Monday, May 18, 2009

Fire Contract Review

It looks like a highlight of tomorrow night's City Commission meeting will be the possible revision of the Fire Protection and Emergency Services Fee Schedule between Southern Montana Electric G&T and the City of Great Falls Fire and Rescue.

Currently, SME is paying the City of Great Falls about $23,580/monthly. If approved, this revision will drop the fee to $3,000/monthly. (According to the revision, this amount would be retroactive to February).

At ECP's 2/02/09 meeting, "Director Gilbert inquired if the gas plant would change the terms of the fire contract with the City. Mr. Gregori responded that he would ask for some consideration since the level of construction changed. If the City responds negatively, SME will continue to pay the amount specified in the existing contract". [emphasis added].

Why has it taken Gregori 3 months to ask for a reduction in fees when he knew full well by the beginning of February he would be asking for it?

Assuming SME has paid the contract fee for May, the City has received from Feb-May $94,332 (23,583 x 4). Retroactive, the fee would be $12,000 (3,000 x 4). If the Commission approves the revision, the City will owe SME $82,332.

Given the Commission's history, this revision will pass.

The gift that keeps on giving.

3 comments:

Great Falls Guy said...

If SME wants a pass from the city on its Fire Protection Agreement then perhaps the city and ECP should ask for a pass on the Wholesale Power Agreement with SME.

That would be in anticipation of a negative report, to get out of the power business, from the as yet to be commissioned consultant whom will study all this mess shortly.

This proposal would accommodate all parties without resorting to costly court actions......

Anonymous said...

Why wait? Gotta make sure all the hands get a cut in the action.

City Taxpayer said...

Let's all ask for a waiver and 'a pass' on our water bills, since we assumed that taxes wouldn't be 'jacked up' because of misdirected resources?