2023 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.