The Village of Hamburg municipal electric utility shall acquire the
necessary plant and facilities, if any, and either establish necessary functions
for or procure contracts for the maintenance, service and billing of the electrical
energy system and utility, and a supply of electricity, such as are necessary
for the creation of the Hamburg municipal electric utility.
The proposed method of constructing, leasing, purchasing, or acquiring,
the plant and facilities for the municipal electric utility, together with
both the maximum and the estimated costs thereof, the method of furnishing
such service and the method of obtaining electrical supply, shall be as follows:
A. Plant and facilities.
(1) The Village of Hamburg municipal electric utility will
initially operate by the transportation and distribution of electricity through
the property of the New York State Electric and Gas Company (NYSEG) or such
other company owning wires, poles or other assets necessary for the transportation
and distribution of electricity by the Village of Hamburg municipal electric
utility to its customers, and then, after approval by the Board of Trustees,
will acquire, build or construct property necessary for the transportation
and distribution of the electric supply, and the servicing, operation and
maintenance thereof.
(2) The Village of Hamburg municipal electric utility will
obtain, by purchase or condemnation, the electrical distribution system within
the boundaries of the village currently owned by the New York State Electric
and Gas Company (NYSEG), or other electric company operating in the village,
and will construct such additional infrastructure as may be needed to separate
itself from the NYSEG system, if necessary. The Village of Hamburg municipal
electric utility also may construct its own generating facilities to supply
electrical energy to its customers and, if necessary, in its discretion, may
construct new infrastructure instead of acquiring NYSEG property.
(3) The initial cost of the commencement of the operation of the municipal electric utility will not exceed a maximum of $25,000. In the event that the Board of Trustees determines to acquire, build or construct the poles, wires and other assets necessary for the transportation and distribution of the supply of electricity, including the maintenance, operation and servicing thereof, the maximum and estimated cost of the items set forth in Subsection
A(1) and
(2) should be not more than $6,019,447. It shall be a condition of the operation of the municipal electric utility, and this chapter, that the Board of Trustees of the Village of Hamburg, prior to spending a cost of more than a total of $25,000 for the amounts stated in Subsection
A(1) and
(2), will submit the plan to another public referendum for approval.
(4) 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 Hamburg municipal electric 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.
(5) The entire costs of the acquisition, construction, development,
implementation and operation of the Village of Hamburg municipal electric
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 Hamburg municipal electric utility, will
be paid in the first instance from the revenues generated by the Village of
Hamburg municipal electric utility and will not have any effect on the general
budget or real estate taxes of the village.
B. Service and maintenance of plant, facilities and distribution
system.
(1) The Village of Hamburg municipal electric utility will
obtain service and maintenance for the infrastructure of the municipal electric
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.
(2) 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 Hamburg municipal
electric utility if the village deems it to be in its best interests to do
so.
C. Electrical supply. The Village of Hamburg municipal electric
utility will obtain its supply of electricity either by contracting with a
utility or supplier, or by generating its own electricity or a combination
thereof.