Memo-07-09-2019-Item-12

July 9, 2019

MEMO TO:        Mayor Barber and Board of Commissioners

FROM:             Laura Rotchford, Finance Director

SUBJECT:       New Aerial Fire Truck

Per Chief Walker’s attached memorandum, Town Staff has recommended the purchase of a new aerial fire truck to replace the existing 21- year old 75’ straight ladder truck.  This new aerial fire truck was recently included in the FY 2020 Capital Project Ordinance for the Emergency Services Facilities and Equipment Project, effective July 1, 2020.

Chief Walker and his staff are recommending the purchase of a new aerial truck from Atlantic Coast Fire Trucks in Denver, North Carolina. This truck is a Spartan Custom 100-foot rear mount platform manufactured by Smeal. The total quote is $1,234,566.00, and has been priced through a cooperative (or group) purchasing program, Sourcewell (formerly NJPA).

In accordance with our Town Purchasing Policy the Board is required to grant approval for all purchases greater than $90,000.  While NC general statutes require formal competitive bidding process for purchases of equipment and apparatus greater than $90,000, NC GS 143-129(e)(3) authorizes local governments to utilize a competitive bidding group purchasing program, which is a formally organized program that offers competitively obtained purchasing services at discount prices to two or more public agencies. 

The attached Resolution authorizes the Town Manager to execute a purchase contract with Smeal Holding, LLC, Snyder, NE for the acquisition of the aerial truck.

I recommend approval of the attached resolution.


July 9, 2019

MEMO TO:        Mayor Barber and Board of Commissioners

FROM:             Laura Rotchford, Finance Director

SUBJECT:       Reimbursement Resolution for Aerial Fire Truck  

As part of the FY 2020 budget process, the Board of Commissioners adopted the Capital Project Budget Ordinance for the new Emergency Services Facilities and Equipment Project.   This project includes the new aerial fire truck purchase with proposed funding using installment purchase financing proceeds.

If the Board approves the purchase of the new aerial truck, the Town Manager will execute a purchase contract with Atlantic Coast Fire Trucks of Denver, NC.  The truck will be built to the Town’s specifications and is expected to be delivered to the Town no more than 395 days from the execution of the agreement, or approximately August, 2020.

At an appropriate date, Town staff with begin the Request for Proposal process with banks and lending institutions for the best interest rate and terms for the financing of the aerial truck.  Town staff estimated a 15 year term at 4% interest, with an approximate annual debt service payment $107,000, beginning in FY 21-22.

The Town’s proposed contract with Atlantic Coast Fire Trucks does not specify payment until delivery of the new aerial truck, however, in the event the Town expends its own funds toward the acquisition of the total truck costs, it will be advantageous to reimburse any expenditures with the installment purchase financing proceeds. 

Therefore, the attached resolution declares the Towns’ official intent to reimburse any expenses toward the acquisition of the aerial truck with the proceeds of installment purchase debt proceeds.   This declaration satisfies the requirements of US Treasury Regulations Section 1.150-2 for the issuance of non-taxable debt proceeds.

I recommend approval of the attached resolution.