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Commissioner Brown - To Approve the Finance Arrangements and a Certificate of Need for North Gaston Fire & Rescue to Obtain Financing, in the amount of $195,000, to Purchase a 2005 M & W Custom Pumper Apparatus from Ranlo Fire & Rescue as approved by the Fire Advisory Board on June 9, 2016
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STAFF CONTACT
Eric Hendrix - Fire Marshal - 704-866-3231
BUDGET IMPACT
budget
This purchase is in keeping with current policy.
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BUDGET ORDINANCE IMPACT
This purchase is in keeping with current policy.
BACKGROUND
On June 9, 2016, Chief Dennis Cash, presented information and answered questions regarding North Gaston Fire & Rescue’s request to acquire approval for the purchase of a 2005 M & W Custom Pumper (1500 GPM pumper, 1,000 Gallons of Water, Enclosed Cab) from Ranlo Fire Department. This will be financed through United Financial, in the amount of $195,000.00 for 15 years, with 30 semi-annual payments of $40,194.41. This will be in addition to the existing United Financial debt. This apparatus will replace a Pierce 1987 open cab telesquirt truck which has been in service for 10 years and cannot meet North Gaston’s needs due to hydraulic problems with the telesquirt. They plan to sell or donate this truck and also sell a 1993 E-One Truck. All equipment from these trucks will be placed on the new truck. Chief Cash also presented a Term Sheet and Amortization Schedule (attached) from People’s Bank that reflects significant savings to consolidate debt, purchase this apparatus and refinance fire station, with the loan amount being $925,000.00 at 2.75% interest and 15 annual payments. North Gaston Fire and Rescue plans to finance with United Financial and then when paperwork is completed to move loan to People’s Bank. Chief Cash verbally outlined other options and loan rates. There was much discussion.
David Toomey made a motion to table the request until after North Gaston’s budget is approved (tax increase approved) by the county commissioners and Chief Cash presents final figures and updated paperwork for certificate of need. Also, those that were conference called did not have the latest documentation of loan/terms that Chief Cash had brought to this meeting. Brian Weyeneth seconded the motion. Extensive discussion, questions and answers followed. It was also noted that Ted Hendrix and Mark Rudisill, citing conflict of interest, would abstain from voting since they are members of Ranlo Fire Department. The motion did not carry. (1 vote “for” and 3 votes” against”). Discussion followed regarding North Gaston’s ability to make loan payments without the tax increase and it was noted that they would be able to do so. Earl Withers made a motion to recommend to the Commissioners that they extend the Certificate of Need to North Gaston Fire and Rescue based on the current financial records. Barry Wilson seconded the motion. More discussion and comments followed. Voting results were 3 votes “for” and 2 votes “against” motion. The motion carried.
POLICY IMPACT
N/A
ATTACHMENTS
North Gaston’s Certificate of Need