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PACKET Town Board Study Session 2009-01-13
flLTOWNBOARDTuesday,January13,20095:15p.m.to6:30p.m.Room2021203170MacGregorAve.AGENDA1.FireDistrictIGA&ServicePlan.2.Miscellaneous.NOTE:TheTownBoardreservestherighttoconsiderotherappropriateitemsnotavailableatthetimetheagendawasprepared.STUDYSESSION JackieWilliamsonFrom:EPAdministration[ir3045@estes.org]Sent:Thursday,January08,200912:19PMTo:JackieWilliamsonSubject:JobDoneNotice(Send)*****************************JobDoneNotice(Send)*****************************JOBNO.1021ST.TIME01/0812:12PGS.1SENDDOCUMENTNAMETX/RXINCOMPLETETRANSACTIONOK6672527GregWhite5869561KEPL5869532TrailGazette5861691Channel86353677ReporterHerald2247899Coloradoan5771590EPNewsERROR1 AdministrationMemoTo:HonorableMayorBillPinkhamandBoardofTrusteesFrom:JacquieHalburnt,TownAdministratorDate:January8,2009Subject:FireDistrictIGAsandFundingPlanBACKGROUND:TheFireDistrictInitiativesCommitteemustsubmitaserviceplantoLarimerCountybyFebruary1.Inordertomeetthisdeadline,thetownandthecommitteemustagreeuponaplanforfundingthedistrictalongwithmutualagreementoftheIntergovernmentalAgreement(IGA)content.Staffmetwiththetaskforcememberswhoaretransitioningtotheinitiativescommitteeandthefollowingissuesemerged:-$750Kcap-Townretainsownershipoftheequipment/leasetodistrict-Townloansmoneyforlegalandelectionexpenses-SeparateIGAforFirefighterPension-2011operationsandfunding-OptionalFeeforFireServicesin2010A.$750,000CapThefiretaskforcerecommendationfortownfundingis7%ofsalestaxonanannualbasis.Amaximumdollaramountof$750,000wasdiscussedtomaketheagreementmorepalatabletofutureboards,whichcouldchoosetoeliminatetheIGA.Amaximumdollaramountmayalsopacifytownresidentswhofeeltheyarepayingtwiceforfireservices(propertyandsalestax).Theinitiativescommitteeisadamantlyagainstamaximumdollaramount.B.Townretainsownershipoftheequipment/leasetodistrictThismeasurewasrecommendedtoprotectthetown’sassetsintheunlikelyeventthefiredistrictdoesnotsucceedafterthepassageofavote.Thetownwouldstillallowthedistricttousetheequipmentfortrade-invalue.C.Townloansmoneyforlegalandelectionexpenses Forthepasttwoelections,thetownhaspaidfortheelectionandlegalexpensestiedtosettingupafiredistrict.GregWhitewillcommentontheserviceplanandIGA5onbehalfofthetown,butaseparateattorneyrepresentingthefiredistrictshouldcommentonitsbehalf.Thedistrictwillreimbursethetownforelectionandlegalexpensesifitisapproved.D.SeparateIGAforFirefighterPensionAccordingtostatestatutes,thetownhasacontinuingobligationtomaintainthepensionfundsforthepeoplecurrentlyenrolled.InthisIGA,thedistrictwillagreetoabsorbthetown’spensionobligationintoitsnewpensionfund.E.2011operationsandfundingPropertytaxesarecollectedbasedupontheprioryear’sassessmentofproperty.Becausethefiredistrictwouldbeanewobligation,there’snothingtoassessagainstfor2010.Thismeansifthedistrictisapprovedin2009,2010willbecometheprioryear’sassessmentandthedistrictwillreceivemoneyin2011.ThedistrictplanstotakeoverfireoperationsbeginningJanuary2011;however,theywillnotreceiveanysalestaxuntilMarchandpropertytaxuntilApril.Weareproposingthetownadvances9monthsworthofsalestaxtothedistrictfor2011only.Thetownwillbeginpaying7%ofactualsalestaxcollectionsonamonthlybasisoncetheinitial9monthsadvancehasbeenreconciled.F.OptionalFeeforFireServicesin2010Ifthefiredistrictpassesin2009,propertytaxeswillnotbepaiduntil2011.Ifthetownisresponsibleforthefiredepartmentin2010,webelievetheoptionalfeeforfireserviceshouldcontinuetobecollectedandthedepartmentrunstatusquo.BUDGETICOST:TheFireDistrictisrequesting7%oftowncollectedsalestaxonanannualbasis.Bypayingthedistrictmonthlybasedonactualsalestaxreceivedfromthestate,therewillbenoongoingneedtoreconcilepaymentsonanannualbasis.In2008,thegeneralfundtransferforfireserviceswas$921,000.SalesTaxcollectionswerebudgetedat$7.2million.Sevenpercenttoafiredistrictwouldhavecostthetown$504,000.In2009,thegeneralfundtransferforfireservicesis$435,000.SalesTaxcollectionsarebudgetedat$7.2million.Sevenpercenttoafiredistrictwouldcostthetown$504,000.Keepinmindthatwithouttheoptionfiresubscriptionfees,theobligationonthegeneralfundwouldbe$175,000moreor$605,000.Inordertoreachtheproposedmaximum$750,000payment,Townsalestaxcollectionswouldhavetoreach$10.7million.WORKSESSIONDISCUSSION:RepresentativesfromtheInitiativesCommitteewillattendtheworksessiontodiscusstheseissuessotheycanproceedwithfilingtheserviceplan.PleasebepreparedtodiscussanyotherconcernsyouQmayhavewiththeproposedIGAsandFundingPlan.GregWhitewillalsopresenthisreviewofthedocuments. AppendixBTransitionIGAOverview•EffectiveforNovemberandDecember2009andcalendaryear2010andfirstquarterof2011•FireProtectionDistrictshallserveallpersonsandpropertieswithintheboundariesofthe•districtequallyandwithoutprioritiesandfees••FireProtectionDistrictshallremainamunicipaldepartmentoftheTownuntiltheendofthe•transitionperiod••TownshallhavefullfinancialresponsibilityfortheFireProtectionDistrictduringthetransition•period-••TownshallprovideloanstotheDistrictfortheDistricttomeetminimumlegalobligationsand•otherexpenses••Transitionperiodshallbeterminatedwhen;•oDistricthassufficienttaxrevenuesandotherfundstomeettheremaining2011•obligationsoftheDistrict•oDistrictshallbecapableofassumingtheremaining2011financialobligationsoftheEstesParkFireDepartment•oTheterminationdateshallbemutuallyagreedtobybothpartiesaminimumof45dayspriortotheterminationdatem0pppp AppendixCOngoingIGAOverview•For2011andsubsequentyears,IGAautomaticallyrenewsforanadditionaloneyearperiod•IGAiseffectiveimmediatelyuponterminationoftheIGAcoveringthetransitionperiodp•DistrictcollectsadvaloremtaxesonpropertiesintheDistricttopayaportionofFireProtectionDistrictexpenses•Townmakes2paymentstoDistrictforeachcalendaryeartopayaportionofFireProtectionDistrictexpensesofirstpayment,madeinJanuary,isfor90%of7%ofexpectedsalestaxreceiptsforthe:yearosecondpayment,madeinFebruaryofthesubsequentyear,fortheremainderoftheI7%oftheactualsalestaxreceiptscollectedforthegivenyearI•TowntotransferownershipoftheTown-ownedphysicalassetsoftheEstesParkFireIDepartmenttotheDistrictI•TowntoleaseDaimelsfirestationtoDistrictfornominalfee•Towntoprovidedispatchservicestothefiredepartmentforanappropriatefee•DistrictshallconsultandinformtheTownorTownrepresentativesconcerning:oChangingneedsforfireandrescueservicesintheDistrictoChangesinthelevelofresponsetofireandrescueincidentsintheDistrictpoChangesandadditionsofmajorapparatus•oChangesinstationingofmajorapparatusintheDistrictI•DistrictmakesthefinaldecisionsonallFireDepartmentissuesI•DistrictwillassureandprotectthepositionsofsalariedstaffoftheEstesParkFireDepartment,Iexceptforsignificantcause,foraminimtm-iof36monthsfollowingthetransitionperiod••DistrictshallrepaytotheTownallloansundertermsoftheloanagreementsI•Districtshallhonorallpre-existingagreementsrelatedtofireandrescueservicesbetweentheITownandothergovernmentalentitiesI,_-oDistrictwillenterintoagreementwithLarimerCountyandtheLarimerCounty•J)SherifftoreplacetheIGAdated17Sept2007coveringfireservicesbytheTownandtheEstesParkFireDepartmentII AppendixDServicePlanOverviewaI•Introductionandoverview•ProposedFireProtectionDistrictwillaccomplish;•continuedfireandrescueservicesuniformlyandthroughouttheEstesValleyacommunity•providereliableandpredictableresourcesforthefiredepartmenta•helptomaintainthecurrentISOratingsandworktoimprovethoseratingsprovidelong-rangefundingforadditionalapparatusandfacilitiesaallowalleligibleelectorswithintheDistricttovoteforapprovaloftheDistrict,the•associatedpropertytaxlevy,andthemembersoftheBoardofDirectorsa•DistrictwillassumeownershipandoversightmanagementoftheFireDepartmenta•FireDepartmentandVolunteerDepartmentwillcontinuetheexistinglevelofoperations•FireDepartmentwillcontinuetobestationedattheDannelsFireStationQDistrictwillbefundedbyacombinationofpropertytaxrevenuesontaxablepropertiesandbypaymentstotheDistrictfromtheTownGeneralFundforFireDepartmentexpenses•NameofDistrict:EstesValleyFireProtectionDistrict•Servicesfiresuppression,prevention,andprotection,andemergencymedical,rescue,extraction,Haz-Mat,anddive-rescueservices•Proposedtaxlevy:1.95millsI•NonewfacilitiesfortheDistricttobeconstructedatthistimeIDistrictdoesnotanticipateacquisitionofnewmajorapparatusintheimmediatefutureI•Districtencompasses66.3squaremiles,andtheTownofEstesParkiswhollywithintheDistrict•Population:currentestimatedyear-roundpopulationoftheDistrictisapproximately10,000IEstimatesofassessedvaluation:estimatesofassessedpropertyvaluesfor2009and2010•areapproximately$265Mand$269M,respectively••ExpectedDistrictrevenuetobereceivedin2011:—$525,000Estimatedinitialadministrativeexpensesfor2010:initialindebtednessnottoexceed$40,000I•DistrictwillbecomefinanciallyviableinFebruary2011afterreceiptofpaymentforFireIDepartmentexpensesfromtheTownfor2011I•DistrictwillrepaytheloanstotheTowninaccordancewiththetermsofthespecificloanagreementsConclusionsII MemoDate:January13,2009To:TownBoardofTrusteesCC:JacquieHalburnt,LowellRichardsonFrom:GregoryA.WhiteRE:EstesValleyFireServiceTaskForce—IntergovernmentalAgreements—ServicePlanOnbehalfoftheTown,IhavereviewedtheproposedIGAsandServicePlanaccompanyingtheEstesValleyFireServicesTaskForceReportofOctober,20t)8.ThetwoIntergovernmentalAgreementsandtheproposedServicePlanarewelldoneandneedveryfewchanges.Mysuggestedchangesareaddressedasfollows:1.TransitionalIGA.Paragraph1shouldreadasfollows:“ThisAgreementshallbeeffectiveupontheexecutionbybothpartiesheretowhichshallOCCUfassoonaspossiblefollowingtheformationoftheDistrict.ThisAgreementshallcontinueinforceandeffectuntil]anuary1,2t)1I.“Paragraph6shouldreadasfollows:“TotheextentthisAgreementconstitutesamultiplefiscalyeardebtorfinancialobligationofeitherparty,itshallbesubjecttotheannualbudgetaryprocessandannualappropnanonofeachindividualentity,andArticleX,Section2t)oftheColoradoConstitution.NeitherpartyshallhaveanyobligationtocontinuethisAgreementinanyfiscalyearinwhichnosuchappropriationismade.”FireFee.IfitisdeterminedthattheTownshallbeentitledtocollectafirefeeduring2010,thetermsandconditionsofthefirefecshallbesetforthintheTransitionalIGA.AdditionalParagraphsThefollowingparagraphsshallheaddedtotheTransitionalIGA:DefaultandRemedies.IntheeventofdefaultunderthisAgreementbyeitherpart,thenon-defaultingpartyshallgivethedefaultingpartywrittennoticeofsaiddefault.Intheeventthe defaultingpartyshallhavethirty(30)daystocuresuchdefault.Intheeventthedefaultingpartydoesnotcurethedefault,thenon-defaultingpartyshallbeentitledtoallremediesavailableatlaworinequity,includingreasonableattorney’sfeesandcostsincurredbythenon-defaultingpartybyreasonofsaiddefault.Indemnification.Totheextentpermittedbylaw,thepartiesherebycovenantandagreetoindemnify,defendandholdharmlessoneanotherfromandagainstanyandallliability,claims,losses,expenses,costs,charges,damages,judgments,obligations,expenses,attorneyfees,litigation,and/ordemandsofanykindwhatsoeverarisingfromorduetotheindemnifyingparty’snegligenceintheperformanceofitsdutiesunderthisAgreement.Insurance.EachpartyshallmaintaincomprehensivegeneralliabilityandautomobileliabilityinsuranceduringthetermofthisAgreementwithaminimumcombinedsinglelimitcoverageofatleast$1,000,000.Suchinsuranceshallnametheotherpartyasanadditionalinsured.2.OngoingIGA.Paragraphs4.5and6shallberewrittentoreflectthenewpaymentscheduleoftheTown.ItismyunderstandingtheTownwillpay75%ofits7%shareofanticipatedsalestaxcollectionfor2011totheDistrictonorbeforeJanuary10,2011.TheTownshallthenpaytotheDistrict7%ofallsalestaxreceivedbytheTownwithinthirty(30)daysofreceiptofsaidsalestaxonamonthlybasiswhenthe75%paymenthasbeenreached.In2012andsubsequentyears,theTownshallpay7%ofsalestaxreceivedwithinthirty(30)daysofreceiptonamonthlybasis.Paragraph9shouldreadasfollows:ThelownshallallowtheDistricttooccupyandusetheDannelsFireStation.TheDistrictshallcomplywithallofthetermsandconditionsoftheSpecialUsePermitbetweentheUnitedStatesDepartmentoftheInteriorandtheTowndatedApril29,1996,SpecialUsePermit6-LM-60-L37l7;eurt’tthattheTowns/ia/Ibe,onjibk/rthetandstipedareaasshow,;onExhibit4ojtheSp&iulUfePermiLParagraph13shouldreadasfollows:“TheDistrictshallemploythethreecurrentTownemployeesworkingfortheFireDepartmentbeingtheCbief,TrainingOfficerandtheAdministrativeAssistant.TheDistrictshallenterintoIimploymentContractswiththethreeindividualsforaminimumofthirty-six(36)monthsbeginningJanuary1,2011.ThetermsandconditionsoftheEmploymentContractshallincludeasalaryequaltoorgreaterthantheemployee’sTownsalary,shallcontainsubstantiallythesamebenefitsaseachemployeereceivesfromtheTown,andtheemployeeshallbesubjecttoterminationanddisciplinepursuanttothesametermsandconditionsassetforthintheTown’sPersonnelPolicy.”Shouidtherebeatineaboutexhirationanddistrictboliesoncec/eve/abedsupersedetown‘conexbiration?Paragraph15shouldreadasfollows:“OnJanuary1,2t)l1,theDistrictshallassumeallresponsibility,includingfinancial,forthefireDepatirnent,maintenanceandreplacementofequipmentandapparatus,andallotherFireDepartmentobligationsandserviceobligationssetforthintheServicePlanoftheDistrict.TheonlyobligationoftheTownwithregardto2 provisionoffireserviceswithintheDistrictshallbethepaymentof7°ofsalestaxtotheDistrict.”Paragraph1$shouldbechangedtoreadasfollows:“TotheextentthisAgreementconstitutesamultiplefiscalyeardebtorfinancialobligationofeitherparty,itshallbesubjecttotheannualbudgetaryprocessandannualappropriationofeachindividualentity,andXrticleX,Section20oftheColoradoConstitution.NeitherpartyshallhaveanyobligationtocontinuethisAgreementinanyfiscalyearinwhichnosuchappropriationismade.”Thefollowingparagraphsshallbeadded:Indemnification.Totheextentpermittedbylaw,thepartiesherebycovenantandagreetoindemnify,defendandholdharmlessoneanotherfromandagainstanyandallliability,claims,losses,expenses,costs,charges,damages,judgments,obligations,expenses,attorneyfees,litigation,and/ordemandsofanykindwhatsoeverarisingfromorduetotheindemnifvngparty’snegligenceintheperformanceofitsdutiesunderthisAgreement.DefaultandRemedies.IntheeventofdefaultunderthisAgreementbyeitherparty,thenon-defaultingpartyshallgivethedefaultingpartyrwrittennoticeofsaiddefault.Thedefaultingpartyshallhavethirty(30)daystocuresuchdefault.Intheeventthedefaultingpartydoesnotcurethedefault,thenon-defaultingpartyshallheentitledtoallremediesavailableatlaworinequity,includingreasonableanattorney’sfeesandcostsincurredbythenon-defaultingpartyfromsaiddefault.Services.Thelownshallprovide,uponrequestfromtheDistrict,accounting,humanresource,andvehiclemaintenanceservicesfromtheapplicable1’ownDepartmentstotheDistrict.Thecostofsaidservicesshallbenegotiatedbetweentheparties.Pension.TheTownmaintainstheEstesParkVolunteerPensionFundforthepurposeofprovidingpensionbenefitspursuanttoSection31-30-1100etseq.C.R.S.-theVolunteerFirefighterPensionAct.OnorbeforeJanuary1,2011,theDistrictshallformanewVolunteerPensionFundfortheDistrictpursuanttotheapplicableportionsoftheVolunteerFirefighterPensionAct.OnJanuary1,2011,theTownshalltransferallfundsintheTownofEstesParkVolunteerFirefighterPensionFundtothenewVolunteerPensionFund.Priortothetransferofthefunds,theDistrict,theTownandtheNewVolunteerPensionFundshallenterintoaseparateagreementaddressingthefollowing:a.TheDistrictandtheFundshallagreetocontinuetopaythesamelevelofpensionbenefitstoallretired\TolunteersbeginningJanuary1,2011.3 b.TheDistrictandtheFundshallrecognizeallvestedyearsofserviceofallcurrentVolunteermembersoftheDepartmentandanyinactiveorretiredmemberswhohavenotyetreceivedapension.c.TheDistrictandtheFundshallagreetomaintainthecurrentpro-rataretirementpensionfortenyearsormoreofvestedservice.d.TheDistrictagreestoannuallycontributesufficientfundstotheNewVolunteerPensionFundtomaintainanaduaiiallysoundretirementpensionfundtomeettheDistrict’sandFund’sobligationspursuanttothisParagraph.e.TheDistrictandtheFundspecificallyunderstandandagreethattheTownmayhavefutureliabilitytoVolunteerFirefighterswhohavelefttheEstesParkVolunteerFireDepartmentbutreceiveapensionthroughanotherVolunteerPensionFundintheStateofColoradopursuanttoSection31-30-1123C.RS.TheDistrictandtheFundagreethatthefundstransferredtothenewVolunteerPensionFundincludesufficientfundstocoveralloftheTown’spotentialobligationstosaidVolunteerFirefighters.TheDistrictandtheFundshallassumeandpayallfutureobligationsoftheTownpursuanttothisSection.f.TheDistrictandtheFundagreetoprovideyearlyreportsandactuarialstudiestotheTownfortheTown’sreviewwithregardtotheDistrictandtheFundandtheirobligationspursuanttothetermsandconditionsofthisSection.3.TheServicePlan.TheServiceplandoesnotneedanychanges.4