Poudre Fire Authority Board Minutes 12/11/07
POUDRE FIRE AUTHORITY
BOARD OF DIRECTORS MEETING
December 11, 2007
The Poudre Fire Authority Board of Directors met on December 11, 2007 at 9:00 a.m. at Station 14, 2109 Westchase Road. Directors Jerry McMorris, Doug Hutchinson, Darin Atteberry, Lisa Poppaw, Mike DiTullio, Chief John Mulligan, Director of Administrative Services Guy Boyd, Division Chiefs Mike Gress and Kevin Wilson, and Recording Secretary Kirsten Howardwere present.
Chairman Lisa Poppawcalled the meeting to order.
CONSENT ITEM
October 23, 2007 Minutes
Fourth Amendments to the PFA Money Purchase Pension Plans
Professional Services Agreement for Architectural Services
Doug Hutchinson made a motion to approve the consent items as presented. Mike DiTullio seconded the motion. The motion passed by unanimous vote of the Board.
DISCUSSION ITEMS
“Why the Big Truck” Presentation
John Mulligan stated that one issue that the Board has questioned over the years is why our trucks and engines respond to all calls. To answer this question a 5-minute video was put together that explains what we do. The video was presented to the Board, and John added that it will be used at service clubs and on channel 14. John thanked Jim Pietrangelo for putting the video together. Darin Atteberry stated that he likes the fact that we have been asked that question, and we did this to answer it for the community.
Lease Purchase of New Station 4
Guy Boyd stated that at the Board meeting in August he talked about potential funding for Station 4, and he was instructed to continue researching funding alternatives. Guy stated that Station 4 is a house with a large garage, and it has been a top priority for replacement for a long time, but it has been displaced by even higher priorities. Chuck Seest, City Finance Director, and Jim Manire, the City’s financial consultant, discussed with Guy the financial package for funding of Station 4, which includes borrowing $3,160,000 at an interest rate of 4.089% with an average annual payment of $234,000 (equaling $4,700,000 over 20 years). The other option is to save money for the station, which would take another 16 to 22 years to save and would cost $6.7 to $8,000,000 because the cost of construction is increasing at a higher rate than financing rates. Guy discussed the mechanics of the lease, sublease, and the reason for the District involvement. He stated that the capital expansion fee will be used to make the annual payments. Chuck Seest and Guy Boyd stated that hey are comfortable that the capital expansion fee will generate enough revenue annually to make the payments. Guy continued that the historical high was $521,000, the low was $247,000, and the average for the last five years was $280,800. Darin stated that this is exactly the purpose of capital expansion fees. Guy added that there is a three-year window to encumber and spend the funds.
Guy stated that yesterday the District approved the obligation subject to PFA Board approval. He added that it is great partnering between PVFPD, PFA, and the City to make this station a reality. Doug Hutchinson asked how the requirement for Station 4 has changed as we annexed in populations. John Mulligan stated that it is based on call load, and the station was opened with 400 calls and we are approaching 2,000 calls currently. Darin asked if it is on an incline or if it is static. John stated the biggest jump has already occurred, and has slowed since then. Guy stated that the Strategic Plan calls for a west squad to be housed at Station 4, which would require a two-company station. Darin stated it is desperately needed, and lease purchasing for public entities are well tested and common practice.
Guy stated that the Board needs to approve the resolution, which enables the chairman, Kirsten Howard as secretary, and John Mulligan as Chief to process the paperwork for the funding. Darin stated that he appreciates the support from the District. Jerry McMorris replied that the Districtis a partner, and this partnering delivers a great service to the public at a very good value.
Doug Hutchinson made a motion to approve resolution 07-15 authorizing the construction of a new fire station and the execution and delivery of a site agreement and a sublease agreement related to financing the costs thereof; ratifying action previously taken; and providing for other matters relating thereto. The motion was seconded by Mike DiTullio. The motion passed by unanimous vote of the Board.
Chief Mulligan recognized Adon Wolff for saving his brother’s life, and presented him with a recognition plaque.
2008 Budget
Guy Boyd stated that staff is asking for the Board to approve the budget, which includes three pieces - a resolution adopting the budget and appropriating funds, the pay plan, and the Fire Prevention Bureau fees, which have not changed from 2007. Guy added that this budget has not changed much since the preliminary budget in August.
Guy continued that there is a lot to be pleased about, and he highlighted the revenue increase from the City and District of $ 950,414, which will allow us to meet our number one priority – paying the 70th percentile total compensation plan. Guy continued that this budget is a citizen centric, employee driven, data proven, output oriented process. All these parts are interlinked and the total compensation plan recognizes the employees as being essential to this process. He added that this budget will allow us to increase minimum staffing by $90,584. He continued that we have been savingthe annual operational contingency for minimum staffing since we have been unable to budget increases. Therefore we really do not have a contingency in the normal sense because it is now primarily focused on this issue.
Guy stated that there is also an increase in Fire Prevention Bureau revenue. KevinWilson stated that an issue he is faced with is final inspections in the field only two days per week, and this has a negative impact on construction. He added that this was reflected in the CSU survey. Kevin stated that he would like to use the increased revenue for an additional inspection position. He added that the goal is to do final inspectionsfive days a week.
Guy continued that we are also able to accomplish, with no new revenue, but with a reallocation of existing revenue, a GIS/emergency response map position, ½ time mechanic, and explorer scout program. Mike DiTullio asked why we do not hire another full-time mechanic. John Mulligan stated that at this time a half-time mechanic will work for us at this time. Mike Gress commented that with this position we have significantly reduced backlog, but eventually we will need another full-time mechanic. Mike Gress added that the part-time mechanic will cover for the full-time mechanic when he is on vacation or sick leave. Guy stated that this is for specialized fire apparatus, not staff vehicles.
Guy continued with capital, and stated that in 2008 we will build Training Building C, purchase a new ladder truck, Station 4 (lease purchase), and will save for Station 8. Mike Gress stated that the apparatus replacement schedule shows we are due to replace a truck in 2008. The current reserve truck is 25 years old, and the truck we are replacing is 10 years old, and it will replace the reserve truck at Training.
Guy stated that it is time to plan for Station 8, which will be located in Timnath and will serve Timnath and Southeast Fort Collins including the rapidly developing Harmony corridor area. Guy continued that the PVFPD has saved about $1,000,000 and PFA has put about $1,000,000 in the account to build Station 8. He added that we are two-thirds of the way there, and we need to look at the IGA with Timnath for funding. Guy stated that the partnership, with the IGA through the leadership of the District, has created a win/win/win situation. He added that we will need to build and implement the station somewhere around 2009 to 2011. John stated that the station will be first-in to the new shopping center, HP, and the south side of Harmony. Guy added that it is operated as a volunteer station and will be until we can hire paid personnel, so it can be phased in.
Guy stated that we are at a place where we have frozen or cut parts of the budget since 2002, some since 1999. He told the Board that it is staff’s responsibility to clearly explain to our elected leaders operational shortfalls, their consequences to the organization and to public emergency service. The highest priority is the south battalion, which in addition to safety relates to managing shifts. He added that we have focused on putting firefighters on the street, but it is also time for support, and we need an IT and training position. Finally, we need $300,000 in O&M for lines that have been frozen since 2002, since we must replenish some of those lines in the future to keep the organization functioning properly.
Darin asked, in light of diminishing revenues, some of the performance metrics are keeping up, how do you explain that? John Mulligan stated that the organization has performed admirably, but heis concerned about the ability to maintain that service in what is becoming a more urbanized and denser community. He added that we do strategic planning for a reason - to see what it will take to keep us there. John stated that he does not want to see us fall off a cliff, and we could very well move into that area. John stated that he thinksPFA is a first class operation that is being funded in a below median cost structure, which is a real value to this community. John stated he would like to keep the performance at a cost that doesn’t exceed median of our comparisons. Darin agreed.
Lisa Poppaw opened the meeting for public comment. Jeff Beard, firefighter at Station 5 and union executive board member, stated that he reviews all of Board packets, and he thanked the Board and staff for the budget. He thanked the Board for approving Station 4 funding. Jeff stated that staff has prepared a strategic plan and we havenot been able to keep up with plan, and he encouraged the Board to come up with a funding plan so that we can keep up with the statistics presented today. He added that finances are a big part of what the firefighters deal with inadvertently as a part of their jobs. Jeff continued that the firefighters donot want to be the top paid department;rather they are happy and comfortable with the 70th percentile. Recruitment, promotions, and service levels have a lot to do with what the firefighters are paid. Jeff added that the south battalion has been on the priority list for 27 years. Jeff stated that if he dies in a fire, he expects each Board member at his funeral to explain to his wife why there isnot enough money in the budget to have a south battalion to provide firefighter safety. Jeff stated that he is going to write a plan on a line-of-duty death so we can be prepared when it happens.
Patrick Love stated he is addressing the Board as a union member and the sky is not falling, but the union wants to prevent it from falling. He added that we do not want to be a statistic. Patrick asked the Board what would happen if you did not come home at the end of day. He added that we donot want to face it within our extended family nor our family. He stated that the Local wants to continue being partners with PFA and the City of Fort Collins, and we want to help in anyway to make our jobs safer.
Darin Atteberry stated that we will not be able to fund the south battalion in this budget, unless other significant cuts are made within the budget. Darin stated that the reason he brought up the question about funding and performance earlier is the tipping point, and once you get behind it is very hard to catch up. John Mulligan stated that our recommended budget is our recommended budget, and he understands the firefighters’ concerns, they are real. He added that we need to address the situation; we need to continue to look at ways to fund the south battalion, but we are not making cuts in this budget to fund it. Darin stated that John has presented the south battalion and strategic planning needs to Council and to this Board numerous times, and it is next in line for funding. Darin stated that as it relates to the bulk of the revenue increase it is going to personnel, and this is consistent with the City. Darin added that he is very concerned about compensation levels for City employees and firefighters becausewe have said we are competitive-plus.
Darin asked about the reserve policy, and added that he would like to hear about it at some time. Guy Boyd stated that reserves are very low, and that is because the funding entities keep reserves that are proportionate to the funding levels, and since they fund us, they have reserves for us. He added that PFA has a 3% reserve, and have only needed to use it once. Darin asked if the budget policies in the budget havebeen adopted by the Board. Guy replied that they have been adopted by the Board. Darin stated that he is glad that we participated in BFO, and he thinks it is a great budget.
Doug stated that Council, staff and Darin have been talking about clear need of price of government, and the first step is how to do that. Despite cuts in funding and personnel, we are at the raged edge and looking at police services, and through the strategic planning process and the BFO process we have a good idea of PFA’s needs. Jerry McMorris stated that having to separate our needs and wants will always be an issue, and hopefully if we all keep working together we can accomplish the south battalion. He added that to maintain the morale and performance of personnel we need to bring this issue forward. Jerry stated that he assures, from what he has seen,that staff has presented this budget well, and the Board is genuinely concerned. Mike Ditullio stated that all programs need to be looked at in 2009, and he supports the budget as presented today.
Mike DiTullio made a motion to approve the 2008 budget and accompanying resolutions 7-13, 7-14, and the 2008 pay plan. Darin Atteberry seconded the motion. Lisa Poppaw stated that she really appreciates PFA’s participation in the BFO process because it helped her understanding greatly. The motion passed by unanimous vote of the Board.
Chairman Poppaw asked if there was any other business before going into executive session. There was no other business.
Chief’s Performance Review
Doug Hutchinson made a motion to go into executive session to discuss the Chief’s performance review per §24-6-402(4) (f), C.R.S. Darin Atteberry seconded the motion, and the motion passed by unanimous vote of the Board.
Lisa Poppaw reconvened the meeting. Doug Hutchinson made a motion to award John Mulligan a 4% cost of living increase, and, because of analysis of similar salaries of fire chief’s along the Front Range, adding a 4% catch-up pay to cost of living for 2008. Mike DiTullio seconded the motion. The motion passed by unanimous vote of the Board.
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