In the event that the Town of Nasewaupee separates from the South Gate Fire Department (SDFD), the financial impact of this separation would need to be resolved with the three other municipalities that make up the department: the Village of Forestville and the towns of Forestville and clay banks.
The operating agreement between the four municipalities stipulates that if Nasewaupee left the department, the city would have the first option to purchase the amenities located in the city “at fair market value”.
Nasewaupee would be required to pay the remaining municipalities “an amount equal to the percentage of the fair market value of the property then contributed by the remaining municipalities.”
Forestville Village President Terry McNulty told village council on Monday that the department’s fire council, made up of two representatives from each municipality, met this month and argued over the meaning of that language, referring the matter to counsel for the fire board.
The fair market value of Nasewaupee station amenities, which the city has contracted to McMahon of Neenah for appraisal, could also be challenged by municipalities in the department.
McMahon’s report stated that “there is no price guide to use as a benchmark due to the circumstances that the fire apparatus industry is a very small segment of the heavy truck market. Defining the value of a truck is not an exact science, and [it] It is important to note that many purchases of fire apparatus and equipment are custom and “one-off” purchases.
Based on Nasewaupee paying 70% of the SDFD budget and McMahon’s valuation estimate, Nasewaupee Town President Steve Sullivan previously said the town should pay between $120,000 and $150,000. dollars if she left the SDFD.
A resolution authorizing Nasewaupee’s withdrawal from the SDFD’s operating agreement was on the agenda for city council on Thursday evening, following this week’s edition of the Pulse Peninsula went to press.