 To Public Fire Service Under Consideration by Dick Kauffman September 02, 2002
The Pond Reef Volunteer Fire Department has been providing fire service to a majority of the residences and commercial facilities from Ward Cove to the end of the North Tongass Highway for decades. According to the agenda statement, if the Pond Reef Volunteer Fire Department ceases services, it is thought the residents in this area would likely desire some type of fire protection service. As part of an effort to plan for a transition from a private fire department to a public fire service, Borough staff have worked with Darrell Thomas to reach an agreement as to terms for a potential transfer of certain assets and liabilities of the Pond Reef Volunteer Fire Department to the Borough. Borough staff have identified those specific assets which would be necessary to provide adequate fire service to residents north of Ward Cove using a volunteer-fire service area similar to the arrangement used for the South Tongass Fire Service Area. Rather than acquiring new assets, the Borough would enter into a contingent purchase arrangement with the Pond Reef Volunteer Fire Department to acquire those assets which Pond Reef is currently using, and to pay an amount equal to the current debt on those assets. The agenda statement noted it is the staff's belief that acquisition of new equipment would be substantially more expensive. With the new service area, payment of this debt would be accomplished in one of two ways:
The agenda statement further noted that the most likely way would be a loan advance from the Land Trust Fund. Any service area bonds, if used instead of a loan from the Land Trust Fund, would require voter approval, both within the service area and areawide. Subsequent to approval of the agreement to acquire the assets contingent upon creation of the service area, the Borough would go through the process for creation of a service area and have a public vote on the issue at a future regular or special election. If creation of a service area is approved by the voters, the Borough would then exercise its rights under the agreement to acquire these assets. If the service area creation were rejected by the voters, the memorandum of agreement would have no effect. Borough staff is recommending that the Borough Assembly approve the memorandum of agreement in substantially the same form as presented to the Assembly contingent upon receipt of additional details on the leased property and completion of a satisfactory due diligence report on the equipment and authorize the Manager to execute the memorandum of agreement. Information provided on the agenda statement indicated that approval of the agreement in advance has the advantage of identifying with reasonable certainty, the cost of acquiring the capital assets necessary to provide fire service. Based upon a review by local fire personnel, it was stated to be likely that some of these assets are essential to an efficient operating volunteer fire department service in the North Tongass Area. Prior to executing the agreement, the Borough staff wants to confirm both the value of the used equipment and the need for these items with an outside consultant. Additionally, staff wants to verify the terms and amounts of any debt and detail on existing leases. A copy of the proposed Memorandum of Agreement, personal property list, inventory list, and outstanding contracts and purchase orders to be transferred list as of July 11, 2002 are available for review at the Borough Clerk's Office and the Ketchikan Public Library.
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