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I haven't heard of the Burnham 3-pass boilers being leakers. Some of their V-7 and V-8 series were, but these were pin-type boilers.

agree with Bob @Ironman Boan on the contractor being the more important part of the job, and that Buderus is the best of the cast iron boilers, but if you are replacing the boiler anyway you should look at the Energy Kenitics offerings. they have a 🦸🏻‍♂️ control system that reduces the fuel usage over and above that of mere mortal (normal) controls systems

So I looked up the related ordinances regarding the requirement for a visual and audible alarm for fuel oil storage tanks in Westchester County NY. I did a word search on the entire document related to Storage Tanks and found only 3 places where the phrase "audible and visual" show up in that document. Here they are:

Section 873.2502.3 starts on page 38 and continues until your reach subsection (d) on page 45

Section 873.2503.3 starts on page 62 and continues to subsection (d) on page 68 and finishes up on page 69

There is an unrelated section about Aboveground Storage Tanks (AST) here:

Section 873.2504.3 starts on page 82 and continues to subsection (d) on page 85

All three part (d) item (1) of the ordinance are identical as to the requirement of an Audible and Visual means of detection MAY be used. There is nothing that states that an audio and visible detection system MUST be used. I believe that the judge may be overstepping his authority in his interpretation of the statute. I might be inclined to appeal that decision and $500.00 fine.

That Statute looks more like ongoing monitoring of possible fuel leaking, not for monitoring during the tank filling and delivery process. The delivery company has that covered already with their whistle attachment.

As far as ongoing monitoring is concerned, If you place a timer on the oil valve of each burner, that will clocks how long the valve is open, and multiply the total hours (or minutes divided by 60) by the firing rate of the nozzle, that will give you the exact amount of fuel being used from your tank. Compare that with daily (or weekly) tank measurements with a tank stick. That should tell you if the amount of fuel leaving the tank is equal to the amount of fuel being delivered to the burner(s). You can also reconcile those daily/weekly numbers every time you get a delivery. Purchasing some fancy electronic device may be an option but sometimes just good old human interaction and mathematics is much more accurate.   A log book will be needed for evidence that you are in compliance with the leak monitoring statute of Westchester County NY

I hope this helps.