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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
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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,
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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.
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Duly adopted this 5 day of April, 2021 by the following vote:
AYES :
NOES :
ABSENT:
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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
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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
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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.