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Home My WebLink AboutAgenda - 09-02-2021; 8-g - Approval of Financing Arrangements for White Cross Fire Department to Purchase Fire Truck and Associated Equipment 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 2, 2021 Action Agenda Item No. 8-g SUBJECT: Approval of Financing Arrangements for White Cross Fire Department to Purchase Fire Truck and Associated Equipment DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. July 8, 2021 Public Hearing Gary Donaldson, 919-245-2453 Notice Rebecca Crawford, 919-245-2152 Attachment 2. Notes from July 8, 2021 Public Hearing Attachment 3. Fire Service Agreement Attachment 4. Certificate of Approval PURPOSE: To approve White Cross Volunteer Fire Department (WCFD)entering into a financing arrangement to purchase a replacement fire engine truck and associated equipment and authorize the Board of Commissioners' Chair to sign the appropriate documents related to the financing arrangements. BACKGROUND: WCFD intends to purchase a replacement fire truck and associated loose equipment. The new fire truck will replace a 24-year-old fire engine. The department went through a competitive bid process and awarded the bid to 4-Guys, Inc. The purchase price of the truck is $531,839, and the cost of loose associated equipment will be $30,000 for a total cost of$561,000, which will be borrowed from the United States Department of Agriculture (USDA). The truck is projected to be delivered in 2022. Volunteer fire departments are required to obtain Board of County Commissioner approval of such purchases only when they use tax-exempt debt financing to pay for purchase. Volunteer fire departments are not mandated to obtain Board of County Commissioner approval when making purchases that do not require debt financing. 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 arrangement. The department has completed these required steps to comply with Section 147: • Conduct a public hearing — On July 8, 2021, WCFD held a public hearing regarding the purchase. WCFD advertised the hearing in The Herald-Sun (Attachment 1). Per the hearing notes on Attachment 2 of this abstract, no individuals signed up for comment or made comment when the floor was opened during the hearing. 2 • Obtain approval of the "applicable elected representatives" — In accordance with Section 147, the Board of County Commissioners must approve the Department's plan to enter into the debt arrangement. This approval does not create liability on the part of Orange County nor does it make the County responsible for the repayment of any debt assumed by the fire department. The approval provides a mechanism for the Commissioners to acknowledge that, through this financing arrangement, the Fire Department is pledging use of the Fire Tax District's tax dollars to repay the loan. In order to comply with this IRS requirement, the Chair of the Commissioners must sign the Fire Service Agreement and Certificate of Approval for the district (Attachments 3 & 4). FINANCIAL IMPACT: WCFD plans to finance the entire cost of the truck of $561,000. The Department Board of Directors has agreed to a 20-year loan at the fixed rate of 2.3% APR with the USDA. The department does not anticipate the purchases will cause an increase in its current district tax rate. 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: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board: 1. Approve White Cross Fire Department entering into a financing arrangement to purchase a replacement fire truck and associated loose equipment; and 2. Authorize the Board of County Commissioners' Chair to sign the appropriate documents related to the financing arrangements. Attachment 1 3 DailyBeaufort Gazette The Herald-Rock Hill el Nuevo Herald-Miam i Sun New5-Myrtle Beach Belleville News-Dernocrat HeraldSu n-Durham Modesto,Bee The News Tribu ne Tacoma Bellingham Herald Idaho Statesman Raleigh Nekvs&Observer The Telegraph-Macon Bradenton Herald Island Packet The Olympian San Luis Obispo Tribune Charlotte Observer Lexington Herald-Leader Fort Worth Star-Telegram Wichita Eagle Columbus Ledger-EnquiFer Merced Sun-Star The Strite-Columbia Fresno Bee Miami Herald 'Sun Herald-Biloxi AFFIDAVIT OF PUBLICATION Account# Order Number Identification Order PO Amount Cols Depth 57600 83522 Print Legal Ad-IPL0028498 $97.50 1 14 L Attention: Jamal Nasseri STATE OF NORTH CAROLINA White Cross Vol.Fire Department COUNTY OF WAKE 5722 Old Greensboro Road Before the undersigned,a Notary Public of Dallas Chapel Hill,NC 27516 County,Texas,duly commissioned and authorized to administer oaths,affirmations,etc.,personally appeared Crystal Trunick,who being duly sworn or affirmed,according to law,doth depose and say that he Notice of Public Bearing For -- p or she is Accounts Receivable Specialist of the News& White Cross Vol.Fire Depart- Observer Publishing Company,a corporation organized ment The White Cross Volunteer Fre De- and doing business under the Laws of the State of North partment will be holding a public Carolina,and publishing a newspaper known as The hearing to discuss the purchase of new fire engine. The hearing will bee ; Durham Herald-Sun,Durham and State aforesaid,the held on July Sth,at 6 pm. The meet- said newspaper in which such notice,paper,document, Ing will be located at White cross Vol. or legal advertisement was published was,at the time of Fire Station 41,5722 Old Greensboro Road Chapel Hill NC,27156.For more each and every such publication,a newspaper meeting information please call 919-942-1194. all of the requirements and qualifications of Section 11- JunlPLoo2s49s q Jun 16,20 2021 597 of the General Statutes of North Carolina and was a qualified newspaper within the meaning of Section 1-597 of the General Statutes of North Carolina,and that as such he or she makes this affidavit;and is familiar with the books,files and business of said corporation and by reference to the files of said publication the attached advertisement for White Cross Vol.Fire Department was inserted in the aforesaid newspaper on dates as follows: No.of Insertions: 2 Beginning Issue of: 06/16/2021 Ending Issue of: 06/20/2021 I certify or declare)under penalty of perjury that the foregoing is true and correct. Notary Public in and for the state of Texas,residing in Dallas County IFJV+ Cf MV l Ing 131f7M1 �r Odmhrlr X22 Extra charge for lost or duplicate affidavits. Legal document please do not destroy! 7/8/2021 Gmail-Fwd:Thank you for placing your order with us IPL0028498 4 Gmail Jamal Phillip Nasseri<phillip.nasseri@gmail.com> Fwd: Thank you for placing your order with us IPL0028498 1 message Jamal Phillip Nasseri <phillip.nasseri@wcfire.net> Thu, Jul 8,2021 at 7:01 PM To: phillip com <phillip.nasseri@gmail.com> Sent from my iPhone Begin forwarded message: From:The Legals Adportal <orders@mcclatchy.com> Date: June 15, 2021 at 12:23:21 PM EDT To: phillip.nasseri@wcfire.net Subject:Thank you for placing your order with us IPL0028498 THANK YOU for your ad submission! This is your confirmation that your order has been submitted.Below are the details of your transaction.Please save this confirmation for your records. Job Details Schedule for ad number IPL00284980 Order Number: IPL0028498 Wed Jun 16,2021 Classification: Legals&Public Notices The Herald Sun All Zones Package: RAL-Legal Ads (Durham) Order Cost: $97.50 Sun Jun 20,2021 Payment Type: Visa The Herald Sun All Zones (Durham) Account Details Jamal Nasseri 5722 Old Greensboro Road Chapel Hill, NC 27516 919-942-1194 phillip.nasseri@wcfire.net White Cross Vol. Fire Department Credit Card-Visa"'1351 2 attachments mime-attachment.jpg 34K https://mai1.googIe.com/mail/u/0?ik=67f800e79f&view=pt&search=all&permthid=thread-f%3A 1702650613618151703%7Cmsg-f%3A17047594229733... 1/2 7/8/2021 Gmail-Fwd:Thank you for placing your order with us IPL0028498 Notice of Public Nearing For rJ Whiite Cros3 Vol.Fire Depart- marit The While Qross Volunteer Fire De- partment will to hofdirig a public hearing to discuss the purchase of a new fire erxgine. The hedrlri�will L* held on.Jute 8th,at 6 pm. The meet- ing will ty--located al:White Cross Vol. Fire. Slatkin al,5722 Old Greerst7m €Rrtad Chapel Heil NC.27156. Formioro informahon please call 919-942-1194. V00000000 Puhllcation Cates -n IPL00284980.pdf 19K https://mai I.googIa.com/mai I/u/0?i k=67f800e79f&view=pt&search=all&permth id=thread-f%3A 1702650613618151703%7Cmsg-f%3A17047594229733... 2/2 6 Notice of Public Nearing For White Cross Vol.Fire Depart- ment The White Cross Volunteer Fire De- partment will be holding a public hearing to discuss the purchase of a new fire engine. The hearing will be held on July 8th,at 6 pm. The meet- ing will be located at White Cross Vol. Fire Station#1,5722 Old Greensboro Road Chapel Hill NC,27156. For more information please call 919-942-1194. W00000000 Publication Dates ��ek � sst IWWhite Cross Fire Department Public Hearing Minutes: July 08, 2021 Call to order: The White Cross Fire Department (WCFD) Public Hearing was called to order by Chief Nasseri on Thursday,July 08, 2021 at 18:08. At this time, individuals in attendance included Tony Blake, Phillip Nasseri, and Robert Furberg. Opening statement: This public hearing was convened to discuss purchase of a new fire apparatus to replace WCFD's 1997 engine. The cost of the apparatus is approximately $531,000. WCFD intends to finance through the United States Department of Agriculture (USDA). Financing for the 20-year term will be at a fixed rate of 2.3%APR. This purchase will include approximately$30,000 of loose equipment for use on the apparatus. Public comments: No individuals were signed up to speak at the hearing. Chief Nasseri opened the floor for any comments, concerns, or considerations at 18:12. Chief Nasseri acknowledged that no comments were heard by 18:28 and made a motion to adjourn. Tony Blake seconded the motion. The motion to adjourn was unanimously approved. Re Ily ed, Robert Furberg Attachment 3 8 Fire Service Agreement This agreement, dated this day of September, 20 , by and between White Cross Fire Department, 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 White Cross Fire District is a designated fire district with prescribed boundaries pursuant to NCGS § 153A-233; 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: primary firefighting responsibilities (area of responsibility) is White Cross Fire District. 2. 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. White Cross Fire Department By Name Title Orange County By Name Title 9 Attachment 4 ORANGE COUNTY NORTH CAROLINA FINANCE AND ADMINISTRATIVE SERVICES 405 Meadowlands Drive Post Office Box 8181 Phone(919)245-2151 Hillsborough,North Carolina 27278 Fax(919)644-3324 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 White Cross Fire Department of an Agreement in an aggregate principal amount not to exceed $561,000.00 to finance equipment consisting of One (1) New 4-Guys Pumper Fire Engine Truck and associated loose equipment, which will be located at the fire house of the White Cross Fire Department. 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 White Cross Fire Department has provided firefighting and other services for the County for many years and White Cross Fire Department hereby agrees to meet the requirement to continue to provide firefighting and other services for the County. Dated as of - White Cross Fire Department Orange County, NC Tony Blake,President Signature of authorized representative Name and Title An Equal Opportunity/Affirmative Action Employer www.orangecountync.gov