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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-k <br /> SUBJECT: Approval of Financing Arrangement for Eno Fire & Emergency Services, Inc. to <br /> 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 Eno Fire & Clarence Grier, (919) 245-2151 <br /> Emergency Services, Inc. <br /> Fire Chief <br /> Attachment 2. January 14, 2014 Public <br /> Hearing Notice <br /> Attachment 3. January 14, 2014 Public <br /> Meeting Notes <br /> Attachment 4. Fire Service Agreement <br /> Attachment 5. Certificate of Approval <br /> PURPOSE: To approve a request from Eno Fire & Emergency Services, Inc. to enter into a <br /> financing arrangement to purchase a Tanker truck, and authorize the Board of Commissioners' <br /> Chair to sign the appropriate documents related to the financing arrangement. <br /> BACKGROUND: In the attached letter (Attachment 1) addressed to Orange County Budget <br /> Office, Bryan Baker, Fire Chief of Eno Fire & Emergency Services, Inc., indicated the <br /> department's intent to purchase a replacement Tanker truck. The department will replace its <br /> current 1983 Ford Tanker truck. The Fire Chief confirmed that the department went through a <br /> competitive bid process and awarded the bid to Houston Galveston Area Contract (HGAC). <br /> The purchase price of the truck, including equipment, totals $279,886. As per Attachment 1, <br /> the Department's Board of Directors has applied for a loan of $210,000 through the Local <br /> Government Federal Credit Union Commercial Loan program, and plans to use $70,000 as a <br /> down payment for the truck from the Department's Truck Fund reserves. The interest rate for <br /> the 10-year loan is 2.75% with monthly payments of $2,003.63. The total repayment, including <br /> principal and interest, equals $240,435.60. It is important to note that these figures may vary <br /> slightly depending upon the actual loan closing date. <br /> Section 147 of the Internal Revenue Code of 1986 outlines specific steps that must occur when <br /> a tax supported fire department enters into a financing arrangement. <br />