NY Pub Auth L § 1045-I (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 2-A - New York City Municipal Water Finance Authority 1045-I - 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. Except as otherwise provided in section two hundred twenty-two of the labor law, when the  entire  cost  of  constructing  a building  as  part  of  any  water  project  shall  exceed three million 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.    2-a.  Each  bidder on a public work contract, where the preparation of separate specifications is not required, shall submit  with  its  bid  a separate  sealed list that names each subcontractor that the bidder will use to perform work on the contract, and the agreed-upon  amount  to  be paid  to each, for: (a) plumbing and gas fitting, (b) steam heating, hot water heating,  ventilating  and  air  conditioning  apparatus  and  (c) electric wiring and standard illuminating fixtures. After the low bid is announced, the sealed list of subcontractors submitted with such low bid shall be opened and the names of such subcontractors shall be announced, and  thereafter  any change of subcontractor or agreed-upon amount to be paid to each shall require the approval of  the  public  owner,  upon  a showing  presented  to  the public owner of legitimate construction need for such change, which shall be open to  public  inspection.  Legitimate construction  need  shall  include,  but  not be limited to, a change in project specifications, a  change  in  construction  material  costs,  a change  to  subcontractor status as determined pursuant to paragraph (e) of subdivision two of section two hundred twenty-two of the  labor  law, or   the   subcontractor  has  become  otherwise  unwilling,  unable  or unavailable  to  perform  the   subcontract.   The   sealed   lists   of subcontractors  submitted by all other bidders shall be returned to them unopened after the contract award.   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.