JOHNSON COUNTY FIRE DISTRICT #1 – Johnson County, Kansas

Special Board of Directors Meeting

November 18, 2010

Fire Station #3, 490 New Century Parkway, New Century, KS

BOARD MEMBERS             STAFF

Keith Johnson                         Max Sielert      Kirk Keller                  Andrew Dilda      Jerry Holly

Kent Harlow                                                   Mike Hirshmann         Brian Hagman     John Allen

Mark Burdolski                                               Darin Weese                Ryan Sawin

Guests:  Gary Anderson with Gilmore & Bell and Dustin Avey with Piper-Jaffrey

CALL TO ORDER

Mark Burdolski called the meeting to order.

AGENDA

Kent Harlow moved to approve the agenda as submitted.  Keith Johnson seconded and the motion carried.

BOARD CONSIDERS APPROVING BOND RESOLUTION:

Gary Anderson with Gilmore & Bell presented the bond resolution. With all your debt in one loan it should put the district in a very good financial standing.  In 3 years this should place us in a much better position to pursue the consolidation.  The action presented is to approve the resolution.

Mark Burdolski read the resolution 10-18 reads:

A resolution authorizing and directing the issuance, sale and delivery of general obligation bonds, series 2010, of Johnson County Fire District #1, Johnson County, Kansas; providing for the levy and collection of an annual tax for the purpose of paying the principal of and interest on said bonds as they become due; making certain covenants and agreements to provide for the payment and security thereof; and authorizing certain other documents and actions connected therewith.

Kent Harlow made motion to accept the resolution as read.  Keith Johnson seconded motion and the vote was unanimous.  Signature of paperwork was completed.

Dustin Avey with Piper-Jaffrey presented that they took 4 bids on the bonds and the lowest bidder was Commerce Bank.  UMB and Country Club and Morgan Keegan also bid.   The market is very volatile due to a lot of issues and the market fluctuations.  We are still at very near low rates for 20 year bonds.  In 2 years we would not be able to do this.  The update to mill levy impact to the bond was reviewed.  We are accounting paying for the payoff for the station, temp notes, improvements and loan with First Bank of Kansas for the engine lease, all of these will be consolidated into one bond.  The first payment will not be due until March 1, 2012 in the amount of $268,000.  We will not have sufficient budget to cover this until next year.  The first principal payment is not due until September 1, 2014 in order for the consolidation to become a part of the bond.  Very good interest rate we got was due to the district being able to get an A+ rating, which is really good.  There are some fees due to the State of Kansas for the bonds.  The fee from Commerce Bank is based on their bid.  Max Sielert asked where our rate of 3.4% fell in the range available.  Dustin Avery responded that the range was 3.99% and 3.997% to 3.37%.  Kent Harlow asked about the projected growth rate and Dustin Avery responded that we used the modest rate to calculate the growth.

The price of the first station is based on standard value and Dustin Avery stated this is an excellent value for part of the bond issue.  Wire transfers should be made December 14^th for payment of the loans.  Some of the funds will be for cost of issuance and receiving those.  We should have the invoices for these costs by the December 8^th meeting.

BOARD CONSIDERS APPROVING AGREEMENT WITH MED-ACT:

Max Seilert presented copies of the Facilities Agreement for review.  With the purchase of station 2, it comes with Med-Act who is stationed at that facility.  This is a standard Johnson County agreement of a facility being used by Med-Act.  We have no financial transactions reflected in this agreement.  This is the same agreement we had for our Gardner station.  This agreement is for them to stay at their current station.  However, they are considering paying for an addition to be made to our station 1 which would make a better location logistically.  Kent Harlow asked if we should place this in the agreement, however, Max Sielert stated that we would just make a new agreement when the time comes.  Kent Harlow asked about the insurance.  Max Sielert explained the facility insurance would be our expense but no insurance on their property or vehicle would be paid by Fire District 1. We will pay Med-Act an annual fee of $1,000 for infection control and training, and we will have to pay them for that expense.  Max Sielert and Captain Kirk Keller explained how the current system works for infection control and response.  Max Sielert suggested this be approved and signed.

Kent Harlow made motion to accept the Facilities Agreement as presented.  Keith Johnson seconded motion, voting was unanimous.

Max Sielert presented copies of the Medical Director Agreement for review.  In the past we have not had a director.  Beginning January 1^st we will have to have a medical director as the State EMS Board will require it.  The first two pages indicate what the agreement contains.  We have had medical representatives at the county level before.  We need to increase our presence and commitment to providing the safety of medical liabilities.  This is a no cost agreement, with no fees for us, because we do not have a transporting vehicle which is stated in the agreement.  This agreement covers all of Johnson County and includes execution by the other Fire Districts.

Kent Harlow made the motion to accept the Medical Director Agreement as presented.  Keith Johnson seconded motion, voting was unanimous.  Signature of paperwork was completed.

APPROVAL OF MINUTES

Keith Johnson moved to approve the minutes from the October 12, 2010 board meeting as submitted.  Kent Harlow seconded and the motion carried.

Keith Johnson moved to approve the minutes from the October 20, 2010 special board meeting as submitted. Kent Harlow seconded and the motion carried.

FINANCIAL REPORT

In reference to our October Financial Report, Max Sielert stated that as of two months ago we had 9.9% of budget remaining.  As far as operating budget we are over budget, however, with revenue from our grants we will be under budget.  The only revenue received last month was the final airport contract payment.  We are going to be real tight, but will not have to republish the budget.

Protective clothing shows minus amount due to state cost share grant revenue was received.  Legal is over budget due to many of the contracts we have had this past year plus an extra audit this year.  Audit cost was $5,000.  We are over budget on health care due to the fact it comes for renewal in June which always leaves 6 month expense not being able to project.  We are over budget on fuel and will be addressing that issue soon.   Biggest issue is revenue for the rest of the year due to no payment from the City of Olathe for their contract.  Revenue projected by Dec 7^th is $83,763.  We need twice that much to get through the end of the year.  Lee Metcalfe indicated he now is unable to pay until the contract is signed.  We tried to get an early pay from Gardner and that is not going to happen until Dec 7^th.   We need to determine the best direction to go with these two revenues falling through.  Keith Johnson suggested we contact the County Commissioner about covering our payroll on Dec 3^rd.   He also suggested calling the County to let them know we have problems due to non-payment by the City of Olathe and ask if they will cover our short fall for one week.  Max Sielert indicated he has already discussed this problem with the County, as well as, the Commissioner and he will contact them again tomorrow.  Our next tax distribution is not until January 20^th.

Kent Harlow moved to table this October 2010 financial report until next meeting.  Keith Johnson seconded and the motion carried.

FUTURE MEETINGS

The next Board meeting will be held on the 2nd Tuesday, December 14^th, and will begin at 6:00 p.m.

ADJOURNMENT

At 7:15 p.m. Kent Harlow moved to adjourn the meeting and continue with executive session.  Keith Johnson seconded and the motion carried.

There was an Executive Session held to discuss contracts.