435.2008
RESOLUTION APPROVING BAY RIDGE VOLUNTEER FIRE COMPANY,
INC.’S PROPOSAL TO SEEK TAX-EXEMPT FINANCING TO PAY FOR
UNEXPECTED EXPENSES RELATED TO HEATING OIL SPILL
RESOLUTION NO.: 435, 2008
INTRODUCED BY: Mr. Ronald Montesi
WHO MOVED FOR ITS ADOPTION
SECONDED BY: Mr. Anthony Metivier
WHEREAS, the Town of Queensbury and the Bay Ridge Volunteer Fire Company, Inc.
(Fire Company) have entered into an Agreement for fire protection services, which Agreement
sets forth a number of terms and conditions including a condition that the Fire Company will not
purchase or enter into any binding contract to purchase any piece of apparatus, equipment,
vehicles, real property, or make any improvements that would require the Fire Company to
acquire a loan or mortgage or use money placed in a “vehicles fund” without prior approval of the
Queensbury Town Board, and
WHEREAS, the Fire Company advised the Town Board that due to a serious heating oil spill
into the basement of its Fire Station resulting in the contamination of the drywell system, the Fire
Company has incurred thousands of dollars of unexpected expenses related to the spill, clean-up and
other related costs in the approximate amount of $200,000, and
WHEREAS, the Fire Company has arranged for a 10 year tax-exempt installment loan in an
amount up to $200,000 with TD Banknorth to pay for such unexpected expenses until such time that
the Fire Company may be reimbursed for such expenses by the parties causing such damages or by
insurance carrier(s), with payments on the loan to be made from the Fire Company’s operating budget,
such monies already included in the Fire Company’s approved 2008 budget and Agreement with the
Town, and
WHEREAS, such expenses relate directly to the reconstruction or improvement of the Fire
Company’s Fire Station and/or the land where the Fire Station is located, and
nd
WHEREAS, on Monday, September 22, 2008, the Town Board held a public hearing as
required under the Internal Revenue Code concerning the Fire Company’s proposal and debt
incurrence and heard all interested persons, and
WHEREAS, the Town Board realizes that the Fire Company had no choice but to arrange for
the clean-up of and payment for the heating oil spill, and therefore the Town Board wishes to adopt a
Resolution authorizing the incurrence of tax-exempt debt by the Fire Company,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby approves of the Bay Ridge
Volunteer Fire Company, Inc.’s proposed tax exempt financing to pay for unexpected expenses
related to the serious heating oil spill into the basement of the Bay Ridge Fire Station, clean-up and
other related costs in the approximate amount of $200,000, and
BE IT FURTHER,
RESOLVED, that the Town Board further approves of the incurrence of approximately
$200,000 in debt with TD Banknorth by the Bay Ridge Volunteer Fire Company, Inc., and
BE IT FURTHER,
RESOLVED, that the Town of Queensbury does not guarantee such debt with TD
Banknorth on behalf of the Fire Company nor does the Town Board create or intend to create any
assumption on the part of the Town of Queensbury of any obligation or liability for the financing,
and
BE IT FURTHER,
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RESOLVED, that any funding the Fire Company recovers through its efforts to straighten
out its insurance and litigation matters will all be applied against any loan that is granted to the
Fire Company, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor
and/or Town Budget Officer to take any action necessary to effectuate all terms of this
Resolution.
nd
Duly adopted this 22 day of September, 2008 by the following vote:
AYES : Mr. Metivier, Mr. Montesi, Mr. Strough
NOES : Mr. Stec, Mr. Brewer
ABSENT: None
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