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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 18, 2008 <br />Action Agenda <br />Item No. <br />SUBJECT: Approval of Financing Arrangement for Orange Grove Volunteer Fire <br />Company, Inc. to Purchase a Fire Truck <br />DEPARTMENT: Budget, Emergency Services PUBLIC HEARING: (Y/N) No <br />ATTACHMENT (S): INFORMATION CONTACT: <br />Attachment 1. Correspondence from <br />Orange Grove Fire Company, Inc. Board of <br />Directors President <br />Attachment 2. November 3, 2008 Public <br />Hearing Notice <br />Donna Coffey (919) 245-2151 <br />Frank Montes de Oca, (919) 245-6140 <br />Attachment 3. Notes from November 3, <br />2008 Public Meeting <br />Attachment 4. Fire Service Agreement <br />Attachment 5. Certificate of Approval <br />PURPOSE: To approve, in accordance with Section 147 of the Internal Revenue Code of 1986, <br />a request from Orange Grove Volunteer Fire Company (OGVFC), Inc. to enter into a financing <br />arrangement to purchase a fire truck and authorize the Board of Commissioner Chair to sign the <br />appropriate documents related to the financing arrangements. <br />BACKGROUND: This is atime-sensitive item. The cost quoted to OGVFC for the fire <br />truck will increase by $9,000 after November 28, 2008. <br />In Attachment 1, Linwood Futrelle, President of the OGVFC, outlines the department's intent to <br />purchase a fire truck. The new 2000-gallon tanker will replace a 1983 model 1250-gallon <br />tanker. The department went through a competitive bid process. The department received two <br />bids with the bid award going to US Tanker Fire Apparatus, Inc. in Burlington, Wisconsin. The <br />cost of the truck totals $226,886. <br />Volunteer fire companies are required to obtain Board of County Commissioner approval of <br />such purchases only when they use tax-exempt debt financing to pay for purchase. Fire <br />departments are not mandated to obtain Board of County Commissioner approval when making <br />purchases that do not require debt financing. Orange Grove Plans to debt finance $193,000 of <br />the truck cost with the remaining $33,886 coming from available fire department monies. <br />