HomeMy WebLinkAbout5.F.3. Set Fee for Fire Service Contracts with Townships
CITY OF SHAKO PEE Sf: 3,
Memorandum
TO: Mayor and Council CONSENT
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Fire Service Contract Hourly fee
DATE: December 12, 2006
Introduction
The hourly fee for service under the Fire Service contracts should be
increased.
Background
The City has fire service contracts with Jackson and Louisville
Townships. Part of the compensation to the city is an hourly service
fee for wages and fuel. The contracts provide that the city may adjust
that fee.
The hourly fee should be increased to reflect the current average
number of firefighters responding to calls and the overhead as a result
of the cost of services study. Increasing the fee was mentioned at the
meeting with the townships during the budget process.
The current fee is $250 per ,hour. With the current cost of fuel and
the number of firefighters (28) responding, the average cost is $322
plus overhead equals $370.
Alternatives
1. Status Quo
2. Increase fee to $370
3. Increase fee to some other amount
Reconunendation
Alternative number 2.
Action
Move to set the contracted hourly fire service fee at $370 effective
January 1, 2007.
Gregg Voxland :
Finance Director
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December 12, 2006
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Jackson Township Board
c/o Rose Menke
920 Rosewood Cir
Shakopee, MN 55379
.
Dear Town Board MeffiDers,
As discussed at the budget meeting in August, the hourly fee for
fire service needs to be adjusted. The average number of
firefighters responding to township calls has increased to 28.
The hourly pay rate is $10 so the labor cost is $280. The 2005
cost of fuel di vided by the number ,of calls is $42. Adding the
city overhead cost rate of 15% results in an hourly rate of $370.
The current rate charged is $250 which was set two years ago.
Council action to change the rate is set for the December 19th
council meeting. The change would go into effect on January 1st,
2007.
If you have questions, please call myself or Mark McNeill (952 -
233-9311) . ~
Sincerely,
Gregg Voxland
Finance Director
952-233-9326
~