237.2011 WGF Breach Agreement
RESOLUTION REGARDING BREACH OF AGREEMENT BY
WEST GLENS FALLS VOLUNTEER FIRE COMPANY, INC.
RESOLUTION NO.: 237, 2011
INTRODUCED BY: Mr. Tim Brewer
WHO MOVED ITS ADOPTION
SECONDED BY: Mr. Anthony Metivier
WHEREAS, by Resolution No.: 108,2010, the Town of Queensbury and West Glens Falls
Volunteer Fire Co. (Fire Company) entered into a three (3) year Agreement for fire protection services
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dated as of January 1, 2010 (Agreement), and
WHEREAS, in March, 2011, the Fire Company contacted the Queensbury Town Board
requesting a Workshop to discuss and receive permission to purchase a boat and finance the purchase,
and
WHEREAS, the Town Supervisor requested information concerning the potential purchase,
why they felt it was necessary, and other related details, and
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WHEREAS, on April 4, 2011, the Fire Company responded with some details concerning the
proposed purchase, and
WHEREAS, the Town Supervisor asked for further information and indicated that he did not
expect the Town Board to approve the purchase and its associated financing, and
WHEREAS, the Town Board received no further response and believed that the Fire Company
had decided not to make such purchase and borrow such funds, and
WHEREAS, in July, 2011 the Town Board learned that, despite this, the Fire Company has
purchased such boat and borrowed the money to do so, and
WHEREAS, in accordance with paragraph 5(A) of the Agreement, the Fire Company cannot
“incur debt of any amount” without prior approval by Resolution of the Town Board, and
WHEREAS, the Fire Company has in bad faith breached the Agreement, and
WHEREAS, the Town has already paid all amounts detailed as due for the Fire Company to
provide its fire protection services during 2011, and
WHEREAS, at this time, the Town Board has not decided to exercise its power to terminate
the Agreement as of January 1, 2012 for such blatant breach, but has decided it would be more
appropriate, considering the needs of the Town, to decrease the amount it pays to the Fire Company in
2012 by the amount the Fire Company borrowed and spent on such boat,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board, resolves that the West Glens Falls Volunteer
Fire Co., Inc., has acted in bad faith and breached its fire protection services Agreement with the Town
of Queensbury, and
BE IT FURTHER,
RESOLVED, that no further payments shall be made to the Fire Company under the
Agreement until the Town Board is satisfied it has received all financial information relating to the
purchase of such boat and the debt incurred to finance it, and
BE IT FURTHER,
RESOLVED, that the amount to be paid to the Fire Company during 2012 shall be decreased
by the total amount the Fire Company borrowed to purchase such boat during 2011 plus all interest
payments made or to be made by the Fire Company on such debt during calendar years 2011 and 2012,
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and
BE IT FURTHER,
RESOLVED, that such decrease shall be allocated pro rata over the payments detailed in
Paragraph 3 of the Agreement, and
BE IT FURTHER,
RESOLVED, that the Town Board authorizes and directs the Town Supervisor and/or Budget
Officer to take all actions necessary to effectuate the terms of this Resolution.
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Duly adopted this 25 day of July, 2011, by the following vote:
AYES : Mr. Metivier, Mr. Montesi, Mr. Strough, Mr. Brewer, Mr. Stec
NOES : None
ABSENT:None
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