HomeMy WebLinkAboutFebruary 27 2013 Minutes of Revenue Recovery Work Session256
A Work ,Session of the Frederick County Board of Supervisors and the Frederick County
Fire and Rescue Association Revenue Recovery Working Group was held on Wednesday,
February 27, 2013 at 5:00 P.M., in the Board of Supervisors' Meeting Raom, County
Administration Building, 107 North Kent Street, Winchester, Virginia.
PRESENT
Chairman Richard C. Shickle; Vice - Chairman Bill M. Ewing; Christopher E. Collins;
Charles S. DeHaven, Jr.; Gene E. Fisher; Robert A. Hess; and Gary A. Lofton.
OTHERS PRESENT
John R. Riley, Jr., County Administrator; Kris C. Tierney, Assistant County
Administrator; Jay E. Tibbs, Deputy County Administrator; Fire Chief Dennis Linaburg; County
Attorney Rod Williams and Revenue Recovery Working Group members: Chester Lauck,
Bab Hall, Dave Foley, Henry Shiley, Whit Wagner, Rodney Snapp, Don Jackson, Billy Rudolph,
Jeremy Luttrell, Roger Milburn, and Hans Nydam, and Fire and Rescue Association President '�
Tim Price and Perry Silva.
CALL TO ORDER
Chairman Shickle called the work session to oirder.
Administrator Riley advised the most recent Memorandum of Understanding had been I,
included in the Board's agenda packet. He noted the statement "not for debt service" in item 4F
was the paint of tonight's discussion. He noted the companies want to be able to retire debt on
equipment (e.g. ambulances) not bricks and mortar. He went on to say there are other pieces of
equipment that xespond to emergency calls as well. He concluded by asking is the point yes for
apparatus and equipment and no for bricks and mortar?
Supervisor Collins stated he preferred debt service for EMS licensed apparatus.
Don Jackson asked why the funds could not be used for bricks and mortar. He noted that
Gainesboro has alive -in firefighter program at its station and those employees provide basic life
support services.
Supervisor Collins responded that bricks and mortar might beano go for a lot of people.
Chief Lauck responded that items F &Gin the memorandum of understanding could
become one item. With regard to bricks and mortar, a process could be established, if needed, to
allow such requests to be approved by the Board of Supervisors.
Minute Book Number 38
Board of Supervisors Work Session with Fire &Rescue Association
Revenue Recovery Working Group Re: Revenue Recovery (Fee For Service) on 02/27/13
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Chairman Shickle stated fee fox service was a troubling matter for him until a majority of
the fire companies got behind the idea. He expressed concern thaf someone might come along
and obligate the projected revenue stream for something. He suggested not using funds for
bricks and mortar projects for at least two years to see how the program works.
Chief Lauck responded that he did not see ambulances as bricks and mortar.
Supervisor Collins stated that in order to get the program off the ground "we" are going
to have to look at the results for a certain period of time.
Administrator Riley stated if the parties could agree to excluding bricks and mortar and
allowing capital debt retirement for EMS vehicles for a period of two years, we could come back
and revisit the bricks and mortar portion.
Chief Jackson suggested not tying the requirement to only EMS licensed vehicles
because other vehicles are going out on calls toa, such as fire engines.
Chief Linaburg noted the best we can expect to recover is approximately 70% of the costs
incurred. He noted he did not see any excess revenue happening. He went on to say
Administrator Riley's compromise was right on track; however, he understood Chief Jackson's
concerns. He noted after recouping the expenses associated with emergency medical services
there would not be much money to go somewhere else.
Supervisor Callins stated he did not have a problem using the funds far debt service on a
vehicle.
Chairman Shickle stated he did nat want to sea the revenue stream pledged as a means of
retiring debt; however, once the money entered the company's coffers, he did not care how it
was spent.
Vice - Chairman Ewing supported Chairman Shickle's position. He went on to say that he
was look for accountability of the funds to see if adjustments were needed and if the program
was meeting the needs.
Whit Wagner believed that allowing the companies to use the funds to retire existing debt
was a good solution.
Bob Hall stated if funds remaining after expenses could be used to retire debt then that
would be acceptable.
Minute Boak Number 38
Board of Supervisors Work Session with Fire &Rescue Association
Revenue Recovery Working Group Re: Revenue Recovery (Fee For Service) on 42/27/13
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Chief Jackson agreed the companies should not pledge this revenue stream for new debt.
Administrator Riley suggested putting the words "of bricks and mortar" at the end of item
4F as a means of defining debt service.
Supervisor DeHaven stated he could go with where we are as a compromise, but he did
not think the funds should go to bricks and mortar. He went on to say the goal of the program is
to support itself. He noted it was good to accumulate money over time to replace equipment. He
concluded by saying if we da nat take a look at funding we will not know how it should be
adjusted.
Mr. Wagner was good with the compromise we have developed, which was to fund debt
service, except bricks and mortar far twa years.
Supervisor Fisher thought keeping the program basic, with the exception of bricks and
mortar, was a good place to start.
Chief Lauck stated "we are trying to control a revenue stream in which we do not know
the numbers and the number of zeroes after it." He went on to say it takes at least two years to
see what revenue the companies get. He noted that item 4G should include any items the auditor
would like to see with regard to cracking the funds.
Supervisor Lofton stated we are trying to recover expenses for emergency medical
services and he thought this would take some stress off of the companies' funds thereby freeing
up money for other things. He supported the compromise.
Supervisor Hess stated he was not for using the funds for debt service for bricks and
mortar unless approved by a process. He supported not pledging this income stream as
collateral.
Chief Lauck talked about joint responsibilities and the breakdown of revenue. He noted
the "gross" included consumables (e.g. billing company, program rrianager, and EMS supplies).
He went on to say the 50 -SO split should be put into the document. He stated item 4K should go
away because all of that becomes part of the gross costs recovered. He noted that item 4�G would
become part of dH, which would cover the audits.
Tim Price advised the amendments would have to go back to the Fire &Rescue
Association for review.
The consensus of the representatives from the fire companies was they wanted to review
the changes to the document.
Minute Book Number 38
Board of Supervisors Work Session with Fire &Rescue Association
Revenue Recovery Working Group Re: Revenue Recovery (Fee For Service) on 0212'7113
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There being no further business, the work session adjourned at 6:05 P.M.
Richard C. Shickle 'ley, Jr.
Chairman, Board of Supervisors erk, Board of Supervisors
Minutes Prepared By: �. `� '
Jay E. T bb
Deputy Clerk, Board of Supervisors
Minute Book Number 38
Board of Supervisors Work Session with Fire &Rescue Association
Revenue Recovery Working Group Re: Revenue Recovery {Fee Far Service) on 02/27113