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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 11, 2008 <br />Action Agenda <br />Item No. 4 - I <br />SUBJECT: Approval of Financing Arrangements for Volunteer Fire Departments to <br />Purchase Fire Trucks <br />DEPARTMENT: Budget, Emergency Services <br />ATTACHMENT (S): <br />Attachment 1. Cedar Grove Fire <br />Department Request Package <br />Attachment 2. Caldwell (Little River) Fire <br />Department Request Package <br />Attachment 3. Orange Rural Fire <br />Department Request Package <br />PUBLIC HEARING: (Y/N) No <br />INFORMATION CONTACT: <br />Donna Coffey, 245-2151 <br />Frank Montes de Oca, 245-6140 <br />PURPOSE: To approve, in accordance with Section 147 of the Internal Revenue Code of 1986, <br />requests from Cedar Grove, Caldwell (Little River), and Orange Rural Volunteer Fire <br />Departments to enter into financing arrangements to purchase fire trucks and authorize the <br />Board of Commissioner Chair to sign the appropriate documents related to the financing <br />arrangements. <br />BACKGROUND: As indicated to the Board in a similar agenda item on November 18, 2008, <br />Cedar Grove, Caldwell (Little River), and Orange Rural Volunteer Fire Departments, intend to <br />purchase replacement fire trucks. Letters from each of the fire company's presidents outlining <br />their department's intent to make these purchases are included in the attachments to this <br />agenda item. The new tankers will replace 20+ year old trucks. Each department went through <br />a competitive bid process. In all instances, US Tanker Fire Apparatus, Inc. of Burlington, <br />Wisconsin submitted the winning bid. The cost of the trucks ranges from $240,000 to $250,000. <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. <br />Section 147 of the Internal Revenue Code of 1986 outlines specific steps that must occur when <br />a tax supported fire department enters into a financing arrangement. Each department has <br />completed the required steps to comply with Section 147. <br />