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HomeMy WebLinkAboutAgenda - 03-24-2003 - 8lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 24, 2003 Action Ageea Item No.~i _ SUBJECT: Request to Appropriate Eno Fire Department's Fund Balance for Land Acquisition DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No ATTACHMENT (S): INFORMATION CONTACT: Attachment 1. Eno Fire Department Letter Donna Dean 245-2151 of Request Attachment 2. Map of Property Recently TELEPHONE NUMBERS: Acquired by Eno Fire Hillsborough 732-8181 Department Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To approve a request from the Eno Fire Department Board of Directors to appropriate the District's County-held fund balance to offset costs of property acquisition. BACKGROUND: The Eno Fire Department Board of Directors recently submitted a request to appropriate the district's County-held fund balance to offset property acquisition costs. The property was purchased with the intent of constructing a second fire station in the district. Members of the Board of Directors consulted with staff from the County's Planning Department before finalizing the purchase to ensure that the land was suitable for location of a station. Since 1998-99, the Board of Directors has indicated in its annual budget submissions that one of the department's goals is to construct a second station to better serve residents of the northern end of the district. Several years ago, in anticipation of the need for a future station, the Department established a capital reserve account and each year has set aside a portion of its property tax revenues in the reserve account. This is quite similar to the County's pay-as-you- go approach for some capital projects. In late 2002, the fire department's Board of Directors agreed to purchase 5.49 acres of land near the intersection of Pleasant Green Road and St. Mary's Road (see Attachment 2) for approximately $103,000 including surveys, attorney and recording fees. The transaction occurred in late December 2002. Funds identified for the purchase included the department's capital reserve account- along with the District's fund balance held by the County. Over the-past few years, the District has accumulated approximately $32,621 in its County held fund balance with intentions of using those funds to offset costs of the property. The district paid the remaining costs, $70,379, from its capital reserve account. It is important to note that the current station, located near the intersection of Highway 70 and Pleasant Green Road between Hillsborough and Durham, is located more than five road miles from residents located in the northern portion of the district. This area includes the northeast sections of Pleasant Green Road, St. Mary's Road and secondary roads that intersect with these roads. According to the North Carolina Department of Insurance (NCDOI), property located five road miles or less from a fire station is considered to be in a "Class 9" insurance rate code for fire insurance premiums while property located more than five road miles from a fire station is considered to be in a "Class 10" insurance rate code. A survey of insurance companies indicates that ahomeowner/renter in a "Class 9" rate code might expect to pay approximately 20 percent less in property insurance premiums than a resident located in a "Class 10" rate code. The attached map outlines afive-road mile radius for both the existing fire station as well as the proposed one. After the second fire station is constructed and equipped, NCDOI will inspect and approve that station. Upon approval, that station will extend the boundaries of the insurance district, which will place all of the residents of that area within the five-mile insurance district. Now that the Department has purchased land, the Board hopes to move forward with constructing and equipping Eno Fire Department Station #2 over the next two to three years. While plans are in the conceptual phase at this point, preliminary plans include construction of a three or four bay station to house two vehicles. Due to the infancy of the plans, cost estimates are not yet available. There is potential for the department to apply for Federal grants and low interest Federal loans to offset some portion of the total cost of construction and equipment. Upon completion of the new fire station, there will be a need to equip the new facility. NCDOI requires a minimum of one pumper truck and one tanker per station. Eno currently has three trucks in operation. Once the station is operational, the Department plans to purchase one additional truck and equipment (approximate cost of $300,000) to bring the total available trucks to four and locate two vehicles at each station. Again, there is potential for the Department to apply for grants and loans to offset costs of the equipment purchase. As the Department moves forward with purchasing equipment, County staff, to the extent practicable, will. offer assistance in the bid and procurement process. It is clear that, in order to construct and equip the new station, the Board of Directors foresees a future tax rate increase for property owners in the District. Due to the fact that plans are conceptual at this point, it is difficult to anticipate what that increase may be. As additional information becomes available and plans more concrete, staff will update the Board. FINANCIAL IMPACT: Financial impacts are included in the background information above. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners appropriate $32,621 in County held fund balance for the Eno Fire Department. 3 Eno Fire & Emergency Services 5019 US Highway 70 ?'F~F,~ ~ ~ Durham, NC 27705 11/18/2002 Government Services Annex 208 S. Cameron St. Hillsborough, NC 27278 Attn: Paul Laughton Dear Mr. Laughton, The Board of Directors of Eno Fire Department is requesting the monies we have in the contingency fund. We are requesting this money in order to purchase land so that we can build a station #2 in order to better serve the citizens in our fire district. ~T/hank You, U/Q'¢~ ~P,a~~ta.C~ Wayne Paschall President 'C Lee Williamson Treasurer MARTIN l,1, J~ ~JG/ DR 4 This map contains parcels prepared for the inventory of real property within Text Street Text Orange County, and is compiled from recorded deed, plats, and other public Streets records and data. Users of this map are hereby notified that the aforementioned N Parcels public primary information sources should be consulted for verification of the Major ROadS information contained on this map. The county and its mapping companies assume 1:1 8000 no legal responsibility for the infommation contained on this map. County ~+ ~. ~ Townships Oran a Count GIS Text City Text