Whereas the Incorporated Village of Lynbrook is a village duly
incorporated under the laws of the State of New York, and; the Trustees
of the Village of Lynbrook are duly empowered pursuant to § 360
of the General Municipal Law of the State of New York to form a Municipal
Electric Utility for the village and whereas it is essential for the
residents and businesses and other consumers of electric power in
the Village of Lynbrook, including the Village of Lynbrook itself,
and the well-being, livelihood and safety and the economic climate
of the residents and businesses of the village and of the village
itself and of their families and guests and for the protection of
private and public property within the village and the value of that
property that the supply and distribution of electricity to the residents,
businesses and other consumers of electric power be provided in the
village, in a reliable manner, and at a fair and reasonable cost and
whereas the Trustees have determined that the most reliable, fair
and economical way for electrical service to be provided to the Village
of Lynbrook, its residents and businesses and institutions is by the
creation of a Village of Lynbrook Municipal Electric Utility, the
Trustees of the Village of Lynbrook hereby enact this chapter for
the intent and purpose of establishing a Municipal Electric Utility
pursuant to § 360 of the General Municipal Law and all of
the powers and duties thereunder.
The Village of Lynbrook Municipal Electric Utility shall acquire
the necessary plant and facilities, procure a maintenance, service
and billing agreements and a supply of electricity such as are necessary
for the creation of the Lynbrook Municipal Electric Utility. The proposed
method of constructing, leasing, purchasing or acquiring the plant
and facilities for the municipal 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 Lynbrook Municipal Electric Utility will obtain by
purchase or condemnation the electrical 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 system. The village
of Lynbrook Municipal Electric Utility also may construct its own
generating facilities to supply electrical energy to its customers
and, in its discretion, may construct new infrastructure instead of
acquiring Lilco property.
(2) The maximum and estimated cost of the items set forth in Subsection
A(1) hereof should be $35,070,000.
(3) 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 Lynbrook 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.
(4) None of those costs of the acquisition, construction, development,
implementation or operation of the Village of Lynbrook Municipal Electric
Utility shall be included in or have any affect on the village general
budget or the assessment of village property taxes.
(5) The entire costs of the acquisition, construction, development, implementation
and operation of the Village of Lynbrook 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 Lynbrook Municipal Electric
Utility will be paid from the revenues generated by the Village of
Lynbrook Municipal Utility only.
B. Service and maintenance of plant, facilities and distribution system.
(1) The Village of Lynbrook Municipal 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 Lynbrook
Municipal Electric Utility if the village deems it to be in its best
interests to do so.
C. Electrical supply. The Village of Lynbrook Municipal 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.