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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 15, 2020 <br /> Action Agenda <br /> Item No. 8-f <br /> SUBJECT: Approval of Financing Arrangement for Efland Volunteer Fire Company, Inc. To <br /> Purchase a Fire Engine Truck <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. November 18, 2020 Gary Donaldson, (919) 245-2453 <br /> Public Hearing Notice Paul Laughton, (919) 245-2152 <br /> Attachment 2. Notes from November 18, <br /> 2020 Public Hearing <br /> Attachment 3. Fire Service Agreement <br /> Attachment 4. Certificate of Approval <br /> PURPOSE: To approve Efland Volunteer Fire Company, Inc. entering into a financing <br /> arrangement to purchase a fire engine truck and authorize the Board of County Commissioners' <br /> Chair to sign the appropriate documents related to the financing arrangement. <br /> BACKGROUND: The Efland Volunteer Fire Company, Inc. has indicated its intent to purchase a <br /> Pierce Enforcer Pumper fire engine truck at a purchase price of $551,352. The Company went <br /> through a competitive bid process and awarded the bid to Pierce Manufacturing, Inc. in Appleton, <br /> Wisconsin. Projected delivery date is July 2021. <br /> The purchase price of the fire engine truck is $551,352. The Company's Board of Directors <br /> agreed to borrow $351,352 from Freedom Financial and the underwriting bank is Community One <br /> Bank, and to pay the remaining $200,000 with $100,000 from the district's available fund balance <br /> (approved by the Board of County Commissioners at their November 17, 2020 meeting), as well <br /> as $100,000 from the Company's capital reserves. <br /> Section 147(f) of the Internal Revenue Code of 1986 outlines specific steps that must occur when <br /> a tax supported fire department enters into a financing agreement. <br /> • Conduct a public hearing — On November 18, 2020, the company held a public hearing <br /> regarding the purchase. The Company advertised the hearing in the News of Orange <br /> (Attachment 1 of this abstract). Per the Attachment 2 of this abstract, no residents were <br /> present at the hearing and the Company did not receive any written comments from <br /> residents of the district. <br /> • Obtain approval of the "applicable representatives" — In accordance with Section <br /> 147(f), the Board of County Commissioners must approve the District's plan to enter into <br /> the debt arrangement. This approval does not create liability on the part of Orange County <br />