Agenda 10-19-2021; 8-c - Approval of Financing Arrangements for Orange Rural Fire Department to Construct a New Fire EMS Station

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 19, 2021 Action Agenda Item No. 8-c SUBJECT: Approval of Financing Arrangements for Orange Rural Fire Department to Construct a New Fire/EMS Station DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. September 20, 2021 Public Gary Donaldson, 919-245-2453 Hearing Notice Rebecca Crawford, 919-245-2152 Attachment 2. Minutes from September 20, 2021 Public Hearing Attachment 3. Fire Department President Letter Attachment 4. Fire Service Agreement Attachment 5. Certificate of Approval PURPOSE: To approve Orange Rural Fire Department (ORFD) entering into a financing arrangement for the construction of the fire portion of a joint fire/EMS station in the Waterstone community of Hillsborough and authorize the BOCC Chair to sign the appropriate documents related to the financing arrangements. BACKGROUND: ORFD intends to contribute to the funding of a new, joint fire/EMS station with Orange County Emergency Services in the Waterstone Community at 350 College Park Road, Hillsborough, NC. A letter from the fire department's president outlining the department's intent to finance its portion is attached. The new station will support residents in the southern part of the central Orange fire district where some households are considered "uninsurable" due to the distance from current fire station locations. The new station will be approximately 13,000 square feet with the fire portion totaling 7,818 square feet. The fire portion of the station will house a full- time, 24-hour engine company, which consists of a fire engine and two to three full-time staff. ORFD will finance $2,700,000 at a 2.73% fixed rate for 25 years, with $1,300,000 as a down payment through Roxboro Savings Bank. Monthly payments will be $12,428 and covered by the existing debt service line item in the district's budget. These new payments will not cause a tax increase for the district. Construction of the station will begin in FY 2021-22. Funding for the EMS portion of the new Waterstone station and furnishings was approved as a part of the County's FY2021-26 Capital Investment Plan (CIP) for a total of $3,450,000. Volunteer fire departments are required to obtain Board of County Commissioner approval of such purchases only when they use tax-exempt debt financing to pay for purchase. Volunteer fire