§ 1045-J — Imposition and disposition of sewer and water fees, rates, rents or charges

§ 1045-j. Imposition and disposition of sewer and water fees, rates,\nrents or charges. 1. The water board shall establish, fix and revise,\nfrom time to time, fees, rates, rents or other charges for the use of,\nor services furnished, rendered or made available by, the sewerage\nsystem or water system, or both, as the case may be, owned by the water\nboard pursuant to this title in such amount at least sufficient at all\ntimes so as to provide funds in an amount sufficient together with other\nrevenues available to the board, if any, (i) to pay to the authority, in\naccordance with any agreement with the authority, an amount sufficient\nfor the purpose of paying the principal of and the interest on the\noutstanding notes or bonds of the authority as the same shall become due\nand payable and maintaining or funding a capital or debt service reserve\nfund therefor and, to the extent requested by the city in, or annually\npursuant to, the agreement to pay to the city, in accordance with the\nagreement, an amount sufficient for the purpose of paying the principal\nof and interest on general obligation bonds thereof issued for or\nallocable to the water system or sewerage system or both, as the case\nmay be, as the same shall become due and payable, and to maintain or\nfund reserves therefor, (ii) to pay to the city, in accordance with the\nagreement, an amount sufficient for the purpose of paying the costs of\nadministering, maintaining, repairing and operating and the cost of\nconstructing capital improvements to the water system or sewerage system\nor both, as the case may be, (iii) to pay to the city in accordance with\nthe agreement entered into pursuant to section one thousand forty-five-i\nof this title an amount sufficient for the purpose of paying liabilities\nissued for or allocable to the water system or sewerage system or both,\nas the case may be, as the same shall become due and payable, (iv) to\nmeet any requirements of any agreement including requirements relating\nto the establishment of reserves for renewal and replacement and for\nuncollected charges and covenants respecting rates, (v) to pay all other\nreasonable and necessary expenses of the authority and the water board\nin relation thereto, and (vi) to the extent requested by the city in or\npursuant to the agreement, to pay or provide for such other purposes or\nprojects as such city considers appropriate and in the public interest.\nAny surplus of funds remaining in the water board after such payments\nhave been made shall be returned to the city for deposit in the general\nfund.\n 2. There is hereby established in the custody of the water board a\nspecial fund to be known as the local water fund. Such fund shall\nconsist of the revenues derived from the fees, rates, rents and service\ncharges established, charged and collected pursuant to this title and\nany other income earned or moneys received by the water board. Revenues\nin the local water fund shall be kept separate and shall not be\ncommingled with any other moneys in the custody of the water board. All\nmoneys, properties and assets acquired by the water board, whether as\nrevenues or otherwise, shall be held by it in trust for the purposes of\ncarrying out its powers and duties, and shall be used and reused in\naccordance with the purposes and provisions of this article.\n The water board shall deposit promptly, to the credit of the local\nwater fund, revenues collected under this article in a bank, banking\nhouse or trust company as may be designated in or pursuant to the\nagreement.\n 3. No such fee, rate, rent or other charge shall be established, fixed\nor revised unless and until the water board has held a public hearing at\nwhich the users of the water system or sewerage system, or both, as the\ncase may be, the owners of property served or to be served and others\ninterested, have had an opportunity to be heard concerning the same.\nNotice of such public hearing shall be published by the water board at\nleast twenty days before the date set therefor, in at least one\nnewspaper of general circulation in each of the areas served by the\nwater system or sewerage system, as the case may be. Such notice shall\nset forth the date, time and place of such hearing and shall include a\nbrief description of the matters to be considered at such hearing. A\ncopy of the notice shall be filed in the office of the clerk of the city\nand shall be available for inspection by the public. At all such\nhearings, any users of the water system, sewerage system, or both, as\nthe case may be, owners of property served or to be served and any other\ninterested persons shall have an opportunity to be heard concerning the\nmatters under consideration. Any decision of the water board on matters\nconsidered at such public hearing shall be in writing and be made\navailable in the office of the water board for public inspection during\nregular office hours. Such decision shall be published in at least one\nnewspaper of general circulation in each of the areas served by the\nwater system or sewerage system, as the case may be within thirty days\nafter such decision is made. The fees, rates, rents or other charges so\nestablished for any class of users of property served shall be extended\nto cover any additional premises thereafter served which are within the\nsame class, without the necessity of a hearing thereon.\n 4. The fees, rates, rents or other charges established, fixed and\nrevised from time to time by the water board shall be collected by the\nwater board at such times and in such manner as may be determined by the\nrules and regulations adopted by the water board consistent with the\nprovisions of this title.\n 4-a. (a) The water board may enter into agreements with one or more\nfinancing agencies or card issuers to provide for the acceptance by the\nwater board of credit cards as a means of payment of fees, rates, rent\nor other charges owed by a person to the water board. Any such agreement\nshall govern the terms and conditions upon which a credit card proffered\nas a means of payment of a fee, rate, rent or other charge shall be\naccepted or declined and the manner in and conditions upon which the\nfinancing agency or card issuer shall pay to the water board the amount\nof fees, rates, rent or other charges paid by means of a credit card\npursuant to such agreement. Any such agreement may provide for the\npayment by the water board to such financing agency or card issuer of\nfees for the services provided by such financing agency or card issuer\npursuant to such agreement, which fees may consist of a discount\ndeducted from or payable in respect to the amount of each such fee,\nrate, rent or other charge or otherwise as the agreement may provide.\n (b) If the water board has entered into an agreement pursuant to\nparagraph (a) of this subdivision, it may accept credit cards as a means\nof payment of fees, rates, rent or other charges, as provided in any\nagreement entered into pursuant to paragraph (a) of this subdivision and\nmay pay such fees as are specified in such agreement to such financing\nagency or card issuer in consideration of the services rendered by such\nfinancing agency or card issuer thereunder; provided, however, that the\nwater board may require any person offering a credit card as a means of\npayment of such fee, rate, rent or other charge to pay to the water\nboard a reasonable administrative service fee not to exceed the costs\nincurred by the water board in connection with such credit card\ntransaction, which costs shall include any fee payable by the water\nboard to such financing agency or card issuer.\n (c) The water board may promulgate any rules or regulations necessary\nto carry out the provisions of this subdivision.\n (d) For purposes of this subdivision, the terms "card issuer", "credit\ncard", "financing agency" and "person" shall have the same meaning as\nprovided in subdivision (a) of section five of the general municipal\nlaw.\n 5. Such fees, rates, rents or other charges, if not paid when due,\nshall constitute a lien upon the premises served and a charge against\nthe owners thereof, which lien and charge shall bear interest at the\nsame rate as would unpaid taxes of the city. Such lien shall take\nprecedence over all other liens or encumbrances, except taxes, and may\nbe foreclosed against the lot or building served in the same manner as a\nlien for such taxes. The amount which remains due and unpaid for sixty\ndays may, with interest thereon at the same rate as unpaid city taxes\nand with reasonable attorneys' fees, be recovered by the water board in\na civil action in the name of the water board against such owners. The\ncity, and any state agency shall be subject to the same fees, rates,\nrents or other charges under the same conditions as other users of such\nwater system or sewerage system, or both, as the case may be. Tax exempt\norganizations shall be charged according to the provisions of chapter\nsix hundred ninety-six of the laws of eighteen hundred eighty-seven, as\namended by chapters eight hundred ninety-three and eight hundred\nninety-four of the laws of nineteen hundred eighty and by provisions\nwhich may by law extend the provisions of such chapters from time to\ntime. Any agreement for the supply of water or sewerage services between\nthe city or an agency thereof and any other municipality or water supply\nsystem, or any administrative determination by a state agency, or any\nother arrangement in this regard, in effect at the time the water board\nshall be established, shall remain in full force and effect and be\nbinding upon the water board as if it were a party to such agreement,\ndetermination or other arrangement. All rights, powers, duties,\nobligations and functions provided by law with respect to the fixing of\ncharges or rates for the supply of water or sewerage services to users\noutside the city, including but not limited to those set forth in\narticle one of title K of chapter fifty-one of the administrative code\nof the city of New York and article eight of the environmental\nconservation law, shall be deemed to apply, as appropriate, to the water\nboard established pursuant to this title. In addition to any other\nlawful enforcement methods and pursuant to rules and regulations of the\nwater board promulgated pursuant to this title, the payment of fees,\nrates, rents or other charges for water service or sewerage service to\nany premises may be enforced by discontinuing the water service or\nsewerage service to such premises provided that such discontinuance or\ndisconnection of any supply of water or the provision of sewerage\nservice, or both, as the case may be, shall not be carried out except in\nthe manner and upon the notice as is required of a water-works\ncorporation pursuant to subdivisions three-a, three-b and three-c of\nsection eighty-nine-b and section one hundred sixteen of the public\nservice law.\n 6. The water board shall pay to the authority such amounts at such\ntimes and in such manner as may be provided in the agreement by and\namong the authority, the water board and the city consistent with the\npriorities set forth in such agreement. There is hereby created a lien,\nby this title made a statutory lien within the meaning of the uniform\ncommercial code and any other state or federal law, upon the gross\nrevenues of the water board, in favor of the payment of all amounts due\npursuant to such agreement and in the order and priority set forth\ntherein and which lien shall be a first lien upon such gross revenues.\nThe gross revenues so subject to such statutory lien shall be and remain\nsubject to such statutory lien until the payment in full of each such\nitem in accordance with such priority. Said statutory lien shall not be\nconstrued to give any holder or owner of any bond of the authority power\nto compel the sale of any water system or sewerage system, as the case\nmay be.\n 7. If there be any default by the water board in the making of the\npayments to the authority required under this section, as a result of\nthe failure by the water board to impose sufficient fees, rates, rents\nor other charges, the authority may petition for the appointment by any\ncourt having jurisdiction in any proper action of a receiver to\nadminister on behalf of the water board, under the direction of said\ncourt, the affairs of the water board in order to achieve system\nrevenues at least sufficient to make such payments; and by and with the\napproval of said court, to establish, fix and revise, from time to time,\nfees, rates, rents or other charges at least sufficient therefor in\nconformity with this title, and the resolution or trust indenture of the\nauthority providing for the issuance of its bonds and in accordance with\nsuch orders as the court shall make.\n 8. The water board shall prepare and transmit to the city on or before\nthe first day of December in each year a list of those persons or\nproperty owners within such city who are in arrears in the payment of\nfees, rates, rents or other charges for a period of sixty days or more\nafter the last day fixed for payment thereof without penalty. The list\nshall contain a brief description of the properties for which the\nservices were provided, the names of the persons liable to pay for the\nsame and the amounts chargeable to each, including penalties and\ninterest computed to the next succeeding December thirty-first. The city\nshall levy such sums against the properties liable and shall state the\namount thereof in a separate column in the annual tax rolls of such city\nunder the name of "delinquent water charges" or "delinquent sewerage\ncharges" or "delinquent water and sewerage charges" as may be\nappropriate and as may be directed by the water board. Such amounts, as\nand when collected by the commissioner of finance of the city, shall be\npaid over to the water board. All of the provisions of the tax laws of\nthe state covering the enforcement and collection of unpaid taxes of the\ncity shall apply to the collection of such unpaid fees, rates, rents or\nother charges.\n 9. Neither the public service commission, nor any city or state\nagency, shall have any jurisdiction over the water board or authority or\nany power over the regulation of the fees, rates, rents or other charges\nestablished, fixed or revised by the water board except with respect to\nthe supply of water or sewerage services to users outside the city as\nprovided in article one of title K of chapter fifty-one of the\nadministrative code of the city of New York.\n 9-a. The water board shall hold public hearings, in each borough of\nthe city of New York, prior to promulgating or fixing annual water and\nsewer rates for such city. Notice of such public hearing shall be\nconspicuously published in a newspaper of general circulation, within\neach borough, at least one week prior to the hearing.\n