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FIRE AND RESCUE\\Bay Ridge Rescue - Set Public Hearing on Tax Exempt Loan for Ambulance Purchase – 3-8-21
RESOLUTION SETTING PUBLIC HEARING ON BAY RIDGE RESCUE
SQUAD, INC.’S PROPOSAL TO PURCHASE AMBULANCE AND USE TAX-
EXEMPT FINANCING FOR SUCH PURCHASE
RESOLUTION NO.: ______________________________________________________, 2021
INTRODUCED BY: ______________________________________________________
WHO MOVED ITS ADOPTION
SECONDED BY: ________________________________________________________
WHEREAS, in accordance with New York State Public Health Law Article 30, the Town of
Queensbury and the Bay Ridge Rescue Squad, Inc. (Squad) have entered into an Agreement for
general emergency ambulance services within the Town, which Agreement sets forth a number of
terms and conditions, including a condition that the Squad 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 Squad to acquire a loan or mortgage without prior approval of
the Queensbury Town Board, and
WHEREAS, the Squad has advised the Town Board that it wishes to trade-in its year
2013 Ford E-450 ambulance and purchase a 2021 Ford F-350 4x4 Chassis Ambulance at a
purchase price not to exceed $199,505, and
WHEREAS, the Squad plans on selling the 2013 Ford E-450 ambulance being replaced
and using received funds toward the purchase of the new ambulance, and
WHEREAS, the Ambulance will be owned and used by the Squad to provide general
emergency ambulance services to the Town and maintained at the Squad’s building located at 1109
Ridge Road in the Town of Queensbury, New York, and
WHEREAS, the Squad plans on paying for the proposed, new Ambulance by using:
1. $ 50,000 – approximate cash down payment; and
2. $150,000 maximum amount of tax-exempt financing with the Adirondack Trust
Company; and
WHEREAS, the Town Board wishes to set a public hearing concerning the Squad’s proposed
purchase, as Town Board approval of such proposed purchase is required by the Squad’s Agreement
with the Town, and such proposed tax-exempt financing requires a public hearing under the Internal
Revenue Code,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board shall conduct a public hearing concerning the
Bay Ridge Rescue Squad Inc.’s proposed Ambulance purchase delineated in the preambles of this
Resolution and the financing of such proposed purchase using tax-exempt financing, on Monday, April
th
5, 2021 at 7:00 p.m., and
BE IT FURTHER,
RESOLVED, that the Town Board hereby authorizes and directs the Queensbury Town Clerk
to publish a Notice of Public Hearing in the Post-Star Newspaper once at least fourteen (14) days prior
to the Public Hearing.
th
Duly adopted this 8 day of March, 2021, by the following vote:
AYES :
NOES :
ABSENT:
•
eiSirati
t800) 5S3-6094
www.nervinc.com
CONTRACT
THIS AGREEMENT, made by and between North Eastern Rescue Vehicles, Inc.,
10 Dwight Park Drive, Syracuse, New York 13209, first party, and Bay Ridge
Rescue Squad, Inc., 1109 Ridge Road, Queensbury, New York 12804, by its
authorized representative, second party
WITNESSETH:
First. The said first party hereby agrees to furnish the apparatus and equipment
according to the specifications hereto attached and made a part of this contract,
and to deliver the same as hereinafter provided.
Second. The first party agrees that all material and workmanship in and about
said apparatus and equipment shall comply with said specifications. In the event
there is any conflict between Customer Specifications and the North Eastern
Rescue Vehicles Proposal, the North Eastern Proposal will prevail. The standard
Demers Warranty will apply.
Third. This contract for ambulance apparatus conforms with all Federal
Department of Transportation (DOT) rules and regulations in effect at the time of
contract signing, and with all Triple "K" Guidelines for Ambulance Apparatus as
published at the time of contract signing, except as modified by customer
specifications. Any increased costs incurred by first party because of future
changes in or additions to said DOT or "KKK" standards will be passed along to
the customer as an addition to the price set forth below.
Fourth. The said apparatus and equipment shall be ready for delivery from
Syracuse, New York within about 120 days after the receipt and acceptance of
this contract and the signed acceptance of the production order at the first party's
office at Syracuse, New York delays due to strikes, failures to obtain chassis,
materials, or other causes beyond its control not preventing, and shall be
delivered to said party of the second party at: 1109 Ridge Road, Queensbury,
New York 12804.
Fifth. The second party hereby purchases and agrees to pay for (1) One Demers
MXP-150E Mounted on a 2021 Ford F-350 4x4 chassis, the sum of: One
Hundred Ninety-Nine Thousand, Five Hundred Five Dollars ($199,505.00), due
upon delivery of said unit.
Payment shall be made directly to first party at its Syracuse, New York office.
Under no circumstances shall payment be made to any other dealer or any other
party except North Eastern Rescue Vehicles, Inc. Any representation that
payment is authorized to be made to another party is in violation of this
agreement.
Net payment is due upon acceptance at Bay Ridge Rescue Suqad, Inc., 1109
Ridge Road, Queensbury, New York12804, unless otherwise specified herein.
If deferred payment arrangements are made, such arrangements shall be in
writing, and second party's obligation thereunder shall be evidenced by
negotiable paper.
Dated: 16th February, 2021
North Eastern Rescue Vehicles, Inc. Customer
Date of Acceptance:
By
Printed Name
Title
North Eastern Rescue Vehicles, Inc.
Dealer# 7087391
By
Kenneth R. Jones
Printed Name
Regional Sales Manager
Term Sheet
Date: February 24, 2021
Borrower: Bay Ridge Rescue Squad, Inc.
Amount/Type: up to$150,000 Term Loan
Purpose: Fund the purchase price of a 2021 Ambulance
Rate: Fixed for five years at 4%then adjusting to 5-year Federal Home Loan Bank
Rate + 2.0% for five years (subject to lifetime floor of 4.0%)
Subject to borrower eligibility, a tax-exempt rate will also be available. Currently, the tax-
exempt equivalent rate would be 3.125%calculated by dividing the taxable rate by a
conversion factor of 1.28.The loan rate will reset on the fifth-year anniversary following
closing based on the above calculation at that time.
The fixed rate will be"held"for 30 days; thereafter,the rate may be adjusted according
to market changes.
Maturity/Amortization: Up to ten years
Prepayment
penalty: 3% if refinanced with another lender within the first five years of the loan.
Collateral:
• First Lien on vehicle being acquired.
Covenant:
1. The bank reserves the right to renegotiate the terms of the loan upon notification that
the Town of Queensbury Funding Contract is not renewed or is terminated.
2. The borrower will maintain a minimum fiscal year end debt service coverage ratio of
1.1x, calculated as follows:
Net income plus Interest, Depreciation,Amortization expenses divided by Principal and
Interest debt service requirement during the most recently completed fiscal year end.
Pre-Closing
Requirements:
• Receipt of a satisfactory purchase contract for vehicle being purchased.
• Receipt of town resolution approving purchase of new vehicle
• Maintain deposit relationship with The Adirondack Trust Company
Annual
Reporting:
• Receipt of fiscal yearend financial statements(audited)
• Receipt of town funding contract supporting annual debt service requirements.
FIRE\Bay Ridge Rescue—Ambulance Purchase—Tax Free—IRS Financing—4-5-21
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH A RESOLUTION ADOPTED
BY THE QUEENSBURY TOWN BOARD ON MONDAY, MARCH 8TH, 2021, THAT THE
TOWN BOARD WILL CONDUCT A PUBLIC HEARING ON MONDAY, APRIL 5TH, 2021 AT
7:00 P.M. AT THE QUEENSBURY ACTIVITIES CENTER, 742 BAY ROAD, QUEENSBURY
TO CONSIDER THE BAY RIDGE RESCUE SQUAD, INC.'S (SQUAD) PROPOSAL TO
REPLACE ONE OF ITS AMBULANCES AND PURCHASE ONE (1) 2021 FORD F-350 4X4
CHASSIS AMBULANCE FOR THE APPROXIMATE TOTAL SUM NOT TO EXCEED
$199,505 AND THE SQUAD'S USE OF TAX-EXEMPT FINANCING TOWARD SUCH
PURCHASE. THE SQUAD WILL, IN PART, FINANCE THE NEW AMBULANCE WITH A
TAX-EXEMPT LOAN IN THE MAXIMUM AMOUNT OF $150,000 OVER TEN (10) YEARS,
WHICH DOES NOT EXCEED THE ESTIMATED USEFUL LIFE OF THE AMBULANCE.
THE AREA PROTECTED BY THE SQUAD IS ALL OF THE GEOGRAPHICAL TERRITORY
OF THE TOWN OF QUEENSBURY SET FORTH IN THE CURRENT EMERGENCY
PROTECTION SERVICES AGREEMENT BETWEEN THE TOWN OF QUEENSBURY AND
THE SQUAD.
ALL PARTIES IN INTEREST AND THE CITIZENS WILL BE GIVEN THE
OPPORTUNITY TO BE HEARD REGARDING THE PROPOSED PURCHASE. FOR
FURTHER INFORMATION, YOU MAY CONTACT THE QUEENSBURY TOWN CLERK'S
OFFICE, 742 BAY ROAD, NEW YORK 12804 - (518) 761-8234 - OR VISIT ON LINE AT
WWW.QUEENSBURY.NET.
BY ORDER OF THE QUEENSBURY TOWN BOARD.
PUBLICATION DATE: ,2021
CAROLINE H. BARBER
TOWN CLERK
TOWN OF QUEENSBURY