2023 New York Laws › ENV - Environmental Conservation › Article 17 - Water Pollution Control › Title 19 - State Aid: Collection, Treatment, and Disposal of Sewage › 17-1903 - Contracts for Construction of Sewage Treatment Works.

§ 17-1903. Contracts for construction of sewage treatment works.
1. As used in this section:
a.  "Sewage  treatment  works"  means  a  facility  for the purpose of
treating, neutralizing or stabilizing  sewage,  including  treatment  or
disposal  plants, the necessary intercepting, outfall and outlet sewers,
pumping stations integral  to  such  plants  or  sewers,  equipment  and
furnishings thereof and their appurtenances.
b.   "Construction"   means   the   erection,  building,  acquisition,
alteration, reconstruction, improvement or extension of sewage treatment
works; the inspection and  supervision  thereof;  and  the  engineering,
architectural,  legal,  fiscal  and economic investigations and studies,
surveys, designs, plans, working drawings,  specifications,  procedures,
and other actions necessary thereto.
c.  "Eligible  project" means a project for the construction of sewage
treatment works, (1) for which a permit  has  been  issued  pursuant  to
section  17-0701  of  this article, (2) which is, in the judgment of the
commissioner,  in  accord  with  applicable  comprehensive  studies  and
reports  made  pursuant to section 17-1901, if any, (3) which is, in the
judgment of the commissioner, eligible for federal  pollution  abatement
assistance,  whether  or  not federal funds are then available therefor,
(4)  which  conforms  with  applicable  rules  and  regulations  of  the
commissioner,  (5)  which  is,  in  the  judgment  of  the commissioner,
necessary for the accomplishment of the state  water  pollution  control
program,  and  (6)  either  (a)  the  erection,  building,  acquisition,
alteration,  reconstruction,  improvement  or  extension  of  which   is
commenced  or  is  to  be  commenced  between the date on which this act
becomes a law and March 31, 1972, or (b) any portion  of  the  erection,
building,   acquisition,   alteration,  reconstruction,  improvement  or
extension of which is undertaken between the  date  on  which  this  act
becomes a law and March 31, 1972.
d.  "Municipality"  means  any  county,  city, town, village, district
corporation, county or town improvement district, or sewer authority now
existing  in  a  city,  the  New  York  State  Environmental  Facilities
Corporation  acting  pursuant  to  subdivision  three  of section twelve
hundred eighty-five of the public authorities law, or any two or more of
the foregoing which are acting jointly in connection  with  an  eligible
project.
e. "Federal pollution abatement assistance" means funds available to a
municipality,  either  directly or through allocation by the state, from
the federal government as grants for construction  of  sewage  treatment
works,  pursuant to section 6 of the Federal Water Pollution Control Act
as enacted by section 1 of  the  Federal  Water  Pollution  Control  Act
amendments of 1956 and acts amendatory thereto.
f.  "Federal  assistance"  means  funds available, other than by loan,
from the federal  government  to  a  municipality,  either  directly  or
through  allocation  by  the state, for construction of sewage treatment
works or which are used for such construction, pursuant to  the  Federal
Water  Pollution  Control Act and acts amendatory thereto or pursuant to
any other federal law or program.
2. For the  purpose  of  discharging  the  state  responsibility  with
respect to the protection and promotion of the health of the inhabitants
of   the   state  by  the  provision  of  sewage  treatment  works,  the
commissioner, in the name of the state, may enter  into  contracts  with
municipalities  having  power  to construct, operate and maintain sewage
treatment works, and any such municipality may  enter  into  a  contract
with  the  commissioner, concerning eligible projects. Any such contract
may include such provisions  as  may  be  agreed  upon  by  the  parties
thereto, and shall include, in substance, the following provisions:
a.  An estimate of the reasonable cost of the project as determined by
the commissioner.
b. An agreement by the commissioner to pay to the municipality, during
the  progress  of construction of each phase of the project (said phases
to  be  construction  of  interceptors,  substructure,   superstructure,
outfalls  or  other  similar  major components of a project), subject to
final computation and determination of the state grant  upon  completion
of  the  entire  project  reflecting the actual eligible cost thereof, a
portion of the  cost  of  the  project  representing  the  part  of  the
non-municipal  share  of the cost of the project that is not paid by the
federal government, determined in the following manner:
(1) An amount equal to thirty per cent  of  the  actual  cost  of  the
project,  or  an  amount  equal  to  thirty  per  cent  of the estimated
reasonable cost of the project, whichever is lower,  provided,  however,
that  the  state payment under this subparagraph shall be reduced by the
amount of any federal assistance received  or  to  be  received  by  the
municipality  which  is  in  excess of sixty per cent of the cost of the
project, together with,
(2) If necessary to limit the municipal  share  of  the  cost  of  the
project  to forty per cent, an additional amount which when added to the
amount of federal assistance, if any, received or to be received by  the
municipality,  equals thirty per cent of the actual cost of the project,
or equals thirty per cent  of  the  estimated  reasonable  cost  of  the
project, whichever is lower.
c. An agreement by the municipality
(1)  To  proceed  expeditiously  with,  and  complete,  the project in
accordance with plans approved pursuant to section 17-0701;
(2) To commence operation of the sewage treatment works on  completion
of  the  project,  and  not  to  discontinue operation or dispose of the
sewage treatment works without the approval of the commissioner;
(3) to operate and maintain the sewage treatment works  in  accordance
with  applicable provisions of this article, the state sanitary code and
rules and regulations of the commissioner;
(4) to apply  for  and  make  reasonable  efforts  to  secure  federal
assistance for the project;
(5)  to  secure  the  approval of the commissioner before applying for
federal pollution abatement assistance, in order to maximize the amounts
of such assistance received or to be received for all  projects  in  New
York  state, including amounts for reimbursement of payments made by the
state pursuant to subparagraph (2) of paragraph b of  this  subdivision;
and
(6) to provide for the payment of the municipality's share of the cost
of the project.
d.  A  provision  that, in the event that federal assistance which was
not included in  the  calculation  of  the  state  payment  pursuant  to
paragraph  b  of this subdivision becomes available to the municipality,
the amount of the state payment shall be recalculated with the inclusion
of such additional federal assistance and the municipality shall  either
(1) pay to the state the amount by which the state payment actually made
exceeds  the  state  payment  determined by the recalculation or, (2) if
such  additional  federal  assistance  has  not  been  received  by  the
municipality, authorize the state to receive and retain such amount from
the federal government.
3.  The  commissioner  may  adopt  rules  and  regulations pursuant to
subdivision 2 of section 17-0303 governing the making and  enforcing  of
contracts pursuant to this section.
4.  All  contracts  entered  into  pursuant  to  this section shall be
subject to approval by  the  state  comptroller,  and  by  the  attorney

general as to form. All payments by the state pursuant to such contracts
shall  be made after audit by and upon the warrant of the comptroller on
vouchers approved by the commissioner.
5.  The  commissioner  shall  prepare  and file with the department an
annual report on  the  scope  and  results  of  construction  undertaken
pursuant to this section.
6. In connection with each contract concerning an eligible project the
commissioner shall keep adequate records of the amount of the payment by
the  state  pursuant to subparagraph (2) of paragraph b of subdivision 2
of this section, and of the amount of federal assistance received by the
municipality. Such records shall be retained  by  the  commissioner  and
shall  establish  the basis for application for federal reimbursement of
such payments made by the state. The commissioner is  hereby  authorized
to make such applications in appropriate cases.
7.  In  the  event  that a project is an eligible project by reason of
clause (b) of subparagraph (6) of paragraph c of subdivision 1  of  this
section  rather  than by reason of clause (a) of such subparagraph, then
the estimated reasonable cost of  the  project  determined  pursuant  to
paragraph  a of subdivision 2 of this section and the actual cost of the
project for the purpose of subparagraphs (1) and (2) of paragraph  b  of
such  subdivision  shall be calculated only with respect to that portion
of the  erection,  building,  acquisition,  alteration,  reconstruction,
improvement  or  extension  of  the  sewage  treatment  works  which  is
undertaken after the date on which this act becomes a law.
8. The commissioner may advance funds to a municipality in  accordance
with the following provisions:
a.  Prior  to  entering into a contract authorized by subdivision 2 of
this section, the commissioner may advance funds to a  municipality,  in
an  amount  up  to  five per cent of the estimated reasonable cost of an
eligible project as determined by the commissioner, for the  purpose  of
assisting  the municipality in defraying expenses of an eligible project
incurred in advance of construction. This advance shall be payable, upon
the  warrant  of  the  comptroller  on  a  voucher   approved   by   the
commissioner, after formal acceptance by the municipality of the federal
pollution abatement assistance offered pursuant to the provisions of the
Federal  Water  Pollution  Control  Act and amendments thereto or at the
discretion of the commissioner after state submission of the project  to
the federal government and in the absence of a federal offer.
b.  The amount of the advance shall be deducted from the amount of the
state payment to be made to the municipality, pursuant to the  agreement
of  the  commissioner  with  the  municipality, when construction of the
entire project is one-half completed.
c. The municipality shall initiate construction of the project  within
the  time  specified  in the approved project which, in any event, shall
not be later than two years after the date of such advance of funds.  If
construction  is  not  initiated  within  such  time,  the amount of the
advance shall be repaid to the state. Whenever such  municipality  shall
fail  to  make  any  such  repayment  to  the state, upon request of the
commissioner, the state comptroller shall  cause  to  be  withheld  from
state-collected,  locally-shared  taxes or state aid, whichever he shall
determine and to which such municipality would otherwise be entitled,  a
sum  sufficient  to reimburse the state for the amount due and owing the
state.
9. To the extent that funds available pursuant to chapter 176  of  the
laws  of 1965 (Pure Waters Bond Act) are not needed to finance the state
share of projects, the construction of which  was  undertaken  prior  to
April  1,  1972, the commissioner is authorized to provide assistance to
municipalities  for  the  construction  of  "water  quality  improvement

projects"  as  defined  in  section  51-0303 of this chapter. The use of
funds as  authorized  by  this  subdivision  will  be  governed  by  the
provisions  of  titles  1  and 3 of article 51 of this chapter, provided
however,  that subdivisions 1 through 8 of this section will continue to
apply to projects construction of which was undertaken prior to April 1,
1972.