§ 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\nfor the provision of water projects. 1. The authority, the water board\nand the city, acting either by the mayor alone or by resolution of the\nboard of estimate of the city, may enter into agreements for the purpose\nof providing for the construction and financing of a water project.\n 2. Any such agreements (i) shall describe in sufficient detail for\nreasonable identification the particular water project to be financed in\nwhole or in part by the authority, (ii) shall describe the plan for the\nfinancing of the cost of the construction of such water project,\nincluding the amount, if any, to be provided by the water board and the\nsource or sources thereof, (iii) shall set forth the method by which and\nby whom and the terms and conditions upon which moneys provided by the\nauthority shall be disbursed, (iv) may require, in the discretion of the\nauthority, the payment to the authority of the proceeds of any state and\nfederal grants available to the water board, (v) shall provide for the\nestablishment of user fees, rates, rents and other charges and the\ncharging and collection thereof by the water board for the use of, or\nservices furnished, rendered or made available by such system such as to\nprovide that such board receive revenues at least sufficient, together\nwith other revenues of the board, if any, to meet the requirements of\nsubdivision one of section one thousand forty-five-j of this title,\nprovided that revenues received by such board shall be deposited in a\nspecial fund established pursuant to this title and disbursed to, and\nupon certification of, the authority, (vi) may provide for the transfer\nby the city to the water board pursuant to section one thousand\nforty-five-h of this title of ownership of the sewerage system or water\nsystem, or both, as the case may be, of which such project will form a\npart by the city, (vii) shall provide for the construction and\ncompletion of such water project by the city and for the operation,\nmaintenance and repair thereof as an integrated part of the system of\nwhich such water project forms a part, subject to such terms and\nconditions, not inconsistent with this title, which may be in the public\ninterest and necessary or desirable properly and adequately to secure\nthe holders of bonds of the authority, provided, however, all contracts\nfor public work and all purchase contracts shall be awarded by the city\nas provided by law for the award of such contracts by the city and that\nall contracts for construction shall be let in accordance with the\nprovisions of state law pertaining to prevailing wages, labor standards\nand working hours. Except as otherwise provided in section two hundred\ntwenty-two of the labor law, when the entire cost of constructing a\nbuilding as part of any water project shall exceed three million\ndollars, the city shall prepare separate specifications for the\nfollowing three subdivisions of the work to be performed: (a) plumbing\nand gas fitting; (b) steam heating, hot water heating, ventilating and\nair conditioning apparatus; and (c) electric wiring and standard\nilluminating fixtures, (viii) shall provide for the discontinuance or\ndisconnection of the supply of water or the provision of sewerage\nservice, or both, as the case may be, for non-payment of fees, rates,\nrents or other charges therefor imposed by the water board, provided\nsuch discontinuance or disconnection of any supply of water or the\nprovision of sewerage service, or both, as the case may be, shall not be\ncarried out except in the manner and upon the notice as is required of a\nwaterworks corporation pursuant to subdivisions three-a, three-b and\nthree-c of section eighty-nine-b and section one hundred sixteen of the\npublic service law, and (ix) in the discretion of the authority, require\nreports concerning the project from the water board to the authority and\nthe city.\n 2-a. Each bidder on a public work contract, where the preparation of\nseparate specifications is not required, shall submit with its bid a\nseparate sealed list that names each subcontractor that the bidder will\nuse to perform work on the contract, and the agreed-upon amount to be\npaid to each, for: (a) plumbing and gas fitting, (b) steam heating, hot\nwater heating, ventilating and air conditioning apparatus and (c)\nelectric wiring and standard illuminating fixtures. After the low bid is\nannounced, the sealed list of subcontractors submitted with such low bid\nshall be opened and the names of such subcontractors shall be announced,\nand thereafter any change of subcontractor or agreed-upon amount to be\npaid to each shall require the approval of the public owner, upon a\nshowing presented to the public owner of legitimate construction need\nfor such change, which shall be open to public inspection. Legitimate\nconstruction need shall include, but not be limited to, a change in\nproject specifications, a change in construction material costs, a\nchange to subcontractor status as determined pursuant to paragraph (e)\nof subdivision two of section two hundred twenty-two of the labor law,\nor the subcontractor has become otherwise unwilling, unable or\nunavailable to perform the subcontract. The sealed lists of\nsubcontractors submitted by all other bidders shall be returned to them\nunopened after the contract award.\n 3. If the city executes an agreement pursuant to this section,\nrelating to the financing of water projects by revenue bonds, it shall\nhave and shall be deemed to have annulled its power to levy user fees,\nrents and other charges on participating properties or customers for the\ncost of financing, operating and maintaining such water or sewerage\nsystem or both, as the case may be, under its jurisdiction until all\nbonds of the authority shall have been paid or discharged in accordance\nwith the agreement and the resolution of the authority authorizing such\nbonds. If the city has outstanding general obligation bonds issued for\nacquiring or constructing water or sewerage facilities, whether the\nbonds are payable from revenues, special assessments, or taxes, it may\nauthorize the authority pursuant to the agreement to issue its revenue\nbonds under this title for the purpose of retiring the outstanding\nbonds.\n 4. No such agreement shall be executed until the city and water board\nshall have held a public hearing at which users of the water system or\nthe sewerage system or the water system and sewerage system, as the case\nmay be, shall have had opportunity to be heard concerning the proposed\nprovisions thereof. Notice of such hearing shall be published at least\nthirty days in advance in the state register, in the official newspaper\nor newspapers of the city, and in at least one newspaper of general\ncirculation in each of the areas served by the water system or sewerage\nsystem, as the case may be.\n 5. Such agreement shall be effective upon the issuance by the\nauthority of notes and bonds to finance the cost of constructing water\nprojects of the city.\n 6. Any such agreement may be amended, revised or extended by\nsupplemental agreements authorized and executed in the same manner as\nthe original agreement, provided that any such supplemental agreement\nshall not be inconsistent with the provisions of this title.\n 7. (a) Following the execution of the agreement by and between the\nauthority, the water board and the city pursuant to this section, the\nclerk of the city, shall publish a notice in substantially the following\nform: "Notice is hereby given that the city of New York has\non day of entered into an agreement with the New\nYork city municipal water finance authority in relation to the\nconstruction and financing of (here insert a brief description of the\nsewerage or water facility or facilities to which such agreement\nrelates) pursuant to the New York City Municipal Water Finance Authority\nAct for the purpose of placing its water or sewerage system or water and\nsewerage system, as the case may be, on an independent basis, imposing\nfees and rents on water or sewerage system users, or both, which,\ntogether with other revenues available for such purpose, if any, are\nsufficient to pay to the authority debt service on bonds issued by the\nauthority pursuant to the agreement and for operation and maintenance of\nthe facility (title to which is transferred to the water board pursuant\nto the agreement). Such agreement in general terms provides (here insert\na brief summary of the substantive provisions of such agreement). A copy\nof the complete agreement is on file for public inspection in the office\nof the clerk of the city where the same may be examined by any\ninterested person during regular business hours. The validity of this\nagreement may be hereafter contested only upon the ground or grounds\nthat: (i) such agreement violates, or the performance of any provision\nthereof by any party thereto would violate, the provisions of any law or\nthe state constitution, or (ii) the provisions of law which should have\nbeen complied with in relation to the authorization and execution were\nnot substantially complied with, and in any event an action, suit or\nproceeding is commenced within sixty days after the date of this notice.\n (Clerk or other official\n designated by the city council\n of the city of New York)"\n (b) The publication authorized by this subdivision shall be in the\nstate register and in the official newspaper or newspapers of the city.\n (c) After the expiration of the sixty day period set forth in such\nnotice the validity of such agreement shall be conclusively presumed and\nthe validity thereof shall not thereafter be questioned by either a\nparty plaintiff or a party defendant and no court shall have\njurisdiction in any action, suit or proceeding contesting such validity.\n (d) Neither any error or omission in the notice of publication\nprovided for in this subdivision shall affect or impair the validity of\nan agreement executed pursuant to this section so long as the notice\nsubstantially conforms to the provisions of this section.\n