SOURDOUGH RURAL FIRE DISTRICT
November 19, 2001

The regular meeting of the Sourdough Rural Fire District Board of Trustees was called to order by Vice-Chairman Steve Dayhuff at 7:35 PM on November 19, 2000 . Trustees present were Dayhuff, Bachman, Geddes and Harper. Chairman Kraft assumed the chair at 7:50 . Chief Crandell was present. Kandy Rose of the Sourdough Supporters attended a portion of the meeting.

The minutes of the October 15 meeting were presented. They were approved by the board upon motion by Geddes and second by Bachman.

The Treasurer's Report was presented. It was decided not to ask for an extension of the Farmers State Bank credit line for $45,000, that has been carried on the report for about two years. Pete will draft a letter of appreciation from the Board to the bank. Scott Mueller will continue as district bookkeeper until a replacement has been found. Qualification for the position include knowledge of fire service in addition to bookkeeping experience and skills. The SFD financial condition will be subject to state required audit next year as a public entity responsible for annual expenditures greater than $200,000. The Treasurer's Report was approved and warrants > than $300 submitted for signature upon motion by Geddes and second by Dayhuff, and passage by the board.

The Chief's report was presented and is included in the record. Community outreach efforts in Hyalite Meadow Subdivision is a focus and Kandy Rose was recognized for her work in the preparedness program she is spearheading. Other District subdivision residents, notably from Triple Tree, Gardner Park and Hyalite Foothills have expressed interest in the program. The septic contractor selection process is in motion. Public notice will be made. Competitive bids are not required for the project that will come in under the required $50,000 at $25-30,000.

The joint Rae-Sourdough Station and training facility design was presented. Expansion in size (to 3,600 ft 2 ) and living quarters are now possible due to lower interest rates and growth income. SFD continues to work with Rae Fire to ensure equitability of costs. New SFD fire apparatus will be assembled in the bays this spring as work on the living quarters/meeting room continues, prior to operational commissioning of the station. The run report to date is included in the record. Fire fighters have been busy with four major structure fires on mutual aid in the past month, in addition to more normal calls and training.

Bachman presented loan and account documents from 1 st Security Bank for review. SFD is opening an account to which loan advances will be transferred. That account (#010004695) will be used to disburse payments due to vendors and contractors. All trustees are authorized to sign, and all drafts must have two signatures. Bachman moved and Geddes seconded to open this account. The motion passed. All trustees signed the account- opening document.

The loan documents consisting of " Disbursement Request and Authorization", "Corporate Resolution to Borrow/Grant Collateral" , (Draft) "Promissory Note", "Commercial Security Agreement", "UCC Financing Statement", and "Amortization Schedule" were reviewed. The specific purpose of the loan is ( from "Disbursement Request and Authorization" ), is: "Non-revolving line of credit for fire engine, equipment and station repairs" , and is dated as of December 1, 2001 . From the " Promissory Note ": "…the principal amount is $750,090 or so much as may be outstanding, together with an interest rate of 5.000% per annum on the unpaid outstanding principal balance of each advance. … Interest shall be calculated from the date of each advance until repayment of each advance." The board requested one change to the documentation: that of the corporate address which is to be 4541 South Third Road , Bozeman , Montana 59715 .

Discussion was conducted over the amount of advance contemplated. Plans are for the apparatus chassis and components to be delivered by May 1, 2001 . Along with station repairs an advance amount of $500,000 to be drawn in the spring was suggested as a probability.

Dayhuff moved and Geddes seconded that Dave Kraft and Don Bachman be authorized to proceed to approve loan documents as presented with the change of address as requested, and that their signatures be affixed to the documents on or prior to December 1, 2001 . The motion passed.

Bachman presented a letter from the State of Montana Department of administration for an update of the surplus resolution submitted annually. This allows SFD to acquire surplus property from the State. Kraft moved and Dayhuff seconded the resolution be extended for the coming year and that the necessary documentation be provided to the State. The motion passed.

Bachman noted that we have received an annexation resolution from Gallatin County bringing the following described real property into the SRFD: NE1/4 of Section 32, Township 2 South, Range 6 East, P.M.M. Gallatin County , Montana .

The meeting was adjourned at 9:45PM