Sedona AZ (April 19, 2012) — Following are excerpts from Minutes of the April 9, 2012, Sedona Fire District (SFD) Budget Workshop and analysis. Minutes are in Draft form, not yet accepted formally by the SFD Governing Board. Where minutes are quoted verbatim, quotation marks will be used. Audio and Video Transcripts appear in full on the Sedona Fire website.
Scott Jablow – Midway/Chapel Area: “I’d like to say that I was unable to attend last week’s budget workshop, but read the published Minutes. I was very impressed with Chief Kazian’s report. For the short time that the Chief has been in town, with the help of his great staff, it appears he understands the budget concerns of everyone and has his finger on the pulse of this organization.
“I’m not surprised that he also communicates this knowledge very clearly and simply so that lay people can understand the seriousness of what SFD is facing for years to come. During this Board’s tenure, it’s not been a secret that the Board hasn’t trusted any of the SFD staff which has caused so many of them to leave.
“Over the strong and vocal and most often, heated criticism of the community, this Board has felt the need to spend over $38,000 so that the Board could have a Chief that you could all trust. Now, when faced with our new Chief’s logical explanation about the mil rate, one Board Member still has a problem accepting the proven facts given by the Chief that you’ve all just hired.
“On page 6 of the Minutes of last week’s budget workshop, there was discussion and recommendations of what to do with the mil rate and Mrs. Erick stated, this is a quote, this is a quote… I understand this is a quote: ‘This is the way I have seen it ever since former-Business Director Karen Daines presented it that way. I did not buy it then, and I do not buy it now’ – direct quote from your Minutes.
“I have real concerns about this Board Member’s statement. If all these professionals and highly educated people including your newly hired Chief have explained the reasons to raise the mil rate, clearly and concisely, and this Board Member still fails to buy it, I think that the taxpayer in the district deserves to know why she feels that way, and what functional information does she have to prove otherwise.
“Mrs. Erick…” At this point, Chairman Blauert explained there are no comments between the Board and public and they will not debate. Mr. Jablow: “I’m not debating. I’m giving her the courtesy. I expect the same. I don’t believe that this Board Member has any formal financial degrees or background or else she would proudly state that information at either of the two candidate forums that I have attended the past few weeks. Or, it would be posted on the SFD website.
“And, yet, when faced with facts by professionals, she doesn’t buy it then and doesn’t buy it now. This Board Member fills an elected position and represents the community. I think she is duty-bound to explain why she doesn’t buy it or her lack of understanding of the topic. She should present her educated reasons for her distrust of so many professional opinions.
“These comments are my own and do not represent any of the organizations, City Boards, or Commissions in which I participate. Thank you.”
Rich Collister – West Sedona: “I’d like to thank the new Chief for his last budget presentation. It was very informative. The material and the predictions sound right on. It seems that Chief Keller and Karen Daines did a similar workshop with nearly the same information and predictions in their workshop a few months ago. It seems that the experts – you Chief, Chief Keller, Karen Daines – all agree on where the Sedona Fire Department stands regarding the budget.
“It appears that the ones who don’t agree are the non-experts who sit up on the Fire Board, and this is reflected in a statement by Ms. Erick, one that was quoted already, it’s in the Minutes – ‘I didn’t buy it then and I’m not buying it now.’
“I know that she has an important job of scheduling appointments for a doctor’s office; however, that job pales in comparison to having the knowledge and expertise in setting an operating budget for an organization which protects life and property.
“And Mr. Blauert, when McGladrey first got here, and arrived here to give their initial report about the audit, you exclaimed, we can now lower the mil rate. Seriously, Dave? It shows a complete lack of understanding and knowledge regarding the Sedona Fire District.
“And a word about the McGladrey audit, $190,000 piece of dog dirt. Three empty suits from McGladrey with no knowledge of fire operations… Mr. Blauert warned Mr. Collister he was ‘pushing it.’ Mr. Collister: I’m talking about McGladrey, I’m not talking about you.
“Board Clerk Christensen commented McGladrey has fire service experience and it is in their report. Mr. Collister said he saw nothing about knowledge of fire operations; Mr. Christensen stated he would show him later.
“Mr. Collister: It’s my opinion and I have a right to my opinion. I am a taxpayer. Three empty suits from McGladrey with no knowledge of fire operations give a report to unknowledgeable Board Members who know nothing about fire operations in the district they govern over. You could have saved $190,000 by listening to your own experts like the Chief and the Business Director of the Sedona Fire Department and you know, if that wasn’t so pathetic, it would be funny.
“So, thank you, Chief and I’d like to thank the members of the Sedona Fire Department.”
____ end of public comments
“Chief Kazian said the proposed budget is $12,323,151 including a Training Officer and hiring one of the three current vacant Firefighter positions, and start-up costs for the Reserve program; it does not include capital projects such as moving dispatch, upgrades to dispatch, or building a Midway Station; it deletes many of the vacant positions formerly held in the past budget.
“Additionally, the proposed budget maintains the General Fund (Fund Balance) which is the 15% allocation directed by Board Policy #2008-1.
“He recommended a $1.65 mil rate which gives proposed taxable revenue of $8 million and with additional revenue received through ambulance billing and other fees, gives $10,418,000 with appropriation of $1.904 million from the capital reserves leaving a balance of $2.1 million in reserves….
“Chief Kazian said the budget is projected out at 3.85% to 4% increase annually, which does not include huge capital expenses such as a Midway Station or dispatch. He stated if SFD goes to a $1.65 mil rate, in Fiscal Year 2013/2014, staff would most likely be asking for $1.91 mil rate taking the balance of the capital reserves and adding it to come up with the proposed budget.
“He said the following year in Fiscal Year 2014/2015, SFD would have to go to $2.63 mil rate and no capital reserves to carryover, which makes a very large tax increase for our residents to meet the projected budget….
“Chief Kazian stated he is not here to debate whether an increase in the mil rate is or is not a tax increase, but the costs to operate SFD have not gone down – fire trucks, ambulances, energy, etc. all cost more. He said the mil rate is a multiplier that provides SFD with tax revenue necessary to operate efficiently and effectively. He said he has heard individuals say they cannot afford to pay more in taxes; that is why staff is trying not to raise the true dollar amount SFD charged citizens last year and wants to keep it as close to the same amount as possible.
“Chief Kazian said regardless of semantics, SFD is dollar for dollar….”
“Chief Kazian stated he would prefer to incrementally raise the mil rate to get where SFD needs to be, rather than necessitate a huge increase for our citizens at once….”
“Chief Kazian …said we must identify what exactly is a core service and if identified as not being able to maintain, what are we willing to cut? He then restated his commitment, as follows: ‘I’ve been hired by you the Board to run as Fire Chief of Sedona. I am making you that promise that I spoke of earlier, that I will now and forever operate with fiscal responsibility and dedication to maintain the services we do have here in Sedona. I have a job as a Fire Chief and that’s to provide effective fire and EMS services for everyone, maintain sound business practices, and have a staff that’s appropriately sized to handle the office part of the job. It’s your job as the Board to see that we make sure we are operating with the necessary tools and the resources needed to be effective.’”
“SFD is 46% leaner in taxes than a few years ago; he asked can we continue to operate that way losing, losing, and losing?”
“Mrs. Erick commented for FY 2012, people should be told there was contingency included; Mr. Dible said the budgets on the handout are not what was actually spent, but rather, was given to the county as budgeted. Chief Kazian also asked the Board to recall that the $15.9 million budget in FY 2009 included millions of dollars allocated for capital projects so that number looks inflated as well, just as Mrs. Erick mentioned for this year’s budget.
“Mr. Dible asked if SFD had spent $11.2 million of the current budget of $13.28 million. Chief Kazian replied as of 3/31/12, the current budget is at $7.6 million spent year to date; Finance Manager Sandi Schmidt stated she believes SFD is on-target to spend $11.2 million, but that amount has not been yet been spent. Chief Kazian said we are at 59% spent of the budget with 75% of the fiscal year completed, and some is contingency, although the $190,000 paid for the McGladrey report has been removed from contingency; Mr. Dible commented it appears we will have spent $11.2 million of the $13.2 million at the end of the fiscal year; Chief Kazian said staff is estimating $4 million carryover in capital reserves at the end of this fiscal year….
“Mr. Christensen asked why we are not using the capital reserves; Chief Kazian replied any unspent dollars, such as savings in overtime, get rolled over into the capital reserve fund at the end of the fiscal year, and staff is making an educated guess that it will be approximately $4 million. Mr. Christensen said as a taxpayer and for his constituents, he believes SFD is holding a lot of money in reserve that is the taxpayers’ and he does not ‘like this picture’ with that much money in capital reserves; Chief Kazian said he appreciates that and looking at the graph going back to 2009 when SFD was at $15.9 million, we have been systematically “chipping away” at reducing it and, as stated, in two years, we will have none….”
“Chief Kazian said what must be decided is the mil rate and the amount of capital reserves to be taken; he said that decision could be postponed until another budget workshop before the April Board meeting. Mr. Montgomery moved to include a discussion/possible action agenda item for the budget and the mil rate for the next Board meeting; Mr. Dible seconded. Mr. Dible asked about including another Budget Workshop ahead of the April Board meeting to answer any final questions; he suggested possibly having the Workshop beginning at 4:00 PM before the April meeting; Mr. Montgomery amended his motion to have the Budget Workshop at 4:30 PM on the day of the April Board meeting including discussion and possible action on the budget and mil rate. Mr. Blauert requested another amendment to the motion because if an executive session is needed, he prefers to have that before the Workshop so the public does not have to wait. Chief Kazian said he believes there was an Executive Session item tabled from the last meeting that would be carried over; Mr. Dible agreed there was one issue. Mr. Montgomery re-phrased his motion to hold an Executive Session at 4:30 PM, Budget Workshop at 5:00 PM, with Business meeting to follow at 6:00 PM on Wednesday, April 25, 2012, including an Agenda item for discussion and possible action for the Fiscal Year 2012/2013 budget and associated mil rate; Mr. Dible seconded the amended motion, which unanimously passed at 5 to 0.”
SFD Armageddon Questioned
Greetings,
This is a very important election, but perhaps not for the reasons those who wish to fill the recalled member seats suggest.
From the 4/13/11 budget meeting “In 2002, the budget had reached $6.6 million, and rose to $15.9 million in 2009.” The budget soared as two firefighters wives were on the SFD Board and property values rose. They made sure every incoming tax dollar was spent. Ask yourself, did your income go up 240% during that period?
You hear cries of “Armageddon”, and from then “Chief” Hazime in the SFD budget workshop of 4/13/11 “In my professional opinion, this reduction of $2.5 million from the annual budget could cause the loss of life and property within the Sedona Fire District.”
In that same meeting then “Chief” Hazime said “The Board neither commissioned nor requested any form of study or cost-benefit analysis. Therefore, the Sedona Fire District Governing Board must obtain an expert professional Fire Administrator to justify its position with an opinion and study of the $2.5 million budget reduction without exposing the community to unreasonable risk and reduction of services.” Does this sound like someone who is cooperating with the Board?
Hence, the McGladry report. This is the same report that Hazime essentially forced the board to undertake and Hazime now along with Cooperman and Schoen are saying was a waste of taxpayer money. This same report that suggested actions that would result in millions of additional savings.
The other platform of Hazime, Schoen and Cooperman is the current board’s “excessive” legal fees. I have not done an exact accounting, however some of the not budgeted legal fees were accrued due to Hazime’s quitting SFD, some were due to the search his replacement and the most amazing thing to me is a citizen of SFD can contact the SFD attorneys and bill it to SFD. Some of the most vocal critics of the current SFD board were also the biggest citizen users of the SFD attorneys.
Other background on Cooperman and Schoen, they both want a new station in the Chapel area, and they both live in the Chapel area. The same chapel area that is less than 4 miles from 2 SFD stations.
It only takes 3 Board members to vote for consolidation with another fire district. As Hazime is chief of Verde Valley Fire, if Sedona consolidates with Verde Valley Fire you could see the mil rates, which are the tax rates “equalized.” If Sedona FD rates of $1.40 per thousand of assessed valuation were matched to the Higher Verde Valley Fire rate of $2.40, just like magic, your taxes for the fire district go up 71%. A fireman, Hazime on the board, and just like the old days of 2002-2009, your taxes could go up. Hazime might even end up chief of the new district, wouldn’t that be lucky for him. Or maybe planned. You decide.
It is my firm belief, that Hazime, Cooperman and Schoen will lead to higher taxes.
There are still lots of excess staff and waste at SFD. Many cuts can be made before you get to the line fire fighters.
Keep in mind the Jerome AZ fire department has 1 full time paid employee, their Chief, and he responds to calls just like the volunteers.
SFD has 107 full time employees, 15 of those are Captains, 54 are line engineers, EMT’s and fire fighters. What do the other 38 do? I’ve asked, I don’t think anyone but the person themself really knows. Three senior management staff have quit, I don’t think they are missed. One other point, the SFD board, by law, can only talk to the SFD Chief. Only the Chief and hire and fire.
Look at the facts, vote wisely.
Tony Tonsich
Bear in mind, when the budget reached $15 million, capital improvements were included.
Also, “consolidation” is not on the table for any northern Arizona districts.
I have been watching this issue for some time. I have worked in many nonprofits under Boards of Directors. I know that Boards can be difficult, especially when the members do not fully understand why they are seated on such an entity. I have to say I think the three Fire Board members being recalled who, instead of supporting the Fire Chief’s administration, mistakenly believed they were expected to micro-manage already trained, educated and experienced fire service professionals. The McGladrey Audit confirmed for me that these people needed to be relieved of their positions. Since when is it ethical, nevermind that the organization had no experience with fire services, to hire a Board members’ wifes’ employer as a consultant? I’ll answer that myself. Never.
Verde Valley Fire has openly discussed consolidation in their recent 2012 board meetings. They have approached Clarkdale and have had several meetings and serious conversations with Montezuma RimRock regarding consolidation. Matt Robertson, a Clarkdale Fire Captain, and ex-SFD employee and current VVFD board member, has been on record presenting the issue and naming the surrounding agencies he has approached.
Sedona Fire, when Caryn Maxwell was sitting on the board and while her husband was a battalion chief and her son an engineer for SFD, catered consolidation discussions as well. All of which are documented in board minutes.
With the very real possibility that Verde Santa Fe will be annexing out of VVFD coverage, VVFD is facing the potential of huge revenue loss from the property tax in that housing development. VVFD is left with trying to find alternative sources to generate an income to support their budgetary needs and one of their solutions, as is openly being discussed in their board meetings where Nazih Hazime currently reigns as Chief, is consolidation.
“Chief Kazian …said we must identify what exactly is a core service and if identified as not being able to maintain, what are we willing to cut?”
As a member of the public, I question the administrative and other retained staffing and their relation to Chief Kazian’s definition of “core service.”
Five personnel assigned to Finance – when scheduling is handled by Telestaff and payroll is outsourced to ADP. Telestaff has to be signed/checked of/confirmed by authorized users (ie: battalion chiefs, captains, comm. supervisors, or other mid- to high-level supervisor) as to the actual personnel present and in attendance for each shift on each day’s rotation – this information is exported to ADP who runs and issues the payroll. Other than Ambulance Billing person, what do the other four do during their 40 hours each week? Why can’t the question of “what do they do,” be readily and easily answered or even answered at all?
Why is it that SFD needs to retain such high staffing of mid-and high-level supervisors? Can’t a Chief, or Assistant Chief make the rounds or at least phone to the Stations to ensure the actual staffed personnel present each day? Black Canyon Fire Chief responds to calls, Jerome Fire Chief (the only full time paid representative) responds to calls, Mayer Fire Chief responds to calls, Cottonwood Fire Chief responds to calls – what run cards are the SFD Fire Chief on that calls for a response and has him respond to? When was the last time that the SFD Fire Chief was dispatched and responded to a call?
Sedona Fire has become an extremely top heavy organization. If the Fire Chief and Assistant Chief don’t respond to calls or sign off on timecards, other than attend meetings, what do they do? What exactly did the business director do? How is it that the SFD organization needed an HR and an HR assistant? You can’t walk into the Admin side of SFD Station 1, throw a stone and not hit someone who is just milling around.
The communications center has 3 people staffed 18 out of the 24 hours each day in comparison to other dispatch agencies who have twice the volume of incoming emergency calls, have twice the volume of dispatched calls and retain half the staffing that SFD requires. Their provided call statistics reflect that incoming emergency calls that are dispatched are two per hour. The comm. center retains FIVE supervisors for NINE subordinates – that is a 1:1.8 ratio for their span of control. SFD invites you to drop in there sometime and see for yourself.
Along the lines of span of control and on the topic of “Core Service”, Station 5 up in the Canyon is staffed with two personnel, one of which is an engineer and the other being a Captain! A 1:1 supervisor to subordinate ratio? Are these “proud professionals” unable to be responsible enough to maintain a station and answer to a Captain at remote station? These “professionals” need a Captain full time to babysit them at a station where call volume is such a small percentage of the total calls generated in SFD? Mayer Fire staffs two stations and only one Captain is on duty per shift. How many Captains are needed at Station 1 per shift, per day? Currently there are two – just call and ask.
Speaking of small percentages – 85% of the emergency calls generated in Sedona are EMS related and the actual Fire calls are of such small volume that they have to be combined with three other call/incident types. Other surrounding agencies are able to identify when a BLS (EMT – Basic Life Support) call can be handled by a BLS unit and utilize minimal apparatus for a response accordingly however no matter what the call is in Sedona the minimal apparatus sent is one engine and one ambulance, and why is it that the Paramedic sits on the Engine and not the Ambulance?
“Chief Kazian …said we must identify what exactly is a core service and if identified as not being able to maintain, what are we willing to cut?” With all the information and documentation being provided by SFD on their website and easily verified, I question why there is such difficulty in finding the identified areas that are able to be distinguished as a “core service” and what is “superfluous staffing.”