to funds to cover operating costs. Question 21 What are the legal costs estimated for this process? Answer Question 22 How would the new building on Pine Tree be funded through a fire district? Answer The Fire District can borrow (bond) for capital projects that would be paid for by direct Statement from UFD Leadership taxes. The Fire District could also tax over time to save for capital projects. Information regarding the potential transition to a fire district Notes Question 23 How would additional staffing be funded through a fire district? Answer Staffing would be paid for through the operating budget which is paid for by taxes. Statement from UFD Leadership Question 24 What would happen if one city did not support moving to a fire district? Answer Not every city needs to particiapte. To create a fire district, two or more cities are required Statement from UFD Leadership to participate. Question 25 How would CIP purchases be funded in the initial years of a fire district? Answer All three cities have savings for fire department CIP. Those funds need to be transferred to Statement from UFD Leadership the Fire District. Cloquet Fire District, for example, is still requiring assitance from their cities because they started with a $0 bank account. The savings already realized by the cities shouldn't become a "bonus" to the cities by transferring that liability to the fire district. Question 26 What happens to the Shoreview owned stations? Answer Shoreview, who owns St. 130 and 140, would sell or lease those two stations to the Fire Statement from UFD Leadership District. Question 27 Answer Question 28 Answer Question 29 Answer Question 30 Answer MEMORANDUM DATE: December 27, 2021 TO: City of Shoreview FROM: Joe Kelly RE: Fire Protection District Introduction On July 2, 2021, the 2021 omnibus tax bill went into effect. Included in the bill was an authorization for local government units to create special taxation districts for fire protection. In order to create a fire protection special taxation district, the City must do the following: 1. It must enter into an agreement with other municipalities specifying how the liabilities of the district will be handled in the case of the district's dissolution 2. It may address how the tax levy will be apportioned among the participating jurisdictions (if not equal) 3. It must identify which fire relief association or account of in the voluntary statewide volunteer firefighting retirement plan. There can only be one association/plan, The agreement must be adopted no later than upon passage of the resolution establishing the district. The participating Cities must then adopt a resolution creating the district. There are certain items required to be in the resolution discussed below. The fire protection district will have a governing body made up exclusively of elected officials from each member jurisdiction's governing body (city council). The District's governing body may be made up with whatever proportion of council members the district wishes, similar to the current Lake Johanna Fireboard with Shoreview, North Oaks, and Arden Hills, but less non - council members. The resolution creating the district must specify the proportion of each participating municipality's board members. If the special taxing district includes the operation of a Ere department, it must file its resolution establishing the fire protection special taxing district, and any agreements required for the establishment of the special taxing district, with the commissioner of revenue, including any subsequent amendments. If the resolution or agreement does not include sufficient information defining the fire department service area of the fire protection special taxing district, the secretary of the district board must file a written statement with the commissioner defining the fire department service area. The new law is 144F.01, which merely amended the EMS special taxing district to allow for Fire Protection to be included in the taxing authority. Once established, the board may levy taxes on real and personal property in the district. In the alternative, the board may apportion its levy among the political subdivision members under a formula similar to how the current Lake Johanna Fire Board funding is completed. RICKSON, ELL, ECKMAN & UINN, P.A. 1700 West Highway 36 Suite 110 Roseville, MN 55113 (651) 223-4999 (651) 223-4987 Fax www.ebbqlaw.com FROM: Erich J. S. Hartmann TO: Chief Tim Boehlke RE: Fire Protection Special Tax District Lake Johanna Fire Department Our File No.: 1152-00005 DATE: April 5, 2023 James C. Erickson, Sr. - Retired Caroline Bell Beckman Charles R. Bartholdi Kari L. Quinn James C. Erickson, Jr. Erich J. S. Hartmann Richard A. Podvin Daniel A. Beckman - Of Counsel Robert C. Bell (1926 - 2014) This memo provides an overview of the impacts on the Lake Johanna Fire Department ("Fire Department") if a special fire protection tax district ("Fire District") is formed by the partner communities. You asked the following questions: 1. Will the Fire Department need to disband or dissolve? The financial and operational functions can be kept separate or they can both be handled by the Fire District. In other words, two structures could be used: (1) the Fire District could be used merely to levy taxes, manage the budget, and handle the financial aspects only while the fire protection operations are accomplished by the Fire Department; or (2) the Fire District can handle all the financial and operational functions as an entity that directly employs firefighters, owns the fire stations and equipment, and is managed by a single board. The second option, the Fire District operating as a fire department, makes sense because it eliminates the redundancy of administering two boards and maintaining the Fire Department as a separate entity, including corporate and financial recordkeeping and reporting. It would be appropriate to dissolve the Fire Department after the Fire District has been established and the merger is completed. Dissolving a nonprofit corporation such as the Fire Department involves several steps, as outlined below, and takes several months to complete. Thus, you should anticipate an interim period during which the Fire Department will continue to operate in concert with the Fire District until all assets and liabilities of the Fire Department are transferred to the District and the Fire Department is dissolved. Chief Boehlke April 5, 2023 Page 2 2. What will the Fire Department need to do to become part of the new Fire District? An initial overview of the steps to transition from the Fire Department to the Fire District follows: a. Each municipal partner must approve a resolution and an agreement concerning the Fire District, as outlined in Joe Kelly's December 27, 2021, memo and pursuant to Minn. Stat. § 144F.01. b. The municipal resolution or agreement must specify that the Lake Johanna Firefighters Relief Association pension plan is associated with the Fire District. § 144F.01, Subd. 2(c). c. The Fire District must file the establishing resolution and required agreements (and any amendments) with the Minnesota Department of Revenue. d. Bylaws of the Fire District should be prepared for execution upon formation of the Fire District. e. I anticipate that the Fire Department will dissolve, following this process: a. Prepare resolutions of Fire Department board and members approving the dissolution of the Fire Department and transfer of all its assets to the Fire District. b. Prepare notice of meeting of Fire Department members stating that a purpose of the meeting is to consider dissolving the corporation. c. Hold meetings of board and members. d. Proceed with dissolution (Minn. Stat. § 317A.701(a)(2)): i. Prepare and file Notice of Intent to Dissolve with Secretary of State. ii. Submit Notice of Intent to Dissolve required by Minn. Stat. § 317A.811 with Attorney General. iii. Commence winding up process (§§ 317A.725 and 317A.735). 1. Collect any debts owed to the Fire Department. 2. Pay or make arrangements to pay debts, liabilities, and obligations of the Fire Department. Chief Boehlke April 5, 2023 Page 3 3. Complete § 317A.811 requirements prior to transfer of Fire Department assets to Fire District. 4. Obtain waiver or satisfy 45-day notice period (to AG) in § 317A.811, Subd. 2. 5. Transfer assets in accordance with § 317A.735. a. Confirm adequate insurance is in place for the Fire District. b. Deed the real estate to the Fire District. c. Assign trucks, equipment, and personal property to the Fire District. 6. Submit to Attorney General a list of persons to whom assets were transferred pursuant to § 317A.811, Subd. 4. 7. Prepare and file Articles of Dissolution with Secretary of State. 3. Would the Fire Department be able to keep its tax-exempt status? The Fire District will be exempt from tax as a special taxing district that operates a fire department. I recommend having an initial discussion now with your accountant. 4. Will the Fire District be able to continue to send its part-time firefighters to the Lake Johanna Firefighters Relief Association for pensions? Yes. In conclusion, I will say that this is a simplified overview of an extensive process. The intent of this memo is to answer your questions and provide an overall roadmap of the process to merge the Fire Department into the Fire District and dissolve the existing entity. Each step of this process will include an additional set of requirements and conditions, the details of which are beyond the scope of this memo. Careful coordination will be needed at each step between the partner communities, the Fire Department Board of Directors, the Fire Department's accountants, the pension administrator, the LMCIT/risk management, employment/labor counsel, and general counsel. I will be happy to help you as your plans continue to develop. Feel free to call me if you have any questions. Thank you. EJH MINNESOTA STATUTES 2022 144F.01 144F.01 FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES SPECIAL TAXING DISTRICTS. Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given. (a) "Political subdivision" means a county, a statutory or home rule charter city, or a township organized to provide town government. (b) "Governing body" means a city council for a city, a county board for a county, and a board of supervisors for a town. (c) "Emergency medical services" means supporting the providing of out -of -hospital emergency medical services including but not limited to first responder or rescue squads recognized by the district, ambulance services licensed under chapter 144E and recognized by the district, medical control functions set out in chapter 144E, communications equipment and systems, and programs of regional emergency medical services authorized by regional boards described in section 144E.52. Subd. 2. Authority to establish. (a) Two or more political subdivisions may establish, by resolution of their governing bodies, a special taxing district to provide fire protection or emergency medical services, or both, in the area of the district, comprising the jurisdiction of each of the political subdivisions forming the district. For a county that participates in establishing a district, the county's jurisdiction comprises the unorganized territory of the county that it designated in its resolution for inclusion in the district. The area of the special taxing district need not be contiguous or its boundaries continuous. (b) Before establishing a district under this section, the participating political subdivisions must enter into an agreement that specifies how any liabilities, other than debt issued under subdivision 6, and assets of the district will be distributed if the district is dissolved. The agreement may also include other terms, including a method for apportioning the levy of the district among participating political subdivisions under subdivision 4, paragraph (b), as the political subdivisions determine appropriate. The agreement must be adopted no later than upon passage of the resolution establishing the district under paragraph (a), but may be later amended by agreement of each of the political subdivisions participating in the district. (c) If two or more political subdivisions that currently operate separate fire departments seek to merge fire departments into one fire department, or if a political subdivision with an existing fire department requests to join a special taxing district with an established fire department, the resolution under paragraph (a) or agreement under paragraph (b) must specify which, if any, volunteer firefighter pension plan is associated with the district. A special taxing district that operates a fire department under this section may be associated with only one volunteer firefighters relief association or one account in the statewide volunteer firefighter plan at one time. (d) If the special taxing district includes the operation of a fire department, it must file its resolution establishing the fire protection special taxing district, and any agreements required for the establishment of the special taxing district, with the commissioner of revenue, including any subsequent amendments. If the resolution or agreement does not include sufficient information defining the fire department service area of the fire protection special taxing district, the secretary of the district board must file a written statement with the commissioner defining the fire department service area. Subd. 3. Board. The special taxing district established under this section is governed by a board made up initially of representatives of each participating political subdivision in the proportions set out in the establishing resolution, subject to change as provided in the district's charter, if any, or in the district's bylaws. Official Publication of the State of Minnesota Revisor of Statutes 144F.01 MINNESOTA STATUTES 2022 2 Each participating political subdivision's representative must be an elected member of the governing body of the political subdivision and shall serve at the pleasure of that participant's governing body. Subd. 4. Property tax levy authority. (a) The district's board may levy a tax on the taxable real and personal property in the district. The proceeds of the levy must be used as provided in subdivision 5. The board shall certify the levy at the times as provided under section 275.07. The board shall provide the county with whatever information is necessary to identify the property that is located within the district. If the boundaries include a part of a parcel, the entire parcel shall be included in the district. The county auditors must spread, collect, and distribute the proceeds of the tax at the same time and in the same manner as provided by law for all other property taxes. (b) As an alternative to paragraph (a), the board may apportion its levy among the political subdivisions that are members of the district under a formula or method, with factors such as population, number of service calls, costs of providing service, the market value of improvements, or other measures approved by the governing body of each of the participating political subdivisions. The amount of the levy allocated to each political subdivision must be added to that political subdivision's levy and spread at the same time and in the same manner as provided by law for all other property taxes. The proceeds of the levy must be collected and remitted to the district and used as provided in subdivision 5. Subd. 5. Use of levy proceeds. The proceeds of property taxes levied under this section must be used to provide fire protection, emergency medical services, or both, to residents of the district and property located in the district, as well as to pay debt issued under subdivision 6. Services may be provided by employees of the district or by contracting for services provided by other governmental or private entities. Subd. 6. Debt. (a) The district may incur debt under chapter 475 when the board determines doing so is necessary to accomplish its duties. (b) In addition, the district board may issue certificates of indebtedness or capital notes under section 412.301 to purchase capital equipment. In applying section 412.301, paragraph (e), the following rules apply: (1) the taxable property of the entire district must be used to calculate the percent of estimated market value; and (2) "the number of voters at the last municipal election" means the sum of the number of voters at the last municipal election for each of the cities that is a member of the district plus the number of registered voters in each town that is a participating member of the district. Subd. 7. Powers. (a) In addition to authority expressly granted in this section, a special taxing district established under this section may exercise any power that may be exercised by any of its participating political subdivisions that is necessary or reasonable to support the services set out in subdivision 5. These powers include the authority to participate in state programs and to enforce or carry out state laws related to fire protection or emergency medical services, including programs providing state aid, reimbursement or funding of employee benefits, and authorizing local enforcement of state standards including fire protection related programs and political subdivision powers or responsibilities under chapters 299A, 424A, and 47713; sections 6.495, 353.64, and 423A.022; and any other administrative rules related to the fire code, to the extent the special taxing district meets the qualification criteria and requirements of a program. (b) To the extent the district's authority under this subdivision overlaps with or may conflict with the authority of the participating political subdivision, the agreement under subdivision 2, paragraph (b), must provide for allocation of those powers or responsibilities between the participating political subdivisions and the district, and may provide for resolution of conflicts in the exercise of those powers. Official Publication of the State of Minnesota Revisor of Statutes MINNESOTA STATUTES 2022 144F.01 (c) The district may only levy the tax authorized in subdivision 4. Subd. 8. Additions and withdrawals. (a) Additional political subdivisions may be added to a special taxing district established under this section as provided by the board of the district and agreed to in a resolution of the governing body of the political subdivision proposed to be added. The addition of a political subdivision to the district may not cause the district to be out of compliance with subdivision 2, paragraph (c). (b) A political subdivision may withdraw from a special taxing district under this section by resolution of its governing body. The political subdivision must notify the board of the special taxing district of the withdrawal by providing a copy of the resolution at least two years in advance of the proposed withdrawal. The taxable property of the withdrawing member is subject to the property tax levy under subdivision 4 for the two taxes payable years following the notice of the withdrawal, unless the board and the withdrawing member agree otherwise by action of their governing bodies. If a political subdivision withdraws from a district for which debt was issued under subdivision 6 when the political subdivision was a participating member, and which is outstanding when the political subdivision withdraws from the district, the taxable property of the withdrawing political subdivision remains subject to the special taxing district levy until the outstanding debt has been paid or defeased. If the district's property tax levy to repay debt was apportioned among the political subdivisions under an alternative formula or method under subdivision 4, paragraph (b), the withdrawing political subdivision is subject to the same percentage of the debt levy as applied in the taxes payable year immediately preceding its withdrawal from the district. (c) Notwithstanding subdivision 2, if the district is comprised of two political subdivisions and one of the political subdivisions withdraws, the district can continue to exist. Subd. 9. Dissolution. The special taxing district may be dissolved by resolution approved by a majority vote of the board. If the special taxing district is dissolved, the assets and liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public purposes as provided in the agreement adopted under subdivision 2, paragraph (b), or otherwise agreed to by each participating political subdivision. A district may not be dissolved until all debt issued under subdivision 6 has been paid or defeased. Subd. 10. Reports. (a) On or before March 15, 2024, and March 15, 2026, the special taxing district shall submit a levy and expenditure report to the commissioner of revenue and to the house of representatives and senate committees with jurisdiction over taxes and property taxes. Each report must include the amount of the district's levies for taxes payable for each of the two previous years and its actual expenditures of those revenues. Expenditures must be reported by general service category and include a separate category for administrative expenses. (b) On or before March 15, 2024, and March 15, 2026, a political subdivision that has established or joined a special taxing district authorized under this section after June 30, 2021, shall submit a levy and expenditure report to the commissioner of revenue and to the house of representatives and senate committees with jurisdiction over taxes and property taxes. The report must include: (1) the amount of the political subdivision's levy, and its actual expenditure of the subdivision's levy revenues, including the amount attributable to fire protection and emergency medical services, for taxes payable in each of the two taxes payable years prior to establishing or joining a special taxing district authorized under this section; (2) the political subdivision's levy, and its actual expenditure of the subdivision's levy revenues, for taxes payable in each of the taxes payable years after establishing or joining a special taxing district authorized under this section, up to and including taxes payable in 2024 and taxes payable in 2026; and Official Publication of the State of Minnesota Revisor of Statutes 144F.01 MINNESOTA STATUTES 2022 4 (3) a certification from the political subdivision that the subdivision's levy for each of the taxes payable years after establishing or joining a special taxing district authorized under this section, up to, and including, taxes payable in 2024, and taxes payable in 2026, does not include expenditures for fire protection, emergency medical services, or both, except as provided in subdivision 4, paragraph (b), or those necessary to establish or join a district as provided in this section. History: 1Sp2001 c 5 art 3 s 8; 2005 c 151 art 3 s 19; 2006 c 259 art 4 s 3,20; 2009 c 88 art 2 s 3,40; 2013 c 143 art 14 s 17; 2014 c 308 art 2 s 1; 1Sp2021 c 14 art 6 s 1; 2022 c 55 art I s 37 Official Publication of the State of Minnesota Revisor of Statutes Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Operating Budget - Recommended (March x3, July x3) Printed 6/14/2023 TOTALS 2024 2023 % Change DEPARTMENTAL OPERATIONS $ 3,140,696 $ 2,470,459 27.13% STATION OPERATIONS $ 623,213 $ 566,316 10.05% GRAND TOTALS $ 3,763,909 $ 3,036,775 23.94% Grand Total $ 3,763,909 $ 3,036,775 General Fund Contribution (AHATS) $ (20,000) $ (20,000) $ 3,743,909 $ 3,016,775 Cost Share - 2024 ARDEN HILLS (24.9%) $ 932,233 $ 754,194 23.61% NORTH OAKS (14.4%) $ 539,123 $ 431,399 24.97% SHOREVIEW (60.7%) $ 2,272,552 $ 1,831,183 24.10% $ 3,743,909 3,016,775 Fire Distribution Cost Share History Budget Notes Year Arden Hills North Oaks Shoreview Lines 31 & 32 - Health physicals annually vs every 3-5 years 2023 24.9% 14.4% 60.7% Lines 55 & 56 - Reclassification of Deputy Chiefs to Asst. Chiefs 2022 25.0% 14.3% 60.7% Line 57 - Addition of (6) FT Captains (salary only on this line) 2021 25.0% 14.4% 60.6% Line 188 - Communicatiosn And Technology increased 2020 24.8% 14.1 % 61.1 % Line 205 - General Engineering increased 2019 24.5% 13.9% 61.6% Line DEPARTMENT OPERATIONS SUMMARY 2024 2023 % Change 1 Administrative $ 16,077 $ 16,077 0.00% 11 Recognition and Retention $ 18,423 $ 15,818 16.47% 20 Insurance $ 103,230 $ 100,350 2.87% 26 Firefighters Relief Assn. $ 102,480 $ 102,480 0.00% 30 Medical Exams $ 11,070 $ 7,552 46.58% 37 Physical Fitness $ 7,800 $ 7,800 0.00% 41 Public Fire Education $ 8,896 $ 8,554 4.00% 45 Professional Fees $ 35,413 $ 31,661 11.85% 51 Full Time Staff Compensation $ 1,385,133 $ 782,853 76.93% 68 Part Time Staff Compensation $ 1,354,304 $ 1,299,444 4.22% 97 Staff Professional Development $ 12,750 $ 12,750 0.00% 105 Training $ 85,120 $ 85,120 0.00% Totals $ 3,140,696 $ 2,470,459 27.13% (blank) Line STATION OPERATIONS SUMMARY 2024 2023 % Change 150 Building Maintenance $ 156,217 $ 146,655 6.52% 172 Clothing & Turnout $ 99,094 $ 95,729 3.52% 188 Communications & Technology $ 118,186 $ 105,616 11.90% 204 General Engineering $ 233,256 $ 201,856 15.56% 213 Special Operations $ 5,510 $ 5,510 0.00% 222 Maps $ 1,520 $ 1,520 0.00% 230 SCBA $ 9,430 $ 9,430 0.00% Totals $ 623,213 $ 566,316 10.05% (blank) Page 1 of 6 Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Operating Budget - Recommended (March x3, July x3) Printed 6/14/2023 1 ADMINISTRATIVE BUDGET 2024 2023 % Change 2 Office Supplies $ 6,120 $ 6,120 0.00% 3 Postage Expenses $ 1,300 $ 1,300 0.00% 4 Misc. Extras $ 1,168 $ 1,168 0.00% 5 Flowers/Cards $ 875 $ 875 0.00% 6 Copier Rental $ 5,929 $ 5,929 0.00% 7 Mileage Reimbursement - Office Manager $ 400 $ 400 0.00% 8 Compliance Posters $ 285 $ 285 0.00% 9 Administrative Totals $ 16,077 $ 16,077 0.00% 10 (blank) 11 RECOGNITION AND RETENTION 2024 2023 % Change 12 Appreciation Event $ 10,000 $ 7,500 33.33% 13 Retirement Plaques $ 660 $ 658 0.30% 14 Steak Fry $ 2,813 $ 2,813 0.00% 15 Christmas Breakfast $ 600 $ 600 0.00% 16 Christmas Ornaments $ 1,050 $ 947 10.88% 17 Annual Mtg. Dinner $ 3,300 $ 3,300 0.00% 18 Events Totals $ 18,423 $ 15,818 16.47% 19 (blank) 20 INSURANCE 2024 2023 % Change 21 Property, Liability, Auto, W/C & Umbrella Ins $ 98,872 $ 95,992 3.00% 22 Employee Assistance Program $ 3,833 $ 3,833 0.00% 23 State Benefit Assoc. $8/new, $4/member $ 525 $ 525 0.00% 24 Insurance Totals $ 103,230 $ 100,350 2.87% 25 (blank) 26 LJFD RELIEF ASSOCIATION 2024 2023 % Change 27 Relief Assn. Contribution $ 102,480 $ 102,480 0.00% 28 Relief Assn. Totals $ 102,480 $ 102,480 0.00% 29 (blank) 30 MEDICAL EXAMS 2024 2023 % Change 31 OSHA Physicals - Annual $ 4,029 $ 1,622 148.40% 32 HAZMAT Physicals - Every 3 $ 1,341 $ 670 100.15% 33 Psycological Evaluations $ 3,395 $ 3,400 -0.15% 34 New F.F. Physicals $ 2,305 $ 1,860 23.92% 35 Medical Exam Totals $ 11,070 $ 7,552 46.58% 36 (blank) 37 PHYSICAL FITNESS 2024 2023 % Change 38 Fitness Club Reimbursement $ 7,800 $ 7,800 0.00% 39 Physical Totals $ 7,800 $ 7,800 0.00% 40 (blank) 41 PUBLIC FIRE EDUCATION 2024 2023 % Change 42 Pub Ed Materials $ 8,896 $ 8,554 4.00% 43 Public Fire Education Totals $ 8,896 $ 8,554 4.00% 44 (blank) 45 PROFESSIONAL FEES 2024 2023 % Change 46 Accountant Fees $ 8,413 $ 8,413 0.00% 47 Legal Fees/Employment Attorney/HR $ 17,000 $ 13,248 28.32% 48 Payroll Services $ 10,000 $ 10,000 0.00% 49 Professional Fees Totals $ 35,413 $ 31,661 11.85% 50 (blank) Page 2 of 6 Proposed 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 LAKE JOHANNA FIRE DEPARTMENT 2024 Operating Budget - Recommended (March x3, July x3) Printed 6/14/2023 FULL TIME STAFF COMPENSATION Fire Chief Assistant Fire Chief Officer Manager Deputy Chief/E.M. Deputy Chief/F.M. Captain (x3+3 positions) Medicare ( 1.45% ) Social Security ( 6.2% ) State Unemployment ( .47% ) Long -Term Disability FT staff PERA: P&F (17.70%) PERA: Coordinated Plan (7.5%) Medical, Dental, Life, Work Comp, HSA Full Time Staff Compensation Totals (blank) 2024 2023 $ 156,021 $ 151,486 $ 129,126 $ 125,362 $ 87,131 $ 84,594 $ 129,126 $ 110,843 $ 124,966 $ 107,266 $ 373,752 $ - $ 14,502 $ 8,403 $ 5,402 $ 5,245 $ 4,701 $ 2,724 $ 5,300 $ 2,300 $ 161,599 $ 87,607 $ 6,535 $ 6,345 $ 186,972 $ 90,678 $ 1,385,133 $ 782,853 PART TIME STAFF COMPENSATION Weekday Shifts $ Evening/Weekend Shifts $ Callback Run Compensation $ Prob. FF Shift Pay $ Training Compensation (Training/FF1/EMT/Classes) $ Public Fire Education $ Hazmat/ATR $ Fire Inspector $ Committee $ Board of Directors $ Medicare (1.45%) $ Social Security (6.2%) $ State Unemployment (.47%) $ Total FT & PT Staff Compensation $ (blank) Pay Rates - Part Time 2024 2023 325,281 $ 315,806 739,496 $ 717,957 39,717 $ 38,560 16,886 $ 16,400 108,030 $ 92,316 12,968 $ 11,081 4,718 $ 4,581 2,383 $ 2,314 1,390 $ 1,188 1,725 $ 1,650 18,162.60 $ 17,426.88 77,661 $ 74,515 5,887 $ 5,649 1,354,304 $ 1,299,444 % Change 2.99% 3.00% 3.00% 16.49% 16.50% n/a 72.57% 3.00% 72.57% 130.43% 84.46% 3.00% 106.19% 76.93% % Change 3.00% 3.00% 3.00% 2.96% 17.02% 17.02% 3.00% 2.98% 17.01 % 4.55% 4.22% 4.22% 4.22% 4.22% Firefighter/Operator/Callback/Training/ $19.86 $19.28 3.00% PubEd/Inspector/Committee Officer/Lead $21.85 $21.21 3.00% Probationary $15.30 $14.85 3.00% Incentive Pay FF $29.79 $28.92 3.00% Incentive Pay Officer $32.76 $31.81 3.00% Training $19.86 $16.97 17.02% Pub Ed $19.86 $16.97 17.02% Fire Inspector $19.86 $19.28 3.00% Committee $19.86 $16.97 17.02% Instructor/HazMat/ATR $26.21 $25.45 3.00% HazMat/ATR $26.21 $25.45 3.00% (blank) Page 3 of 6 Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Operating Budget - Recommended (March x3, July x3) Printed 6/14/2023 97 STAFF PROF. DEVELOPMENT 2024 2023 % Change 98 Fire Chief Training $ 3,000 $ 3,000 0.00% 99 Assistant Chief Training $ 3,000 $ 3,000 0.00% 100 Office Manager Classes $ 750 $ 750 0.00% 101 Deputy Chief/E.M. Training $ 3,000 $ 3,000 0.00% 102 Deputy Chief/F.M. Training $ 3,000 $ 3,000 0.00% 103 Professional Development Totals $ 12,750 $ 12,750 0.00% 104 (blank) 1051 TRAINING 2024 2023 % Change 106 Online Training $ 9,100 $ 9,100 0.00% 107 Training Equipment & Props $ 2,000 $ 2,000 0.00% 108 Fire Training/Century College $ 17,000 $ 17,000 0.00% 109 EMS Training $ 21,250 $ 21,250 0.00% 110 (blank) 111 New Member Training 112 FF1/II/Hazmat Ops @ $1400/FF (4) $ 5,600 $ 5,600 0.00% 113 FF I&II State Cert. Test @ $300/FF (4) $ 1,200 $ 1,200 0.00% 114 Mileage $0.55 per mile 840 miles ea. (4) $ 1,850 $ 1,850 0.00% 115 Books @ $300/FF (4) $ 1,200 $ 1,200 0.00% 116 EMT -B Registration/Books (4) @ $1550 $ 6,200 $ 6,200 0.00% 117 NREMT Certification Testing @ $100/FF (4) $ 400 $ 400 0.00% 118 Mileage @ $0.55 per mile 500 miles ea. (4) $ 1,100 $ 1,100 0.00% 119 (blank) 120 Sectional Schools 7 FF 121 Class Registration $175 / FF $ 1,225 $ 1,225 0.00% 122 Hotel Expenses @ $150 /night $ 2,000 $ 2,000 0.00% 123 2 Days Per Diem @ $50 / Day $ 1,000 $ 1,000 0.00% 124 Mileage $ 0.55 per mile 200 miles ea. (16) $ 1,100 $ 1,100 0.00% 125 (blank) 126 Officer Training 127 Conference Registration $ 300 $ 300 0.00% 128 Hotel Expense $ 600 $ 600 0.00% 129 3 Days Per Diem @ $50 / Day $ 300 $ 300 0.00% 130 Mileage 0.55 per mile 200 mile ea. (9) $ 125 $ 125 0.00% 131 (blank) 132 Fire Chiefs Conference 7 Chiefs/Officers 133 Conference Registration $ 1,750 $ 1,750 0.00% 134 Hotel Expense $ 3,500 $ 3,500 0.00% 135 3 Days Per Diem @ $50 / Day $ 1,200 $ 1,200 0.00% 136 Mileage 0.55 per mile 280 mile ea.(7) $ 1,078 $ 1,078 0.00% 137 (blank) 138 Fire Inspector/Investigation Training 139 Conference Registration $ 150 $ 150 0.00% 140 Hotel Expense $ 300 $ 300 0.00% 141 3 Days Per Diem @$50/Day $ 300 $ 300 0.00% 142 Mileage 0.55 per mile 120 miles ea. (2) $ 132 $ 132 0.00% 143 (blank) 144 In Town Trng/Sectional schools 145 Conference Registration $ 2,000 $ 2,000 0.00% 146 2 Days Per Diem @ $50 / Day $ 500 $ 500 0.00% 147 Mileage 0.55 per mile 60 miles ea. (20) $ 660 $ 660 0.00% 148 Training Totals $ 85,120 $ 85,120 0.00% 149 (blank) Page 4 of 6 Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Operating Budget - Recommended (March x3, July x3) Printed 6/14/2023 1501 BUILDING MAINTENANCE 151 Fertilizer/Mowing/Snowplow/Irrigation 152 Furnace Maintenance 153 Supplies 154 Water softener salt 155 Kitchen Supplies 156 Window Cleaning- all stations 157 Taxes 158 Internet/Cable TV 159 First Aid 160 Building Sprinkler Annual Inspection 161 Fire Extinguisher inspection 162 Disposal 163 Sewer & Water 164 Telephone 165 Utilities 166 Generator Maintenance 167 Pop and Food (dinner meetings) 168 Scene Refreshments 169 Contractors/Repairs 170 Building Maintenance Totals 171 (blank) 172 CLOTHING & TURNOUT 173 Badges,Emblems & Tags 174 Turnout Gear/Helmet/Boots/Gloves New FF's (6) 175 Uniform clothing New Fire Fighters (6) $1735 176 Replacement Turnout Gear (6) $3,612 ea. 177 Helmets (4) @ $503ea. 178 Leather Helmet Fronts 8 @ $50ea. 179 Charcoal Hoods (2) @ $100 ea. 180 Fire Boots (8) @ $593 ea. 181 Fire Gloves (20) @ $65 ea. 182 Gear Bag/Gear Belt 4 @ $50 183 Fulltime Staff Clothing Allowance ($400 ea.) 184 Misc. Clothing items 185 Clothing Allowance 186 Clothing Totals 187 (blank) 188 COMMUNICATIONS & TECHNOLOGY 189 Pagers 190 Pager/Portable Batteries 191 Google Cloud Platform 192 Target Vector Solutions 193 Fire Manager 194 Metro-Inet 195 Website Services 196 Comcast Data Sta. 120, 130,140 197 Lexipol - Policy Maintenance 198 Software Annual Maintenance 199 Quickbooks Pro Upgrade 200 Pager/Radio Repair 201 Cell Phone Reimbursement 202 Communications & Technology Totals 203 (blank) 2024 2023 % Change $ 28,645 $ 26,523 8.00% $ 1,920 $ 1,920 0.00% $ 17,000 $ 17,000 0.00% $ 1,500 $ 1,500 0.00% $ 1,100 $ 1,100 0.00% $ 2,900 $ 2,900 0.00% $ 129 $ 129 0.00% $ 7,828 $ 7,828 0.00% $ 1,066 $ 1,066 0.00% $ 524 $ 524 0.00% $ 1,346 $ 1,250 7.68% $ 8,749 $ 8,749 0.00% $ 14,106 $ 14,106 0.00% $ 3,000 $ 3,000 0.00% $ 54,144 $ 46,800 15.69% $ 1,800 $ 1,800 0.00% $ 2,000 $ 2,000 0.00% $ 1,250 $ 1,250 0.00% $ 7,210 $ 7,210 0.00% $ 156,217 $ 146,655 6.52% 2024 2023 % Change $ 824 $ 824 0.00% $ 30,000 $ 30,000 0.00% $ 11,365 $ 11,365 0.00% $ 21,675 $ 21,675 0.00% $ 2,012 $ 2,012 0.00% $ 412 $ 412 0.00% $ 206 $ 206 0.00% $ 4,745 $ 4,745 0.00% $ 1,300 $ 1,300 0.00% $ 200 $ 200 0.00% $ 4,400 $ 2,000 120.00% $ 1,700 $ 1,700 0.00% $ 20,255 $ 19,290 5.00% $ 99,094 $ 95,729 3.52% 2024 2023 % Change $ 7,700 $ 7,700 0.00% $ 400 $ 400 0.00% $ 700 $ 700 0.00% $ 1,000 $ 1,000 0.00% $ 3,300 $ 3,300 0.00% $ 64,500 $ 60,000 7.50% $ 3,600 $ 1,530 135.29% $ 19,427 $ 19,427 0.00% $ - $ - #DIV/0! $ 1,644 $ 1,644 0.00% $ 415 $ 415 0.00% $ 3,500 $ 3,500 0.00% $ 12,000 $ 6,000 100.00% $ 118,186 $ 105,616 11.90% Page 5 of 6 Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Operating Budget - Recommended (March x3, July x3) Printed 6/14/2023 2041 GENERAL ENGINEERING 205 Aerial & Ground Ladder Testing (Annual) 206 Equipment Testing/Inspections 207 Fuel 208 Routine Maintenance Repairs 209 First Aid Equip/Supplies 210 Shop Supplies, Tools & Floor Dry & Foam 211 General Engineering Totals 212 (blank) 2024 2023 $ 3,000 $ 3,000 $ 30,000 $ 19,100 $ 45,000 $ 45,000 $ 138,000 $ 120,000 $ 10,000 $ 7,500 $ 7,256 $ 7,256 $ 233,256 $ 201,856 213 SPECIAL OPERATIONS 214 Hazmat Equipment $ 215 1 Person to Tech. Level II $ 216 ATR Training/Instructors $ 217 Haz Mat Instructors $ 218 General Equipment Maintenance $ 219 Confined Space Tech level training $ 220 Special Operations Totals $ 221 (blank) 2221 MAPS 223 General Production $ 224 3 x 3 Lam. Map 20 @ $14.25 Ea. 225 Production/Layout 226 Notebook Map 38/Sta. @ $14.25 227 Wall Maps 7 @ $72 ea. 228 Maps Totals $ 229 (blank) 230 SCBA 231 Parts & Repairs $ 232 Annual Flow Testing $ 233 SCBA Batteries $ 234 Mask Cleaning Solution $ 235 Compressed Air Quality Testing $ 236 Air Compressor maMntenance $ 237 SCBA TOTALS $ 238 (end) 2024 2023 500 $ 500 660 $ 660 2,700 $ 2,700 250 $ 250 400 $ 400 1,000 $ 1,000 5,510 $ 5,510 2024 2023 1,520 $ 285 $ 190 $ 541 $ 504 1,520 $ 1,520 2024 2023 1,600 $ 1,600 5,500 $ 5,500 620 $ 620 250 $ 250 630 $ 630 830 $ 830 9,430 $ 9,430 % Change 0.00% 57.07% 0.00% 15.00% 33.33% 0.00% 15.56% % Change 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% % Change 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% % Change 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Page 6 of 6 Current Operating Overall (100%) 2023 $3,036,777 2024 $3,209,688 2025 $3,370,172 2026 $3,538,681 2027 $3,715,615 2028 $3,901,396 2029 $4,096,466 2030 $4,301,289 Arden Hills (24.9%) $756,157 $799,212 $839,173 $881,132 $925,188 $971,448 $1,020,020 $1,071,021 North Oaks (14.4%) $437,296 $462,195 $485,305 $509,570 $535,049 $561,801 $589,891 $619,386 Shoreview(60.7%) $1,843,324 $1,948,281 $2,045,695 $2,147,979 $2,255,378 $2,368,147 $2,486,555 $2,610,882 Percentage Over Previous Year n/a 5.69% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Direct Costs Due To Captains Wages 2023 $0 2024 $373,752 2025 $644,586 2026 $694,098 2027 $745,944 2028 $800,304 2029 $824,346 2030 $849,078 Employer Paid PERA $0 $66,154 $114,092 $122,855 $132,032 $141,654 $145,909 $150,287 Other Benefits: Family Medical, Life -Dental Reimb, Work Comp, LTD, HAS, Clothing Allow, Medicare $0 $100,160 $105,168 $110,426 $115,948 $121,745 $127,832 $134,224 Other Costs: Cell Phone, IT Services, etc. Overall (100%) $0 $0 $14,155 $554,221 $17,690 $881,536 $18,575 $945,954 $19,503 $1,013,427 $20,478 $1,084,181 $21,502 $1,119,590 $22,577 $1,156,166 Arden Hills (24.9%) $0 $138,001 $219,502 $235,543 $252,343 $269,961 $278,778 $287,885 North Oaks (14.4%) $0 $79,808 $126,941 $136,217 $145,933 $156,122 $161,221 $166,488 Shoreview(60.7%) $0 $336,412 $535,092 $574,194 $615,150 $658,098 $679,591 $701,793 Overall Operating Budget w/ Captains Overall (100%) 2023 $3,036,777 2024 $3,763,909 2025 $4,251,708 2026 $4,484,635 2027 $4,729,042 2028 $4,985,577 2029 $5,216,056 2030 $5,457,455 Arden Hills (24.9%) $756,157 $937,213 $1,058,675 $1,116,674 $1,177,531 $1,241,409 $1,298,798 $1,358,906 North Oaks (14.4%) $437,296 $542,003 $612,246 $645,787 $680,982 $717,923 $751,112 $785,874 Shoreview(60.7%) $1,843,324 $2,284,693 $2,580,787 $2,722,174 $2,870,529 $3,026,245 $3,166,146 $3,312,675 Percentage Over Previous Year n/a 23.94% 12.96% 5.48% 5.45% 5.42% 4.62% 4.63% Current Operating Overall (100%) 2023 $3,036,777 2024 $3,209,688 2025 $3,370,172 2026 $3,538,681 2027 $3,715,615 2028 $3,901,396 2029 $4,096,466 2030 $4,301,289 Arden Hills (24.9%) $756,157 $799,212 $839,173 $881,132 $925,188 $971,448 $1,020,020 $1,071,021 North Oaks (14.4%) $437,296 $462,195 $485,305 $509,570 $535,049 $561,801 $589,891 $619,386 Shoreview(60.7%) $1,843,324 $1,948,281 $2,045,695 $2,147,979 $2,255,378 $2,368,147 $2,486,555 $2,610,882 Percentage Over Previous Year n/a 5.69% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Direct Costs Due To Captains Wages 2023 $0 2024 $373,752 2025 $644,586 2026 $694,098 2027 $745,944 2028 $800,304 2029 $824,346 2030 $849,078 Employer Paid PERA $0 $66,154 $114,092 $122,855 $132,032 $141,654 $145,909 $150,287 Other Benefits: Family Medical, Life -Dental Reimb, Work Comp, LTD, HAS, Clothing Allow, Medicare $0 $100,160 $105,168 $110,426 $115,948 $121,745 $127,832 $134,224 Other Costs: Cell Phone, IT Services, etc. Overall (100%) $0 $0 $14,155 $554,221 $17,690 $881,536 $18,575 $945,954 $19,503 $1,013,427 $20,478 $1,084,181 $21,502 $1,119,590 $22,577 $1,156,166 Arden Hills (24.9%) $0 $138,001 $219,502 $235,543 $252,343 $269,961 $278,778 $287,885 North Oaks (14.4%) $0 $79,808 $126,941 $136,217 $145,933 $156,122 $161,221 $166,488 Shoreview(60.7%) $0 $336,412 $535,092 $574,194 $615,150 $658,098 $679,591 $701,793 Overall Operating Budget w/ Captains Overall (100%) 2023 $3,036,777 2024 $3,763,909 2025 $4,251,708 2026 $4,484,635 2027 $4,729,042 2028 $4,985,577 2029 $5,216,056 2030 $5,457,455 Arden Hills (24.9%) $756,157 $937,213 $1,058,675 $1,116,674 $1,177,531 $1,241,409 $1,298,798 $1,358,906 North Oaks (14.4%) $437,296 $542,003 $612,246 $645,787 $680,982 $717,923 $751,112 $785,874 Shoreview(60.7%) $1,843,324 $2,284,693 $2,580,787 $2,722,174 $2,870,529 $3,026,245 $3,166,146 $3,312,675 Percentage Over Previous Year n/a 23.94% 12.96% 5.48% 5.45% 5.42% 4.62% 4.63% Overall (100%) Capital Improvernernt 2023 $159,700 Plan 2024 $2,066,614 (No Headquarters) 2025 $1,287,911 2026 $1,028,501 2027 $1,131,300 2028 $849,000 2029 $1,150,700 2030 $393,000 Arden Hills (24.9%) $39,765 $514,587 $320,690 $256,097 $281,694 $211,401 $286,524 $97,857 North Oaks (14.4%) $22,997 $297,592 $185,459 $148,104 $162,907 $122,256 $165,701 $56,592 Shoreview (60.7%) $96,938 $1,254,435 $781,762 $624,300 $686,699 $515,343 $698,475 $238,551 Overall Expenditures Overall (100%) 2023 $159,700 2024 $2,066,614 2025 $1,287,911 2026 $1,028,501 2027 $1,131,300 2028 $849,000 2029 $1,150,700 2030 $393,000 Arden Hills (24.9%) $39,765 $514,587 $320,690 $256,097 $281,694 $211,401 $286,524 $97,857 North Oaks (14.4%) $22,997 $297,592 $185,459 $148,104 $162,907 $122,256 $165,701 $56,592 Shoreview (60.7%) $96,938 $1,254,435 $781,762 $624,300 $686,699 $515,343 $698,475 $238,551 Current Operating Overall (100%) 2023 $3,036,777 2024 $3,209,688 2025 $3,370,172 2026 $3,538,681 2027 $3,715,615 2028 $3,901,396 2029 $4,096,466 2030 $4,301,289 Arden Hills (24.9%) $756,157 $799,212 $839,173 $881,132 $925,188 $971,448 $1,020,020 $1,071,021 North Oaks (14.4%) $437,296 $462,195 $485,305 $509,570 $535,049 $561,801 $589,891 $619,386 Shoreview(60.7%) $1,843,324 $1,948,281 $2,045,695 $2,147,979 $2,255,378 $2,368,147 $2,486,555 $2,610,882 Percentage Over Previous Year n/a 5.69% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Direct Costs Due To Captains Wages 2023 $0 2024 $373,752 2025 $644,586 2026 $694,098 2027 $745,944 2028 $800,304 2029 $824,346 2030 $849,078 Employer Paid PERA $0 $66,154 $114,092 $122,855 $132,032 $141,654 $145,909 $150,287 Other Benefits: Family Medical, Life -Dental Reimb, Work Comp, LTD, HAS, Clothing Allow, Medicare $0 $100,160 $105,168 $110,426 $115,948 $121,745 $127,832 $134,224 Other Costs: Cell Phone, IT Services, etc. Overall (100%) $0 $0 $14,155 $554,221 $17,690 $881,536 $18,575 $945,954 $19,503 $1,013,427 $20,478 $1,084,181 $21,502 $1,119,590 $22,577 $1,156,166 Arden Hills (24.9%) $0 $138,001 $219,502 $235,543 $252,343 $269,961 $278,778 $287,885 North Oaks (14.4%) $0 $79,808 $126,941 $136,217 $145,933 $156,122 $161,221 $166,488 Shoreview(60.7%) $0 $336,412 $535,092 $574,194 $615,150 $658,098 $679,591 $701,793 Overall Operating Budget w/ Captains Overall (100%) 2023 $3,036,777 2024 $3,763,909 2025 $4,251,708 2026 $4,484,635 2027 $4,729,042 2028 $4,985,577 2029 $5,216,056 2030 $5,457,455 Arden Hills (24.9%) $756,157 $937,213 $1,058,675 $1,116,674 $1,177,531 $1,241,409 $1,298,798 $1,358,906 North Oaks (14.4%) $437,296 $542,003 $612,246 $645,787 $680,982 $717,923 $751,112 $785,874 Shoreview(60.7%) $1,843,324 $2,284,693 $2,580,787 $2,722,174 $2,870,529 $3,026,245 $3,166,146 $3,312,675 Percentage Over Previous Year n/a 23.94% 12.96% 5.48% 5.45% 5.42% 4.62% 4.63% Overall (100%) Capital Improvernernt 2023 $159,700 Plan 2024 $1,991,200 (No Headquarters) 2025 $1,247,100 2026 $1,028,501 2027 $1,131,300 2028 $849,000 2029 $1,150,700 2030 $393,000 Arden Hills (24.9%) $39,765 $495,809 $310,528 $256,097 $281,694 $211,401 $286,524 $97,857 North Oaks (14.4%) $22,997 $286,733 $179,582 $148,104 $162,907 $122,256 $165,701 $56,592 Shoreview (60.7%) $96,938 $1,208,658 $756,990 $624,300 $686,699 $515,343 $698,475 $238,551 Headquarters •- Overall (100%) 2023 $0 2024 $0 2025 $575,000 2026 $1,150,000 2027 $1,150,000 2028 $1,150,000 2029 $1,150,000 2030 $1,150,000 Arden Hills (24.9%) $0 $0 $143,175 $286,350 $286,350 $286,350 $286,350 $286,350 North Oaks (14.4%) $0 $0 $82,800 $165,600 $165,600 $165,600 $165,600 $165,600 Shoreview (60.7%) $0 $0 $349,025 $698,050 $698,050 $698,050 $698,050 $698,050 Overall Expenditures Overall (100%) 2023 $3,196,477 2024 $5,755,109 2025 $6,073,808 2026 $6,663,136 2027 $7,010,342 2028 $6,984,577 2029 $7,516,756 2030 $7,000,455 Arden Hills (24.9%) $795,923 $1,433,022 $1,512,378 $1,659,121 $1,745,575 $1,739,160 $1,871,672 $1,743,113 North Oaks (14.4%) $460,293 $828,736 $874,628 $959,492 $1,009,489 $1,005,779 $1,082,413 $1,008,066 Shoreview (60.7%) $1,940,262 $3,493,351 $3,686,802 $4,044,524 $4,255,278 $4,239,638 $4,562,671 $4,249,276 Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Capital Budget Printed 6/21/2023 Formulas Enter data Line General Equipment 1 Engine/Ladder Replacement 2 Rescue Replacement 3 Tahoe/Command Replacement 4 Tanker/Utility Replacement 5 SCBA Replacement 6 Tire replacement 7 Computer Replacement 8 Mobile Tablet Replacement 9 Network Access Devices (all Stations) 10 Fire Hose 1-3/4" and 4" hydrant 11 800MHz Radio Optimization 12 Hydro Test of SCBA Bottles 122 x$26 13 Graphics (1999 Utility & 2007 Ladder) 14 Thermal Imaging Camera 15 Medical Supplies/Bags 16 Rehab Equipment 17 Gas Monitors (CO) 18 Hydraulic Rescue Tool (New Apparatus) 19 Lifting Air Bags Replacement 20 Second Set Of Gear 21 Portable Monitor/Nozzle 22 New Ladder Equipment 23 2007 Utility Center Console 24 Lexipol - Policy Manual 25 Set of Irons Totals Cities' Share of Capital Budget Arden Hills North Oaks Shoreview Total Ladder (1996) Tahoe (2017) Rescue (2014) Engine Tahoe(2019) Rescue(2017) Tahoe(2019) Engine(L143) Rescue (New) Tanker(2001) 2024 2025 2026 2027 2028 2029 2030 1,844,000 960,000 1,060,000 300,000 330,000 363,000 100,000 10 5, 000 110,000 400,000 720,000 8,000 8,500 8,500 9,000 9,000 9,500 9,500 5,000 11,200 3,000 20,500 58,500 81,200 2,400 8,000 4,300 5,500 14,000 42,000 7,000 24,000 2,000 27,914 10,811 3,500 $1,999,414 $ 132,911 $ 1,028,500 $ 1,131,300 $ 849,000 $ 1,150,700 $ 393,000 24.9% $ 497,854 $ 33,095 $ 256,097 $ 281,694 $ 211,401 $ 286,524 $ 97,857 14.4% $ 287,916 $ 19,139 $ 148,104 $ 162,907 $ 122,256 $ 165,701 $ 56,592 60.7% $1,213,644 $ 80,677 $ 624,300 $ 686,699 $ 515,343 $ 698,475 $ 238,551 100.0% $1,999,414 $ 132,911 $ 1,028,501 $ 1,131,300 $ 849,000 $ 1,150,700 $ 393,000 Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Capital Budget Printed 6/21/2023 Station 120 2024 2025 2026 2027 2028 2029 2030 1 Interior Painting 2 Exterior Concrete repairs 3 Landscaping/Rock 4 Commercial Stove/Oven 5 BBQ Grill 6 Station Security; Access & Cameras 7 Gutters & Gutter Guards - NE Corner $ 20,000 8 Exterior Lighting to LED 9 Bottle Filler Drinking Fountain $ 2,500 10 Sation Air Compressor Station 130 Station 2, Total $ 22,500 $ - $ - $ - $ - $ - $ 2024 2025 2026 2027 2028 2029 2030 1 BBQ Grill 2 Stucco Redashing $ 50,000 3 Upgrade space for FF Staffing Step #1 $ 40,000 4 Remodel/Addition for 24/7 Staffing- Step #2 $1,000,000 5 Ice Machine 6 Station Security; Access & Cameras 7 Exterior Lighting to LED 8 Bottle Filler Drinking Fountain $ 3,000 9 EV Charging Infrastructure $ 30,000 10 Conference Room AN Upgrade $ 1,200 Station 3, Total $ 44,200 $1,080,000 $ - $ - $ - $ - $ Station 140 2024 2025 2026 2027 2028 2029 2030 i interior painting 2 BBQ Grill 3 Station Security; Access & Cameras 4 Roof $ 75,000 5 Retaining Wall Repair 6 Bottle Filler Drinking Fountain $ 2,500 7 Garage door threshholds Station 4, Total Total Stations Total Station Cost by City $ 2,500 $ 75,000 $ - $ - $ - $ - $ $ 69,200 $1,155,000 $ - $ - $ - $ - $ 2024 2025 2026 2027 2028 2029 2030 Arden Hills 24.9% $ 17,231 $ 287,595 $ $ $ $ $ North Oaks 14.4% 9,965 166,320 Shoreview 60.7% 42,004 701,085 $ 69,200 $1,155,000 $ $ $ $ $ Proposed LAKE JOHANNA FIRE DEPARTMENT 2024 Capital Budget Printed 6/21/2023 2024 2025 2026 2027 2028 2029 2030 From General Equipment Arden Hills $ 497,854 $ 33,095 $ 256,097 $ 281,694 $ 211,401 $ 286,524 $ 97,857 North Oaks $ 287,916 $ 19,139 $ 148,104 $ 162,907 $ 122,256 $ 165,701 $ 56,592 Shoreview $1,213,644 $ 80,677 $ 624,300 $ 686,699 $ 515,343 $ 698,475 $238,551 2024 2025 2026 2027 2028 2029 2030 From Station Capital Arden Hills $ 17,231 $ 287,595 $ - $ - $ - $ - $ - North Oaks $ 9,965 $ 166,320 $ $ $ $ $ Shoreview $ 42,004 $ 701,085 $ $ $ $ $ 2024 2025 2026 2027 2028 2029 2030 Reimbursements/Credits Arden Hills $ - $ - $ $ $ $ $ North Oaks $ $ $ $ $ $ $ Shoreview $ $ $ $ $ $ $ 2024 2025 2026 2027 2028 2029 2030 Overall Capital Budget ( Sum of General Equipment, Stations and Reimbursement/Credit) Arden Hills $ 515,085 $ 320,690 $ 256,097 $ 281,694 $ 211,401 $ 286,524 $ 97,857 North Oaks $ 297,881 $ 185,459 $ 148,104 $ 162,907 $ 122,256 $ 165,701 $ 56,592 Shoreview $1,255,648 $ 781,762 $ 624,300 $ 686,699 $ 515,343 $ 698,475 $238,551 Attachment B Lake Johanna Fire Department Meeting Cities of Arden Hills, North Oaks, and Shoreview Tuesday, September 19, 2023 Lake Johanna Fire Station 3 (Lexington Ave.) 6:00 pm - 8:00 pm 1. Call to order - Sue Denkinger, Shoreview Mayor and President of the Lake Johanna Fire Department Board of Directors 2. Introductions 3. Review of desired meeting outcomes a. Understanding of the existing governance model and its challenges b. Understand the information regarding a potential fire district c. Identify any outstanding questions related to the existing governance model or potential fire district model 4. Overview of existing governance model* S. Overview of potential fire district governance model* 6. Adjournment * Includes packet materials Item 4. TO: Mayors and Councilmembers of Arden Hills, North Oaks, and Shoreview MEETING DATE: September 19, 2023 SUBJECT: Overview of existing governance model Overview The fire department and cities work together collaboratively to ensure high quality emergency medical response service is provided to the residents of Arden Hills, North Oaks, and Shoreview. The primary documents guiding these efforts are the by-laws and service contracts. These documents are summarized in this report and attached.. By-laws Adopted by-laws of the Lake Johanna Fire Department, Inc. regulate and manage the internal affairs of the organization. These by-laws articulate many items including the following: • Membership and meetings of the fire department • Membership and meetings of the board of directors o Members to included: ■ Two directors from the City of Shoreview ■ One director from the City of Arden Hills ■ One director from the City of North Oaks ■ Three directors from the active membership of the Lake Johanna Fire Department • Duties of the board of directors • Appointment of Chief Executive Officer (Fire Chief) The board of directors as outlined in the by-laws typically meets six times per year on the third Wednesday of odd numbered months unless the schedule is altered by the board. In 2023, the board has met monthly due to the importance of the governance discussion. While decisions are made by the majority of the board, it is common for the board to work towards full consensus of the cities when approving the operating and capital budgets. Board of director votes by agency are outlined below (rounded to the nearest full percentage point): • Arden Hills:1 of 7 votes (14%) • North Oaks: 1 of 7 votes (14%) • Shoreview: 2 of 7 votes (29%) • Fire department members: 3 of 7 votes (43%) Page 1 of 2 Item 4. Service contracts The cities have executed service contracts with the Lake Johanna Fire Department outlining the city and fire department responsibilities. The current contract term is 2019-2023 with automatic extensions through 2034 unless terminated by either pa rty. Attachments 1. By -Laws of the Lake Johanna Fire Department, Inc. 2. Fire Protection Service Contract - City of Shoreview Page 2 of 2 REVISION COPY 1/18/2018 Supersedes 1/18/2017 BY-LAWS OF THE LAKE JOHANNA FIRE DEPARTMENT, INC. AS AMENDED AND APPROVED AMENDED BY-LAWS OF THE LAKE JOHANNA FIRE DEPARTMENT This instrument constitutes the By-laws of the Lake Johanna Fire Department, Inc. adopted for the purpose of regulating and managing the internal affairs of the corporation. ARTICLE I. REGISTERED OFFICE Section 1.1 Address. The registered office of the corporation shall be at 5545 Lexington Avenue North in the City of Shoreview, Minnesota. The corporation may have other such offices as the Board of Directors may from time to time determine. ARTICLE II. MEMBERSHIP MEETINGS Section 2.1 Place. All meetings of the membership shall be held at a designated fire station, unless otherwise specified by the Board of Directors. Section 2.2 Time. An annual meeting of the members shall be held in the month of January of each year with the date and time to be set by the Fire Chief. Notice of the meeting shall follow the process outlined in Article V, Section 5.1. At the annual meeting the members shall elect Board Members to fill any vacancies created by the expiration of terms of office of active Fire Department members of the Board of Directors. Section 2.3 Polling Time. To be eligible to vote, members must be present in the meeting room at which the election shall occur, not later than 15 minutes after the posted starting time. Absentee voting shall be permitted as provided in Section 7.2. Section 2.4 Filing Requirements. Members interested in becoming candidates for Board positions must file a letter of candidacy to do so with the Fire Chief by December 3 1 " of the year prior to the annual meeting at which the election is to be held. Nominations from the floor for Board of Director positions are prohibited. ARTICLE III. MEMBERSHIP _Section 3.1 Type. The membership of the corporation shall consist of the following two classes of members. 3.1.1 Active Member. A member who has completed probation and has been accepted as a firefighter by the affirmative vote of a majority of the Board of Directors is considered active. All active members must comply with the Rules and Regulations of the Fire Department as adopted and amended by the board from time to time in order to be a member in good standing. Each active member shall have voting rights as specified in Article 7. 2 3.1.2 Probationary Member. Those members that are placed on probation for acceptance as new recruits or for re -acceptance after completion of disciplinary action are considered probationary. All probationary members must comply with the Rules and Regulations of the Fire Department as adopted and amended by the Board from time to time. The definition of a probationary firefighter does not include probation for promotional purposes (e.g., Lieutenant to Captain). Probationary members shall not have voting rights. ARTICLE IV. SPECIAL MEMBERSHIP MEETINGS Section 4.1 By Directors. Special meetings of the membership may be called by a majority of the Board of Directors at any regular or special meeting thereof or by written notice signed by a majority of the Board of Directors. Notice of a special meeting shall state the subject matter to be taken up at the special meeting. Section 4.2 By Members. Special Meetings may also be called by at least ten (10) percent of active members with voting rights. If the request for a special meeting is from the members, the request for the special meeting shall be signed and dated by the members requesting the meeting setting forth the subject matter to be taken up at the special meeting The signed and dated request shall be delivered to the President or Recording Secretary. Within 30 days after receipt of a request for a special meeting from voting members, the Board of Directors shall cause a special meeting to be called, to be held no later than 90 days after receipt of the request at the expense of the Corporation. ARTICLE V. NOTICE OF MEMBERSHIP MEETINGS Section 5.1 Notice. At least 10 days but no more than 20 days prior to the meeting, written notice of the annual or special meetings of the membership shall be mailed to each member at their last known address. Notice of special meetings shall contain a statement of the subject matter to be taken up at such meeting. The notice may contain other information considered necessary or desirable by the Board of Directors. The business transacted at a special meeting shall be limited to the subjects stated in the notice. ARTICLE VI. QUORUM Section 6.1 Number. One third of the active members shall constitute a quorum for the transaction of business at any membership meeting. ARTICLE VII. VOTING Section 7.1 Eligibility. Active Members shall be entitled to one vote on any matter that properly comes before the membership. Section 7.2 Absentee Ballots. Voting by Absentee ballot shall be allowed for voting. If a member is unable to attend the meeting, the member may vote by Absentee ballot. If a member has voted by Absentee ballot and is in attendance at the meeting, the Absentee ballot shall be destroyed without opening. 3 ARTICLE VIII. BOARD OF DIRECTORS Section 8.1 Directors. The Board of Directors shall consist of seven Directors as provided hereinafter: Two Directors shall be community representatives from the City of Shoreview; One Director shall be a community representative from the City of Arden Hills; One Director shall be a community representative from the City of North Oaks; and Three Directors shall be representatives from the active membership of the Lake Johanna Fire Department. Section 8.2 Qualifications of Fire Department Directors. The three active members to be elected from the Fire Department shall have been active members for at least eight years and shall be members in good standing as defined in Section 3.1.1. Full-time employees of the Fire Department are prohibited from being members of the Board of Directors. The Fire Chief shall be assigned to a station. The Fire Chief shall not vote unless the Chief becomes an active member of the Fire Department. Section 8.3 Qualifications of Community Directors. The community Board of Directors members shall be filled by individuals who either reside in or are employed in the community they represent. Active as well as probationary members and full-time employees of the Fire Department are prohibited from serving as Community Directors. These Community Board of Director members shall be chosen for their ability to determine policy and may have experience in business, public service, industry, human services, labor, education or other relevant fields. Section 8.4 Selection Process. The Community Board of Directors shall be selected by each of the respective cities. Shoreview shall select its directors; Arden Hills shall select its director and North Oaks shall select its director per Section 8.1 and 8.3. The Fire Department Board of Directors shall be selected from the Fire Department membership per Section 8.1 and 8.2. Section 8.5 Initial Terms of Directors. The Fire Department Directors seats are three years in length or until their successor is elected. Fire Department Director seat terms are staggered to have one seat expire each calendar year. Community Director seats are three years in length, or until their successors are appointed. Section 8.6 Annual Meeting. The Board of Directors shall hold their annual meeting within two weeks following the annual meeting of the membership for the purpose of electing officers for the ensuing year, and to transact other business as may properly come before it. Section 8.7 Regular Meetings. Regular meetings of the Board of Directors shall be conducted in accordance with the schedule adopted at the first meeting of the year and be held at such time and place as shall from time to time be determined by the Board of Directors. There shall be at least four (4) regular meetings of the Board of Directors per year and more if deemed necessary by the President. El 8.7.1 Meeting Minutes. Minutes of all regular Board of Directors meetings will be distributed to each station and will be posted. The failure of the minutes to be posted will not negate any action properly taken by the Board of Directors. Section 8.8 Special Meetings. Special meetings of the Board of Directors may be called by the President at the Presidents discretion and shall be called by the President whenever requested in writing by at least three members of the Board of Directors. Notice of special meetings shall be given to each Director personally, or by U.S. Mail and email at least five days in advance of the meeting. Special meetings of the Board of Directors may be called without notice to the Directors, if a full Board of Directors convenes and all agree to hold the meeting at such time and place and waive all rights of notice thereof. 8.8.1 Emergency Action in Lieu of Meeting. Emergency actions required or permitted to be taken at a Board meeting, with reasonable notice, may be taken by written action signed by four or more Directors with at least one being an Active Fire Department Director. Section 8.9 Quorum. At all meetings of the Board of Directors, four of the Directors shall be necessary and sufficient to constitute a quorum for the transaction of business, and the act of the majority present at a meeting at which there is a quorum, shall be the act of the Board of Directors. Section 8.10 Order of Business. a. The meeting shall be called to order by the President at the time and on the date of the meeting. b. Roll call. c. Approval of the minutes of the previous meeting. d. Approval of Financial Report. e. Approval of list of bills paid. f. Personnel items. g. Fire Chief s Report. h. Unfinished business. i. New business. j. Adjournment. Section 8.11 Removal of Directors. Directors may be removed from office by a majority vote of the remaining members of the Board of Directors for failure to attend three or more regular meetings of the Board of Directors, provided for in Sections 8.6 and 8.7 in a calendar year. Directors may be removed from office by a majority vote of the remaining members of the Board of Directors for cause, which includes but is not limited to, misconduct, conviction of a felony, and a breach of fiduciary duties to the corporation. A Director may be removed from office pursuant to this section at a special meeting, after written notice specifying the allegations against the Director. ARTICLE IX. DIRECTORS VACANCIES Section 9.1 Community Director Vacancies. If a Community Director's seat becomes vacant by reason of death, resignation, retirement, or otherwise, the City initially filling the vacant seat shall select a successor who shall hold office for the unexpired term. Section 9.2 Fire Department Vacancies. When such a vacancy occurs among the three active Fire Department Directors, the election to fill such vacancy shall occur at a special membership meeting called within sixty days of the vacancy. ARTICLE X. OFFICERS Section 10.1 Titles. The Officers of the corporation shall be Chief Executive Officer, President, Vice President, Recording Secretary, and Treasurer. The Board of Directors may, from time to time, appoint other corporate officer positions as they deem necessary. Except for the Chief Executive Officer who shall be the Fire Chief, the officers of the corporation shall be elected from and by the Board of Directors. Section 10.2 Terms of Office. Except for the Chief Executive Officer, the officers of the corporation shall hold office for one year or until their successors are chosen and qualify. Any officer elected or appointed by the Board, except the Chief Executive Officer, may be removed from office by the affirmative vote of the majority of the entire Board of Directors, with or without cause. The Chief Executive Officer may only be removed in accordance with Section 12.4. Section 10.3 Duties. The duties of the officers of this corporation shall be; 10.3.1 Chief Executive Officer. Responsible for day-to-day operation of Fire Department as set forth in Article 12. 10.3.2 President. The President shall: preside at all meetings of the Corporation and Board of Directors; enforce the provisions of the By-laws; appoint committees not otherwise provided for by the Board or the By-laws; and perform such other duties as required by law. 10.3.3 Vice -President. The Vice -President shall, in the absence or disability of the President, perform the duties and exercise the powers of the President and shall perform such other duties as the Board of Directors shall prescribe. 10.3.4 Recording Secretary_. The Recording Secretary shall: keep a correct record of the proceedings of the Corporation; sign all orders on the Treasury authorized by the Board; read all documents and conduct the general correspondence received by the corporation pertaining to the Corporation and keep same on file for future reference; bring to the attention of the Board of Directors matters pertaining respectively to them; notify all members of the Board of Directors of all meetings of the Board; and on 3 request of the Board of Directors, produce the corporate books and records for examination and audit. The duties herein enumerated may be assigned to a full-time staff person at the discretion of the Board of Directors. 10.3.5 Treasurer. The Treasurer shall: receive and be the custodian of all the money of the corporation received or disbursed; deposit all the money and valuables, in the name of and to the credit of the corporation, in such banks or depositories as the Board of Directors shall designate; sign all checks, which must be countersigned by the President; reconcile the bank statement every month; report at regular Board Meetings, the total receipts and expenditures of the Corporation for the previous calendar month(s) and the amount of money on deposit; mail or deliver all payments authorized by the Board of Directors no later than 7 days after authorization; make all disbursements by check only; on request of the Board of Directors produce the Treasurer's books for examination and audit; and perform such other duties as prescribed by the Board of Directors. The duties herein enumerated may be assigned to a full-time staff person at the discretion of the Board of Directors. Section 10.4 Document Distribution. None of the officers of this corporation shall execute or distribute any corporate documents to anyone other than Board members, except on the authority of the Board of Directors. ARTICLE XI. RECORDS Section 11.1 Inspection of Books. The membership shall be permitted to inspect the books of the Corporation at all reasonable times. The books of the Corporation shall consist of the minutes and official proceedings as maintained by the Recording Secretary and the Financial Statement as presented to the Board of Directors at Board Meetings. Section 11.2 Checks. All checks and notes of the Corporation shall be signed by the Treasurer or may be assigned to a full-time staff person at the discretion of the Board of Directors Section 11.3 Fiscal Year. The fiscal year shall begin on the first day of January of each year. ARTICLE XII. CHIEF EXECUTIVE OFFICER Section 12.1 Appointment. The Board of Directors shall employ a professionally qualified Chief Executive Officer to be known as the Fire Chief who shall conduct the day-to-day operations of the Fire Department. The Fire Chief shall be the Chief Executive Officer of the Corporation. Section 12.2 Policies. The Board of Directors shall set policies for the hiring, discipline, and discharge of any and all personnel. It shall be the duty of the Fire Chief to administer those personnel policies. The Fire Chief shall have the authority to hire, discipline and terminate all members and part-time and full-time staff. Section 12.3 Reports. The Fire Chief shall be responsible for recommending policies, programs and plans to the proper committee and to the Board of Directors. The Fire Chief shall annually prepare a financial budget of the estimated revenues and disbursements to properly finance the programs, services, and policies of the Corporation. 7 Section 12.4 Removal. The Fire Chief shall at all times be accountable to the Board of Directors and may be removed only after being given a due process hearing. The entire Board of Directors shall comprise the hearing board and a minimum of at least five (5) votes will be required for removal. Section 12.5 Board of Directors Meetings. The Fire Chief may attend all meetings of the Board of Directors and will receive all notices of the meetings and minutes. The Fire Chief may participate in the deliberations of the Board of Directors but will not vote on the Board's actions. ARTICLE XIII. RULES OF PROCEDURE Section 13.1 Robert's Rules. The rules contained in the current edition of "Robert's Rules of Order" shall govern meetings of the members and the Board of Directors, in all cases to which they are applicable and in which they are not inconsistent with these By-laws or any special rules of order the Board of Directors may adopt. ARTICLE XIV. AMENDMENTS Section 14.1 Procedure. The Board of Directors may propose amendments to these By-laws by resolution, and the proposed amendments to these By-laws may be adopted by a two- thirds (2/3) majority vote of the entire Board of Directors, provided that at least two of the votes to approve a change is from the active firefighter Board Members. Twenty (20) days written notice of such proposed amendments and the time and place of such meeting, shall be given to all Fire Department members and to the Board of Directors. Section 14.2 Limits. The Board of Directors may not amend Sections 3.1.1, 3.1.2, 8.1, 8.2, 8.3, 8.4, 8.5, 9.1, 9.2 nor 14.2 of these By-laws. These sections may only be amended by a vote of the active members of the Fire Department. ARTICLE XV. POWERS OF THE BOARD OF DIRECTORS Section 15.1 The Board of Directors will have the following responsibilities: Appoint and conduct performance reviews of the Fire Chief. Review Policies and Guidelines of the Fire Department. Review and approve the Operating and Capital budgets. Review and approve the departments Long Range Plan. Review and approve financial statements and accept the annual audit report. Review and approve Fire Department expenditures. Review and approve the Lake Johanna Firefighters Relief Association Pension benefit and make adjustments as necessary. Review and accept the Fire Department Annual Report. Conduct any disciplinary hearings as necessary in accordance with the By- laws; and appoint committees or subcommittees of the Board of Directors as necessary. Section 15.2 Committees. The Board of Directors may act through such committees as may be specified by resolutions adopted by a majority of the members of the Board of Directors. Each such committee shall have such duties and responsibilities as are assigned to it from time to time by the Board of Directors. Each such committee shall at all times be subject to the rules and regulations of the Fire Department. 15.2.1 Members of Committees. The President shall appoint, with the approval of the Board, the Chairman and members of each committee. Each committee may appoint one or more subcommittees. Committee members may be Board of Director members and/or active members of the Fire Department. 15.2.2 Rules and Regulations. The Fire Chief is authorized to establish rules and regulations governing the conduct and appearance of firefighters while on duty. Section 15.3 Suspension or Termination. The Fire Chief will report any disciplinary actions to the Board of Directors at a regularly scheduled Board of Directors meeting. 15.3.1 Disciplinary Appeal. Any member Suspended for more than 30 days or terminated may request an Appeal to the Board of Directors. All Appeals must be initiated by submission to the Fire Chief in writing within 10 days of imposition of the suspension or termination. In the event of a timely appeal a due process hearing will be conducted at a regularly scheduled or special Board of Directors meeting. The Board of Directors may uphold, rescind, or modify the discipline. The decision of the Board of Directors shall be in writing and is final and binding. Section 15.4 Approval. All rules, regulations, policies and directives, qualifications and require- ments, and procedures adopted under Article XV, Sections 15.2.1, 15.2.2, and 15.4 must be approved by a majority of the Board of Directors, provided that at least two of the votes to approve a change are from the three active firefighter Board Members. Section 15.5 Prior Rules and Policies. Upon adoption of these By-laws all rules, regulations, policies and directives and other such administrative matters already in place shall remain in place and serve as the official documents under which the Fire Department operates until such time as they are amended or superseded. Section 15.6 Leave of Absence. A leave of absence may be granted to any member by the Board of Directors as outlined in the Policies, Rules and Regulations. ARTICLE XVI. INDEMNIFICATION Section 16.1 Indemnification. Any person who at any time shall serve or shall have served as director, officer or employee of the corporation, and the heirs, executors and administrators of such person shall be indemnified by the corporation, in accordance with and to the fullest extent permitted by Minnesota State Statutes, Section 317A.521 as it may be amended from time to time. Dated: Chief / -:.- _. Secret , 9 FIRE PROTECTION SERVICE CONTRACT CITY OF SHOREVIEW LAKE JOHANNA FIRE DEPARTMENT 1.0 Parties. This Contract is entered into by and between the City of Shoreview, a statutory city under Chapter 412 of Minnesota Statues (herein "City"), and the Lake Johanna Fire Department, Inc., a non-profit corporation organized and exiting under the provisions of Chapter 317 of Minnesota Statues (herein "Fire Department"); and shall be effective upon approval by both parties. 2.0 Purpose & Recitals. A. City is responsible for providing fire protection and prevention services for the people and institutions situated within its boundaries, which geographic area shall hereinafter be referred to as the "Fire Service Area". B. City has authority to enter into this Contract by virtue of provisions in Chapter 412 of the Minnesota Statues and has determined that the mutual undertakings set forth in this contract are desirable, in the public interest, and necessary to provide for the public health, safety, and general welfare of the Fire Service Area. C. Fire Department has provided fire protection and prevention services for the benefit of the "Fire Service Area' and has the necessary personnel, facilities, equipment and training to provide an adequate and reasonable degree of fire protection and prevention services within the Fire Service Area. D. Fire Department has authority to enter into this Contract by the provisions of its Articles of Incorporation and By-laws and desires to provide City with fire protection within the Fire Service Area. 3.0 Term. The term of this Service Contract shall extend from the first day of January, 2019, until and through the 31st day of December, 2023, ("Contract Term"). A. Extended Term. The term of this Service Contract shall be automatically renewed for three additional periods ("Extended Term") of five years each unless either party adopts a Termination Resolution at a regular or special meeting of the City or Fire Department and communicates such resolution in writing to the other party at least one year prior to the end of the contract term or any successive extended term. 1. The first extended term shall commence on the 1st day of January 2024, and shall expire on the 31 st day of December, 2028. 2. The second extended term shall commence on the 1st day of January, 2029, and shall expire on the 31st day of December, 2033. 3. The third extended term shall commence on the 1st day of January, 2034, and all expire on the 31 st day of December, 2038. 1 B. Termination Resolution. Notwithstanding the above provisions, this Contract may be terminated by either party upon the adoption of an Termination Resolution as hereinafter provided, and communication of such resolution in writing to the other party at least one (1) year prior to the termination date. 4.0 City's Responsibilities. City shall have the responsibility and right to: A. Assist Fire Department, as needed, in the recruitment of additional fire fighters; B. Specify levels of service more than those defined in Section 5.0 for its Fire Service Area, after conferring with Fire Department and using the fire protection needs of City as criteria; C. Assist Fire Department in all reasonable ways to achieve its goal of providing City with fire protection and prevention services; and D. Compensate Fire Department for services rendered pursuant to the budget submitted by Fire Department and approved by City. E. Assist Fire Department in maintaining current ISO rating for City. F. Will designate representatives to serve on the Board of Directors per the By -Laws of the Fire Department. 5.0 Fire Department's Responsibilities and Rights. Fire Department shall have the responsibility and right to: A. Use reasonable efforts to promptly respond to all fire, EMS and Rescue calls within the Fire Service Area whenever it is notified of such incidents. If not immediately available, equipment and personnel will respond as soon as possible based on the judgment of the Fire Chief or other Officer in charge; B. Except as otherwise provided herein, be responsible for its internal method of operation, including but not limited to the type of apparatus used for a response, assignment of personnel, dispatching procedures, determination of mutual aid response, type of response to routine calls and emergencies and all other activities usually associated with the fire department; C. Recruit firefighters as needed to maintain an adequate number of personnel and level of response to meet required levels of service; D. Maintain all firefighting equipment and stations in good order and repair; E. Recommend to and consult with City in regards to the refurbishment of existing equipment, the purchase of additional or new equipment and the levels of service to be provided; F. Insure that it's members are properly training to render qualified and capable service under this Contract; E G. Hold such meetings, conduct such drills, and maintain such records as are necessary to qualify for State aid; H. Obtain such training in addition to the routine training required hereunder as is requested by City provided City compensates Fire Department for the cost of such additional training; I. Promptly investigate, as Fire Department deems appropriate, the cause, origin, and circumstances of each and every fire occurring within the Fire Service Area involving loss of life or injury to person or destruction or damage to property. If it appears that such fire is of suspicious origin, the appropriate agency shall take immediate charge of all physical evidence relating to the cause of the fire and pursue the investigation to its conclusion; and J. Work with ISO and Insurance companies to maintain the best fire insurance ratings reasonable possible. 6.0 Reports Provided by the Fire Department. Fire Department shall provide City with the following reports and other reports as may be reasonable requested from time to time, by the City; A. Annual Report. On or before March 1st of each year, an annual organization report shall include at least the following: 1. A staffing/organization chart of Fire Department; 2. A summary of fire, EMS and rescue calls; 3. A summary of Response times averages; 4. A summary of Mutual aid and Automatic aid calls; 5. A summary of dollar loss by fire incidents; 6. A summary of fire inspection and code enforcement services rendered; 7. A summary of public fire education events conducted; and 8. A summary of training activities. 3 B. Monthly Incident Report. On or before the 151h day of each month, a monthly Incident Report which includes Fire, EMS and Rescue calls. This report shall include at least the following information: 1. Incident Date; 2. Incident Number; 3. Incident Type Code; 4. Alarm Time, Arrival Time and Clear Time; 5. Primary Station; 6. Street Number, Street Name; 7. City; 8. Property Loss; 9. Content Loss; 7.0 Mutual Aid Agreements. Fire Department shall maintain its membership in the Capital City Mutual Aid Association and shall enter into such mutual aid agreements as it deems appropriate and necessary. Such agreements shall be premised on the condition that equipment or personnel will not be sent outside the Fire Service Area if the Fire Department's Fire Chief, or the Chiefs designee, determines that it is needed in the Fire Service Area. Copies of all mutual aid agreements shall be filed with City and Fire Department shall keep City informed of the requirements, rules and regulations of all mutual aid agreements to which it is a party. 8.0 Annual Submittals. The following items shall be submitted to City; A. Operating Budget. On or before July 1s' of each year, Fire Department will submit an annual operating budget for the period January 1 through December 31 of the following year. The operating budget will be itemized for each station. City will make Bi-Annual operating budget payments on or before January 151h and July 151h B. Fire -Year Capital Improvement Budget. On or before July 15S of each year and along with the operating budget, Fire Department shall submit a five-year capital improvement budget which itemizes vehicles and equipment which are estimated to cost more than $10,000.00. C. Annual Audit. On or before July 15S of each year, Fire Department shall provide a copy of the previous year's annual certified audit. 4 9.0 Independent Contractor. Fire Department members shall not be considered employees of City and shall not be entitled to any of the benefits usually accruing to regular City employees, including, but not limited to, severance pay, health and welfare insurance benefits, retirement credit, workers compensation coverage, or other benefits normally considered to be employee fringe benefits. Fire Department shall not be subject to any existing civil service regulations, protections or benefits and hereby expressly waives all rights to benefits accorded present employees of the City and hereby acknowledges that it is entitled to make no claims against City except as provided herein. This Contract does not create the relationship of principal and agent; partnership; joint venture; or of any association between City and Fire Department other than that of independent contractors. 10.0 Insurance. Unless otherwise provided herein, Fire Department shall purchase insurance of the types listed below and such other coverages as it may deem advisable; A. Worker's Compensation — statutory limits. B. Comprehensive Liability - $2,000,000.00 single limit. C. Vehicle Coverage (comprehensive and collision) for all vehicles and trucks used by the Fire Department in providing fire protection and fire prevention services to the City and to the Cities of Arden Hills and North Oaks. D. Building and Equipment Coverage (replacement value) for all buildings and equipment owned or used by the Fire Department in providing fire protection and fire prevention services to the City and to the Cities of Arden Hills and North Oaks. All insurance policies purchased by Fire Department shall include City as an additional insured and shall contain a cancellation clause requiring thirty (30) days written notice to be mailed to City prior to such date of cancellation. Fire Department shall provide City with a certificate of insurance indicating that the required types and amounts of insurance are in force. Liability insurance must apply to vehicles owned, leased or utilized by Fire Department. 11.0 Indemnification. Fire Department agrees to defend and indemnify City against any claims brought or actions filed against City or any officer, employee, or volunteer of City for injury to, death of, or damage to the property of any third person or persons, arising from Fire Department's performance under this contract for services. Under no circumstances, however, shall Fire Department be required to pay on behalf of itself and City, any amounts in excess of the limits on liability established in Minnesota Statutes, Chapter 466 applicable to any one party. The limits of liability for Fire Department and City may not be added together to determine the maximum amount of liability for City. The intent of this subdivision is to impose on Fire Department a limited duty to defend and indemnify City for claims arising out of the performance of this contract subject to the limits of liability under Minnesota Statutes, Chapter 466. The purpose of creating this duty to defend and indemnify is to simplify the defense of claims by eliminating conflicts between the parties and to permit liability claims against both parties from a single occurrence to be defended by a single attorney. 5 12.0 Dissolution of Fire Department. A. Fire Department Initiated: If the dissolution of the Fire Department is initiated by the Fire Department and is not the result of a termination of this Contract by one or more of the Cities, the Fire Department's assets shall be conveyed to a successor organization which provides Fire Protection Services to City and to the Cities of Arden Hills and North Oaks; or, if a successor organization does not provide Fire Protection Services to all three cities, Fire Department's assets shall be conveyed to the City and to the Cities of Arden Hills and North Oaks, in the manner and in the proportions deemed appropriate by such cities. B. City Initiated: If the Dissolution of the Fire Department is the result of a termination of this Contract by one or more of the Cities, the Fire Department's assets shall be liquidated. The liquidated assets shall first be applied to ensure that the benefit obligations of the Lake Johanna Firefighter Relief Association, Inc. are fully funded. The balance of the liquidated assets, if any, shall be conveyed to the City and the Cities of Arden Hills and North Oaks in the manner and in proportions deemed appropriate by such cities. C. Amendment of Bylaws: Fire Department shall amend its Bylaws in compliance with Minnesota statutes governing non-profit organizations, if necessary, in order to effectuate the provisions of this section. 13.0 Shoreview Fire Stations. The City is the fee owner of the following described parcels on which it, has constructed and equipped fire stations: North Station: The East 558 feet of the Southeast 1/4 of the Southeast 1/4 of the Section 3, Township 30, Range 23, lying Northerly of the South 93 feet of said Quarter section and Southerly of the following described line. Beginning at the South quarter corner of said Section 3; thence North 0 degrees 00 minutes along the North and South quarter line of said section, a distance of 616.83 feel to the place of beginning of the line to be described; thence South 89 degrees 37.50 minutes East for a distance of 249.07 feet, thence along a 3 degree curve to the right (having a central angle of 14 degrees 41 minutes a tangent of 246.09 feet) for a distance of 489.44 feet; thence South 74 degrees 56 minutes 3 seconds East a distance of 603.32 feet; thence along a 3 degree curve to the left (having a central angle of 14 degrees 38.75 minutes, a tangent of 245.46 feet) for a distance of 488.19 feet; thence South 89 degrees, 35 minutes 15 seconds East to the East line of the Southeast 1/4 of the Southeast 1/4 of Section 3, Township 30, range 23 and there terminating. South Station: that part of the Southwest Quarter of the Southeast Quarter of Section 26, Township 30, Range 23 described as follows: Beginning at the intersection of the center line of Victoria Street and the Northerly right-of-way line of the Minneapolis & St. Paul Sault Ste. Marie Railway; thence North 88 degrees 41 minutes 40 seconds West (assumed bearing) along said Northerly right-of-way line a distance of 233.50 feet; thence North 12 degrees 10 minutes 0 seconds East a distance of 220 feet; thence South 88 degrees 41 minutes 40 seconds East a distance of 233.28 feet more or less to the center line of Victoria Street; thence Southwesterly along said center line to the point of beginning and there terminating. Subject to Victoria Street over the easterly 43' (forty-three feet) for public purposes only. A. Use. During the term of this Contract and in connection with the services provided pursuant to this Contract the Fire Department shall be allowed to use the North Station and South Station. B. Maintenance/Repairs. During the term of this Contract the Fire Department shall be responsible for the routine maintenance of the North Station and South Station. The Department shall be responsible for all major repairs to the City's buildings. C. Insurance. The City will insure buildings which are used by the. Fire Department but owned by the City. D. Expiration of Authority. The rights and obligations of the Fire Department as defined in this Section 13 shall terminate concurrently with the expiration or termination of this Contract. 14.0 Amendments. This Contract may only be amended by written consent of both parties. 15.0 Contracts and Exhibits. This Contract, including the exhibits attached hereto, contains the entire agreement of the parties. All preliminary negotiations are merged into and incorporated into this Contract. 16.0 Waiver. The action or inaction by either party, with knowledge of any breach of this Contract by the other party; or of any default on the part of the other party, in the observance or performance of any of the obligations or covenants of this Contract, shall not be deemed to be a waiver of any of the provisions of this Contract. No failure on the part of either party to enforce any obligation or covenant herein contained, nor any waiver of any right hereunder by either party unless in writing, shall discharge or invalidate such obligations or covenant or affect the right of said party to enforce the same in the event of any subsequent breach or default. 17.0 Invalidity. If any part of this Contract, or any part of any provision hereof, shall be adjudicated to be void or invalid, then the remaining portions hereof not specifically adjudicated to be invalid, shall be enforced without reference to the part of portions so adjudicated, insofar as such remaining provisions are capable of enforcement. 18.0 Governinq Law. This Contract shall be subject to and governed by the laws of the State of Minnesota. 7 IN WITNESS WHEREOF, City and Fire Department have executed this Contract by their authorized officers as indicated below: Approved by Resolution No. and adopted on the day of .2018. Approved and adopted on the day of , 2018. CITY OZ-- REVIEW By:2 Sandy Martin Its: Mayor By: Terry chwerm Its: City Manager LAKE JOHANNA FIR DEPARTMENT, Inc. By: Tim Boehlke Its: Fire Chief 0 Item S. TO: Mayors and Councilmembers of Arden Hills, North Oaks, and Shoreview MEETING DATE: September 19, 2023 SUBJECT: Overview of potential fire district governance model Overview In 2021, the Minnesota Legislature added the option of Fire Protection Special Taxing Districts as an option for two or more cities to establish a special taxing district to provide fire service. This potential governance model was discussed in limited ways in 2021 and 2022. In 2023, the board has spent considerable time learning about a potential district, discussing the topic at seven meetings so far this yea r. The discussion has resulted in a great deal of information answering the questions that have been raised thus far by board members. Attached to this report is a memo from June 20, 2023 outlining the topic and a question and answer document which has been updated throughout the discussion. Attachments 1. Fire District Discussion memo -June 20, 2023 2. Information regarding the potential transition to a fire district Page 1 of 1 Lake Johanna Fire Department Board of Directors Fire District Discussion Revised 6/20/23 Why the interest in creating a Fire District? In 2021, the Minnesota State Legislature amended Statute 2020, section 275.066 Special Taxing Districts adding Fire Protection Special Taxing Districts under 2990.01 giving authority for two or more cities municipalities to establish a special taxing district to provide fire protection or emergency medical services within the area of the district. At a Board of Directors meeting, Arden Hills Councilmember and Board of Directors Representative Dave McClung informed the board members of this new legislation. At that time, it was generally agreed that this might be a good alternative for the cities to consider given significant future operating and capital funding needs in the future. Current Governance Model The Fire Chief reports to the Board of Directors. The Board of Directors consists of seven (7) Board Members allocated as follows: City Representatives Shoreview — 2 Board Members Arden Hills —1 Board Member North Oaks — 1 Board Member Fire Department Representatives At -Large — 3 Board Members The Fire Chief serves as the Chief Executive Officer and is responsible for day-to-day operations of the Fire Department, recommends policies and programs, has the authority to hire, discipline and terminate all staff. The Fire Chief prepares operating and capital budgets for the Board of Directors. Historically, if one city is not in favor of the proposed budget(s), the budgets are adjusted until all three cities are in favor. Historically, the board voting on approving budgets does not occur until all three cities are in favor of the budgets. Once the board approves the operating and capital budgets, each city must individually approve their percentage share of the budgets for the following year. The Board of Directors has adopted a "Fire Distribution Formula" based on the following criteria: 25% Population, 25% Households, 10% Market Value, and 40% Fire/EMS calls. For 2023, the cities' share of the budget is: Arden Hills 24.9%, North Oaks 14.4%, and Shoreview 60.7%. This formula is also averaged over a five-year period creating stability. For historical purposes, no city has gone up or down more than 1.4% in total between 2015 and 2023. Year over year, no city has gone up or down more than 0.5%. Highlights of the Current Governance Model: 1. Ensuring continuity within the business structure has proven to be difficult which leads to the revisiting of previously "decided" upon items which has led to significant delays to changes to meet today's needs. 2. While the cities do work well together, it can, at times, be difficult to operate by 100% consensus across all three cities and the board (four separate majority votes) which has led to significant delays to change to meet today's needs. 3. Although the history of "why" is known and understood, having subordinates (firefighters) as board members is no longer appropriate for the business. This is not a good business practice for the future. 4. Today, there is not a process to ramp up the budget to prepare for upcoming changes. Committing financially to anything beyond the next 12-month period is absent. Fire District Governance Model State law requires that Fire District Board Members must be made up of elected members of the governing body of the political subdivision and serve at the pleasure of that participant's governing body. One example of what the Board could look like with the current three -city makeup: City Board Representatives Arden Hills — 2 Board Members North Oaks — 2 Board Members Shoreview — 3 Board Members The Fire Chief would report to the Fire District Board. The Fire District Board may elect to form an Operating Committee. This committee would likely include the City Managers/Administrators from the member cities. This Operating Committee would meet monthly with the Fire Chief and other staff as needed, and report to the board at each regular meeting. The Operating Committee would likely have the authority to approve budgeted expenditures during monthly meetings. Non -budgeted expenditures would likely need to be approved by the Board. A list of bills would be provided to each member of the operating committee monthly. Special Taxing District State Statute allows for two taxing options for the Fire District: a.) The Board may levy a tax on the taxable real and personal property in the district. The proceeds of the levy must be used as provided in statute. b.) The Board may apportion its levy among the political subdivisions under a formula or method. The amount of the levy allocated to each political subdivision must be added to that political subdivision's levy and spread at the same time and in the same manner as provided by law for other taxes. The proceeds of the levy must be collected and remitted to the district and used as provided in this statute. Use of the Levy Proceeds The proceeds of the property taxes levied must be used to provide fire protection or emergency medical services to residents of the district and property located in the district, as well as to pay debt issued. Debt The district may incur debt under chapter 475 when the board determines doing so is necessary to accomplish its duties. In addition, the board of the district may issue certificates of indebtedness or capital notes to purchase capital equipment. Information regarding the potential transition to a fire district 9/14/2023 Notes Question : :What is a realistic timeline to implement afire district? ................................ ...................................................................................................................................................................................................................... .................................................................................................... Answer It would likely take one-year to complete !Opinion of Chief Boehlke ,uestion2 : :Will the fire department need to disband or dissolve? ........................ ...................................................................................................................................................................................................................... ....................................................................................... Answer ::The financial and operational functions can be kept separate or they can both be handled by ::Opinion from attorney Erich Hartmann :the Fire District. In other words, two structures could be used: (1) the Fire District could be used merely to levy taxes, manage the budget, and handle the financial aspects only while the :fire protection operations are accomplished by the Fire Department; or (2) the Fire District can :handle all the financial and operational functions as an entity that directly employs firefighters,:: :owns the fire stations and equipment, and is managed by a single board. The second option :the Fire District operating as a fire department, makes sense because it eliminates the Ireclunclancy of administering two boards and maintaining the Fire Department as a separate I :entity, including corporate and financial recordkeeping and reporting. It would be appropriate Ito dissolve the Fire Department after the Fire District has been established and the merger is :completed. Dissolving a nonprofit corporation such as the Fire Department involves several ::steps, as outlined below, and takes several months to complete. Thus, you should anticipate :an interim period during which the Fire Department will continue to operate in concert with :the Fire District until all assets and liabilities of the Fire Department are transferred to the :District and the Fire Department is dissolved. Question What would the fire department need to do to become part of the new fire district? ......................... ...................................................................................................................................................................................................................... ....................................................................................... Answer ::An initial overview of the steps to transition from the Fire Department to the Fire District :Opinion from attorney Erich Hartmann :follows: a. Each municipal partner must approve a resolution and an agreement concerning :the Fire District, as outlined in Joe Kelly's December 27, 2021, memo and pursuant to Minn. :Stat. § 144F.01. b. The municipal resolution or agreement must specify that the Lake Johanna lFirefighters Relief Association pension plan is associated with the Fire District. § 144F.01, Subd.:: 12(c). c. The Fire District must file the establishing resolution and required agreements (and any :amendments) with the Minnesota Department of Revenue. d. Bylaws of the Fire District :should be prepared for execution upon formation of the Fire District. e. I anticipate that the ::Fire Department will dissolve, following this process: a. Prepare resolutions of Fire Departmenti lboard and members approving the dissolution of the Fire Department and transfer of all its :assets to the Fire District. b. Prepare notice of meeting of Fire Department members stating :that a purpose of the meeting is to consider dissolving the corporation. c. Hold meetings of :board and members. d. Proceed with dissolution (Minn. Stat. § 317A.701(a)(2)): i. Prepare and I :file Notice of Intent to Dissolve with Secretary of State. ii. Submit Notice of Intent to Dissolve I irequired by Minn. Stat. § 317A.811 with Attorney General. iii. Commence winding up process 317A.725 and 317A.735). 1. Collect any debts owed to the Fire Department. 2. Pay or :rnake arrangements to pay debts, liabilities, and obligations of the Fire Department. Chief :Boehlke April 5, 2023 Page 3 3. Complete § 317A.811 requirements prior to transfer of Fire Department assets to Fire District. 4. Obtain waiver or satisfy 45-day notice period (to AG) in § ::317A.811, Subd. 2. 5. Transfer assets in accordance with § 317A.735. a. Confirm adequate iinsurance is in place for the Fire District. b. Deed the real estate to the Fire District. c. Assign ::trucks, equipment, and personal property to the Fire District. 6. Submit to Attorney General a :list of persons to whom assets were transferred pursuant to § 317A.811, Subd. 4. 7. Prepare :and file Articles of Dissolution with Secretary of State. Question !What would the governance structure of afire district be? ................................ ................................................................................................... Answer ::The bylaws of the fire district would likely determine this; board members must be elected :Minn. Stat. § 144F.01 :officials. Question lWould the fire department be able to keep its tax-exempt status? ............................................................................................................................................................................................................................................................................................................................................................ Answer ::The Fire District will be exempt from tax as a special taxing district that operates a fire ::Opinion from attorney Erich Hartmann :department. I recommend having an initial discussion now with your accountant. Question ::What would the fire districts' budget and finance controls look like? ................................ . ...................................................................................................................................................................................................................... a.................................................................................................... Answer ::The bylaws of the fire district would determine this. :Statement from Brad Martens Information regarding the potential transition to a fire district 9/14/2023 Notes Question : :What staffing changes would be required for the fire district? ................................ ...................................................................................................................................................................................................................... .................................................................................................... Answer None are anticipated due to a move to a fire district. :Opinion from UFD Admin Question 8 How would moving to a fire district impact full-time and part-time firefighters day to day .:operational roles? ................................ ...................................................................................................................................................................................................................... ................................................................................................... Answer :No changes are anticipated in the day to day operational roles. :Opinion from UFD Admin Question 9 :Will the fire district be able to continue to send its part-time firefighters to the Lake Johanna :Firefighters Relieve Association for pensions? ............................................................................................................................................................................................................................................................................................................................................................ Answer I Yes :Opinion from attorney Erich Hartmann Question 10 ::What happens to the fire department owned equipment and station? ................................ . ..................................................................................................................................................................................... ........................................................................ Answer ;:All fire department equipment and St. 120 would become property of the fire district. Opinion from UFD Admin Question 11 ::How would the Pine Tree property be transitioned to the fire district? ........................................................................................................................................................................................................................................................................................................................................................... Answer ::The property must be transitioned to the JPA or to the Fire District in order to utilize state ::Opinion from UFD Admin :funds ($6.37M). Question 12 How would the tax line item be listed on a property tax statement? .............. ................. ...................................................................................................................................................................................................................... .................................................................................................... Answer ::The tax line item would be listed on the tax statement under "Special taxing districts" Ramsey County Property Tax Division Question 13 Who would vote to approve a fire district levy amount? .............. ................. ...................................................................................................................................................................................................................... .................................................................................................... Answer ::The Fire District Board of Directors. ::Minn. Stat. § 144F.01 Question 14 What would be the governance structure of the fire district board? .............. ................. ...................................................................................................................................................................................................................... ................................................................................................... Answer ::Each participating political subdivision's representative must be an elected member of the :Minn. Stat. § 144F.01 :governing body of the political subdivision and shall serve at the pleasure of that participant's ::Opinion from UFD Admin ::governing body. The bylaws would determine the specifics such as number and allocation of :board members. Question 15 ::What is the budget impact to cities with a weighted levy compared to a tax capacity levy? Answer :Current Formula (2023): ::Brad Martens :Arden Hills: 24.9% of budget Ramsey County :North Oaks: 14.4% fo budget ::Shoreview: 60.7% of budget Tax Capacity (2023): Arden Hills: 22.2% of budget North Oaks: 22.5% of budget Shoreview: 55.3% of budget Question 16 : :What are the alternatives to a fire district? ................................ ...................................................................................................................................................................................................................... ................................................................................................... Answer I Remain as we are. Transition to a single city department that could contract with others for ::Opinion from UFD Admin :service. Question 17 ::Are any of the cities interested in taking over the fire department? ................................ ...................................................................................................................................................................................................................... .................................................................................................... Answer ::Arden Hills - Answer North Oaks - Answer :Shoreview - Board members Denkinger and Martens are not in favor of the City of Shoreview :taking over the fire department. jestion 18 ::Do two-thirds of the firefighters need to approve the change to a fire district model? ........................ ...................................................................................................................................................................................................................... ....................................................................................... Answer I No. The active members will need to approve the dissolution of the Corporation, but not ::Opinion from attorney Erich Hartmann lby a two-thirds vote. A quorum for member meetings is one-third of the active members. :(Bylaws § 8.9.) Member approvals require the affirmative vote of a majority of the active :members present at a meeting at which a quorum has been established. (Minn. Stat. § ::317A.443, Subd. 1.) Question 19 : :What is the urgency for discussing this topic now? ................................ : ...................................................................................................................................................................................................................... .................................................................................................... Information regarding the potential transition to a fire district 9/14/2023 Notes ......................... Y ...................................................................................................................................................................................................................... r ..................................................................................... Answer :Important decisions related to staffing and facilities have been in conversations at the board :Statement from UFD Admin and Brad :level for several years and are the primary driving factor forth is discussion. These are costly Martens ::and complex decisions which must now be made in the near future. The current governance :structure of the board and past practice of getting all three cities to agree unanimously on :decisions has proven to be challenging. This has led to the discussion of anew governance Imodel of afire district in order to streamline the decision making process. Afire district board I :would have the only vote for decision making as compared to the current model and practice I :of having majorities of three city councils approve decisions. Question 20 Mhat if any deadlines exist for making this decision? ................................ ...................................................................................................................................................................................................................... .................................................................................................... Answer :There are no official deadlines however there are things that could be impacted by timing such::Opinion from UFD Admin :as the ability to accept state funding or when the first "income" check would be received from lRarnsey County as it relates to funds to cover operating costs. Question 21 ::What are the legal costs estimated for this process? ................................. ? ...................................................................................................................................................................................................................... a.................................................................................................... Answer Missolving the non-profit and transfering assets to the fire district etc. could cost upwards of ::Opinion from attorney Erich Hartmann ::$15-20K. Costs to create the fire district are estimated to be $5-10K. Question 22 1 How would the new building on Pine Tree be funded through a fire district? ............................................................................................................................................................................................................................................................................................................................................................ Answer ::The Fire District can incur debt for capital projects that would be paid for by direct taxes. ::Minn. Stat. § 144F.01 Question 23 Mow would additional staffing be funded through a fire district? ............................................................................................................................................................................................................................................................................................................................................................ Answer :Staffing would be paid for through the operating budget which is part of the levy. :Opinion from UFD Admin Question 24 Mhat would happen if one city did not support moving to a fire district? ............................................................................................................................................................................................................................................................................................................................................................ Answer I Not every city needs to participate. To create a fire district, two or more cities are required to ::Opinion from UFD Admin participate. Question 25 lHow would CIP purchases be funded in the initial years of a fire district? ................................ ...................................................................................................................................................................................................................... p.................................................................................................... Answer ::All three cities have savings for fire department CIP. Those funds need to be transferred to the::Opinion from UFD Admin I Fire District. Cloquet Fire District, for example, is still requiring assitance from their cities because they started with a $0 bank account. The savings already realized by the cities :shouldn't become a "bonus" to the cities by transferring that liability to the fire district. Question 26 Mhat happens to the Shoreview owned stations? ................................ ...................................................................................................................................................................................................................... ................................................................................................... Answer :Shoreview, who owns St. 130 and 140, could sell or lease those two stations to the Fire ::Opinion from UFD Admin District. Question 27 1 Does the Fire District have the ability to incur debt? ................................ ...................................................................................................................................................................................................................... .................................................................................................... Answer Yes. Minn. Stat. § 144F.01 Question 28 : :What fire department dissolution options are there? ............................... ...................................................................................................................................................................................................................... .................................................................................................... Answer :There are two dissolution options per the contracts. ::Reference all three individual contracts ::Fire Department Initiated: ... assets shall be conveyed to a successor organization which ibetween the cities and the fire department provides Fire Protection Services to [all three cities]; or, if a successor organization does not ::provide Fire Protection Services to all three cities, assets shall be conveyed to the [three cities] I in a manner and in the proportions deemed appropriate by such cities. !City Initiated: ... assets shall be liquidated. Question 29 Are there another option to change the governance model to streamline the decision making i process without transitioning to a Fire District? ...... .......................... . ...................................................................................................................................................................................................................... ................................................................................................... Answer ::Fire Department/City Contracts could be updated. ::Opinion of the UFD Admin UPA Agreements could be updated. :Fire Department Bylaws could be updated. Question 30 1 How does the bond rating get set for the district to incur debt? ................................ .................................................................................................................................................................................................................. .................................................................................................... Answer lCity Finance Department Information regarding the potential transition to a fire district 9/14/2023 Notes Question 31 :If the three cities were to adopt a 'Termination Resolution" to end the "Contract" with the Fire; :Department, giving the 1 year of prior notice required, would the Fire Department still need to : :vote to dissolve? ............................................................................................................................................................................................................................................................................................................................................................ Answer :Yes. I assume the Fire District will be the operating entity, taking the place of the :Opinion from attorney Erich Hartmann :existing nonprofit corporation (see my April 5 memo at 1). If so, then we need to :dissolve the Lake Johanna Fire Department, a Minnesota nonprofit corporation (the : "Corporation"). Dissolution of the Corporation is governed by Minn. Stat. §§ 317A.701 :to 317A.791. The dissolution procedure outlined in my April 5, 2023 memo is a :summary of the statutory requirements. Question 32 ::What would the Firefighters be voting on? Voting for dissolution or against :dissolution? How is this initiated? ................................ :...................................................................................................................................................................................................................... .................................................................................................... Answer :The active members of the Corporation will need to vote for dissolution. The process is :Opinion from attorney Erich Hartmann :outlined in my April 5 memo in 2.e. I am attaching an updated version of that memo :with additional citations. Question 33 ::Who authorizes the Chief/CEO to Terminate City Contracts? The Fire Department :members? Or Board of Directors? ...................................................................................................................................................................................................................... p .................................................................................................... Answer :I have not reviewed the City Contracts, but the business and affairs of the Corporation are :Opinion from attorney Erich Hartmann managed/controlled by the Board of Directors. (Minn. Stat. § 317A.201.) That is a :Board decision. Question 34 :Are there any Fire Department Bylaw changes that should be made to make :dissolution or transition to a Fire District an easier path? ...............................:............................................................................................................................................................................................................................................................................................................. Answer :If you are able to mail notice to all active members and achieve a quorum of one third of :Opinion from attorney Erich Hartmann :the active members at a special meeting, I do not see any issues at this time with the :Corporation's Bylaws. :As a minor issue, the references in the Relief Association Bylaws to the "Lake Johanna ::Fire Department" should be updated in the future. Question 35 :If "City A" decides not to participate in the Fire District but "City B" and "City C" :decide to proceed with the Fire District, how does that "separation" work? ........................................................................................................................................................................................................................................ Answer :I do not have the City Contracts. I need to examine those to determine how the assets :and liabilities are allocated upon termination. I assume the most likely scenario of City A not participating is a scenario where City A obtains fire protection services from another :entity. :Otherwise, non -participation by City A in the Fire District would frustrate your plans to :streamline and simplify the governance, revenue, administration, and —most :importantly —delivery of fire protection services for your partner communities. :If fire protection is provided for City A, you will have to maintain the Corporation simply :to provide operations for City A. That is because a fire district is only authorized to provide fire protection services in the jurisdiction of each city forming the district. (See :Minn. Stat. § 144F.01. Subd. 2.) :Thus, by far the simplest and most logical arrangement is one where every city you serve :is part of the Fire District. Opinion from attorney Erich Hartmann Question 36 .......................................................................................................................................................................................................................................................................................................................................................... Answer ,-ARZEN HILLS MEMORANDUM DATE: October 9, 2023 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: TCAAP Planning Discussion Budgeted Amount: Actual Amount: N/A For Council Consideration N/A AGENDA ITEM — 3B Funding Source: N/A Council should consider providing direction on how and when to discuss future TCAAP topics. Background Council is being requested to provide direction on how and when it would like to discuss TCAAP related items; a number of items are below but Council can certainly add to the list. JDA Density Recommendation The Joint Development Authority (JDA) received a density scenario presentation from Bob Lux of Alatus, this scenario was focused on increasing density from 1,460 units to 1,960 units. The presentation packet can be found on the City's website along with a recording of the meeting (link to meeting: htips://webstreamina.ctvl5.org/viewer.php?streamid=6603). At a subsequent meeting, the JDA voted to request both the City and County consider the additional density scenario (link to meeting: https://webstreaming.ctvl5.ora/viewer.php?streamid=6610), and if acceptable, make necessary changes to the TRC (the City would also need to update its Comprehensive Plan). This item is not intended to discuss the density plan this evening, but rather how the Council would like to review and consider changes. Council may direct Staff to move forward with drafting the necessary changes and bringing forward the updates to Planning Commission and City Council for review and approval; another option would be for the City Council to discuss draft language at a worksession, or Council make choose to go in a different direction entirely. TCAAP Visioning The Council has discussed having a TCAAP Visioning topic at a worksession. Should Council still want to move this forward, Council should consider providing Staff direction on when and how this should happen, what topics are to be discussed, and to the extent possible what information should Staff provide in -advance. It may be combined with the density recommendation above, or an entirely separate discussion. Page 1 of 2 TCAAP Public Engagement Council has discussed the possibility of a public engagement event run by the City. As Council is well aware, the JDA event is scheduled for November 1st. Council may want to consider an event in -addition to this event, or does it want to wait and see how the November 1" event unfolds. Other TCAAP Related Items Council may also take the time to direct Staff on any other upcoming TCAAP related items it would like to discuss. Budget Impact N/A Attachment N/A Page 2 of 2 AGENDA ITEM — 3C ,-ARZEN HILLS MEMORANDUM DATE: October 9, 2023 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: Lake Johanna Boulevard — Permanent Mount Speed Display Sign Budgeted Amount: Actual Amount: Funding Source: $0 $5,000 (estimate) PIR - Streets Council Should Consider Council should consider installing a permanent mounted speed display sign on Lake Johanna Boulevard. Background Residents along Lake Johanna Blvd (LJB), specifically the neighborhood near Sandeen Rd and Stowe Ave, have submitted numerous complaints about excessive speeding and unsafe conditions to Ramsey County and Arden Hills representatives over the past several years. LJB is a Ramsey County road, therefore it is under their jurisdiction, the speed limit is set at 30 mph which is determined, and limited, by statutory law. Previously, the City Council has formally requested to Ramsey County that traffic calming features be added to LJB, such as, addition of stop signs, speed bumps, rumble strips, and plastic pedestals. These features were determined as not feasible for reasons of snow removal, engineering traffic studies show no warrant for additional stop signs, and other Ramsey County policies. Ramsey County has implemented different striping techniques, they have narrowed the drive lanes and added extra striping in the shoulder area. Arden Hills owns a portable speed display sign that is placed in the area frequently. Page 1 of 3 The discussion for this item is for Council to consider installing a permanent mounted speed display sign along LJB in the area shown below: The City currently has 7 speed display signs, 5 of which are located on County roads; Hwy 96 eastbound near the Holiday gas station, northbound and southbound Old Hwy 10 near the Hwy- 694 bridge and westbound and eastbound on County Rd E2 near Valentine Elementary. Through past experience, Ramsey County is receptive to Cities that wish to install speed display signs on County roads following their standard permitting process. Additional information for City Council, Ramsey County is scheduled for a Work Session on November 20, 2023, for discussion about the existing conditions of LJB and future plans/considerations. Page 2 of 3 Discussion City Council is to discuss the addition of a City owned and operated speed display sign along LJB near Sandeen Rd and Stowe Ave. With Council direction, City staff would begin the permitting process with Ramsey County and purchase the necessary equipment. The City would need to hire a contractor for installation of the sign due to traffic control requirements. Budget Impact The implementation of the speed display sign is anticipated to be 100% city cost. Speed display sign $4,000 Installation $1,000 Estimated Total $5,000 Replacement batteries and other components must be purchased through the same vendor. Each unit contains 4 batteries, each battery costs about $200 and they will typically need to be replaced every 3 - 5 years. Attachments N/A Page 3 of 3 OPTIONAL ITEM — 4A ,-ARZEN HILLS MEMORANDUM DATE: October 9, 2023 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Food Donation Discussion Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration Council should consider providing direction on hosting a food donation box at City Hall. Background Council requested Staff to bring forward a discussion on hosting a food donation box at City Hall. Staff did contact the Ralph Feeder Food Shelf as they do something similar with other organizations in the area, such as the City of Shoreview and the Lake Johanna Fire Department. The commitment is minimal from the City's perspective, when the donation box is full a Staff member would need to transport it to Ralph Reeder. If Council is supportive, Staff will put a box in the lobby and advertise it in the newsletter and on the City website. If this is not what Council was looking for, please provide Staff additional direction on how best to move forward. Budget Impact N/A Attachment N/A Page 1 of 1 OPTIONAL ITEM — 4B ,-ARZEN HILLS MEMORANDUM DATE: October 9, 2023 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Council Tracker Update Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The Council should provide further direction on items presented on the Council Request Tracker. Background City Council will receive a verbal update on items the Council has previously directed staff to research and/or bring forward. Discussion N/A Budget Impact N/A Attachments N/A Page 1 of 1