COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Stony Point VFD Building Renovation and Repairs

 

 

SUBJECT/PROPOSAL/REQUEST:

Seek Board approval of staffís recommendation to grant and loan funds to Stony Point VFD to address their building renovations and repairs.

 

STAFF CONTACT(S):

Messrs. Tucker, Foley, Davis, Eggleston

 

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

April 5, 2006

 

ACTION:                                INFORMATION:   

 

CONSENT AGENDA:

  ACTION:     X                       INFORMATION:   

 

 

ATTACHMENTS:   Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

During the FY05-06 budget process, Stony Point VFD submitted a budget request for approximately $350,000 in building maintenance, renovation and other projects. (Attachment A).  Because the current volunteer funding policy did not specifically address volunteer building issues and Stony Pointís request did not contain typical Capital Improvement items, staff submitted this request to the Board for separate consideration during the FY05-06 budget work sessions.  Upon review, the Board requested that staff develop a policy for the Boardís consideration that would address how requests of this type could be handled when it appeared the station may not have the ability to raise necessary funds to address building maintenance and minor renovations in a timely manner. 

 

During the September 7, 2006 day meeting, the Board approved a policy that addresses funding volunteer fire and rescue stations that do not have the financial means to fund building repairs and minor building renovations. The approved policy is contained in Attachment B.

 

Since the policy was adopted, staff has been working with the Stony Point VFD to develop more precise estimates and to develop a financial plan based on Stony Pointís ability to pay.

 

 

STRATEGIC PLAN:

Goal 3.1:  Make the county a safe and healthy community in which citizens feel secure to live, work and play.

 

 

DISCUSSION:

Volunteer station financial assessment

The intent of the Volunteer Fire Rescue Building Maintenance Funding Policy is to provide financial assistance to volunteer stations that do not have the financial means to fund building repairs and minor building renovation projects. The policy requires that the volunteer station disclose the departmentís financial statements (balance sheet and income statement) to help demonstrate the stationís financial need.

 

Stony Point VFD submitted to staff their 2004 federal tax return and a balance sheet and income statement. Upon review, staff concluded that Stony Point has a restricted cash reserve of $35,297 (earmarked for building repairs) and an annual fundraising of revenue of $25,000.

 

Five year building assessment to determine future expenditures

The Volunteer Fire Rescue Building Maintenance Funding Policy states that stations requesting financial assistance must conduct a five year assessment of their building to determine the long term maintenance needs. Stony Point VFD worked with staff to assess and categorize their building renovations and repairs. General Services conducted an extensive project review and estimated the projects at $455,486 vs. the original estimate of $350,000 supplied by Stony Point VFD.  An itemized list of projects and costs are outlined below:

 

 

 

Staff believes that high priority items are necessary to keep the facility in operation. The roof, parking lot, and HVAC system are in poor condition and should be repaired immediately.

 

Staff also believes that the medium priority items are not as critical as the roof, parking lot or HVAC system, but are necessary to accommodate volunteer duty crews. Stony Pointís volunteer membership has increased through aggressive recruitment campaigns and the membership is striving to staff the station nights and weekends with multiple crews. However, the current living quarters will not accommodate the volunteer staff.

 

If the Board chooses to fund the project, General Services will work with Stony Point to procure the contractual services and manage the project as stated in the Volunteer Fire Rescue Building Maintenance Funding Policy.

 

Staff believes that the grant portion of the Volunteer Fire Rescue Building Maintenance Funding Policy is intended to fund critical building needs when a volunteer station does not have the financial means. Therefore, staff recommends that the County grant Stony Point $239,736 to repair/replace the roof, parking lot, and HVAC system.

 

Staff also believes that the no-interest loan portion of Volunteer Fire Rescue Building Maintenance Funding Policy is intended to fund building needs that help to maintain or ensure services. The remainder of Stony Pointís request helps to accommodate volunteer duty crews which will ensure an adequate level of service. Therefore, staff recommends that the County loan Stony Point $215,750 at zero interest and require that Stony Point pay back the loan over 12 years through an annual payment of $15,000 per year.

 

BUDGET IMPACT:

$239,736- grant funding

$215,750- no-interest loan paid back over 12 years.

 

RECOMMENDATIONS:

Staff recommends that the Board appropriate funding from the FY06/07 CIP fund balance for a combination grant and no-interest loan for the Stony Point projects.

 

 

ATTACHMENTS

Attachment A Ė Stony Point VFD Original Budget Submittal

Attachment B - Volunteer Fire Rescue Building Maintenance Funding Policy

Attachment C Ė Stony Point VFD project costs, grant funding, and no-interest loan schedule

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