HomeMy WebLinkAboutAgenda - 06-05-2012 - 7fORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 5, 2012
Action Agenda
Item No.
SUBJECT: Authorization to Proceed with Development of New Fire Protection Contracts
with the North Chatham Fire Department, the Town of Carrboro, and the Town
of Chapel Hill
DEPARTMENT: Emergency Services PUBLIC HEARING: (YIN) No
ATTACHMENT(S):
1. North Chatham Volunteer Fire
Department — Fire Protection
Contract
2. Town of Carrboro — Fire Protection
Contract
INFORMATION CONTACT:
F. R. Montes de Oca, 245 -6100
Annette Moore, 245 -2317
Michael Talbert, 245 -2153
PURPOSE: To approve the recommendation from the Emergency Services Workgroup to
proceed with the development of New Fire Protection Contracts with the North Chatham Fire
Department, the Town of Carrboro, and the Town of Chapel Hill for implementation by July 1,
2013, and to authorize the Chair to send letters to the three entities providing notice of plans to
terminate the existing fire protections contracts as of June 30, 2013.
BACKGROUND: On September 13, 2011 the Board was presented options for changing fire
districts to improve insurance ratings for the 1,156 properties located outside of six road miles
from the closest fire station located in their fire insurance district. This is an issue brought on by
modern technology and the property insurance underwriters. All of the solutions discussed by
the Emergency Services Workgroup are intended to improve fire insurance ratings for
homeowners outside of six -road miles of the fire station that provides coverage to the property.
However, each solution will have unintended consequences. The Southern Triangle Fire
Protection District has 112 homeowners that are located outside of six -road miles of the fire
station that provides coverage to the property.
The Fire Protection Contract with the North Chatham Fire Department is for both the Damascus
and Southern Triangle Fire Districts and provides fire protection services within the boundaries
of Damascus and Southern Triangle Fire Districts. The contract renews automatically each
fiscal year on the 1St day of July, and continues in effect until terminated by either party hereto,
upon 365 days written notice to the other party.
Town of Chapel Hill Fire Station # 5 is located less than three road miles from the 112
properties in the Southern Triangle Fire District and less than 5 road miles from all parcels
within the Southern Triangle Fire district.
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The Emergency Services Workgroup has reviewed several possible solutions with the Town of
Chapel Hill Fire Department and the Workgroup has discussed these possible solutions. The
Emergency Services Workgroup has expressed a strong interest in finding a reasonable
solution for the 112 homeowners and is considering the possible solutions listed below:
1. Do nothing and everything will stay the same?
2. The 112 property owners could petition the Town for voluntary annexation into the Town
of Chapel Hill and fire protection would be provided by the Town.
3. Make no changes to the existing Southern Triangle Fire Protection District, levy one tax
rate for the entire district and split the district into two service areas. The 112
homeowners could receive fire protection from the Town of Chapel Hill, and remainder of
the district would continue to receive fire protection from the North Chatham Fire
Department.
4. Do not levy a property tax in Southern Triangle Fire Protection District and split the
existing fire protection district into two service districts. The 112 homeowners would
comprise one service district with fire protection services provided by the Town of Chapel
Hill, and the remaining area will make up the second service district and fire protection
services would be provided by the North Chatham Fire Department.
The Emergency Services Workgroup reviewed the four possible solutions outlined above at its
meeting on April 10, 2012 and came to the conclusion that there was not adequate time before
June 30, 2012 to complete the steps necessary for a short-term solution to be approved by the
Board of Commissioners, the Town of Chapel Hill and the North Chatham Fire Department.
The Emergency Services Workgroup expressed a strong interest in recommending a long -term
solution for the 112 homeowners for July 1, 2013.
On May 10, 2012 a meeting was held with some of the 112 homeowners located outside of six -
road miles of the N Chatham Fire Department. These homeowners fully understand the
insurance issues and the direct financial impact on each property owner. The homeowners
encouraged Orange County to find a reasonable a long -term solution for all property owners in
the Southern Triangle Fire District by July 1, 2013.
FINANCIAL IMPACT: There is no financial impact associated with proceeding with the
development of New Fire Protection Contracts with the North Chatham Fire Department, the
Town of Carrboro, and the Town of Chapel Hill for implementation by July 1, 2013. There is
also no financial impact associated with authorizing the Chair to send letters to the three entities
providing notice of plans to terminate the existing fire protections contracts as of June 30, 2013.
New contracts will be developed for Fiscal Year 2013 -14.
RECOMMENDATION(S): The Manager recommends the Board approve the recommendation
from the Emergency Services Workgroup to proceed with the development of New Fire
Protection Contracts with the North Chatham Fire Department, the Town of Carrboro, and the
Town of Chapel Hill for implementation by July 1, 2013, and authorize the Chair to send letters
to the three entities providing notice of plans to terminate the existing fire protections contracts
as of June 30, 2013.
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NORTH CAROLINA
ORANGE COUNTY CONTRACT AND AGREEMENT
THIS CONTRACT AND AGREEMENT,. made and entered into this the
day of j w� , 1992, by and between the COUNTY of
ORANGE, hereinafter referred to as County and the North Chatham
Volunteer Fire Department, Inc., hereinafter referred to as Fire
Department;
• - W I T N E S S E T H:
THAT WHEREAS, North Carolina General Statutes 69 -25.5
provides that counties may provide for fire protection in a fire
district by contracting with an incorporated nonprofit volunteer or
community fire department; and
WHEREAS, Damascus and Southern Triangle Fire Districts are
special tax districts created pursuant to Chapter 69 of the North
Carolina General Statutes; and
WHEREAS, Fire Department is a; nonprofit corporation
organized for fire protection purposes; and
WHEREAS, County has elected to provide fire protection and
fire prevention services and optional first responder services
authorized by North Carolina General Statutes 69 -25.7 (hereinafter
"services "), within the boundaries of the Damascus and Southern
Triangle Fire Districts, by contracting with Fire Department to
provide services; and
WHEREAS, Fire Department has the ability to provide and is
willing to be the contract provider of services within the '
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boundaries of Damascus and Southern Triangle Fire Districts; and
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WHEREAS, County levies and collects the taxes and is
responsible for appropriating said funds for the use of the
citizens in the Damascus and Southern Triangle Fire Districts; and
WHEREAS, County desires to establish a renewable contract to
enable Fire Department to make long -range plans;
NOW, THEREFORE, in cOnsideration of the mutual covenants
and premises herein contained, the parties hereto contract and
agree as follows:
I. Each fiscal year, the County will cause to be'levied a
special tax not exceeding 15 cents ($0.15) per one hundred dollar
valuation of all real and personal property subject to taxation in
the Damascus and Southern Triangle Fire Districts unless otherwise
limited by law and /or a vote of the people; and will collect said
tax as a part of the ad valorem tax collections of the County.
The amount levied annually shall be based on a tax rate approved
by the Board of County Commissioners following review of the needs
projected in the budget estimate submitted to the county by the
Board of Directors. of the Fire Department and shall be'sufficient
to. provide an appropriation to Firs Department of Fifty Thousand
and No /100 Dollars ($50,000..00) less the amount equal to all
Payments received by Fire Department from any municipality
Pursuant to M.C. Gen. Stat. 160A -31.1, 160A -37.2 and 160A -49.2
(proportionate share of debt service) and N.C. Gen. Stat. 160A-
37.1 and 160A -49.1 (contract between municipality and rural fire
department for fire protection service)..
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2. That a special revenue fund shall be maintained for each
fire district by the County for funds collected as a result of
said special tax in which fund appropriations will be based on the
budget estimates approved by the County Commissioners.
Unappropriated amounts remaining in the revenue fund shall be
carried over to the next fiscal year for fire department use.
3• That all appropriations established by the County
Commissioners will be remitted to the Fire Department in quarterly
payments by the 15th day of the first month of each quarter for
the first three quarters beginning in July and ending on March 31,
and the final quarterly payment will be made based on the Count
Finance Director's estimate of overall tax collections through the
fiscal year end not to exceed the appropriation amount. All late
listing penalties and interest on delinquent taxes associated with
collections will be retained by the County as cost of collections.
4. The Fire Department shall provide the necessary
equipment, personnel, and other resources as determined by the
North Carolina Department of Insurance, Fire and Rescue Service
Division, and the Insurance Service office for all property
located within the Damascus and Southern Triangle Fire Districts,
will strive to achieve and maintain at least a 9S insurance
rating, and will furnish services free of charge to all persons
and individuals within the Districts.
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•' 5• That all funds
paid to the Fire Department by the County
shall be used exclusively by the Fire Department to provide
services within said Districts, and to pay other legitimate
expenses. The Fire Department may provide a first responder
program, if it is provided under the guidelines provided by,Orange
county Emergency Management and under the direction of the
Emergency Medical Services Medical Director to provide basic
emergency medical care to citizens within the fire. districts.
5. The Fire Department shall operate in compliance with all
applicable state and local laws and regulations including the
Local Emergency Planning Committee Hazardous Materials Training
requirements and North Carolina Fire Incident Reporting System,
for which reports shall be submitted to the Fire Marshal's Office
on a monthly basis. The Fire Department further agrees to
annually file with the Fire Marshal's office a current list of its
Board of Directors and a roster of its members with addresses,
telephone numbers, social security numbers; an annual training
report; and a list of fire apparatus including pump and tank size,
and specialized fire suppression equipment, no later than' July 31.
7. The County may inspect all books and accounts of the Fire
Department at any. time, upon reasonable notice. The Fire
Department will present to the County within 90 days of the close
Of each County fiscal year (July l -June 30), an accounting of how
public funds have been expended on the forms provided by orange
County Finance Department.
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8. The Fire Department will comply with County budgeting
Procedures and other procedures provided for by State Law and
agrees to submit annual budget estimates and a supporting letter
of request for a proposed tax rate signed by the Board President
upon approval by the Board of Directors of the Fire Department.
The Emergency Management Office will provide the standard forms
used by county departments for presentation to the Board of
commissioners, in accordance with established county budget
timetables. The Fire Department will use standard line items for
accounting devised or consented to by the County Finance Office.
9. The Fire Department will file with the County Fire
Marshal a true copy of the Articles of Incorporation, existing
Bylaws, standard Operating Procedures, and any changes made
thereto from time to time. Further, the Fire Department agrees to
amend and adopt its charter and bylaws as necessary to meet all
minimum legal requirements for a North Carolina nonprofit
corporation, as allowed in G.S. 55A -1 through 55A -43, with or
Without voting members which charter and bylaws have provisions
enabling citizens of the community to have input in the affairs of
the corporation at least at an annual meeting as described by
G.S. 55A -30 and vesting -in the Board of Directors the authority to
manage the affairs of the corporation.
10. This contract shall renew automatically each fiscal year
on the 1st day of July, and shall continue in effect until
terminated by either party hereto, upon three hundred sixty five
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days (3 65) written notice to the other party. Any contracts
between the County and the Fire Department now in effect, with
respect to the subject matter contained herein, are superseded
upon the effective date of this contract.
11. This contract was written with the laws of the State of
North Carolina in mind. It shall be construed consistent with and
interpreted pursuant to:the laws 'of the state of North Carolina.
IN TESTIMONY WHEREOF, the County has caused this instrument
to be executed by the chairman of the Board of County
Commissioners and attested by the Clerk to the Board of County
Commissioners, and the Fire Department has caused this instrument
to be signed in its name by its President, attested by its
Secretary, and its corporate seal hereto affixed, all by order of
its Board of Directors duly given.
ORANGE COUNTY BOARD OF COMMISSIONERS
BY:
ATTEST: i
C erk)
ATTEST:
(/LJ
�tsec )
,a
(Fire Department)
BY:
{Pr s�dent, Board of °Directors)
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ORANGE COUNTY
NORTH CAROLINA
AMENDMENT TO CONTRACT AND AGREEMENT
THIS AMENDMENT, agreed to this 23d of June, 2004, between Orange County and North Chatham
Volunteer Fire Department, Ina
WITNESSETH:
WHEREAS, Orange County (County) and North Chatham Volunteer Fire Department (Department)
entered Into an agreement on July 28, 1992, whereby Department provides fire protection to persons
and property in the Southern Triangle and Damascus Fire Districts; and
WHEREAS, County and Department wish to continue this agreement at the current level of service; and
WHEREAS, Increasing costs of providing the current level of service to the two fire districts necessitate
a modification to the annual appropriation stipulated in the existing agreement;
NOW, THEREFORE, in consideration of the mutual covenants and premises herein contained, the
parties agree that the CONTRACT AND AGREEMENT dated July 2, 1992, Is amended as follows:
I . The second sentence in paragraph 1 is amended to read: 'The amount levied annually shall be
based on a tax rate approved by the Board of Commissioners following review of the needs
projected In the budget estimate submitted to the County by the Board of Directors of the Fire
Department and shall be sufficient to provide an appropriation to Fire Department of One
Hundred Thirty Four Thousand dollars ($134,000) less the amount equal to all payments
received by Fire Department from any municipality pursuant to N.C. General Statute 160A-3i.1,
160A -37.2, and 160A-49.2 (proportionate share of debt service) and N.C. General Statute 160A-
37.1 and 160A- 49.1(contract between municipality and rural fire department for fire protection
service)."
2. Ali other terms and conditions of. the original agreement shall remain in force.
Executed this the 23d day of June, 2004.
FOR AND ON BEHALF OF ORANGE
Barry acobs alr
FOR AND ON O H
CHATHAM
VOL U FIR PARTMENT
#t eas y, residen
Board of Directors
This instrument has been pre - audited in the manner required by the Local Government Budget and
Fiscatro
Kenneth T. Chavlous
Finance Director
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ORANGE COUNTY
NORTH CAROLINA
AMENDMENT TO CONTRACT AND AGREEMENT
THIS AMENDMENT, agreed to this date of June, 1999, between Orange County and North Chatham Volunteer Fire
Department, Inc.
WITNESSETH:
WHEREAS, Orange County (County) and North Chatham Volunteer Fire Department (Department) entered into an
agreement on July 28, 1992, whereby Department provides fire protection to persons and property in the Southern Triangle
and Damascus Fire Districts; and
WHEREAS, County and Department wish to continue this agreement at the current level of service; and
WR EREAS, inoreasing costs of providing the current level of service to the two fire districts necessitate a modification to the
annual appropriation stipulated in the existing agreement;
NOW, THEREFORE, in consideration of the mutual covenants and premises herein contained, the parties agree that the
CONTRACT AND AGREEMENT dated July 2,1992,, is amended as follows:
The second sentence in paragraph 1 is amended to read: "The amount levied annually shall be based on a tax rate
approved by the Board of Commissioners following review of the needs projected in the budget estimate submitted
to the County by the Board of Directors of the Fire Department, and shall be sufficient to provide an appropriation
to Fire Department of Eighty Thousand dollars ($80,000) less the amount equal to all payments received by Fire
Department from any municipality pursuant to N.C. General Statute 160A -31.1, 160A -37.2, and 160A -49.2
(proportionate share of debt service) and N.C. General Statute 160A-37.1 and 1601 -49.1 (contract between
municipality and rural fire department for fire protection service)."
2. All other terms and conditions of the original agreement shall remain in force.
Executed this the 30th day of June, 1999.
FOP, AND ON 13EHALF OF ORANGE COUNTY
(k,L2�- 111IX
Alice M. Gordon, Chair
FOR AND ON BEHALF OF NORTH CHATHAM
VOLUNTEER FIRE DEPARTMENT
Phil Poythress, Chair-
This instrument has been pre - audited in the manner required by the Local Government Budget and Fiscal Control Act
Kenneth T. Chavious
Finance Director
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STATE OF NORTH CAROLINA
FIRE-PROTECTION CONTRACT
ORANGE COUNTY
This agreement is made and entered into this lst day
of July, 1982, by and between Orange County (hereinafter, "the
County ") and the Town of Carrboro (hereinafter, "the Town ").
WHEREAS, the County has established the South Orange
Fire District and wishes to have fire protection services pro-
vided to the residents and property owners within this district
by the Carrboro Fire Department; and
WHEREAS, the Town has provided fire protection to
the South Orange Fire District in past years and wishes to
continue to provide such services at a fair rate of compensa-
tion in the future; and
WHEREAS, the County and the Town are authorized to
enter this agreement by Article 3A of Chapter 69 of the North
Carolina General Statutes.
NOGG, THEREFORE, the Town and the County hereby agree
as follows:
1. The Town shall, to the best of its ability, furnish
such fire fighting equipment and personnel as the Town deems
necessary for the purpose of providing fire protection to pro-
perty and persons located within the'South Orange Fire District,
'as the boundaries of such district are now constituted or may
hereafter be amended. In accordance with G. S. 69 =25.8, in
providing such fire protection services, the Town shall be sub-
ject to the same immunities it enjoys in the operation of a fire
department within its corporate limits.
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2. The Town's obligation to respond to calls in accordance with this
lement shall be secondary and subbrdinate to the Town's duty to furnish protec-
ion to the residents and property owners of the Town:
3. In consideration of the services described in Section 1, the County
shall pay the Town annually the amount determined as follows:
a. Determine the South Orange Fire District's share of common fire
protection expenses (the "fire district percentagd'). This
shall be equal to the average of the following two percentages:
I.• The percentage derived by dividing the assessed valuation
of the real and personal property within the fire district
by the total assessed valuation of all real and personal
property within the Town of Carrboro and the fire district.
The assessed valuation figures used in this calculation shall
be those used by the County and the Town in budgeting for
the upcoming fiscal year.
2. The percentage derived by dividing the number of fire calls
within the fire district for the prior three years by the
number of calls within the Town and the fire district for
the prior three years. ,
.b.. Add together the fire district percentage of:'
1. The total budget for the fire department as shown in the an-
nual town budget, except that for purposes of this calcula-
tion only one half of-the personnel cost of the Inspector's
position shall be included in the - budget; plus
2. The budgeted figure for debt service on the Town's fire
station; plus
3. A 550,000 general fund contribution amortized over .forty years:
_Z_
C. To the sum. derived in b., add the cost of amortizing over
fifteen years the capital c0st;''88,462 }of the pumper and tanker
acquired by the Town in order to provide service to the fire
district.
4. The Town shall submit to the County by May 15th of each year the
figure derived according to'the procedures set forth in paragraph three so that the
County can use this figure in setting the fire district tax rate. If the Town's
budget is not finally approved by the Board of Aldermen in sufficient time to meet
this dealine, the Town may use the town manager's recommended budget as a basis
for making the calculation required under paragraph three.
5. The.sum provided for herein shall be paid by the County to the
Town in four quarterly installments, one each being due on July 1, October 1,
January 1 and March 1.
6. This contract shall be effective July 1, 1982 and may be cancelled
by either party upon written notice to the other not less than 90 days prior to the
end of the last fiscal year for which fire services are to be provided herein.
This contract is entered into the day and year first above written.
ATTEST:
Sarah C. Y!i11iamson, To Clerk
ATTEST:
4-Paulette Pridgen- i'&FW, erk to the
Board of Commissioners
4har RBOR BY
. unter, Town Manager
ORANGE COUNTY
BY:
O chard E. Whitted, Chairma
Orange County Board of Commissioners
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This Contract has been preaudited in the manner required by the
vernment Budget and Fiscal Contral Act.
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BY: /! /atr�i•�
Wallace H. Harding
Orange County Finance Officer
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