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HomeMy WebLinkAboutTB Minutes 1967-09-11 169 SEPTEMBER 11 , 1967 The following are minutes of a Regular Meeting of the Town Board held in the Town Offices at 108 East Green Street , City of Ithaca at 4 : 00 P . M . D . S . T . on Monday , September 11 , 1967 . BOARD MEMBERS : PRESENT : Supervisor William B . Kerr ; Councilmen Joseph N . Mayer , Jr . , Harry N . Gordon and Harry U . Baker . ABSENT : Councilman Andrew W . McElwee ALSO PRESENT : Superintendent of Highways Marion Morey , Lozier Engineer James Dunlap , Attorney James Buyoucos , Journal Reporter • Elizabeth Rogers , Clerk Myrtie Hewitt . Arrived. for part of the meeting Chairman of Planning Board Noel Desch , Attorney Manley Thaler , Mr . James Belasco , two residents from West Hill area . RESOLUTION 104 - WARRANT VOTED resolved to approve warrants dated September 11 , 1967 in the following amounts : General Fund - - - - - - - - - - $ 445427 . 72 Highway Fund - - - - - - - - - - 4 , 522082 Northeast Sewer District - - - - - - - - - - 795 . 96 Slaterville Rd . Area Sewer District - - - - 875897 . 41 RESOLUTION 105 - MINUTES VOTED resolved to approve minutes dated August 7 , 19670 RESOLUTION 106 - APPOINTMENT - DOG ENUMERATOR VOTED resolved to appoint Mrs . Fran Earle , 1318 Hanshaw Road as dog enumerator for the Town of Ithaca for 1967 , the enumer - ating to be done in the month of October . RESOLUTION 107 - BUDGET MEETING AND REGULAR COMBINED RESOLVED to hold preliminary budget meeting and regular meeting as a combined meeting at 4 ; 00 P . M . Thursday , October 5 , 1967 to conform to Town Law , RESOLUTION 108 - RENEWAL BOND ANTICIPATION NOTE • Northeast Sewer Dis ric RESOLVED that bond anticipation notes heretofore executed by the Town of Ithaca , in the amount of $ 500 , 000 pursuant to provisions of resolution authorizing construction of a Sanitary Sewer System to serve the Northeast Sewer District , Tompkins County , shall be renewed at 32/ interest and the Supervisor is hereby authorized to execute such renewal and such other instruments and take such other steps as may be legally requested to effect such renewal . Duly adopted by the Town Board of the Town of Ithaca on the 11th day of September 1967 . 9 /11 /67 170 RESOLUTION 109 - BOND RESOLUTION - EXTENSION NO . 1 TO SOUTH HILL SEWER DISTRICT Upon motion made by Councilman Joseph N . Mayer , Jr . and seconded by Supervisor William B . Kerr the following resolution was duly passed : Bond Resolution dated September 11 , 1967 A Resolution authorizing the construction of a sewer system to serve Extension No . 1 to the South Hill Sewer District in the Town of Ithaca , New York , at a maximum estimated cost of $ 106 , 000 and authorizing the issuance of $ 106 , 000 serial bonds of said Town to pay the cost thereof . RESOLUTION 110 - BOND RESOLUTION - EXTENSION N0 . 2 TO SOUTH HILL SEWER D R' ' 7. Upon motion made by Councilman Joseph N . Mayer , Jr . and seconded by Supervisor William B . Kerr the following resolution was duly passed : Bond Resolution dated September 11 , 1967 A Resolution authorizing the construction of a sewer system to serve Extension No . 2 to the South Hill Sewer District in the Town of Ithaca , New York , at a maximum estimated cost of $ 130 , 000 , and authorizing the issuance of $ 130 , 000 serial bnnds of said Town to pay the cost thereof . RESOLUTION 111 - BOND RESOLUTION - EAST ITHACA WATER DISTRICT Upon motion made by Councilman Baker and seconded by Council - man Mayer the following resolution was duly passed : Bond Resolution dated September 11 , 1967 A Resolution authorizing the construction of lateral water mains in various streets in and for the East Ithaca Water District in the Town of Ithaca , Tompkins County , , New York , at a total estimated cost of $ 44 , 000 and authorizing the issuance of $44 , 000 serial bonds of said Town to pay the cost thereof . RESOLUTION 112 - AWARD BIDS - - SNYDER HILL WATER DISTRICT WHEREAS , on September 8 , 1967 , bids were received for the construction of Contract " A " - Watermains and Appurtenances , and Pumping Facilities , and Contract " B " - 500 , 000 Gallon Water Storage Tank for the Snyder Hill Road Water District ; WHEREAS , the Town Board has carefully considered the Engineers ' Report on these bids , and ; WHEREAS , the Town Board has further considered the bids received and the type of construction offered ; NOW , THEREFORE BE IT RESOLVED : that the best interests of the Snyder Hill Road Water District will be served by using cement lined cast iron pipe in Contract " A " ; 9 /11 /67 AND BE IT RESOLVED , that the Contract for construction of Contract A -Watermains and Appurtenances , and Pumping Facilities , using cement lined cast iron pipe watermains , be awarded to the lowest responsible bidder , Compagni Construction Com an , Cortland , New York , at an estimated contract sum of 12 , 290 . 00 ; AND BE IT RESOLVED , that the contract for construction of Contract B- 500 , 000 Gallon Water Storage Tank , be awarded to the lowest responsible bidder , Pittsburgh- DesMoines Steel Company , Warren , Pennsylvania , at an estimated contract sum of 33 , 344 , 00 . RESOLUTION CARRIED . RESOLUTION 113 - JUNIPER DRIVE ACCEPTED AS TOWN ROAD Upon the recommendation of Town Highway Superintendent Marion Morey the Board voted to accept Juniper Drive as a Town road , deeded from Savey Construction Company , Inc . of Northview Road , Ithaca , New York . The deed to be recorded in the County Clerk ' s Office , RESOLUTION 114 - HOMESTEAD CIRCLE ACCEPTED AS TOWN 49amkO ILO Upon the recommendation of Town Highway Superintendent Marion Morey the Board voted to accept Homestead Circle as a Town Road , deeded from Eastwood of Ithaca , Inc . The deed to be recorded in the County Clerk ' s Office , RESOLUTION 115 - LOWER SPEED - WEST HILL AREA Bundy , Hayts , DuBoice & Trumans - burg Roads . Resolved to appeal to the New York State Traffic Commission to reduce the maximum speed limit in the areas of Bundy , DuBoice , Hayts and Trumansburg Roads , RESOLUTION 116 - BID SPECIFICATIONS - HIGHWAY DEPARTMENT TRU K Resolved to authorize Superintendent of Highways Marion Morey to prepare bid specifications for a new F . W . D . truck for the highway department at an estimated cost of $ 20 , 0000 RESOLUTION 117 - FENCING- Northeast Walkway • Resolved to have the highway department install fencing along property line of Wayne Abair , 306 Tareyton Drive to keep children from walking on lawn along the northeast walkway . RESOLUTION 118 - PAINTING -WATER TANKS Resolved to negotiate with the City in contracting for experienced painters to do the painting of the water tanks for the Town on a rotation basis . In this way tanks would be taken proper care of as painting was deemed necessary by the professional painters . 9 /11/67 172 Drainage Problems in Northeast Area Mr . Dunlap from Lozier Engineers submitted a preliminary study and estimates for the Northeast area storm water drainage . The alternates discussed in -) taking care of the excessive runoff of storm water were storm sewers and/or drainage ditches . 1 . The installation of storm sewers on Hanshaw Road from Salem Drive to a point west of Warren Road where a south branch of Renwick Brook progresses cross - lot from Hanshaw Road , 2 . The installation of storm sewers and construction of drainage ditches from Salem Drive at Hanshaw Road and thence , southerly and southeasterly thru lands of the State of New York and Cornell University to a point of discharge into a drain - age course of Forest Home Creek . The estimated cost of alternate one is $ 110 , 000 and the estimated cost of alternate two is $ 170 , 000 , however if the open drainage ditch is piped , the estimated cost is $ 216 , 000 . The high cost to alternate two is contributed to the need for large diameter pipe and with anticipated ground water problems in crossing the golf course fairway . The consenus of the Board was that alternate two would not be economically feasible . A profile map was also presented showing the storm water run off - emptying into concentrated ponds whereby seepage would be engineered to alleviate excess flow at any one time . Additional study is to be made and estimates submitted on the pond alternative . Meeting adjourned 5 : 30 P . M . Myrtle . Hewitt Town Clerk 9 / 11 /67 OCTOBER 5 , 1967 The following are minutes of a combined Preliminary Budget meeting and a Regular Meeting of the Town Board held in the Town Offices at 108 East Green Street , City of Ithaca t 4 : 00 P . M . D . S . T . on Thursday , October 5 , 19679 BOARD MEMBERS PRESENT . Supervisor William B . Kerr , Councilmen Joseph N . Mayer , Jr . , Harry U . Baker and Andrew W . McElwee , ABSENT : Councilman Harry N . Gordon ALSO PRESENT : Walter Schwan , Hugh Travis , Stuart Lewis , Frank Egan , Mrs . Ross , Noel Desch , Attorney James V . Buyoucos , Lozier Engineer James Dunlap , Journal Reporter Roger Langley , Clerk Myrtie Hewitt , RESOLUTION 119 - WARRANT VOTED resolved to approve warrants in the following amounts dated October 5 , 1967 : General Fund - - - - - - - $ 325315 . 68 Highway Fund - - - - - - - 6 , 801 . 65 Slaterville Road Sewer Dist . - - - 86 , 747 , 04 RESOLUTION 120 - MINUTES VOTED resolved to approve Town Board minutes dated September 11 , 1967 . 10/5/67 1 '13 RESOLUTION 121 - BOND RESOLUTION - EXTENSIONS 1 and 2 SECOND SO H H LL WATER DISTRICT Upon motion made by Supervisor William B . Kerr , seconded by Councilman McElwee , the following resolution was duly voted and passed : Bond Resolution Dated October 5 , 1967 A Resolution authorizing the construction of a water distribution system in and for Extension N0 . 1 to the Second South Hill Water District ( 1966 ) in the Town of Ithaca , New York , at a maximum estimated cost of $ 58 , 000 , and authorizing the issuance of $ 58 , 000 serial bonds of said Town to pay the cost thereof . • Bond Resolution Dated October 5 , 1967 A Resolution authorizing the construction of a water distribution system in and for Extension No . 2 of the Second South Hill Water District ( 1966 ) in the Town of Ithaca , New Ybrk , at a maximum estimated cost of $ 13 , 000 and authorizing the issuance of $ 13 , 000 serial bonds of said Town to pay the cost thereof . RESOLUTION 122 - YOUTH CENTER CONTRACT VOTED resolved that the application for the . New York State Youth Bureau Project for 1968 be approved , and that Supervisor Kerr be authorized to sign an agreement witi the City of Ithaca for the operation of the Ithaca Youth Bureau for the calendar year 1968 . RESOLUTION 123 - APPOINTMENT - Phoebe Bartholomew VOTED resolved to appoint Mrs . Phoebe Bartholomew to fill the vacancy left by Mrs . Jane % Ames at an annual salary of $4680 . RESOLUTION 124 - APPOINTMENT - Deputy Clerk VOTED resolved that Mrs . Bartholomew be appointed Deputy Clerk and also be authorized to issue water and sewer permits for the Town of Ithaca effective immediately . RESOLUTION 125 - PUBLIC HEARINGS ON SPECIAL DISTRICT ASSESSMENT ROLLS VOTED resolved that the Town of Ithaca has prepared assessment rolls of the parcels of land included in the following Special Improvement Districts ; • South Hill Extension Water District East State Street Extension Water District Northeast Water District Hanshaw Road Sewer District Renwick Heights Sewer District Northeast Sewer • District Ellis Hollow Road Sewer District and has apportioned and assessed upon such parcels of land in proportion to the amount of benefits the improvements shall confer upon the same , the costs chargeable to said districts in connection with the construction of public water and sanitary 10/5/67 174 sewer systems therein which are payable in the year 1968 , and therefore BE IT RESOLVED that the Town Board will hold a public hearing thereon at the Town Offices , 108 E . Green Street on the 9th day of November , 1967 at 4 : 00 ; 4 : 05 ; 4 : 10 ; 4 : 15 ; 4 : 20 ; 4 : 25 ; and 4 : 30 P . M . in the order listed above , at which time it will consider any objections which may be made to said assessment rolls and apportionments . RESOLUTION 126 - HEARINGS ON FIRE PROTECTION CONTRACTS VOTED resolved that a public hearing be held by the Town • Board at 4 : 45 d ' clock P . M . , November 9 , 1967 in the Town of Ithaca Offices , 108 E . Green Street , City of Ithaca , for the purposes of hearing all persons interested in the renewal of . • contract with the City of Ithaca for fire protection for • one year period on the basis of $ 19 , 886 . 00 for the year 1968 , for fire protection in the Town of Ithaca , excepting the following areas , to wit : a ) the Village of Cayuga Heights b ) the area comprising all the territory lying between the east boundary of the Village of Cayuga Heights and the east boundary of the Town of Ithaca c ) the Hamlet of Forest Home exclusive of the structure housing the Cornell University Filtration Plant . BE IT FURTHER RESOLVED that a public hearing be held by the Town Board at 5 : 00 P . M . , November 9 , 1967 in the Town Offices , 108 E . Green Street , City of Ithaca for the purpose of hear - ing all persons interested in a contract between the Village of Cayuga Heights and the - Town of Ithaca whereby the Village agrees that its Fire Department will give fire protection for the year 1968 in the Hamlet of Forest Home and in that portion of the Town to the north of Forest Home and between the east boundary of Cayuga Heights and the east boundary of the Town of Ithaca . RESOLUTION 127 - PRELIMINARY BUDGET HEARING Supervisor Kerr proposed one change in the budget as consider - ed by the Town Board at the October 5th meeting . He suggested that an additional $ 120 be added to Town Hall and Offices to cover the charge for a second parking space rented from the City of Ithaca for use by Town employees . RESOLVED that the Town Board does hereby prepare and approve as a Preliminary Budget of this town for the fiscal year beginning January 1 , 1968 , the itemized statement of esti - mated revenues and expenditures as prepared ; a copy of which • is made a part of these minutes and BE IT FURTHER RESOLVED , that the Board shall meet at 4 : 35 P . M on Thursday , November 9., 1967 at the Town Offices , 108 E . Green Street , City of Ithaca , for the purpose of hearing any person for or against any item or items there in and 10/5/67 17 BE IT FURTHER RESOLVED that the Town Clerk shall give notice of such public hearing in the manner provided in Sec . 113 of the Town Law , and that such notice shall be posted and shall be published in The Ithaca Journal at least twice . RESOLUTION 128 -MAILBOXES IN THE TOWN VOTED resolved that the Town of Ithaca may have the authority to designate the location of mailboxes within its rights - of - way when the problems of clearing snow , drainage , safety and utilities are involved . RESOLUTION 129 - DATE SET FOR NOVEMBER BOARD MEETING VOTED resolved that to conform to Town Law the Town Board will meet Thursday , November 9 , 1967 for a regular and budget meeting combined . RESOLUTION 130 - BID AWARD - - HIGHWAY DEPAR04ENT TRUCK Supervisor Kerr offered the following resolution and moved its adoption : WHEREAS , the Town Superintendent of Highways , did on October 5 , 1967 , recommend to the Board the purchase of an F . W . D . truck pursuant to the provisions of Section 142 of the Highway Law , therefore BE IT RESOLVED that the Town Superintendent of Highways , Marion Morey is hereby authorized to purchase in accordance with the provisions of Article 5 -A of the General Municipal Law the following : One Four Wheel Drive Truck and Snow Plow Equipment from the Charles J . Blackwell , Inc . Horseheads , New York who submitted a bid of $ 2 + , 687 . 00 with trade - in allowance for a 1958 Ford Truck with snow equipment of $ 3 , 000 , making net delivered price of $ 21 , 687 . 00 . RESOLUTION 131 - AGREEMENT - EASTERN HEIGHTS INC . AND TOWN OF ITHACA VOTED resolved that the Town Board of the Town of Ithaca , acting for and in behalf of the Snyder Hill Road Water District , authorizes Supervisor Kerr to sign an agreement between the Town of Ithaca and. Eastern Heights , Inc . whereby Eastern Heights , Inc . guarantees payment of assessments chargeable to real property owned by their cooperation in the Snyder Hill Road Water District each year until a total of 90 residences are constructed and placed on the assessment rolls . Council - man McElwee made the motion , seconded by Councilman Mayer and an all " aye " vote carried . RESOLUTION 132 - LETTER OF CREDIT - EASTERN HEIGHTS FIRST NATIONAL BA OWN OF ITHACA RESOLVED that a Letter of Credit covering a 5 - year. period from the First National Bank and Trust Company of Ithaca should be forthcoming authorizing Supervisor Kerr to draw on said bank any sum or sums of money not exceeding $ 60 , 000 from the account of Eastern Heights , Inc . , said monies to be used only 10/5/67 176 . up to the amount and only in payment of the annual charges and assessments assessed each year against Eastern Heights , Inc . in connection with the Snyder Hill Road Water District in the Town of Ithaca . RESOLUTION 133 - ST . CATHERINE CIRCLE RESOLVED that the street running east and west from Blackstone Avenue is to be known as St . Catherine Circle , RESOLUTION 134 - APPLY TO STATE FOR AID - PARK DEVELOPMENT RESOLVED to authorize Supervisor Kerr to sign necessary papers applying for state and federal aid available to town interested in developing park and recreational areas . Noel Desch - Review of South Hill Future Development Mr . Desch , Chairman of the Planning Board gave a detailed accounting of proposed projects which involve the develop - ment of the Town , among which are : Aurora Street Hill - widening and re - aligning Stone Quarry Road ; Forest Home Bypass ; Pine Tree Road - Ellis Hollow Road intersection ; East King Road - Burns Road - Coddington Road intersection ; widening of Pine Tree Road. including storm sewers . Water Problems - Winthrop Drive Area Stuart Lewis , Frank Egan and Mrs . Ross from the Winthrop Drive area were present at the meeting to give an account - ing of the drainage problems from recent storms confronting them , Meeting adjourned at 7 : 30 P . M . Myrtie M . Hewitt Town Clerk •. 1 / J .tea • •. . . _ r1 . . . _ _ . . . ._ . _ . _ _�_ _ .t _ .r _. _ . _-� . r f ' 1 LETTER OF CREDIT s TO THE TOWN BOARD OF THE TOWN OF ITHACA : First National Bank and Trust Company of Ithaca , Ithaca , New York , hereby authorizes the Supervisor of the Town of Ithaca , County of Tompkins , New York , to draw on said bank at its main office at 202 East State Street , Ithaca , New York , any sum or sums of money not exceeding Sixty Thousand Dollats ( $ 60 , 000 . 00) total , for the account of EASTERN HEIGHTS , INC . , its successors and assigns, said monies to be used only up to the amount and only in payment of the annual charges and assessments assessed each year against EASTERN HEIGHTS , INC . , its successors or � assigns , in connection with the Snyder Hill Road Water District in the Town of Ithaca , the payment of which EASTERN HEIGHTS , • INC . , ' has guaranteed to the Town of Ithaca , pursuant to an agreement between the said Town and EASTERN HEIGHTS , INC . , dated Of , 1967 . It being understXe sixty thousand dollar Letter of Credit shall be rely proportionately with the liability of EASTERN . , in accordance with the terms of the . agreement betwHEIGHTS , INC . , and the Town of Ithaca da ted the 19670 This Letter of Credit shall cease and become null and void when the agreement of guarantee of EASTERN HEIGHTS , INC . to make the aforesaid payments has terminated under the provisions of said agreement . Notwithstanding anything to the contrary hereinbefore contained , this Letter of Credit shall be for a term of five ( S ) years only , commencing on the first day of January following the 1 t : . first year in which assessments are levied as provided in paragraph 1 of said agreement which commencement date in no event shall be later than January 1 , 1969 . This Letter of Credit i _ I J at the expiration of said five -yeas period , may be renewed by the Bank at its sole discretion for an additional period of 4 • five ( 5 ) years upon a review of the facts . ` The Ball hereby agrees with the drawers , endorsers and bona fide holders of its drafts , drawn and negotiated in compliance with the terms of this credit , that said drafts shall . 1 be honored on presentation at the counter of the above mentioned drawee Bank . This Letter of Credit is irrevocable during the said five -year period as described above unless the said agreement between the Town of Ithaca and EASTERN HEIGHTS , INC . , is sooner terminated in accordance with the provisions therein contained , in which case this Letter of Credit shall be null and void , DATED. 6 , lg6 7 FIRST NATIONAL BANK AND TRUST COMPANY OF ITHACA By Carlton D . McGary Vice President STATE OF NEW • YORK ) COUNTY OF TOMPKINS ) On this j day of tom ('- , Nineteen Hundred and Sixty- seven , before me personally came , Carlton D : McGary , to me personally i known , who , being by me , duly sworn , - didAepose and say : that he resides at 312 Winthrop Drive , Town of Ithaca , State of New York , that he is the Vice President of First National Bank and Trust Company of Ithaca , Ithaca , New York ,, the corporation described in and which executed the above instrument ; that he knows the seal of said . corporation ; that it was ao affixed by order of the Board of Directors of said corporation ; and . that he signed his name thereto by like order . i No to rI � SVL,V'IA otary Public, Sta.tc of New YorI4 Not 55 -2499675 lur.lifiell �iresl �M�ti h� g30cowlt , enn 1 :x ! Rr AGREEMENT THIS AGREEMENT made the 5th day of October , 1967 , by and between the TOWN OF ITHACA , Tompkins County , New York , a municipal corporation with its office at East Green Street , Ithaca , New York , and EASTERN HEIGHTS , INC . of Ithaca , New York , with a mailing address of P . 0 ; Box 63 , Ithaca , New York , WITNESSETH : WHEREAS , by order of the Town Board dated August 7 , 19671, the Snyder Hill Road Water District in said Town was established to include real property more particularly described in said order , and WHEREAS , the ratio of the present assessed valuation within the boundary of the District to the estimated maximum cost of the improvements contemplated to be constructed therein makes it economically unfeasible to proceed with the construction of said District , and WHEREAS , Eastern Heights , Inc . owns a major portion of the area within said District which area is now assessed as unimproved property , the land in which area is the same property conveyed to Eastern Heights , Inc . by Margaret D . Backner , by deed dated May 29 , 1967 , recorded in Liber 469 of Deeds at page 285 and by Frank E . Backner , by deed dated May 29 , 1967 , recorded in Liber 469 of Deeds at page 287 , hereinafter also referred to as Eastern Heights unimproved - property , and said corporation intends to develop said property , and said Eastern Heights , Inc . contemplates that about 50 residences will have been constructed on separate lots and sold prior to January 1 , 1969 and about 160 - residences prior to January 1 , 1971 . WHEREAS , in order to insure that the cost of said improvement district will not constitute an undue burden upon the property within ouch District in accordance with the provisions of Section 194 -A of the Town Law of the State of New York , the Town Board has required 1 ^ 2 � as a condition precedent to its entering into construction contracts for the installation of said water district improvements that Eastern Heights , Inc . guarantee the payment of its portion , as hereinafter defined , of the total charges which may be lawfully assessed against the said property of Eastern Heights , Inc . by the Town Board throughout the period of the contemplated bond issue of forty ( 40 ) years , for district charges including , but not limited to , reduction of debt , operation and maintenance charges . WHEREAS , it . is the intention of the Town Board to approve the execution of the contracts for the construction of said improvements upon receipt of this agreement and the letter of credit herein referred to , NOW , . THEREFORE , it is agreed as follows : 1 . Eastern Heights , Inc . hereby guarantees the payment of the total assessments for debt service , operation , maintenance and other charges which shall be chargeable to the said real property in said District now owned by said corporation and which is now estimated to consist of 50 . 5 assessable units according to the present proposed method of assessing the aforesaid costs in said District . Said guarantee shall be for a period of forty ( 40 ) years commencing with the first year in which such assessments are levied in connection with such improvements . This guarantee may be terminated as hereinafter provided in paragraph 4 herein. or by action of the Town Board . 2 . ` The charge per unit for debt service , operation , maintenance and other charges shall be such amount as the Town Board of the Town of Ithaca shall annually fix and determine in accordance with the benefit conferred by the improvements , the applicable provisions of the Town Law of the State of New York and of the ordinances of the Town of Ithaca , it being understood that the preliminary estimate of the per unit cost for the first year of payment is Two Hundred Thirteen Dollars ( $ 213 . 00 ) . - 3 - 3 . The total obligation which Eastern Heights , Inc . guar - antees as forth in paragraph 1 herein shall be reduced annually by the number of lots upon which residences are constructed and each of which said lots has been placed upon the assessment rolls of the Town of Ithaca for a lot and completed improvement in the name of a third person less other amounts received by the District Less credits caused by others coming into the District by extension of boundaries . 4 . To insure the performance of the obligation of Eastern Heights , Inc . as set forth herein and to further guarantee payment as agreed , Eastern Heights , Inc . shall file an irrevocable letter of credit issued by a commercial bank or other lending institution on such terms and . conditions as shall be satisfactory to the Town Board in an amount equal to the annual unit charge as determined by the Town Board multiplied by the number of units specified for Eastern Heights , Inc . each year , to amortize the maximum cost of the District which is now estimated to be Two Hundred Thousand Dollars ( $ 2009000 .00 ) . It is agreed , however , that at such time as ninety (90 ) lots upon which residences are constructed and such lots have been placed upon the assessment rolls of the Town of Ithaca in the names of third persons , this agreement of guarantee shall cease and become null and void and any obligation or liability of Eastern Heights , Inc . under said guarantee shall terminate unless . this guarantee shall have been terminated sooner by action of the Town Board . 5 . Such letter of credit shall authorize the Town Board of the Town of Ithaca to draw on such commercial bank , in each year , for the account of Eastern Heights , Inc . up to the amount of the annual charge assessed each year against Eastern Heights , Inc . in the event that the annual assessment for debt service , operation , maintenance and other charges or any portion thereof remains unpaid i } for thirty ( 30) days after the date upon which such assessment became a lien and notice thereof was mailed to Eastern Heights , Inc . 1 1 1� ' l .. �4. r Such better of credit shall be furnished by the First National Bank and Trust Company of Ithaca , New York , or other lending institution and shall be for a term of five ( 5 ) years , which term , upon review of the facts , may be renewed -by the bank at that time for an additional period of five ( 5 ) years , and if said First National Bank and Trust Company fails to renew said letter of credit , a similar letter of credit , or other security satisfactory to the} Town Board shall be obtained by Eastern Heights , Inc . 6 . This agreement shall be binding upon Eastern Heights , Inc . , its successors and assigns , and it shall also run with the said land now owned by Eastern Heights , Inc . and shall be binding upon any successor or subsequent owners of the said lands o € Eastern Heights , Inc , included in the said District and described in the aforesaid deeds from Frank Backner and Margaret Backner to la Eastern Heights , Inc . , except that it shall not run with the land as to such portions of said Eastern Heights , Inc . lands which have been , from time to time , conveyed as a separate lot to a third person or persons intending to occupy the same and upon which a residence is constructed and such lot has been placed upon the assessment roll of the Town of Ithaca as a lot and completed improvement . Notwithstanding the fact that Eastern Heights , Inc . may transfer any part or all of its said real property above described , the liability and guarantee of Eastern Heights , Inc . under this agreement shall nevertheless continue with respect to any of the charges or payments hereinabove referred to which are chargeable against the said lands now owned by Eastern Heights , Inc . except ra for such lots transferred from time to time to third persons intending to occupy the same and on which residences have been constructed and which lots have been placed on the assessment rolls of the Town of Ithaca , in the name of a third person or persons as a lot and completed improvement in the name of a third person , unless the Town Board accepts the transferee in place of Eastern Heights , r5 - Inc . for a part or all of the then existing liability of Eastern Heights , Inc . under the terms of this agreement . IN WITNESS WHEREOF , the parties have hereunto set their hands and seals in duplicate the day and year first above written . TOWN BOARD OF THE TOWN OF ITHACA Acting for and in behalf of the µ Snyder Hill Road Water District By Supervisor EASTERN HEIGHTS , INC . By ice - ident STATE OF NEW YORK) SS , TOMPKINS COUNTY ) On this 5th day of October , 1967 , before me personally came NORMAN JORDAN to me known , who being by me duly sworn , did depose - and say that he resides at 5 Highland Park , Ithaca , New York ; that he is a. Vice -President of Eastern Heights , Inc . , the corporation described in and which executed the foregoing instrument ; that he knows the seal of said corporation ; that the seal affixed to said instrument is such corporate seal ; that it was so affixed by order of the Board of Directors of said corporation , and that he signed his name thereto by like order , n rr� A otary F b ic ' };y f ii a . l-,ublic, State o. idea No, 55 x31035 �tial?f3p� ;r TomPil" ` r;oaari�sit�?� ��ires STATE OF NEW YORK ) SS . TOMPKINS COUNTY ) On the 5th day of October , 1967 , before me personally came WILLIAM KERR , to me known , who , being by me duly sworn , did depose _ 77 . and say that he resides at 512 Cayuga Heights Road , Ithaca , New York ; that he is the Supervisor of the Town of Ithaca , Tompkins County , New ` York , the municipal corporation described in and which executed the foregoing instrument ; that he knows the seal of said corporation ; that the seal affixed to said instrument is such Town seal ; that it was so affixed by order of the Town Board and that he signed his name thereto by like order . Notary Public CAROL Co REEVES Notary Public, State of New York No. 55-3231350 Qualified in Tompkins County Term Expires March 30, 196 1 .I i 't 1 t