BOARD MEETING MINUTES
July 20, 2010
1. Call to order
The meeting was called to order at 6:30 pm. Tardiness was due to the flooding in the Timberline-Fernwood, Doney
Park Areas.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL OF BOARD MEMBERS
Board Members Dan Atkinson and Gary Selig are absent.
4. APPROVAL OF THE MINUTES:
a. Approval of the minutes of the Regular Board Meeting held June 28th, 2010. There was a motion by Rick Parker to
approve the regular board meeting minutes of June 29th. There was a second motion by Jerry Loynachan and the vote
was unanimous.
5. REPORTS
a. Financial Report - 2009/2010 Fiscal Year End Report: The financial report was given by Tina Dillahunty. The
year-end notes were made on the Board Report. Capitol carry forward of $140,000 is from lease purchase agreement to
purchase communication equipment after the Federal Communications issues are resolved. Tina spoke of money
expended, and asked the Board Members if they wanted to go through the year-end report by line items. Board Member
Rick Parker questioned the account concerning pagers/phones. Tina explained she estimates phone charges the best she
can. The pager system was changed over to but took longer than anticipated. The uniform account was questioned and
Tina explained it was for the Honor Guard uniforms. She also noted the high charges on department credit cards due to
the high amount of wild land fires the department has been called to. Tina discussed the Wildland Report, noting the
(many) fires she is billing on now are not on this report. She explained how the State of Arizona will pay on the Hardy
and Schultz Fires. Structure protection by the department is not paid by the State adding this is our district and Summit’s
responsibility. There was a discussion held about future wild land calls in our area.
b. Administration Report - The administration report was given by Tina Dillahunty. She has been working on Wild
land billing, year-end reports and Wells Fargo refinancing.
c. Auxiliary Report – The Auxiliary Report was given by Joann Benninghoff. The Auxiliary has received $400 in
donations since the Schultz Fire began and will go back to the community to help flood victims.
d. Local 1505 Report - Garrett Hall explained that he was unable to attend the last Union meeting. He said the Car
Show in June was a big success.
6. CALL TO THE PUBLIC:
Randy James said he spoke at the Neighborhood Watch Meeting in Doney Park. Randy said there were many public
agencies present who were falling all over themselves about how good they did (fire and flood). He said Battalion
Chief Eric Lobstein spoke and asked if there were any questions. He said Chief Lobstein was given a standing ovation.
Randy said not one house burned because Summit Fire is a state-of-the-art department. This is what Summit Fire does
and this is what your tax dollars pay for. Randy told the board members that Eric was structure protection. I explained
this to these lame (meeting) people, and about Eric. This is what the public never heard about.
Mr. James talked about December when he left the meeting. He said the Summit Board decided to do some things he
does not agree with. He has kept going to board meetings. Randy said he over-saw the previous budget workshop and
insisted on a 5 year plan layout, saying this was unsustainable. He witnessed the cuts in the budget – rightly so –
because it was still top- heavy. At the May 2010 board meeting he strongly urged a 2.8 mil rate, but the Board posted a
2.53 mil rate. He said in June (2011?) we (Summit) could pay cash for the training facility if we had gone with a 2.8
mil rate, but he said ‘I just spoke up.’ Randy said with other public agencies they are not cutting taxes, and not giving
raises. At this time Summit has communication projects and the training facility and he is concerned with this. He said
it will be interesting to see how this plays out. He said he is still concerned about this 500 thousand and where it came
from. He said it is not fiscal management. He said he will talk about it further in the loan information. (Presentation by
HSA/Call to the Public follows.)
7. PURCHASE REQUESTS
a. None
8. CHIEF REPORT - It was explained early in the meeting that Chief Howard and Deputy Chief Whitted would
not be attending the board meeting due to rain and flooding in the Timberline/Sunset Crater Estate areas.
a. Run Report: The Run Report was given by Captain Paul Simpson. There were 93 calls to service during the month
of June. Paul said Summit Fire has transitioned to a very volatile time with fires and flooding. He spoke about a
terrible accident on Highway 180, and believes Summit Fire provides a great service to the residents in this area. He
also spoke briefly about the Zohl defibulators purchased for paramedic use. He spoke of the outstanding care Captain
Luna was able to give a patient with the Zohl product. He told how this information is being broadcast on the Discovery
Channel.
b. Cooperative effort with the US Forest Service and Coconino County: Many preparations have been made to assist
flood victims. Tina reported she heard over 80,000 sand bags have been given out.
c. Shultz Fire and Flooding, no report was given.
d. AFDA update: Tina attended the Arizona Fire District Association Conference. Among many informative classes,
she learned the Fire Chiefs contract must be re-signed when new board members are appointed.
e. The Burn Ban is rescinded Wednesday at 8:00 am: The Coconino County Burn ban will be removed Wednesday,
July 21st at 8:00 am.
f. Other: Tina told the board members that Summit Fire Chief Don Howard will be receiving the Bob Weber Lifetime
Achievement Award next week at the Arizona Fire Chiefs Association Conference.
9. UNFINISHED BUSINESS
a. Possible Presentation from Michael Valdez of HSE & Co. on the Wells Fargo Refinance. Michael Veldez of HSE &
Co was present and said after leaving last month’s board meeting he was unclear which direction the board wished to
take. He has had discussions with Tina Dillahunty about the Rural Development Plan for the refinance of the Wells
Fargo Loan. The pre-application is almost completed. He opened the discussion to questions by the members. He said
this type of financing is time consuming and takes a lot of work, but that is what he is here for. Rick asked for assurance
on no pre-payment penalties, which was given by Mr. Veldez. Tina does not want to finance any type of equipment for
40 years. Michael said you have the flexibility to pay it off early, and 40 years gives ‘breathing room’. Rick questioned
interest rates by the time the loan is processed. Mike said most likely there would be a change in September and the
interest rate would go to 4.125. Mr. Veldez spoke of his companies concerns with the training and maintenance facility
construction needing to begin within a month. He said if this is the case then the HSE loan would not be the way to go
because the loan would take too long to process. He said this is a fixed rate for the term of the loan. Tina and Michael
discussed other uses of the loan money. Tina told of her concerns with the type of loan HSE presented, and the ethics of
Summit Fire. Tina stated Summit Fire District (SFD) is eligible for conventional loans. She discussed FHA loans, such
as HSE is offering. Mr. Veldez said this loan would not have to be refinanced at any time and offered to set up a
conference call with Tina, himself and the representative with United States Department of Agriculture (USDA). This
information will also be put in writing and sent to the Board Members as well.
b. Possible Presentation from Lee Davis of Zion’s National Bank on the Wells Fargo Refinance. Mr. Davis of Zion
National Bank gave a presentation. Part of the regional bank corporation, Zion Bank invests in communities. Zion Bank
has been a lender to many fire districts in Arizona. SFD’s credit has been approved with flying colors. Zion Bank has
had a great history with SFD. We as a bank have a large portfolio of tax exempt securities. No appraisals and
environmental studies will be needed. A title insurance policy will be needed for each of the properties being
refinanced. Board Member Jerry Loynachan inquired about the price tag on the title insurance. Tina will let the board
know the answer to this. Mr. Davis said Zion is capable of doing the loan fast and easy because of their long term
commitment to districts like ours. There was a discussion on how the interest rate will work. No penalty if the loan is
paid off early. He reminded the board members that Wells Fargo will have a pre-payment penalty when the loan they
chose goes through. These fees are hidden per Zion’s standards, and it is unfortunate. Rick asked about paying off the
loan. He said this would actually be two loans, and they do not discourage SFD paying it off early. Again he reminded
the Board Members that Zion Bank tries to make the entire process simple. Tina explained the type of interest the Zion
loan would offer so that everyone was able to understand. The board thanked her for the explanation, and thanked Mr.
Veldez and Mr. Davis for their presentations.
Jerry Loynachan said upfront the rural loan sounded much more expensive because of fees. Here he does not see a side
by side comparison. Tina apologized for leaving her information on this matter at Station 32. Rick requested a breakout
of how each loan will work to decide which would be better. Tina requested information from the lenders about what
would be needed for either loan; engineering plans, bidding process, legal fees, or any other timely investment. She
does not believe the rural loan by HSE can happen in 60 to 90 days with two projects and bids published. Rick said we
do not need to speculate, but need a solid list of costs and preparations. Tina reminded the board the drop dead date for
refinancing must happen before December 2011. She began this process early because of lower interest rates and drop
in assessed values. Tina will work up the numbers for comparables.
Update on Training Facility: Information will be shared by Chief Howard at the next board meeting.
c. Update on Maintenance Facility: Information will be shared by Chief Howard at the next board meeting.
d. Update on Lockett Ranches direction: Tina stated that Locket Ranches has decided to move forward with a volunteer
fire department. They will be holding an election this year.
e. Update on Navajo Gaming Enterprise: Information will be shared by Chief Howard at the next board meeting.
10. NEW BUSINESS
a. None
11. ACTION ITEMS
a. Review, discussion and possible action on the Verizon Cell Tower Agreement. Tina said Sam Whitted has been
dealing with the contracts concerning the Verizon Cell Tower and ComSpeed. Verizon has agreed to pay SFD $2,500 to
hold the tower space for a year. Once the tower is up they will pay SFD $800 per month. ComSpeed has expressed an
interest in leasing space at Station 32. Tina stated that she has the Verizon contract for the Board to sign if they decide to
move forward. The contract includes a raise in the rate for tower use by 3% per year. Rick questioned if the $2,500 was
for this years’ space agreement, or last years. Jerry asked if this has been reviewed by legal authorities. Rick asked by
liability insurance. Tina stated that part of the amount is for last year’s agreement and that she does not know about the
legal counsel. Sam has been handling this contract. The Board chose to table this discussion until the next Board
Meeting.
b. Review, discussion and possible action on a proposal from ComSpeed. ComSpeed would like to have a cell tower
at Station 33, as well as showing interest in Station 32. At this time only a proposal has been offered. Sam Whitted is
requesting the SFD Board let him move forward with this proposal to see where it goes. The Board agreed to let Sam
move forward with ComSpeed.
c. Review, discussion and possible action on the Wells Fargo Refinance with funds for the Maintenance and Training
Facilities. If a decision is made by the Board they will need to adopt Resolution 2010-04. Rick Parker said this is a
topic that we should discus at the next board meeting so that Board Members Dan Atkinson and Gary Selig can be part
of the vote. Jim Doskocil agreed saying we need all five members to look at this together. Rick again requested the
letter from HSA stating their will be no pre-payment penalty and that the loan will not have to be refinanced is signed
and this letter is forwarded to Tina.
d. Review, discussion and possible action on an IGA for the Bear Jaw Module. Tina said the new IGA for the Bear
Jaw Module has been signed by Ponderosa and Highlands Fire. The contract has been reviewed by legal authorities.
The IGA has a clause stating any department can give a 30 notice to get out of the contract. The Board Members need to
vote that Chief Howard is approved to sign the IGA agreement for the Bear Jaw Module. Rick Parker made a motion
that Chief Don Howard can sign the new IGA Agreement between Highlands, Ponderosa and Summit Fire Districts for
the Bear Jaw Module to continue. There was a second motion made by Jerry Loynachan and the vote was unanimous.
12. CALL TO THE PUBLIC: Jerry Loynachan asked if there are any time restrictions on public speaking at
board meetings. He said it may be a good idea to consider three minute enforcement. Jerry said he appreciates Randy
James and the work he does, but believes we should be consistent. Rick said his thoughts are as long as it does not
become redundant or troublesome, then he does not believe it is a problem. There was a discussion held by the board
and it was decided there is no time limit. Randy James said he had handouts showing the total interest breakout for both
financial institutions for the life of the loan. Randy said he knows both of these guys and they are both quality people.
He believes that congress will bring interest rates up because of this recession.
13. ADJOURNMENT
Board Chairman Jim Doskocil thanked both Lee Davis and Mike Veldez for coming to the board meeting and the
information they have given. He said this is good information and the SFD Board wants to do what is right to the
constituents. Jim Doskocil made a motion to end the board meeting. There was a second motion by Rick Parker and the
vote was unanimous. The meeting ended at 8:30 pm.
Others Present at the Meeting: Randy James, Joanne Loynachan, Paul Simpson, Keith Klassen, Roger Grinnell and
Garett Hall.
Respectfully Submitted,
Joann Benninghoff
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