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2.1 2.1 FIRE & RESCUE\\Bay Ridge Rescue – Approve Tax Exempt IRS Financing to Pay for Ambulance After PH - 4-5-2021 RESOLUTION AUTHORIZING BAY RIDGE RESCUE SQUAD, INC.’S PROPOSAL TO PURCHASE AMBULANCE AND AUTHORIZING INCURRENCE OF TAX-EXEMPT FINANCING/ DEBT FOR SUCH PURCHASE RESOLUTION NO.: _______________________________________________________, 2021 INTRODUCED BY: _______________________________________________________ WHO MOVED FOR 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, Town Board approval of this proposed purchase is required by the Squad’s Agreement with the Town, and the proposed tax-exempt financing requires a public hearing under the Internal Revenue Code, and th WHEREAS, on Monday, April 5, 2021, the Town Board held a public hearing concerning the Squad’s proposed purchase and tax-exempt financing as required by the Squad’s Agreement with the Town and the Internal Revenue Code and heard all interested persons, and WHEREAS, the Town Board believes that this new Ambulance will provide additional safety protection for the Town and also believes it to be necessary, financially beneficial and in the public interest to consider such financing, and WHEREAS, the Town Board therefore wishes to adopt a Resolution authorizing such Ambulance purchase and the Squad’s corresponding incurrence of tax-exempt debt and financing, NOW, THEREFORE, BE IT RESOLVED, that the Queensbury Town Board hereby approves of the Bay Ridge Rescue Squad, Inc.’s proposal to purchase a 2021 Ford F-350 4x4 Chassis Ambulance as set forth in the preambles of this Resolution for an amount not to exceed $199,505, and BE IT FURTHER, 2 RESOLVED, that the Town Board further approves of the Squad’s incurrence of approximately $150,000 maximum amount in debt for such purchase with the understanding that the Town Board is relying upon the Squad’s assurance that the Ambulance is serviceable and suitable for its long-term intended use, and approves of the tax-exempt financing with the Adirondack Trust Company for the purpose of purchasing the new Ambulance and associated equipment, with such tax- exempt financing having a ten (10) year term, and BE IT FURTHER, RESOLVED, that the Town of Queensbury does not guarantee such debt with the financial institution on behalf of the Squad 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 authorizes and directs the Town Supervisor and/or Budget Officer to take any actions necessary to effectuate the terms of this Resolution. th Duly adopted this 5 day of April, 2021 by the following vote: AYES : NOES : ABSENT: 3 . r ri,,, ,,. .:1 ,. -4 teinem RESCUE VEHICLES (800) 553-6094 www.nerviinc.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 • 4..4,. 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.