Agreement for Gasoline Storage and Pumping Access (2015 LGAA)

Village of Laurel Hollow (Winner)
County: Nassau County
Population: Less than 10,000
Village Hall: (516) 692-8826

In the aftermath of Superstorm Sandy, the Village had difficulties obtaining regular gasoline for Village vehicles. An agreement was already in place with the Town of Oyster Bay providing the Village with access to Town fueling pumps; however the pumps were not located in close proximity to the Village. There are no commercial gasoline pumping facilities located within the Village or within close proximity. The Village owned an underground gasoline storage tank and fuel pump at our Police Booth, which was unused after the Village entered into an agreement with the Village of Oyster Bay Cove to provide police protection services in June 2012. Although the tank was unused, there remained a recurring expense associated with insuring and testing it.

In October 2013, the Village entered into a license agreement with the Cold Spring Harbor Laboratory, a not-for-profit scientific research and educational corporation, to operate the Village’s unused, underground gasoline storage tank and fuel pump. Pursuant to the agreement, the laboratory reimburses the Village for the cost of all insurance, maintenance and testing, and pays a monthly administration fee of $275. In addition, the Village can obtain fuel at the facility in emergencies, as defined by the Village.

The Village was paying for insurance, testing and maintenance while the facility was not in use. The Village is now reimbursed for those costs -- approximately $1,000 per year. A supplement to the agreement allowed the laboratory to make improvements to the facility, including a fuel management system and leak detection sensors and alarms, at no cost to the Village. In addition, the Village receives an additional $3,300 in administrative fees for each year of the agreement.

This agreement will continue to provide revenue to the Village, while ensuring that the facility remains in good working order, in the event the Village needs to take over its use in the future. In addition, the Village will now be able to obtain fuel in emergencies without having to leave the Village. Any municipality with unused facilities may be able to find similar situations wherein facilities can be used and maintained by other entities.