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Chapter 12A  -  Natural Gas Supply

§ 12A-1.
§ 12A-2.
§ 12A-3.
§ 12A-4.
§ 12A-5.
§ 12A-6.
§ 12A-7.
Intent
Establishment and operation.
Plant and facilities.
Service and maintenance.
Gas Supply.
Mandatory referendum.
When effective.


[HISTORY: Adopted by the Board of Trustees of the Village of Farmingdale 4-21-1997 as L.L. No. 2, 1997. Amendments noted where applicable.]


§ 12A-1.    Intent.

    WHEREAS the Incorporated Village of Farmingdale is a village duly incorporated under the laws of the State of New York; and

    WHEREAS the Trustees of the Village of Farmingdale are duly empowered pursuant to § 10 of the Municipal Home Rule Law and § 360 of the General Municipal Law of the State of New York to form a Municipal Gas Utility for the village; and

    WHEREAS it is essential for the well-being, livelihood and safety of the residents and businesses of the village and of the other consumers of gas power in the village, including the village itself, and of their families and guests, for the economic climate of the village and for the protection of private and public property within the village and the value of that property, that the supply and distribution of gas to the residents, businesses and other consumers of gas power in the village, and the village itself, be provided in a reliable manner and at a fair and reasonable cost; and

    WHEREAS the Trustees have determined that the most reliable, fair and economic way for gas and gas service to be provided to the Village of Farmingdale, its residents and businesses and institutions, is by the creation of the Village of Farmingdale Municipal Gas Utility;

    The Trustees of the Village of Farmingdale hereby enact this local law for the intent and purpose of establishing a Municipal Gas Utility pursuant to § 360 of the General Municipal Law and all of the powers and duties there under.


§ 12A-2.    Establishment and operation

A.    The Village of Farmingdale Municipal Gas Utility shall acquire the necessary plant and facilities, and either establish necessary functions for or procure contracts for the maintenance, service and billing of the gas energy system and utility and a supply of gas such as are necessary for the creation of the Farmingdale Municipal Gas Utility.
B.    The proposed method of constructing, leasing, purchasing or acquiring the plant and facilities for the Municipal Gas Utility, together with both the maximum and the established costs thereof, the method of furnishing such service and the method of obtaining gas supply shall be as follows in §§l; 12A-3 through 12A-5.


§ 12A-3.    Plant and facilities.

A.    The Village of Farmingdale Municipal Gas Utility will obtain, by purchase, lease or condemnation, access to or use of the gas distribution system within the boundaries of the village currently owned by the Long Island Lighting Corporation (Lilco) and will construct such additional infrastructure as may be needed to separate itself from the Lilco systems. The Village of Farmingdale Municipal Gas Utility also may construct, in its discretion, new infrastructure instead of acquiring Lilco property.
B.    The maximum and estimated cost of the items set forth in Subsection A hereof should be $500,000.
C.    The cost of the acquisition of the plant, facilities, distribution system and any other costs that are necessary for the implementation of the Village of Farmingdale Municipal Gas Utility shall be paid by the issuance of a bond by the village for the useful life of the equipment and facilities, and the longest maturity possible, which is expected to be 30 years.
D.    None of those costs of the acquisition, construction, development, implementation and operation of the Village of Farmingdale Municipal Gas Utility shall be included in or have any affect on the village general budget or the assessment of village property taxes.
E.    The entire costs of the acquisition, construction, development, implementation and operation of the Village of Farmingdale Municipal Gas Utility, including the debt service of any financing that is created in order to pay the costs thereof, including the long-term bond that is described herein, as well as any other costs of the Farmingdale Municipal Gas Utility Corporation will be paid from the revenues generated by the Village of Farmingdale Municipal Gas Utility only.


§ 12A-4.    Service and maintenance.

A.    The Village of Farmingdale Municipal Gas Utility will obtain service and maintenance for the infrastructure of the Municipal Gas Utility, and billing and management services, by obtaining contracts with suitable and acceptable maintenance, service and billing companies. The contracts will be supported wherever possible by a performance bond of an amount acceptable to the village.
B.    The village will also consider and retain the ability and power to create its own maintenance and service and billing department, including the equipment, materials and supplies required for that department, in order to provide service and maintenance to the Village of Farmingdale Municipal Gas Utility if the village deems it to be in its best interests to do so.


§ 12A-5.    Gas supply.

    The Village of Farmingdale Municipal Gas Utility will obtain its supply of gas by contracting with a utility or supplier to provide the supply.


§ 12A-6.    Mandatory referendum.

A.    This local law shall be subject to approval by a mandatory referendum of the residents of the Incorporated Village of Farmingdale, pursuant to and as set forth in § 360 of the General Municipal Law of the State of New York, the Election Law and Village Law of the State of New York.
B.    The Village of Farmingdale Municipal Gas Utility shall be effective and granted the full powers entitled to it by law on the date of the approval by a simple majority of the referendum and the filing of the local law with the Secretary of State of New York.


§ 12A-7.    When effective.

    The local law shall take effect on the filing of the approved local law with the Secretary of State of New York, which shall be within five days after its approval by a simple majority of the voters by mandatory referendum at an election to be held to approve this local law, pursuant to § 360of the General Municipal Law.1


1 Editor's Note: This local law was passed by referendum at a special election 7-22-1997.

 

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