Chapter 026, MUNICIPAL GAS UTILITY

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Chapter 26, MUNICIPAL GAS UTILITY

§ 26-1. Creation and operation of facility

A. The Village of Ilion Municipal Gas Utility shall acquire the necessary infrastructure, facilities and either establish necessary functions for or procure contracts for the maintenance, management, service and billing of the gas energy system and a supply of gas such as arc necessary for the creation and operation of the Ilion Municipal Gas Utility.

B. The proposed method of constructing, leasing, purchasing, or acquiring, the facilities necessary for the operation of the Ilion Municipal Gas Utility, if any, together with both the maximum and the estimated costs thereof: the method of furnishing such service and the method of obtaining gas supply shall be as follows.

§ 26-2. Plant and facilities; costs

A. The Village of Ilion Municipal Gas Utility will obtain access to or acquire the portion of the gas distribution system within the village, if any, that is necessary for the village to operate the Municipal Gas Utility by purchase, lease or condemnation from that which is currently owned by the Niagara Mohawk Company, or such other utility that may be servicing the village or by obtaining other facilities as necessary. The Ilion Municipal Gas Utility will acquire, construct or obtain only that equipment and facilities, if any, which arc necessary for the Municipal Gas Utility to provide gas supply to the users of gas energy in the village, or other users as the Municipal Gas Utility may provide gas to, and segregate and operate the Municipal Gas Utility and, as may be needed, to separate itself from the Niagara Mohawk Company or to meter the gas supplied to or used by the Village of Ilion Municipal Gas Utility.

B. The maximum and estimated cost of the items set forth in Subsection A hereof: without the acquisition of the gas distribution infrastructure is expected to be not more than $50,000.

C. The cost of the necessary facilities, if any, and distribution and any other costs that are necessary for the implementation of the Village of Ilion Municipal Gas Utility and the entire costs of the implementation and operation of the Village of Ilion Municipal Gas Utility will be paid from the revenues generated by the Village of Ilion Municipal Gas Utility.

D. None of the costs of the implementation or operation of the Village of Ilion Municipal Gas Utility shall be included in or have any effect on the village general budget or the assessment of village property taxes.

E. In the event that the Board of Trustees of the Incorporated Village of Ilion determine at a later time that it is in the interests of the village to acquire the distribution and other infrastructure in the village, and the cost exceeds the cost stated in this chapter, then it may do so by stating the costs thereof in a local law or resolution amending this chapter which shall be subject to a separate mandatory referendum.

§ 26-3. Service and maintenance of plant, facilities and distribution system

A. The Village of Ilion Municipal Gas Utility will obtain service and maintenance for the equipment and infrastructure of the Ilion Municipal Gas Utility, if any, and the other remaining gas distribution and other equipment that is within the Village from Niagara Mohawk Company or such other utility that is providing service in the village, or the existing gas utility for the time that the utility is mandated to provide those services, or it remains in the best interests of the village to receive the maintenance from that source, and will otherwise contract out the service and maintenance to other suitable contractors as, necessary or when in the best interests of the Village of Ilion and the Ilion Municipal Gas Utility.

B. The Village of Ilion Municipal Gas Utility will obtain billing and management services by obtaining contracts with suitable and acceptable maintenance, management, service and billing companies. The contracts will be supported wherever possible by a performance bond of an amount acceptable to the village.

C. The village will also consider and retain the ability and power to create its own maintenance, management and service and billing department, including the equipment, materials and supplies required for that department, in order to provide billing, service and maintenance to the Village of Ilion Municipal Gas Utility if the village deems it to be in the best interests of the village to do so.

§ 26-4. Gas supply

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