2011.01.27 Work Session (WMFRD)TO: Mayor and City Council
FROM: Anne Norris, City Manager AA—
SUBJECT: Proposed Changes to West Metro Joint Powers Agreement
Last year, the West Metro Fire District Board created a subcommittee of two
boardmembers and two members, one from each city council, to look at possible
revisions to the District's joint powers agreement. The subcommittee included Crystal
Mayor ReNae Bowman, Councilmember Joe Selton, New Hope Mayor Kathi Hemken
and Councilmember Dan Stauner. Board President Brian Hubbard and District Chief
Scott Crandall were also involved in the discussions and both city councils and
managers were asked to offer input on the joint powers agreement.
The subcommittee presented its report at the January 19 West Metro Board meeting.
At that meeting, the Board referred the proposed changes to both city councils and city
attorneys for review.
Attached are the subcommittee's report and the proposed changes to the joint powers
agreement.
Attach:
MINIMUM]
•
Joint powers agreements provide a mechanism whereby municipalities can create an entity and
delegate certain functions and powers to that entity. Inherent in the creation of a joint powers entity is a
certain tension between the control retained by the contracting cities and the autonomy of the joint powers
entity. That is especially true when the entity is one, such as the West Metro Fire District (the "District"),
that performs a core public safety function and has a major impact on the budget of the member cities.
That tension has become apparent in the District in recent years during budget discussions. The Joint
Powers Review Committee was formed with the task of reviewing the WMFD Joint Powers Agreement
(JPA) to determine if there may be changes to the JPA that could alleviate some of those tensions and
improve the functioning of the District. The Committee submits this report to the Board of Directors of
the District and recommends that the proposed revisions to the JPA be submitted to the member cities for
their approval.
The committee began its review process by meeting several times to discuss issues that the
members felt had arisen that might be addressed by revisions in the JPA. Based upon the discussion in
those meetings the committee prepared a draft of a revised JPA and circulated it to the interested parties
for comment. After comments were received the committee met again to consider the comments and
make any changes to the draft revision that the committee felt was necessary.
M. ISSUES
During the committee's discussions three major areas of concern were identified that the
committee felt should be addressed by revisions to the JPA. Those areas are:
The budget process, and in particular a mechanism to resolve a disagreement
between the cities during the budget process.
2. Communication between the District and the member cities.
3. The duties and responsibilities of directors appointed by the member cities and
the accountability of directors to their appointing city.
IV. THE PROPOSED REVISIONS TO THE JPA
The committee recommends that Articles IV, VII and VIII be revised and a new Article X be
added to the JPA.
A. ARTICLE IV.
The committee proposes to add three new sections to this article. The proposed Section 3 states
that a director must diligently perform the duties of the office and provides a mechanism whereby a
director who fails to attend meetings of the board can be replaced. It is important that each city be fully
represented on the board. A director who is unable or unwilling to attend meetings impairs a city's
representation and the committee believes it is necessary to provide a mechanism to address that situation
should it arise.
Proposed Section 4 spells out the directors' duty to communicate with their council on matters
that are material to the operations of the District. The committee believes this is an important function of
a director and it was best to state that in the JPA. Because of the impact that the District has on the
budget of each city, the committee felt it was appropriate to provide some guidance in this section as to
the financial matters that would be considered material to the District's operations.
Proposed Section 5 provides each city with a right to remove a director that a city does not feel is
fully or adequately performing the duties of a director. The purpose of this proposed section is to enhance
director accountability. The section provides that a director may be removed without cause in order to
avoid a dispute over what constitutes cause and whether or not such cause exists. The possibility exists
that a director could be removed for political reasons, but that possibility already exists when a council
member serves on the board and loses an election. All of city government, including the District must be
responsive to the will of the people as expressed in election results. The committee felt that the improved
accountability was worth the risk of a city's representation on the board being impacted by political
considerations.
B. ARTICLE VII.
The committee proposes that Section 5 be revised. The revision would delete the dispute
resolution language which the committee proposes to address in a new article. The revision would add
language requiring the board to adopt a bylaw providing for a plan for communicating with the councils.
This revision is intended to address the concern that has been repeatedly expressed in the joint meetings
of the city councils about the lack of communication between the District and the cities.
Proposed Section 6 requires the board to annually evaluate the performance of the District. The
results of that performance evaluation are to be reported to each council by the board president and the
chief. The committee believes this is a step in improving communication that is of sufficient importance
that it should be spelled out in the JPA.
Proposed Section 7 provides a mechanism whereby either city can inquire about any matter that is
of concern to the city. This proposed section is intended to address the concern that was often stated in
the joint council meetings that questions directed to the District were not being fully answered. The query
process established by this section requires each city to be informed of any query by the other city. The
committee believes this will make each city aware of issues that are of concern to the other city and
facilitate communication and cooperation between the cities and the District.
Proposed Section 8 was suggested by Director Hubbard and formalizes the requirement that the
board review the chief's performance. This is already part of the board's duties.
C. ARTICLE VIII.
The current version of this article has been a source of conflict during recent years because the
article as it exists gives each city a veto over the budget of the District without providing a mechanism to
resolve a disagreement between the cities. In order to address this problem the committee recommends
that current sections 2, 3 and 4 be extensively revised.
The committee proposes a revision of Section 2 that eliminates what is conceptually redundant
language in the current subparts a. and b. The revision clarifies that the budget must be adopted by the
annual meeting. Article V, Section 3 requires the annual meeting be held in June, so the board would be
required to adopt a budget before the end of June. The committee also recommends that old section 3 be
combined with section 2 to provide a more coherent budget section.
The committee proposes to revise Section 4 which becomes a new Section 3. The revisions to the
section are intended to more clearly spell out the timeline for a final budget to be adopted. The revisions
also provide a mechanism to resolve disagreements about the budget between the cities. Disagreements
about the budget in recent years have necessitated the holding of joint council meetings and have delayed
the final adoption of a budget for the District until late in the year. The mechanism provided by the
proposed revision should eliminate the need for joint council meetings and ensure a timely adoption of a
final budget for the District. If the cities accept the budget adopted by the board then it is not necessary to
resolve a disagreement. But if a disagreement arises, then the committee believes that the proposed
conference committee provides a means for a speedy and fair resolution of that disagreement.
D. NEW ARTICLE X.
The current JPA requires the board to adopt a bylaw providing for dispute resolution. Since
disputes concerning the budget were being addressed in the revisions to the JPA, the committee felt it was
appropriate to put the general dispute resolution mechanism in the JPA rather than the bylaws.
V. THE COMMENTS RECEIVED.
The committee received comments from Crystal, Chief Crandall, and Director Hubbard.
Chief Crandall suggested that Article IV, Section 1 be revised to provide that the city managers
would be ex -officio non-voting members of the board. The committee does not believe this change is
necessary at this time.
Both Chief Crandall and Director Hubbard suggested that Article IV be revised to require that at
least one of the directors from each city be a citizen who is not a member of the council. Although the
committee recognizes the importance of encouraging citizen participation in city government, the
committee did not adopt this suggestion for two reasons. First, both cities have experienced situations
where no citizens have applied for appointment to commissions. The committee felt that it was necessary
to allow the councils the flexibility to fill a vacancy with a council member when no citizen applied for
the position. Secondly, as noted earlier, the District performs a core governmental firnction and its budget
is a major part of each city's budget. Because council members will be better informed about the entire
city budget and presumably can better understand the impact that the District's budget will have on their
city budget, the committee believes that it is best to leave to each city the decision as to whether or not the
directors appointed by that city should be council members.
Director Hubbard felt the proposed Article IV, Section 4 should read:
Directors are responsible for informing their respective appointing Councils of all matters
requested by the Council or which the Director reasonably believes are material to the
operations of the District.
The committee believes that an important part of the job of directors is communication with their
councils. The committee felt it was appropriate to spell this out in the JPA and to place at least some of
the burden of coming forward with information on the directors.
Chief Crandall commented that allowing the removal of a director without cause would leave the
position open to a popularity contest. As discussed above the committee felt this was worth the risk to
improve accountability.
Director Hubbard suggested that a provision providing for the creation of an executive committee
be added to the JPA. The committee believes this is more appropriately addressed in the bylaws.
Director Hubbard suggested that the annual meeting be changed to January because that is when
board officers are elected. This would trigger some revisions to the budget process language which is
now tied to an annual meeting in June. The committee felt it was best to leave the annual meeting in
June.
Chief Crandall inquired as to whether the query process contained in Article VII, Section 7 was
meant to eliminate the ability of individual council members to ask at will questions. The committee does
not presume to tell individual council members what their rights of inquiry about any matter impacting
their city may be. However, it is the committee's hope that the formal query process will be used for all
but the most minor inquiries. The committee believes that the use of the query process will insure that all
council members in both cities, as well as the board members, are fully aware of issues of concern to any
individual council member.
Crystal expressed concern about the timing of the budget adoption and wanted the deadline for
the council response to be 45 days after the adoption of the budget. The committee did not accept this
suggestion. The proposed revision sets the deadline for a council response at July 31St. A 45 day timeline
could result in the deadline being pushed into August if the board does not adopt a budget until late June.
Chief Crandall commented that the term "immediately" used to define when the adopted budget
was transmitted to the cities was too subjective. The committee does not agree. The committee believes
that "immediately" means just that, i.e. no later than the first business day following the adoption of the
budget by the board.
Both Chief Crandall and Director Hubbard expressed concern that the conference committee
process did not include participation by the board and the chief. Both were concerned that the process
would reduce the District's ability to control its own budget. Under the current joint powers agreement
both cities have an absolute veto over the budget with no mechanism to address what happens when one
of the cities exercises that veto power. The conference committee process only operates when the cities
are not in agreement about the budget. There is nothing in the language of the provision for a conference
committee that either requires the conference committee to take input from the chief or prohibits it from
doing so. This committee feels that it is appropriate to leave it to the discretion of the conference
committee members to determine what if any information they need to resolve the budgetary
disagreement.
Both Chief Crandall and Crystal suggested that the formula for determining each city's share of
the budget should be revised. The committee does not believe it is appropriate to do so at this time.
Chief Crandall suggested that Article XI Section 3 be revised to require the board to update the
district compensation plan every four years. The committee believes this is best left to the discretion of
the board rather than mandated in the JPA.
Chief Crandall commented that Article X Sec. 1 should provide that dispute resolution should be
the first order of new business rather than the first order of business to be consistent with the current
agenda practice. The committee believes the proposed language is more appropriate. The current bylaw
concerning dispute resolution says that any dispute is the first order of business at a board meeting.
Furthermore, given the importance of the resolution of a dispute between the member cities, the
committee believes it is appropriate for the board to take up the matter outside of the regular order of
business.
Chief Crandall suggested that the revised JPA should be signed by the president of the board as
well as by the two city managers. The committee does not believe this is appropriate. The JPA is a
contract between the cities whereby the District is created and exists. The District is not a party to that
contract, but a creature of it.
Cil'-1[K�7►C� /11I:1,(�1►1
During the years the District has been in existence events have shown that there is a need to
revise the JPA to improve the workings of the District and its relationship to the member cities. The
committee recognizes that it is impossible to create a document that can anticipate and address every
possible situation that could arise in the future. The committee believes that the revisions it is proposing
will improve the operation and the long term viability of the District. Accordingly, the committee
recommends that the board forward the proposed revisions to the cities for their consideration.
1XI1401113 U101
West MetroGrysta Ney H"e Jeint Fire -Rescue District
The parties to this agreement are the City of Crystal and the City of New Hope,
governmental units in Hennepin County, Minnesota. This agreement is made and entered into
pursuant to Minnesota Statutes, section 471.59 and Laws of Minnesota 1995, chapter 262,
Article 11 (collectively, the Act).
ARTICLE I
Background: General Purpose
Section 1. The city councils of the cities of Crystal and New Hope have investigated the
facts and have determined that it is in the best interests of the health, safety and welfare of those
cities to create and organize a joint fire department to provide effective and economical fire
suppression services.
Sec. 2. Article 11 of the Act authorizes the establishment of a "joint powers fire
department" and provides for the consolidation of the fire relief associations related to the
respective fire departments in the two cities.
Sec. 3. The general purpose of this agreement is to create a joint powers fire department
that serves the two cities.
ARTICLE II
Definitions
Section 1. For purposes of this agreement, the terms defined in this article have the
meanings given there.
Sec. 2. "Agreement" means this agreement.
Sec. 3. "Board" means the board of directors created by Article IV.
Sec. 4. "Director" means a director appointed under Article IV of this agreement.
Sec. 5. "City Council" means the city council of either the City of Crystal or the City of
New Hope, or both cities, as the context requires.
Sec. 6. "Joint fire district" or "district" means the joint fire departmental organization
created by this agreement.
district.
Sec. 7. "Fire District Chief' or "Chief' means the chief executive officer of the joint fire
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ARTICLE III
District Created
The Crystal New Hope joint fire district is created by this agreement. The district shall
be known as West Metro Fire -Rescue District. The district will provide services including, but
not limited to, fire suppression, emergency medical support, specialized rescue and extrication
services, fire prevention, public fire safety education, emergency hazardous materials release
response, and fire cause and origin determination. The cities of Crystal and New Hope agree to
be bound by the terms of this agreement. The cities are members of the district.
ARTICLE IV
Board of Directors
Section 1. The governing body of the district is its board of directors. The board consists
of seven members selected as follows:
a. two members representing the City of Crystal appointed by Council
resolution. At least one of the two members shall be a current member of the city
council of the City of Crystal;
b. two members representing the City of New Hope appointed by council
resolution. At least one of the two members shall be a current member of the city council
of the City of New Hope;
C. the city manager of Crystal;
d. the city manager of New Hope;
e. one member, not an employee of the district or of the police department of
either City, appointed by joint resolution of the city councils of the City of New Hope
and the City of Crystal. This member need not be a resident of New Hope or Crystal.
Members may not be an employee of the district or of the police department of either
city.
A director has one vote.
Sec. 2. The term of a director is two years commencing on January 1. Directors serve
until their respective successors are appointed and qualify. A vacancy in the office of director is
filled in the same manner that an appointment of a director initially is made. If a council
member or city manager director ceases to hold that position, the office of director held by that
council member or city manager is vacant. 'sheet^ -s intea solely by the -vote of one
eauneil may be i:emeved with Ar lyijflfflaut. eause by the vote of tk-ee fifths of the eouneil
W
Sec. 3. Directors shall diligently perform the duties of a director. If a A director who
fails to attend three consecutive meetings of the board without reasonable cause, the council
gppointing such director may declare the office of director vacant and fill the office by
Npointment in accordance with the terms of this Agreement, shal-lbe deemed t 4hwe
The council appointing a director shall have the sole right to determine if a director's absence
from a meeting is with or without reasonable cause.
Sec. 4. Directors are responsible for informing their respective appointing councils of all
matters which the director reasonably believes are material to the operations of the District,
including any expenditures by the District in that exceed amounts authorized by an adopted
budget by more than one percent of the amount authorized by the budget.
Sec. 5.. Directors appointed solely by the vote of one city council may be removed with
or without cause by the vote of three-fifths of the council appointing the director.
ARTICLE V
MeetinLys
Sec. 1. The board must provide in its bylaws for a schedule of regular meetings. A
regular meeting must be held at least once each calendar quarter. A quorum consists of four
members of the Board of Directors and must include either a city council member or city
manager member from each city. A smaller number of members from the Board may adjourn
from time to time.
Sec. 2. A special meeting of the board may be called by the president and must be called
by the president upon written request of the number of directors specified in the bylaws. Notice
of a special meeting must be given in accordance with the bylaws and with law. The resolution
appointing directors must specify a mailing address for directors for purposes of giving notice.
Business at a special meeting is limited to matters contained in the notice of that special meeting.
Sec. 3. The annual meeting of the board must be held in the month of June.
Sec. 4. Meetings of the board are governed by the Minnesota Open Meeting Law,
Minnesota Statutes, section 471.705.
ARTICLE VI
Officers: Committees
Section 1. The officers of the board are a president, a vice president and a
secretary -treasurer elected by the directors at the annual meeting for a term of one year. The
board may designate a director to act as an officer in the absence of that officer.
Sec. 2. The president presides at meetings of the board. The vice president perforins
the duties of the president in the absence of the president.
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Sec. 3. The president, the secretary -treasurer or any two such officers must sign
vouchers or orders disbursing funds of the agency. The district must provide in its bylaws for
additional procedures for the disbursement of funds. Disbursements must be made in the
manner prescribed by law for statutory cities.
Sec. 4. The board may in its by-laws provide for and define the duties of such other
officers as it deems necessary from time to time.
Sec. 5. The board may in its by-laws provide for such committees as it determines
necessary from time to time. A by-law providing for an executive committee and defining the
powers and duties of an executive committee may be adopted by a majority vote of all members
of the board.
Sec. 6. Contracts, bonds and other legal instruments of the district must be executed and
delivered on behalf of the district by the president and the Chief.
ARTICLE VII
Powers and Duties of the Board of Directors
Section 1. The board may take such actions as it deems necessary and desirable to
accomplish the general purpose of this agreement.
Sec. 2. The board may
a. enter into contracts with public or private agencies or persons to carry out
its powers and duties;
b. provide for the prosecution, defense or other participation in proceedings
at law or in equity in which it may have an interest;
C. employ such persons as it deems necessary on a part -tune, full -tune or
consultant basis;
d. purchase, hold or dispose of personal property;
e. contract for space, commodities or personal services with either city;
f. accept gifts on behalf of the district, apply for and use grants or loans of
money or other property from the state, the United States of America and from other
governmental units and enter into agreements in connection therewith and hold, use and
dispose of such money or property in accordance with the terms of the gift, grant, loan or
agreement relating thereto; and
g. apply for and pay premitium on policies of insurance and surety bonds for
personnel in such amounts as it deems necessary, provided that the board must provide
that the commission or each of its members has public liability insurance coverage in the
maximum liability amounts specified in Minnesota Statutes, section 466.04.
Sec. 3. The board must, from time to time, but not less than once each calendar quarter,
submit a written report to each city council summarizing in the detail necessary to adequately
inform each city council of the district's activities and financial status.
Sec. 4. Each city agrees, subject to legislative discretion, to adopt the then current
Minnesota Fire Code within six months of that code being adopted by the state of Minnesota.
Each city agrees to adopt optional appendix chapter 1306 of the Minnesota Building Code for
"Special Fire Protection Systems" within one year after the effective date of this agreement.
Sec. 5. The board in its bylaws shall adopt a plan of comrmuzication whereby the board
shall keep the councils of the member cities informed of all matters the board reasonably
believes are material to the operation of the District.must adopt pr -o .e,a,, es for the ,-eselt+ie o
disputes bt–rn—AA� eities about the inlei:pretatien or- vielation of the tefms of this agreement.
These pr-oeed must provide f ,. n p.,, -i -u ity for- t! �?oafd to re selve the sp'ute, and for -
1 submission
Sec. 6. At least once each year the board shall evaluate the performance of the District.
After the evaluation is completed the president of the board and the chief of the District shall
attend a meeting of the council of each member city and report to the council the results of the
evaluation and on the state of the District.
Sec. 7 A member city may query the board about any matter or fact concerning the
district or its operations. A query shall be submitted to the board by a resolution of the council
of the querying city. The query shall state the information sought or the question to be
answered. A copy of the query shall be delivered to the other member city.
The board shall take up a query as a matter of new business at the meeting of the board
inuuediately following the receipt of the query. The board shall provide an answer to the query
to all member cities. If the board believes more time is necessary o properly respond to the
query, the board shall advise the cities of the reasons more time is needed and the date the
response will be delivered.
Sec. 8. The board shall annually conduct a formal performance review of the Fire Chief.
The review will be approved by the board and will be a permanent part of the Chiefs personal
file.
ARTICLE VIII
Financial Matters
Section 1. The fiscal year of the district is the calendar year.
Sec. 2. No later than its annual meetingtlie awe district must annually, pi:er to july
adopt a proposed budget for the ensuing fiscal year. and submit it to eaeh „i+„ ,,,,,,nein
pfi0,. tO T„15 1 G
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-Se e 3: The proposed budget must be adopted by a two-thirds vote of all members of the
Board of Directors. Expenditures of the district may be made only pursuant to the budget as
finally adopted pursuant to section 34.
Sec. 34. a. -After adoption of the proposed budget, the board shall immediately t
forward copies of the budget to each member city.
b. Each council shall promptly review the budget. No later than July 31, each
council shall notify the board and the other council of the its acceptance of the budget or its
EitheF eity eouneil may retum the proposed budget to the board with the eit�, eouneil's
recommendations for changes to the budget. , but a final budget for the diJtFiet-Must Must be
by the beal-&-n-ot. Later than September 3 0 and by eaeh eity eotmeil no later- than Oeteber 3 1.
c. If each council accepts the budgetL adopted by the board that budget shall be
deemed to be the final budget adopted for the comingfiscal iscalyear.
d. If either council submits recommendations for changes to the budget, the
other council shall notify the board and the submitting council of its acceptance or rejection of
the changes no later than August 31. If the councils agree •ee upon the recommended changes, then
the budget adopted by the board shall be deemed amended by the recommended changes and the
budget as changed shall be the final budget adopted for the comingfiyear.
e. If the councils do not agree on the budget as adopted by the board and aiw
changes recommended by either council than there shall be a conference committee consisting of
the city manager of each city, the council member from each city who is also a board member
and one council member from each city who is not a board member.
The conference committee shall meet promptly to resolve all disagreements concerning the
budget. The committee shall resolve all disagreements between the cities concerning the budget
by a vote of the majority of the committee. The committee shall complete the resolution of any
disagreements concerning the budget no later than September 30. The budget as recommended
by the committee shall than be submitted to the board and each city council and shall be deemed
to be the final bullet adopted for the coming fiscal year. If a majority of the committee cannot
agree on the budget, the budget shall be submitted to binding arbitration in as provided in Article
X, Section 2.
f. Upon adoption of the final budget by eaeh eity ,,,,, nei , each member city is
obligated to the district for the budgeted revenues and cost sharing charges fixed by the board for
the ensuing fiscal year in accordance with this article.
Sec. 4-5. Each city's respective shared cost of the annual budget is determined by
application of the following formula:
A+p+v / A+P+V x 100 = % of total budget due from specific municipality where
CRYSTAL NEW HOPE DISTRICT
a = municipality's avg. calls over 5 years 745 652
p = municipality's population 24,000 23,000
v = municipality's mkt. value in millions 752 777
A = district average calls over 5 years 1,397
P = district population 47,000
PERCENT 0.5107 0.4893
For purposes of the formula:
a/A = 5 year average of calls to be computed as of each December 31
p/P = Population is the population figure found on the last federal decennial census.
vN = Market value determined by figures last equalized and determined by state department of
revenue.
The percentage allocation shown above applies to a budget adopted in the year 1997.
ARTICLE IX
Personnel and Administration
Section 1. The chief is responsible to the board for the efficient and economical
operation of the district, the hiring, termination, supervision, discipline and the supervision and
direction of its personnel, the establishment of rules of conduct for those personnel, and carrying
out the policies and procedures adopted by the board. The chief is appointed by the board and
serves at the pleasure of the board. The chief is a frill time employee of the district ageney and
may enter into an employment contract with the board.
Sec. 2. Paid on-call employees of the district are members of the Consolidated Fire Relief
Association. Other employees are members of the appropriate public employees retirement
fund, if eligible.
Sec. 3. The compensation of the employees of the district is set by the board.
The board must have an adopted compensation plan.
ARTICLE X
Dispute Resolution
Sec 1 In the event either city believes that there has been an incorrect interpretation by
the District of a tern or condition of this Agreement the other city has failed to perform an
obligation under tlus Agreement or there has otherwise been a violation of this Agreement then
the city council of such city shall adopt a resolution statin the he specific facts that the city
believes give rise to the dispute The resolution shall be immediately transmitted to the
President of the board upon its adoption by the city council. The board shall est consider the
resolution as the first order of business at its next regularly scheduled meeting and must submit
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its resolution of the dispute within sixty (60) dUs thereafter by written communication to both
cities. The objecting city may accept the determination of the board, reject the determination of
the board, -or withdraw the dispute.
Sec. 2. In the event the determination by the board is rejected the disputing city, the
dispute shall be submitted to binding arbitration. The board shall select three arbitrators whose
names shall be submitted to the cities. Each city shall strike one name from the list. The
remaining_ person named shall be the arbitrator who shall hear the dispute. Each city and the
board shall appoint a representative to appear at the arbitration and present their respective
positions to the arbitrator. The decision of the arbitrator shall be final. Each city shall pay
one-half of the fees of the arbitrator and each city shall bear its own costs for the arbitration.
ARTICLE XI
Dissolution: Amendment
Section 1. The district may be dissolved at any time by unanimous vote of the board or
by identical resolutions of dissolution adopted by the city councils. The district must be
dissolved upon written notice given by one city to the board and the other city prior to December
1 of any year stating an intent to withdraw as of December 31 of the calendar year following the
notice. In the event of dissolution, the board will continue to function for the purposes of
winding up district affairs.
Sec. 2. Upon dissolution, the board must take the steps necessary to effect dissolution as
promptly as circumstances permit, subject to the provisions of this agreement and the Act.
Sec. 3. Upon dissolution and following the final payment of the district's outstanding
obligations, the remaining assets of the district are to be distributed to the members in direct
proportion to their respective cumulative contribution to the assets of the district. An asset
transferred to the district under Article VIII must be returned to the city contributing that asset.
New or replacement assets must be distributed to each city, based on fair market value appraisal,
in shares determined by using the funding formula set out in Article VIII, section 5. If the
outstanding obligations of the district exceed its assets, less the return of contributions required
by this section, the payment of such excess obligation must be made in equal shares by the
members.
Sec. 4. This agreement may be amended by identical resolutions adopted by the city
council of Crystal and the city council of New Hope and filed together with the amendment with
the chief.
ARTICLE XII
Effective Date
Section 1. This amended and restated agreement is effective on the date following the
day on which executed copies of this agreement, accompanied by a resolution of the city council
of each member city, are filed with the city clerk- of the City of Crystal and City of New Hope.
IN WITNESS WHEREOF, the undersigned governmental units have caused this
agreement to be executed by their duly authorized officers and delivered on its behalf as of this
day of , 20110-3.
Recorded and filed this day
Of , 201103.
Clerk, City of Crystal, Miniesota
CITY OF CRYSTAL
By
Its Mayor
By
Its City Manager
CITY OF NEW HOPE
By
Its Mayor
By
Its City Manager
Recorded and filed this day
of , 201103.
Clerk, City of New Hope, Minnesota