Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John L. Maltbie, County Manager
Subject: Kings Mountain Volunteer Fire Brigade loan for the purchase of a replacement fire engine
RECOMMENDATION:
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Adopt a resolution authorizing the County Manager, or his designee, to execute a loan agreement with the Kings Mountain Volunteer Fire Brigade in substantially the form attached hereto in an amount not to exceed $400,000 for the purchase of a replacement fire engine and to execute any additional loan documents necessary to effectuate the purposes set forth in the resolution.
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BACKGROUND:
The Kings Mountain Volunteer Fire Brigade (the "Fire Brigade") is a volunteer fire department within the San Mateo County Fire Protection system. It has been the policy of the County to provide equipment, including fire engines, to volunteer fire companies as needed. The Fire Brigade has initiated the purchasing process for a Hi-Tech/Spartan Metro Star MFD/450 HP 1500 GPM Pumper fire engine to replace its twenty-year-old E56 fire engine. On April 10, 2018, the Fire Brigade's Board unanimously agreed to accept the recommendation of the Fire Department Procurement Committee to acquire the vehicle and established a Contract Review Committee of three Fire Brigade Board members to independently review the terms of the bid and agreement and to negotiate the final term arrangements directly with the manufacturer. Based on its review, the Fire Brigade expects that the total price for the replacement fire truck will be $665,572.84, with $265,572.84 covered by the Fire Brigade and $400,000 borrowed from the County pursuant to the terms set forth in the form of loan agreement attached hereto.
DISCUSSION:
The proposed agreement provides for a 20-year, interest-free loan of $400,000. The loan would come from the County's Non-Departmental Services ERAF Reserves. The Fire Brigade will agree to repay the loan at a ra...
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