EXCELSIOR FIRE DISTRICT

OPERATING COMMITTEE – NOTES OF MARCH 8, 2006, MEETING

1. Call to Order

Chair Irvine called the meeting to order at 3:10 p.m. in the Fire Chief’s Conference Room at the West Station, 24100 Smithtown Road.

Present: Dana Young, Deephaven City Administrator; Larry Whittaker, Excelsior City Manager; Roberta Whipple, Greenwood City Administrator; Craig Dawson, Shorewood City Administrator; and Sara Irvine, Tonka Bay City Administrator.

Also Present: Dana George, EFD Interim Fire Chief; Jim Olds, Fiscal Agent.

2. Approval of Agenda

Whittaker asked that A Survey of Fire Chief Salaries be placed on the agenda as Item 7d under Other Business. With that amendment, the Agenda was approved as presented.

3. Approval of Meeting Notes

a. February 15, 2006

The notes of this meeting were approved as presented.

4. Fire Chief Report

a. Monthly Review for February

The EFD responded to 75 calls in February. Whittaker noted that one call had been incorrectly assigned to Excelsior, and should have been to Shorewood.

George reviewed calls, response times (slightly higher than January, but still within standards), and response rates of firefighters (which were generally good).

George noted that the EFD will be conducting a new class for Firefighter I beginning April 3. District Chiefs Berglund and Heiland will be the primary instructors.

EFD Operating Committee

March 8, 2006, Meeting Notes

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5. Approval of Bills

Olds noted that one claim should be removed, from One Net USA in the amount of $530.84. Young moved, and Whipple seconded, to approve the bills as amended. Motion passed, 5/0.

6. 2006-2025 Capital Equipment Program (CEP)

George presented a draft of the proposed 2006-2025 CEP. The current CEP shows a $26,000 anticipated deficit at year-end 2006.

He noted several changes in trends and in anticipated costs for equipment:

· Diesel engines will be increasing in cost $8,000 to $20,000, beginning in July 2006.

· Equipment inflation is estimated at 3%/year. Industry projections indicate an average of 4%/year for the next several years, and apparatus is expected to increase 8%/year for each of the next few years.

· Radios have been more costly than budgeted.

· Cost increases have been made for several pieces of apparatus: Engine 22, up $15,000; Engine 21, up $50,000; Heavy Rescue, up $50,000.

In this draft plan presented, George believed that the 2007 revenue for the Equipment Fund should be increased from the planned $125,000 to $165,000, along with increases over amount planned for several succeeding years.

After discussion, the Committee recommended that replacement of the Fire Chief Auto, $25,000, be moved from 2007 to 2008. George noted the vehicle has 101,000 miles on it, but should be able to perform adequately for the additional year.

The financing for Engine 22, which is to be delivered in 2006, should be arranged to have lease payments due on September 1, to improve cash-flow for the District.

Given the recommended change in replacing the Fire Chief Auto, and the probability that 3% inflation for equipment may understate the industry environment, the Committee recommended that the revenue to this Fund be $150,000 in 2007; $155,000 in 2008; and $160,000 in 2009-2016 (after which it is scheduled to be $160,000).

The CEP will be presented to the Board at its March 22 meeting. The CEP will be at the city councils for their first meetings in April.

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March 8, 2006, Meeting Notes

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7. Other Business

a. Year-to-Date Budget Review

Budget expenses were generally within expected levels of expenditure. Olds noted some line items may have appeared relatively large, but were a matter of timing. The salaries line reflected the payment of severance to the former Fire Chief. Utility maintenance contracts are paid in full at the beginning of the year, and there had also been some repair expenses incurred. The overall expenditure of 31.12% of budget, vs. 17% of the year expired, reflected the large payments at the beginning of the year made for the building leases and equipment leases.

b. Clarification of Orono Contract Revenue

George and Committee members reviewed the history and perceptions of the intended uses of revenue from the Orono contract. After much discussion, Young offered to prepare a memorandum on behalf of the Committee, reflecting its discussion, understanding, and recommendation.

c. Disposition of Funds in Facility Fund

Dawson explained that questions had come up regarding the original revenue to the Facilities Fund, and how that initial balance had been used. The original plan was to begin to accumulate revenue for front-end costs (pre-bond revenue), and also to have more gradual increases to the amounts the District (and its cities) would be paying fully on an annual basis for the new fire station(s) -- $60,000 in 2001, $100,000 in 2002, and what was anticipated to be $240,000 in 2003 and beyond. What was eventually decided to be built was beyond what was discussed in 2000. After Olds and Dawson recalled what happened, they related to the Committee that the $160,000 was used to for the initial lease payments in order to lower the transfer from the General Fund (and the cities’ payments to it). The balance currently maintained in the Facilities Fund is only at a level adequate to meet the payments for the building leases.

d. Fire Chief Salary Survey

Whittaker related that the Fire Board Chair had asked for a survey of fire chief salaries, and whether this would be done by the Operating Committee or the consultants. The Committee will ask the consultants whether they anticipated this in the scope of services for their fee.

8. Next Meeting

The next meeting of the Operating Committee was scheduled for Wednesday, April 12, 2006, at 3:00 p.m. at the West Station.

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March 8, 2006, Meeting Notes

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9. Adjournment

The meeting was adjourned at 4:35 p.m.

Respectfully submitted,

Craig Dawson

Recorder