SOURDOUGH RURAL FIRE DISTRICT
Special Meeting Minutes, November 24, 2003

A Special Meeting of the Sourdough Rural Fire District was called to order by Chairman Kraft at 7:35 PM November 24, 2003. All Trustees were present in addition to Chief Crandell and Rae senior staff J.D. Engle.

The purpose of the meeting was to discuss apparatus and facility budget and expenditures and to determine future agenda sequence and time allocation. No motions were made regarding budget issues. Agenda process was determined by consensus.

Facility and Apparatus Budget discussion

The following memos and cost summaries were presented and are placed in the record.

• "Information for SFD Trustees Regarding Facility and Apparatus Improvement Project" by staff.
• Memorandum from Bachman on Apparatus and Facility Costs, summarized from meeting records; facility and apparatus plans and costs from 03/01 and 04/02.
• E-mail from Crandell (11/18/03) on estimates and timelines.

The staff memo was reviewed:

Estimated Components Costs 2001 mill levy proposal

Sourdough Station: $116,661
Cottonwood Station: $65,000 (figures reflect SFD cost share)
Fire Trucks: $602,343

Estimated cost of project: $784,004 (based on 7yr. completion)

Status of Project Components and Costs to Date

Sourdough Station: $32,000 ($116,661 proposed)
Cottonwood Station: Cost at Completion $367,000 ($302,348 greater than proposed)
Fire Trucks: Cost at completion $782,077 ($179,734 greater than proposed)

Total Estimated Project Cost - $784,004
Current Project Estimate - $1,246,425. $462,421 greater than proposed.

Expected Revenues vs. Estimated Additional Costs

Estimate of Revenue: $452,000
Estimate of Costs $387,000

Chief Crandell reported that he and Scott Mueller are in the process of going back through the records to prepare a detailed cost analysis of the Cottonwood Station. Costs and execution have reflected the design criteria determined by the committee of 2 + 2 from Sourdough-Rae as outlined in the improvement project memo.

The separate live burn and non-burn training facilities cost is currently at $70,000 and expected to finish at c.$84,000 with SFD share at $42,000. We noted the initial Cottonwood facility plan (3/19/01) called for the training facility integrated with a single bay fire station for a total cost of $130,000 (SFD share of $65,000).
Chief Crandell then related the history of the two pumper-tanker trucks that were contracted to Matt Pace of Montana Fire Works. In February '03 SFD had been assured that the trucks would be on time and on budget. Then the process fell apart. Truck E-7 was delivered 10/03 and E-7-2 was pulled from the job and shipped to Spokane, after more economic cab assembly and installation in Whitehall. Cab and Chassis costs were $115,000 each and savings anticipated through direct SFD purchase of components were as planned. Excessive time and labor costs where unanticipated and cause of the overruns. Truck E-7-2 will be completed by General Fire Apparatus in Spokane, and estimates are now being prepared to assure cost certain assembly and delivery. Work estimated at 70hrs/week with completion in 14.5 weeks. Contingency will be to 28 weeks. Cost estimates will be presented at December meeting. E-7-2 will be equipped with ladders, hose and some other equipment with the help of Rae. Some other safety and rescue equipment has already been purchased in anticipation completion.
Discussion turned to revenue. Tax-based annual revenue of $287,000 is $47,000 greater than initial calculation in '01. Sale of 1992 Pierce will bring $125,000. Total revenue at end of fiscal year will be $452,000. Future cycles will produce approximately $305,000 revenue annually. Fixed expenses will include $145,000 loan repayment, $80,000 operations, and $54,000 safety equipment, for $279,000 expense annually. Carry over from '03 will be $60 - 65,000.
Geddes asked staff to carefully look into future scenarios which would produce an expense bulge that would upset this calculation. The chief will focus on scenarios that could approach worst case. Larimer asked for a budget spreadsheet that reflects current situation expense and revenue and to calculate our improvement project expenses against revenue through projection. These refinements to our budget and financial report will be implemented at the December meeting.
Trustees discussed the pending state required audit. SFD books are in a ready condition that will facilitate the audit and reduce audit cost. No irregularities are anticipated.
Trustees discussed future budget demands including recruitment and retention, land acquisition, and SFD station rehabilitation.

Agenda Sequence in Time Allocation:

Trustees discussed conduct of our regular meetings. It was generally agreed that required business including review of the Chief's Report should be addressed as a priority at each meeting. Chairman Kraft will call for adjournment of the meetings at 10 PM. Bachman asked that an "agenda review" item be placed on each meeting notice so that deviations from agenda sequence can be discussed and resolved, and time commitment to each item assigned. The trustees agreed to this procedure which will be initiated at the December meeting.

The meeting was adjourned at 9:40 PM.

Submitted for approval at the December 15, regular meeting