276.2011 2012-2014 Qsby Central Agreement Expa
RESOLUTION APPROVING 2012 - 2014 FIRE PROTECTION SERVICES
AGREEMENT BETWEEN TOWN OF QUEENSBURY AND
QUEENSBURY CENTRAL VOLUNTEER FIRE COMPANY, INC.
AND AUTHORIZING INCURRENCE OF TAX-FREE FINANCING/DEBT
FOR FIREHOUSE EXPANSION
RESOLUTION NO.: 276, 2011
INTRODUCED BY: Mr. Ronald Montesi
WHO MOVED FOR ITS ADOPTION
SECONDED BY: Mr. Tim Brewer
WHEREAS, the Town of Queensbury and the Queensbury Central Volunteer Fire Company,
Inc. (Fire Company) previously contracted for fire protection services, and
WHEREAS, the Agreement for fire protection services 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 without prior
approval of the Queensbury Town Board, and
WHEREAS, the Fire Company has presented to the Town Board a proposal to construct an
expansion of its firehouse on Lafayette Street for a principal amount not to exceed $1,700,000 and
proposes to finance the expansion project through tax-exempt financing provided under §150(e) of the
Internal Revenue Code of 1986, as amended, and
WHEREAS, the Fire Company plans to negotiate with local banksto enter into a financing
agreement for the amount of $1,700,000 for 15-20 years at a market rate expected to be approximately
2.5% and this financing arrangement is intended to qualify as tax-exempt under §150(e) of the Internal
Revenue Code of 1986 as amended, if tax-exempt financing is available, and, if not, non tax-exempt
financing is estimated to be approximately 3.75%,and
WHEREAS, in accordance with §150(e)(3) and §147(f) of the Internal Revenue Code of
1986, as amended, the Fire Company has requested that the Town Board conduct a public hearing to
authorize approval of the financing and the Town Supervisor to execute approval of the financing to
comply with the statutory requirements, and
WHEREAS, the Town Board has determined that it is in the best interest of the Fire Company
and Town residents as required by the Internal Revenue Code to conduct a public hearing concerning
the proposed expansion project, and
WHEREAS, the Town and the Fire Company have also negotiated terms for a new three (3)
year Agreement for fire protection services, and
WHEREAS, in accordance with Town Law §184 and General Municipal Law §209(b), the
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Town Board scheduled and duly held a public hearing on September 12, 2011 concerning the
proposed Agreement, and in accordance with §150(e)(3) and §147(f) of the Internal Revenue Code
of 1986, as amended, the Town Board also conducted a public hearing to authorize approval of the
financing and the Town Supervisor to execute approval of the financing to comply with the statutory
requirements the Fire Company’s proposal and tax-exempt financing as required by the Fire
Company’s Agreement with the Town and the Internal Revenue Code, and heard all interested
persons, and
WHEREAS, a copy of the proposed Agreement has been presented at this meeting, and
WHEREAS, the Town Board believes that the firehouse expansion will help provide for
additional safety protection for the Town, and
WHEREAS, the Town Board therefore wishes to adopt a Resolution authorizing the 2012-
2014 Agreement, firehouse expansion and the Fire Company’s corresponding incurrence of tax-
exempt debt,
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NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board on behalf of the Fire Protection District,
hereby approves the Fire Protection Service Agreement between the Town and the Queensbury
Central Volunteer Fire Co., Inc., for the years 2012- 2014 substantially in the form presented at this
meeting, and
BE IT FURTHER,
RESOLVED, that the Town Board further approves of the Queensbury Central Volunteer
Fire Company, Inc.’s proposal to construct an expansion of its firehouse on Lafayette Street for a
principal amount not to exceed $1,700,000 and proposal to finance the expansion project through tax-
exempt financing provided under §150(e) of the Internal Revenue Code of 1986, as amended, and
BE IT FURTHER,
RESOLVED, that the Town Board further approves of the Fire Company’s incurrence of
approximately $1,700,000 maximum amount in debt for such expansion, and
BE IT FURTHER,
RESOLVED, that the Town of Queensbury does not guarantee such debt with the
financial institution 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,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor to
execute the 2012-2014 Agreement substantially in the form presented at this meeting and the Town
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Supervisor and/or Town Budget Officer to take any action necessary to effectuate all terms of this
Resolution.
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Duly adopted this 12 day of September, 2011 by the following vote:
AYES : Mr. Metivier, Mr. Montesi, Mr. Strough, Mr. Stec
NOES : Mr. Brewer
ABSENT: None
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