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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 14, 2004 <br />Action Age a~ <br />Item No. ~_ <br />SUBJECT: Approval of Financing Arrangement for Efland Volunteer Fire Company, Inc. to <br />Purchase a Realacement Fire Tanker <br />DEPARTMENT: Budget <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT (S): <br />Attachment 1. Letter from Efland <br />Volunteer Fire Company, Inc. Board of <br />Directors President <br />Attachment 2. November 22, 2004 Public <br />Hearing Notice <br />Attachment 3. Notes from 11/22/04 <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 Efland Volunteer Fire Company, Inc. to enter into a <br />financing arrangement to purchase a tanker and authorize the Board of Commissioner Chair to <br />sign the appropriate documents related to the financing arrangement. <br />BACKGROUND: During last spring's budget planning process, Efland Volunteer Fire Company, <br />Inc, outlined its plans to replace its 1973 tanker sometime during the current fiscal year, Due to <br />the age of the truck, it required constant, and often times costly, maintenance and upkeep. <br />In the attached letter addressed to the Orange County Board of County Commissioners Chair, <br />Mr. Ronnie L, McAdams, President of the Efland Volunteer Fire Company, 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 and awarded the bid to 4 Guys Firetrucks <br />from Meyersdale, Pennsylvania, <br />According to Attachment 1, purchase price of the tn~ck totals $188,164. The Department's <br />Board of Directors agreed to borrow $160,000 from CCB-Hillsborough and to pay the remaining <br />$28,164 from the Department's capital reserve. The interest rate for the 5-year note is 4,5 <br />percent, Annual payments are estimated to be in the neighborhood of $36,000 and are <br />projected to begin January 2005 fallowing a projected delivery date of December 28 2004. The <br />total repayment, including principle and interest, equals $180,000. It is important to note that <br />these figures may vary slightly depending upon the actual loan closing date. <br />