There is a newer version of the New York Consolidated Laws
2006 New York Code - Powers Of The Authority.
§ 1096. Powers of the authority. The authority shall have power:
1. To sue and be sued;
2. To have a seal and alter the same at pleasure;
3. To acquire, in the name of the authority, lease, hold and dispose
of personal property or any interest therein for its corporate purposes,
including the power to purchase prospective or tentative awards in
connection with the exercise of the power of condemnation hereinafter
granted;
4. To purchase or lease, in the name of the authority, any water
supply system, water distribution system, including plants, works,
instrumentalities or parts thereof and appurtenances thereto, lands,
easements, rights in land and water rights, rights-of-way, contract
rights, franchises, approaches, connections, dams, reservoirs, water
mains and pipe lines, pumping stations and equipment, or any other
property incidental to and included in such system or part thereof, and
any improvements, extensions, and betterments, situated within the
county, or in Genesee county, or in the town or village of Victor and
the towns of East Bloomfield and West Bloomfield in Ontario county, or
in the village of Holley and the town of Clarendon in Orleans county for
the purpose of supplying water for domestic, commercial, and public
purposes at retail to individual consumers within the county of Monroe
or in the manner provided by subdivision seven of this section; and as a
means of so acquiring for such purposes, and subject to the approval of
the public service commission, the authority may purchase all of the
stock of any existing privately owned water corporation or company, and
thereafter, within a reasonable time, such water corporation or company
shall be dissolved;
5. To condemn in the name of the authority in the counties of Monroe
and Genesee, or in any other county or municipality specifically
enumerated in the first sentence of subdivision six of this section, or
in the name of the county in the case of any water facilities to be
owned and financed by the county pursuant to subdivision sixteen-b of
this section, except where located in any other county or municipality,
any water supply system, water distribution system, including plants,
works, instrumentalities, or parts thereof and appurtenances thereto,
lands, easements, rights in land and water rights, rights-of-way,
contract rights, franchises, approaches, connections, dams, reservoirs,
water mains and pipe lines, pumping stations and equipment, or any other
property incidental to and included in such system or part thereof, and
any improvements, extensions, and betterments for the purpose of
supplying water for domestic, commercial, and public purposes at retail
to individual consumers within the counties of Monroe and Genesee or in
any other county or municipality specifically enumerated in the first
sentence of subdivision six of this section, or at wholesale in the
manner provided by subdivision seven of this section. The authority
shall exercise the power of condemnation hereby granted in the manner
provided by the eminent domain procedure law or any such proceeding to
condemn may be instituted by the authority before a justice of the
supreme court or an official referee thereof. In the exercise of such
power of condemnation, the property being condemned shall be deemed,
when so determined by the authority, to be for a public use superior to
the public use in the hands of any other person, association, or
corporation; provided, however, that the authority shall have no power
to condemn property the legal title to which is vested in a municipality
or in a private corporation owning such property primarily for its own
use, unless such municipality or private corporation shall consent
thereto;
6. To construct and develop any water supply system, water
distribution system, including plants, works, instrumentalities, or
parts thereof, and appurtenances thereto, dams, reservoirs, water mains,
pipe lines, pumping stations and equipment, or any other property
incidental to or included in such system or part thereof within the
county of Monroe, or in Genesee county, or in the town or village of
Victor and the towns of East Bloomfield and West Bloomfield in Ontario
county, or in the village of Holley and the town of Clarendon in Orleans
county. To acquire, by condemnation, in the name of the authority in the
counties of Monroe and Genesee, or in any other county or municipality
specifically enumerated in the first sentence of this subdivision, or in
the name of the county of Monroe in the case of any water facilities to
be owned and financed by such county pursuant to subdivision sixteen-b
of this section, lands, easements, rights in land and water rights, and
rights-of-way within the counties of Monroe and Genesee, or in any other
county or municipality specifically enumerated in the first sentence of
this subdivision, in the manner provided by this title; or to purchase
or lease lands, easements, rights in land and water rights, and
rights-of-way in connection therewith within the county of Monroe or
within Genesee county, or in any other county or municipality
specifically enumerated in the first sentence of this subdivision; and
to own and operate, maintain, repair, improve, reconstruct, enlarge, and
extend, subject to the provisions of this title, any of its properties
acquired or constructed under this title, all of which, together with
the acquisition of such properties, are hereby declared to be public
purposes;
6-a. The authority shall not exercise any of the powers granted in
subdivisions four and six of this section with respect to the
acquisition, purchase, leasing, construction, or development of property
outside of the county without first having obtained the prior approval
of such purchase, leasing, acquisition, construction, or development of
such property outside of the county by resolution of the legislative
body of the municipality wherein the affected property outside of the
county is located. Notwithstanding any inconsistent provision of any
general, special, or local law, ordinance, resolution, or charter, any
public corporation or improvement district thereof may, by a majority
vote of its governing body, give, grant, sell, convey, lend, license the
use of, or lease to the authority any property or facilities, including
any water supply system, water distribution system, including plants,
works, instrumentalities or parts thereof and appurtenances thereto,
lands, easements, rights in land and water rights, rights-of-way,
contract rights, franchises, approaches, connections, dams, reservoirs,
water mains and pipe lines, pumping stations and equipment, or any other
property incidental to and included in such system or part thereof, and
any improvements, extensions, and betterments for the purpose of
supplying water for domestic, commercial, industrial and public
purposes, which property or facilities are useful in connection with the
exercise by the authority of its powers under this title. Any such gift,
grant, sale, conveyance, loan, license, or lease shall be upon such
terms and conditions, and for such term or terms of years, subject to
the rights of the holders of any bonds, as the authority and such public
corporation or improvement district thereof may agree. Any such gift,
grant, sale, conveyance, loan, license, or lease shall not be subject to
referendum, permissive or mandatory. In the event that any public
corporation or improvement district thereof gives, grants, sells,
conveys, lends, licenses the use of, or leases any water supply system,
water distribution system, or other improvements, extension or
betterments for the purpose of supplying water, to the authority, such
public corporation or improvement district thereof may contract with the
authority to lease, borrow, license, operate, maintain, manage, and
provide services for such facilities upon such terms and conditions, and
for such term or terms of years, subject to the rights of holders of
bonds, as the authority and such public corporation or improvement
district thereof may agree. The authority, in furtherance of any
purchase, conveyance, or lease of any property or facility from any
public corporation or improvement district thereof, may assume the
primary responsibility for the payment of the principal and interest on
any bonds or notes issued by such public corporation or improvement
district thereof for such property or facility. For purposes of section
136.00 of the local finance law, any agreement by the authority to
assume the primary responsibility for the payment of the principal and
interest on any bonds or notes issued by any such public corporation or
improvement district thereof shall, so long as such agreement shall
continue to be honored by the authority, cause such bonds or notes to be
deemed to have been refunded, and any such public corporation or
improvement district thereof may deduct from its gross indebtedness any
outstanding indebtedness contracted for such property or facility to be
acquired by the authority. The net proceeds of any purchase, conveyance,
or lease of any property or facility from a public corporation or
improvement district thereof may be used by such public corporation or
improvement district thereof for any general or specific public use;
7. To sell water, however acquired, by volume and at retail to
individual consumers within the county of Monroe for domestic,
commercial, industrial, and public purposes, or by volume or in bulk and
at wholesale to any or all municipalities or privately owned public
water supply and distribution systems in such county. The fact that any
municipality has procured or is about to procure an independent source
of water supply shall not prevent such municipality from purchasing
water from the authority. To sell any water not needed in such county by
volume and at retail to individual consumers within the county of
Genesee, or in the town or village of Victor and the towns of East
Bloomfield and West Bloomfield in Ontario county, or in the village of
Holley and the town of Clarendon in Orleans county, for domestic,
commercial, industrial, and public purposes, or by volume or in bulk and
at wholesale to any municipality or privately owned public water supply
and distribution system outside of the county; provided that any costs
incurred by the authority related to the Genesee county project shall be
recovered by the authority solely from Genesee county or from rates and
charges collected from customers within Genesee county; and further
provided that the authority shall not sell water in any area outside of
the county unless the governing board of the municipality wherein such
area is located shall enter into an agreement with the authority for
service or sale of water by it in such area or shall by resolution
request the authority to sell water within such area. Any agreement
between a municipality outside of the county and the authority for the
sale of water to or within such municipality shall be subject to the
approval of the legislative body of the contiguous county wherein such
municipality is located. Not only may the authority sell any surplus
water it may have developed, but it may develop and provide a sufficient
amount of water so as to supply water outside of the county to
individual consumers, any municipality, or privately owned public water
supply and distribution system;
8. To purchase water in bulk or by volume from any person, private
corporation or municipality when necessary or convenient for the
operation of any water supply and distribution system developed by it,
or when necessary or convenient for resale under the authority and
provisions of subdivision seven of this section;
9. To acquire, hold, use, lease, sell, transfer and dispose of any
property, real, personal or mixed, or interest therein, for its
corporate purposes;
10. To make by-laws for the management and regulation of its affairs,
and subject to agreements with bondholders, rules for the sale of water
and the collection of rents and charges therefor. A copy of such rules
and by-laws, and all amendments thereto, duly certified by the secretary
of the authority shall be filed in the office of the clerk of the county
and thereafter published once in two newspapers having a general
circulation in the county. Violation of such rules shall be a
misdemeanor, punishable by fine, not exceeding fifty dollars, or by
imprisonment for not longer than thirty days, or both. Exclusive
jurisdiction is hereby conferred upon the local criminal courts of the
county, which have trial jurisdiction, to hear and determine, subject to
the provisions of the criminal procedure law, any violation of this
title;
11. To use the officers, employees, facilities and equipment of the
county with the consent of the county, paying a proper portion of the
compensation or cost;
12. To make contracts and to execute all necessary or convenient
instruments, including evidences of indebtedness, negotiable or
non-negotiable;
13. To enter on any lands, waterways and premises for the purpose of
making surveys, soundings and examinations;
14. To borrow money and to issue negotiable bonds or notes and to fund
or refund the same, and to provide for the rights of the holders of its
obligations;
15. To fix rates and collect charges for the use of the facilities of,
or services rendered by, or any commodities furnished by the authority
such as to provide revenues sufficient at all times to pay, as the same
shall become due, the principal and interest on the bonds or notes of
the authority together with the maintenance of proper reserves therefor,
in addition to paying as the same shall become due the expense of
operating and maintaining the properties of the authority together with
proper reserves for depreciation, maintenance, and contingencies and all
other obligations and indebtedness of the authority;
16. To enter into cooperative agreements with other water authorities,
municipalities, or utility companies, for the inter-connection of
facilities, the exchange or inter-change of services and commodities,
and to enter into contracts for the construction of water supply and
distribution systems by the authority for any municipality which
possesses express reciprocal powers and having power to construct and
develop a water supply and distribution system, or contracts for the
construction of a water supply and distributions systems for the
authority by a municipality which possesses express reciprocal powers
and having power to construct and develop a water supply and
distribution system, upon such terms and conditions as shall be
determined to be reasonable including, but not limited to, the
reimbursement of all costs of such construction, or for any other lawful
purposes necessary or desirable to effect the purposes of this title,
provided, however, that any such agreement with a municipality located
in a county, other than Monroe county, shall be subject to the approval
of the legislative body of such county. The authority shall also have
the power to enter into contracts or agreements with other corporations,
public or private, (i) for or with respect to the financing,
construction, development, expansion or improvement of properties,
facilities, and appurtenances owned by the authority, with a part of the
capacity or use of such properties, facilities and appurtenances
utilized or to be utilized by or for the benefit of any such corporation
and (ii) for or with respect to the use, operation, management, repair
and maintenance of such properties, facilities, and appurtenances of the
authority, upon such terms and conditions as shall be determined to be
reasonable, which may include, without limitation, collection by the
authority of rents, rates or other charges to pay for the cost of
construction, including debt service on obligations of the authority
issued to finance construction, operation, management, maintenance,
repair and use of such facilities; and municipalities having power to
construct and develop water supply and distribution systems shall have
the power to enter into contracts or agreements contemplated herein with
the authority, including any such contract to which another corporation
is a party;
16-a. To enter into a contract or contracts with the board of
supervisors of Monroe county for the acquisition, construction and
development of a water supply and distribution system, or any part or
parts thereof, on behalf of a county water district, and to contract for
the operation and management of such county water district, all as
provided in article five-a of the county law and article five-b of the
general municipal law. Such water authority shall be deemed the agent of
Monroe county under any such contract. If such contract shall authorize
the water authority to purchase supplies or equipment or to construct
public works, such authority shall be subject to all provisions of law
to which Monroe county would be subject in relation to advertising and
awarding any such contracts for supplies, equipment or public works.
16-b. (1) It is the purpose of this subdivision to provide a means
whereby: (i) the authority shall plan, construct, operate and manage
both the water properties owned by the authority and additional water
facilities to be hereafter constructed by the authority but financed and
owned by the county so that such water properties and such water
facilities may be operated as an integrated water system; and (ii) the
county shall finance the construction of and own additional water
facilities and lease the same to or otherwise make the same available
for use by the authority in order to assist the authority in providing
such necessary improvements required for the operation of the water
properties of the authority (the title to which water properties will,
as provided by law, become vested in the county).
(2) For the purposes of this subdivision sixteen-b the term "water
facilities" shall mean the acquisition, construction or reconstruction
of or addition to a water supply or distribution system, whether or not
including buildings, land or rights in land, original furnishings,
equipment, machinery or apparatus, or the replacement of such equipment,
machinery or apparatus, which water facilities are to be financed and
owned by the county. For the purpose of this subdivision sixteen-b the
term "water properties" means the source of water supply and the water
supply and distribution system of the authority, including the plants,
works, instrumentalities or parts thereof and appurtenances thereto,
lands, easements, rights in land and water rights, rights of way,
contract rights, franchises, approaches, connections, dams, reservoirs,
water mains and pipe lines, pumping stations and equipment, and any
other property, real, personal or mixed, incidental to and included in
such source of supply and such system or parts thereof, and any
improvements, extensions and betterments, now or hereafter constructed,
acquired or made by the authority, other than the water facilities
constructed by the authority but financed and owned by the county in
accordance with the provisions of this subdivision.
(3) The county may, by resolution of the legislative body of such
county, enter into an agreement or agreements with the authority
providing: (i) that water facilities shall be constructed by the
authority, which water facilities shall be financed and owned by the
county and leased or otherwise made available for the use of the
authority; and (ii) for the transfer to the authority for use in the
execution of its corporate purposes of such water facilities hereafter
financed and owned by the county in accordance with the provisions of
this subdivision; provided, however, that title to such facilities shall
remain in the county.
Such agreement shall constitute a contract for the passing to and
vesting in the county of all rights and properties, including water
properties, of the authority when all liabilities of the authority,
other than its liabilities to the county pursuant to any agreements
entered into pursuant to this subdivision, and the bonds of the
authority have been paid in full or such liabilities or bonds have
otherwise been discharged.
Such agreement or agreements may be amended, modified, changed or
extended by supplemental agreements authorized and executed in the same
manner as the original agreement provided that the provisions of any
such supplemental agreement shall not be inconsistent with the
provisions of this subdivision sixteen-b.
(4) Such agreement shall provide that until the rights and properties,
including the water properties, of the authority shall pass to and be
vested in the county as provided by law, the authority shall act as the
agent of the county: (i) to provide water facilities deemed necessary by
the authority (a) to provide a supply of water sufficient to serve all
customers of the water properties of the authority and of the water
facilities of the county operated and managed by the authority, or (b)
water facilities for the distribution of water deemed necessary by the
authority to serve the territory of the authority within the county; and
(ii) to operate, manage, replace, maintain and repair such water
facilities in conjunction with the water properties of the authority so
that both the water properties of the authority and the water facilities
owned and financed by the county shall be planned, operated and managed
as an integrated water system.
(5) Such agreement shall provide for the transfer to and use by the
authority of such water facilities by lease, license or other
arrangement until such time as all rights and properties, including
water properties, of the authority shall pass to and be vested in the
county as provided by law and shall authorize the authority to take
jurisdiction, control, possession and supervision of such water
facilities and operate, manage, replace, maintain and repair the same
together with the water properties of the authority as an integrated
water system.
(6) Such agreement shall provide that the county shall pay an amount
not to exceed twenty-seven million dollars to provide certain water
facilities to be owned by the county and leased to or otherwise made
available for use by the authority in accordance with the provisions of
such agreement, which water facilities shall be described in terms
sufficient for identification in the first agreement so executed by and
between the county and the authority. The county may issue obligations
pursuant to the local finance law in an amount not to exceed
twenty-seven million dollars to pay the cost of such water facilities.
The provisions of section four hundred of the county charter prohibiting
the financing of permanent improvements by the issuance of obligations
pursuant to the local finance law unless such permanent improvements are
included in a budget of permanent improvements adopted and approved as
provided by such section four hundred shall not be applicable to the
financing of such water facilities by the issuance of such obligations
of the county authority by this paragraph.
(7) Such agreement shall provide that the authority shall pay to the
county for each fiscal year of the county an annual rental for the use
of the water facilities financed and owned by the county which shall be
an operating expense of the authority, and shall be equal to the sum of
the following: (i) the principal of any bonds of the county becoming due
in such fiscal year issued in accordance with any agreement entered into
pursuant to this subdivision; and (ii) the interest on any obligations
of the county, including bonds and notes, issued in accordance with any
such agreement and becoming due in such fiscal year. Such agreement
shall provide such further details as the parties deem necessary with
respect to the time and manner of the payment of such annual rentals in
order to assure that such annual rentals shall be available to the the
county at the times and in the amounts required for the payment of such
principal of bonds of the county and such interest on obligations of the
county. Notwithstanding that the payment of such annual rentals shall be
an operating expense of the authority, such agreement may provide that
payment thereof shall be subordinate to all or any of certain payments
hereinafter described required to be made by a certain trust indenture
between the authority and a trustee dated as of February first, nineteen
hundred fifty-nine. Such payments are the payments required to be made
by said trust indenture to the debt service fund and the debt service
reserve fund both created by such indenture.
(8) Such agreement shall provide that to facilitate the further
acquisition, construction, reconstruction, extension or betterment of
water facilities by the authority to be owned and financed by the
county, other than and in addition to the water facilities to be
financed by the county pursuant to the provisions of paragraph (6) of
this subdivision, the authority, on or before September first in each
year or on or before such earlier date in each year as such agreement
may provide, may submit to the county manager a capital budget for the
calendar year beginning on the succeeding January first of such proposed
water facilities and the estimated cost thereof. Such capital budget
shall be accompanied by a report of the consulting engineers retained by
the authority pursuant to a certain trust indenture of the authority
dated as of February one, nineteen hundred fifty-nine. Such report of
the consulting engineers shall explain the need for or desirability of
such proposed water facilities and shall state that the consulting
engineers have approved the estimated cost thereof. Such capital budget
of the authority and report of such consulting engineers shall describe
such proposed water facilities in terms sufficient for identification.
When received by the county manager, such capital budget of the
authority and the report of the consulting engineers shall be used in
the preparation of the budget of permanent public improvements of the
county required to be prepared by section four hundred of the Monroe
county charter in the same manner as if the providing of such additional
water facilities originally were proposed by the county. The county
shall pay the cost of any water facilities contained in a budget of
permanent improvements after such budget has been adopted. At any time
after the adoption of such budget of permanent improvements the county
may finance any water facilities contained therein pursuant to the
provisions of and in the manner provided by the local finance law.
Notwithstanding any other provisions of this subdivision, in the event
that any item for the providing of water facilities contained in the
capital budget and report of the consulting engineers as submitted to
the county manager shall not be made a part of the budget of permanent
improvements of the county, the authority may, nevertheless, proceed to
construct such proposed water facility as an addition to the water
properties of the authority and finance the same by the issuance of
obligations of the authority, subject, however, to: (i) the provisions
of any resolutions or trust indentures heretofore or hereafter adopted
or executed by the authority, as the case may be, with respect to the
construction of water properties and the financing thereof by the
authority; and (ii) the limitations, if any, on the issuance of bonds or
obligations by the authority contained in any agreement executed
pursuant to this subdivision sixteen-b.
(9) Such agreement may contain further provisions concerning the
following, provided, however, that no provisions in any agreement or any
supplemental agreement thereto shall require the authority to in any way
impair the rights and remedies of the holders of obligations of the
authority pursuant to any resolution or trust indenture of the authority
heretofore adopted or executed authorizing or securing obligations of
the authority: (i) further provisions relating to the annual rentals due
by the authority to the county as provided in this subdivision; (ii)
provisions that the rates, fees, rentals and other charges for the sale
or distribution of water or for other services rendered by the water
properties of the authority shall be in an amount sufficient to fully
comply with any covenants with holders of obligations of the authority
and in addition sufficient to pay the annual rentals payable by the
authority to the county as provided in this subdivision and in any
agreements or supplemental agreements executed in accordance with the
provisions of this subdivision; (iii) provisions limiting the issuance
of bonds or obligations by the authority; (iv) provisions limiting the
power of the authority to sell or otherwise dispose of its water
properties without the consent of the county; (v) providing that when
the rights and properties of the authority shall pass to and be vested
in the county as provided by law the authority shall act as the agent of
the county to plan, construct, operate and manage the water properties
and water facilities then vested in and owned by the county for such
term and extensions of such term as may be provided by any such
agreements; and (vi) such other provisions not inconsistent with the
provisions of this subdivision sixteen-b as the parties shall deem
necessary or desirable to implement the purpose and provisions of this
subdivision sixteen-b.
(10) The proceeds of sale of obligations of the county issued pursuant
to any agreement entered into pursuant to this subdivision shall be
subject to the provisions of section one hundred sixty-five of the local
finance law and shall be paid and disbursed by the director of finance
of the county on requisition by the authority or such person or persons
as the authority may authorize to make such requisitions without further
audit; provided, however, that the director of finance of the county may
require that such requisitions shall be accompanied by properly itemized
and verified or certified bills for materials, supplies or services.
(11) All contracts for the purchase of supplies or equipment or the
construction of water facilities entered into with respect to the
providing of water facilities to be financed and owned by the county and
constructed by the authority shall be subject to all provisions of law
which the county of Monroe would be subject to in relation to
advertising and awarding any such contracts for supplies, equipment or
the construction of water facilities
(12) The provisions of this subdivision sixteen-b shall be independent
and cumulative power for the authority and the county to enter into the
agreements authorized hereby and shall not be construed with or be
limited by any of the provisions of article five-a of the county law and
of this article of the public authorities law.
17. To accept grants, loans or contributions from the United States,
the state of New York, or any agency or instrumentality of either of
them, or the county, or an individual, by bequest or otherwise, and to
expend the proceeds for any purposes of the authority;
18. To do all things necessary or convenient to carry out the powers
expressly given in this title.
19. To contract for the purposes of subdivision twenty-four of section
ten of article two of the highway law.
In exercising the powers granted by this title, the authority shall
not sell water in any area which is served by a water system owned or
operated by a municipality unless the governing board of such
municipality shall adopt a resolution requesting the authority to sell
water in such area.
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