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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 10, 2013 <br /> Action Agenda <br /> Item No. 6-e <br /> SUBJECT: Approval of Financing Arrangement and Fund Balance Appropriation for <br /> Orange Rural Fire Department No. 1, Inc. to Purchase a Replacement Fire <br /> Truck <br /> DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y/N) No <br /> Services <br /> ATTACHMENT (S): INFORMATION CONTACT: <br /> Attachment 1. Letter from Orange Rural Clarence Grier, (919) 245-2151 <br /> Fire Department No. 1, <br /> Inc. Board of Directors <br /> President <br /> Attachment 2. November 14, 2013 Public <br /> Hearing Notice <br /> Attachment 3. November 14, 2013 Public <br /> Meeting Notes <br /> Attachment 4. Fire Service Agreement <br /> Attachment 5. Certificate of Approval <br /> PURPOSE: To approve a request from Orange Rural Fire Department No. 1, Inc. to enter into <br /> a financing arrangement to purchase a fire truck, authorize the Board of Commissioners' Chair <br /> to sign the appropriate documents related to the financing arrangement, and appropriate <br /> $70,000 from the District's County-held fund balance. <br /> BACKGROUND: In the attached letter (Attachment 1) addressed to Orange County Budget <br /> Office, Jeff Roberts, President of the Orange Rural Fire Department No. 1, Inc. indicated the <br /> department's intent to purchase a replacement fire truck. The department will purchase a 2014 <br /> Sutphen Engine to replace its current 1987 LTI truck. The President confirmed that the <br /> department went through a competitive bid process and awarded the bid to Sutphen <br /> Corporation. <br /> According to Attachment 1, the purchase price of the truck totals $490,251. The Department's <br /> Board of Directors agreed to borrow up to $375,000 from CommunityOne Bank and to pay the <br /> remaining $115,251 from the Department's capital reserve. The interest rate for the 5-year note <br /> is 3.29 percent with monthly payments of $6,790. The total repayment, including principal and <br /> interest, equals $407,400. It is important to note that these figures may vary slightly depending <br /> upon the actual loan closing date. <br />