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HomeMy WebLinkAboutAgenda - 05-16-2000-8kORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 16, 2000 Action AgencJ Item No. SUBJECT: Tax Exempt Financing of Two Fire Trucks for Eno Fire & Emergency Services DEPARTMENT: County Manager/Emergency PUBLIC HEARING: (Y/N) No Management ATTACHMENT(S): Resolution 4/16/00 Letter from Eno Chief Certification of 4/10/QO Public Hearing Affidavit of Legal Ad Publication Public Hearing Requirements Imposed on Volunteer Fire Departments INFORMATION CONTACT: Rod Visser, ext 2300 Nick waters, ext 3030 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hlll 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approval for the Eno Fire and Emergency Services, Inc. to acquire two replacement fire trucks through atax-exempt financing arrangement with a local financial institution. BACKGROUND: Ena Fire & Emergency Services, Inc. provides fire protection to the residents of the Eno Fire District under contract with Orange County. In their 1999-00 budget submission, Eno's Board of Directors indicated their, intentions to purchase replacements this year far aging pumper and tanker trucks. They plan to enter into a loan agreement for up to $350,000 to help finance the purchase of two pumper tankers. Under federal law, volunteer fire departments can qualify far tax-exempt financing of projects such as this by meeting certain qualifications and administrative steps. Two key provisions are the conduct of a public hearing on the matter, and approval of the financing arrangement by the governing board of the jurisdiction with which the fire department contracts to provide fire service. Following appropriate required public notice, the Eno Board of Directors conducted a public hearing on April 10, 2000 regarding the proposed financing of the vehicle acquisitions. A report on the results of the public hearing has been provided to the Board of Cammissioners with this agenda item. If adopted by the Commissioners, the attached resolution would indicate the Board's approval of the tax-exempt financing arrangement between Eno Fire & Emergency Services and a local financial institution, and would ratify the public hearing held on this subject. FINANCIAL IMPACT: None for Orange County. Approval of this tax-exempt financing arrangement will permit Eno Fire & Emergency Services to acquire the replacement vehicles at a substantial savings in interest costs over the life of the loan. RECOMMENDATION(S): The Manager recommends that the Board adopt the attached resolution approving the tax-exempt financing; subject to final review by the County Attorney. ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION APPROVING ATAX-EXEMPT FINANCING ARRANGEMENT FOR PURCHASE OF TWO PUMPER TANKERS BY ENO FIRE ~ EMERGENCY SERVICES, INC. WHEREAS, Eno Fire ~ Emergency Services has represented to the Board of Commissioners that it needs to acquire two pumper tankers to replace two aging fire trucks, and WHEREAS., Eno Fire & Emergency Services is unable to pay anticipated acquisition costs entirely with funds on hand; and WHEREAS, Eno Fire & Emergency Services is able to borrow funds to complete the financing of these vehicle acquisitions at a favorable interest rate if the loan is approved by the unit of local government with which the fire department contracts to provide fire protection; and WHEREAS, on April 10, 2000, Eno Fire & Emergency Services held a required public hearing on this matter fallowing adequate public notice of that hearing, as outlined in a record of that hearing cerkified by the Secretary to the Board of Directors, and WHEREAS, the Board of County Commissioners desires to approve atax-exempt financing arrangement between Eno Fire & Emergency Services and a qualified lender; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange County that the public hearing is ratified and said financing arrangement is approved. This, the 16th day of May, 2000. G. Eno Fire & Emergency Services, Inc. . SOl9 U.S. 70 Durham, North Carolina 27705 Chief.• Randy Baker April 16, 200 Dear Orange .County Commissioners We are in the process of purchasing two new E-One Pumper Tankers. We are replacing two old trucks, one that has been sold and delivered to another rre department the second, has been sold and will leave when the new trucks arrive in Tune. We are in the process of getting a low interest, tax-eacempt loan. In order to get this low rate of 5.75% a public hearing was held The minutes are attached from the Public Hearing. We .hope that you will approve this resolution so we may receive a low interest loan and save the Citizen's of Orange County thousands of'dollars over a. ten- year period If this loan is not approved we will have to get a higher interest loan of 9.S% to YO.S% and cost the taxparyer ~ID,000 to ~IS,000 - more in interest over a period of IO years. The closing date with the bank is the the first week in May thus the urgency of this request After this date interest rates maybe dramatically raised Thank you for your prompt attention. Phone: 919-383-5967 Fay 9I9-309-9905 Sincerely, ~~ R.L. Baker Chief Cc: President Wayne Paschall 5 Pursuant th published notice, Eno Fire & Emergency Services, Inc, held a public hearing on April 10, 2000, at 7:00 P.M. in the Meeting Room of the Eno Fire Station, 1599 US 70, Durham N.C. 27705. Mr: Wayne Paschal! called. the hearing to order at 7:11 P.M:. The following is a list of persons who spoke at th® hearing, and a summary of their comments: None There being no persons wishing to speak, Mr. Paschall r fled an end to the hearing at 7:13 P.M. The foregoing constitutes a complete and accurate summary of the proceedings at a public hearing held, by Eno Fire ~ Emergency Services, Inc. at the time and place indicated above. Dated this 11~' day of April, 2000. I~~1 CScC) Secneta ,Eno Fire 8 Emergency Services, Inc. 3" d .J AFFIDAVIT OF PUBLICATION State of North Carolina County of Durham " 176zu1a B. Miner-being duly sworn says "tTiat slie'is tFie "'"~` ~ - - Principal Clerk of The Durham Herald Ca., Inc., publishers of The Herald-Sun, a newspaper published.in and of general circulation in said County, and that a native of which the annexed is a true copy, was published in said newspaper one time on the 28th day of March, 2000. r ~. r Principal Clerk. Sworn to and subscribed before me this 28th day of March, 2000. ~~ ~ N tart' ublic My commission expires December 16, 2001. Durham County, North Carolina r-. ~~~A~~ ~s~ ~°u$~~c .. 6 I Notice aF Public Wearing Condmvng Proposed Finandnggy of up to 5350,OOD Sew Fire 8 • Emergency n-iees, Ina far Two PumpedTanksrs Protect PI.E.45ii TAIL NOTICE that Ena • Fire , , d, Ernerg~ ~ meat, 5019 u.5. iv r., Durham, Marlh Carolina in the upstairs meeting The purpose of the public heanrrg a to take pu6lie comment ono proposal for the Fire Department to 6ndtice to' ~350,t]tI6 for two (2~1 pumper~onksr • firo tru The Fro De- partment rapeds that the financed prop arty w,Tl ba I mem en ms fr- noncirtg, the oartion or nature • of the proieet`_ ar may appear at fhe pubNc haarirrg. Interested par. sons may alas submit writ ten, comments on the Suh- {ed of the hearing or may o6lain addttionaS in- Fo Your Informat'on 7 1 PIIBLIC BARING REQDIREI-N~NTS I1~OSBD ON - VOLUNTE$R FIRE D~SPARTNB?~ITS BY THE TECffi+ilc'~-r• coRRECTZONS FILL (IDt4333 PASS$D BY CONGRESS Iii OCTOBER, 19$8 In -order for the interest on an obligation (such as a lease/purcha contract) of a qualified volunteer fire department to be exempt from feder income tax, public hearing requirements. must be met as follows:.. 1. The obligation must be approved (prior„~o execution) by the governmental unit with whom the VFD has a written agreement to provide firefighting services: This approval can be given by: a) the applicable elected representative of the governmental unit (such-as a mayor, county board president, etc.).; . b) the legislative body of the governmental unit; or,. c) any other elected official designated b~ the chief elected official. 2. Prio to' ov a public hearing must be held. The applicable elected representative or the legislative body of .the governmental unit may appoint any person•ty conduct the public hearing. It is of ec representative of public hearing or for a report to b vote need not be attendees is not i ~ for the legislative body or the elected the governmental unit to conduct, the to be present, and it is nat necessary e submitted to the legislative body. A taken and approval of the; public or ''squired - 3. o t c he in (to give residents cf the com®unity an opportunity to express their views) notic® must be given. This would generally involve publi$hinq the notice in a newspaper of. general circulation in the locality of the governmental unit at least 14 days prior to tha h®arinq. The notice would generally describe the time and place of the hearing, along with a descript?.on of the issue (i.e., consideration of a lease/purchase contract to acquire an $mergency One fire truck). This summary represents our interpretation of the lair and is not intended be relied upon by volunteer fire departments or others. Such persons.shou consult their own tar and legal advisors.