HomeMy WebLinkAboutMunicipal Utility 1998PUBLIC HEARING
SOUTHOLD TOWN BOARD
APRIL 28, 1998
8:00 P.M.
ON A PROPOSED "LOCAL LAW IN RELATION TO CREATING A MUNICIPAL ~] ,: ~,
UTILITY IN THE TOWN OF SOUTHOLD".
Present:
Supervisor Jean W. Cochran
Councilwoman Alice J. Hussle
Justice Louisa P. Evans
Councilman William D. Moore
Councilman Brian C. Murphy
Town Clerk Elizabeth A. Neville
Town Attorney Gregory F. Yakaboski
Absent: Councilman John M. Romanelli
COUNCILWOMAN HUSSIE: "Public Notice is hereby given that there has
been presented to the Town Board of the Town of Southold, Suffolk
County, New York, on the 31st day of March, 1998, a Local Law entitled,
"A Local Law in Relation to Creating a Municipal Utility_ in the Town of
Southold", pursuant to Section 360 of the General Law of the State of New
York. Notice is further given that the Town Board of the Town of Southold
will hold a public hearing on the aforesaid Local Law at the Southold
Town Hall, 53095 Main Road, Southold, New York, on the 28th day of
April, 1998, at 8:00 P.M., at which time all Interested persons will. be
given an opportunity to be heard. This proposed "Local Law in Relation
to Creating A Municipal Utility in the Town of Southold, reads as follows:
TOWN OF SOUTHOLD
A Local Law In Relation to the Cre~clon of'a Municipal
Bectrlc Utility In the Town of Southold
BE IT ENACTED, the Town Board of the Town of Southold as follows:
Pu~suan1: 1:o Section 10 of 1:he Home Rule Law, and Sec~C[on 360
of the General Mu~ic~paL Law, the Town of Southold, County of
SuffoLk a/id State of New York,'hereby enacts 'this local l=w to
create the Town of Southol~ Munioipal Ele~crio Utility.
pg 2 - PH
1.1 lB). Effective Date.
The local law shall take effect on ~he filing of the approved
Local Zaw with the Secretar~ of State of New York,' which shall be
witl~in five (5) .days after its approval by a s~mple majority of
the voters by m~/tdatory referendum at an election to be held to
approve this local law, pursuant to Secti6n 360 of the General
Municipal Law.
;I..2. IntenT..
WHEREAS the Tow~ of'Southold is a Town duly formed u~der the
laws of the State of New York, and;
~ the Tow~ Board ~f the Tow~ of Southold is duly'
e~powered pursuant to Section 360 of the ~eneral Municipal Law of
the State of New York to form a Municipal Electric Utility for the
Town,
~:~EAS it is esse~tial for the well-being, livelihood and
safety of the residents and businesses of the Town, an~ of the
other consumers of eleot~i.c power in the Town, including the Town
itself, and of their families and guests, for the economic climate
of the Town, and for the protection of private and public pro. party
within the Town and the value of that property, that the supply
and distribution of electricity to the residents, businesses
other consumers of electric power in the Town, and the Town
itself, be provided in a reliable marker, and at a fair and
reasonable cost, and; ·
WHEP~A$ the Town .Board has determ/ned that the most reliable,
fair, and economical way for the supply of electricity .end
pg 3 - PH .,
electrical service to be provided to the Town of Southold, its
residents end businesses and institutions, is by the creation of
the Town of Southold Municipal Electric Utility, the Town Board of
the Town of Southold hereby, enact this local law for the intent
and purpose of establishing a Municipal Electric Utility. pursuant
to Section 360 of the General Municipal Law, end all of the' powers
and duties thereunder.
Section 2.;~..:. ~.nd ~aoiXities, Hainte~anoe
The Town of Southold Municipal Electric Utility shall acquire
the neoessary equ~.~i~nd facilities, and either establish necessary
functions for or procure contracts for the maintenence, service
and billing of the electrical energy system and utility, and a
supply of electricity such as are necessary for the creation of
the Southold Municipal Electric Utility.
The proposed method of constructing, leasing, purchasing, or
acquiring, theeq~pmm~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~
2.X~=~m~t, and Fao~lit~es.
A. The Town of Southold Municipal Electric Utility will
obtain by purchase or oond-~_nation the electrical distribution
system within the boundaries of 'the Town currently owned by the
Long Island Lighting Corporation ("Lilco"), and purchase,
condemnation or agreement for. the use of the equipment of the
Fishers Island Electric Company, and will construct such
additional infrastructure as may be needed to separate itself from
the Lilco system.
pg ~ - PH
The Town of Southold 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.
B. The maximin and estimated cost of the items set forth in
subparagraph A. hereof, should be forty-seven million one hundred
thousand dollars ($47,100,000).
C. The cost of the acquisition of the e~u~,~,;,facilities,
distribution system and any other costs that are necessary for the
implementation of the Town of Southold Municipal Electric Utility
shall be paid by the issuance .of a bond by the Town for the ~seful
life of the equipme~t and facilities, and the longest maturity
Possible, which is expected to be thirty (30) years.
D. The entire costs of the acquisition, constructi, on,
development, implementation and operation of the TOWn of Southold
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 Southold Municipal Electric Utility, will
be paid in the first instance from the revenues generated by the
ToWn of, Southold Municipal Electric Ut~.lity, and will not have any
effect on the general budget or real estate t~xes of the Town.
· 2.2. · 8eL~r£oe Md Maintenance of Equipment.
Fao$1$t~es. and DistrSbUt~On System.
pg 5 - PH
A. The Town of Sou~hold 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 perf. o~mance bond of an amount acceptable to
the Town.
B. The Town will also consider and retain the ability
and power to create its own maintenance and 'service and billing
department, including the e~uipment, materials, and supplies
required for that department, in order to provide service and
maintenance to the Town of Southold Municipal Electric UtiLity if
the Town de~ it to be in its best interests to do so.
2 · S · Electrical
A. The .Town of Southold Municipal Electric-Utility will
obtain its supply of eleOtrioity either by contracting with a
utility or supplier, or by generating its own electricity, or a
combination .thereof ?
3.0. ~andator¥ Referendum.
This Local Law shall be subject to approval by a ~-ndato, ry
referendum of the residents of the Town of Southold, to be
conducted at an Election or Special Election pursuant to and as
set forth in Section 360 of the General Municipal Law of the State
of New York, the Election Law and Town Law of the State of New
York ·
pg 6 - PH
The Town of Southold Municipal Electric Utility shall be effective and
granted the full posers 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.
BY ORDER OF THE TOWN BOARD OF THE TOWN OF SOUTHOLD,
SOUTHOLD, NEW YORK.
Dated: March 31, 1998. Elizabeth A. Neville, Southold Town Clerk." There
is an affidavit assuring the publication of this in the Traveler-Watchman,
also that it has been posted on the Town Clerk's Bulletin Board. There is
no correspondence.
SUPERVISOR COCHRAN: You have heard the reading of the Local law.
Usually when we have a hearing on a Local Law, I, as Supervisor, ask is
there anyone who would like to speak pro or con in relation to the Local
Law. I think this is much too important to us, so I am not going to ask
pro or con. I am just going to ask for anybody that has any comment, or
would like to ask questions. No question is too small, and we will take it
from there. So, please, I don't want anybody to go home with a burning
question. I want everyone that has something to ask don't feel it is silly,
ask it. We, as a Board, have a lot of questions. There is a lot of
information that has to be obtained before we ever get to where we think
we want go. So, don't feel that any question is too small, and I will start
by taking this gentleman's comments right here. Give us your name, and
then share with us.
WILLIAM ENCLIS: My name is Bill Englis, Donna Drive, Mattituck. I
am a long time follower and investor in electric utilities. I am also a
member of the Southold Town Board of Assessment Review. I have two
questions for the Board. Item number one, have we had any indication
whatever that the regulatory authorities are going to let Southold just walk
away from it's obligations under the stranded course and long term debt of
LILCO? After all we own part of that in essence. That is question number
one. Question number two, have we considered all the ramifications of
condemnation? Under condemnation unless the law has been changed in the
last few years you condemn something, and then the price is set after the
fact by a Judge, and you have no further negotiation. You are stuck with
what the Judge says, this is what you are going to take. Those are my
two questions. Can we walk away with our share of the debt, and can we
get around the condemnation?
SUPERVISOR COCHRAN: Gary, I am going to have you answer those
questions.
GARY VIGLIANTO: They are very astute questions, and they are very
contemporary. Those are exactly the questions that seem to be of most
importance throughout these studies that we have done. First let me
address the stranded asset issue. The stranded asset issue has been now,
finally, recognized by the Federal Energy Regulatory Commission, and they
have created an entire structure by which you can get stranded asset value
prior to going through condemnations. Southold has a unique situation.
SUPERVISOR COCHRAN: Do me one favor, explain stranded assets. They
are good questions, but I want to make sure that everybody understands.
pg 7 - PH
WILLIAM ENGLIS: They are going to get paid by the rate payers. It is
assets sitting there, where you are not going to get any revenue.
GARY VIGLIANTO: It's a unique term. It is something that is called an
asset, that is providing nothing but debt. How that is considered an asset
in the world of regulatory control and utilities is very similar to how they
term a lot of their things. What they are specifically talking about on
Long Island is specifically stranded assets is the Shoreham Nuclear Power
Plant being the most devastating of all the assets. Now, that was clearly
recognized in FERC. FERC is the Federal Energy Regulatory
Commission, and it has made two very profound statements, or remarks
pertinent specifically to Shoreham. Number one is that the ruling on that
amount of stranded asset is very clear. Any nuclear power plant that has
not commercially sold electricity, that language is there specifically
designed for the Shoreham debt. It is only depends on a debt under the
most optimal circumstance llke 50% of their stranded asset value.
WILLIAM ENGLIS: I am not talking about Shoreham alone. They must
have other stranded assets, and we walk away from our share of the
stranded assets, and push them over on other rate payers? I don~t think
SO.
GARY VIGLIANTO' That would be what it seems like provided that you
didn't get the whole story, but let me explain to you why I believe there is
a lot of this. You may not be able to walk away from all of it, and
certainly we intend, we built into the study a certain amount of that
stranded asset value, and we based that on the formula. One is part of
the formula for the stranded asset, Shoreham, that recognizes at best fifty
percent. The other part recognizes the value of the franchise agreement,
and in Southold there is a very specific franchise agreement. We believe
that the franchise agreement has some very specific language that will
enable us to get a favorable rule we prefer. All of this you will decide
and have in your hand prior to any condemnation, so we will file for a 211.
Let me be a little more specific about what this Local Law is. When we
first heard about $L[7,000,000 as a bond for a community it sounds like an
overwhelming number. First and foremost, let me tell you that if LIPA
does finally go through, and if we are stuck in Southold with LIPA the
number is far more. You will be paying at least three times that number in
order to maintain your electric service here, so the $b,7,000,000 is really
not a significant number, especially when it is not based on your taxable
revenue. It is based on real estate. It is based on the rate you will be
paying your electric. So, going back to the stranded asset claim, of course
LILGO will make a very substantial stranded asset claim. We will have that
meted out at the Federal Energy Regulatory with a file far before we go
forward with the condemnation.
WILLIAM ENGLI$' How about the condemnation now? The law on
condemnation says, you take something over, and then the price is set later
by the court. Has the law been changed in the last two years?
GARY VIGLIANTO: The law says that a fair market value is established
by both parties, and, of course, we expect there will be a disparity
between the recommended price that we believe it is valued, and what
LILCO will say it is valued at. That is if LILCO intends to go forward
pg 8 - PH
with a lawsuit will be figured out at the end of the court battle. However,
remember, this is not a mystery. There is a standard regulatory practice
in evaluating, and valuing the assets of these utilities. There is case law
that is established nationally, and there is a value system that is
established. It would be the same as when the town wants to condemn any
piece of property. There is an appraisal program, and an assessment that
usually goes out that is generally very close. This is not new territory,
although what is being done on Long Island is fairly new, but the actual
condemnation of utilities has been determined in previous case law.
WILLIAM ENGLIS: The court says what you are going to .pay, and you
can't argue. That is the final judgement. The court will say this is the
price. If they say it is $50,000,000 or $60,000,000, you are stuck with it.
That is the law.
GARY VIGLIANTO: The law as you know, there is always something to
appeal, but the court will base it's opinion based on standard accounting
practices. It will not base it's opinion on some pie in the sky starting
number that LILGO will come up with. We will provide to you all the
numbers that we believe are accurate, and basically the town will make it's
decision in the voters booth. This, tonight, what you are talking about, is
a Local Law that will enable you to have the right to go forward with a
public referendum. There Is nothing in passing this Local Law that permits
you to spend any money whatsoever. Remember what is being done
tonight, and what will be done in two weeks, and what will eventually be
done by public referendum, even once the referendum passes you will never
spend a dime. The only time you will spend the money to go forward with
your electricity is after you have gotten all the numbers in, all of the
estimated values in, all of the supporting data in case law. All of the
attorneys will look, and will give you a fairly close idea of where you are
going. The only time you will spend money is far beyond this point,
tonight and later on in this month when the Board votes on a Local Law it
is strictly to go forward getting the information, and trying to secure your
position ahead of the light promotion. There is no doubt if the LIPA
goes through, even in today's paper, if anyone picked up today's
newspaper you will understand that if LIPA goes through, the only thing
you are going to be doing is signing yourself to a thirty year bond, that is
far greater than $~7,000,000, far greater, and will not reduce your price
below what is generally about three times the National average. In fact, in
the future LIPA has said that they can remain Iow on their rates, or as
Iow in summer, between 11~ and 19% of what they claim in rate savings,
they can only claim that for several years. They have actually admitted that
their rates are going to be going up after that.
SUPERVISOR COCHRAN: Gary, I am going to pull you back a little bit. In
relation to, you know, input from the public here, but your colleague I
think wanted to add something.
TOM SERVANTO: Distinguish the condemnation, in the three villages
that we have already moved and formed municipal utilities on Long Island,
which are Farmingdale, Lynbrook, and the Village of Hempstead, we
have come up with a condemnation value. In Lynbrook we came in with
$17,500,000, and LILCO was $15,000,000. In the other two villages we were
slightly higher. We come in. We give you accurate high conservative
pg 9 - PH
numbers, and we have had absolutely no feelings from anyone, from LILCO,
that these numbers are incorrect. In fact, they have admitted in
testimony, they had court stenographers in Hempstead, that our numbers
are very accurate. Their only question with stranded assets, stranded
costs, and those stranded costs we feel we have a way of addressing them
to actually provide significant savings to the community.
WILLIAM ENGLIS: What is your status now with the Village of
Hempstead?
GARY VIGLIANTO: They are advertising their public condemnation
hearing. It is scheduled in about three weeks. Farmingdale already has
had their public condemnation hearings, and they are moving forward.
WILLIAM ENGLIS: The reason I ask, I have a very good friend on the
Hempstead Board, and he tells me nothing is moving forward yet.
GARY VIGLIANTO: Which member of the Board is it, because we have
worked with all of them?
WILLIAM ENGLIS: Charles R. Perue.
GARY VIGLIANTO: Charles has been involved in that from the
beginning. We are meeting there tomorrow as a matter of fact. They are
moving quickly. They have a public yes. They have a bid opening on
Thursday.
SUPERVISOR COCHRAN: Gary, I want to move ahead, because there are a
lot of people that might want to say something. Is there anyone else that
would like to address the Board on the issue? You have to come up to the
mike, and give your name, so it can be recorded for the minutes.
CARL BRATLIE: My name is Carl Bratlie. [tape change)
GARY VIGLIANTO: Personally, I believe, with a new utility in the
beginning form it is provided for in the study. We have bid concepts as
far as how much it would cost. We have bona fide legible contractors willing
to perform within that bid price, put out the bid for the first several
years. Let our legible contracting firm take over for awhile, and the Town
can take over for awhile, and if the Town later on could maneuver into it's
own department they can do that. It has already been established in our
study that a bona fide contractor would perform
COUNCILWOMAN HUSSIE: Mr. Bratlie, you and anyone else can come to
the Town Clerk's Office and get all of that information. The costs are all
itemized, and just for everybody's edification we have estimated the cost of
the actual acquisition of the facilities. We have allowed for the stranded
allowance, for the meters, and the metering, for the start-up expenses, for
working capital, for the legal stuff, and the engineering that has to be
done, also, one year of the debt service, because obviously we can't pay
for that until we get some revenue in for the bond, and the whole thing,
so all of that has been tallied. I suggest everybody get this, because you
will feel more informed.
pg 10 - PH
GARY VIGLIANTO: It is an extensive document. You are certainly
welcome to, if you have more question afterwards, to call our offices if you
like, and we will address any points you have. This is only new, and the
reason that it has become very helpful, and the reasons actually you are
able to do this now is because of the changing Federal regulations. That is
a very recent change, and as a matter of fact, it has only finalized just
several months ago by the Federal Energy Regulatory Commission, That is
what has permitted this whole concept to go forward, because up until now
you could only buy electricity from within your own state. Now that the
Federal Energy Regulatory Commission has permitted a change, you can buy
from outside the State, where the rates of electricity sales are far lower.
I mean, there are bids now coming in for the Lynbrook program for
kilowatts, or pneograph, and of course there is other factors put into
that. It really does at this point because of the change in the regulations
it makes sense to at least explore, and as I said, this Board has acted very
consciously throughout this process, and obviously rather than postponing
it over the difference of one letter in the public notice.
SUPERVISOR COCHRAN: That was only one part.
GARY VIGLIANTO: Very small technical issues, shows that they are
very, very committed to doing this to the utmost of the most exact level of
standards. The bottom line is what you are talking about tonight, and you
will be doing right up to the referendum is not spending a penny, but
providing options that may still be available to us as we go along. Once
LIPA becomes actually a part of the lives of Long Islanders I think the
process is going to become much more difficult. It still is not impossible,
but it will become much more difficult. The Board believes that this a step
at least in keeping your options open as well as the referendum going
forward. Don't for one minute believe that you are going to be spending
$u,7,000,000 by saying, yes, even at the public hearing, or even at the
public referendum. That is much further down the road, and only after all
the numbers are in.
TOM SERVANTO: Gary, you hear that $47,000,000 figure, and, wow, it
is a tremendous amount of money. That $47,000,000 includes all the costs
that you are now paying to LILCO, the cost of upgrading this system, the
cost of operation and maintenance, the cost of insurance, legal fees, all of
those things that are now being paid in your rate at $.17 a kilowatt, and
up to $.35 a kilowatt, if you have any kind of a store, or if you have a
business. Those are going to be borne now by the municipal utility, and it
is not being paid out of the tax base. It is revenue base bond, so it is
just transferring what you are paying from LILCO, but what you are
eliminating is the $700,000 salary of the people up above, and $200,000 for
Vice President, and if you look at LILCO, they have wonderful workers in
the field. We are certainly not out to take a shot at LILCO. They do a
great job. I mean if you have a serious storm, they are out there just like
any other utility in the country, and their record is pretty decent through
Hurricane Gloria, but over the years what happened is there has been a
buildup. There are about 5,500 people who work for LILCO, and less than
17,00 of them are actually working in the field. They have mapping,
marketing people. There is a lot of money being spent in that area, but if
you check with them, the guys in the field do a wonderful job. I am sure
the guys in the offices do too, but it is like the millenary, after awhile
pg 11 - PH
you have so many people, and it just keeps growing, and growing, and
growing.
SUPERVISOR COCHRAN: Yes. Mr. Carlin?
FRANK CARLIN: Frank Carlin, Laurel. I could be here until 12:00
o'clock, but I am going to keep it as short as possible. I have been
through this in 1986. Now, we are going through it again. I am going to
address Councilwoman Hussie. The proposition went down, number one, in
'86, not by 230. It went down by 350 votes. I always said that I give
credit where it is due. If you are right, you are right, if you are
wrong, you are wrong. 199[~ in the Traveler-Watchman news digest, I
won't read it all, Tom Wickham said, when he was on the Board, and you,
Alice Hussie, brought up the subject about a Southold utility company. His
two remarks what he said was, it is too risky, and the town was too small.
I absolutely agree with him. For once I agree with him. This town is too
small to take on any kind of a project. You people remind me of LIPA.
They remind me of Peconic County. Everything is' on paper, but is it
reality, or what is it? These bonds you going to float for $[t7,000,000, are
they general obligation bonds, or what are they?
COUNCILWOMAN HUSSIE: Revenue anticipation bonds.
FRANK CARLIN: Are they municipal bonds? Are they tax-free bonds?
COUNCILWOMAN HUSSIE: Yes.
FRANK CARLIN: When you buy these bonds do you get tax-free income on
them?
COUNCILWOMAN HUSSIE: Yes.
FRANK CARLIN: I am going to ask you a question, Mrs. Hussie. We float
a lot of bonds in this town, land preservation bond, $2,000,000. You want
a pool. You want $2,000,000 for that, and now you want $47,000,000 for
this. That is $51,000,000. What is this town going to do down the line
when all these bonds mature? Where are you going to get all this money
from? From the sky?
COUNCILWOMAN HUSSIE: In this particular instance to put things in
prospective, presently all of the rate payers within the Town of Southold,
all the businesses, and all the people like you and me, put $19,000,000 a
year into LILCO's coffers. If we go through with this, even at the
$~,7,000,000 debt that we are looking at, it will only cost us as a aggregate
group $12,000,000. Now, I can do the math as well as you. That is a
$7,000,000 difference with the worse case scenario. I am not going to go
into all the bonds that Southold has. I am just dealing with this one right
now, and so I look at it as a definite savings, a terrible number.
$47,000,000 is enough to scare anybody, but if you stop a minute, and
think of where the money is coming from, instead of writing your check to
LILCO, you will write your check to us. You know what I mean. We are not
getting anything out of this. The other side of it is that at this point
these numbers as you say are perhaps not as exact as they should be, and
indeed they are the worse case scenario. By forming an electric company we
pg 12 - PH
become an entity with which to be reckoned. We can 9o out, and say,
okay, we want x number of megawatts of electricity, what will you charge
us? We will know the wheeling fees. We can go out for legal counsel, find
out what they are going to cost. We will have real numbers. I know, like
Yogi Berra said, this is deja vu all over again.
FRANK CARLIN: Everything sounds so rosy.
SUPERVISOR COCHRAN: May, I say something? This is a decision made by
the entire Town Board, not just by one person. It takes a majority vote.
was on the Board ten, twelve years ago, when we investigated it, and
there were certain reasons why, it would not work at that time, and on the
advise of legal counsel we dropped it. There has been enough changes now,
that it would behoove us to look at it again, and that is all we are asking
for. We asking for cooperation from the community to allow us to look at it
again. We want to give you every fact and figure, every piece of
information we can glean out. of the experts or anywhere else, Frank, so
that we all understand, because it is a big obligation that we would be
taking upon ourselves as a community, and, yes, these funds have to come
from somewhere, so before as the gentleman said, before one cent is spent,
and through this whole process we can say, no, at any point. So, we are
just trying to get the information out to you. It's a great idea if we can
make it a reality. We don~t know that yet, but we are looking at it, and if
it can be a reality, it is going to benefit the community. Just let us look,
that's all we are asking.
FRANK CARLIN: Everybody wants their rates down. I understand what
you are saylng, and youse didn't drop it when you were on the Board in
'86. It was voted down by the proposition number 1. People didn't want it.
SUPERVISOR COCHRAN: It did. We didn"t fight hard to make it happen,
Frank.
FRANK CARLIN:
time spent $30,000
you spent on it?
Don~t say that the Board dropped it. The Board at that
in researching this thing. Now, how much so far have
COUNCILWOMAN HUSSIE: $12,000.
FRANK CARLIN: So far, but why, make a issue for that one?
SUPERVISOR COCHRAN: What the $12,0007 We budgeted.
FRANK CARLIN: Meanwhile I am talking about the town is too small. Let's
not take Creenport for an example. Creenport has a population of about
2,000 people. They have a village. They can supply that, but no profit. We
have 20,000 here.
SUPERVISOR COCHRAN: Frank, we look at the revenues, that we are now
paylng to LILCO, and there is no reason those figures should change. Am I
right? You can at least look at something. We all pay LILCO right now.
You are still going to be provided the same electricity, and I haven't
decided whether I support this or not, but I would like to look at it.
pg 13 - PH
FRANK CARLIN: I am up here to give you my viewpoint. That is what you
have the public meeting for. I am trying to keep it short for you. If
anyone would like to finally debate on this, anybody, these people, or Mrs.
Hussie, you, you can do so. That is how I operate.
SUPERVISOR COCHRAN: I know that. Make your statements so that we
can move on.
FRANK CARLIN: The reason why Greenport can do it, they had only 2,000
people in the village. We have 20,000, 200 miles of road, which usually has
the utility pole on. We can't handle that. Knowing how Southold operates
we can't handle a utility company. I'll be honest with you. I have lived out
here for 44 years. You take that LILCO, I'm not sticking up for LILCO,
LILCO has a man on duty 2u. hours a day with a truck. Are we going to
supply a man 21~ hours with a truck?
COUNCILWOMAN HUSSIE: Yes.
FRANK CARLIN: Where are you going to get all these lineman. They don't
work for peanuts you know?
COUNCILWOMAN HUSSIE: Mr. Carlln, again, if you would read this you
would find out all those answers as they are projected today.
FRANK CARLIN: What are you going to do when a northeaster comes
along? We have been pretty lucky. We haven't had tornados here yet like
they had down in Arkansas, or floods in California. Do you think
Niagara-Mohawk, LILCO, or Con Edison, when they got their own
troubles are going to give you support with your ten people? You only
want about 30 people on the staff here, but they aren't even going to be
lineman. You talking about salaried. They will be Union, right? Will they
be Union?
COUNCILWOMAN HUSSIE: Probably.
FRANK CARLIN: They won't like it so they want to go on strike, right?
Medical, pension funds, cost of living raises.
SUPERVISOR COCHRAN: Frank, the purpose of this public hearing is not
to argue with Board members. The purpose of this public hearing is to
express yourself, and give us any pros or cons in a calm manner, and we
would be very happy to continue. You are taking valuable time away from
other people that might want to say something. You certainly may say what
you want to say. Would you please finish you remarks?
FRANK CARLIN: These gentleman mentioned about Farmingdale,
Lynbrook, and Hempstead, they all passed referendums. They are going
ahead with it. Let's get back to what I said about this town being too
small. North Hempstead, and Hempstead has a population of 900,000,
they can afford to have a utility company. I know how Southold operates.
We can't handle it. I will leave it like that for now. I am not finished
with this yet.
SUPERVISOR COCHRAN: Thank you for the comments.
pg 14 - PH
GARY VIGLIANTO: Can I just address some of the comments?
SUPERVISOR COCHRAN: If it doesn't get into a match. We want positive,
or negative input.
GARY VIGLIANTO: I would just like to make a statement, but clearly I
have to explain that the difference between 1986 to today is vast. There is
absolutely no comparison to a study that was done then. As a matter of fact
we were given that study to look at. Things have changed drastically in
the last two years, and so going back ten years is just simply, that type of
calculation can not be made. The Federal Energy Regulatory Commission has
really deregulated the interstate transition, which has dropped the price
drastically of outside electric, so right there is a tremendous difference.
There is an enabling legislation now, that permits you to do it. I will just
give you some of the points about size, because your concern is valid, but
there are over 2,000 operating municipal utilities in the United States. One
out of every seven people are served by a municipal' utility. Their average
rate of electric is below six cents a kilowatt, and while you are right that
the Town of Hempstead is large, and the Village of Hempstead is also
large, as is Farmingdale. But upstate New York where we also are
helping communities create utilities, they have hundreds of miles of road
with far lighter population than here in Southold, and it made sense. There
are small municipal utilities virtually throughout the United States that
operate very effectively even' with hundreds of miles Of road. When you get
into rural America, for instance, Nebraska where they no longer have
private utilities whatsoever. There are simple none left. They don't permit
them by law. They only have municipals and co-ops. You can go
hundreds of miles of roads with far fewer people than we have here in
Southold, so the size issues are disconcerting is clearly addressed in this
study, and you can get the bona fide work force brought in even through
competitive bid, and that will be unionized, and they will be bound by that
price regardless of what the union does, but as you know unions are fairly
stable in their position. So, realistically, you can't make a fair
comparison. Read the study, and make your comparison based on what you
see then, and we will be more than happy to talk about it, but you just
can't compare what happened in 1986 to today. It is just unfair.
SUPERVISOR COCHRAN: Thank you, Gary. Frank, I will come back to you.
MARY MOONEY-GETOFF: My name is Mary Mooney-Getoff. I live in
Southold. Madam Supervisor, I would like to respectively suggest that for
the rest of this hearing, and the future hearings that you limit speakers to
two minutes, or whatever you think is fair.
SUPERVISOR COCHRAN: We will take it under consideration.
MARY MOONEY-GETOFF: So that we could kind of visualize how this
might play out in Southold. Could somebody explain what happened in
Messina, which did this same thing, and they now have several years of
experience.
COUNCILWOMAN HUSSIE: I can do that.
SUPERVISOR COCHRAN: I would prefer having Gary, please.
pg 15 - PH
GARY VIGLIANTI: A lot of people have brought up Messina. Messina
was actually done during those difficult times of 1980. They actually did Jt
in '70. They did it about fifteen years ago, when they took a very long
and lengthy court battle, because we didn't have the legislation that we
have today. Messina then brought a battle against Niagara-Mohawk. The
price at that time was about $.08 a kilowatt in their community. MessJna
battled it for about seven years because as I said again, there was no
mechanism. They actually had to create it through the courts, and we all
know how lawyers like to make things more complicated, so it took a long
time. When Messina got done, at the time they got done, they wound up
paying only about $.052 a kilowatt, which really was not that drastic a
difference from $.082. What had happened at the end of that journey,
though, and today is really the basis of it's success. Messina, New York,
currently has the most modern electrical system Jn the State of New York.
They have upgraded their system far beyond the capacity of the old host
utility of Niagara-Mohawk, which by the way, is threatening bankruptcy
because they are besieged now by other communities trying to do what
Messina did. Messina today, and they have just announced a reduction
for third time in their rate, unfortunately there Js a law in the Public
Service Commission that any rate change better than 2% needs to go to them
for approval. They have been waiting to get this last rate change
installed, because they want to drop their rate again for the third time in
two years below $.04 a kilowatt. They are now in Messina paying $.04 a
kilowatt when Niagara-Mohawk is paying $.14 a kilowatt. That is the
difference, and maybe we should talk a little bit quickly about the
philosophy between the investor owned utility, and whether an investment
owned utility as opposed to a community owned utility. An investment
owned utility has one prime directive, and that is not to sell you
electricity. Their prime directive is to make as much money from the only
source they have, the ratepayer, and deliver it to the stockholder as a
profit. That is what they do for a living. Your electricity is their
product. You are the sheep being brought to be sheared.
CARL BRATLIE: And the tax collectors. Don't forget the tax collectors.
They are collecting.
GARY VAGLIANTO: They want you to believe that, but in our
investigation categorically they misrepresented their taxes, but what we
have allowed for a misstatement is the replacement of this lost tax revenue
without the threat of a certiorari, which as you know being involved in
utilities, virtually everyone on Long Island, LILCO would love to claim that
their utility equipment is worthless when they are paying taxes on it, but
when we go to condemn it they are going to say that the same pole that
was only worth $20.00 for taxes is now worth $2,000. Let's not forget the
judge is a member of the public. He will understand those terms, when he
comes to grips with that condemnation. So, they are going to be hung by
the rope they provide, when they go out and they want to pay less taxes.
Messina, New York, has been an absolute success from one end to the
other. You can call people in Messina. Call the Messina Utility
themselves. They will tell you. They also created things in the community
with the surplus of funds. They are rolling down the rate, and they still
have extra money. Now, as a utility they have to invest that extra money.
They have done things like all-nlght hockey programs, where they have one
of the best hockey programs in the state. They have a youth program in
pg 16 - PH
their community. They also fund a lot of their senior programs through the
electric utility. They also do all the tree trimming in the community, not
anymore as a capital budget item, but as a item out of the utility charge,
while they have been dropping their rate. They also do some snow
plowing, and road repairs, because the utility can fund through it's own
basis. So, these are the things that would be provided for, if you go
forward with the municipal utility, but remember, the vote of the Board
next year, or in two weeks, the vote during the referendum does not
commit you to go forward with anything other than keeping your options
open, and in fact when it passes the public referendum you will then be a
bona fide utility. You have a license, that doesn't mean you have to go
forward. Suffolk County took a license in 1986, the same time that Southold
didn't do it, and they just revoked it. They just started to put it
through. They are now about to buy about 300 megawatts of electricity at
under $.05 a kilowatt outside the LIPA Program, and they are an
advocate of the LIPA Program. The bottom line is, you have to preserve
your options. I think what the Board is moving to do, and what the people
are ultimately voting on is a move to provide themselves with the options of
change, not to spend the money, and until the research is done, and bids
are in, that is when you can go forward.
SUPERVISOR COCHRAN: Thank you, Gary. Yes, Mr. Haupt? Anyone
that hasn't spoke I will take first.
HAROLD HAUPT: I got here late. I didn't hear the whole thing. When
you are talking about taking over the utility, you are talking about buying
everything out, and you run it?
GARY VIGLIANTI: Everything that is required for the distribution.
HAROLD HAUPT:
LILCO?
Okay, how much taxes right now do we get back from
SUPERVISOR COCHRAN:
town.
I don't know. They are the largest taxpayer in
HAROLD HAUPT: They are the largest taxpayer?
SUPERVISOR COCHRAN: In the community, yes, they are. I am not sure,
Hoagy. I know they are number one.
HAROLD HAUPT: They are the largest taxpayer for the town. Who is
going make up all this lost revenue?
COUNCILWOMAN HUSSIE: There Js an amount given in there which is
pretty much comparable to what LILCO is paying now, which is called a
PILOT, Payment In Lieu Of Taxes, and that what will be paid, so there will
be no impact. I mean we will not feel the lose of the LILCO check.
HAROLD HAUPT: Until you start getting something back, we are going
to feel it in our taxes.
pg 17 - PH
COUNCILWOMAN HUSSIE: That has been compensated for including the
wages that we will have to pay before we get anything back from the
public. All of the first years expenses are included in the estimate here.
SUPERVISOR COCHRAN: In the bonding.
HAROLD HAUPT: Is it also in that whole write up, the amount of
equipment and everything, you are going to have sitting there?
COUNCILWOMAN HUSSIE: The number of trucks, the number of people,
everything is in here.
SUPERVISOR COCHRAN: Hoagy, I know you worked for LILCO for
many, many years, and are now retired. Please, come in, and we will have
copies of this. I thought they had, but evidently they hadn't, because we
had a couple of requests today, and you are more than welcome to have a
copy of the report, and analyze it, and come back to us. I am not going to
close the hearing..
HAROLD HAUPT: You talk about all these other districts, but just
picture right here on the island, where you don't have things llke you can
get where they are talking about other areas, you lose one of these high
lines here, forget about it. Right? If you got a generating station going
what it is going to cost you to run that, that's why they don't run these
portables, because it cost too much money. If you don't have the amount
of equipment, and the people that handle these things, when you have a
large storm, just like the ice storm upstate New York, they pulled people
from all over the world almost to work up there, and they were still out of
lights for almost a month, right? So, think what happens in your little
district, when you don't have people.
SUPERVISOR COCHRAN: I would appreciate if you would came in for a
copy, because I am not going to close the hearing tonight. I am going to
keep it open to allow for the continuation after the new printing, plus any
written comments that anyone would like to submit, so perhaps after
reading it. Bake? Bake is another one that used to be an employee of
LILCO, and I am sure is concerned, as we are. No decisions are being
made.
LOU BAKER: Lou Baker of Southold. Are you just going to take over the
distribution circuits.
GARY VIGLIANTO: No, it is listed in the engineering report, but
primarily our primary desire is to take over the local distribution.
LOU BAKER: Are you going to take over the substations?
GARY VIGLIANTO: It is required by the engineers.
LOU BAKER: There are four of them in Southold. Are you going to take
over all four?
GARY VIGLIANTO: No.
pg 18 - PH
LOU BAKER: What happens to the others?
GARY VIGLIANTO: They remain in LILCO, and they pay taxes on it?
LOU BAKER: What about submarine cable to Shelter Island?
GARY VIGLIANTO: Submarine cable to Shelter Island will be untouched.
LOU BAKER: Southold has nothing to do with that?
GARY VIGLIANTO: It all goes under the contract to do it.
LOU BAKER: Which substation?
GARY VIGLIANTO: I am sorry. I am not the engineer. It's in the
report, you can take a look at it.
LOU BAKER: If it is the Southold substation, which' is the one that feeds
Shelter Island, what do we do with Shelter Island?
GARY VICLIANTO: I will be very frank with you, I am not the
engineer, but I will tell you it is provided for by the engineering
department, and believe me, we are not going to leave Shelter Island
without any lights.
LOU BAKER: I don't care one way or the other. How much management
will there be?
GARY VlGLIANTO: Do you mean administrative management?
LOU BAKER: Southold Town, how many?
GARY VICLIANTO: Salaries, and wages, about a million eight.
COUNCILWOMAN HUSSIE: When you get this you can see that.
LOU BAKER: How many people?
SUPERVISOR COCHRAN: There's a chart. It is a breakdown.
LOU BAKER: What are going to do about a scoreboard, if lights go out at
midnight, and everybody is calling you? Do you have a call board?
GARY VlGLIANTO: Yes, it is all provided for. It is operated just like
any utility.
LOU BAKER: A lot of people holler because they can't get to LILCO, and
if nobody is in town.
GARY VIGLIANTO: That is one critical difference. In Southold you are a
dedicated work force. It will be a lot easier than calling Hauppauge. You
can have a dedicated work force devoted, and contracted to this community,
and if you go to outside contract, to an outside contractor, as you, guys
like Johnson Control, some companies far bigger than LILCO itself, they
pg 19 - PH
will be performance bonded, so if they are not here they will be a real
recourse for this community, something you don't have today with LILCO.
LOU BAKER: Sounds good. You are going to have coordinator with New
York Telephone to talk to them people all the time. Full time job. You got
to have somebody to talk to the electric system operator for LILCO, if you
want to do anything around the substation. You will have to hire somebody
to do that. I don't know if that is in the chart or not. Of course, all
your trucks and cars.
HAROLD HAUPT: Don't forget meter readers.
GARY VIGLIANTO: That's true. As a matter of fact some of the new
systems don't have meter readers, but I don't think we are jumping into
that section.
LOU BAKER: A lot of money is going to be spent on poles, and wires, and
transformers, and stuff.
GARY VIGLIANTO: Upgraded systems possibly going underground. As
you know in a community owned utility, those decisions will be made by the
public, not by the Board. It will be made by the people here, and every
year when virtually every decision is made is open to some sunshine
regulation. There is no closed room deals. There are no stockholders deals.
There is no upper management deals. There won't be. It's a public utility,
and you are invited to come in and investigate, and look at every financial
document in that company. That is the difference between a public utility.
That's why nationally public utilities are cheaper by far, than investor
owned utilities, because the people themselves own it, and their rates as
far as liability nationwide, five of the top ten most highly rated utility
for reliability.
LOU BAKER: Every day working basis, I think, it looks too good.
GARY VIGLIANTO: That is why we suggest you go to a large professional
company to do it for several years, and then work your way into it softly.
Frankly today LILCO hires out a huge amount of their work to other
companies. These are the companies that will be bidding for this community,
companies that are in the utility business currently working for LILCO.
Those are the companies that will be performing for this community, if you
decide to go forward.
SUPERVISOR COCHRAN: Anyone else like to address the Board? Mr.
Homan?
JIM HOMAN: Supervisor, Town Board, my name is Jim Homan from
Cutchogue. I am one of the largest supporters of LILCO in the community,
I think. I know all about the rates, and so on and so forth. This has
been a serious matter, serious work done on it, and it has been done in a
most responsible manner. Thanks to Mrs. Hussie. I think she has done a
fine job. This is something that really everybody in Southold Town would
benefit greatly from. Of course, my interest is perhaps as a businessman at
this moment, but you know paying LILCO $150,000 a year is no piece of
cake, especially when you generate your own electricity to heat to keep the
pg 20 - PH
rate down, so this is a very, very serious thing for all the people in
town If anybody in this room has kept up with the national papers, the
Wall Street Journal, New York Times, and everybody else has been talking
about this deregulation. They know this is not a fairy tale. It's out there,
and if Southold can make use of it I think they would be very foolish not
to at least look into that opportunity. Thank you.
SUPERVISOR COCHRAN: Thank you, Jim. Anyone else like to address the
Town Board? As I said we will keep the hearing open to allow for written
comments, and to invite you back. Yes, ma'am? Then I will come back to
you, sire
DONNA DZUGA-SMITH: My name is Donna Dzuga-Smith. First of all, I
commend you for looking into it. I think it is a great idea. I think we
have to have more faith in ourselves, that we can function better. I mean,
it's beautiful here. I have only been here for four or five years. It's
beautiful. Believe in yourselves. It is one of the best places to live. I
have two little questions. Number one, do we have to pay for that booklet
if you want to take it out?
COUNCILWOMAN HUSSIE: I don't think so.
SUPERVISOR COCHRAN: No. Usually we charge a quarter a sheet. I
believe the last time this was discussed a copy of this was supposed to be
put in each library. I can check on that. We have reams and reams, and
a lot of coping to do if made 3,000 copies for everybody in town, but if we
can put them at strategic places. We will put some here, borrow them, sign
them out. We will put them in libraries, so you can sign them out.
DONNA DZUCAS-SMITH: That is my concern, and then people will be
more informed. I hope you stick with it.
JIM HOMAN: Just one more remark. If you remember about twenty-five
years ago we did a little transaction with LILCO. We took over their street
lights. We bonded the town for $50,000. About twelve years ago, just about
twelve years ago, I did some figuring on that, and at that point in time
besides our expenses, the town expenses, we had saved between $t[50,000
and $500,000 on s $50,000 bond.
SUPERVISOR COCHRAN: Jim is a past Supervisor of Southold Town, and
served us well, in fact, this lovely, I guess you would call just a post
stand came from Southwold, England, and it was given to the town by
our past Supervisor, so, Jim is familiar with the workings of the Board,
and we certainly appreciate your comments. Anyone else?
WILLIAM ENGLIS: The work deregulation comes up all the time. It is
not a panacea. If you have been following the press in the last few weeks
you will realize that a lot of states are having problems with it already,
particularly California. They started deregulation, and it ain't
working. Now, this is mainly in regard to telephone use, but also electric
utilities in various states where they have started in early with
deregulation. It aln~t working. It is not a panacea.
pg 21 - PH
GARY VIGLIANTO: Let me clarify what has been brought up. What is
being tried in these other states is retail wheeling. We are not involved
in that. The Federal regulations we are operating under pertain to
wholesale transactions. What you see in California, and New Hampshire, and
other state is strictly retail, and hopefully we will be outside of that
getting much better rate reductions. We won't be in that arena of Federal
regulations at all. We are operating as a wholesaler, as a genuine utility.
SUPERVISOR COCHRAN: Thank you, Gary. Frank?
FRANK CARLIN: One question, you mentioned before about maybe
possibility of generating our own electricity. Where would you get your
generator system from? How would you do this?
GARY VIGLIANTO; Generators are looked at as part of the study, but
certainly nothing will go forward without bidding it out. What we would do
is look for a location within the town community. Generally we look at areas
like closed dumps, and areas that are fairly well sterilized for our use.
Then we invite large contractors, companies that currently operate. One
would certainly be a company llke Duke Energy, one of the largest utilities
in America, who has currently 2,000,000 megawatts a year. They generate
a huge amount to communities, and they would come in, and say, they
would look at the site, and make a proposal to the community. Generally,
what that proposal would look like or we would hope it would look like is
that we will come in, build a generator, stamp a generator, operate the
generator, sell electricity for the next fifteen years at $.05 a kilowatt,
and they will be bonded to that, and we will be set at that point for quite
a long time. We don't know if that is a viable option yet. It is a lot
different than it was two years ago. They have high speed turbine
generators. They have air ejection generators, that are much more
economical, quieter, fuel efficient, and very clean, very clean generation.
It would have to meet all the criteria.
FRANK CARLIN: It adds to the $47,000,000?
GARY VIGLIANTO: No, absolutely not. By the way this bond is a bullet
proof bond. Another penny can not..if it came out to $1~7,800,001, we would
not be able to go forward. It is absolutely the final price that you can
pay, so, no, we would not go outside that price.
FRANK CARLIN: This company, who would be control of it, the Town Hall?
GARY VIGLIANTO: The Town Municipal Utility, we would have a
Municipal Utility Board created, so it is created by the Town Board.
FRANK CARLIN: It is appointed, right?
GARY VIGLIANTO: It's appointed, but it could become an elected board
if the community chooses.
FRANK CARLIN: Elected board.
GARY VIGLIANTO: Whatever the community wants. You own it. You
own the system.
pg 22 - PH
FRANK CARLIN: We can say anything we want? We can come up and
complain about anything we want?
GARY VIGLIANTO: You certainly can. As you know you certainly can
at a public forum come up, and complain about anything you want. You
vote on everything. The Board will meet, and you make an appointment. It
is all community based.
FRANK CARLIN: That is the same as LIPA.
GARY VIGLIANTO: No, it is not. Let me explain something quickly.
You brought up LIPA twice. LIPA is not giving anyone the right to
vote, and that is a big difference. That is a serious difference.
SUPERVISOR COCHRAN: Last call. We wilt be having another public
hearing. I just spoke with our Town Attorney, and he thinks it is a better
idea that we close the hearing this evening, because we have to reprint the
law with the changes the Town Board made today. So, we will set another
public hearing, and please, all come back, and see us a second time, and
by then perhaps you would have time to read the report, and again, any
question you have you can call Gary.
GARY VICLIANTO: We have an 800 number, and a local number on Long
Island. Gall our firm, and we will get back to you, any questions at all.
SUPERVISOR COCHRAN: Is there anyone else that would like to speak to
the Board? I don~t want to not allow anyone to speak, but I would like to
move this along, if I can. We have two more public hearings. I will close
this hearing, and we will go to the next hearing.
Southold Town Clerk
ELIZABETH A. NEVILLE
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Fax (516) 765-1823
Telephone (516) 765-1800
OFFICE OF THE TOWN CLERK
TOWN OF SOUTHOLD
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION WAS DULY
ADOPTED BY THE SOUTHOLD TOWN BOARD AT A REGULAR MEETING
HELD ON APRIL lq. 1998:
WHEREAS. there has been presented to the Town Board of the Town of
Southold, on the lqth day of April 1998, A LOCAL LAW, entitled "A
Local Law in Relation to Creating A Municipal Gas Utility in the Town of
Southold; now therefore, be it
e
RESOLVED that the Town Board of the Town of $outhold
8:10 P.M., Tuesday, April 28, 1998, Southold Town
Road, 5outhold, New York as the time and place for
upon this Local Law, which reads as follows:
hereby sets
Hall, 53095 Main
a public hearing
LOCAL LAW NO.
- 1998
A Local Law in Relation to the Creation of a
Municipal Gas Utility in the Town of Southold
BE IT ENACTED, the Town Board of the Town of Southold as follows:
~eotion 1: ~itle, ~.roose an~ De£initions, ~(&). Enaotment.
Pursuant to Section 10 of the Home Rule Law, and section 360
of the General Muni¢iDal Law, the Tow~ of Southold, County of
Suffolk and State of New York, hereby enacts this local law to
create the Town of Southold Municipal Gas Utility.
1.1¢B), 2£feetive Date.
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 twenty (20) days after its approval by a simple majority of
the voters by mandatory referendum at an election or ~pecial
election to be held to approve this local law, pursuant to seotion
360 of the General Municipal Law.
1.2. Intent.
WHEREAS the Town of Southold is a Town duly incorporated
under the laws of the State of New York, and~
WHEREAS the Town Board of the Town of Southold is duly
empowered pursuant to Section 360 of the General Municipal Law of
the State of New York to form a Municipal Gas Utility for the
Town, and~
WHEREAS it is essential for the well-being, livelihood and
safety of the residents and businesses of the Town, and of the
other consumers of gas power inthe Town, including the Town
itself, and of their families and guests, for the economic climate
of the Town, and-for the protection of private and public property
within the Town 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 Town, and the Town itself, be
provided in a reliable manner, and at a fair and reasonable cost,
and~
WHEREAS the Town Board has determined that the most reliable,
fair, and economical way for gas and gas supply to be provided to
the Town of Southold~ its residents, businesses and institutions,
is by the creation of the Town of Southold Municipal Gas Utility,
the Town Board of the Town of southold hereby enacts this local
law for the intent and purpose of establishing a Municipal Gas
Utility pursuant to Section 360 of the General Municipal Law, and
all of the powers and duties thereunder.
section 2.~qu~m~_t'"~and Facilities, Maintenance
~nd Service, and Bubbly
The Town of Southold Municipal Gas Utility shall acquire the
necessary facilities, and either establish necessary functions for
or procure contracts for the maintenance, service and billing of
the gas energy system, and a supply of gas such as are necessary
for the creation of the'Southold Municipal Gas Utility.
The proposed method of constructing, leasing, purchasing, or
acquiring, the facilities necessary for the operation of the
Southold Municipal Gas Utility, if any, together with both the
maximum and the estimated oosts thereof, the method of furnishing
such service, and the method of obtaining gas supply shall be as
follows:
2.1.EQuit~tand Facilities.
A. The Town of Southold Municipal Gas Utility will obtain
access to or acquire the portion of the gas distribution system
within the Town, if any, that it is necessary for the Town to
operate the Municipal Gas Utility, by purchase, lease, or
condemnation from that which is currently owned by the Long Island
Lighting Corporation ("Lilco"), or by obtaining other facilities
as necessary. The mu~icipal gas utility will only acquire,
construct or obtain that equipment and facilities, if any, which
are necessary to provide gas supply, and segregate and operate the
municipal gas utility and as may be needed to separate itself from
the Lilco system or to meter the gas supplied to or used by the
Town of southold Municipal Gas Utility.
B. The maximum and estimated cost of the items set forth in
subparagraph (A) hereof, is expected to be not more than twenty-
five thcusand dollars ($25,000).
C. The cost of the necessary facilities, if any, and
distribution and any other costs that are necessary for the
implementation of the 9own of Southold Municipal Gas Utility and
the entire costs of the implemen~ation and operation of the Town
of Southold Municipal Gas Utility will be paid in the first
instance from the revenues generated by the Town of Southold
Mu_~icipal Gas Utility only.
D. None of the costs of the implementation or operation of
the Town of Southold Municipal Gas Utility shall be included in or
have any affect on the Town general budget or the assessment of
Town property taxes.
2.2. Se~'~ri~e and Maintenance of Equipment,
~acilities, and Distribution System.
A. The Town Of Southold Municipal Gas Utility will obtain
service and maintenance forths equipment and infrastructure of
the Southold Municipal Gas Utility, and the other remaining gas
distribution and other equipment that is within the Town from
Lilco, 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 Town 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 Town'and the Municipal Gas Utility.
The Town of Southold Municipal Gas Utility will obtain
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 Town.
B. The Town 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 billing, service
and maintenance to the Town of Southold Municipal Gas Utility if
the Town deems it to be in the best interests of the Town to do
SO.,
:2.3.
A.
Gss SuPPly.
The Town of Southold Municipal Gas Utility will obtain
its supply of gas by contracting with another utility or supplier
to provide the supply of gas to the Municipal Gas Utility.
3.0. Mandatory Referendum.
This Local Law shall be subject to approval by a mandatory
referendum of the residents of the Town of Southold, pursuant to
and as set forth in Section 360 of the General Municipal Law of
the State of New York, the Election Law and
of New York
Town Law of the State
The Town of Southold Municipal Gas Utility shall be effective
and granted the full powers entitled to it by law on the date of
the approvai by a simple maiority of the referendum, and'the
filing of the Local Law with the Secretary of State of New York.
Dated:
April lq. 1998
~ Nevil~e~~
Southold Town Clerk
April lq, 1998
GREGORY F. YAKABOSKI
TO~FN ATTORNEY
JEAN W. COCHRAN
Supervisor
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Telephone (516) 765-1889
Fax (516) 765-1823
OFFICE OF THE TOWN ATTORNEY
TOWN OF SOUTHOLD
PRIVILEGED AND CONFIDENTIAL
MEMORANDUM
TO:
SUPERVISOR JEAN W. COCHRAN AND
SOUTHOLD TOWN BOARD MEMBERS
FROM: GREGORY F. YAKABOSKI, ESQ., TOWN ATTORNEY
DATE:
AUGUST 4, 1998
SUBJECT: POWER COMPANY- SEQRA REVIEW
This is a preliminary up-date from Charles Voorhis. As this is intra-agency
material, it is not subject to FOIL requests. Also, attached is a copy of the
Positive Declaration.
GYF:ck
Attachments
AUG-03-1998 13:47 N~&bUN ~ ~U~,~b~ ................
NIEI. SON, I:)OPB~ & VOORHIS~ I. LC~
Mr: Crregovy Yakabosk!
Town Al~omey '
Town Hall, 53095 lvl~i,~ Road
P.O. Box 1179
Southold, HY 11971
August 3, 1995
Re:
Preparation of EAF and Review of Potential Impact~
Feasibility Analysis Of Creation of a Fublic Power Authority
Within the, Town of $outhoid
NP&V Proieot 9514g
Dear Mr. Yakaboski:
As per your reque,~t, we have completed the environmental review for the proposed
creation of a Town of Southold regional power authority. Tasks and completed activities
are identified as follows:
1. Prepare P~
'The LEAF Part I has been completed, sad is attached.
2. Prepare Part II LE~
The Part H LEAF checklist has been completed and is also attached. Additional
information concernin~ our findings is included b~low.
$. Environmental and Planning Considercaions
Tile proposed' action involves creation of an independent power authority with/n tho
· Town o£ Southhold. The Lot!g Island area:currently kaa thc highest elecuic rate~ within
the continental United States, and it is ~xpeoted that thc proposed power authority could
lower rates by as much as 40 to 50 percent: As high electric rates is one of' the reasons
cited by businesses for not locating on Long Island, it is expected that the long term
effect of a public power authority would' be to increase the rate of economic ~rowth
within the Towr~ Relocatlon.ofindustrial and commercial businesses into the area would
bc likely to re~uh in secondary residential growth aa new jobs are created. Although
economic growth is desirable, the~e may be cumulativc cnvironmental impacts on natural
and cultural rnsourccs .within the Tow~ Tho following i.~ will present a preliminary
discussion of these issues, however it is expired an additional study may be necessary to
· determine the ultimate impact of the proposed power authority.
RUG-OS-1998 1~:48 NELSON & POPE,LLP ~lb 4~'r ~ ~.~ox~
The most recent analysis of the development poteatial of thc Town of Sonthold is
presented in the 1984 Master Plan Background Studies, which wcrc intended to provide
ba~k, ground information for thc 1985 Master Plan Update. At that time, the population of
thc Town was estimated at 19,492 persons. Thc population hasnow increased, to' 20,443
based on LILCO estimates for 1997. Thus the population of the Town has increas~ by
approximately 10% sinc~ the 1984 plan was completedi which is much less than the
estimates predicted at that time.
The Master Plan prescnt~ an analysis of thc vacant residential land within the Town,
concluding that thc full development potential under existing zoning would allow an
additional 4,360 resklcntial units if agricultural lands remained undeveloped. If the
agricultural lands were developed, an additional 9,310 units could be built. Bas~l on a
multiplier of 2.$ individuals per unit, this would increa~ the population of the Town by
23,275, roughly doubling the population. This maximum population was ~t__ims_ted based
on the zoning patterns at that time, and is likely to differ somewhat under existing zoning,
however, zoning does ~f'ectivoly limit population by regulating the permitted residential
density. The Master Plan background studies also analyzed the remaining industrial and
commeroial lands within the Town. At that time, there were approximately 500 acres of
industrially zoned land within the Town. Of this area, °nly 22% was used for industrial
purposes while an additional 16% was ¢ommerolally developed. Over half of the
industrially zoned lands were either vacant or in agricultural use, thus over 250 acres of'
industrially zoned land would remain for development.
The proposed power authority would make the Southhold Town an aii, aaive location for
new industry. The location on a p~finsula limits the desirability for those businesses
which depend heavily on transportation, and the Master Plan indicates it is most likely
the Town would am'aa computer based companies and other small business rather than
big industry. If approximately 250 acres of industrially zoned land remains within the
Town, this would glow development of approximately 62 acres of building coverage
based on a lot coverage of 25 perceat as allowed under Code. Accordir~ to the
Development Assessment Handbook Office ('Burchell, et al., 1994), office development
· typically results in 'approximate 3 jobs'per 1,000 s.f. The inventory of existing industrial
development presented in the Master Plan indicated there were 0.9 jobs per 1,000 s.f.
This number is considerably lower than that predicted by Burchell, et si. (1954), and the
difference is probably duc in pan to the large proportion of warehousing industries within
the Town in 1980 when the study was completed. Based on the, sc two multipliers, it
appears that the 250 acres of remaining industrial land could result in potential job
generation of between 3,000 and 8,000 ii' developed at full potential. Although it is
unlikely that this development would occur at one time, such development would clearly
place a stress on the remaining residentially zoned land, which has thc potential for only
4,000 to 9,000 new unit% as outlined above. In addition, this prelimina~ analysis does
not include secondary job creation in the commercial sector, which would he ~enerated
by spending from new employees within the industrial sector.
Town land usc docum~otsplac~.& high priority in the preservation of the rural character
of the Town, includin$ the r~tcntion ofth~ traditional agricultural and fishing industries.
The third primary industry in the Town is tourism, which r~lies heavily on preservation
of the existing small town atmospl~r¢ of the area. The 'Stewardship Task Force Report,
prepared in 191/4, Paggests several alternatives for preserving the rural character o/' the
Town, including farmland pre~.z'eation and meaaures for preserving the historic hamlets.
The proposed power authority would b~ expected to r~ult in increased pressure for
development of vacant and a~ricolmral land. Full development of the Town could occur
under existing conditions, however, the rat~ of growth would be expected to accelerate if
the power authority reduces electric rates as has been predicted. In particular, the
potential creation of 3,000 to 8,000 n~w jobs within the Town could result in pressure to
develop agricultural land, which the Town has indicated as a high priority for protection.
In addition, impacts to natural and cultural resources associated with an increase in
development would be expea~d, These misht include impacts to groundwater quality,
reduction in natural habitats, and increased traffic as well as stress to other environmental
rl~ouroo$.
The direct afl'ec~ of creation of the new ordinance would be less significant than the
indirect impacts, and would include only the effect of location of a new power plant and
other infi'astm~ for the proposed power authority. Site specific environment impacts
would be regu~ed under the ~xistiv~ SEQRA legislation, and would thus be minimized.
The SEQRA process would also help insure Chat the environmental impacts from
individual development projects are limit~l, however, such site specific revi~v does not
always address the cumulative impacts of~rowth within a larger region. A more detailed
study of the economic impacts of the proposed power authority based on the experience
o/' other municipalities appears warranted. The study could th~ be incoq~orated into a
Dra/t Environmental Impact Statement which analyzes the cumulative environmental
impacts of the proposed power authority based on the ~'owth predictions of the economic
impac~ assessment. In addition, the document could explore planning initiatives and
other measures which might mitigate the impact of an increased rate of growth within the
Town.
In summa~, the proposed project is an unlisted action under the SF..QR Act, but appears
to warrant a positive declaration based on this prelimina~' analysis. Creation of a power
authorky would be beneficial to thc residents of thc Town, and it is likely that the
cumulative ~rowth impacts could be mitigaied through pwper planning initiatives.. It is
recommended that further study be undertaken by the Town beforc approval of the
proposed power ~,thority in order to de~ermine the impact ofreduc.~d elastic rates on the
rate of ~rowth within the Town and related cumulative impacts. If the Town Board is in
agreement with this review, thc prcparation of a positive declaration appears warranted.
Please call. if you have any questions.
Sincerely,
RUG-03-i998 13:49 NELSDN & POPE,LLP 516 42? bS~
14-16-2(2/87~7c S£QR
617.21
Appendix A .
State Environmental Oualitv Review
FULL ENVIRONMENTAL ~ESSMENT FORM
Puroose: The full ~ is dasil~l. ~_help a_l!plican~s, and.ag.~es ~ in .au o. rd.~..ly
.whS~r a project or acU~on may~pe ~,-cant. lue q%esuou 9~ w.mm~r. an .~u. q.n may ~e s~nmca~.. ,~_~t
~ways ~ w. ~.anp~ r:,rr~qu .?uy, _u~rc.arc ~ ora proje~, ~s~..__a~. suvj~y~ or, .u~a~azu. r.cable.~R, ls
also un~l~i--~xxl t~at u~ ~ ~ s~Smnca~e, may nav~ u~r4. e or no I0..rr~ml Imow~lS~ o~
.en~..~. or may .be .to:bmcally cxpcr~ .m ~nviro ~nm~...~. anal~vs~s. In acld~ffot!,, n~u.y wao. havc~
k~_ owJodg~ m on~ pamcular area my not I~ awar~ ot u~ ~aaor concern att~i~n~ mc qu~-'~on
Tl~ ful! EAF is ~ ~o pro~d~ a n~hod.wh~b, y. applica~s ancl.ag.~. ¢~ ca~..be .assur~ .U~at
informatxon to ~t a project or acUon-
Full EAF Components: The full EAF is compti.~xi of threo parts.
Part 1: Provides o. bjezxiv~ .~- -_~.,in~o ,n~ti.on., ~ab~u. ~, a siy~n p. roi.e~t and i~ .si~. By id~i~yins basic
proj~'t claxa, it assists a z~u~ver m u~ ana~ys,~ ~ zag~s p~ace m Para z ann ~.
Part :2: F .oc~es. on id~ th~ .range of. ,p~.,sibl¢ ~pacts ~ may ..occur from. a project or.a~ti.gn.. It
Part $.-.ff.any impact in P,,az! 2 is ideated a~ potentially-large, ~ Pan 3 is ~ to ~aluate wh~h~r
or not mc tmpact ~s actually unpor~ar~.
DETERMINATION OF SIGNIFICANCE - TYPE 1 AND UNLISTED ACTIONS
ldentify the Portiom of EAF compl~t~d for this project: X Partl X Part2 Part3
suppo~, ~e .~torn!a~. q.n, ,apa, co,ns~xn~, .ogre th~ niagnitude 'and_._~_______ unpacg ~t is
r~asonamy cl~-num~ ~y me le~a ag~'y
roll nor hav~ a s:gmtw.~zt tmpa~ ~n mc cnvu~l~flcnt, thex~om a negauve aeciarauon wm
be prepared.
Board of ~e Town of $outhold
Nan~ of Lead Ag~cy
Gregor~ Yakaboski
Print or Typ~ N~ of l~'po~slbla Officer in ~ Ag~cy
Tmon Attorne~
Title of Respomible Offic~
S~mtu~ of l~pa~r
If diffarc~t from mSlXmslbt~ officer)
AUG-05-1998 13:49 NELSON & POPE.LLP
PART 1 - PROJECT INFORMATIC
Prepared by Project Sponsor
NOTICE: This ~ is desilmed to a~irt in d~ermini.ng .~.ethe!_ the .abii.on prg. _p2sed may have ~hs, ig-
queg~i.'o.~ will .b~ ,cgmid~ed as_ ~ o~ m~ a, pph .ca~Ln.. tot .a. pprova{ ~ may..~ suoj~t., w tarry. _r
v~nncauon aaa puOn~ r~a~v. Pr~i~ any aoatuo~i iafotmatioa you neaeve vau ~e n~aea m oompt6"re
Paxts 2 and 3.
not ~.:o. lvc n~..stud~, ~ or .mvemgauo~ rf inform~on r~tmrmg s~ca a~monai worx ~s
NAME OF ACTIObl
Draft Local Law to Create a power AuthorRv P/'~thin the Town of $outhold
LOC~TION OF At;flON (Indude Strut .ad,b~a, M~mi~ipality and County)
Town of Soutkold (will w~plv throughout the Town)
blAME OF APPLICANT/$PON$OR
~'own of $outAoId
ADDRESS
$outhold
NAME OF OWl~R Cd
ADDP. ESS
B~$ TELEPHONE
(516) 765-1889
STATE ZIP CODE
11971
BUSINESS -i~.LEPHONE
CITY'/PO STATE ZIP CODE
Please Comuleta Each Ouestion - Indicate N.A. if not applicable
A. SITE DESCRIPTION
Physical sctting of overall pwjecg both dcvclop~l. ~and und_cvclopcd
1. Pre.s~ land use: Urban IndusU~ Conur~rc~m R~sid~tial (Suburban)
~ (nou-farm) ~Fogst .Agfi/mlmre
X___Other Rural Township with azricultural areas and small commercial centers
2. Toufl acre~e of projec~ ar~ N/A acres.
APPROXIMATE ACREAGE
What !s p.r~mfmam roil type4s) aa prc~j~ct .sita? Mostly Haven-l~verheadAssociatlon
a. $oil drainage: X Well drain~ .~of~ite ~M0der'a~lywefl dmia~
Po~r dtain~ % of sRo
~% of sita
b. Ifanyagriculmra~landisinvolved, ho~manyacrcs ofsoil arc classified within soil group 1
4 ofd~ ~ ~ Cla,s~i~l~n S _y_y_y_y_y_y_y_y_y~m_ 7 ts a'--'--~- 'gr'/c-u/tural (S~e 1 NYCRR 370).
..... Portton.df T .ow~ .
4. Are mere oeam~ .out~tppp...mz on prmoct ~e-t Yes X..No
5. ~.pproxima~ lna'c~a~ or propo~l projec~ s~e mm su~z: 0-10% %
~ 15% or
2
Il.Does project site contain any sp~;ies of plant or ~-i,nal lif~ ~ is iclcmifled aa thr~__,~,~d or
et~tl~n~ed?
X Y~s ~ No Accordin~ ~o
Id~fffy each species Some ra~e s~ecies found within the Town
12.Arc there any tmiquc or unusual land fo~as on ~ proj~'c sim? (i.e., cliffs, dunes, oa~ goolo~ica~
formations) X Yes ~No Desc~be Town include~ bluffs, kettleholes, wetlands,
dun~ or other unusual features
13.1s thc project site presently used by thc community or n~ighborhood aa an olxa spac~ or relaxation
area?
X, Yes , No If yes, explain
14.Daes the ~rcsent sil~ include scenic views known to bo important to lhe communi~?
Xyes
. NO
15.Streams wiflgn or contiguous ~o project area: Peconlc River & Trlbutari~;
a. Name of Sla'~am and ~ of River w which it is tributary
16.Lak.~.., port_ds, ~.~.., .arca~_ within or contiguous to proj.ect~..a!ea-;_ --.
17.Is the si~ served by eads~ing public utilities? Yes ~N..o rown currently served by LILCO
a) Ii'Yes, does sufficient capacity ~ to allow ~orme~ion? ~ Yes No
b) If Yes, will improvcrae~ be nec~sa~ eo allow conmcfioa? ~Yes No
la. Is ~1~ ~ 1 .oink_ in an a~ricuitotal disttia cercifi .c!t. pu.rsu .ant !o A~_c~. l_ ,rare
25-A.~, S~oa 303 and 3'047 ...Yes __l~ongncuaunu~mnct~t'r~enttnTrown
19.Is g~. site located in or substamiallv comi.euous to a Critical Enviromnmtal ~ desiimatedour~mnt to
Articl~8ofii~ECL, and6NYCl~,617.~ X .Yes .__No CEAsprese~twtthfnTown
20.Haa th~ si~ ever been used for the disposal of solid or h~,~dous waa~? . Yes No
iR.. PRO,YE .C~ DF~CRIPTION . ._
Physical dimensian.s and scale orproject ii-ill in dimea~ioas as appmpziate) AbA
a. Total congguous acreage ovm~ or controlled by project SlX~sor ac. res.
b. ProJect acreage m be develaped acres initially; acr~ ultimawJy.
c. Project acreage to ranain und~vol~ acres.
d. L~a~h ofprojocs, in mike: (ifapprop~')
c. Iftbe project is an expansion, in&cato pcrcant of expansion proposed %
f. N,,,-_~r ofoff-sm~ parking spaces existing : propoeat
$. Maximum vehicular hips gea~a~d l~r hour 0tpon ~n,,plctioa ofpmjccO?
One Family Two Family Multipk Family Corldo~ini~tn
Initially
Ultima~y
i. nima'-sknn em f~e0 of UzS~t proposed struaure __ heish~
j. Linear fe~ of fxonlago ~ a public thoroughfare projeci will occupy is?
3
AUG-05-19~8 13:50 NELSON & POPE,LLP olo ~r Jo~ r.oo. iJ
2. How much natural malea~al (i.e. rock, ~a~h, etc.) will b~ rmn0wd from ~ si~? N/~ t~bic ~.
3. Wffi ~ ~ ~ ~1~i~? y~ No X N/A
~ ~, for ~ ~ pu~ is ~ si~ ~ ~?
b. Will ~il ~ ~il~ f~ r~? .. Y~ ~ No
c. Wffi up~ sub~ ~ ~fl~ for ~? Yes ~No
4. H~r~ofv~(u~s,~bs,~~)~~ms~? ~/~ ~.
~'proj~yWfll ~ ~ ~ (o~ 100No Y~ old) or ~r ~y-~ ~ ~ ~ ~ ~s
6. ~ ~ p~ p~ ~ ~ ~ ~n N/A ~, (~u~ ~oh~).
7. If muki-pha.scd:
· . Total numb~ of phases amidpat~d N/A (number).
b. Anfidpa~i dat~ ofcomm~n~ment phas~ 1 raon~h __
c. Approximaze cemplctiea da~ offing phas~ . month year.
d, Is phase 1 funcfieaally dependent oa subsequeat pha,~s? ~ Yes
8. Will blasting occur during ~astm~iaa? Yes ~X No
9. Nurnl~r of jobs gearrat~ during col~tmciion N/A : afler project is complete
10.Numlyzr of jobs elimi~-,~ by ~ projec~ none
1 l.Will project r~quire relocation of any pwjects or facilities? Yes X No
If yes, ~,plain
· y~ar, (including d~molitioa).
No
N/A
12.Is surface liquid was~ disposal involved? Yes ~ No
a. If yes, indicate typ~ of wa.~ (sewage, industrial, ac.) and aw~un
b. Name of water body irdo which effluent will be dischargM
13.Is subsuffac~ liquid waste disposal involved? Yes .X No
Type
14,Will suffac~ ar~ of an ~xisting wafer body increase or decrease by proposal?
15.~ project or ..~.y _l~rtion o, fproject locatec], in .a 1.00 ye~., fl,,opd plain? _ Yes X
I own a~e ~m Jtdod ptttm -- some ~etlands located in mese area&
16.Will ~he proj~c$ b'm~a~ solid waste? ~ Yes ~ No
b. If yes, will an cxisling solid w-xs~z facility bc used? y~s No
c. ffycs, giv~nam~ ; location
d. W'dl any wastes not go into a ~nlg~ ~ ~ or itiro a saailary hnd/iil?
Yes No
No Portions of the
Yes ~ No
17.Will ~ proj~ involve the disposal of solid waste? y~ X No
a. Ify~s, what is ~ anticiparzd ra~ ofdisposal? to~n~mtk
b. If y~, what/s the ar~tidpa~ site life? years.
18.Will proj~-'t us~ herbicides or pt~dcides? Yes X No
19.Will projec~ routinely pr~luce odors (more hhan one hour per day)? ~Yes
20.WilI project produ~ operating noise ex_c_~__.ing the local ambient nois~ levels?
X No
Yes XNo
21.Willprojectresulti~anim~easeinene~yus~? Yes ~/' No If y~ indicat~ type(s)
23.Total ~nrlcip~_a'!_ water ,~ge per day ff/A galloas/day.
24.Do~ project involv~ ~ Se,.,,,. or Federal funding? ~ Yes No
If y~, ~AplaJn Implementation v~ill reeulre funding, to be recovered from f~ex for utili~ ~
4
2$.Approvals Required:
City, Town, vil~ ~o~rd ~ Yes
City, Town, Villa~ Plamfing Bonrd~ Yes
City, Town Zonin~ lk~rd ~ Yes
City, Conmy Hcahh Depanma~t Ycs No
O-,her Local Agonies Yes No
Other ~ Ag~.ies ~ Yes No
St~t~ Agdmcdes Yes No
Federal A~encies ~ Yes No
C. ~ONING AND PLANNING INFO~TION
L Daes proposed a~i_r~ involve ~ plnn~in~ or zonin~ decision?
Type
No
Yes --- No
Submittal Date
Ifth~ proposed acIion i~ th~ subdivision of lind, ~ may k~s aro proposcd? N/A
a. Wha~ is dm minimum lot size proposed?
O.Will p~ action requir~ any author~..'~. ~s) for ~t~ formation of sewcr or water clisl~cts?
,, Xes ,~_ ~o
1 l.V¢fll the proposed action crear~ a demand for any cohu,tanlty provided s~'vices (recreation, ~iucafion,
poi/co, fire protect/on)? Yes ~' No
a. If yes, is existing capacity sufficient to handle projected demand? ~ Yes No
12.Will 'he proposod ~ resu~ in ~h¢ $~rafion of traffic $i~. ificantly above present levels?
~ Yes ,~ , No
a. If yes, is tl~ gxi~,g mad nawork adequazc ~o handlc ~he a&//donal waffic?. Ycs~ No
D...I~'. Ol/~tITIO~L DETAI/,.S . .
~,.m~ .apy additiomd iufo.mm!ipn.', as may be ;a-~__~d. to c!.arify your2.mject. If thee..are or may
am~rse unpacts a~xaat~ w~.~_ _yp~j prolx~, p~ase mscuss suc~ unpacts and t~ rr~asur~ wnic~
you propo~ to mifiga~ or avoid m~n.
F~ yERWI_ CATION
I c~fl/fy that the information providad abov~ is tr~ to tho be~'t of my kn0wledge.
Appl/cam/Sponsor Nan~
Si~ature Title
~;fothe.m~.'on is in th,~ Co ..a~. _ .Area, and you are a state a~eucy, complete the Coastal Assessment
rm More proceeamg
5
Part 2--PROJECT IMPACTS AND THEIR M,,,.~NITUDE
Responsibility of Lead Agency
General information (Read Carefully]
· in completing the form the reviewer should be guided by the question: Have my responses and determinations been
reasonable! The reviewer is not expected to be an expert environmental analyst.
· The Eaamples provided are to a~sist the reviewer by showing types of impacts and wherever possible the threshold of
magnitude that would trigger a response in column 2. The examples are generally applicable throughout the State and
I~or most situations. But, for amy specific project or site other examples and/or lower thresholds may be appropriate
for a Potential Large Impact response, thus requiring evaluation in Part 3.
· The impact~ of each prOiect, on each site, in each locality, will vary. Therefore, the examples are illustrative and
have been offered as guidance. They do not constitute an exhaustive list of impacts and thresholds to answer each question.
· The number of examples per question does not indicate the importance of each question.
· In identifying impacts, consider long term, short term and cure,alive effects.
Instructions (Read carefully}
a. AnsweF each of the 20 questions in PART 2. Answer Yea if t~ere will be any impact,
b. Maybe answers should be considered aa Yes answers.
c, if answering Yes to a question then oheck the appropriate box (column I or 2) to indicate the potential size of the
Impa~L if impact threshold equals or exceeds any example provided, check column 2. If impact will occur bur
threshold iS lower than exarpple, check column 1.
d, identifying that an impact will be potentially large (columr~ 2) does not mean that it is oleo necessarily aig~ificanL
Any large impact must be evaluated in PART 3 to determine significance. Identlfying an impact in column 2 simply
asks that it be looked at further.
e. If reviewer has doubt about size of the impact then consider tr~e impact as potentially large and proceed to PART 3.
f. h' a potentially large impact checked in column 2 eon be mitigated by change(s) in the project to a small to moderate
impact, also check the Yes box in column 3. A No response indicates that such a reduction Is not possible, This
must be explained Jn Part 3,
IMPACT ON LAND
1. Will the proposed action result in a physical change [.o the ptoiect site?
DNO ~YES
Examples that would apply to column 2
· Any construction on slopes of 15% or greater, (15 foot rise per 100 n
foot of length), or where the general slopes in the project area exceed
10%.
· Construction on land where the depth to the water table is less than []
3 feet.
* Construction of paved parking area for %000 or more vehicles.
. Construction on land where bedrock is e~xposed or generally within
3 feet of existing ground surface.
· Construction that will continue for more than 1 year or involve more
than one phase or stage.
· Excavation for mining purposes that would remove more than 1,000
tons of natural material (i.e,, rock or soil) per year.
I 2 3
Small to Potential Can Impact Be
Moderate Large Mitigated By
impact Imp&ct Project Change
[] ~JYes I-3No
iConstruction or expansion of a sanitary I~ndfill. [] g ~Yes I-~No
Construction in a designated floodway. IJ-'l ["]Yes r-JNo
Other impacts ~'~,rte~Jrs~4~ ,'~m4'~_~ /~4,'-T' [] [~ C~:Yes [-]No
2. Will there be an effect to any unique or unusual land forms found on
the site[' (i.e.o cliffs, dunes, geological formations, etc.}llaNO ~YES
· Specific land forms: ~'~r~r'eT,,.~q~ ~.~./l~a'T'/f~,lH ~ ~ ~Ye5 ~No
RUG-I;~.3-199B 13:52 NELSON & POPE,LLP ~ .~ ¢ ..........
IMPACT ON WATER
3. will proposed action affect any water body designated as protected?
[Under Articles 15, 24, 25 of the Environmental Conservation Law, ECL}
DY£S
F. xam~les that would apply to column 2
· Developable area of site contains a protected water body.
· Dredging more than 100 cubic yards of material from channel of a
protected stream.
· Extension of utility disttlbution facilities through a protected water body.
· Construction in a designated freshwater or tidal wetland.
· Other impacts:
Small to
Moderate
Impact
2 3
Potential Can Impact Be
Large Mitigated By
impact Project Change
[] 0 F-lYes •No
F"l ~] i-lYes E]No
F'l ~ I-lYes ~qNo
~ D BYes ONo
[] D OYes ONo
4. Will proposed action affect any non-protected existing or new body
of water.~ ~NO OYES
Examples that would apply to column 2
· A 10% inCrease or decrease in the surface area of any body of water
or more than a 10 acre increase or decrease.
· ConstructiOn of a body of water that exceeds 10 acres of surface area.
· Other impacts:
[] I-lYes I'-~No
[] OYes ONo
[~ OYes I-]No
$. Wi[[ Proposed Action affect surface or groundwater
quality or quantity.~ [~NO ~,YES
Examples that would apply to column 2
· Proposed Action will require a discharge permit.
· Proposed Action requires use of a source of water that does not
have approval to serve proposed (project) action,
* Proposed Action requires water supply from wells with greater than 45
gallons per minute pumping capacity.
· Construction ot operation causing any contamination of a water
supply system.
· Proposed Action will adversely affect groundwater.
· Liquid effluent will be conveyed off the site to facilities which presently
do not exist or have inadequate capacity.
· Proposed Action would use water in excess of 20,000 gallons per
day.
* Proposed Action will likely cause siltation ot other discharge into an
existing body of water to the extent that there will be an obvious visual
contrast to natural conditions.
· Proposed Action will requite the storage of petroleum or chemical
products greater than 1,100 8aUons.
· Proposed Action will al/ow residential uses In areas without water
andJor sewer services.
· Proposed Action locates commercial and/or industrial uses which may
require new or expansion of existing waste treatment and/or storage
facilities.
· Other Impacts' ~e,'/'~4~'f'ttq~-.~'~'~'~/
6. will proposed action alter drainage flow or patterns, or surface
water runoff? nNO ~.Y ES
Examples that would apply to column 2
· Proposed Action would change flood water flows.
7
[]
[]
[] -F'~Yes ~No
[] nYes []No
[~ OYes i-]No
r'l I~Yes
[] [:3Yes
I-1 l-lyes ~No
OYes
~ [] r-ives nNo
[~ E] DYes •No
n
[~q'es CINo
OYes ["INo
AUG-03-1998 13:52
NELSON
· Proposed Action may cause ~ubstantJal erosion.
· Proposed Action [s incompatible with existing drainage patterns.
· Proposed Action will allow development in a designated floodway.
· Other impacts: /~lMatZ. ~..~"~'e.~b~f /A4,P~J~
IMPACT ON AIR
7. WI, proposed action affect air quality?
I:xamples that would apply to column 2
· Proposed Action wBI induce 1,0OO or mo~e vehicle trips in any given
hour.
· Proposed Action will result in the incineration of more than 1 ton of
refuse per hour.
* Emission rate of total contaminants will exceed S lbs. per hour or a
heat source producing more than 10 million BTU's per hour.
· Proposed action will allow an increase in the amount of [and committed
to industrial use.
· Proposed action will allow an increase in the density of industrial
development within existing industrial areas.
· Other impacts: '~e3"~_~73,~%1
1
Moderate
impact
2 3
Pocent~a! Can Impact ge
Large Mitigated By
ImpaCt Project Change
r-1 [] [-]Yes I-INo
[~ ~ ~"lyes F]No
~ {~ ~Yes ~-]No
[] CD OYes ONo
[] 0 Oyes r-]No
[] [-1 t'-J Yes I~No
[] ~ ['"]Yes ~-lNo
IMPACT ON PLANTS AND ANIMALS
8, Will Proposed Action affect any threatened or enda. nsered
species? I~NO
Examples that would apply to column 2
· Reduction of one or more species listed on the New York or Federal
list, using the site. over or near site or foun~ on the site.
· Removal of any portion of a critical or silnificant wildlife habitat.
· Al~plica~ion of pesticide or herbicide more than twice a year, other
than for agricultural purposes.
·O{her impacts- "~,~.~Ar~/
9. Will Proposed Action sulastantia,y street non-tnreateneo or
non-~ndangered species? i'INO ~YES
Examples that would apply to column 2
· Proposed Action would substantially interfere with any resident ct
migratory fish, shellfish or wildlife species.
· Proposed Action requires the removal of more than 10 acres
of mature forest (over 100 years of abe) or other locally important
vegetation.
IMPACT ON AGRICULTURAL LAND RESOURCES
10. Will the Proposed Action affect agricultural land resources?
DNO l~rES
Ex"mples that would apply to column 2
· The proposed action would sever, cross or limit access to agricultural
land (includes cropland, hayfields, pasture, vineyard, orchard, etc.)
8
[]
n
FIYes [:]No
[] ~[Yes [~No
OYes ~]No
I--lyes C~No
NELSON & POPE,LLP
· Construction activity would excavate or compact the soil profile of
agricultural land.
· The proposed action would irreversibly convert more than 10 acres
of agricultural land or, if located in an Agricultutal District, more
than 2.5 acres of agricultural ~and.
· The proposed action would disrupt or prevent installation of a&ricultural
land management systems (e.g., subsurface drain lines, outlet ditches,
strip crol~plng~; or create a need for such measures [e.g. cause a farm
field to drain poo~due to increased runoff)
' Other impact: ' ~~1- ~~ ~
I 2 :3
Small to Potential Can lmpact Be
Moderate Large Mitigated By ~
Impact impact Project Change
[] [3 []Yes ONo
[] [] ~]Yes ['-INo
IMPACT ON AESTHETIC RESOURCES
11. Will proposed action affect aesthetic resources~' rqNO ~]YE$
(If necessaq,, use the .Visual EAF Addendum in Section 617.20,
Appendix
Examples that would apply to column 2
· Proposed lanC~ uses, or project components obviously different from
or in sharp contrast to current surrounding land use pa:terns, whether
men-made or natural.
· Proposed land uses, or project components visible to users of
aesthetic resources which will eliminate or significantly reduce their
enjoyment of the aesthetic qualities of that resource.
· Project components that will result in the elimination or significant
screening of scenic views known to be important to the area.
· Other impacts:
IMPACT ON HISTORIC AND ARCHAEOLOGICAL RESOURCES
12. Will Proposed Action impact any site or structure of historic, pre-
historic or paleontological importance[ ~ I~NO OYES
Examples that would apply to column 2 ~ff, a~l~'~_._ ~_o~/~
· Proposed Action occurring wholly or par~y w~thm or s~u~r~tant~aJly
conQguous to any facility or site listed on the State or National Register
of historic places.
· Any impact to an archaeological site or fossil bed located within the
project site.
· Proposed Action will occur in an area de,sisnated as sensitive for
archaeologlca! sites on the NYS Site Inventow.
· Other impacts:
[] [] OYes
IMPACT ON OPEN SPACE AND RECREATION
13. Will Proposed Action Affect the quantity or quality of existing or
future open spaces or recreational opportunities~
Ezamples that would apply to column 2 ~NO Ji~IYES
o The permanent foreclosure of a future recreational opportuniW.
· A malor reduction of an open space important to the community,
· Other impacts: ~l:~f-f~/_ ,~::~e-~,~L,/~~ /,44,.~,,~/~..~,,..
[] n t-lYes
[D ~ ~2Ye,
9
IMPACT ON CRITICAL ENVIRONMENTAL AREAS
14. v/ill Proposed Action impact the exceptional or unique character,
istics o~ a critical environmental area [CEA) established pursuant to
List the environmental characteristics that caused the designation of
the CEA.
1
Small to
Moderate
Impact
2 3
Potential Can Impact Ee
Large Mitigated By
Impact Project Cl~ange
Examples :ha: would apply to column 2
· Proposed Action to locate within the CEA['
· Proposed Action will result in a reduction tn the quanti:yof the resource?
· Proposed Action wElT result in a reduction in the quality os: the resource?
· Proposed Ac:ton will impact the use. Junctzon or enjoyment of the
resource?
_ Ves nno
IMPACT ON TRANSPORTATION
15. will there be an effect to existing transportation systems~
E~ampJes that would apply to column 2
· Alteration of present patterns of movement o~; people and/or goods.
~ Proposed Action wiU result in major traffic problems. ~
Other impact~: t~t~/'l~ffq~7-(/:~f- /~FPe~'J~'r)~/~/ Ijl~il::ll~7~ [~
~¥es ~.No
[]yes
IMPACT ON ENERGY
16. Will proposed action affect the community's sources of fuel or
eners[y supply? ~NO ~YES
Examples that would apply to column 2
· Proposed Action will cause a greater than
any form of energy in the municipality.
· Proposed Action will require the creation or extension of an energy
transmission or supply system to serve more than 50 single or two family
residences or to serve a major commercial or industrial use.
o Other impacts:
[] ~Yes ~o
NELSON & POPE, LLP
NOISE AND ODOR IMPACTS ~m~Ji to
17. Will there be objectionable odors, noise, or vibration as a result Moderate
of the Proposed Action? ~NO []YES impact
Examples that would apply to column 2
· Blasting within 1,500 feet of a hospital, school or other sensitive [~
facility.
· Odors will occur routinely [more than one hour per day]. []
· Proposed Action will produce operating noise exceeding the local []
ambient noise levels for noise out, ida of structures.
· Proposed Action will remove natural barriers that would act as a []
noise screen.
· Other impacts; ~l~J~Aai~T, eT,.~ ~J ~/r';- ,~,~c?c:. ~,4.~'~ ~]
2 3
Potential Can Impa~t Be
Large Mitigated By
impact Project Change
~ ~Ye~ DNo
~ O~es ONo
0 OYes ~o
~ OYes ON•
IMPACT ON PUBLIC HEALTH
18. Will Proposed Action affect public health and safety?
~O DYES
E~amples that would apply to column 2
· Proposed Action may cause a risk of explosion or release of hazardous
substances (i.e, oil, pesticides, chemicals, radiation, etc.] in the event of
accident or upset conditions, or there may be a chronic Iow level
discharge or emission,
· Proposed Action may result in the burla[ of "hazardous wastes" in any
form (i.e. toxic, poisonous, highly reactive, radioactive, irritating,
infectious, etc.)
· Storage facilities for one million or more gallons of liquified natural
gas or other flammable liquids..
· Proposed action may result in the excavation or other disturbance
within 2,OOO feet of a site used for the disposal of solid or hazardous
waste.
· Other {mpact~:
[] fi]Yes I--~No
[] OYes F-tho
[] OYes I--JNO
[] OYes ~o
IMPACT ON GROWTH AND CHARACTER
OF COMMUNITY OR NEIGHBORHOOD
19. Will proposed action affect the character of the exlsting communlty?
I"INO ~YES
Examples that would apply to column 2 ,~,06/Z)lq~,~' I,'~ ~,4g~Tea
· The permanent population of the city, town or village in which the
project is located is likely to grow by more than S%.
· The municipal budget for capital expenditures or operating services
will increase by more than 5% per year as a result of this project.
· Proposed action will conflict with officially adopted plans or goals.
· Proposed action will cause a change in the density of land use.
· Proposed Action will replace or eliminate existing facilities, structures
or areas of historic importance to the community.
· Development will create a demand for additional community services
(e.~. schools, police and fire, etc.)
· Proposed Action will set an important precedent for future projects.
· Proposed Action will create or eliminate employment.
· Other impacts:
[] I Yes
[] OYes ONo
~ OYes CNg
[~ L;qYes I-1No
~ ~Yes ~No
~ ~Yes
20. Is there, or is there likely to be, public controversy related to potential adverse environmental impact~?
Il any action In Part 2 is identified as a potential large impact or if you oanrmt determine the magnitude of Impact, proceed lo Pitt
11
TOTAL P./.5
AUG-03-1998 17:40 NELSON ~ POPE.LLP bib 4~Y ~z~ r.~z/~
POSITIVE DECLARATION
Notice of Determination of Significance
Lead Agency: Town of Souzhold
Town Board
Address:
Town Hall, 53095 Main Road
Southold, New York 11971
Da~e:
..August
This notice is issued pursuant to Pan 617 of the implementing regulations peraining to
Article 8 (State Enviromncntal Quality Review) of tho Environmental Conservation Law.
The lead agency has determined that the proposed act/on de.~ribed below will not have a
s/gnificant effect on the environment and that a DraR Environmental Impact Stat~nent
need not be prepared.
Title o fAction:
SEQR Status:
Location:
Project Description:
Draft Local Law in Rehtion to Create a Power Authority
W'nhin the Town of Southold
Town of Southold, New York
Unlisted A~ion [6 NYCRR Part 617.2]
Would Apply Throughout the Town of Southold.
The pwposed action is the enactment of legislation which would
create an independent power authority within the Town of
Southold. The power authority would provide electric service and
natural gas to residents of Southold through a new department
within the Town government. The Long Island area currently has
the highest el~.ri~ rat~s within the continental United States, aad it
is expected that the proposed power authority could lower rates by
as much as 40 to 50 perr, ent within tb.e Town.
RUG-03-1998 17:40 NI~LSON & POPE,LLP oio .~r ¢o~ ~.~¢. ~.
Reasons Supporting This Determination:
This determination is issued in full consideration of the Criteria for Determination of
Significanc~ contained in 6 NYCP-,K Part 617.7, the Long Environmental Assessment
Form Pans I, 1I and Ill, and the following speciiic reasons:
Although the direct affect of creation of the new ordinance are Likely to be
minimal, growth-inducing impacts are expe0ted to. be si~nif/cant. It i,~ likely that
the long term effect ora publ/c power authority would be to d~crea~ thc cost of
,'nergy within the Town, which would increase the rate of ~',,onomi~ growth by
encouraging the relocation of industrial and commcrclal businesses into the area.
As many as 3,000 to $,000 new jobs could be created if thc remaining industrial
land within the Town were to be developed, and a secondary increase in the rate of
residential growth would be expected to occur as new jobs filled.
Although environmental review would help insure that the impacts from indiviOo!]
developmem projects are limited, sire s~¢ific review docs not always address the
cumulative impacts of growth within a larger region. Without proper planning, an
incre~e in the ratc of r~idential and indu~'aia[ growth is expected to result in
significant cumulative impacts, including, but not limited to, the following:
A potential increase ia leaching of nitrogen and other pollutants to
grouRdwater, from new development, with potential deterioration of
grouadwa~ar quality;
]Potential increase in development of existing open space areas with a
r~ulting reduction and fiagraentation of natural habitat for wildlife and
vegetation;
c) A potential increase in tra~c gcncrafion within thc Town;
Increased pressu~ for development of open space and agricollural lands,
and r~ulting deterioration of the rural character of the Town, in cordtict
wi~h the Town's stated land use goals;
e) Related stress to other enviwmnental resources within the Town.
For Further Information:
Con~ Person:
Ms. Judith Terry
Town Cl~rk
Town of South. oM
53095 MaiaRoa~ P.O. Box 1179
$outhold, New York 11971
AUG-03-1998 19:41 NELSON & POPE,LLP bib 4-~'r J~ r.~,~x~,~
TOTRL P. 04
LEGAL NOTICE
NOTICE OF PUBLIC
HEARING ON
LOCAL LAW
PUBLIC NOTICE IS
HEREBY GIVEN that there has
been presented to the Town
Board of the Town of Sonthold,
Suffolk County, New York, on
the 14th day of April, 1998, a
Local Law entitled, "A Local
Law in Relation to Creatinga
Municipal Gas Utility in the
Town ofSo~thold," pursmmt to
Section 360 of the General Law
of the State of New York.
NOTICE IS FURTHER
GIVEN that the Town Board of
the Town of Southold will hold
a public hearing On the aforesaid
Local Law at the Southold Town
Hall, 53095 Main Road,
Southold, New York, on the
28th day of April, 1998, at 8:10
p.ua., at which time all interested
persons will be given an oppor-
tunity to be heard.
This proposed "Local Law in
Relation to Creating a Mu-
nicipal Gas Ufility in the Town
of Southold,' reads as follows:
LOCAL LAW NO.. - 1998
A Local Law in Relation to the
Creation of a Municipal Gas
Utility in the Town of Southold.
BE IT ENACTED, the Town
Board of the Town of Southold
as follows:
Section 1; Title, Puroose and
Definitions.
~actuaent.
Pursuant to Section lO of the
Home Rule Law, and Section
360 of the General MuniciPal
Law, the Town of Southold,
County of Suffolk and State of
New York, hereby eaaet~ this
local law to create th~ Town of
Southold Municipal Gas Utility.
1.1 lB) Effective Date;
The local 1aw shall t~ke effect
on the filing of the apprOved
Local Law with the S~¢mtary of
State of New York, which shall
be within twenty (20) days a~cr
its approval by asimple major-
ity of the voters by mandatory
~feremlam at an election or spe-
cial election to be held to ap-
prove this local law, pursuant to
Section 360 of the General Mu-
nicipal Law.
WHEREAS the Town of
Southold is a Town duly incor-
porated under the laws of the
State of New York, and;
WIiEREAS the Town Board
of the Town of Southold is duly
empowered pursuant to Section
360 of the General Municipal
Law of the State of New York
to form a Municipal Gas Utility
tbr the Town, and;
WHEREAS it is essential for
the well-being, livelihood and
safety of the residents and busi-
nesses of the Town, and of the
other consumers of gas power in
thc Town, including the Town
itselt; and of their families and
guests, for the economic climate
of the Town, and for the protec-
tion of private and public prop-
erty within the Town 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 Town, and the Town itself,
be provided in a reliable man-
ner, and at a fair and reasonable
cost, and;
WHEREAS the Town Board
has determined that the most re-
liable, fair, and economical way
for gas and gas supply to be pro-
vided to the Town of Southold,
its residents, businesses and in-
stitutions, is by the creation of
the Town of Southold Munici-
pal Gas Utility, the Town Board
of the Town of Southold hereby
enacts this local law for the in-
tent and purpose of establishing
a Municipal Gas Utility pursu-
nut to Section 360 of the Gen-
eral Municipal Law, and all of
the powers and duties thereun-
Section 2; Eauivment and Fa-
cilities, Maintenance and Ser-
vice, and Suvvlv.
The Town of Southold Mu-
nicipal Gas Utility shall acquire
the necessary facilities, and ei-
ther establish necessary func-
tions for or procure contracts for
the maintenance, service and
billing of the gas energy system,
and a supply of gas such as are
necessary for the creation of the
Southold Municipal Gas Utility.
The proposed method of con-
structing, leasing, purchasing, or
acquiring, the facilities neces-
sary for the operation of the
Southold Municipal Gas Utility,
if any, together with both the
maximum and the estimated
costs thereof, the method of fur-
nishing such service, and the
method of obtaining gas supply
shall be as follows:
2. l Equivment and Facilities.
A. The Town of Southold Mu-
nicipal Gas Utility will obtain
access to or acquire the portion
of the gas distribution system
within the Town, if any, that it
is necessary for the Town to op-
erate the Municipal Gas Utility,
by purchase, lease or condem-
nation from that which is cur-
rently owned by the Long Island
Lighting Company ("LILCO"),
or by obtaining other facilities
as necessary. The municipal gas
utility will only acquire, con-
street or obtain that equipment
and facilities, if any, which are
necessary to provide gas supply,
and segregate and operate the
municipal gas utility and as may
be needed to separate itself from
the LILCO system or to meter
the gas supplied to or used by
the Town of Southold Munici-
pal Gas Utility.
B. The maximum and esti-
mated cost of the items set forth
in subparagraph (A) hereof, is
expected to be not more than
twenty-five thousand dollars
($25,000).
C. The cost of the necessary
facilities, if any, and distribution
and any other costs that are nec-
essary for the implementation of
the Town of Southold Munici-
pal Gas Utility and the entirc
costs of thc implementatien and
operation of the Town of
Southold Municipal Gas Utility
will be paid in the first instance
from thc revenues gcncrated by
the Town of Southold Munici-
pal Gas Utility only.
D. None of the costs of the
implementation or operation of
the Town of Southold Munici-
pal Gas Utility shall be included
in or have any affect on the
Town general budget or the as-
sessment of Town property
taxes.
2.2. Service and Maintenance
of Equioment, Facilities, and
Distribution System.
A. The Town of Southold Mu-
nicipal Gas Utility will obtain
service and maintenance for the
equipment and infrastructure of
the Southold Municipal Gas
Utility, and the other remaining
gas distribution and other equip-
ment that is within the Town
from LILCO, or the existing gas
utility for the time that the util-
ity i~ manda?d to provide those
services, or ~t remains in the best
interests of the Town to receive
the maintenance from that
source, and will otherwise con-
tract out the service and main-:
tenance to other suitable con~
tractors as necessary or when
the best interests of the Town
and the Municipal Gas Utility.
The Town of Southold Mu-
nicipal Gas Utility will obtain
billing and management services
by obtaining contracts with suit-
able and acceptable mainte-
SS:
duly sworn, says that
rdinator, of the TRAV-
,lic newspaper printed
unty; and that the no-
rd is a printed copy,
J Traveler Watchman
g on the ................
...............
nance, service and billing cum- . ......................... weeks
panics. The contracts will be
/(.,
......................... ~day of
supported wherever possible by
a performance bond of an
amount acceptable to the Town.
B. The Town will also con-
sider and retain'the ability and
power to create its own mainte-
nance and service and billing de-
partment, including the equip-
ment, materials, and supplies re-
quired lbr that department, in
order to provide billing, service
and maintenance to the Town of
Southold Municipal Gas Utility
if the Town deems it to be in its
best interests to do so. 2.3. Gas Supply.
A. The Town of'Southold Mu-
nicipal Gas Utility will obtain its
supply of gas by contracting
with another utility or supplier
to pruvide the supply of gas to
the Municipal Gas Utility.
3.0. Mandatory Ret~rendum.
This Local Law shall be sub-
ject to approval by a mandatory
referendum of the residents of
the Town of Southold, pursuant
to and as set forth in Section 360
of the General Municipal Law
of the State of New York, the
Election Law and Town Law of
the State of New York.
The Town of Southold Mu-
nicipal Gas Utility shall be ef-
fective and granted the full pow-
ers 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.
BY ORDER OF THE
TOWN BOARD OF THE
TOWN OF SOUTHOLD,
SOUTHOLD, NEW YORK
Dated: April 14, 1998
ELIZABETH A. NEVILLE,
SOUTHOLD TOWN CLERK
1X-4/16/98(109)
~.. $~kINEIDER
:, State of New York
4806846
~ Suffolk Coun~ I
STATE OF NEW YORK)
SS:
COUNTY OF SUFFOLK)
ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, New York
being duly sworn, says that on the 14th day of April 1998
she affixed a notice of which the annexed printed notice is a true copy,
in a proper and substantial manner, in a most public place in the Town of
Southold, Suffolk County, New York, to wit: Town Clerk's Bulletin
Board, Southold Town Hall, 53095 Main Road, Southold, New York.
"Notice of Public Hearing on "A Local Law in Relation to Creating A
Municipal (;as Utility in the Town of Southold".
abeth A. N~afville
Southoid Towr~ Clerk
Sworn to before me this
14thday of April , 1998.
LIJ,~DA J. COOPER
I~o. ZU322563 Suffolk Coun~ O~'
· ~erm ~ire~ D~r 31, 1~ / ~
LEGAL NOTICE
NOTICE OF PUBLIC HEARING ON LOCAL LAW
PUBLIC NOTICE IS HEREBY GIVEN that there has been presented to
the Town Board of the Town of Southold, Suffolk County, New York, on
the 1Ltth day of April, 1998, a LOCAL LAW entitled "A Local Law in
Relation to Creating a Municipal Gas Utility in the Town of Southold",
pursuant to Section 360 of the General Law of the State of New York
NOTICE IS FURTHER GIVEN that the Town Board of the Town of
Southold will hold a public hearing on the aforesaid Local Law at the
Southold Town Hall, 53095 Main Road, Southold, New York, on the 28th
day of April, 1998. at 8:10 P.M., at which time all interested persons
will be heard.
This proposed "Local Law in Relation to Creating
Utility in the Town of Southold" reads as follows:
LOCAL LAW NO.
- 1998
a Municipal Gas
A Local Law in Relation to the Creation of a
Municipal Gas Utility in the Town of Southold
BE IT ENACTED, the Town Board of the Town of Southold as follows:
Section 1~ Title, Purpose and Definitions. 1.1(A). Enactment.
Pursuant to Section 10 of the Home Rule Law, and Section 360
of the General Municipal Law, the Town of Southold, County of
Suffolk and State of New York, hereby enacts this local law to
create the Town of Southold Municipal Gas Utility.
1.1(B). Effeotive Date.
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 twenty (20) days after its approval by a simple majority of
the voters by mandatory referendum at an election or ~pecial
election to be held to approve this local law, pursuant to Section
360 of the General Municipal Law.
1.2. Intent.
WHEREAS the Town of Southold is a Town duly incorporated
under the laws of the State of New York, and;
WHEREAS the Town Board of the Town of Southold is duly
empowered pursuant to Section 360 of the General Municipal Law of
the State of New York to form a Municipal Gas Utility for the
Town, and;
WHEREAS it is essential for the well-being, livelihood and
safety of the residents and businesses of the Town, and of the
other consumers of gas power in the Town, including the Town
itself, and of their families and guests, for the economic climate
of the Town, and-for the protection of private and public property
within the Town and the value of that property, that the supply
and distributio~ of gas to the residents, businesses and other
!consumers of gas power in the Town, and the Town itself, be
Iprovided in a reliable manner, and at a fair and reasonable cost,
'and;
WHEREAS the Town Board has determined that the most reliable,
fair, and economical way for gas and gas supply to be provided to
the Town of Southold, its residents, businesses and institutions,
is by the creation of the Town of Southold Municipal Gas Utility,
the Town Board of the Town of Southold hereby enacts this local
law for the intent and purpose of establishing a Municipal Gas
Utility pursuant to Section 360 of the General Municipal Law, and
all of the powers and duties thereunder.
Section 2.;E~la~e~t',an~ Facilities, Maintenance and Service, and SUDDi¥
The Town of Southold Municipal Gas Utility shall acquire the
necessary facilities, and either establish necessary functions for
or procure contracts for the maintenance, service and billing of
the gas energy system, and a supply of gas such as are necessary
' for the creation of the Southold Municipal Gas Utility.
The proposed method of constructing, leasing, purchasing, or
acquiring, the facilities necessary for the operation of the
Southold Municipal Gas Utility, if any, together with both the
i maximum and the estimated costs thereof, the method of furnishing
!. such service, and the method of obtaining gas supply shall be as
~i follows:
ii 2.1.E~ui~m~otand Facilities.
, A. The Town of Southold Municipal Gas Utility will obtain
access to or acquire the portion of the gas distribution system
within the Town, if any, that it is necessary for the Town to
operate the Municipal Gas Utility, by purchase, lease, or
condemnation from that which is currently owned by the Long Island
Lighting Corporation ("Lilco"), or by obtaining other facilities
as necessary. The municipal gas utility will only acquire,
construct or obtain that equipment and facilities, if any, which
are necessary to provide gas supply, and segregate and operate the
municipal gas utility and as may be needed to separate itself from
the Lilco system or to meter the gas supplied to or used by the
Town of Southold Municipal Gas Utility.
B. The maximum and estimated cost of the items set forth in
subparagraph (A) hereof, is expected to be not more than twenty-
five thousand dollars ($25,000).
C. The cost of the necessary facilities, if any, and
distribution and any other costs that are necessary for the
implementation of the Town of Southold Municipal Gas Utility and
the entire costs of the implementation and operation of the Town
of Southold Municipal Gas Utility will be paid in the first
instance from the revenues generated by the Town of Southold
Municipal Gas Utility only.
D. None of the costs of the implementation or operation of
the Town of Southold Municipal Gas Utility shall be included in or
have any affect on the Town general budget or the assessment of
Town property taxes.
Z.Z. Service and Maintenance of Equipment.
Facilities, and Distribution System.
A. The Town of Southold Municipal Gas Utility will obtain
service and maintenance for the equipment and infrastructure of
the Southold Municipal Gas Utility, and the other remaining gas
distribution and other equipment that is within the Town from
Lilco, 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 Town 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 Town and the Municipal Gas Utility.
The Town of Southold Municipal Gas Utility will obtain
billing and management services by obtaining contracts with
suitable and acceDtable maintenance, service and billing
companies. The contracts will be supported wherever possible by a
performance bond of an amount acceptable to the Town.
B. The Town will also consider and re~ain the ability
land power to create its own maintenance and service and billing
!!department, including the equipment, materials, and supplies
ilrequired for that department, in order to provide billing, service
iiand maintenance to the Town of Southold Municipal Gas utility if
ithe Town deems it to be in the best interests of the Town to do
SO.
2.3.
A.
Gas Supply.
The Town of Southold Municipal Gas Utility will obtain
its supply of gas by contracting with another utility or supplier
to provide the supply of gas to the Municipal Gas Utility.
3.0. Mandatory Referendum.
This Local Law shall be subject to approval by a mandatory
referendum of the residents of the Town of Southold, pursuant to
!and as set forth in Section 360 of the General Municipal Law of
the State of New York, the Election Law and Town Law of the State
of New York
The Town of Southold Municipal Gas Utility shall be effective
and granted the full powers entitled to i~ by law on the date of
]the approval by a simple ma%orit¥ of the referendum, and the
filing of the Local Law with the Secrgtary of State of New York.
BY ORDER OF THE TOWN BOARD
SOUTHOLD, SOUTHOLD, NEW YORK.
Dated: April 1~, 1998
OF THE TOWN OF
ELIZABETH A. NEVILLE
SOUTHOLD TOWN CLERK
PLEASE PUBLISH ON APRIL 16,
(1) AFFIDAVIT OF PUBLICATION
TOWN CLERK, TOWN HALL, P.O.
YORK 11971.
1998, AND FORWARD ONE
TO ELIZABETH A. NEVILLE,
BOX 1179, SOUTHOLD, NEW
Copies to the following:
The Traveler Watchman
Town Board Members
Town Attorney
Town Clerk Bulletin Board
c Id Office: Traveler Stm~l, Southold.
Riv~h, ,ad Offico:
F~ CO~R SHEE~
SU~TOT~ PAGES (INCLUDING F~ COYER SHEET): ~I ~~e~/¢
FROM:
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................... ? .......................................................... TRANSMISSION RESULT REPORT .................... (APR 14 ~98 04:57PM) ...............
SOU] -D TOWN HALL 516 765 1B2B
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DATE START REMOTE TERMINAL TIME RE- MODE TOTAL PERSONAL LABEL FILE
TIME IDENTIFICATION SULTS PAGES MO.
APR 14 04:54PM 516+?G5+1756 03'19" OK S 05 010
E)ECM >)REDUCTIO~ S)STA~DARD M)MEMORY C)CONFIDENTIAL ~)BATCH
D)DETAIL $)TRAMSFER
F)FIME P)POLLIMG
LEGAL NOTICE
NOTICE OF PUBLIC HEARING ON LOCAL LAW
PUBLIC NOTICE IS HEREBY GIVEN that there has been presented to
the Town Board of the Town of Southold, Suffolk County, New York, on
the l~th day of April, 1998, a LOCAL LAW entitled "A Local Law in
Relation to Creating a Municipal Gas Utility in the Town of Southold",
pursuant to Section 360 of the General Law of the State of New York
NOTICE IS FURTHER GIVEN that the Town Board of the Town of
Southold will hold a public hearing on the aforesaid Local Law at the
Southold Town Hall, 53095 Main Road, Southold, New York, on the 28th
day of April. 1998, at 8:10 P.M., at which time all interested persons
will be heard.
This proposed ""Local Law in Relation to Creating a Municipal
Utility in the Town of Southold" reads as follows:
LOCAL LAW NO.
- 1998
Gas
A Local Law in Relation to the Creation of a
Municipal Gas Utility in the Town of Southold
BE IT ENACTED, the Town Board of the Town of Southold as follows:
Section 1~ Title, Purpose and Definitions. 1.1(A). Enactment.
Pursuant to Section 10 of the Home Rule Law, and Section 360
of the General Municipal Law, the Town of Southold, County of
Suffolk and State of New York, hereby enacts this local law to
create the Town of Southold Municipal Gas Utility.
1.1(B). Effective Date.
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 twenty (20) days after its approval by a simple majority of
the voters by mandatory referendum at an election or Special
election to be held to approve this local law, pursuant to Section
360 of the General Municipal Law.
1.2. Intent.
WHEREAS the Town of Southold is a Town duly incorporated
under the laws of the State of New York, and;
WHEREAS the Town Board of the Town of Southold is duly
empowered pursuant to Section 360 of the General Municipal Law of
the State of New York to form a Municipal Gas Utility for the
Town, and;
WHEREAS it is essential for the well-being, livelihood and
safety of the residents and businesses of the Town, and of the
other consumers of gas power in the Town, including the Town
itself, and of their families and guests, for the economic climate
of the Town, and'for the protection of private and public property
within the Town and the value of that property, that the supply
and distribution1 of gas to the residents, businesses and other
consumers of gas power in the Town, and the Town itself, be
provided in a reliable manner, and at a fair and reasonable cost,
and;
WHEREAS the Town Board has determined that the most reliable,
fair, and economical way for gas and gas supply to be provided to
the Town of Southold, its residents, businesses and institutions,
is by the creation of the Town of Southold Municipal Gas Utility,
the Town Board of the Town of Southold hereby enacts this local
law for the intent and purpose of establishing a Municipal Gas
Utility pursuant to Section 360 of the General Municipal Law, and
all of the powers and duties thereunder.
Section 2.;Eq~t an4 Faoilitles, Maintenance and Service, and BUDDIv
The Town of Southold Municipal Gas Utility shall acquire the
necessary facilities, and either establish necessary functions for
or procure contracts for the maintenance, service and billing of
the gas energy system, and a supply of gas such as are necessary
for the creation of the Southold Municipal Gas Utility.
The proposed method of constructing, leasing, purchasing, or
acquiring, the facilities necessary for the operation of the
Southold 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:
2.1.E~uio~tand Facilities.
A. The Town of Southold Municipal Gas Utility will obtain
access to or acquire the portion of the gas distribution system
within the Town, if any, that it is necessary for the Town to
operate the Municipal Gas Utility, by purchase, lease, or
condemnation from that which is currently owned by the Long Island
Lighting Corporation ("Lilco"), or by obtaining other facilities
as necessary. The municipal gas utility will only acquire,
construct or obtain that equipment and facilities, if any, which
are necessary to provide gas supply, and segregate and operate the
municipal gas utility and as may be needed to separate itself from
the Lilco system or to meter the gas supplied to or used by the
Town of Southold Municipal Gas Utility.
B. The maximum and estimated cost of the items set forth in
subparagraph (A) hereof, is expected to be not more than twenty-
five thousand dollars ($25,000).
C. The cost of the necessary facilities, if any, and
distribution and any other costs that are necessary for the
implementation of the Town of Southold Municipal Gas Utility and
the entire costs of the implementation and operation of the Town
of Southold Municipal Gas Utility will be paid in the first
instance from the revenues generated by the Town of Southold
Municipal Gas Utility only.
D. None of the costs of the implementation or operation of
the Town of Southold Municipal Gas Utility shall be included in or
have any affect on the Town general budget or the assessment of
Town property taxes.
2.2. Service and Maintenance of Equipment,
Faoilities, and Distribution System.
A. The Town of Southold Municipal Gas Utility will obtain
service and maintenance for the equipment and infrastructure of
the Southold Municipal Gas Utility, and the other remaining gas
distribution and other equipment that is within the Town from
Lilco, 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 Town 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 Town and the Municipal Gas Utility.
The Town of Southold Municipal Gas Utility will obtain
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 Town.
B. The Town 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 billing, service
and maintenance to the Town of Southold Municipal Gas Utility if
the Town deems it to be
SO.
A.
in the best interests of the Town to do
Gas BupDl¥.
The Town of Southold Municipal Gas Utility will obtain
its supply of gas by contracting with another utility or supplier
to provide the supply of gas to the Municipal Gas Utility.
3.0. Mandatory Referendum.
This Local Law shall be subject to approval by a mandatory
referendum of the residents of the Town of Southold, pursuant to
and as set forth in Section 360 of the General Municipal Law of
the State of New York, the Election Law and Town Law of the State
of New York
The Town of Southold Municipal Gas Utility shall be effective
and granted the full powers en%itled to i~ by law on the date of
the approval by a simDle majority of the referendum, and the
filing of the Local Law with the Secretary of State of New York.
BY ORDER OF THE TOWN BOARD
SOUTHOLD, SOUTHOLD, NEW YORK.
Dated: April 1~, 1998
OF THE TOWN OF
ELIZABETH A. NEVILLE
SOUTHOLD TOWN CLERK
PLEASE PUBLISH ON APRIL 16. 1998, AND FORWARD ONE
(1) AFFIDAVIT OF PUBLICATION TO ELIZABETH A. NEVILLE,
TOWN CLERK, TOWN HALL, P.O. BOX 1179, SOUTHOLD, NEW
YORK 11971.
ELIZABETH A. NEVILLE
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
OFFICE OF THE TOWN CLERK
TOWN OF SOUTHOLD
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Fax (516) 765-1823
Telephone (516) 765-1800
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION WAS DULY
ADOPTED BY THE SOUTHOLD TOWN BOARD AT A REGULAR MEETING
HELD ON APRIL lq. 1998:
WHEREAS. there has been presented to the Town Board of the Town of
Southold, on the lqth day of April , 1998, A LOCAL LAW, entitled "A
Local Law in Relation to Creating A Municipal Gas Utility in the Town of
Southold; now therefore, be it
RESOLVED that the Town Board of the Town of Southold hereby sets
8:10 P.M., Tuesday, April 28, 1998, Southold Town Hall, 53095 Main
Road, 5outhold, New York as the time and place for a public hearing
upon this Local Law, which reads as follows:
LOCAL LAW NO.
- 1998
A Local Law in Relation to the Creation of a
Municipal Cas Utility in the Town of Southold
BE IT ENACTED, the Town Board of the Town of Southold as follows:
~eo~o~ ~ Title, Pu_-~ose an~ Def~ni~ione. 1,1¢~), Enaot, men~.
Pursuant to Section 10 of 'c..he Home Rule Law, and section 360
of the General Municipal Law, the Tow~ of Southold, Co~tnty of
Suffolk and State of New York, hereby enacts this local law to
create the Town of Southold Municipal Gas Utility.
~,1¢B), Ef£eot~ve Date.
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 twenty (20) days after its approval by a simple majority of
the voters by mandatory referendum at an election or ~pecial
election to be held to approve this local law, pursuant to Seotion
360 of the General Municipal Law.
1.2. Intent.
WHEREAS the Town of Southold is a Town duly incorporated
under the laws of the State of New York, and~
WHEREAS the Town Board of the Town of Southold is duly
empowered pursuant to Section 360 of the General Municipal Law of
the State of New York to form a Municipal Gas Utility for the
Town, and~
WHEREAS it is essential for the well-being, livelihood and
safety of the residents and businesses of the Town, and of the
other consumers of gas power inthe Town, including the Town
itself, and of their families and guests, for the economic climate
of the Town, and'for the protection of private and public property
withinthe Town and the value of that property, that the supply
and distributi'on of gas to the residents, businesses and other
consumers of gas power in the Town, and the Town itself, be
provided in a reliable manner, and at a fair and reasonable cost,
and;
WHEREAS the Town Board has determined that the most reliable,
fair, and economical way for gas and gas supply to be provided to
the Town of Southold~ its residents, businesses end institutions,
is by the creation of the Town of Southold Municipal Gas Utility,
the Town Boerd of the Town of Southold hereby enacts this local
law for the intent and purpose of establishing a Municipal Gas
Utility pursuant to Section 360 of the General Municipal Law, and
all of the powers and duties thereunder.
Section 2.~u~_t-"~and Facilities, Maintenance
and Service. and SuDDly
The Town of 8outhold Municipal Gas Utility shall acquire the
necessary facilities, and either establish necessary functions for
or procure contracts for the maintenance, service and billing of
the gas energy system, and a supply of gas such as are necessary
for the creation of theSouthold Municipal Gas Utility.
The proposed method of constructing, leasing, purchasing, or
acquiring, the facilities necessary for the operation of the
8outhold Municipal Gas Utility, if any, together with both the
maximum and the estimated costs thereof, the method of furnishing
such service, end the method of obtaining gas supply shall be as
follows=
~.l.E~ui~m~0tand Faoilit~es.
A. The Town of Southold Municipal Gas Utility will obtain
access to or acquire the portion of the gas distribution system
within the Town, if any, that it is necessary for the Town to
operate the Municipal Gas Utility, by purchase, lease, or
condemnation from that which is currently owned by the Long Island
Lighting Corporation ("Lilco"), or by obtaining other facilities
as necessary. The municipal gas utility will only acquire,
construct or obtain that equipment and facilities, if any, which
are necessary to provide gas supply, and segregate and operate the
municipal gas utility and as may be needed to separate itself from
the Lilco system or to meter the gas supplied to or used by the
Town of Southold Municipal Gas Utility.
B. The maximum and estimated cost of the items set forth in
subparagraph (A) hereof, is expected to be not more than twenty-
five thousand dollars ($25,000).
C. The cost of the necessary facilities, if any, and
distribution and any other cost, that are necessary for the
implementation of the Town of Southold Municipal Gas Utility and
the entire costs of the implementation and operation of the Town
of Southold Municipal ~ae Utility will be paid in the first
instance from the revenues generated by the Town of Southold
Municipal Gas Utility only.
D. None of the costs of the implementation or operation of
the Town of Southold Municipal Gas Utility shall be included in or
have any affect on the Town general budget or the assessment of
Town property taxes.
2.2. Service and Maintenanoe,of~ui~ment.
Fac~litieso and Distr~bution System.
A. The Town Of Southold Municipal Gas Utility will obtain
service and maintenance for the equipment and infrastructure of
the Southold Municipal Gas Utility, and the other remaining gas
distribution and other equipment that is within the Town from
Lilco, or the existing gas utility for the time that the utility
is mandated to provid6 those services, or it remains in the best
interests of the Town 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 Townand the Municipal Gas Utility.
The Town of Southold Municipal Gas Utility will obtain
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 Town.
B. The Town will also consider and retain the ability
and power to create its own maintenance and service and billing
department, including ~he equipment, materials, and supplies
required for that department, in order to provide billing, service
and maintenance to the Town of Southold Municipal Gas Utility if
it to be in the best interests of the Town to do
the Town deems
SO.
2°3°
A.
Gas BuDDlv.
The Town of Southold Municipal Gas Utility will obtain
its supply of gas by contracting with another utility or supplier
to provide the supply of gas to the Municipal Gas Utility.
3.0. Mandatory Referendum.
This Local Law shall be subject to approval by a mandatory
referendum of the residents of the Town of Southold, pursuant to
and as set forth in Section 360 of the General Municipal Law of
the State of New York, the Election Law and
of New York
Town Law of the State
The Town of Southold 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 maiorit¥ of the referendum, and the
filing of the Local Law with the Secretary of State of New York.
Dated: April lq, 1998
Southold Town Clerk
April lq, 1998