1.0/2.0 Call to Order / Roll Call
The Regular meeting of the Board of Directors of the Red, White & Blue Fire District was called to order by President Greenly at 0704. In attendance were Directors Greenly, Perkins, and Gothard. Directors Randall and Griffin were excused. Chief Green, Deputy Chief Miller, Carmen Modglin, and Jackie Pike were in attendance. Jackie Pike served as Recording Secretary.

3.0 Approval of Minutes
M/S Perkins/Gothard to approve the minutes from the January 18, 2007, Board meeting. Voice vote unanimous. Motion carried.

4.0 Citizens Comments, Matters for Public Hearing, and Other Communications
None.

5.0 Approval of Changes to the Agenda
There were no changes to the agenda.

6.0 Chief’s Report and Discussion Topics
The Fire Department had a very busy month in the press, fortunately, it was all positive. Chief Green distributed copies of the various articles and encouraged the Board Members to take the time to read them. Captain Scott is doing a good job of keeping RWB in the face of our community.

Board members received comments (not complaints) from the general public regarding the impact on taxes, due to the mill levy increase. It appears that the public has more complaints about the school taxes than they do about the fire department taxes.

The public is aware of the Fire Department’s purchase of ambulances, and so far the response is positive. The Board does not support the Fire Department starting their own ambulance service. The Board directed Chief Green to proceed extremely slowly and to be careful with the concept of an ambulance service.

Captain Scott was recognized at the School Board Meeting on 2/14/07 for outstanding contributions to the Breckenridge Elementary School. Captain Scott was not available to attend this meeting, and Chief Miller accepted the award for her. Principal Kerry Buhler from Upper Blue Elementary also commended Captain Scott and the Fire Department crews for their work at Upper Blue Elementary.

1. Emergency Response Data. The operations crews have been very busy. This was very apparent at the Awards Banquet. January was the second busiest January on record, second only to 2006. Our incident numbers are consistent with Lake Dillon Fire Rescue. We responded primarily to emergency medical incidents. There was discussion about Summit County Ambulance response to incidents. The Frisco/Silverthorne area has faster ambulance response than the Keystone and Breckenridge areas. Chief Green meets with Sean Caffrey on a regular basis to discuss response times and how our agencies can work together. The Ambulance Service stated that they will never be able to service the Blue River area to the same level as Frisco.

2. Intergovernmental Notes. Chief Green is meeting with the forest service on 2/16/07 to work on the annual operating plan for wildfire response. This is an agreement between the county, the fire districts and the forest service.

Chief Green met our new County Commissioner on 2/14/07. They discussed wildfires and wildfire mitigation, the communications center as well as other issues. They would like the RWB Board to meet with the commissioners during one of their upcoming work sessions.

Chief Green will get the Communications Center budget to the Board. The Communications Center needs to upgrade one of their towers, but they are having problems with property rights. The County is concerned about their ability to impose imminent domain and they feel the Fire Department is in a better position to do so. Chief Green met with the County Attorney and the County has other options that they have not explored yet. The Board advised Chief Green to keep the Fire Department out of the middle of this situation. Condemnation of the property by the Fire Department will severely hurt our image with the public.

We updated and resigned the mutual aid agreement with Lake Dillon Fire Rescue and Copper Mountain Metro District. Our relationship with the other fire districts in the County is good. Lake Dillon Fire has a mill levy rate that is similar to Red, White & Blue’s mill levy.

3. Permits / Plan Reviews / Inspections Fee Schedule Update. Currently, we have one of the highest fee schedules in the State specifically regarding construction permit fees. We are looking at other areas in the fee schedule that can be increased. The Board advised that any increases to the fee schedule be justified.

The adoption of the 2006 International Fire Code is forthcoming. We hope to adopt the new Code package in the spring of 2007. Areas of concern include the use of LP-gas grills on combustible balconies; dumpster enclosures being in conflict with the Town of Breckenridge dumpster enclosure policies; and residential sprinkler system requirements for single family residences of 6,000 square feet or larger. The Board feels that we should not reduce any of the Code requirements that pertain to grills.

4. Budget Finance Update. Discussion of these items is included in "Other Business."

7.0 Executive Session
M/S Greenly/Perkins—at 8:25 a.m. per C.R.S. 24-6-402(4)(a), items to be discussed noted on agenda, specifically,____________. Session ended at 8:50 a.m. M/S Perkins/Gothard.

8.0 Other Business
1. Status of the 2006 Audit. Pre-audit numbers were emailed to the board members.
We should have final audit numbers by March. Carmen will email the documents to Chief Green and Directors Gothard and Randall (the BOD Audit Committee) when she receives them.

Recap of the pre-audit: The accumulation depreciation was over-stated by approximately $200,000—this will be revamped. The selling/donating of apparatus was not recorded properly in former audits. Also, the land at the North Station will be recorded for 2006 after the quick claim deed processed this last December. There was discussion about the Summit Fire Authority property and whether it should be reflected on our statements or as a footnote. When the property is fully paid, then will it may be recorded as joint-tenancy. The same auditor has been hired to do the Summit Fire Authority audit, so we should be able to determine the best way to record these items.

There was discussion about our internal controls. Pat Lytle, auditor, recommended that we use a Positive Pay system with our local bank, where-by our bank only disperses funds that are approved. Our understanding is that there is no limitation on the number of payments that the bank will disperse. Ad-hoc payments would not be allowed. We could still have a petty cash account for these types of payments.

Currently, we write checks every week. The only change to our current system is that the board members would look at disbursements for abnormalities and approve payments prior to them being processed. Disbursements could be compared with actual budget numbers. The positive pay process could be done electronically and it would require participation from all board members. We could assign a weekly rotation to the board members, so it is not a huge impact on any member. Carmen will research this procedure with our bank. The Chief feels this would be a beneficial program for the Fire District to implement.

Pre-audit items of concern. 1. The compensated absences payout liability was run as a live transaction in the past. This is not compliant with GASB 34. We have to disclose and monitor the liability. 2. The principal interest allocation for our long-term debt was incorrect. Our liability is actually less. 3. Compensated absences and depreciation is not considered long-term debt.

2. Financials. Director Perkins requested an explanation on the debt service schedule. The $80,000 capital expense budgeted is for equipment to supply the new engine and two medic units and is not part of the future debt service on these units. Payments for the new engine and two medic units will go into debt service. The new copier at the Main Station is a continuation of the maintenance lease. Carmen will email the debt service schedule to the Board.

A compilation of the non-budgeted expenditures for 2006 was distributed.
♦ There was an approximate $29,000 difference in grant associated expenditures. This happens because grants are typically based on matching funds. Presently, we are writing grants for items that are included in our budget. In the past grant items were not budgeted.
♦ Additional election expenditures went over by approximately $3,000.
♦ Leave cash-in is not a budget line item—was approximately $6,000.
♦ The aerial ladder inspection was never billed in 2005. We received the bill in 2006 for $2,500.
♦ We paid $18,746 in 2006 for the acquisition of the utility truck (Dodge). We will pay approximately $18,000 in 2007.
♦ Six people left the District in 2006. Historically, we had a turnover rate of two people annually. When we have turnover, the District typically incurs extra costs (e.g. interview and testing process, uniform and equipment costs, etc.).
♦ Carmen reconciled the 2004 IRS penalties. Originally, the IRS had fees of $19,000 and she got it reduced to $2,100.
♦ The cost of fleet repairs was higher than anticipated for 2006 due the aging of our fleet. New equipment purchases should help reduce costs for 2007.

There is approximately a $25,000 - $30,000 differential for 2006 that needs to be made up.

The automatic external defibrillators (AED) are aging. We will be trading in the old ones and purchasing new ones. The cost to repair our current AED’s is very high. A new defibrillator costs approximately $12,000 - $20,000 depending on the features.

9.0 Consent
1. Resolution 07-02, Establishment of a Line of Credit. M/S ???

2. January 2007 Bills List. M/S Perkins/Gothard to approve. Voice vote unanimous, motion carried.

10.0 Adjournment
M/S Perkins/Gothard to adjourn February 15, 2007, Board of Directors Meeting at 9:00 a.m.. Voice vote, unanimous, motion carried.

Next Meeting set for March 15, 2007 at 7:00 a.m. at 316 N. Main St., Breckenridge.

Respectfully Submitted:

Wayne Randall, Secretary/Treasurer
Jackie Pike, Recording Secretary