Sedona AZ (October 1, 2013) – The following Sedona Fire District Governing Board Draft Minutes are as received from the SFD and published without comment or edits:

9-25-13 DRAFT MINUTES

Page 1

~DRAFT~

Sedona Fire District Sedona Fire District Sedona Fire District Sedona Fire District

2860 Southwest Drive, Sedona, Arizona 86336

Telephone (928) 282-6800 FAX (928) 282-6857

REGULAR BOARD MEETING

Station #1 – 2860 Southwest Drive – West Sedona – Multipurpose Room

Wednesday, September 25, 2013 / 3:00 PM – Executive Session / 4:30 PM – Public Session

~ MINUTES ~

I. CALL TO ORDER/ROLL CALL

Board Present: Ty Montgomery – Chairman; Corrie Cooperman – Clerk;

Nazih Hazime, Scott Jablow, Diane Schoen – Members

Staff Present: Kris Kazian – Fire Chief; Scott Schwisow – Division Chief; Buzz Lechowski – Division Chief; Gary Johnson – Fire Marshal; Jayson Coil – Battalion Chief; Sandi Schmidt – Finance Manager; SFD Employees

Others Present: Bill Whittington – Attorney; 14 Citizens

Chairman Ty Montgomery called the meeting to order at 3:00 PM, and entertained a motion to go into Executive Session pursuant to ARS 38-431.03(A)(3) for legal advice and ARS 38-431.03(A)(4) for instruction to attorney regarding this matter; Board Member Diane Schoen so moved; a second was given by Board Member Scott Jablow and the motion was unanimously approved at 3:05 PM.

II. EXECUTIVE SESSION

A. Vote to go into Executive Session relating to the following items pursuant to:

1. ARS 38-431.03(A)(3) Legal Advice; and ARS 38-431.03(A)(4) Instruction to Attorney – Lowell Johnson Complaint and to direct the Board’s attorney regarding claims asserted against the District.

2. ARS 38-431.03(A)(3) Legal Advice; and ARS 38-431.03(A)(4) Instruction to Attorney – Discussion of Sedona Regional Communication Center Staffing as it relates to number of positions and supervisors as well as the cost model for future subscriber expenses.

3. ARS 38-431.03(A)(3) Legal Advice; and ARS 38-431.03(A)(4) – EEOC Notice of Charge of Discrimination and to direct the Board’s attorney regarding claims asserted against the District.

The Public Session reconvened at 4:30 PM.

III. RECONVENE INTO PUBLIC SESSION

A. Salute to the Flag of the United States of America and Moment of Silence to Honor all American Men and Women in Service to Our Country, Firefighters, and Police Officers.

Local Boy Scout Jasper Herrick led the Pledge of Allegiance and a moment of silence. Division Chief Scott Schwisow asked those present to remember the twelve who lost their lives at the Washington Naval Yard shooting. He also read the names of the two firefighters, nine law enforcement officers, and six members of the US Armed Forces that lost their lives in the line of duty in our nation since the August Fire Board meeting.

B. Special Recognition in Honor of Jasper Sage Herrick Achieving the Rank of Eagle Scout.

Fire Chief Kris Kazian introduced Jasper Herrick and stated he will soon become an Eagle Scout. He pointed out the reason he is before the Board today is part of his Eagle Scout project involved Sedona Fire District. At the age of twelve, he became interested in learning CPR, and Firefighter Johnny Sedillo instructed Jasper and his Boy Scout troop. Chief Kazian noted that Eagle Scout is the highest rank of a Boy Scout. From

9-25-13 DRAFT MINUTES

Page 2

the year 1912 to 2012, two million people achieved that distinction; typically, 2% to 5% of Boy Scouts will make the rank of Eagle Scout accounting for less than 1% of the US population. Chief Kazian went on to mention notable people who have achieved the Eagle Scout status along with our own Fire Inspector Kevin Sullivan. Fire Inspector Sullivan planned to present the award, but was unable to attend tonight because his wife is expected to have their baby very soon; however, he sends his congratulations. Chief Kazian, on behalf of Sedona Fire District, congratulated Jasper on a job well done and asked him to comment on how Sedona Fire District was instrumental in his project.

Jasper announced his project was building a trail behind the Church of the Red Rocks down to Oak Creek. The trail consisted of a 125-foot elevation drop and approximately 1/8 of a mile. In the summer of 2012, the Firefighters came and helped with the steps and the technical parts of the trail. Chief Kazian stated that A Shift from Station 4 assisted in the initial process. Ms. Schoen commented she has known Jasper since he was a child and knows the people at Poco Diablo and the community are proud of him.

C. Discussion/Possible Action: Follow-Up for Executive Session Items:

1. Lowell Johnson Complaint.

2. Sedona Regional Communications Center Staffing and Cost Model for Future Subscriber Expenses.

3. EEOC Notice of Charge of Discrimination.

Mr. Montgomery stated the Board directed the Attorney to handle items as ordered in the Executive Session. The Board may reconvene into Executive Session at the end of the regular Board meeting to finish remaining items.

IV. CONSENT AGENDA

A. Consent Agenda – Discussion/Possible Action.

1. August 31, 2013 Finance Workshop and Regular Business Meeting Minutes.

Board Clerk Ms. Cooperman moved to approve the Consent Agenda, as presented; Board Member Scott Jablow seconded and the motion unanimously passed.

V. PUBLIC FORUM

A. Public Comments.

Craig Dible-VOC: I have a couple of topics for discussion. As you know our property taxes came in last week and my home stayed about the same, it went down 1.3% in value. So, the assets stayed the same but the property taxes for Sedona Fire District went up 23.5%. I remember looking at these ads when everyone was running in May of 2012. As you ran for office, you ladies and gentlemen said, among other things, we’ll be accountable to taxpayers through fiscal responsibility and we will ensure no higher taxes. The taxes are here and they are higher. I just wanted to point out that pledge of no higher taxes has not been met. The second thing, which is interesting statistically, I pulled the board minutes from December through August, nine months of Board minutes that would be the term of office of when you were sworn in. You’ve been in for nine months now. Here’s a remarkable thing, every single motion during that nine-month period was passed unanimously, not one single dissenting vote, everything was unanimously passed and approved. I’ve never seen anything like that. Normally Congress, City Counsel, Board of Supervisors, your local church group any group that is organized and runs things has a little bit of dissent or people will say “you know what, I don’t think that’s a real good idea, I’m voting no or I’m going to abstain”. But unanimously passed, every single thing, rubber stamped if you will for nine months. And again, I think, statistically, that’s anomalous and I just wanted to point that out.

Phyllis Erik-Bell Rock Drive, Chapel area: A few months ago after the board meeting, I approached Mr. Montgomery with a question I felt it was his responsibility as Board Chair to have the answer to. My question was what is the predicted estimated annual operating budget for the Chapel, Midway, Station 6, whatever you want to call it. I asked what the annual operating budget was. When I received a puzzled look by Mr. Montgomery and pause and then he referred me to ask the Chief, I knew he didn’t know. I then turned to the two Board Members, who should also have the answer, as they now serve on the Board and they were

9-25-13 DRAFT MINUTES

Page 3

members of the research group. Ms. Cooperman and Schoen didn’t have an answer either. My last resort was to ask Chief Kazian, who proceeded to tell me it would depend on the size of the air conditioners and so forth. I actually thought he was joking but he was serious. This is a question the taxpayers have been asking since the discussion of the Chapel Station started and never has anyone answered it; not Ms. Daines, not then Assistant Chief Keller, nor Chief Hazime, no one. Who’s accountable? I believe it’s negligent of this Board and the district not to have researched the one line item that you’re saddling the taxpayers with forever. Ms. Schoen you even took a class at AFDA where the speaker, in the seminar, said that one of the line items that you should be addressing is operating costs, and I assume that was done at the taxpayers’ expense. What happened to your phrase “trust and listen to the experts”? The Board has proven to not only be irresponsible but raised the question of dishonesty by not keeping your campaign promises. You said you would not raise taxes, you would be accountable, you are not. Anything to get elected. The district has proven that they are continuing to spend without disregard of the taxpayers, always under the guise of keeping us safe. I’m sure that I will hear from the supporters of the district as I always do. They will address my character and not what I’ve said. It’s to detour from the facts, so I say please address the facts, prove them wrong and tell me the taxpayers should not know what they’re paying for.

B. Executive Staff Response to Public Comments.

Chief Kazian announced that Mrs. Erick did ask that question and his answer was it depends on many things – including items such as the type and size of the building and appliances, which at that time had not been decided. When asking Mrs. Erick if she would like the answer, she walked away and said “no”. Chief Kazian expressed it was hard to give Mrs. Erick an answer based on her reaction.

Mrs. Cooperman commented on the promise of not raising taxes during her entire campaign. She commented there was consistency in saying we would not raise taxes for one year because of the previous Board, which Mr. Dible and Mrs. Erick were on, lowered the mil rate so severely that the budget would also have had to be severely cut in order to maintain that mil rate.

Mr. Montgomery stated he ran on a platform to build a station and we are building it.

VI. BUSINESS

A. Discussion/Possible Action: New Mandates for Fire District Financial Reporting – Approval of Resolution #2013-10: Compliance to the New Requirements of ARS §48-807.

Chief Kazian noted that staff is looking for opportunities to refine the format of the finance report. Staff is seeking approval of a Board Resolution to acknowledge the law and its compliance. Mr. Hazime commented that to save money he is fine with a summary in the Board packet and sending an electronic form of the documents to Board Members for review prior to the meeting. Chief Kazian stated he wants to make sure the district meets the reporting requirements. He is fine with the Board’s direction and staff will use the best practice moving forward. He would like to see what other districts are doing. He advised that some of the documents would need to be shredded after viewing due to sensitive information. Another concern would be the size of the files and the ability to send them electronically since they may not scan as one file. Mrs. Cooperman moved to approve Resolution #2013-10 Compliance to the New Requirements of ARS §48-807; Mr. Jablow seconded and the motion was unanimously approved.

B. Discussion/Possible Action: Review and Approval of August 2013 Financial Report.

Chief Kazian noted that staff included the requested graphs as well as the percentage of where we are into the fiscal year, which is 16.66%. Ms. Schoen moved to approve the August 2013 Financial Report, as presented; Mr. Jablow seconded and the motion unanimously passed.

C. Monthly Staff Report – Fire Chief Kris Kazian.

1. Call Summary for Month and Year to Date.

2. Calls by Still District Summary for Month and Year to Date.

3. Emergency Response Times Summary for Month and Year to Date.

4. Regional Communications Center Dispatch Activity for Month and Year to Date.

9-25-13 DRAFT MINUTES

Page 4

5. Special/Significant Activities and Incidents.

6. SFD Training Report.

7. Correspondence/Thank You Letters to SFD.

Chief Kazian presented the monthly staff report for August, which shows the number of calls is on target where we were last year. He pointed out the district had a busy month with mutual aid calls noting a particular incident on Interstate 17 involving a semi-trailer. A significant fire occurred on Birch Boulevard. Upon arrival, the crews found the residents outside with a smoldering mattress. The cause of the fire had been an electrical outlet. Chief Kazian cautioned people not to remove a smoldering mattress as it can be dangerous and can create a much bigger issue.

Regarding training for August, Chief Kazian announced the district recently held an intensive RSI (rapid sequence intubation) training as well as other EMS training. He also pointed out the thank you letters and a couple of donations.

Chief Kazian reminded the audience that October is Fire Prevention Month. This year, the theme is “Get Cooking with Fire Safety”. He is excited to institute more public education and some Firefighters have expressed interested in teaching at the schools. He hopes to have this in place by the end of the year. LAFF does a regional training; however, the district’s focus is on one classroom at a time. He also pointed out that the district budgeted for a firefighter position and staff is moving forward with an offer of employment.

D. Items from Staff.

1. Discussion: Options for SFD Engine 532’s Replacement.

Division Chief Scott Schwisow announced that as part of the insurance process, Engine 532 was sent to Fire Trucks Unlimited. He explained that staff is hesitant to put $35,000 into the vehicle, since it is well beyond its prime. At a prior meeting, management discussed the capital plan and the intent to request a new pumper in the next budget cycle. The original intent was to remove E-532 from service and utilize E-511 as a reserve engine. This engine is expected to serve as a reserve for several more years.

Chief Schwisow explained that because of the damage to E-532, there is a potential need to purchase an engine in this year’s budget. Staff is hesitant to put $35,000 into a 1992 engine that will not improve its safety or reliability. Staff discussed purchasing a refurbished unit, but wanted to see if there were any challenges with the recently refurbished engine. E-541 has been in service for a little over a month and maintenance is continuing to work through issues. While most of the issues are on a small scale and most likely related to the age of the apparatus, staff is hesitant to recommend a second refurbished purchase at this time. Secondly, if the district purchases a refurbished engine, it may be inheriting another set of challenges. Chief Schwisow did want to make clear that Fire Trucks Unlimited has been supportive and Finance is billing them directly for our time to repair the issues we have had with E-541.

Chief Schwisow noted that the district is short an apparatus and is exploring the idea of purchasing a demo pumper instead of a refurbished one. Staff would like to know if the Board would be open to looking into this process. An apparatus committee would be selected which would look at the options to ensure we are meeting the district’s needs and requirements. Chief Kazian interjected that typically these are fully loaded because they are trying to sell them. Next year, we may be looking at $450,000 to $475,000 for a new engine, if we have an opportunity to find one at $350,000 that would be a cost savings. There are significant concerns with the demo-refurbished apparatus, and investing $225,000 for a refurbished engine. Chief Schwisow went on to say the district typically does not have high mileage on the engines; they stay in service for eight to ten years.

Mr. Hazime commented he is in favor of pursuing a demo and requested staff bring the findings to the Board. He also stated his appreciation to staff for looking into what will or will not work. Ms. Cooperman asked how quickly the Board would need to make a decision. Chief Schwisow commented that if something were found, the seller would give us time to come to the Board. Chief Kazian explained that staff is not looking to bring something to the Board right away. We would like to engage a committee to provide better detail to the Board

9-25-13 DRAFT MINUTES

Page 5

on our findings. Mr. Hazime stated this is another great example of staff doing due diligence and making it easier for the Board to make responsible decisions.

2. Discussion/Possible Action: Station #6 Construction.

a. Construction Update.

Chief Kazian announced the stem walls are up and the rock and moisture barrier in. The cement trucks will show up to pour concrete tomorrow and the block wall construction will begin Friday. There were some issues with the concrete. The bedrock was deeper than projected and this caused an overage of concrete. The dirt was another issue and they had to bring in more dirt than specified. Attorney Bill Whittington stated these types of unknowns are specified in the contract. Chief Kazian went on to explain the change order is over the allowed amount so we will be looking to the Board for approval on that item. Staff continues to meet weekly and has good dialogue with all parties involved.

b. Photo-Voltaic Additive Alternate Option.

Chief Kazian announced the photo-voltaic is an additive alternate. The payback on the system is in the ten to twelve year range. He went on to explain that staff sees the good and bad with the additive and will need to know by the end of October how to proceed. Chief Kazian recommended waiting and seeing if there are any other unexpected overages. Waiting will cost more and will push the return out farther. The Board may want to look at leasing a system, but the system may not be large enough for this option. Ms. Cooperman stated she liked the idea of waiting to see if there are any more surprises but noted length of time on payback does not include maintenance. Chief Kazian pointed out the projected life of the system is about twenty years, but it changes rapidly. He went on to say staff is looking at a high efficiency air conditioning unit with a payback of four years and this is an $8,300 option.

c. Utility Impact Fees.

Chief Kazian commented the impression was the contingency covered the impact fees. This is not the case so the district is looking at approximately $66,000 for those fees. There was a savings of approximately $15,000 in working with Danson Construction instead of Arizona Water on the water hookup.

d. Furniture, Fixtures and Equipment (FF&E) Funding.

Chief Kazian stated staff budgeted for furniture and appliances, but did find a need to make adjustments and would rather do this now. There is a need to fund about $16,500 more than allocated. There are ways to save on the fitness equipment and purchase that in the next budget year.

e. Construction Block Material Issues.

Chief Kazian remarked LEA had issues with the sample wall, as it was not like the approved sample and they required the supplier to provide new block. There is a new sample wall now, which LEA approved. There was an opportunity with the sealer and there will be a change order for that as well. It should not be a significant amount.

f. Purchase Order #8384 to MagneGrip Group in the amount of $36,378.01 for a Vehicle Exhaust System at Station #6.

Chief Schwisow announced this type of system is standard in fire stations due to the diesel fumes. MagneGrip retrofitted the current stations years ago. Staff determined early on that we would get better pricing if this was not included in the bid process. The install with tax is $36,378.01 and we propose using district contingency and not station contingency funds. Mr. Montgomery asked if this was an NFPA requirement. Chief Kazian remarked this is not a requirement, but more of a safety issue. MagneGrip will install as a subcontractor and the benefit is the contractor will coordinate this. Chief Kazian recommended doing the install now. Ms. Cooperman moved to approve Purchase Order #8384 to MagneGrip Group in the amount of $36,378.01 for the materials and installation of a diesel exhaust removal system at Station #6; Mr. Jablow seconded and the motion unanimously passed.

9-25-13 DRAFT MINUTES

Page 6

g. Allocation of up to $80,000 from SFD Contingency for Station #6 Utility Impact Fees and FF&E Costs.

Chief Kazian stated the document included in the Board communication shows construction is approximately $10,000 under budget. There is $25,000 earmarked for other unexpected items. Staff needs to add the utility budget, impact fees and items outside of the budget. Chief Kazian recommended approval to utilize contingency funds up to $80,000 commenting that not all funds may be used. He went on to say Station 3 was built on a low bid project and there have been maintenance issues with the building. Chief Kazian went on to explain this does not include the $36,000 for the MagneGrip. He thanked the Board for their understanding and support and promised to be cost conscientious. Ms. Cooperman moved to approve the request to allocate $80,000 from contingency to handle the utility impact fees and the additional FF&E costs as presented on the budget worksheet; Mr. Jablow seconded and the motion unanimously passed.

3. Discussion/Possible Action: Resolution #2013-11 for Sale of Surplus Equipment – Water Tender 521 and Mechanic’s Vehicle.

Chief Schwisow announced the district has a1989, 2000-gallon water tender. There is a water tender shuttle under our mutual aid agreements, so staff feels three are sufficient to conduct district business. This will bring in some revenue and staff does not see the benefit of keeping it in service. The second vehicle is a high mileage 1998 Chevy 4×4 that was purchased when there was more staffing in the division using it. There may be a need to replace a vehicle next year with a more fuel-efficient one. Funds from the sale will go back as other revenue into the general fund. Ms. Cooperman moved to approve Resolution #2013-11 for Disposal of Surplus Property; Mr. Hazime seconded; the motion was unanimously approved.

4. Update: Fire District Assistance Tax (FDAT) for FY 2014.

Chief Kazian remarked this tax bill line item is determined by the county. The district received the maximum amount for at least twenty-seven years. As assessed values have dropped, the district will no longer receive the maximum. We are $69,000 short of our projection, but there are opportunities to make up through cost savings and other revenue.

5. Discussion/Possible Action: Approval of P.O. # 8663 in the amount of $65,000 to Danson Construction for generator installation for Station #1.

Chief Kazian stated this project has been difficult to manage. Sedona Fire District purchased a generator in conjunction with the City of Sedona. This item was included with the Station 6 bid, but we were unaware of the code compliance issue. APS, Unisource and the City all have additional requirements. In discussion with the City of Sedona, the City Manager has expressed interest in assisting with some of the cost. If the Board chooses not to do this, there will be more problems down the road. If we have an event where we need the Emergency Operations Center for a large incident, we may not be able to function. Chief Kazian explained that he wanted the Board to understand he does not take this lightly. Board Member Diane Schoen commented she admires Chief Kazian for standing up, but stated the Board is responsible for making these decisions. Ms. Cooperman moved to approve the installation of the emergency generator with funding allocated from the contingency line in the amount of $ 65,000 to Danson Construction as presented in Purchase Order #8663; Mr. Jablow seconded; the motion was unanimously approved.

E. Items from Board Chairman Ty Montgomery.

1. Monthly Update: Fees for Legal Services Provided to SFD.

Mr. Montgomery thanked Mr. Whittington for keeping the fees in line.

2. Reminder: October 2013 Fire Board Meeting to be held at Station #3, Village of Oak Creek.

Mr. Montgomery reminded the audience that the October Board meeting would be held in the Village of Oak Creek at Station #3.

9-25-13 DRAFT MINUTES

Page 7

FIRE MARSHAL’S SAFETY MESSAGE

Fire Marshal Gary Johnson stated that kitchen fires are the leading cause of residential fires. When winter arrives, the heating fires can become an issue. He cautioned homeowners to have their heaters serviced and to watch pets around space heaters. He also reminded people to have their wood stoves and fireplaces inspected on a regular basis.

Mr. Montgomery stated at this time the Board will reconvene into Executive Session. At approximately 6:00 PM, the Board reconvened into Executive Session.

At 7:06 PM, the Board reconvened into Public session and then adjourned the meeting.

ADJOURNMENT

The meeting adjourned at 7:08 PM.

___________________________________

Ty Montgomery, Chairman of the Board :cd