058.99
RESOLUTION APPROVING PURCHASE OF RESCUE UNIT AND CHASSIS
AND INCURRING OF FINANCIAL OBLIGATIONS ON THE PART OF
SOUTH QUEENSBURY VOLUNTEER FIRE COMPANY, INC.,
RESOLUTION NO.: 58, 99
INTRODUCED BY: Mr. Theodore Turner
WHO MOVED ITS ADOPTION
SECONDED BY: Mr. Douglas Irish
WHEREAS, the Town of Queensbury and the South Queensbury Volunteer Fire Company,
Inc. (Fire Company) have contracted for fire protection services and such Agreement is in full force
and effect, and
WHEREAS, the Agreement sets forth a number of terms and conditions, including an
agreement 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 proposes to purchase one (1) 1999 Saulsbury Custom Built
Cardinal Stainless Steel Air/Light Rescue Unit and one (1) 1999 Spartan Motors, Inc. GA42L
Aluminum Gladiator Chassis in the total approximate principal mount of $425,955 and proposes to
finance the purchase in accordance with tax-exempt financing provided under §147(f) of the Internal
Revenue Code of 1986, as amended, and
WHEREAS, the Fire Company proposes to put $109,955 cash down on the purchase from its
vehicle fund, including its 1999 appropriation, and
WHEREAS, the Fire Company has negotiated with Evergreen Bank to enter into a financing
agreement for the amount of $315,000 for 20 years at a market rate expected to be approximately
4.95%, and this financing arrangement qualifies as tax-exempt under §147(f) of the Internal Revenue
Code of 1986 as amended, and
WHEREAS, the Fire Company is applying for IRS tax exempt status under 501(c)(3), and
WHEREAS, in accordance with §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
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WHEREAS, on February 10, 1999, the Town Board held the required public hearing, all
interested persons were heard and the Town wishes to facilitate the financing on behalf of the Fire
Company,
NOW, THEREFORE, BE IT
RESOLVED, that the Town Board of the Town of Queensbury hereby approves of the
purchase of one (1) 1999 Saulsbury Custom Built Cardinal Stainless Steel Air/Light Rescue Unit and
one (1) 1999 Spartan Motors, Inc. GA42L Aluminum Gladiator Chassis for the approximate sum of
$425,955 by the South Queensbury Volunteer Fire Company, Inc., under the following conditions:
(1) Fire Company will put approximately $109,955 cash down from its vehicle
fund (including 1999 appropriation);
(2) That a financing agreement has been committed to by Evergreen Bank, at
the then current market rate for 20 years;
(3) That before taking delivery of the truck the Fire Company receive its tax
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exempt determination letter from the IRS under 501(c)(3);
(4) That the Fire Company agrees to contract amendments that will subject all
incurrences of debt and all uses of vehicle funds to Town Board approval,
and
BE IT FURTHER,
RESOLVED, that the Town Board hereby approves the incurring on the part of the South
Queensbury Volunteer Fire Company, Inc. of financial obligations in the maximum, aggregate principal
amount of $315,000 in accordance with tax-exempt financing provided pursuant to §147(f) of the
Internal Revenue Code of 1986, as amended, provided, however, that the Town Board shall not and
does not by this Resolution create or intend to create any assumption on the part of the Town of
Queensbury of any obligation or liability for the financing.
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Duly adopted this 10 day of February, 1999, by the following vote:
AYES : Mr. Turner, Mr. Irish, Mr. Tucker, Mr. Merrill, Mr. Champagne
NOES : None
ABSENT: None
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