Minutes of a Special Meeting of the Board of Directors of the Verde Valley Fire District Meeting Held June 12, 2018

Transcription

1 Special Meeting Page 1 of 5 Minutes of a Special Meeting of the Board of Directors of the Verde Valley Fire District Meeting Held June 12, 2018 A Special Meeting of the Verde Valley Fire District Board of Directors was held on June 12, 2018 at 3:00 p.m. at the Verde Valley Fire District Station #31, 2700 E. Godard Road, Cottonwood, Arizona. Board of Directors: Bob Eddingfield, Chairman Ken Bishop, Board Clerk Linda Quam Thomas Rhodes Jim Elmer Staff Present: Nazih Hazime, Fire Chief Joe Moore, Assistant Fire Chief Lisa Elliott, Administrative Manager Joel Rosenberg, Battalion Chief Dustin Chambliss, Captain Roland Wagenbach, Engineer Jacob Marx, Firefighter Others Present: Gary Svider, Robyn Cook and Terry Keller. CALL TO ORDER The meeting was called to order at 3:00 p.m. by Chairman Eddingfield. ROLL CALL All members were present. A quorum was present. PLEDGE OF ALLEGIANCE TO THE FLAG Those present stood and recited the pledge of allegiance to the American flag. CALL TO THE PUBLIC None. OLD BUSINESS TENTATIVE BUDGET Discussion and possible adoption of the FY Tentative Budget. Chief Hazime summarized three budget options provided by Staff. He stated that all three options include the following: Increased budget transfer to Capital by $25,000 per year beginning FY Reduction in carryover funds per year by $25,000 per year beginning FY Reduction in requested funds for ambulance purchases in FY and FY by $25,000 each. Chief Hazime explained that Option 1 also included paying cash for two new fire engines in FY

2 Special Meeting Page 2 of 5 Chief Hazime explained that Option 2 proposes financing two new fire engines over a seven-year period beginning FY and adding an estimated loan payment for a new fire station in FY This loan payment was calculated on a $3.5 million loan over 30 years at 4% interest. Chief Hazime explained that Option 3 proposes paying cash for one engine in FY and financing the second engine over 7 years beginning in FY This option also includes the estimated loan payment for a new fire station in FY This loan payment was calculated on a $3.5 million loan over 30 years at 4% interest. Board Member Quam stated that Option 1 is out and that Option 2 is better than Option 3. She added that she would also like the ambulance purchases to be financed. Chief Hazime noted the need for the purchase of an ambulance. Discussion followed regarding the proposed building maintenance costs for Station 31of $70,000 in FY It was noted that this amount includes replacing bay doors, building two offices, replacing window screens, replacing carpet in the training room with tile, coolers in the bays, etc. Board Member Quam expressed concern about the increase in building maintenance costs and the budget not being followed. She added that she also questions the idea of building offices because of the resulting reduction in meeting room space. Board Member Quam questioned the cost for radio infrastructure, as only $7,500 was budgeted for the current year and next year $92,400 is budgeted. Chief Hazime stated that the radio infrastructure amount is to replace portable radios. Chief Hazime noted that even though the Board approves a budget, the individual capital items still must go to the Board for approval of the final purchase. In addition, he indicated that year after year things change including repairs and replacement so the capital will adjust accordingly. Board Member Elmer stated that there is no change in the expenses in the budget options presented from the budget they saw at the last meeting. Administrative Manager Elliott stated there are no cuts, but different options are proposed. Board Member Elmer expressed concern about being hit all in one year with major expenses and it does not feel like there is a lot of effort being made to prioritize some of these expenditures. Board Member Quam stated that she went through every line item in the budget and in almost all cases what was requested by staff was approved by Chief Hazime. She stated that she feels the line items were not scrutinized enough. Chief Hazime stated that every line item is thoroughly reviewed by him, Administrative Manager Elliott, the Battalion Chiefs, and the Captains and that he has done his due diligence. He stated that staff has done a good job balancing the budget and the 5 Year Capital Projects Plan. He stated that years back the District started budgeting for trucks and now the District is at the point of purchasing them because of the need. He explained that the current fire engines are breaking down so the purchase of one of the engines has been moved-up in the Plan. He also indicated capital items change from year to year as the needs for facility updating, apparatus repairs and replacements, etc. are required. Board Clerk Bishop stated that two engines should not be purchased at the same time. Discussion followed regarding the engine purchasing options and timing. Board Member Quam stated that a loan could be paid off sooner if funds are available.

3 Special Meeting Page 3 of 5 Board Member Rhodes stated that he does not understand how the District has gotten to the point where two engines are needed to be purchased in one year. Assistant Chief Moore explained that the engines were projected to be purchased 2 years apart. He stated that due to the recession, the District did not spend funds to purchase the first engine when it was planned to do so. He stated that American LaFrance went out of business two years after the District purchased the American LaFrance engine. He explained that now this engine is having mechanical problems and the parts cannot be purchased for repairs. Parts have to be custom fabricated which is expensive and takes the engine out-of-service for significant periods of time. Assistant Chief Moore stated that this combination, the recession and American LaFrance going out of business, is why two engines are needed at the same time. Board Member Elmer asked for information on capital expenses for the next couple of years. Assistant Chief Moore noted that, if necessary, the plans for the construction of the Clarkdale fire station can be shelved, there is a stopping point. Board Member Elmer expressed concern about the overall appearance of the capital reserve funds dwindling away. He stated that he feels citizens were misled during the consolidation that construction on the Clarkdale fire station would start it in couple of years and this may not be the case. He noted that at the last meeting he stated that he never would have voted for the consolidation if he had known this. Chief Hazime stated that the District never committed to when the building of the Clarkdale fire station would take place; however, the Board understood the need for the station. He stated that the public was never misled by being told that the construction was going to happen at a certain date. Board Member Rhodes stated that he does not ever recall seeing that 5 Year Capital Projects Plan showed the funds going down to zero after five years. Administrative Manager Elliott stated that the District is required by statute to show the funds all being allocated. She added every 5 year capital projects plan in the past has shown the same thing. Board Member Rhodes reiterated that he does not recall that. Administrative Manager Elliott stated that she will provide copies to the Board. Board Member Quam expressed concern about total expenses in the budget going up. Administrative Manager Elliott explained that fluctuations in Capital Projects funds (transfers in and out of the General Fund from Capital Projects) affect the bottom line and the Capital Projects expenses are offset by Capital Projects funds transferred in. She noted that the Division Expenses (operating expenses) have much less fluctuation. Chief Hazime noted that while a large amount of money is proposed to be spent from Capital Projects, the purchases will put the District in a good position regarding equipment for a while. Discussion followed regarding grant funding. Administrative Manager Elliott explained that grant funds are not spent unless they are received. She explained that the budgeted grant income and expenses have to cover the funds that the District may receive that have already been applied for and grants that the District may have the opportunity to apply for and receive during the fiscal year. She added that grant expenses are like the capital expenses, they are offset. Board Member Elmer expressed concern about spending a lot of capital projects funds all at one time and it taking a lot of years to get caught back up. He stated that he would like to know more about financing the Clarkdale fire station construction, what the down payment would be and the remaining

4 Special Meeting Page 4 of 5 amount to be financed, the entire 3.5 million dollars for construction would not be financed. It was noted that Staff met with the architect recently and discussed ways to scale down the project, i.e. remove the community meeting room. The 3.5 million dollar figure is the estimated cost for the full project, before any reductions are made. Board Member Quam stated that the budget is increasing and the Clarkdale fire station construction was not originally in the 5 Year Capital Projects Plan. She stated that purchases need to be financed. Chairman Eddingfield stated that the 1.2 million dollars in the budget to buy two fire engines will not happen unless the District has the money at the time to do it. He added that the District can go to bid for two, but it does not have to accept bids for two. Administrative Manager Elliott stated that even if the cash purchase is approved in the budget, the Board can decide to finance the purchase instead. Assistant Chief Moore stated that the purchase of the engines probably will not even occur in the FY budget because it takes a year to build an engine. Chairman Eddingfield stated that if the Board does adopt one of the budget options, the Board could change the budget in the middle of the year. Board Member Rhodes stated that he feels the problem is what has already been done and a long term plan is needed for how the District is going to remain healthy. Board Clerk Bishop made a motion to adopt the Tentative Budget Option 1. Chairman Eddingfield seconded. The motion failed with Board Clerk Bishop and Chairman Eddingfield voting for and Board Members Rhodes, Quam and Elmer voting against. Board Member Rhodes made a motion to adopt the Tentative Budget Option 2. He explained that this option alludes to building the Clarkdale fire station and gives the District the ability to lease both fire engines if that is what the Board wishes to do. Board Clerk Bishop seconded the motion. Board Member Elmer stated that he would like to see the loan amount for the Clarkdale Fire Station changed or left off of the 5 Year Capital Projects Plan so there is no misconception that the District is approving a 3.5 million dollar loan. Discussion followed regarding changing the first payment shown on a loan for a new Clarkdale fire station in the 5 Year Capital Projects Plan as occurring in FY Administrative Manager Elliott clarified that the two changes discussed regarding the Plan will not change the actual tentative budget worksheet. Board Member Rhodes made a motion to amend the main motion on the floor by adding that the loan amount for the Clarkale fire station shown on the 5 Year Capital Projects Plan be changed so it does not reflect the entire projected cost of the building and that the first loan payments be shown to start in FY Board Clerk Bishop seconded the motion. The motion passed unanimously. The main motion, as amended, was then considered: To adopt the Tentative Budget, Option 2, with the loan amount for the Clarkdale fire station shown on the 5 Year Capital Projects Plan be changed so it does not reflect the entire projected cost of the building and that the first loan payments be shown to start in FY The motion passed unanimously. NEW BUSINESS

5 Special Meeting Page 5 of 5 ELECTION SERVICES AGREEMENT Discussion and possible adoption of Resolution approving an Intergovernmental Agreement For Election Services with Yavapai County. Chief Hazime stated that this is a revised agreement with Yavapai County that they requested. Board Clerk Bishop made a motion to approve Resolution # approving an Intergovernmental Agreement For Election Services with Yavapai County. Board Member Rhodes seconded. The motion passed unanimously. BOARD MEETING Discussion and possible decision to hold a special meeting (worksession, strategic planning session or retreat) including possible date, time and topics. Board Member Rhodes asked about the retreat being open to the public. Chief Hazime stated that Open Meeting Law must be followed and if the Board wanted to hold an Executive Session, the Arizona Revised Statutes authorizing Executive Sessions would have to be adhered to. Board Member Rhodes stated that he sees a need for an Executive Session. Chairman Eddingfield stated that he feels there needs to be transparency. Board Member Quam agreed that a meeting needs to be held. Board Member Elmer asked about the reason for a meeting as the budget has been adopted. Chairman Eddingfield stated that the discussion at the meeting would lay the groundwork for the next budget. Board Member Rhodes stated that he feels the District has been flying by the seat of its pants for the last one or two years and he wants to have a conversation about it. Board Member Elmer stated that at the last meeting he said he would not have approved the consolidation had he known then what he knows now. He added that he feels that there was a reasonable expectation to build a station. Board Member Quam stated that she has not been comfortable with budget for last couple of years and that she finds it frustrating to review several drafts. Board Clerk Bishop stated that he would like to start looking at the next budget. Board Member Rhodes stated that his concern is not specific to the budget; it is the direction of the District s future and how to get back to being a flush district. The consensus of the Board was to table setting the date for a special meeting to discuss the above to the July Regular Board Meeting. The Board did decide to hold a Special Meeting on July 5, 2018 at 3:00 p.m. for consideration of adopting the final FY Budget. ADJOURNMENT. With no further business before the Board, the meeting adjourned at 4:10pm Submitted By: Approved: Joyce Driscoll, Administrative Assistant Bob Eddingfield, Chairman Attest: Ken Bishop, Board Clerk