§ 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.
