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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 6, 2014 <br /> Action Agenda <br /> Item No. 6-j <br /> SUBJECT: Approval of Financing Arrangement for New Hope Volunteer Fire Department <br /> of Orange County, Inc. to Purchase a Replacement Tanker Truck <br /> DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y/N) No <br /> Services <br /> ATTACHMENT (S): INFORMATION CONTACT: <br /> Attachment 1. Letter from New Hope Clarence Grier, (919) 245-2151 <br /> Volunteer Fire Department <br /> of Orange County, Inc. <br /> Board of Directors <br /> President <br /> Attachment 2. October 7, 2013 Public <br /> Hearing Notice <br /> Attachment 3. October 7, 2013 Public <br /> Meeting Notes <br /> Attachment 4. Fire Service Agreement <br /> Attachment 5. Certificate of Approval <br /> PURPOSE: To approve a request from New Hope Volunteer Fire Department of Orange <br /> County, Inc. to enter into a financing arrangement to purchase a Tanker truck, and authorize the <br /> Board of Commissioners' Chair to sign the appropriate documents related to the financing <br /> arrangement. <br /> BACKGROUND: In the attached letter (Attachment 1) addressed to Orange County Financial <br /> Services, Howard Pratt, Board President of New Hope Volunteer Fire Department of Orange <br /> County, Inc., indicated the department's intent to purchase a replacement Tanker truck. The <br /> department will replace its current aging Tanker truck. The Fire Chief confirmed that the <br /> department went through a competitive bid process and awarded the bid to 4 Guys Fire Trucks. <br /> According to Attachment 1, the purchase price of the truck totals $261,996. The Department's <br /> Board of Directors agreed to borrow $160,000 from the Local Government Federal Credit Union <br /> and to pay approximately $100,000 as a down payment for the truck from the Department's <br /> Capital Reserves. The interest rate for the 10-year loan is 2.75% percent with monthly <br /> payments of approximately $1,526.58. The total repayment, including principal and interest, <br /> equals $183,189.60. It is important to note that these figures may vary slightly depending upon <br /> the actual loan closing date. <br />