City of Batavia, NY Chapter 20 Municipal Utility Agency

[HISTORY: Adopted by the City Council of the City of Batavia 8-8-2005 by L.L. No. 4-2005.[1] Amendments noted where applicable.]

[1] Editor's Note: This chapter provided for an effective date of 1-1-2006 and was approved by referendum at the 11-8-2005 general election.

§ 20-1 Membership.

A. There is hereby created a City of Batavia Municipal Utility Agency (hereinafter the "Agency"). The Agency shall consist of seven members, five of which shall be appointed by the City Manager with the confirmation of the City Council. The remaining two members shall be the current City Manager and a current Council member so designated by the Council. The Chairperson of the Agency shall be designated by the City Manager from among the seven members with the confirmation of the City Council. All members shall be residents of the City of Batavia at the time of their appointment and during the term of office.

B. Members of the Agency shall be appointed for a term of three years except that of those first appointed, three members including the Chairperson shall be appointed for a term of three years and two members shall be appointed for a term of one year. In no case shall any member appointed serve for more than two consecutive terms without a one year break in service. The City Manager shall designate the terms to be served by the initial members. No member shall hold office beyond the expiration of such member's term unless reappointed. The City Manager and designated Council member shall hold office for the term(s) of their respective appointed/elected office.

C. Vacancies shall be filled in the same manner as original appointments. Vacancies occurring by other than expiration of term shall be filled for the balance of the unexpired term.

D. The City Manager, with the confirmation of the City Council, may remove any member for inefficiency, neglect of duty, misconduct in office or any other reason.

E. Neither the Chairperson nor any other member shall receive a salary. Each member, including the Chairperson, shall be entitled to reimbursement for actual and necessary expense incurred in the performance of that member's official duties. A majority of the whole number of members of the Agency then in office shall constitute a quorum for the transaction of any business or the exercise of any power of the Agency. For the transaction of any business or the exercise of any power of the Authority, the Authority shall have the power to act by a majority vote of the members present at any meeting at which a quorum is in attendance; however, in no event shall the Agency act without an affirmative vote of three members, notwithstanding any provision to the contrary.

§ 20-2 Powers and duties.

A. General powers and duties. The Agency, on behalf of the City and consistent with General Municipal Law § 360-366, shall have the power to establish, construct, lease, purchase, own, acquire, use and/or operate a public electric utility service, gas utility service, any alternative energy services, and/or any other public utility within and/or without the territorial limits of the City for the purpose of furnishing to the City or for compensation to inhabitants of the City and/or outlying areas, any electric, gas, alternative energy service, or other utility services similar to that furnished by any public utility company specified in the Public Service Law and to purchase electrical, gas or alternative energy, or other utility service from the State of New York or from any state agency, or other municipal corporation, or from any private or public corporation or other sources.

B. Specific powers and duties. In discharging its power and duties, the Agency:

(1) Shall have the authority with the approval of the City Council to contract for or otherwise purchase or acquire electricity, gas or any alternative energy source or other utility service from the State of New York, any agency of the State of New York, any other municipal corporation, or any private or public corporation, or other sources, as shall be available for the City.

(2) Shall have the authority with the approval of the City Council to negotiate with Niagara Mohawk, National Grid the parent company, affiliates or subsidiaries thereto and/or other utility companies or other municipal corporations, or any private or public corporations, for the use, by lease and/or by contract or such portion of the appropriate distribution, substation and transmission facilities necessary to transmit/transfer to the City, or for compensation to inhabitants of the City, such quantities of power as may be acquired by the Authority; and/or sell such power to Niagara Mohawk and/or other utility companies or others for resale to its customers inhabiting the City; enter into contracts and/or leases entered into with electric and gas utilities for distribution of power purchased by the Agency which shall include a provision that the net savings associated with such power sales or on taxes shall be passed along to the customers and shown separately on their bills as credits.

(3) Shall have the authority with the approval of the City Council to determine what, if any, additional facilities and incidental improvements would have to be constructed and/or purchased in connection with the use, by lease and/or contract of the foregoing facilities, to project the estimated costs thereof and to recommend that the City Council authorize the purchase or construction of such facilities or improvements, where the Agency determines that same would be desirable and in the interest of the City, provided that the City shall not construct and/or purchase such facilities or improvements without the approval of the City Council.

(4) May appoint, upon approval by the City Manager and the City Council, an Executive Director to be responsible for the administration and day-to-day operations of the Agency. The Executive Director, who at the time of appointment shall be a resident of the City of Batavia, shall not be a member of the Agency, shall hold office at the pleasure of the Agency and the City Council, and shall be paid a salary to be fixed by the Agency. The Agency shall be empowered to delegate any one or more of its operational and administrative functions or powers to the Executive Director, provided, however, that the Agency shall delegate to the Executive Director such functions and powers, including without limitation, that of appointment, discipline and removal of employees, as are necessary for the Executive Director to discharge his/her responsibilities.

(5) Consistent with applicable law, shall have the authority to make and alter bylaws for its organization and internal management and to its property and facilities, which bylaws, rules and regulations shall be filed with the Clerk of the City of Batavia.

(6) Shall have the authority with the approval of the City Council to enter into contracts, leases and other instruments and to acquire, hold and dispose of real or personal property necessary and convenient to the exercise of its powers.

(7) Shall have the authority with the approval of the City Council to appoint, fix the compensation of and provide for the indemnification of such officers and employees as it may require for the performance of its duties and to retain or employ consultants or advisors on a contract basis or otherwise for rendering professional or technical services and advice.

(8) Shall have the authority with the approval of the City Council to arrange for temporary financing prior to the receipt of revenues sufficient to meet current costs or expenses for obtaining such advances from the City Treasurer as may be authorized by the City Council. Loans obtained in this manner shall possess a sufficient excess of cash over current obligations to permit such repayment.

(9) Shall have the authority with the approval of the City Council to initiate and prosecute all inquiries, investigations, surveys and studies which it may deem necessary or desirable for the effectuation of powers and duties conferred upon it by this chapter.

(10) Shall have the authority to exercise such other powers granted under law that are necessary or convenient to carry out and effectuate the purposes and provisions of this chapter.

(11) Shall have the authority to study and recommend to the City Council the development of alternative energy sources, energy efficiency programs/projects or other energy programs in order to satisfy local needs and important public purposes.

C. Those provisions of the General Municipal Law pertaining to the award and execution of contracts and leases shall apply to the Agency; provided, however, that the Agency at a public meeting is hereby empowered to adopt its own rules and regulations, consistent with law, regarding the award and executive of Agency contracts and leases.

D. All monies of the Agency shall be managed by the City Director of Finance and used by the Agency for the purposes of the Agency in accordance with sound financial procedures. The Agency shall utilize the fiscal services of the City Treasurer. Monies of the Agency deposited with the City Treasurer shall be subject to requisition by the Chairperson of the Agency or of such other officer or employee as the Agency shall authorize to make such requisition. All monies of the Agency deposited with the City Treasurer shall be maintained in a separate bank account or accounts and, except for investment purposes, shall not be commingled with any other monies. All deposits of monies with the City Treasurer shall, if required by the City Treasurer or the Agency, be secured by obligations of either the United States or the State of New York, or its municipalities or a market value equal at all times to the amount of the deposits.

E. The City Finance Director and the Agency, within 90 days after the end of its fiscal year, shall annually submit to the City Council a complete and detailed report setting forth, in addition to the financial statements required by § 20-5 of this chapter, the operations and accomplishments of the Agency during such year and its recommendations in furtherance of the purposes of the Agency.

§ 20-3 Method of operation; rate setting.

The method of operation of the rates, rentals and charges for electric, gas and alternative energy utility service and the procedure for their collection shall be fixed by the City Council in accordance with laws. The Agency shall recommend to the City Council the establishment of a system of consumer electric, gas, alternative energy rates and other charges, the intent of which shall be to enable the Agency to be self-liquidating, and shall impose and collect the rates established in a manner consistent with law.

§ 20-4 Payment in lieu of taxes.

With respect to any property the Agency may acquire within the City from any private utility company, the Agency shall make payments in lieu of taxes to the appropriate municipalities or districts in an amount established by negotiation with each municipality or district.

§ 20-5 Annual audit.

The City Finance Director and the Agency shall maintain books or records and account with respect to its operations in accordance with generally accepted accounting principles consistently applied. Within 90 days after the end of the Agency's fiscal year, the Agency shall deliver to the City Council its financial statements at the end of such year and for the year then ended in accordance with generally accepted accounting principles and accompanied by a report thereon, prepared by a firm of independent accountants of recognized national standing based upon an audit using generally accepted standards.

§ 20-6 Termination.

The Agency's existence shall continue until terminated by law; provided, however, that no such law shall take effect so long as the Agency shall have obligations outstanding. The terms of the members of the Agency shall expire upon the enactment of a local law terminating the Agency's existence and the City Council shall constitute the Agency until the effective date of the Agency's expiration. Upon termination of the existence of the Agency, all its rights and properties shall pass to and be vested in the City. No law terminating the existence of the Agency shall be enacted except upon an affirmative vote of six members of the City Council.