May 31, 2004

Fire contract revisions

I mentioned a couple of weeks ago that the Town Board had authorized the Supervisor to revise contracts with the Fire Companies. I now have three of the contracts in their original and revised forms:

In the originals, clauses 16 and 17 read:

17. The Town may request an independent audit or review, no more than once per year, of the financial affairs of the Company for the present and/or prior years as the Town may determine. The form, content and Certified Public Accountant performing such audit or review shall be determined by the Town. The Town shall pay the direct costs of the Company related to such audit or review not to exceed $1,000.00, which costs are to be documented by the Company. The Company agrees to make diligent and reasonable efforts to fully, completely and timely comply with reasonable requests of the Certified Public Accountant performing such audit or review for the production of all records, receipts, bills, vouchers, contracts, bank statements, checks, financial statements and any other similar documents requested by such person.
18. The Company agrees to establish a capital equipment reserve account to purchase capital equipment. The Company agrees that $______ of the first payment made under this contract shall be deposited into said account and the use of such funds shall be restricted by the Company to capital equipment purchases.

At the April 8th meeting, Councilman Marty Christofferson requested changes to these clauses. The contracts were reissued to say:

17. The Town may request an independent audit or review, no more than once per year, of the financial affairs of the Company for the present and/or prior years as the Town may determine. The form, content and Certified Public Accountant performing such audit or review shall be determined by the Town. The Town shall pay for the services, costs and disbursements of the auditor and the Company shall have no responsibility for any such items. The Town shall pay the direct costs of the Company related to such audit or review not to exceed $1,000.00, which costs are to be documented by the Company. The Company agrees to make diligent and reasonable efforts to fully, completely and timely comply with reasonable requests of the Certified Public Accountant performing such audit or review for the production of all records, receipts, bills, vouchers, contracts, bank statements, checks, financial statements and any other similar documents requested by such person.
18. The Company agrees to establish a capital equipment reserve account to purchase capital equipment. The Company agrees that $______ of the first payment made under this contract shall be deposited into said account and the use of such funds shall be restricted by the Company to capital equipment purchases and to borrowing from for only unforeseen emergency major expenses.

Additions are in bold. The issue of repayment terms for the borrowing allowed in Clause 18, raised by Councilman Chris Michaels at the April meeting, seems to have been left unaddressed.

Posted by simonstl at May 31, 2004 09:57 AM
Note on photos
Comments
Comment
-->