§ 1285 — Special powers of the corporation

§ 1285. Special powers of the corporation. In order to effectuate the\npurposes of this title, the corporation shall have the following special\npowers:\n 1. Construction, operation and maintenance of sewage treatment works,\nsewage collecting systems and solid waste disposal facilities on behalf\nof a municipality. (a) The corporation and any municipality having power\nto construct sewage treatment works, sewage collecting systems or solid\nwaste disposal facilities by resolution of its governing body may enter\ninto a contract for the construction of sewage treatment works, sewage\ncollecting systems or solid waste disposal facilities by the corporation\nfor such municipality upon such terms and conditions as the corporation\nshall determine to be reasonable, including but not limited to the\nreimbursement of all costs of such construction and claims arising\ntherefrom.\n (b) The corporation and any municipality having power to operate and\nmaintain sewage treatment works or solid waste disposal facilities by\nresolution of its governing body may enter into a contract for the\noperation and maintenance of sewage treatment works or solid waste\ndisposal facilities by the corporation for such municipality upon such\nterms and conditions as the corporation shall determine to be\nreasonable, including but not limited to the reimbursement of all costs\nof such operation and maintenance and claims arising therefrom.\n (c) No such contract shall be deemed to be a contract for public work\nor purchase within the meaning of the general municipal law.\n (d) The corporation and any state agency having the power may enter\ninto a contract for the planning, construction, operation and\nmaintenance of sewage treatment works, sewage collecting systems, solid\nwaste disposal facilities, and for the removal, disposal and remediation\nof petroleum storage tanks and the remediation of the sites thereof, as\nthe case may be, for and on behalf of such state agency; the corporation\nand any such state agency may enter into a contract pursuant to which\nthe corporation may provide for the collection, conveyance, treatment\nand disposal of sewage, storage, separating, treatment, recycling,\nreconstituting, compacting, composting, shredding, converting,\nutilization, processing, pyrolization or final disposal of solid waste\nby means of sewage collecting systems, sewage treatment works, or solid\nwaste disposal facilities, as the case may be, owned, constructed,\noperated and maintained by the corporation. Any such contract entered\ninto by any such state agency and the corporation for the purposes of\nremoval, disposal and remediation of petroleum storage tanks and the\nremediation of the sites thereof, may provide for ownership,\nconstruction, operation and maintenance of such projects by the\ncorporation or by any such state agency and any such contract shall be\nsubject to the approval of the director of the budget. Any such contract\nor contracts shall be upon such terms and conditions as the corporation\nand such state agency shall determine to be reasonable, including but\nnot limited to the reimbursement of all costs of planning, financing,\nconstruction and operation and maintenance, and any claims arising\ntherefrom. No such contract shall be deemed to be a contract for public\nwork or purchase within the meaning of the state finance law.\n 2. Loans to municipalities and certain state agencies. The corporation\nmay make loans to any municipality, or any state agency authorized to\nissue bonds or notes not constituting a debt or liability within the\nmeaning of section eleven of article seven of the state constitution,\nfor the construction of any sewage treatment works, sewage collecting\nsystem or solid waste disposal facility. Any loan by the corporation to\nany such state agency shall be subject to the approval of the director\nof the budget. The corporation may accept as evidence of the\nindebtedness of any such municipality or any state agency authorized to\nissue bonds or notes not constituting a debt or liability of the state\nwithin the meaning of section eleven of article seven of the state\nconstitution, only the municipal bonds or notes of such municipality or\nbonds or notes of such state agency. Any such loan shall be in an amount\nor amounts not to exceed the cost of construction of any such sewage\ntreatment works, sewage collecting system or solid waste disposal\nfacility required to be financed by the municipality or such state\nagency. In connection with the making of any such loans, the corporation\nmay fix and collect such fees and charges, including but not limited to\nreimbursement of all costs of financing by the corporation, as the\ncorporation shall determine to be reasonable.\n 3. Construction, operation and maintenance of sewage collecting\nsystems, sewage treatment works and solid waste disposal facilities. (a)\nThe corporation and a municipality having power to construct, operate\nand maintain sewage treatment works, sewage collecting systems or solid\nwaste disposal facilities, by resolution of its governing body may enter\ninto a contract pursuant to which the corporation may provide for the\ncollection, conveyance, treatment and disposal of sewage or the storage,\nseparating, treatment, recycling, reconstituting, compacting,\ncomposting, shredding, converting, utilizing, processing, pyrolization\nor final disposal of solid wastes by means of sewage treatment works or\nsolid waste disposal facilities, as the case may be, owned and\nconstructed by the corporation and operated and maintained by the\ncorporation or, for and on behalf of the corporation, by such\nmunicipality or by any person, as may be approved by the corporation and\nsuch municipality, and by means of sewage collecting systems owned and\nconstructed by the corporation for and on behalf of such municipality\npursuant to a contract whereby title to such sewage collecting systems\nshall vest in such municipality in accordance with the provisions of\nparagraph (c) of this subdivision, and operated and maintained by such\nmunicipality upon such terms and conditions as the corporation shall\ndetermine to be reasonable. Such contract or contracts shall, except in\nthe case of a sewer corporation now existing in a city, contain\nprovisions in accordance with the requirements of paragraph (b) or (c)\nof this subdivision, and, in addition thereto and consistent therewith,\nmay provide for the payment to the corporation by such municipality,\nannually or otherwise, of such sum or sums of money, computed at fixed\namounts or by a formula based on any factors or other matters or in any\nother manner, as said contract or contracts may provide, and the sum or\nsums so payable may include provision for all or any part or a share of\nthe amounts necessary (i) to pay or provide for the expense of operation\nand maintenance of any such project including, without limitation,\ninsurance, extensions, betterments and replacements and the principal of\nand interest on any bonds or notes of the corporation, and (ii) to\nprovide for any deficits resulting from failure to secure sums payable\nto the corporation by such municipality, any other municipality or from\nany other cause, and (iii) to maintain such reserves or sinking funds\nfor any of the foregoing as may be required by the terms of any contract\nof the corporation or as may be deemed necessary or desirable by the\ncorporation. Such contract or contracts may also contain provisions as\nto the financing and payment of expenses to be incurred by the\ncorporation and determined by it to be necessary for its purposes prior\nto the placing in operation of any such project, and may provide for the\npayment by such municipality to the corporation for application to such\nexpenses or indebtedness therefor such sum or sums of money, not in the\naggregate exceeding an amount stated or otherwise limited in said\ncontract or contracts, plus interest thereon, as said contract or\ncontracts may provide and as the governing body of said municipality\nshall, by virtue of its authorization of and entry into said contract or\ncontracts, determine to be necessary for the purposes of the\ncorporation. Except as otherwise provided in this subdivision, any such\ncontract may be made with or without consideration and for a specified\nor an unlimited time and on any terms and conditions which may be\napproved by such municipality and which may be agreed to by the\ncorporation in conformity with its contracts with the holders of any of\nits bonds or notes, and shall be valid whether or not an appropriation\nwith respect thereto is made by such municipality prior to authorization\nor execution thereof. The corporation may sell, transfer or dispose of,\nin any manner it deems desirable any materials, substances or sources or\nforms of energy derived from any corporate activity, including but not\nlimited to sludge, raw materials, by-products; heat, oil, steam or\nelectric energy in accordance with any contract pursuant to this\nparagraph or pursuant to paragraphs (b) and (d) of subdivision one of\nsection twelve hundred eighty-five of this title. Such municipality is\nhereby authorized to do and perform any and all acts or things\nnecessary, convenient or desirable to carry out and perform every such\ncontract and to provide for the payment or discharge of any obligation\nthereunder in the same manner as other obligations of such municipality.\nSubject to any such contracts with the holders of its bonds or notes,\nthe corporation is hereby authorized to do and perform any and all acts\nor things necessary, convenient or desirable to carry out and perform\nevery such contract and, in accordance with any such contract to waive,\nmodify, suspend or reduce charges which would otherwise be charged and\ncollected by the corporation within the municipality.\n A municipality shall not be liable for any act or omission of the\ncorporation, its officers, agents, servants or contractors in the\nperformance of any such contract by the corporation.\n (b) Except as provided in paragraph (c) of this subdivision, any\ncontract entered into by the corporation and any municipality, other\nthan a sewer corporation now existing in a city, pursuant to this\nsubdivision shall provide that the municipality shall not acquire any\nvested rights in any such works or facility by reason of such contract,\nand, in the case of a county, city, or village, that all or any portion\nof the annual payments, as the case may be, made by such municipality,\nshall be deemed to be current operating expenses of such municipality\nwithin the meaning of section ten of article eight of the state\nconstitution where all or any portion of such payments are or may be\nrequired to be raised by tax on real estate in any fiscal year of such\nmunicipality.\n (c) Any contract entered into by the corporation and any municipality\npursuant to this subdivision may provide that at the termination thereof\nthe title to the works or facility shall vest in the municipality or its\nsuccessor in interest, if any, free and clear of any indebtedness\ncontracted by the corporation. Any such contract entered into by the\ncorporation and any municipality which provides that title shall so vest\nin the municipality or its successor in interest, other than a sewer\nauthority now existing in a city, shall be subject to the following\nprovisions:\n (1) The term of any such contract shall not exceed the period of\nprobable usefulness of the works or facility as provided in section\n11.00 of the local finance law, computed from the date of the first\nindebtedness contracted by the corporation for such works or facility.\n (2) The annual payments to be made by the municipality to the\ncorporation to enable the corporation to pay the principal of any such\nindebtedness contracted by it to finance the cost of such works or\nfacility shall commence within two years after any such indebtedness or\nportion thereof shall have been contracted and no such annual payment\nshall be more than fifty percentum in excess of the smallest prior\nannual payment for such purpose.\n (3) The municipality shall pledge its full faith and credit for the\npayment of such annual payments described in subparagraph two of this\nparagraph (c) and also for the payments required to be made to the\ncorporation to enable it to pay the interest on any such indebtedness.\n (4) The total amount of any unpaid annual payments in relation to the\nprincipal of any such indebtedness shall be deemed to be indebtedness of\nthe county, city, town or village for a capital improvement within the\nmeaning of subparagraph (b) of subdivision three of paragraph a of\nsection 135.00 of the local finance law or indebtedness contracted by a\ndistrict corporation pursuant to subdivision seven of paragraph a of\nsuch section 135.00, as the case may be.\n (5) The total amount of any unpaid annual payments in relation to the\nconstruction or reconstruction of facilities for the conveyance,\ntreatment and disposal of sewage shall be deemed to be indebtedness of\nthe county, city, town or village within the meaning of subdivision\nfour-a of section 136.00 of the local finance law.\n (6) The annual payments by a county, city or village in relation to\nsuch indebtedness and interest shall be deemed to be "indebtedness" and\n"interest" within the meaning of section ten of article eight of the\nstate constitution.\n (7) The contract shall not be renegotiated, or amended, in such manner\nas to constitute a refunding within the meaning of section two of\narticle eight of the state constitution.\n (8) The contract shall not be applicable to any works or facility\nconstructed or reconstructed to effectuate the purposes of article\neighteen of the state constitution.\n (9) The municipality shall not be liable for a default on the\nobligations of the corporation. If the expenditure of money, or the\nissuance of obligations, for a project would be subject to the adoption\nof a proposition pursuant to paragraph b of section 38.00 of the local\nfinance law, a contract between a district corporation and the\ncorporation pursuant to the provisions of this paragraph (c) shall be\nsubject to approval at an election or meeting in the same manner as\nprovided in such section 38.00.\n In the case of a district corporation subject to the provisions of\nsection 102.00 of the local finance law, the annual payments to be made\nto the corporation to enable it to pay the principal of any indebtedness\ncontracted by it to finance the cost of the project shall be deemed to\nbe indebtedness within the meaning of such section and section 120.00 of\nsuch law and any contract entered into between the district corporation\nand the corporation pursuant to the provisions of this paragraph (c)\nshall be subject to the consent of the city, town or village affected as\nprovided in such section 102.00.\n A contract pursuant to the provisions of this paragraph (c) shall be\ndeemed to be an issuance of bonds, bond anticipation notes or capital\nnotes for the purposes of subdivisions three, four, five, and seven of\nsection 104.10 of the local finance law insofar as the contract shall\nprovide for annual payments to the corporation to enable it to pay the\nprincipal of indebtedness contracted by it to finance the cost of any\nproject.\n (d) Where a county, city, town or village is prevented from utilizing\nthe provisions of this subdivision, by the provision of any general or\nspecial law, county, city or village charter which (i) requires that any\nproject must be constructed, operated and maintained by the\nmunicipality, (ii) limits the period of time for which a municipality\nmay contract, (iii) requires that the cost shall be paid for by taxes\nlevied for the fiscal year in which the expenditure is to be made, (iv)\nrequires that the cost shall be financed pursuant to the local finance\nlaw or (v) only permits any such project to be constructed subject to\neither mandatory or permissive referendum, such county, city, town or\nvillage may adopt a local law superseding the provisions of any such\ngeneral or special law, county, city or village charter. Any such local\nlaw shall be subject to mandatory referendum, or referendum on petition\nin the manner provided in sections twenty-three or twenty-four, as the\ncase may be, of the municipal home rule law, if the issuance, or the\nresolution authorizing the issuance, of serial bonds having a maturity\nof more than ten years to finance any such project would be required,\nunder or pursuant to the provisions of sections 33.10, 34.00, 35.00 or\n36.00 of the local finance law or any other law, to be subject to\nmandatory or permissive referendum.\n 4. The corporation is empowered to lease or rent a project constructed\nand owned by the corporation pursuant to any contract with a\nmunicipality or state agency as herein provided for, to any person, as\nmay be approved by the municipality or state agency. The corporation may\nmake available the use or services of any such project, with the\napproval of such municipality or state agency, to one or more persons,\nor any combination thereof, upon such terms and conditions as the\ncorporation may determine reasonable.\n 5. When requested by the governing body of a municipality, or when\nrequested by a person or state agency, the corporation may advise such\nmunicipality, person or state agency on matters relating to the\nplanning, construction, operation and maintenance of sewage treatment\nworks, sewage collecting systems, solid waste disposal facilities, and\nany other projects which the corporation is authorized to construct\npursuant to any provisions of this title, on matters relating to the\nidentification, collection, handling, separation and disposal of waste,\nand on matters relating to the prevention and control of air emissions\nand water discharges subject to regulation pursuant to the environmental\nconservation law, and pursuant to a contract with a municipality, person\nor state agency, may render technical assistance and may undertake\nresearch, planning and testing with respect to any such matter, and the\ncorporation may make a reasonable charge to such municipality, person or\nstate agency for the performance of any such functions authorized by\nthis subdivision.\n 6. In selecting a location for any projects constructed pursuant to\nsubdivision one or subdivision three of this section, the corporation\nshall take into consideration the character of the area of any proposed\nlocation and the zoning regulations, if any, applicable to such area.\n 7. When requested by the governing body of a municipality or by a\nstate agency, any contract pursuant to either subdivision one or\nsubdivision three of this section, except a contract pursuant to which\nthe municipality shall not acquire a vested interest in the project, may\nprovide as part of a project and upon the site of such project, for the\nconstruction and financing, pursuant to the provisions of this title, by\nthe authority of such other facilities, betterments, improvements and\nappurtenances for which such municipality or state agency has the power\nto provide. Such construction and financing shall be permitted when\nnecessary to develop or restore such site to a beneficial municipal or\npublic use, and in accordance with the plans or design of the project\nprepared and approved by such municipality or state agency, or as may be\nprepared by the corporation on behalf of such municipality or state\nagency.\n 8. The corporation is empowered to enter into one or more contracts\nwith any person designated by the corporation to be a responsible agent\nfor the planning, design, construction and operation of one or more\nsolid waste processing pilot projects. The corporation shall require\nsuch person to supply it with such plans, estimates of costs, time\nschedules, designs, and other data as the corporation shall determine to\nbe reasonable to enable proper identification of costs. Such pilot\nprojects are to determine which methods of recycling solid wastes,\nincluding, but not limited to shredding, compression, high-temperature\nincineration, pyrolization, separation or any other new technology for\nresource recovery in solid waste management are most feasible for\nlarge-scale implementation by the corporation and by municipalities in\nthis state, having due regard for the resources to be recovered, net\ncosts, amount of land required, and environmental considerations. The\ncorporation shall issue annual reports as to the results of these\nprojects, containing recommendations not inconsistent with those\nfindings, and shall make copies of the report, findings and supporting\ndata available to any municipality in this state. For this purpose the\ncorporation is authorized to apply to the United States Public Health\nService, Environmental Protection Agency, United States Department of\nAgriculture, or any other appropriate authority for grants of such\nfederal funds as may be available toward the financing of or contracting\nfor such projects.\n The corporation shall transmit a copy of its report to the\ncommissioner of environmental conservation, who shall hold public\nhearings on its recommendations, pursuant to section 3-0301 of the\nenvironmental conservation law, at which hearings testimony shall be\ntaken from all interested parties. Following the termination of said\nhearings, the department of environmental conservation may make\nadditional findings, if any, and shall have the power to promulgate\nrules and regulations and/or propose legislation, consistent with its\nfindings, to implement the report.\n