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6. MayScandiaFire18 (002)TOWN }� Of MAY ( Est. L893 December 29, 2017 CHAIRMAN SUPERVISOR Bill Voedisch John Adams 14625 Old Guslander Trail 14035 Oldfield Road N. Marine on Se Croix, MN 55047 Stillwater, MN 55082 (651)433-5976 (651)430-8134 TOWN CLERK TREASURER Linda L. Kirin Cheryl D. Bennett 13519 May Ave. No. 16624 Square Lake Trail N. Stillwater, MN 55082 Stillwater, MN 5508.2 (651) 439-1706 • Fax (651) 43o-0107 (651) 439-8599 To: Scandia Mayor and City Council Neil Soltis, City Administrator From: Bill Voedisch, May Town Board Chair Re: Fire Contracts, 2018 and Beyond SUPERVISOR John Pazlar 16601 Orwell Road N. Marine on St. Croix, MN 55047 (651) 433-5013 PLANNING COMMISSION John r A.rnason 15149 Old Guslander Trail Marine on Sr. Croix, MN 55047 (651)433-8510 Staff between our two municipalities have been discussing a new fire contract since our current one expires at the end of the year. At the heart of discussion is the formula used to calculate May Township's share of Scandia's fire expenses. The formula for calculating May's share of Scandia's fire expenses The issue being discussed is the formula used to allocate Scandia's fire expenses across our two municipalities and thus calculate May Township's share. Up to now we have used population as the sole measurement: Pop (May) = Population of May's service area Pop (Scandia) = Population of Scandia May's % Share = Pop (May) / (Pop (May) + Pop (Scandia)) We have mutually used this formula for many years however at this point May Township has proposed using the Minnesota State Formula to calculate our respective shares. What is the State Formula? Years ago the State of Minnesota adopted a formula based on "Guidelines for Minnesota Fire Protection Contracts" (rev. November, 2001) as drafted by the Fire/ EMS/ Safety Center. The formula uses three measurements to determine the share of fire expenses: Population Assessed value of property Number of runs The formula goes beyond just using population, to include two other factors that can be predictors of potential stress on the fire and rescue resource, namely assessed property value and the number of runs. This formula has been adopted by the Minnesota Association of Townships (MAT) as well as the League of Minnesota Cities (LMC). The MAT sample contract is attached and you will note that all three of the factors are part of formula. Assessed value of propertX Just as population as a formula factor recognizes that the number of people is a predictor of resource use, so assessed value of property as a formula factor recognizes that the amount of real property (structures) is also a predictor of resource use. Clearly buildings of an accessory or commercial nature, when serviced by utilities (electrical and/or gas) are candidates to become involved in fire, just as homes are. Number of runs This factor recognizes that in addition to the first two factors, the actual number of runs should also be considered in the formula. Using number of runs is a way to account for a particular segment within either municipality generating more than a fair share of calls, such as the Vet's Rest Camp in May Township, with its sometimes elderly and infirmed user community. The recommendation here is that the parties use a 3 -year rolling average for the number of runs since a single year for either party may be abnormally high or low, and would skew the results if that was the year used to set new 3 -year contract terms. Where is the State Formula used locally? The City of Stillwater has provided fire and rescue services to three other communities for many years: May Township, Stillwater Township and Grant. Stillwater has always used the State Formula in calculating fire contracts for their three "customer" communities. Early on, Stillwater described the basic fairness of the State Formula, and we all agreed to use it. Next steps The Town would like to discuss this matter and receive feedback from you. here so we know where we are at. To assist matters we can make ourselves available to come to a Scandia City Council meeting in January. In the meantime, since we are still negotiating in good faith yet we will be going past the end of the year, we respectfully ask that the 5% extension penalty be waived until we can get the matter resolved. We propose to continue under the same contract terms with a 3% increase. Thank you for your consideration.