2006 New York Code - Agreement Among The Water Board, The City And The Authority For The Provision Of Water Projects.

 
    §  1045-i. Agreement among the water board, the city and the authority
  for the provision of water projects. 1. The authority, the  water  board
  and  the  city, acting either by the mayor alone or by resolution of the
  board of estimate of the city, may enter into agreements for the purpose
  of providing for the construction and financing of a water project.
    2. Any such agreements (i) shall describe  in  sufficient  detail  for
  reasonable identification the particular water project to be financed in
  whole  or in part by the authority, (ii) shall describe the plan for the
  financing of the  cost  of  the  construction  of  such  water  project,
  including  the amount, if any, to be provided by the water board and the
  source or sources thereof, (iii) shall set forth the method by which and
  by whom and the terms and conditions upon which moneys provided  by  the
  authority shall be disbursed, (iv) may require, in the discretion of the
  authority, the payment to the authority of the proceeds of any state and
  federal  grants  available to the water board, (v) shall provide for the
  establishment of user fees, rates,  rents  and  other  charges  and  the
  charging  and  collection  thereof by the water board for the use of, or
  services furnished, rendered or made available by such system such as to
  provide that such board receive revenues at least  sufficient,  together
  with  other  revenues  of the board, if any, to meet the requirements of
  subdivision one of section one  thousand  forty-five-j  of  this  title,
  provided  that  revenues  received by such board shall be deposited in a
  special fund established pursuant to this title and  disbursed  to,  and
  upon  certification of, the authority, (vi) may provide for the transfer
  by the city  to  the  water  board  pursuant  to  section  one  thousand
  forty-five-h  of this title of ownership of the sewerage system or water
  system, or both, as the case may be, of which such project will  form  a
  part  by  the  city,  (vii)  shall  provide  for  the  construction  and
  completion of such water project by the  city  and  for  the  operation,
  maintenance  and  repair  thereof as an integrated part of the system of
  which such water project  forms  a  part,  subject  to  such  terms  and
  conditions, not inconsistent with this title, which may be in the public
  interest  and  necessary  or desirable properly and adequately to secure
  the holders of bonds of the authority, provided, however, all  contracts
  for  public work and all purchase contracts shall be awarded by the city
  as provided by law for the award of such contracts by the city and  that
  all  contracts  for  construction  shall  be  let in accordance with the
  provisions of state law pertaining to prevailing wages, labor  standards
  and  working  hours.  When the entire cost of constructing a building as
  part of any water project shall exceed fifty thousand dollars, the  city
  shall   prepare   separate   specifications   for  the  following  three
  subdivisions of the work to be performed: (a) plumbing and gas  fitting;
  (b)  steam  heating, hot water heating, ventilating and air conditioning
  apparatus; and (c) electric wiring and standard  illuminating  fixtures,
  (viii)  shall  provide  for  the  discontinuance or disconnection of the
  supply of water or the provision of sewerage service, or  both,  as  the
  case  may  be,  for  non-payment  of fees, rates, rents or other charges
  therefor imposed by the water board,  provided  such  discontinuance  or
  disconnection  of  any  supply  of  water  or  the provision of sewerage
  service, or both, as the case may be, shall not be carried out except in
  the  manner  and  upon  the  notice  as  is  required  of  a  waterworks
  corporation  pursuant  to  subdivisions  three-a, three-b and three-c of
  section eighty-nine-b and section one  hundred  sixteen  of  the  public
  service  law,  and  (ix)  in  the  discretion  of the authority, require
  reports concerning the project from the water board to the authority and
  the city.
    3. If the  city  executes  an  agreement  pursuant  to  this  section,
  relating  to  the financing of water projects by revenue bonds, it shall
  have and shall be deemed to have annulled its power to levy  user  fees,
  rents and other charges on participating properties or customers for the
  cost  of  financing,  operating  and  maintaining such water or sewerage
  system  or  both,  as  the case may be, under its jurisdiction until all
  bonds of the authority shall have been paid or discharged in  accordance
  with  the agreement and the resolution of the authority authorizing such
  bonds. If the city has outstanding general obligation bonds  issued  for
  acquiring  or  constructing  water  or  sewerage facilities, whether the
  bonds are payable from revenues, special assessments, or taxes,  it  may
  authorize  the  authority pursuant to the agreement to issue its revenue
  bonds under this title for  the  purpose  of  retiring  the  outstanding
  bonds.
    4.  No such agreement shall be executed until the city and water board
  shall have held a public hearing at which users of the water  system  or
  the sewerage system or the water system and sewerage system, as the case
  may  be,  shall have had opportunity to be heard concerning the proposed
  provisions thereof. Notice of such hearing shall be published  at  least
  thirty  days in advance in the state register, in the official newspaper
  or newspapers of the city, and in at  least  one  newspaper  of  general
  circulation  in each of the areas served by the water system or sewerage
  system, as the case may be.
    5. Such  agreement  shall  be  effective  upon  the  issuance  by  the
  authority  of  notes and bonds to finance the cost of constructing water
  projects of the city.
    6.  Any  such  agreement  may  be  amended,  revised  or  extended  by
  supplemental  agreements  authorized  and executed in the same manner as
  the original agreement, provided that any  such  supplemental  agreement
  shall not be inconsistent with the provisions of this title.
    7.  (a)  Following  the  execution of the agreement by and between the
  authority, the water board and the city pursuant to  this  section,  the
  clerk of the city, shall publish a notice in substantially the following
  form:   "Notice   is  hereby  given  that  the  city  of  New  York  has
  on         day of                entered into an agreement with the  New
  York   city  municipal  water  finance  authority  in  relation  to  the
  construction and financing of (here insert a brief  description  of  the
  sewerage  or  water  facility  or  facilities  to  which  such agreement
  relates) pursuant to the New York City Municipal Water Finance Authority
  Act for the purpose of placing its water or sewerage system or water and
  sewerage system, as the case may be, on an independent  basis,  imposing
  fees  and  rents  on  water  or  sewerage  system users, or both, which,
  together with other revenues available for such  purpose,  if  any,  are
  sufficient  to  pay to the authority debt service on bonds issued by the
  authority pursuant to the agreement and for operation and maintenance of
  the facility (title to which is transferred to the water board  pursuant
  to the agreement). Such agreement in general terms provides (here insert
  a brief summary of the substantive provisions of such agreement). A copy
  of the complete agreement is on file for public inspection in the office
  of  the  clerk  of  the  city  where  the  same  may  be examined by any
  interested person during regular business hours. The  validity  of  this
  agreement  may  be  hereafter  contested only upon the ground or grounds
  that: (i) such agreement violates, or the performance of  any  provision
  thereof by any party thereto would violate, the provisions of any law or
  the  state constitution, or (ii) the provisions of law which should have
  been complied with in relation to the authorization and  execution  were
  not  substantially  complied  with,  and in any event an action, suit or
  proceeding is commenced within sixty days after the date of this notice.
                                                  (Clerk or other official
                                            designated by the city council
                                                 of the city of New York)"
 
    (b)  The  publication  authorized  by this subdivision shall be in the
  state register and in the official newspaper or newspapers of the city.
    (c) After the expiration of the sixty day period  set  forth  in  such
  notice the validity of such agreement shall be conclusively presumed and
  the  validity  thereof  shall  not  thereafter be questioned by either a
  party  plaintiff  or  a  party  defendant  and  no  court   shall   have
  jurisdiction in any action, suit or proceeding contesting such validity.
    (d)  Neither  any  error  or  omission  in  the  notice of publication
  provided for in this subdivision shall affect or impair the validity  of
  an  agreement  executed  pursuant  to this section so long as the notice
  substantially conforms to the provisions of this section.