Report of the VCAF Committee MSFA Executive Committee Meeting

Report of the VCAF Committee
MSFA Executive Committee Meeting
August 22/23, 2014
Since the MSFA Convention meeting the VCAF Committee has seen an increase in interest for
VCAF loans. The VCAF regional representatives have been working hard to educate companies
on the process and outline benefits of obtaining a VCAF loan for equipment and facilities.
The VCAF Committee convened on July 27, 2014 to review and discuss loan applications for
Havre de Grace Ambulance Corps, Bedford Road Volunteer Fire Department, and Aberdeen
Volunteer Fire Department. The Committee also reviewed Sharpsburg Volunteer Fire Company
financial shortfall of $138,000.
The VCAF committee, after review and discussion, voted to approve and recommend each
application for Executive Committee approval and forwarding to the Board of Public Works
(BPW) for final approval.
After the July 27th meeting and discussions with Maryland Military Department, it was
discovered that the Board of Public Works (BPW) officially approved Sharpsburg VFC for a
$374,135.000 loan, not $324,000 as previously reported. Based on the new finding the VCAF
vote to increase Sharpsburg’s loan by $138,000 would violate the MSFA Executive Committee
rule of not loaning more than 50% of the total project cost.
Compounding matters, the Maryland Military Department advised that the BPW cast a single
vote for Sharpsburg’s loan and grant, and therefore to amend the loan, the MSFA would have to
rescind Sharpsburg’s approved loan and grant and then Sharpsburg would have to reapply for a
new loan and grant – back to $0.00 and start over.
Starting over would have put an unreasonable burden of risk on Sharpsburg because their
construction project is well underway, and their financial situation was bleak (potential
construction contract default and/or bankruptcy). Based on facts known, Chairman Harman
requested the VCAF Committee to initiate action to remedy the problem. The VCAF Committee
voted to supersede (rescind) their July 27, 2014 vote to increase Sharpsburg’s loan for $138,000
and affirmed a vote to approve recommendation for Sharpsburg to receive an FY 15 grant for
$138,000.
On Sunday, August 10, 2014 the Executive Committee held a teleconference with VCAF
Committee representatives (Harman, Bowser, Ganley) to review and discuss the following four
applications:
(1) Company: Havre de Grace Ambulance Corp, Inc.
Scope: Re-chassis their 2005, 9-year old ambulance. Havre de Grace Ambulance Corps has
selected Braun Industries to re-chassis their unit. This approach provides Havre de Grace the
best value to modernize their fleet. The new chassis will be a 2014 Ford F450.
Finances:
Project Cost: $113,300
Match Funds: $ 28,325 (25%)
Loan Request: $ 84,975 (75%)
VCAF Committee Decision: Recommend Loan Approval
Executive Committee Decision: Approved – Forward to BPW
======================
(2) Company: Bedford Road Volunteer Fire Department
Scope: Replace their 1988, 26-year old pumper-tanker. Bedford Roads plans to purchase a 2014
KME pumper-tanker upon VCAF loan approval. The current unit is having mechanical issues
and does not meet current safety standards with open jump seats. KME was not Bedford Road’s
lowest bid, but because they have another KME unit they feel the slight up-charge provides value
in operational (equipment) consistency and maintenance.
Finances:
Project Cost: $524,325
Match Funds: $131,081 (25%)
Loan Request: $393,243 (75%)
VCAF Committee Decision: Recommend Loan Approval
Executive Committee Decision: Approved – Forward to BPW
======================
(3) Company: Aberdeen Volunteer Fire Department
Scope: Replace their 1989, 25-year old Grumman 102’ Aerial Cat. Aberdeen is purchasing
(under contract) 2014 100’ Pierce Dash CF Platform Tower. The current unit is has reach the
end of its expected service life. Pierce was not Aberdeen’s lowest bid, but because their two
newest engines are Pierce they feel the slight up-charge provides value in operational
(equipment) consistency and maintenance.
Finances:
Project Cost: $1,114,533
Match Funds: $364,533 (33%)
Loan Request: $750,000 (67%)
VCAF Committee Decision: Recommend Loan Approval
Executive Committee Decision: Approved – Forward to BPW
======================
(4) Company: Sharpsburg Volunteer Fire Company
Scope: Construct a new apparatus facility. The existing facility cannot handle the weight and
size of new, modern apparatus. Because of reasons detailed below, Sharpsburg is short $138,000
to complete construction activities (construction is 50% or more)
Finances:
Sharpsburg requested $600,000 in VCAF assistance and received approval for $462,000.
Sharpsburg requires $138,000 to pay for work they are obligated for under contract.
FY 14 Loan:
FY14 Grant:
BPW Appr’d:
FY15 Grant:
Total:
$374,135 (approved by BPW - $50,865 less than Sharpsburg’s requested)
$ 87,865 (approved by BPW - $87,135 less than Sharpsburg’s requested)
$462,000 ($138,000 less than Sharpsburg’s request)
$138,000
$600,000
VCAF Committee Decision: Recommend Grant Approval
Executive Committee Decision: Approved – Forward to BPW
NOTE: Norrisville Volunteer Fire Company (loan $705,238), Havre de Grace Ambulance Corp,
Inc. (loan $84,975), Bedford Road Volunteer Fire Department (loan $393,243), Aberdeen
Volunteer Fire Department (loan $750,000), and Sharpsburg Volunteer Fire Company (grant
$138,000) applications (totaling $2,071,456) are planned for BPW review/approval on
September 3, 2014.
During the Executive Committee teleconference there was a discussion about the difference
between MSFA Executive Committee rules for loans and grant, and Maryland Code, PUBLIC
SAFETY, TITLE 8 - FIRE AND RESCUE FUNDS, Subtitle 2 - Volunteer Company Assistance
Fund. Per direction of the Executive Committee the VCAF Committee will present additional
information and justification for the Executive Committee to allow the Association to work
within the bounds of Maryland Codes, PUBLIC SAFETY, TITLE 8 - FIRE AND RESCUE
FUNDS, Subtitle 2 - Volunteer Company Assistance Fund, § 8-201. Definitions, § 8-202.
Volunteer Company Assistance Fund - In general, § 8-203. Volunteer Company Assistance Fund
- Purpose; grants, and § 8-204. Volunteer Company Assistance Fund - Requests for money.
Progress Payments for Construction Loans: The VCAF Committee, specifically Vice Chair
Joe Antoszewski, has made good progress with developing a progress payment process for
VCAF construction loans. It appears that the Maryland Military Department representatives are
in agreement that change is needed and that the Baltimore County progress payment process
serves as a good model. The last and most important component being worked is the inspection
process – who can be authorized to inspect and certify for payment work has been completed.
Joe is continuing to work with Catherine Kelly to find a solution.
Respectfully submitted,
Craig B. Harman, VCAF Chairperson
//s//

Download Report