COUNTY OF SAN MATEO

Inter-Departmental Correspondence

ENVIRONMENTAL SERVICES AGENCY

DATE:

August 30, 2004

BOARD MEETING DATE:

September 14, 2004

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Director of Environmental Services

SUBJECT:

Purchase of Fire Engine by Kings Mountain Fire Brigade

RECOMMENDATION

Adopt a resolution authorizing the execution of a loan agreement with the Kings Mountain Fire Brigade for the purchase of a replacement fire engine.

BACKGROUND

The Kings Mountain Fire Brigade is a volunteer fire department included 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 begun the purchasing process for the engine. It is expected that the total engine price will be $250,000. The Kings Mountain Fire Brigade and the community have raised $150,000 towards the purchase of this fire engine.

DISCUSSION

The proposed agreement provides for a 20-year, interest-free loan of $100,000. The loan would be from the County Fire Structural Fire Fund Reserve Funds. The Fire Brigade will repay the loan at a rate of $5,000 per year starting on the anniversary date of the loan in 2005 for twenty years. The Fire Brigade wishes to retain legal ownership of the new engine, but will pledge the engine as collateral. The loan represents about 40% of the total purchase price for the new engine. The new engine would allow the San Mateo County Fire Department to rotate old and obsolete equipment.

The resolution and agreement have been reviewed by County Counsel.

VISION ALIGNMENT

The purchase of a replacement fire engine keeps the commitment of ensuring basic health and safety for all and goal number 7 to maintain and enhance the public health and safety of all residents and visitors. The purchase of the replacement fire engine contributes to this commitment and goal by providing efficient and effective fire protection services to the community the Kings Mountain Fire Brigade serves.

FISCAL IMPACT

The loan ($100,000) will be made from the Reserves of the Structural Fire Fund. A $5,000 payment will be made each year over a 20-year period. The yearly payment would go into the County Fire Protection Fund. There will be a September Revision to the budget to set up the appropriation for this agreement. There is no net County cost impact.