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Town manager: Allegiance Fire & Rescue has cancelled contract; council has until June 19 to decide on purchase or cancellation with $111,085 fee
Summary
Interim town manager told the council Allegiance Fire & Rescue has cancelled the contract; the town can cancel the order with a 10% fee ($111,085) or proceed and put the purchase to voters before the June 19, 2026 deadline.
Interim Town Manager Denise told the Gray Town Council on Feb. 3 that Allegiance Fire & Rescue has notified the town it is cancelling its contract. She said the town remains within the contractual window to cancel the purchase with a 10% cancellation fee of $111,085, or to send the funding question to voters as part of an early June ballot.
The manager said the council has until June 19, 2026 to decide whether to proceed with the purchase, cancel the order (incurring the 10% fee), or finance the purchase and submit the question to voters. She said she will prepare an item and a copy of the cancellation letter for the council’s consideration at an upcoming meeting.
What’s next: The manager will submit a written item and the Allegiance letter for a future meeting so the council can decide whether to send the purchase question to voters in early June, cancel and pay the 10% fee, or pursue alternative financing. No vote was taken at the Feb. 3 meeting.
