ADMINISTRATION - Joe Huss, Finance Director
Title
AMEND THE JOINT POWERS AGREEMENT (JPA) FOR PROVISION OF FIRE SERVICES WITH THE CITIES OF MOUNDS VIEW AND SPRING LAKE PARK
Background
In the latter part of 2019, the Council requested staff to initiate the process of amending the Joint Powers Agreement (JPA) for the provision of fire services of which the cities of Blaine, Mounds View, and Spring Lake Park are members. Of concern to the Council was easing the administrative process for the three cities to issue debt under the JPA and developing a cost sharing formula that better reflects current conditions.
On the first issue, under the existing JPA, in order to issue bonds or other debt instruments, a supplement to the JPA, approved by all members and specifying each of the joint power member cities’ obligations to the particular debt issue, is required. The amended JPA streamlines the debt issuance process by providing authorization for the cities to issue debt without the need to first approve a supplement to the JPA.
For the second issue, the current formula used to determine the dollar amount that each member pays annually dates to the inception of the JPA and takes into account a three-year rolling average of (1) each city’s estimated total market value of property and (2) calls for service. The two components are given equal weight in determining the percentage of costs for each city. In the early years of the JPA, Blaine paid roughly 65% of the SBM contract with Mounds View paying 24% and Spring Lake Park paying 11%. As expected with Blaine’s tremendous growth in the ensuing 25 years, the formula percentages changed dramatically and the percentages that would be paid under the current agreement in 2021 would be: Blaine 77.14%; Mounds View 14.84%; and Spring Lake Park 8.02%.
In reviewing the status of the JPA, the Administrative Committee (comprising the Blaine City Manager and the City Administrators of Mounds View and Spring Lake Park) recognized the Joint Powers had reached a point whereby a fixed percentage split, rather than a formula-based split, was a more equitable and preferred way of allocating costs among the members. To that end, the Committee is recommending the JPA be amended to reflect the following fixed percentages for allocating costs: Blaine 76%; Mounds View 15.5%; Spring Lake Park 8.5%.
Recommendation
Approve the following Resolution.
Body
WHEREAS, the Cities of Spring Lake Park, Mounds View and Blaine (collectively the “Cities”) have determined that it is mutually beneficial to cooperate in providing fire protection services to their residents; and
WHEREAS, the Cities propose, pursuant to the provisions of the Minnesota Joint Powers Act, Minn. Stat. §471.59, to amend that certain Joint Powers Agreement for the Provision of Fire Protection Services dated December 11, 1990, as previously amended and supplemented.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine, Minnesota, as follows: The City Council hereby approves the attached Joint Powers Agreement for the cities of Blaine, Mounds View, and Spring Lake Park for the provision of fire protection services.
BE IT FURTHER RESOLVED that the Mayor and City Manager are hereby authorized to execute the Joint Powers Agreement on behalf of Blaine, and to carry out on behalf of Blaine, Blaine’s obligations thereunder.
PASSED by the City Council of the City of Blaine this 21st day of December, 2020.