PEMBROKE — The Town Council at its regular meeting on Monday agreed to forgive half of the Pembroke Rescue Squad’s $11,000 debt to the town.

Councilman Larry Brooks introduced the issue, saying the town billed the squad $11,000 for mechanic services and gas. He made a motion to write off $5,500 from the town’s accounts receivable, and the rescue squad would pay the city the same amount.

Pembroke Rescue Squad is an all-volunteer ambulance service that for the past two years has received $5,000 from the town to pay for gas.

“It’s a volunteer organization that’s one of the finest in the community,” Brooks said. “Its response time is second-best in the county. We’re talking about volunteers here, and we never know when one of us might need them.”

Mayor Milton Hunt said that although it’s a nonprofit, he’d heard of them billing clients.

McDuffie Cummings, town manager, said that the rescue squad bills clients for insurance, Medicare and Medicaid reimbursements, but it doesn’t collect bills otherwise.

Hunt also questioned the apparent drastic increase in costs. Cummings said that the rescue squad is covering a greater area and answering more calls.

“Well then they’re answering more calls than they can pay for,” Hunt said.

Councilman Larry McNeill said that the council may want to consider providing more gas money if the rescue squad was providing more service.

Also on Monday, the council approved a contract for consulting services from Holland Consulting Planners for a hazard mitigation plan.

An $8,000 state grant will pay for the services, which the town needs in order for its residents to be eligible for flood insurance. Without a hazard mitigation plan, a town’s residents cannot buy flood insurance, Cummings said.

In other business, the council scheduled two public hearings for its Dec. 7 meeting: one as part of a conditional-use permit application to open a day care center, and one to discuss establishing golf cart laws.

Earlier this year, the state surrendered control of golf cart laws to municipalities after the state’s list of counties and towns that wanted to make their own rules had grown substantially.

“Ninety percent of one (law) you see in the other, with just slight variations,” City Attorney Grady Hunt said.

Also on Monday, the council approved a lease-purchase agreement for three Crown Victoria vehicles for the Police Department. They will replace two 1999 models and one 2000 model, all with more than 100,000 miles. The used vehicles will be sold through auction.

The new vehicles will each cost $20,700, which will be accounted for in the 2010 to 2011 fiscal year budget.