8.c) Staff Report-May Fire ContractSCANDIA
Staff RepoVt
Date of Meeting: February 17, 2015
To: City Council
From: Kristina Handt, Administrator
Re: May Fire Contract
Background:
The, and previously the township, has provided fire protection services to parts of May
Township for a number of years. The most recent contract covered 20012-2014.
Issue:
Should the City Council approve the proposed contract with May Township for Fire Services?
Proposal Details:
A new three year contract is included in your packet. The format is generally the same as
previous contracts. A change was made to area covered by Scandia. Exhibit A is attached to
show the properties in our coverage area. Previously Scandia Fire and Rescue covered both
sides of Olinda Trail and the eastern edge of the service area. However, that has now been
reduced to just the western side as shown on the map. This resulted in 20 fewer homes in
Scandia's service area. As a result of fewer homes and a decrease in the overall fire budget,
May's contribution rate was decreased to $32,248. It will increase by 3% in 2016 and 2017.
The May Town Board has already approved this contract.
Fiscal Impact:
These new numbers had not been known and calculated prior to the adoption of the 2015 budget.
The 2015 budget assumed $34,511 or almost $2,000 less than the actual contract price. As with
any line item in the budget, revenue and expenses are best estimates at the time.
Options:
1) Approve contract
2) Amend and then approve contract
3) Do not approve contract and provide notice to cease services
Recommendation:
Option 1.