Town Council

PUBLIC NOTICE THE PINETOP-LAKESIDE TOWN COUNCIL WILL HOLD A SPECIAL MEETING ON THURSDAY, JULY 10, 2025, AT 4:00 P.M. THE MEETING WILL BE HELD IN THE TOWN COUNCIL CHAMBERS LOCATED AT 325 W. WHITE MOUNTAIN BOULEVARD, LAKESIDE AZ 85929 SOME MEMBERS OF COUNCIL MAY PARTICIPATE TELEPHONICALLY AGENDA A. Call to Order Mayor  Roll Call and Ascertain Quorum  Pledge of Allegiance  Invocation Any prayer/invocation that may be offered before the start of regular Council business shall be the voluntary offering of a private citizen, for the benefit of the Council and the citizens present. The views or beliefs expressed by the prayer/invocation speaker have not been previously reviewed or approved by the Council, and the Council does not endorse the religious beliefs or views of this, or any other speaker. A list of volunteers is maintained by the Town Clerk’s Office and interested persons should contact the Town Clerk’s Office for further information. B. Call to the Public Mayor This is a business meeting of the Town Council. The Town values and welcomes public input. Please address the Council as a whole and not individual Council Members. Do not address staff or members of the audience. Council action on items brought up in Call to the Public is limited by the Open Meeting Law. The Council may direct staff to study the matter and reschedule for further consideration at a later date. Items on the agenda will not be heard or discussed in Call to the Public. Individuals are limited to three (3) minutes. C. Consent Agenda Mayor All items listed in the Consent Agenda are considered routine matters and will be enacted by one motion of the Council. There will be no separate discussion of these items unless a Member of Town Council requests that an item or items be removed for discussion. Council Members may ask questions without removal of the item from the Consent Agenda. Items removed from the Consent Agenda are considered in their normal sequence as listed on the agenda, unless called out of sequence. C.1 Consider Approval of the Town Council Budget Work Town Clerk Session Minutes held on May 28, 2025. Salskov C.2 Consider Approval of the Town Council Special Meeting Town Clerk Minutes held on June 11, 2025. Salskov C.3 Consider Approval of the Town Council Budget Work Town Clerk Session Minutes held on June 11, 2025. Salskov C.4 Consider Approval of the Town Council Regular Meeting Town Clerk Minutes held on June 19, 2025. Salskov Town Council Special Meeting – July 10, 2025 D. Business Before the Council Public comment will be taken at the beginning of each agenda item, after the subject has been announced by the Mayor and explained by staff. Any citizen, who wishes, may speak one time for five minutes on each agenda item before or after Council discussion. Questions from Council members, however, may be directed to staff or a member of the public through the Mayor at any time. D.1 Discussion, Information and Consider Legal Action Approving a Interim Town Professional Services Agreement with The James Vincent Group, Manager Miller LLC, to Provide Financial Services, Including Acting in the Capacity of Finance Director for the Town of Pinetop-Lakeside. D.2 Discussion and Consideration of Resolution No. 25-1779, Town Clerk Designating Gabe Buldra of The James Vincent Group, LLC, as the Salskov Chief Fiscal Officer (CFO) to File the Annual Expenditure Limitation Report with the Arizona Auditor General for FYE 6-30- 26. D.3 Public Hearing, Discussion, and Consideration of Resolution No. Sara Simonton, 25-1780, Adopting the Tentative Budget for FY2025-2026 for the The James Town of Pinetop-Lakeside. Vincent Group, LLC E. Adjournment Mayor Irwin Posted on July 3, 2025, at 12:00 p.m. at the following locations: Kristi Salskov, MMC, CPM Town Clerk Town Hall Town Website 325 W. White Mountain Blvd. https://pinetoplakesideaz.gov Lakeside, AZ 85929 Pinetop U.S. Post Office Lakeside U.S. Post Office 712 E. White Mountain Blvd. 1815 W. Jackson Lane Pinetop, AZ 85935 Lakeside, AZ 85929 Meeting can be viewed at https://www.youtube.com/channel/UCN53WdzuQen_exXNbatODIw. Note: This meeting is open to the public. All interested people are welcome to attend. A copy of agenda background material provided to Council Members, with the exception of material relating to possible executive session, are available for public inspection at the Town Clerk’s Office, 325 W. White Mountain Boulevard, Lakeside, AZ 85929, Monday through Friday from 8:00 a.m. to 5:00 p.m. or online at https://pinetoplakesideaz.gov AMERICAN WITH DISABILITIES ACT: The Town of Pinetop-Lakeside intends to comply with the A.D.A. If you are disabled or physically challenged and need special accommodations to participate, please contact the Town Clerk at (928) 368-8696 Ext. 221 at least 48 hours prior to the meeting. Meeting Date: July 10, 2025 Agenda Item #: C.1 Subject: Consider Approval of the Town Council Budget Work Session Minutes held on May 28, 2025.  MINUTES OF THE BUDGET WORK SESSION OF THE HONORABLE TOWN COUNCIL OF THE TOWN OF PINETOP-LAKESIDE, ARIZONA, HELD ON TUESDAY, MAY 28, 2025, IN THE TOWN COUNCIL CHAMBERS LOCATED AT 325 W. WHITE MOUNTAIN BOULEVARD, LAKESIDE, AZ 85929  Call to Order Mayor Irwin called the meeting to order at 9:00 a.m.  Roll Call The following Council Members were present: Name Position Stephanie Irwin Mayor Sterling Beus Vice Mayor Taber Heisler Council Member Jeff Phillips Council Member Harry Turner Council Member Jerry Smith Council Member Todd Ferau Council Member Staff Present: Name Position Keith Johnson Town Manager Kevin Rodolph Assistant Town Manager/Finance Director Kristi Salskov Town Clerk Jeremiah Loyd Community Development Director Dan Barnes Police Chief Daniel Wilkey Police Commander Matt Patterson Public Works Director Tony Alba Community Services Director Betsy Peck Library Director Stacy MacArthur Accountant Annie DeRosier Marketing Coordinator Minutes of the Town Council Budget Work Session – May 28, 2025 Page 2 Public Present: Donna Shurwin Cupid Hayes Larry McCormick arrived at 9:15 David Westley arrived at approx. 10:00 1. Town Council Review of FY2025-2026 Budget. Assistant Town Manager/Finance Director Rodolph offered the opening statement “There is a rumor circulating that the Town is broke. The Town is not broke. We need to make some corrections going forward so we don’t end up that way. We presented Department requests on May 6th, like we always do, then told Council we needed to make adjustments and recommendations and present to you today. That is what we are doing. What we are presenting to you today will leave the Town with a cash balance in General Fund over $1,000,000. But we need to make some corrections in course. How did we get here today? There are a whole lot of things that have happened since 2017. Except for our newer Council Members and employees, nearly everyone in this room has been part of it. There is nothing untoward or secret that has happened. So, how are we here? First, when Keith and I got here in 2016, the entire administrative staff along with Pub Works were operating out of the small Pub Works building on Woodland Road. We needed a new Town Hall. Council had the foresight to take advantage of a rare opportunity and buy this building in 2017 at an awesome price. This was a good move. Our Police Department building was horrible and inadequate. It was an embarrassment to have them operating out of this structure. We investigated many possible solutions. The best, and most fiscally prudent alternative was to build an addition onto the current site and remodel the old building. This was a good move. These two very prudent and necessary moves have added over $300,000 debt payments to our budget before we even get into operations. The second part is the pandemic. In 2020-2021 the pandemic hit the entire country. Things shut down and it was chaos. We didn’t know what that would mean for us. We had to adapt. The Feds handed out millions of dollars in aid (AZ Cares Act ad ARPA Funds). We received $1.4 million in ARPA funds along with the AZ Cares money. The phenomenon we saw was that a LOT of people came to Pinetop-Lakeside to ride out the storm. Additionally, a huge housing boom happened where people were building houses here. Our revenues went through the roof. Because of the Federal money, everyone was increasing their “minimum wages” (Taco Bell, KFC, Minutes of the Town Council Budget Work Session – May 28, 2025 Page 3 McDonalds, etc.). We had to give raises to our employees to avoid losing them. This was a good move. Navajo County had not given their employees raises in many years. They received a whole of more ARPA funds than cities and towns did. They proceeded to give their Sheriff Officers very substantial raises. In turn, we gave our PD officers significant raises in order not to lose them. This was a good move. The third part is increased demands. With the prosperity in the whole county, there were demands on staff- by the public and by the Council. We hired more employees in many departments to provide services. This led to increased salaries and benefits. Additionally, there has been significant inflation and price increases with everything over the last one and a half years. The fourth part is revenue. Beginning with our new Debt Service and the increased costs associated with the pandemic, our revenue stream was increasing. With all the new houses being built, there was no reason to believe our revenues would decline. What we have seen over the last two years are that our revenue has fallen flat. This doesn’t make sense. With the same revenue volume, our revenues have increased significantly due to inflation and price increase factors. It has not. This means that our revenue volume has decreased. As of January 1,2025, the legislature took away our tax on residential rentals- a decrease of $75,000 a year. Additionally, they passed a flat income tax. This further reduces our State shared revenue from income tax. The fifth part is reserves. In the last fiscal year, we have taken nearly $2 million out of our cash reserves for Council approved projects: 1. Nearly $1.5 million to complete our PD remodel/renovation. 2. $400,000 to buy land next door to Town Hall. We are a small municipality, and this has a substantial impact on us. Now, where do we go from here? If we are to continue offering the same services at the same staffing level we have, we have to have more revenue. Some possible alternatives are singular and/or combined: 1. Increasing our revenue by raising our TPT tax rate. 2. Reduce employee benefits 3. Decrease services and lay off staff. Assistant Town Manager/Finance Director Rodolph presented adjustments to the proposed budget for fiscal year 2025-2026. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 4 Assistant Town Manger/Finance Director Rodolph suggested that the Town Council consider a ½ percent increase to the Town’s TPT tax rate and shared what other Arizona cities and towns have a 3% and higher TPT tax rate. Mayor Irwin said if we had to increase the Town’s TPT tax rate, that it go to public safety. Vice Mayor Sterling Beus said that ½ percent only gives the Town $1,000,000. Which would only buy the Town approximately 2 years and does not solve the problem. Council Member Heisler expressed that he is not opposed to a sales tax increase; however, he stated that he would not be comfortable supporting such an increase until there is a clear understanding of how the Town’s financial situation reached this point and what measures will be implemented to prevent similar issues in the future. Director Rodolph stated that the Town previously utilized $2,000,000 to construct the Police Department and acquire the property adjacent to Town Hall. He emphasized that this type of expenditure will not be repeated. Council Member Smith stated that the Town Council has authority over all expenditures. In response, Council Member Heisler acknowledged that while Council does have control over spending decisions, it often relies on the guidance and expertise of the Town’s capable staff when making those decisions. Council Member Heisler also emphasized the importance of developing a 5 to 10 year financial projection to support long-term planning and fiscal responsibility. Council Member Heisler noted that the Town has not historically engaged in long- term planning for employee compensation. Instead, discussions about raises have typically focused on whether they are financially feasible in a given year, rather than being part of a structured five-year strategy. Town Manager Johnson explained that one of the challenges with long-range financial projections is the inability to control external factors such as weather and economic conditions. He noted that while a five-year projection might reflect steady revenue and community growth, unforeseen circumstances, such as a mild winter or a difficult summer can significantly impact revenue. When actual outcomes fall short of projections, it often leads to criticism and finger-pointing. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 5 Vice Mayor Beus stated that the Town has experienced enough mild winters and has sufficient historical data to inform future planning. He questioned why projections cannot account for the likelihood of two light winters over a five-year period, emphasizing the importance of incorporating realistic assumptions into long-range forecasts. Town Manager Johnson noted that over the past five years, the Council has approved a significant number of projects for staff to implement. In response to this increased workload, the Town added a Special Projects Crew within the Public Works Department. Mayor Irwin noted that the majority of those projects have now been completed and posed the question of whether it may be appropriate to consider scaling back operations or resources accordingly. Public Works Director Patterson mentioned cutting salaries and look at basing the budget off of last year’s revenues. Council Member Fernau commented that staffing levels were increased in response to larger projects, which was appropriate at the time; however, he noted that this approach has contributed to some of the financial challenges the Town is currently facing. Director Rodolph stated that while the Town could consider reducing its contribution toward employee health benefits in the next fiscal year, it is too late to implement such changes for the current year. Mayor Irwin suggested that the Town consider revisiting the discussion on a potential sales tax increase in October. Director Rodolph stated that he anticipates actual revenues may exceed current projections by approximately $200,000. However, he chose not to include this potential increase in the budget to maintain a conservative and fiscally responsible approach. Vice Mayor Beus inquired about the potential benefits the Town might achieve by reducing its contribution to employee health benefits. Director Patterson stated if it was changed by 5% in his Department the savings would be approximately $60,000. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 6 Director Rodolph said Public Works is the largest Department in the Town. For the entire Town it may be close to $100,000-$120,000. in savings. Vice Mayor Beus suggested that staff looks into that next year. Council Member Fernau asked whether the Town is securing the best possible pricing on purchases and materials. Director Patterson explained that his department obtains three quotes for every purchase, regardless of the item’s size or cost—even for items as small as gloves or a shovel. He invited Town Council members to visit the Public Works Department to review receipts and observe the procurement process firsthand. Public Works Director Patterson stated that he would be willing to take a 10% reduction in his own salary and suggested that all department directors receive larger pay cuts than other employees. Mayor Irwin noted that while the Town is reducing its financial support to the Re- Center and Community Center, these are services that some Town employees may rely on and benefit from. Council Member Fernau inquired whether the Town Manager has provided the Finance Director with a performance review and established goals. He also asked about the overall process for setting goals and conducting performance evaluations for employees, emphasizing that salary increases should be contingent upon meeting established goals. Town Manager Johnson explained that over the past two years, cost-of-living adjustments (COLA) were awarded based on employee performance evaluations. Last year employees received a 3% COLA, with the potential for an additional 2% merit-based increase. Council Member Fernau asked if that was done for all employees. Town Manager Johnson stated that not all employees received the merit increase. Vice Mayor Beus said he heard that all employees received the merit increase and that very few employees were evaluated. Town Manager Johnson responded that every employee was evaluated. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 7 Director Rodolph stated that performance evaluations were a prerequisite for any salary increases. He added that not all employees received the full 2% merit increase, as the amount awarded was based on individual performance. Director Rodolph noted that the City of Show Low, in one particular year, opted to award lower percentage raises to directors compared to lower-paid employees. He clarified that while this was not a formally adopted policy, such an approach is not uncommon in municipal compensation practices. Vice Mayor said that some corporations restructure when faced with budget challenges and asked if that is something that could be considered. Mayor Irwin stated that there are currently eight department directors. While she noted that she is not fully aware of each director’s exact salary, she emphasized that even with reductions to director-level compensation, the savings would not be sufficient to resolve the Town’s overall budget shortfall. Town Manager Johnson stated that it is premature to consider employee pay reductions at this time. He emphasized that the Town is currently working to recruit a lateral Police Officer, and implementing pay cuts could hinder the Town’s ability to attract and retain qualified candidates. He further expressed optimism about the Town’s financial outlook, noting that he has experienced similar situations in the past where revenues eventually improved. He added that, based on this experience, he prefers to approach the situation with a sense of optimism. Mayor Irwin asked Town Manager Johnson if he is recommending that the Town deficit spend for one more year. Town Manager Johnson stated that this approach will allow the Town additional time to explore alternative solutions and identify other potential options moving forward. Council Member Heisler, speaking with sarcasm, remarked that if the Town's approach is simply to "wait and see," then perhaps it should proceed with giving raises and see what happens, adding, “Why not continue operating the way we always have?” Council Member Fernau emphasized the importance of having a clear plan, whether it is an optimistic outlook or a strategy focused on attracting new industry to increase revenue. He stressed that the Town needs a defined goal to work toward in order to ensure long-term financial stability. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 8 Mayor Irwin asked how much a 5% pay cut would be. Director Rodolph said a guestimate would be approximately $400,000.00. Mayor Irwin proposed implementing a 3% pay reduction at this time, with a plan to reassess the Town’s financial position in October. She noted that by then, the Town will have a clearer understanding of summer revenue figures. In addition, Mayor Irwin suggested revisiting the possibility of a sales tax increase and recommended that the Council and staff hold a brainstorming session to explore strategies for attracting new industry to the community. Vice Mayor Beus suggested a sliding scale when it comes to pay cuts. Council Member Heisler said he feels like we are trying to make a decision in a vacuum. He said we do not know what any of these decisions mean. I feel like we should ask staff to come up with options and bring us your three best options to balance the budget. That way we will have some educated decision making tools. We are sitting here spinning every idea under the moon. Mayor Irwin suggested that Director Rodolph come up with some numbers and present them at the meeting next Thursday. Director Patterson said if the Council just wants numbers that can be done in an email. Mayor Irwin stated that Council will need time to talk about the options. Mayor Irwin suggested giving some options to Director Rodolph to review and bring back to Council. Those options were: • A sliding scale pay cut. (Directors taking a larger pay cut) • A sales tax increase Director Heisler said his suggestion is that the Town Manager and Town staff collaborate to develop three potential strategies for achieving a balanced budget and present those options to the Council for consideration. Mayor Irwin said she feels they need guidance form Council. Vice Mayor Beus said he would like to see a pay cut with a flat percentage across the board and another option being a sliding pay cut. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 9 Council Member Fernau suggested looking at departments and not making it a cut across the board. Director Rodolph said it should be across the board to be fair. Council Member Heisler said he doesn’t disagree with what is being discussed and suggested we start at “nobody loses their job, now come up with three to four options of how we can approve a balance budget”. Mayor Irwin asked Councilors Smith and Turner if they had any suggestions. Council Member Turner shared that in his previous career, his supervisor would often ask him to implement a 10% budget reduction. He noted that he never resorted to pay cuts, layoffs, or employee terminations to achieve this. Instead, the reductions typically came from scaling back services provided. Director Rodolph stated that, in order to achieve further savings without impacting operations, the Town would need to consider salary reductions. He added that all other feasible budget cuts have already been made to preserve essential services and operations. Council Member Turner said, “maybe there are some services that need to be reduced or cut”. Director Rodolph stated that he believes the Town needs to consider raising tax rates, reiterating that he has already eliminated all non-essential expenses. He emphasized that the only remaining area for potential savings is employee salaries. Council Member Phillips responded that it appears a combination of both salary reductions and a tax rate increase may be necessary. Town Manager Johnson added, “or layoffs”. Council Member Fernau expressed appreciation for the directors' loyalty to their staff, noting that such commitment is fundamental to building a strong community. He then asked, in light of the two positions that will not be refilled, whether there are additional roles currently being funded that may not be essential at this time and could be considered for elimination. Director Loyd asked how many staff members there are in every department compared to a year or two ago. Minutes of the Town Council Budget Work Session – May 28, 2025 Page 10 Mayor Irwin said she asked Stacy that question and was told we had gained 8 employees. Director Patterson said we have grown significantly since he started with the Town. Mayor Irwin said there were approximately 55-57 employees 10 years ago. There are 65 employees today. Director Loyd shared that his department has lost the number of employees over the years and those positions were not filled. Vice Mayor Beus explained that restructuring could help. Director Loyd said there may be areas we need a closer look. Director Rodolph said he didn’t know what Director Loyd was talking about. Director Loyd said he is not talking about anyone or any department specifically. Mayor Irwin asked Director Rodolph to present options at a Special Meeting on Thursday Juen 5th, 2025 at 5:00 p.m. which is one hour prior to the Town Council Regular Meeting start time. Council Member Turner asked whether the Council should provide Director Rodolph with a specific percentage to use when calculating potential employee salary reductions. Director Rodolph stated that the Town needs to reduce expenditures by an additional $900,000 to achieve a balanced budget. He added that, in his opinion, the only viable way to generate additional revenue is through a sales tax increase. Mayor Irwin stated that the Council can revisit the Town’s financial status in October and re-evaluate the situation based on updated revenue figures. There being no further business at this time, the Work Session was adjourned at approximately 3:40 p.m. __________________________ Stephanie Irwin, Mayor Minutes of the Town Council Budget Work Session – May 28, 2025 Page 11 ATTEST: ____________________________ Kristi Salskov, MMC, CPM Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Budget Work Session of the Town Council of Pinetop-Lakeside, Arizona, held on the 28th day of May 2025. I further certify that the Work Session was duly called and held and that a quorum was present. Dated this 28th day of May 2025. _____________________________ Kristi Salskov, MMC, CPM Town Clerk Meeting Date: July 10, 2025 Agenda Item #: C.2 Subject: Consider Approval of the Town Council Special Meeting Minutes held on June 11, 2025.  MINUTES OF THE SPECIAL MEETING OF THE HONORABLE TOWN COUNCIL OF THE TOWN OF PINETOP- LAKESIDE, ARIZONA, HELD ON WEDNESDAY, JUNE 11, 2025, IN THE TOWN COUNCIL CHAMBERS LOCATED AT 325 W. WHITE MOUNTAIN BOULEVARD, LAKESIDE, AZ 85929  Roll Call The following Council Members were present: Name Position Stephanie Irwin Mayor Sterling Beus Vice Mayor Taber Heisler Council Member Jerry Smith Council Member Harry Turner Council Member Todd Fernau-Attended Telephonically Council Member Jeff Phillips Council Member Staff Present: Name Position Kristi Salakov Town Clerk/Temporary Interim Town Manager Mackenzie Valichnac Deputy Town Clerk Dan Barnes Chief of Police-PLPD Dan Wilkey Commander-PLPD Matt Patterson Public Works Director Jeremiah Loyd Community Development Department Betsy Peck Library Director Tony Alba Community Services Director Ryan VanPatten IT Manager Stacy MacArthur Accountant Annie DeRosier Marketing Specialist Rob Hephner Creative Services Mayor Irwin called the Regular Meeting of the Pinetop-Lakeside Town Council to order at 9:00 a.m. Minutes of the Town Council Special Meeting. June 11, 2025. Page 2 B. Business Before the Council B.1 Discussion and Possible Legal Action Regarding the Appointment of an Interim Town Manager. A. (1)(3) Upon a public majority vote of the members constituting quorum, a public body may hold an executive session but only for the following purpose: 1. Discussion or consideration of employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee or employee of any public body, except that, with the exception of salary discussion, an officer, appointee or employee may demand that the discussion or consideration occur at a public meeting. The public body shall provide the officer appointee or employee with written notice of the executive session as is appropriate but not less than twenty-four hours for the officer, appointee or employee to determine whether the discussion or consideration should occur at a public meeting. 3. Discussion or consultation for legal advice with the attorney or attorneys of the public body. Vice Mayor Beus moved to enter into Executive Session. Council Member Heisler seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. Town Council entered Executive Session at approximately 9:02 a.m. Council Member Fernau joined the Executive Session and the remainder of the Special Meeting via telephone. Town Council reconvened the Special Meeting at approximately 10:28 a.m.to vote on item B.1. Minutes of the Town Council Special Meeting. June 11, 2025. Page 3 Mayor Irwin invited Rick Miller to the podium to introduce himself. Rick Miller offered the following comments, “I’m Rick Miller. I have been in local government for over 45 years. I am currently serving on the Pinetop-Lakeside Planning and Zoning Commission, to which I was recently appointed. I have a wife, two children, and seven grandchildren. We bought a home up here in September. I bring a lot of experience. I started my career in Rapid City, South Dakota, where I spent 10 years, beginning as a draftsman and eventually becoming the planning director. After that, I took a job in Casa Grande, Arizona, where I worked for 20 years before retiring, my first retirement, at 50 years old. That’s not a good idea. You’ve got to keep working. Following my retirement in Casa Grande, I became a contract employee for the City of Eloy for a little over two years. I was brought in to assist after the City Manager, who was also performing planning and development duties, left. I helped complete their General Plan update and managed planning and development projects, including annexations and working with developers. After that, I was approached by the City of Coolidge, where I ended my career. I started there as the Development Services Director, and for the last eight years, until I retired last August, I served as the City Manager. I was appointed by the Mayor and Council following the unfortunate passing of their previous manager. All I know is local government. Over the years, I’ve had the privilege of working with many fine individuals and department heads. I’m very impressed with the Pinetop- Lakeside Council, your staff, and the resources you have. I would be very happy to step in and help in an interim capacity to keep the organization running in an organized and efficient manner. Any Questions?” Council Member Heisler stated that Mr. Miller is the only candidate before the Council today and asked Mr. Miller if he would be offended if Council were to take some time to see if there were any other candidates interested. Rick Miller responded, “Absolutely not. I would not be offended. I would encourage you to be careful in your decision. You’re looking to fill a position that is extremely important. One that needs to work very closely with you, the policymakers, and the administration, the people who are implementing your policies. So no, I would not be offended. It wouldn’t hurt at all to reach out and look at others who may be more qualified. You may even have someone already on board. You’ve appointed an excellent interim manager right now in Kristi, your Clerk. Minutes of the Town Council Special Meeting. June 11, 2025. Page 4 I would not be offended — and in fact, I’ve got a lot of things to do next week. So please, take your time.” Council Member Heisler stated that there seems to be some frustration from community members that we are not transparent enough and asked to hear Mr. Miller’s thoughts on how he has improved transparency and accountability in government operations. Rick Miller responded, “Transparency is critical, especially when it comes to the citizens of your community. They want to know, and expect to know, what’s going on in the Town. You know, this is their investment. I’ve met people in the community who want to know, and should know, what’s happening. The Town Manager, staff, and you as elected officials are the ones best positioned to answer those questions, and you need to do it in a transparent manner. Now, there are certain things you can’t be fully transparent about. For example, I worked in economic development for a long time, and I worked with individuals who had to sign non-disclosure agreements. So yes, there are instances where transparency is limited. But you should be as transparent as possible — especially when it comes to matters being discussed in public. This is where the community’s business is vetted and decided. Transparency is extremely important. You’ve got social media, podcasts, and all these wonderful tools that support transparency, and it’s very important to use them.” Council Member Smith asked Mr. Miller if he would be available to start immediately. Rick Miller said he could start immediately and explained that he has a commitment in a week and would need to be away for a few days. Council Member Turner asked Mr. Miller how he would envision his first 20-30 days as Interim Town Manger. Rick Miller stated that he has already compiled a list of what he believes are the Town’s immediate priorities. His first priority would be guiding the Town through the budget process. He also expressed a desire to meet individually with department heads to better understand their needs. In addition, Mr. Miller said he would like to engage with the community, connect with the Chamber of Commerce, and explore opportunities to attract and support more local businesses. Minutes of the Town Council Special Meeting. June 11, 2025. Page 5 Vice Mayor Beus moved to appoint Richard “Rick” Miller as Interim Town Manager effective immediately. Council Member Heisler seconded the motion. Mayor Irwin asked if there was any further discussion. Council Member Heisler said he had the opportunity to speak with Mr. miller earlier in the week and thanked him for taking the time to talk to him. Councilor Heisler added that while he has some hesitancy making this decision so quickly, he is very comfortable with the conversations he has had with Mr. Miller and said he looks forward to working with him. Mr. Miller said he appreciated Council Member Heisler’s Candor and concern for the community. By show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau- X Participated Telephonically Council Member Phillips X Mayor Irwin declared the motion passed unanimously. Adjournment Mayor Irwin There being no further business at this time, the regular meeting was adjourned at approximately 10:40 a.m. ________________________ Stephanie Irwin, Mayor ATTEST: ____________________________ Kristi Salskov, MMC, CPM Town Clerk Minutes of the Town Council Special Meeting. June 11, 2025. Page 6 CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special Meeting of the Town Council of the Town of Pinetop-Lakeside, Arizona, held on the 11th day of June, 2025. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 11th day of June, 2025. _____________________________ Kristi Salskov, MMC, CPM Town Clerk Meeting Date: July 10, 2025 Agenda Item #: C.3 Subject: Consider Approval of the Town Council Budget Work Session Minutes held on June 11, 2025  MINUTES OF THE BUDGET WORK SESSION OF THE HONORABLE TOWN COUNCIL OF THE TOWN OF PINETOP-LAKESIDE, ARIZONA, HELD ON WEDNESDAY, JUNE 11, 2025, IN THE TOWN COUNCIL CHAMBERS LOCATED AT 325 W. WHITE MOUNTAIN BOULEVARD, LAKESIDE, AZ 85929  Call to Order Mayor Irwin called the meeting to order at 10:45 a.m. (This meeting started late due to the Special Meeting running long)  Roll Call The following Council Members were present: Name Position Stephanie Irwin Mayor Sterling Beus Vice Mayor Taber Heisler Council Member Jeff Phillips Council Member Harry Turner Council Member Jerry Smith Council Member The following Council Member was absent: Name Position Todd Fernau Council Member Staff Present: Name Position Rick Miller Interim Town Manager Kristi Salskov Town Clerk Jeremiah Loyd Community Development Director Dan Barnes Police Chief Daniel Wilkey Police Commander Matt Patterson Public Works Director Tony Alba Community Services Director Betsy Peck Library Director Stacy MacArthur Accountant Annie DeRosier Marketing Coordinator Minutes of the Town Council Budget Work Session – June 11, 2025 Page 2 Public Present: Donna Shurwin Larry McCormick 1. Review of FY2025-2026 Budget. Mayor Irwin asked Director Patterson what is still owed on the Police Department build. Director Patterson stated that the amount in question is just over $300,000 but clarified that this figure includes a one-time purchase and should be excluded from ongoing budget considerations. Council Member Heisler shared that he contacted the company responsible for preparing the budget for Timber Mesa Fire. The company expressed confidence in their ability to complete the Town’s budget by the end of July, in time for submission to the Arizona Auditor General. Given the short timeframe, they indicated they would likely prepare a budget that is higher than necessary, with the understanding that they could later return with recommendations for budget reductions throughout the fiscal year. Mayor Irwin stated that Kristi Salskov, Temporary Interim Town Manager and Town Clerk, conducted research over the weekend and shared her findings with the Council via email. She then asked Kristi to present her recommendations regarding a company or individual to assist with completing the Town’s budget by the statutory deadline, the third Monday in July. Town Clerk Salskov shared that she reached out to several financial professionals, including personal financial consultants Pat Walker and Dennis Osuch, as well as Interim Public Management, which can provide an interim Finance Director, though this option would be significantly more costly. She also contacted two off-site financial firms: the James Vincent Group and First Chair Pros. Town Clerk Salskov noted several advantages to contracting with an off-site financial firm, including immediate access to qualified professionals, scalable services tailored to the Town’s needs, significant cost savings by avoiding employee benefits and retirement contributions, and access to a broader skill set through a team-based approach. The only drawback identified was their limited on-site presence. Minutes of the Town Council Budget Work Session – June 11, 2025 Page 3 While emphasizing that she is not a finance professional, Town Clerk Salskov stated that after consulting with multiple providers regarding support for the Town’s budget and financial needs, she felt confident that recommending the James Vincent Group was in the best interest of the Town during this critical stage of the budget process. Vice Mayor Beus stated that he had reviewed the materials provided by Town Clerk Salskov and felt that either the James Vincent Group or Matt Hatfield of First Chair Pros may be the best fit for the Town’s current needs. He noted, however, that he did not see a quote from the James Vincent Group included in the information. Town Clerk Salskov explained that she had spoken with the James Vincent Group just the day before and had not yet received a formal quote, but it was forthcoming. She added that the group expressed a willingness to collaborate with Stacy MacArthur, the Town’s Accountant, and tailor their services to best meet the Town’s needs through a scalable approach. Town Clerk Salskov stated that she asked the James Vincent Group if they would be willing to attend one Council meeting per month to provide updates on the Town’s financial status, and they confirmed they would be happy to offer that service. Council Member Heisler shared that the James Vincent Group is the same company used by Timber Mesa Fire. He noted that Gabe Buldra and Ben Archer-Cowes are the owners of JVG, and Timber Mesa works directly with an account representative named Sarah, who is readily accessible. Council Member Heisler added that JVG also provides financial services for Pinetop Fire, Vernon Fire, and several other agencies. He expressed that the firm is highly scalable, with pricing that takes into account factors such as the size of the budget and the number of employees. Council Member Heisler stated that one advantage of working with an off-site financial firm like the James Vincent Group is that, if the assigned account representative is unavailable, there is an entire team familiar with the Town who can step in and provide support when needed. Town Clerk Salskov asked Councilor Heisler if Timber Mesa has one on staff accountant or several. Council Member Heisler stated that Timber Mesa Fire has one on-staff accountant, comparable to Stacy MacArthur, who manages day-to-day tasks such as payroll, accounts payable, and other routine financial duties. He added that the James Vincent Group works closely with their on-site accountant to ensure smooth financial operations. Minutes of the Town Council Budget Work Session – June 11, 2025 Page 4 Vice Mayor Beus asked whether the James Vincent Group would provide their presentations in person or via Zoom. Town Clerk Salskov stated that the James Vincent Group is willing to present either in person or via Zoom, depending on the Council’s preference. Vice Mayor Beus asked whether there would be an additional charge for in-person presentations. Town Clerk Salskov clarified that there would be no extra charge, as in-person presentations would be included in the contracted price. Council Member Heisler added that Timber Mesa does is not charged an extra fee for presentations. Chief of Police Dan Barnes asked if the James Vincent Group has a background in municipal finance. Mayor Irwin stated that they are primarily in Fire Districts. Town Clerk Salskov stated that when she reached out to the James Vincent Group, they had already conducted research on the Town’s municipal finances and expressed confidence in their ability to provide the services needed. Interim Town Manger Rick Miller said he has never worked with a third party finance company in a municipal environment but in smaller communities it is not unusual to contract services out to save money. Interim Manager Miller asked if staff felt that this is something that could be done in house as it seems a lot of work has already been done for this budget. Accountant Stacy MacArthur felt she could do it with some guidance. Town Clerk Salskov stated that she reached out to other Arizona clerks through a listserv and identified several small towns that contract out their financial services. She added that she spoke with Attorney Sims, who also serves as the Town Attorney for one of the responding municipalities, and he shared very positive feedback regarding the benefits of outsourcing finance functions for small towns. Council Member Phillips stated that if outsourcing to a third party results in significant cost savings, it may free up funds that could be used to provide additional support for Stacy in her Human Resources and other job-related duties. Minutes of the Town Council Budget Work Session – June 11, 2025 Page 5 Mayor Irwin asked if the Council agreed that the funds allocated to the Finance Department should remain in place to allow for the potential hiring of a third-party firm, as well as possible additional support for Stacy in the Accounting and Human Resources Department. Accountant MacArthur asked Public Works Director Patterson if he felt they could get this budget put together without the help of a third party. Director Patterson responded that he was told he needed to be removed from finance. Accountant MacArthur said this is just for the budget, not the financial happenings. Director Patterson stated that he has not been monitoring the General Fund closely and needs to take a deeper look, as he is unsure of the current financial position. He explained that he manages the budgeting and expenditures for Streets and Parks, including wages, and noted that his numbers are tracked separately from other departments. Interim Town Manager Miller responded that while Director Patterson should present those figures to the Town Manager and Finance Director, they should fall under the responsibility of the Finance Department. He emphasized that each department should be able to track its own spending and projected needs, and report that information to the Town Manager and Finance Director or department to help ensure the Town remains within budget. Mayor Irwin said this is why a third party finance company may be a good idea. Council Member Heisler stated that the James Vincent Group serves as the equivalent of a Finance Director for Timber Mesa. He explained that they thoroughly analyze financial information, break it down in detail, and provide recommendations to support the financial health of the organization. He added that they are diligent in reviewing issues, offering guidance, and ensuring alignment with the Town’s revenue projections. Director Patterson stated that the conversations he had with Kevin Rodolph and Keith Johnson were not consistent with those they had with others. He explained that he was forced to eliminate an entire department due to the lack of funding in next year’s budget and requested that funding for facilities be reconsidered and added back in. Director Patterson also noted that he reassigned two employees to the Streets Department to help balance operational needs. He reiterated that the discussions he had privately with Keith and Kevin do not align with what was presented at the most recent budget meeting. Minutes of the Town Council Budget Work Session – June 11, 2025 Page 6 Council Member Heisler stated that he believes it is important for the Town Manager and all Department Directors to be aligned and on the same page regarding the Town’s budget. Public Works Director Patterson stated that there were never any group meetings held with the department directors to discuss the situation. Interim Manager Miller stated that he is not sure what transpired previously but emphasized that communication is key. He added that, for future budgets, it would be advisable to implement a freeze on all purchases, requiring Council review and approval before any expenditures are made. Council would have to unfreeze funds for every project, no matter what it is for. Mayor Irwin asked that the contract for landscape be reconsidered. She said the average cost of onboarding a new base level employee is approximately $70,000 with benefits. Public Works Director Patterson said it should be added back in to Streets and Parks. Vice Mayor Beus stated that it's a matter of perception, questioning why the Town is contracting out maintenance for small parks when we have a Parks Department. Mayor Irwin responded that she believes it actually costs the Town more to perform the maintenance in-house. Vice Mayor Beus noted that he asks each year how much more it would cost the Town in staffing if we were to handle the maintenance ourselves. Council Member Heisler clarified that the discussion is not about hiring two additional employees for maintenance, it should be handled by the staff we already have. He pointed out that the Town has a Special Projects crew that may not have any special projects assigned in the near future. He questioned, “So why would we keep a contract with someone locally if we are in the process of cutting positions?” Council Member Heisler emphasized that he does not want to eliminate staff positions. He would prefer to retain current employees and have them perform the necessary work. While he acknowledged that the contractor may argue they are the more cost-effective option, he stated that this isn't the core issue today. If the contract is retained, it could result in the need to lay off a few Town employees, which he does not support. Minutes of the Town Council Budget Work Session – June 11, 2025 Page 7 Mayor Irwin also pointed out that the Town is currently contracting for engineering services, despite having a qualified Professional Engineer (P.E.) on staff who has not been utilized. Interim Manager Miller responded that, given the challenges the Town is facing with this year’s budget, eliminating contracts is one of the most effective ways to reduce expenses. He stated that cutting the landscaping contract at this time is a wise and fiscally responsible decision. He also added that he plans to work more closely with Director Patterson to review project timelines and staffing needs Interim Town Manager Miller will look into hiring a third party to help the Town complete the budget process. It was decided to hold a Special Meeting on July 10th at 4:00 p.m. to adopt the Tentative Budget for FY2025-2026. There being no further business at this time, the Work Session was adjourned at approximately 11:45 a.m. __________________________ Stephanie Irwin, Mayor ATTEST: ____________________________ Kristi Salskov, MMC, CPM Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Budget Work Session of the Town Council of Pinetop-Lakeside, Arizona, held on the 11th day of June 2025. I further certify that the Work Session was duly called and held and that a quorum was present. Dated this 11th day of June 2025. _____________________________ Kristi Salskov, MMC, CPM Town Clerk Meeting Date: July 10, 2025 Agenda Item #: C.4 Subject: Consider Approval of the Town Council Regular Meeting Minutes held on June 19, 2025.  MINUTES OF THE REGULAR MEETING OF THE HONORABLE TOWN COUNCIL OF THE TOWN OF PINETOP- LAKESIDE, ARIZONA, HELD ON THURSDAY, JUNE 19, 2025, IN THE TOWN COUNCIL CHAMBERS LOCATED AT 325 W. WHITE MOUNTAIN BOULEVARD, LAKESIDE, AZ 85929  Roll Call The following Council Members were present: Name Position Stephanie Irwin Mayor Sterling Beus Vice Mayor Taber Heisler Council Member Jerry Smith Council Member Harry Turner Council Member Todd Fernau Council Member Jeff Phillips Council Member Staff Present: Name Position Kristi Salskov Town Clerk Dan Barnes Chief of Police-PLPD Matt Patterson Public Works Director Jeremiah Loyd Community Development Department Betsy Peck Library Director Tony Alba Community Services Director Stacy MacArthur Accountant Annie DeRosier Marketing Specialist Rob Hephner Creative Services The following Planning and Zoning Commissioner was present: Name Position David Westly Planning and Zoning Commissioner Mayor Irwin called the Regular Meeting of the Pinetop-Lakeside Town Council to order at 6:00 p.m. Minutes of the Town Council Regular Meeting. June 19, 2025. Page 2  Pledge of Allegiance and Invocation Mayor Irwin led the Pledge of Allegiance to the Flag. The Invocation was offered by Nathan Heller. The invocation was followed by a moment of silence in honor of two Arizona Rangers that lost their lives last week. B. Call to the Public Mayor Irwin called for public comments. Ken Cail offered the following comments, “Mayor Irwin and Town Council, Thank you for the opportunity to speak. I have two issues I would like to address. The first is a dog park for Pinetop-Lakeside. Currently, the communities of Round Valley, Show Low, Snowflake, Holbrook, Payson, and Globe all have dog parks, each built at costs well below the estimated $450,000 projected for a Pinetop-Lakeside dog park, and with significantly lower anticipated monthly maintenance costs than our estimate of $11,953.92 for seven months. Dog parks are a popular amenity for communities, and I suggest the Town consider forming a committee of key stakeholders as it begins researching this idea. Additionally, none of the nearby parks actively advertise their existence. With our extensive trail system, Pinetop-Lakeside could position itself as Arizona’s premier dog vacation destination, helping to boost local tourism. The second issue is full hand recounts, which are standard practice in many industrialized nations. Using both voting machines—for speed and efficiency—and open, bipartisan full hand recounts increases the integrity and security of election results. For example, in RAM Pole 35, a voting precinct in Rockland County, New York, Donald Trump received 552 votes while Kamala Harris received zero. This result became official based on pre- and post-election testing and the standard 3% audit. However, in that same election, a Town ballot race saw Democrat Kristen Gillibrand receive 331 votes and easily defeat her Republican opponent. A request for a full hand recount of those ballots has been awaiting judicial approval since January. Should a similar request arise in Navajo County, I recommend the Town Council support open, bipartisan full hand recounts as a matter of election security and public trust. Thank you for your time.” Minutes of the Town Council Regular Meeting. June 19, 2025. Page 3 Todd Karcher offered the following comments, “Thank you very much for having me today. I would like to talk about a conditional use permit. First of all, my name is Todd Karcher, and I’m with Zoey’s Adventures. Zoey’s Adventures is located at 900 E. White Mountain Blvd. I believe you’re all familiar with the old gas station that was vacant for quite some time—over eight years. We came in and developed that property, and what we want to provide out of that location is horseback riding. I formed the company about a year ago, and we’re happy to announce that our grand opening will be Friday, the 27th. We’re very excited about that. We’ve invested a lot into developing the site and are looking forward to building a successful business. The final step to getting our business fully operational is obtaining a conditional use permit. We are fully licensed, have a business license, are insured, and are respectfully asking for your approval to become a permanent part of this community. This company truly wants to give back to the community. I’ve worked hard to improve the buildings both on and around the property. While I don’t own the property, I do have a long-term lease. James and Don Taylor are the property owners. I currently have a five-year lease with a two-year option to purchase, which I fully intend to exercise. So, that is what I’d like to speak with you about tonight.” C. Consent Agenda Mayor Irwin announced consideration of the Consent Agenda and explained that all items listed would be acted upon by a single vote of the Council, unless a member of the Council asked that specific items be removed from the Consent Agenda, discussed, and voted upon separately. Vice Mayor Beus moved to approve the Consent Agenda. Council Member Smith seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. Minutes of the Town Council Regular Meeting. June 19, 2025. Page 4 C.1 Consider Approval of the Minutes of the Town Council Special Meeting held on May 28, 2025. Vice Mayor Beus moved to approve the Minutes of the Town Council Special Meeting held on May 28, 2025. Council Member Smith seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. C.2 Consider Approval of the Minutes of the Town Council Special Meeting held on June 5, 2025 Vice Mayor Beus moved to approve the minutes of the Town Council Special Meeting held on June 5, 2025. Council Member Smith seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. C.3 Consider Approval of the Minutes of the Town Council Regular Meeting held on June 5, 2025. Vice Mayor Beus moved to approve the minutes of the Town Council Regular Meeting held on June 5, 2025. Council Member Smith seconded the motion and by show of hands the following vote was recorded: Minutes of the Town Council Regular Meeting. June 19, 2025. Page 5 AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. C.4 Consider Approval of the Minutes of the Town Council Special Meeting held on June 6, 2025. Vice Mayor Beus moved to approve the minutes of the Town Council Special Meeting June 6, 2025. Council Member Smith seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. D. Business Before the Council D.1 Consideration of Resolution No. 25-1777, Entering into an Intergovernmental Agreement Regarding Northeastern Arizona Law Enforcement Training Academy (NALETA) and the Town of Pinetop- Lakeside, Acting by and through the Pinetop-Lakeside Police Department. Chief Barnes provided an overview of the proposed changes to the Intergovernmental Agreement (IGA) with the Northern Arizona Law Enforcement Training Academy (NALETA). Minutes of the Town Council Regular Meeting. June 19, 2025. Page 6 The updated agreement includes modifications to the roles and responsibilities of both participating and non-participating agencies. Notably, it introduces new funding structures to help offset the cost of supervisory personnel assigned to oversee classes and recruit training officers—typically one to two, depending on the size of each academy class. The Local Police Chiefs Association collaborated closely with NALETA, the Academy, and Northland Pioneer College to revise the Agreement in a way that best supports all participating agencies. Under the new agreement: • Participating agencies will pay an annual fee of $10,000, which grants full access to the training facility and allows an unlimited number of officers or recruits to attend the academy. • Non-participating agencies will pay a base fee of $2,500, plus $4,000 per recruit enrolled in the academy. At this time, the Town of Pinetop-Lakeside has elected to remain a non-participating agency, as we do not currently anticipate sending any cadets to the academy. However, the Town has budgeted for the base fee and the potential cost of training up to two cadets, should the need arise during the fiscal year. Council Member Heisler moved to approve Resolution No. 25-1777, authorizing the Mayor to enter into an Intergovernmental Agreement pursuant to A.R.S. §11-952 between the Navajo County Community College District dba Northland Pioneer College and the Town of Pinetop-Lakeside to provide Northeastern Arizona with a Police Academy, Northeastern Arizona Law Enforcement Training Academy (NALETA) that can provide Arizona Peace Officer Standards and Training (AZPOST) to students who meet AZPOST qualifications and are sponsored by a Law Enforcement agency. Vice Mayor Beus seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. Minutes of the Town Council Regular Meeting. June 19, 2025. Page 7 D.2 Discussion and Consideration of Resolution No. 25-1778, Approving a New Street Name, “E. Gabe Lane” Within the Limits of Pinetop-Lakeside. Public Works Director Patterson provided a brief background on the Gabe family and their long-standing contributions to the community. He noted that it is both appropriate and meaningful that the new street associated with the Teacherages Project will bear the Gabe family name. Director Patterson explained that the matter is being presented to Council for approval due to the proposed length of the new road. The Teacherages Project has requested the Town’s assistance in constructing the roadway. Under the proposed arrangement, the project developers will provide the necessary materials, while the Town will perform the blading and grading work. This request aligns with the existing Intergovernmental Agreement (IGA) between the Town of Pinetop-Lakeside and the Blue Ridge Unified School District and represents a collaborative opportunity to support local educational infrastructure. Council Member Heisler asked if the street is East Gabe Lane or E Gabe Lane. The reason this matters is for 911 purposes and finding an address quickly. Director Patterson said he would check into that. (Town Clerk verified and the address is East Gabe Lane. Or E. Gabe Lane). Vice Mayor Beus asked Director Patterson if he knew when the residences would be complete. Director Patterson did not know the project completion dates. Mayor Irwin moved to approve Resolution No. 25-1778 adopting a new street name “E Gabe Lane”, within the Town of Pinetop-Lakeside Town limits. Vice Mayor Beus seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. Minutes of the Town Council Regular Meeting. June 19, 2025. Page 8 D.3 Discussion, Information and Possible Legal Action Regarding an Employment Agreement with Richard Miller for the Position of Interim Town Manger. A.(1)(3)(4) Upon a public majority vote of the members constituting a quorum, a public body may hold an executive session but only for the following purposes: 1. Discussion or consideration of employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee or employee may demand that the discussion or consideration occur at a public meeting. The public body shall provide the officer, appointee or employee with written notice of the executive session as is appropriate but not less than twenty-four hours for the officer, appointee or employee to determine whether the discussion or consideration should occur at a public meeting. 3. Discussion or consultation for legal advice with the attorney or attorneys of the public body. 4. Discussion or consultation with the attorney of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation. If Council votes to enter into executive session, they will reconvene the open meeting to take action on item D.3 Vice Mayor Beus moved to enter into Executive Session. Council Member Heisler seconded the motion and by show of hands the following vote was recorded: AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. Minutes of the Town Council Regular Meeting. June 19, 2025. Page 9 Town Council entered into Executive Session at approximately 6:18 p.m. Town Council reconvened the Regular Meeting at approximately 7:05 p.m. Mayor Irwin asked Town Clerk Salskov to explain the amendments to the Employment Agreement for Interim Town Manager Rick Miller. Town Clerk Salskov presented the following proposed adjustments to the Employment Agreement for Interim Town Manager Richard “Rick” Miller. Section 4 Administrative Time The original reference to "Personal Time Off (PTO)" will be revised to "Administrative Time," as the Town does not utilize the term "PTO." Under the revised language, Mr. Miller will be granted 120 hours of Administrative Time, effective the date of his appointment as Interim Town Manager. If Mr. Miller resigns, retires, or is terminated prior to completing 12 months of service, he will not be eligible for payout of any unused Administrative Time. This time will also not roll over beyond the initial 12-month period. Upon completing one year of service, Mr. Miller will be granted an additional 120 hours of Administrative Time. If he resigns, retires, or is terminated after completing the 12-month period, any unused Administrative Time will be paid out at that time. Sick and vacation leave will accrue at the standard rate for employees with less than one year of service. Section 5 – Automobile Allowance: Mr. Miller will receive a $500 monthly vehicle allowance. He will be responsible for all costs associated with fuel, maintenance, and insurance for his personal vehicle while conducting official Town business. Should Mr. Miller be required to travel outside the surrounding area, he may request the use of a Town vehicle to attend official Town functions or events. These revisions were presented to the Town Council for review and approval. Vice Mayor Beus moved to approve the Employment Agreement for Interim Town Manager Rick Miller with the amended terms as stated; and authorize Mayor Irwin to execute the Agreement once amended. Council Member Smith seconded the motion and by show of hands the following vote was recorded: Minutes of the Town Council Regular Meeting. June 19, 2025. Page 10 AYES NAYS ABSTAIN Mayor Irwin X Vice Mayor Beus X Council Member Heisler X Council Member Smith X Council Member Turner X Council Member Fernau X Council Member Phillips X Mayor Irwin then declared the motion passed unanimously. Adjournment Mayor Irwin There being no further business at this time, the regular meeting was adjourned at approximately 7:09 p.m. ___________________________ Stephanie Irwin, Mayor Mayor ATTEST: ________________________ Kristi Salskov, MMC, CPM Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting of the Town Council of the Town of Pinetop-Lakeside, Arizona, held on the 19th day of June, 2025. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 19th day of June, 2025. _________________________________ Kristi Salskov, MMC, CPM Town Clerk