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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 16, 2004 <br />Action Agenda <br />Item No. __~ <br />SUBJECT: Approval of Financing Arrangement for Orange Rural Fire Department No, 1, <br />Inc. to Purchase a Replacement Fire Truck <br />DEPARTMENT: Budget PUBLIC HEARING: (YIN) No <br />ATTACHMENT (S): <br />Attachment 1. Letter from Orange Rural <br />Fire Department No, 1, Inc. Board of <br />Directors President <br />Attachment 2. October 13, 2004 Public <br />Hearing Notice <br />Attachment 3. Notes from 10/19/04 <br />Public Meeting <br />Attachment 4. Fire Service Agreement <br />Attachment 5. Certificate of Approval <br />INFORMATION CONTACT: <br />Donna Dean 245-2151 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <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 and authorize the Board of Commissioner <br />Chair to sign the appropriate documents related to the financing arrangement, <br />BACKGROUND: During last spring's budget planning process, Orange Rural Fire Department <br />No. 1, Inc, outlined its plans to replace a 1973 tanker sometime during the current fiscal year. <br />Due to the age of the truck, it required constant, and often times costly, maintenance and <br />upkeep. <br />In the attached letter addressed tc the Orange County Board of County Commissioners Chair, <br />Mr, Edwin Riley, President of the Orange Rural Fire Department No. 1, Inc, confirmed the <br />department's intent to proceed with the planned purchase (Attachment 1 of this abstract), The <br />department went through a competitive bid process with U,S, Tanker Fire Apparatus, Inc. from <br />Burlington, Wisconsin submitting the lowest bid. <br />According to Attachment 1, purchase price of the truck totals $191,682. The Department's <br />Board of Directors agreed to barrow $150,000 from Central Carolina Bank and Trust and to pay <br />the remaining $41,682 from the Department's capital reserve ($21,682) and the Department's <br />unappropriated fund balance ($20,000), The interest rate far the 5-year note is 4.5 percent, <br />Annual payments are estimated to be in the neighborhood of $33,500 and are projected to <br />begin January 2005 following a projected delivery date of December 2004, The total <br />