MOHAVE COUNTY BOARD OF SUPERVISORS MOHAVE COUNTY ...

MOHAVE COUNTY BOARD OF SUPERVISORSMOHAVE COUNTY, KINGMAN, ARIZONAREGULAR MEETING – JULY 21, 2008The Board of Supervisors of Mohave County met in Regular Session this 21st day of July, 2008,at 9:30 A.M, at 700 W. Beale Street, Kingman, Arizona, in the BOS Auditorium. In attendancewere Pete Byers, Chairman; Tom Sockwell, Supervisor District 2; Buster D. Johnson, SupervisorDistrict 3; Ron Walker, Mohave County Manager; Deborah Herbert, Civil Deputy CountyAttorney; and Barbara Bracken, Clerk of the Board.The meeting was called to order, and the invocation given by Chairman Byers. The Pledge ofAllegiance was led by Supervisor Johnson.The following Mohave County Elected Officials and Department Heads addressed specific itemsas noted: Tom Sheahan, Mohave County Sheriff; Susie Parel-Duranceau, Community andEconomic Development Director; John Timko, Financial Services Director; Lee Fabrizio,Mohave County Treasurer; and Cindy Cox, Accountant – Treasurer’s Office.Motion was made by Supervisor Sockwell, seconded by Supervisor Johnson, andunanimously carried to call for an Executive Session to be held August 4, 2008, at 9:00A.M., for discussion and consultation with legal counsel in accordance with A.R.S. 38-431.03 (A) (3) & (4) to discuss items noticed on the agenda with an asterisk.ITEM 2: No Committee and/or Legislative Reports.ITEM 3: No County Manager’s Report.ITEM 4: Motion was made by Supervisor Sockwell, seconded by Supervisor Johnson, andunanimously carried to approve the June 2 and 16, 2008, Board of Supervisors MeetingMinutes as most recently drafted.Sheriff Sheahan stated that he takes great pride in being Sheriff of Mohave County when he isable to recognize exemplary actions by its employees. He stated that employees take exemplaryactions everyday, but there are those that stand out above and beyond the normal course of duty.He presented Lifesaving Awards to Shelly Wolsey, 911 Senior Public Safety Dispatcher; MelvinShane Thompson, Denny Gaddis, Melvin Shane Thompson, and Adrian Morrison, DeputySheriffs. He presented Valor Awards to Randy McNally, Sergeant Detective, Charlie Larison,former Mohave County Detective; and Doug Schuster, Sergeant.The audience joined the Board in a round of applause.Chairman Byers recognized the attendance of Lake Havasu City Mayor Nexsen, and CouncilMember David McAtlin.Director Parel-Duranceau advised she would like to take this opportunity to present those peoplewho make the Coyote Youth Summer Program happen. She stated that this program is one of thebest practices in the State, and is used as a model by many communities. She advised that theywould be presenting awards to the participants in Lake Havasu City and Bullhead City. She

REGULAR MEETING PAGE 2 JULY 21, 2008introduced her staff, Terry Baughn, Lauren Farshler, Jackie Gates, and Jen Miles, who would bepresenting awards to the outstanding Leaders of the Pack, who are contributing to the program.She advised that Supervisor Johnson and Supervisor Sockwell would be assisting staff in thepresentation of awards in their districts.Leader of the Pack Awards were presented to Lake Havasu City, WalMart – Lake Havasu City,and Sunwest Xpress Seadoo.Certificates of Outstanding Performance were presented to the following Lake Havasu CityYouth: Amanda Brown – Interagency Council; Sarah Brown, Western Arizona Humane Society;Fabrizzio “Edge” Dransfield, LHC Parks & Recreation; James Fernando, Western ArizonaHumane Society; Chad Fox, LHC Parks and Recreation; Jaffe Llorente, UniSource EnergyServices; Azriel Ortega, LHC Parks & Recreation; Grace Ortega, Convention & Visitor’s Bureau;Rullie Jean Piojo, Mohave County Environmental Health; Braulio Ruelas, LHC Parks &Recreation; Isabel Ruelas, Evergreen Home Loans; D. J. Rule, LHC Parks & Recreation; LadelRule, Mohave County Health Department; and Kayla Scherr.Certificates of Outstanding Performance were presented to the following Bullhead City Youth:Melissa Carlson, Mohave County Probation Department; Wynona Carlson, Mohave CountyProbation Department; Litzia Cortez, Mission Bank; Veronica Doyle, Mohave County Library;Danny Escalera, BHC Human Resources; Crystal Fernandez, Mohave County HealthDepartment; Paula Mestas, Silly Cactus; Cal Morris, Superior Court; Christa Rocha, Lowe’s;Katie Smith, BHC Finance Department; and Kyle Willden, SunWest Xpress Seadoo.The audience joined the Board in a round of applause.Motion was made by Chairman Byers, seconded by Supervisor Johnson, and unanimouslycarried to approve the Consent Agenda minus Items 32, and 48, as follows:5. Approve a new Liquor License for Kayla Jaye Jankowski, dba A Welcome Stop, 19210 N.Hwy 93, White Hills, Arizona, Series 10.6. Approve an Interim Permit/New Liquor License for Brittany Marie Pennington, dba YoYo’s Tacos, 4310 Hwy 95, Unit A, Fort Mohave, Arizona, Series 12.7. Approve a New Liquor License for Lauren Kay Merrett, dba West Canyon Chevron, Hwy93 & Pierce Ferry Road, Dolan Springs, Arizona, Series 10.8. Approve a New Liquor License for Shantel Marie Alanis, dba PJ’s Stop N Go, 3542 W.Aqua Fria Drive, Golden Valley, Arizona, Series 10.9. Approve a Temporary Extension of Premises/Patio Permit for Nancy Jean Estenson, dbaLake Mohave Ranch Club Restaurant and Lounge, 16097 Pierce Ferry Road, DolanSprings, Arizona, for September 12, 13, & 14, 2008.10. Approve the appointment of the following Democratic Precinct Committeemen: JeffreyMartin and Raquel R. Martin, Southwest Kingman (17); Patricia J. Boyd, East Kingman

REGULAR MEETING PAGE 3 JULY 21, 2008(19); and Jo Ann Fitzwater, Roadrunner (70); as requested by the County Chair of theDemocratic Central Committee.11. Approve the appointment of the following Republican Precinct Committeemen: MichaelA. Roundy, Hualapai (15); and Wilma Jean Bishop, Chloride (4); as requested by theDistrict Chair of the Republican Central Committee.12. Authorize the QuadState Local Governments Authority to represent the interests ofMohave County at meetings of the Management Oversight Group (MOG); and authorizethe Chairman of the Board to sign a letter to Robert Williams of the U.S. Fish andWildlife Service advising of said representation.13. Authorize approval of the 2008/2009 Lease Agreement between Lake Havasu City andthe Mohave County Attorney’s Office for office space within the Lake Havasu City PoliceDepartment for $4,158.00 per year, payable in quarterly installments of $1,039.50.14. Approve the FY2009 Byrne/JAG Grant Agreement (24710200), as requested by theMohave County Attorney’s Office.15. Approve the Arizona Automobile Theft Authority 2008/2009 Vertical Prosecution Grant(25410200), as requested by the Mohave County Attorney’s Office.16. Approve the proposed settlement of SAFEWAY, INC., v. Mohave County, TX2006-000011property tax valuation appeal. This settlement provides for a reduction in the full cashvalue of these commercial parcels located on Stockton Hill Road in Kingman from$4,228,156.00 to $2,358,827.00, resulting in an estimated tax reduction of $32,900.70(from $74,417.00 to $41,516.30) for the 2007 tax year.17. Approve moving the current poll site for Punto De Vista (Precinct 25) from Bullhead CityFire Station #3, 3560 McCormick Blvd., Bullhead City, Arizona, to the Sunridge VillageAssisted Living and Retirement Home, 239 Landon Drive, Bullhead City, Arizona,effective with the September 2, 2008, Primary Election and continuing for all futureelections.18. Approve calling for a special meeting of the Board of Supervisors to be held onSeptember 11, 2008, at 9:00 A.M. to canvass the September 2, 2008, Primary Election, inaccordance with 16-645.19. Approve the request for assistance in conducting the September 2, 2008, special electionsby: City of Lake Havasu – 3 Council Members; and approve the requests for assistance inconducting the November 4, 2008, special elections by: Beaver Dam/Littlefield FireDistrict – 2 Board Members, Bullhead City Fire District – 3 Board Members, ColoradoCity Fire District – Fire Chief and Secretary/Treasurer, Desert Hills Fire District – FireChief and Secretary/Treasurer, Fort Mojave Mesa Fire District – 3 Board Members,Golden Shores Fire District – Fire Chief and Secretary/Treasurer, Golden Valley FireDistrict – 3 Board Members, Grapevine Mesa Fire District – 3 Board Members, LakeMohave Ranchos Fire District – 2 Board Members, Mohave Valley Fire District – 2 BoardMembers, Northern Arizona Consolidated Fire District #1 – 3 Board Members, Oatman

REGULAR MEETING PAGE 4 JULY 21, 2008Fire District – 2 Board Members, Pine Lake Fire District – 2 Board Members, Pinion PineFire District – 2 Board Members, Yucca Fire District – 1 Board Member, MohaveCommunity College Bond Issue, Community College District #1 – 1 Board Member – 6year term, Community College District #3 – 1 Board Member – 6 year term, CommunityCollege District #5 – 1 Board Member – 2 year unexpired term, Havasu Heights DomesticWater Improvement District – 2 Board Members, and City of Lake Havasu City – 3Council Members.20. Authorize the commencement of eminent domain action against Bill Evans to acquirecertain right-of-way needed to build a new bridge spanning the Beaver Dam Wash onMohave County Highway 91; and authorize the retention of the law firm of Miller andKramer to represent the County in such action.21. Approve acceptance of award from the State of Arizona, Office of the Attorney General,in the amount of $31,375.00 for the Victim’s Rights Program (81123901) for FY 08/09, asrequested by the Mohave County Sheriff’s Office.22. Approve the hiring of Carl Simonsen as a Detention Officer for the Mohave CountySheriff’s Office, in accordance with Merit Rule 201.B, employment of relatives.23. Approve revised budget for FY 2009 Fund 87450853 to increase funding from $0 to$141,480 for the purchase of a pumper/rescue truck for the Hualapai Valley Fire Districtunder CDBG 140-07, based on the unexpected delay in the delivery of the truck in thisfiscal year.24. Adoption of BOS Resolution No. 2008-233 – Approving an Intergovernmental Agreementfor Contract #DE081295001 between the State of Arizona Department of EconomicSecurity and Mohave County for the receipt of the partial grant funding for PY08/FY09Workforce Investment Act Youth and Adult funds in the amount of $797,453 for contractperiod April 1, 2008 through June 30, 2011; and approve the revised PY08/FY09 budgetsfor 88589441 (decreased by $3,107 from $10,169 to $7,062); 88589442 (increased by$3,108 from $30,508 to $33,616); 88589445 (decreased by $20,751 from $84,305 to$63,554); and 88589446 (increased by $20,751 from $281,792 to $302,543).25. Approve the Monthly Report for Procurement Activity between $10,000 and $35,000.26. Approve Amendment No. 2 to Contract No. 07-B-19 with Copperstate Pavement Productsfor Asphalt Cold Patching Material, extending the current Contract for an additional oneyear period, from September 17, 2008 through September 16, 2009, on behalf of thePublic Works Department – Roads Division.27. Approve extension to Contact No. 07-PS-13, Job Order Contracting (J.O.C.) Services forFlood Channel Maintenance, with (-01) Sunland Asphalt, (-02) Stockbridge Northwest, (-03) Turnquist Excavating, and (-04) FHI Plant Services, for an additional one year period,from September 17, 2008 through September 16, 2009, on behalf of the Public WorksDepartment – Flood Control Division.

REGULAR MEETING PAGE 5 JULY 21, 200828. Approve award of Contract No. 08-B-09, Kingman Courthouse Remodel, to ShannonConstruction, Phoenix, Arizona, in the total contract amount of $686,000.00; anddesignate the remaining budgeted amount of $26,000.00 as Owner-Directed ProjectAllowance for fire and smoke equipment, on behalf of the Public Works Department –Facilities Management Division.29. Approve extension of Contract No. 07-B-03, Soil Stabilizer (SOILSA), with (-01)Earthcare Consultants, and (-02) Sunland Asphalt, for an additional one year period fromJuly 7, 2008 through July 8, 2009, on behalf of the Public Works Department – FloodControl Division.30. Approve award of Contract No. 08-B-08, Structural Demolition of former Mohave CountyLake Havasu City Senior Center, to Dave’s Construction Service, Gilbert, Arizona, for atotal contract amount of $54,443.10, and designate 50% of the contract amount, or$27,221.55 for use as Owner-directed contingency, on behalf of the Public WorksDepartment – Facilities Management Division.31. Approve award of Contract No. 08-P-06, Janitorial Services in Lake Havasu City, toSpruce Goose Cleaning Company of Lake Havasu City in the amount of $4,500.00 permonth, for an initial contract period of one year, with four one-year options to renew.33. Approve acceptance of a $5,000 donation from Kingman Regional Medical Center toassist in providing drug prevention services to the Kingman area; and approve the revisedbudget, as requested by the Mohave County Department of Public Health.34. Approve award of Contract No. 08-P-05, Detention Food Services, to Compass GroupNorth America, Charlotte, North Carolina, for an initial contract term of one year, fromJuly 22, 2008, through July 21, 2009, on behalf of the Mohave County Sheriff’s Officeand Probation Department. It is anticipated that inmate food expenditures for the currentfiscal year will be approximately $718,000.00 for adult inmates and $42,493.00 forjuvenile inmates.35. Approve Amendment #10 to Contract No. HG354356 with the Arizona Department ofHealth Services for Tobacco Education and Prevention (225-04-5125), and approve therevised budget.36. Approve Amendment #1 to Contract No. HG861115 with the Arizona Department ofHealth Services for Folic Acid Services (243-04-5126).37. Approve Amendment #1 to Contract No. HG861140 with the Arizona Department ofHealth Services for the Commodity Supplemental Food Program (233-04-5150).38. Approve Amendment #6 to Contract No. HP461413-005 with the Arizona Department ofHealth Services for the Community Health Nursing Program (230-04-5115), extending thecontract through June 30, 2009.39. Approve the revised budget for the WACOG Program (815-05-6310) to increase fundingby $5,000.00, as requested by the Mohave County Department of Public Health.

REGULAR MEETING PAGE 6 JULY 21, 200840. Approve and authorize the Chairman to sign, on behalf of the Board of Supervisors, asGrantee, the State of Arizona Land Department Right-of-Way documents, in accordancewith Memorandum of Understanding with Henry Varga, General Partner, Prairie HeightsEstates, LLP for right-of-way on North Bank Street and Calle Santa Fe for access to landof Prairie Heights Estates, to be held in perpetuity for public access purposes.41. Approve Change Order No. 2 to the Contract with McCormick Construction Co. for ValleVista – Concho Drive Box Culvert Extensions, Project No. MC07-161, Contract No. 07-B-18, to adjust quantities used to actual, and extend time to coincide with this changeorder. The Contract Amount for this Change Order will be decreased by $27,242.00 andthe Contract Time will be increased by 33 calendar days for project close-out; andauthorize staff to sign Certificate of Final Acceptance.42. Adoption of BOS Resolution No. 2008-234 - Amending the property descriptionreferenced in BOS Resolution No. 2008-159, whereby the Mohave County Board ofSupervisors, on behalf of Mohave County (Grantor), authorizes the conveyance of a stripof land to Michael T. Black, TAZ Properties, LLC (Grantee), being 15.00 ft. in width,parallel with the south property line of TAZ Properties, LLC, situate in a portion ofGovernment Lot 4, Section 32, Township 40 North, Range 16 West, G&SRM, and beinga portion of Old U. S. Highway 91, providing more area for a safer access to TAZProperties. The property is situated north of Fairview Mobile Home Estates, Tract 3102,between Old U. S. 93 and Interstate 15, joining the Arizona-Nevada State Line.43. Sitting as the Board of Directors of the Greenwood Village County ImprovementDistrict: Accept petitions for adding additional property to include parcels 353-34-001,353-19-016, 353-31-021, 353-31-022, 353-31-023, 353-31-024, 353-31-032, 353-31-033,and 353-30-036 to the existing boundary of the District; and set a Public Hearing forAugust 18, 2008, concerning this matter.44. Authorize an Application for Federal Assistance and an Assistance Agreement(AAA080017) with the Bureau of Land Management for the provision of $20,000 to theCounty for the Wildland Urban Interface Initiative and the Mohave County CommunityWildfire Protection Plan (MCCWPP) to implement mitigation and defensible spaceprojects identified in the MCCWPP; and designate the County Manager as the authorizedagent for the Agreement and Application.45. Approve the lease agreement between Heritage Professional Services and the ProbationDepartment for a twelve month term, at a monthly rate of $650.00 per month, effectiveJuly 1, 2008, with four one-year options to renew.46. Sitting as the Board of Directors of the Mohave County Television ImprovementDistrict: Approve Contract No. 08-P-09, Maintenance Service for Mohave County TVTranslator System, with WECOM, Inc., Kingman, Arizona, in the amount of $194,939.28for a one year period, commencing July 21, 2008, through July 20, 2009, with four oneyearoptions to renew.47. Approve the appointment of Jeanne Kentch to the Local Drought Impact Group (LDIG),as a representative for Supervisorial District 3.

REGULAR MEETING PAGE 7 JULY 21, 2008ITEM 32: Motion was made by Chairman Byers, and seconded by Supervisor Sockwell toapprove award of Contract No. 08-B-07, Legal Advertisements and Publications, to theBullhead City Bee, Bullhead City, Arizona, in the amount of $2.18 per columnar inch, plusapplicable tax for legal advertising and publication and such other amounts for displayadvertising, classified box line advertising, and non-legal advertising in the News section ofthe newspaper as is set forth in the Bullhead City Bee’s bid, for the period of August 1, 2008through July 1, 2009.In response to Chairman Byers, Thom McGraham, Bullhead City Bee, advised that he had nofurther information to add.Motion carried unanimously.ITEM 48: Motion was made by Supervisor Johnson, and seconded by Supervisor Sockwellto discuss approving a transfer from the General Fund Contingency to departments tocover expenditures in excess of budget.Supervisor Johnson advised that the backup was received late, and questioned if there was anyline item detail available for the departments that ran over budget.Director Timko advised that the backup was late in order to allow staff to get an accurate numberon how far over budget the departments were. He stated that the Moccasin Justice Court wasover budget due entirely to overtime, which had not been budgeted. He advised that as a result ofthat overtime, revenue in excess of the budget was generated. He stated that the Kingman JusticeCourt was over budget due to overtime and health insurance costs; however, extra revenue wasgenerated by that court. He advised that Lake Havasu City Justice Court was over budget due tohealth insurance costs. He stated that when health insurance is budgeted, the weighted averagecost is budgeted; therefore, if a small budget unit has all of their people taking the most expensiveoption for health insurance, they tend to go over budget on that line item. He advised that theSuperior Court mandated was over budget due to mental health services exams, court costs,investigations, and legal services. He stated that, earlier in the year, an adjustment was made tothe Superior Court budget and the Public Defender’s budget to cover higher than anticipatedoutside legal costs. He advised that it was not allocated as well as it might have been; the PublicDefender was $100,000 under budget, and Superior Court was a little over budget.Supervisor Johnson questioned how the overtime for courts work, as he thought they worked nineto five. He questioned if this was money for Pro-Tempores.Director Timko advised that the money is for court staff. He stated that because of construction,the Moccasin Justice Court had a higher caseload of traffic tickets issued, so they worked staffovertime to handle the extra load. He advised that this also generates a lot more revenue.In response to Supervisor Johnson, Director Timko advised that he would submit a breakdown ofthese expenses to the Board.Motion was made by Supervisor Johnson, seconded by Chairman Byers, and unanimouslycarried to approve a transfer from the General Fund Contingency to departments to coverexpenditures in excess of budget.

REGULAR MEETING PAGE 8 JULY 21, 2008ITEM 49: Chairman Byers opened the Public Hearing regarding a Person Transfer/LocationTransfer Liquor License for Danny Roy Thomas, dba Dream Girls Showclub, 5410 Hwy 95, FortMohave, Arizona, Series 6.There being no public input, Chairman Byers closed the Public Hearing.Chairman Byers advised that there has been a lot of sheriff action at the location. He advised thatthe deputies have gone by the subject location three or four times to check on the posting, and itwas not visible.Motion was made by Supervisor Sockwell, seconded by Chairman Byers, and unanimouslycarried to deny a Person Transfer/Location Transfer Liquor License for Danny RoyThomas, dba Dream Girls Showclub, 5410 Hwy 95, Fort Mohave, Arizona, Series 6.ITEM 50: Motion was made by Chairman Byers, seconded by Supervisor Johnson, andunanimously carried to enter into a Water System Connection and Water ServiceAgreement from the I-40 Water System with the Mohave Block Company, to supply 15gallons per minute to serve Mohave Block Company; anticipated to have 8 to 10 employees,cost over three million dollars to develop, and to be fully operational in the Fall of 2008.ITEM 51: Motion was made by Chairman Byers, and seconded by Supervisor Sockwell toremove, and/or accept the letter of resignation from District 2 Planning and ZoningCommissioner Syd Ervin.Supervisor Sockwell advised that he submitted Mr. Ervin’s original resignation letter.Joe Bibich, Planning and Zoning Commissioner, advised that he wanted to clear things up, as thenewspaper stated that this was revenge on Chairman Hamlyn’s part towards Commissioner Ervin.He advised he was on vacation for the April Planning and Zoning Commission Meeting, andupon his return he spoke with Commissioner Burgess regarding some of the agenda items. Hestated that he watched a CD of the meeting, and realized that the election of the Chairman was notdone correctly. He advised that he called Commissioner Wise, stating that he did not feel the votewas legal, and Commissioner Wise agreed. He stated that the election of officers was placed onthe next Planning and Zoning Commission agenda. He stated that he wanted it known thatChairman Hamlyn had nothing to do with the issue; he was the one who instigated it.Motion was made by Chairman Byers, seconded by Supervisor Sockwell, and unanimouslycarried to accept the letter of resignation from District 2 Planning and ZoningCommissioner Syd Ervin.ITEM 52: Motion was made by Chairman Byers, and seconded by Supervisor Sockwell todiscuss directing the County Manager to cause an audit of the funds invested by the CountyTreasurer to be completed by the Office of Management and Budget. Further, theinvestment policy of the County Treasurer is amended immediately to reflect the desire ofthe Board of Supervisors that all funds held by the County Treasurer shall be transferred tothe State Treasurer’s Local Government Investment Pool at the soonest possible time,without incurring penalties for early liquidation of the investments, until such time theBoard of Supervisors deems a qualified investments manager is on staff or under contract.

REGULAR MEETING PAGE 9 JULY 21, 2008Treasurer Fabrizio advised that he is not opposed to the request; however, he would like topresent his position on this item. He stated that the Treasurer’s Office is charged with preservingand protecting the revenue of the County, while at the same time earning a reasonable rate ofreturn. He stated that since his Chief Deputy has left his office, he wholeheartedly agrees withManager Walker that an audit of the investment portfolio should be completed. He advised thathe contacted Office of Management and Budget (OMB) Manager Hepler and asked him toperform the audit. He stated that he agrees that the idle cash in the investment portfolio betterserves the goals of the County in the Local Government Investment Pool (LGIP). He stated thatit has been two weeks since his Chief Deputy left, and he had his newly hired Accountant, CindyCox, put together an analysis of the idle cash in the portfolio, and deems that it can earn a higherrate of interest in the LGIP; therefore, last week, that cash was moved to the LGIP. He advisedthat the money was put in the Merrill Lynch account because, at the time, they felt it was a saferinvestment; however, the LGIP is certainly safe. He stated that he has asked the safe keeper ofthe investment portfolio, Merrill Lynch, along with two other investment firms that are on theBoard of Supervisors’ approved broker list to perform reviews of the investment portfolio, andthe results indicate the portfolio is sufficiently diversified, the principal is being preserved;interest earnings in the last eleven months is over $8 million, with average interest earnings of4.49%; any unrealized loss within the portfolio is consistent with the policy, within compliance,and due to the uncertainty of the market. He stated that based on the historical income andexpense analysis his accountant prepared, he has put a hold on investing for the next threemonths, as July through September hold our widest gaps between income and expense. Headvised that he agrees with Mr. Walker that the Chief Deputy position is crucial to the investmentpiece, and to achieve that goal he has put in a request to Human Resources to place an ad for theposition. He stated that now that the Chief Deputy position is vacant, he is turning his attention todeveloping an investment policy and plan with the assistance of an Investment Committee that iscurrently comprised of Guy Michaels, Senior Vice President Fixed Income Strategies, FirstEmpire Securities; Geoff Ringstad, Senior Financial Analyst, First Empire Securities; BradGrabowy, International Financial Advisor, Global Private Client, Merrill Lynch; Dave Sirvent,Senior Financial Advisor, Merrill Lynch; James Watt, Senior Vice President and RegisteredPrincipal, Mischler Financial Group; Ben Finkelstein, Senior Managing Director Funds, StanfordGroup; and Monica Busch, Monica Busch Investments. He stated that he sees no need for formalaction because he shares the same concerns as Manager Walker.Chairman Byers questioned the liquidity of the funds, if the money can be moved, and if themoney has been commingled with other accounts. He stated that he is interested to know how theaudit will turn out.Treasurer Fabrizio stated that he has no trouble with an audit; his office is transparent. He statedthat he sees no reason to tie their hands with the investments after the next three month period;they should have a financial expert on board by then.Treasurer Fabrizio stated that is good business practice; however, the item asks that the Treasurernot invest any money beyond the LGIP for the next three months, and he is asking that the Boardwait and see what happens after three months, and then revisit the issue. He stated that if a goodopportunity comes up to invest our cash, we should take advantage of it.

REGULAR MEETING PAGE 10 JULY 21, 2008Chairman Byers advised that the item doesn’t say anything about three months, it says “until suchtime the Board of Supervisors deems a qualified investments manager is on staff or undercontract.”Treasurer Fabrizio stated that he is asking for three months, and then to have the issue revisitedby the Board.Chairman Byers advised that he is going with staff’s recommendation.Supervisor Johnson questioned how much money needs to be kept on hand to cover dailyexpenses.Chairman Byers stated that it is his understanding that there is currently $17 million on hand, andlast month there was $53 million. He stated if all these funds are tied up and bills come due, youwould have to sell short to get the funds.In response to Supervisor Johnson, Accountant Cox advised that she put together a cash flow inthe last two weeks based on last year, and she found that the next three months is the widest gapbetween income and expenses, until the bills go out for the property taxes. She advised that thereis approximately a $10 million difference between income and expense. She advised that as oflast week they had $30 million cash, which they moved to LGIP and are able to get out within a24 hour period. She stated that if any other items mature, they would like the ability to be able toinvest that money within policy guidelines.Chairman Byers advised that will be discussed at the next meeting.In response to Manager Walker, Accountant Cox advised that she has been in her job for threemonths as Accounting Supervisor. She advised that her position does not contain any scope ofinvestment; however, she has an MBA, and her Bachelors Degree is in accounting. She advisedthat she has been a Chief Financial Officer of a $200 million corporation in Las Vegas, and hasworked her way up the ranks in accounting, so this is not something she is unfamiliar with.In response to Manager Walker, Accountant Cox advised that at this point she is the OfficeSupervisor; however, it is not a job duty in her position.Manager Walker questioned how many Investment Committee Meetings Treasurer Fabrizio hasheld, and how many Ms. Busch has attended.Treasurer Fabrizio advised that the committee was just formed. He advised that when the ChiefDeputy left, they realized the need for the committee, and made phone calls accordingly.Manager Walker asked how Treasurer Fabrizio would describe his investment strategy orportfolio management strategy during the time he has been in office. He questioned if TreasurerFabrizio has, at any time, had to sell at a discount and absorb the losses.Treasurer Fabrizio advised that, as Statute requires, they first preserve the principal; they want itliquid so it can be tapped into when needed; and then there is yield. He stated that it is his

REGULAR MEETING PAGE 11 JULY 21, 2008understanding that they have had one or two losses on principal, most specifically, when they hadto respond to a $25 million request by the Finance Department to pay for a jail bond.Manager Walker asked that Treasurer Fabrizio enumerate the Statutes he was referring to relativeto his investment strategy.Treasurer Fabrizio advised that he believes it is Statute 35-341-343.Manager Walker questioned if those Statutes relate to the LGIP.Attorney Herbert advised that the LGIP is one of the Statutes in there; however, 35-321 et. seq.deals with handling public funds. She advised that LGIP is Statute 35-326.Manager Walker questioned if Treasurer Fabrizio has a written investment strategy that the Boardcan have so they know what the Treasurer has been following over the last three plus years. Hestated that he sees activity that has happened subsequent to this item being placed on the Boardagenda. He stated that from a fiduciary responsibility, this is the Board’s money, and underStatute 11-251, the Board has the authority to supervise, in particular, anybody who is investingor managing their money. He stated that there are things that need to be done in the audit and heappreciates that the Treasurer is willing to cooperate.Supervisor Sockwell stated that he understands that former Chief Deputy Treasurer Barker, whowas handling most of our investments, was a former Merrill Lynch employee, which ties her toMerrill Lynch. He questioned if we have a signed contract with Merrill Lynch, and if so, for whatand for how long.Treasurer Fabrizio advised that we do not have a signed contract; we are not required to have one.Manager Walker advised that the Board approved investment advisors in 2005, and Merrill Lynchwas not on that list. He stated that there has been some discussion between Procurement and theTreasurer’s Office relative to that. He stated that Supervisor Sockwell brings up a good point;you don’t put that kind of money into a brokerage account without signing a brokerage agreementwith the company that is handling your money.Treasurer Fabrizio advised that we do have a safe keeping agreement with them; they are a Boardapproved broker.Manager Walker advised that he did not see them on the list, but that can be resolved during theaudit.Motion was made by Chairman Byers, and seconded by Supervisor Sockwell to direct theCounty Manager to cause an audit of the funds invested by the County Treasurer to becompleted by the Office of Management and Budget. Further, the investment policy of theCounty Treasurer is amended immediately to reflect the desire of the Board of Supervisorsthat all funds held by the County Treasurer shall be transferred to the State Treasurer’sLocal Government Investment Pool at the soonest possible time, without incurring penaltiesfor early liquidation of the investments, until such time the Board of Supervisors deems aqualified investments manager is on staff or under contract.

REGULAR MEETING PAGE 12 JULY 21, 2008Supervisor Johnson stated that it appears the Treasurer has already transferred the money toLGIP.Manager Walker stated that he does not know how much money that is, and the Treasurer doesn’tseem to know; perhaps Accountant Cox knows.In response to Supervisor Johnson, Manager Walker advised that the audit will be startedimmediately. He advised that staff tried to do some things in the Treasurer’s Office during thetenure of Chief Deputy Treasurer Barker and she did not want them looking at some of the issues,which is why he is asking the Board’s authority to conduct an audit. He advised that the auditwill be started right away and review of what we have can be done quickly. He stated that areview of long term investment strategy, the trades that have happened over a longer period oftime from before we got in with Merrill Lynch to after we got in with Merrill Lynch, areunknowns to anyone outside the Treasurer’s Office. He stated that it is the Board’s money, andthey have a fiduciary responsibility, not only for County funds, but for investment of any moniesthat go through a County Office.In response to Supervisor Johnson, Manager Walker stated that they will have a preliminaryreport to the Board in thirty days.Motion was amended by Chairman Byers, seconded by Supervisor Sockwell, andunanimously carried to direct the County Manager to cause an audit of the funds investedby the County Treasurer to be completed by the Office of Management and Budget.Further, the investment policy of the County Treasurer is amended immediately to reflectthe desire of the Board of Supervisors that all funds held by the County Treasurer shall betransferred to the State Treasurer’s Local Government Investment Pool at the soonestpossible time, without incurring penalties for early liquidation of the investments, until suchtime the Board of Supervisors deems a qualified investments manager is on staff or undercontract. A preliminary report will be provided to the Board within thirty days.There being no further business to come before the Board of Supervisors this 21 st day of July,2008, motion was made by Chairman Byers, seconded by Supervisor Sockwell, andunanimously carried to adjourn at 10:27 A.M.MOHAVE COUNTY BOARD OF SUPERVISORSATTEST:________________________________Pete Byers, Chairman_______________________________Barbara Bracken, Clerk of the Board