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//
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