Agenda - 12-03-2001-8k - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Dale: December 3, 2001 Action Agentl ' Item No. ~_ SUBJECT: Approval of Financing Arrengemenf for Orange Rural Fire Department tc P h Repl t F're Truck DEPARTMENT: Budget PUBLIC HEARING: (YIN) No ATTACHMENT(St: INFORMATION CONTACT: Attachment 1. Letter from Orange Rural Donna Dean, 245-2751 Fire Oepartment Boats of Dlroctars Chairperson Attachment 2. October 24, 2001 Public TELEPHONE NUMBERS: Hearing Notice Hillsborough ]32.8181 Attachment 3. Fire Service Agreement Chapel Hill 868-0501 Attachment 4. Certificate of Approval Durham 688-]331 Mebane 33632]-2031 PURPOSE: Td approve a request from Orange Rural Fire Department to enter into a hnancing anengement to purchase a fire track and authorize the BoaN of Commieaionar Chair to sign the appropriate tlocumems relatetl to the financing anengement. BACKGROUND: During last spring's butlget planning process, Alois Cellemyn, Chair of the Orenge Rurel Fire Department's BoaN of Dimctors, antl JeH Cabe, the tleparlmenfa Fire Chief, outlined the tleparVnenfa plans tc replace one of Rs fire tracks sometime [luring the current 65ca1 year. The Depadmen[ purchased [he torten[ track in 19]], antl due to Rs age, it requires constant, end often times wshy, maintenance and upkeep. In a recent letter addressed [o the Orange County Boats of County Commissipnere Chair, Mr. Cellemyn confirmed the department's intent [o proceetl with the planned purchase (Attachment 1). AcrnMing ip the letter, [he total cost of the Wck is $182,288. The Oepattmenfa BoaN of Oirec[grs has agreed to pay one-half of the purchase price ($81,133) from its savings account. First Bankers Comore[ion would finance [he remaining $81,133 through a leaselpurchase pro0ram oRered by the track manufacturer, KME. The terms of [he fnancing arrangement provitle far start-year repayment plan antl an interest rate of 4.84 percent Annual payments total $10.425 and are scheduletl to begin August 1, 2002. The total repaymenp inclutling principle and interest, equals $104,250. Section 14] of the Internal Revenue Code of 1986 outlines specrfic e<epa that must occur before the department can enter'mto [he fnancing armngemenl.