Memo-07-09-2019-Item-13

July 9, 2019

MEMO TO:        Mayor Barber and Board of Commissioners

FROM:             Laura Rotchford, Finance Director

SUBJECT:       New Braun Ambulance Purchase

Per Chief Jones’ attached memorandum, Town Staff has recommended the purchase of a new Braun ambulance to replace the existing 10- year old Wheeled Coach ambulance.  This new ambulance purchase was approved in the FY 2020 General Fund Budget Ordinance with funding from installment purchase financing.

Chief Jones has recommending the purchase of a new ambulance from Spartan Fire and Emergency Apparatus, Inc. of Roebuck, South Carolina.  The total quote is $233,000.00, and has been competitively priced through a cooperative (or group) purchasing program, the Houston-Galveston Area Council (H-GAC).

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 Spartan Fire and Emergency Apparatus, Inc. Roebuck, SC for the acquisition of the new ambulance.

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 new Braun Ambulance  

As part of the FY 2020 budget process, the Board of Commissioners adopted the General Fund Budget Ordinance which included installment purchase financing for the purchase of a replacement ambulance in the EMS department.  

If the Board approves the purchase of the new Braun ambulance, the Town Manager will execute a purchase contract with Spartan Fire and Emergency Apparatus, Inc., Roebuck, SC.  The chassis and ambulance will be built to the Town’s specifications and is expected to be delivered to the Town in approximately 210-240 days from the execution of the agreement, or approximately March, 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 new ambulance  Town staff estimated a 5 year term at 3.1% interest, with an approximate annual debt service payment $55,000, beginning in FY 20-21.

The Town’s proposed contract with Spartan Fire and Emergency Apparatus, Inc. does not specify payment until delivery of the new ambulance, however, in the event the Town expends its own funds toward the acquisition of the total ambulance 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 ambulance 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.