§ A151-1. Operation and maintenance., Chapter A151. Water Lease Agreement, Appendix, Code of Ordinances, Chittenango

Beginning when the connection between the village water system and the Authority's main is complete and the water is turned on or June 1, 1975, whichever date is sooner, the village hereby leases to the Authority for the term hereinafter specified the entire village water system (except the present wells and pump house owned by the village) located or to be located in the village and in the Town of Sullivan outside of the village, including water storage tanks, hydrants, distribution mains, valves, meters and appurtenances, together with any replacements, additions, betterments and improvements which may hereafter be furnished and installed in or by the village during the term of this lease agreement.

The Authority agrees to operate, maintain and repair at its own cost and expense the entire village water system and to sell water and water service to the customers of the village water system in accordance with the customer rules of the Authority as they may be from time to time amended during the term of this lease agreement; provided, however, that the rates to be charged for water shall be substantially the same as the rates set forth in attached hereto and made a part hereof, subject only to such increases as deemed necessary by the Authority to reflect similar increases in the future in rates charged by the Authority in Onondaga County until December 31, 1999, and then starting on January 1, 2000, shall be substantially the same as the then current scheduled Authority rates for water within Onondaga County, plus $0.05 per thousand gallons. The Onondaga County Water Authority hereby agrees as part of the lease between the village and the Authority, and notwithstanding any other provisions of the lease, to assume the obligations of the village to John J. Benson, Sr., and John J. Benson, Jr., under the terms of the agreement between the village and the Bensons for the site of the water storage tank dated October 23, 1964.

The Authority agrees to pay to the village as rental payments beginning June 1, 1975, and in each succeeding year, an amount equal to the debt service, including principal and interest as it becomes due, until all of the water debt of the village presently outstanding shall have been paid. Such moneys may be paid by the Authority to the village or may be paid directly to the duly authorized paying agent or agents of the village bonds. It is understood and the village represents that as of the date of this lease, first, there is outstanding one issue of bonds with $13,000 in unpaid principal which finally matures in 1981; second, there is outstanding another issue of bonds with $258,000 in unpaid principal which finally matures in 1995; and, third, there is outstanding $100,000 in temporary notes which will be funded into a serial issue which will be sold in 1974 or 1975 and will finally mature in not less than 25 years nor more than 30 years.