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Home My WebLink AboutAgenda - 12-15-2020; 8-f - Approval of Financing Arrangement for Efland Volunteer Fire Company, Inc. To 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 15, 2020 Action Agenda Item No. 8-f SUBJECT: Approval of Financing Arrangement for Efland Volunteer Fire Company, Inc. To Purchase a Fire Engine Truck DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. November 18, 2020 Gary Donaldson, (919) 245-2453 Public Hearing Notice Paul Laughton, (919) 245-2152 Attachment 2. Notes from November 18, 2020 Public Hearing Attachment 3. Fire Service Agreement Attachment 4. Certificate of Approval PURPOSE: To approve Efland Volunteer Fire Company, Inc. entering into a financing arrangement to purchase a fire engine truck and authorize the Board of County Commissioners' Chair to sign the appropriate documents related to the financing arrangement. BACKGROUND: The Efland Volunteer Fire Company, Inc. has indicated its intent to purchase a Pierce Enforcer Pumper fire engine truck at a purchase price of $551,352. The Company went through a competitive bid process and awarded the bid to Pierce Manufacturing, Inc. in Appleton, Wisconsin. Projected delivery date is July 2021. The purchase price of the fire engine truck is $551,352. The Company's Board of Directors agreed to borrow $351,352 from Freedom Financial and the underwriting bank is Community One Bank, and to pay the remaining $200,000 with $100,000 from the district's available fund balance (approved by the Board of County Commissioners at their November 17, 2020 meeting), as well as $100,000 from the Company's capital reserves. Section 147(f) of the Internal Revenue Code of 1986 outlines specific steps that must occur when a tax supported fire department enters into a financing agreement. • Conduct a public hearing — On November 18, 2020, the company held a public hearing regarding the purchase. The Company advertised the hearing in the News of Orange (Attachment 1 of this abstract). Per the Attachment 2 of this abstract, no residents were present at the hearing and the Company did not receive any written comments from residents of the district. • Obtain approval of the "applicable representatives" — In accordance with Section 147(f), the Board of County Commissioners must approve the District's plan to enter into the debt arrangement. This approval does not create liability on the part of Orange County 2 nor does it make the County responsible for the repayment of any debt assumed by the fire district. The approval provides a mechanism for the Commissioners to acknowledge that, through this financing arrangement, Efland Volunteer Fire Company, Inc. is pledging use of the district's tax dollars to repay the loan. In order to comply with this IRS requirement, the Chair of the Board of County Commissioners must sign the Fire Service Agreement (Attachment 3) and Certificate of Approval (Attachment 4). FINANCIAL IMPACT: The total repayment, including principal and interest, equals $383,018.75, with 5-year equal payment amounts of$76,603.75. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. ENVIRONMENTAL IMPACT: No environmental impact associated with this abstract. RECOMMENDATION(S): The Manager recommends that the Board: • Approve Efland Volunteer Fire Company, Inc.'s purchase of a fire engine truck, and • Approve and authorize the Board of County Commissioners' Chair to sign the appropriate documents related to the financing arrangement. 3 NORTH CAROLIN ORANGE COUNTY r AFFYDAVTT OF PUBLICATTON The t:&�VolutCx r;me COMP, Inv, Betore the undersiurted,a Notary Public of said Comity and State,duly 8 �hee to-The eaanrm Ay ofits kfb t Z. ;n �n' iemc �o� commissioncd,qualificd,and authorized by law to admini rcr oatb,pGr= CWCua S35i x5 qo. w�ypul nod to- i eonrmmdx i x ig 31UA ea to -.onr311iy appcjred f}aile T-xlwarJT;w1lu being fini duly swum,deposes arad Taco i� FxId' as ,y 0 rms M;tim at a ]=ou i OWMber 19tii Id. says-that sbo is an auLhorixcd empluyt�e of The New,,of OnTigr-County, �a inUa�aed *-MP]5, � idk in�aal Rzvtx,ue Code 1e7{f}_ILi, engaged in the publication of a newspaper known as Tfte-News vi-Or ngc ing-7t1eherdatT6cEn,,d bTCxtadon U39M us`N, ,[Mans Lrczn4-, County published,issuodL and enwrod as socond class rnail in the City of atavr,oher]],2a2a Hillsburough,in:yid County tW SIale-t1mi she is authorizA to mrake this affidavit and sx,rmi-gtatemertt;[Irat the u4Tt im or uI}ter Inp l aclvcTtis=en 1, a Ernw,copy of vdi ich ir,attached herein,was publ isbtA i rt The Nt;wS of Orange County iv the Ihl"viug dAle(s)= Novtg13bcr 11,2020,and Mai the said rewspaper in which such notice,paper,dncunvt nt,err legal advartiae- inmL was pubIishcd was.at tht,time of crich and every sixh publication, a ottwspo-3per rrmcling alT crf the mpinmcnts and quaiif ations of Section 1-97 of Iltc Gcnml Statutim of North Ca-ulina turd was qualifiod newspa- per%v ith in the oaea,r it1�of St�e[LIM 1-597 of IN--General Statutes of NurLk Carolina. i (Si�7WUX Of parson Inaking RffidHvit) Sworn to rand subxrcbi--d khefcrm me,this 2tid clay of Delcernher,2020_ Kmb,*AC Nutary Pubk Durham Gowtty,NC - hJlyCmmafEsion E)phsA SFAi. rotary i'nblie My{'rf,hltnisgiorl ExpiT+es' P 4 ]E]FLAND VOLUNTEER FIRE DEPARTMENT 3900 Highway 70 Efland North Carolina 27243 November 18,2020 Public Hearing on new Pierce pumper, A notice was public on hearing posted in the News Orange for 11/18/2020 at 1 pm. Due to the Covid 19 crisis,face to interviews were not held my number was posted and asked if there were any questions to please call or text me with any questions on purchase of the new engine. No one attended,called,or texted with any questions. Kevin L.Brooks Chief Efland Volunteer Fire Inc. 5 Fire Service Agreement This agreement, dated this day of , 20 , by and between Efland Volunteer Fire Company, Inc., a body corporate organized under the Laws of the State of North Carolina, the ("Fire Department"), and Orange County, a body politic, the ("Political Subdivision"). WHEREAS, Fire Department is a not for profit organization duly authorized for the purpose of providing firefighting services in an area within the jurisdiction of the Political Subdivision; and, WHEREAS, the parties wish to enter into an agreement setting forth the area and duties of the Fire Department. NOW THEREFORE, the Fire Department and Political Subdivision do hereby agree as follow: 1. Political Subdivision recognizes that Fire Department provides firefighting services to the hereafter generally described area or areas: 2. The area in which Fire Department has primary firefighting responsibilities (area of responsibility) is Efland Fire District. 3. Political Subdivision shall not be liable or responsible for the conduct and activities of Fire Department. IN WITNESS WHEREOF, the parties have had this agreement executed by duly authorized representatives thereof. Efland Volunteer Fire Company, Inc. By Name Title Orange County By Name Title 6 ORANGE COUNTY NORTH CAROLINA FINANCE AND ADMINISTRATIVE SERVICES 200 South Cameron Street Phone(919)245-2151 Post Office Box 8181 Fax(919)644-3324 Hillsborough, North Carolina 27278 Certificate of Approval Section 147(f) Approval and Written Agreement The undersigned Official of Orange County, NC (hereinafter referred to as "County") pursuant to section 147(f) of the Internal Revenue Code of 1986, as amended (the "code"), hereby approves the entering into by Efland Volunteer Fire Company, Inc. of an Agreement in an aggregate principal amount not to exceed $551,352.00 to finance equipment consisting of One (1) New Pierce Enforcer Pumper which will be located at the fire house of the Efland Volunteer Fire Company, Inc. This approval does not in any way constitute any financial involvement or obligation of the County. Furthermore, this document acknowledges that for consideration, the receipt and sufficiency of which are hereby acknowledged, the Efland Volunteer Fire Company, Inc. has provided firefighting and other services for the County for many years and Efland Volunteer Fire Company, Inc. hereby agrees to meet the requirement to continue to provide firefighting and other services for the County. Dated as of Efland Volunteer Fire Company, Inc. Orange County, NC Ronnie McAdams, President Signature of authorized representative Name and Title An Equal Opportunity/Affirmative Action Employer www.orangecountync.gov