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237.2011 WGF Breach Agreement RESOLUTION REGARDING BREACH OF AGREEMENT BY WEST GLENS FALLS VOLUNTEER FIRE COMPANY, INC. RESOLUTION NO.: 237, 2011 INTRODUCED BY: Mr. Tim Brewer WHO MOVED ITS ADOPTION SECONDED BY: Mr. Anthony Metivier WHEREAS, by Resolution No.: 108,2010, the Town of Queensbury and West Glens Falls Volunteer Fire Co. (Fire Company) entered into a three (3) year Agreement for fire protection services st dated as of January 1, 2010 (Agreement), and WHEREAS, in March, 2011, the Fire Company contacted the Queensbury Town Board requesting a Workshop to discuss and receive permission to purchase a boat and finance the purchase, and WHEREAS, the Town Supervisor requested information concerning the potential purchase, why they felt it was necessary, and other related details, and th WHEREAS, on April 4, 2011, the Fire Company responded with some details concerning the proposed purchase, and WHEREAS, the Town Supervisor asked for further information and indicated that he did not expect the Town Board to approve the purchase and its associated financing, and WHEREAS, the Town Board received no further response and believed that the Fire Company had decided not to make such purchase and borrow such funds, and WHEREAS, in July, 2011 the Town Board learned that, despite this, the Fire Company has purchased such boat and borrowed the money to do so, and WHEREAS, in accordance with paragraph 5(A) of the Agreement, the Fire Company cannot “incur debt of any amount” without prior approval by Resolution of the Town Board, and WHEREAS, the Fire Company has in bad faith breached the Agreement, and WHEREAS, the Town has already paid all amounts detailed as due for the Fire Company to provide its fire protection services during 2011, and WHEREAS, at this time, the Town Board has not decided to exercise its power to terminate the Agreement as of January 1, 2012 for such blatant breach, but has decided it would be more appropriate, considering the needs of the Town, to decrease the amount it pays to the Fire Company in 2012 by the amount the Fire Company borrowed and spent on such boat, NOW, THEREFORE, BE IT RESOLVED, that the Queensbury Town Board, resolves that the West Glens Falls Volunteer Fire Co., Inc., has acted in bad faith and breached its fire protection services Agreement with the Town of Queensbury, and BE IT FURTHER, RESOLVED, that no further payments shall be made to the Fire Company under the Agreement until the Town Board is satisfied it has received all financial information relating to the purchase of such boat and the debt incurred to finance it, and BE IT FURTHER, RESOLVED, that the amount to be paid to the Fire Company during 2012 shall be decreased by the total amount the Fire Company borrowed to purchase such boat during 2011 plus all interest payments made or to be made by the Fire Company on such debt during calendar years 2011 and 2012, 2 and BE IT FURTHER, RESOLVED, that such decrease shall be allocated pro rata over the payments detailed in Paragraph 3 of the Agreement, and BE IT FURTHER, RESOLVED, that the Town Board authorizes and directs the Town Supervisor and/or Budget Officer to take all actions necessary to effectuate the terms of this Resolution. th Duly adopted this 25 day of July, 2011, by the following vote: AYES : Mr. Metivier, Mr. Montesi, Mr. Strough, Mr. Brewer, Mr. Stec NOES : None ABSENT:None 3