US Lawyer Database

For Lawyer-Seekers

YOU DESERVE THE BEST LAWYER

§ 1096. Powers of the authority. The authority shall have power:
  1. To sue and be sued;
  2. To have a seal and alter the same at pleasure;
  3.  To  acquire, in the name of the authority, lease, hold and dispose
of personal property or any interest therein for its corporate purposes,
including the power to  purchase  prospective  or  tentative  awards  in
connection  with  the  exercise of the power of condemnation hereinafter
granted;
  4. To purchase or lease, in the  name  of  the  authority,  any  water
supply  system,  water  distribution  system,  including  plants, works,
instrumentalities or parts thereof  and  appurtenances  thereto,  lands,
easements,  rights  in  land  and  water rights, rights-of-way, contract
rights, franchises, approaches,  connections,  dams,  reservoirs,  water
mains  and  pipe  lines,  pumping  stations  and equipment, or any other
property incidental to and included in such system or part thereof,  and
any  improvements,  extensions,  and  betterments,  situated  within the
county, or in Genesee county, or in the town or village of  Victor,  the
village  of  Bloomfield  and  the  towns  of  East Bloomfield, Canadice,
Richmond and West Bloomfield in Ontario county, or  in  the  village  of
Holley  and the towns of Clarendon and Kendall in Orleans county for the
purpose of supplying water for domestic, commercial, and public purposes
at retail to individual consumers within the county of Monroe or in  the
manner  provided by subdivision seven of this section; and as a means of
so acquiring for such purposes, and  subject  to  the  approval  of  the
public  service  commission, the authority may purchase all of the stock
of any existing  privately  owned  water  corporation  or  company,  and
thereafter,  within a reasonable time, such water corporation or company
shall be dissolved;
  5. To condemn in the name of the authority in the counties  of  Monroe
and  Genesee,  or  in  any  other  county  or  municipality specifically
enumerated in the first sentence of subdivision six of this section,  or
in  the  name  of  the  county in the case of any water facilities to be
owned and financed by the county pursuant to  subdivision  sixteen-b  of
this  section, except where located in any other county or municipality,
any water supply system, water distribution  system,  including  plants,
works,  instrumentalities,  or  parts thereof and appurtenances thereto,
lands, easements,  rights  in  land  and  water  rights,  rights-of-way,
contract  rights, franchises, approaches, connections, dams, reservoirs,
water mains and pipe lines, pumping stations and equipment, or any other
property incidental to and included in such system or part thereof,  and
any  improvements,  extensions,  and  betterments  for  the  purpose  of
supplying water for domestic, commercial, and public purposes at  retail
to  individual consumers within the counties of Monroe and Genesee or in
any other county or municipality specifically enumerated  in  the  first
sentence  of  subdivision  six  of  this section, or at wholesale in the
manner provided by subdivision seven  of  this  section.  The  authority
shall  exercise  the  power of condemnation hereby granted in the manner
provided by the eminent domain procedure law or any such  proceeding  to
condemn  may  be  instituted  by  the  authority before a justice of the
supreme court or an official referee thereof. In the  exercise  of  such
power  of  condemnation,  the  property being condemned shall be deemed,
when so determined by the authority, to be for a public use superior  to
the  public  use  in  the  hands  of  any  other person, association, or
corporation; provided, however, that the authority shall have  no  power
to condemn property the legal title to which is vested in a municipality
or  in  a private corporation owning such property primarily for its own
use, unless such  municipality  or  private  corporation  shall  consent
thereto;

  6.   To   construct   and  develop  any  water  supply  system,  water
distribution system,  including  plants,  works,  instrumentalities,  or
parts thereof, and appurtenances thereto, dams, reservoirs, water mains,
pipe  lines,  pumping  stations  and  equipment,  or  any other property
incidental  to  or  included  in  such system or part thereof within the
county of Monroe, or in Genesee county, or in the  town  or  village  of
Victor,  the  village  of  Bloomfield  and the towns of East Bloomfield,
Canadice, Richmond and West Bloomfield in  Ontario  county,  or  in  the
village  of  Holley  and  the towns of Clarendon  and Kendall in Orleans
county. To acquire, by condemnation, in the name of the authority in the
counties of Monroe and Genesee, or in any other county  or  municipality
specifically enumerated in the first sentence of this subdivision, or in
the  name of the county of Monroe in the case of any water facilities to
be owned and financed by such county pursuant to  subdivision  sixteen-b
of  this section, lands, easements, rights in land and water rights, and
rights-of-way within the counties of Monroe and Genesee, or in any other
county or municipality specifically enumerated in the first sentence  of
this  subdivision,  in the manner provided by this title; or to purchase
or lease  lands,  easements,  rights  in  land  and  water  rights,  and
rights-of-way  in  connection  therewith  within the county of Monroe or
within  Genesee  county,  or  in  any  other  county   or   municipality
specifically  enumerated  in the first sentence of this subdivision; and
to own and operate, maintain, repair, improve, reconstruct, enlarge, and
extend, subject to the provisions of this title, any of  its  properties
acquired  or  constructed  under this title, all of which, together with
the acquisition of such properties, are hereby  declared  to  be  public
purposes;
  6-a.  The  authority  shall  not exercise any of the powers granted in
subdivisions  four  and  six  of  this  section  with  respect  to   the
acquisition, purchase, leasing, construction, or development of property
outside  of  the county without first having obtained the prior approval
of such purchase, leasing, acquisition, construction, or development  of
such  property  outside  of  the county by resolution of the legislative
body of the municipality wherein the affected property  outside  of  the
county  is  located.  Notwithstanding  any inconsistent provision of any
general, special, or local law, ordinance, resolution, or  charter,  any
public  corporation  or  improvement district thereof may, by a majority
vote of its governing body, give, grant, sell, convey, lend, license the
use of, or lease to the authority any property or facilities,  including
any  water  supply  system, water distribution system, including plants,
works, instrumentalities or parts  thereof  and  appurtenances  thereto,
lands,  easements,  rights  in  land  and  water  rights, rights-of-way,
contract rights, franchises, approaches, connections, dams,  reservoirs,
water mains and pipe lines, pumping stations and equipment, or any other
property  incidental to and included in such system or part thereof, and
any  improvements,  extensions,  and  betterments  for  the  purpose  of
supplying   water   for  domestic,  commercial,  industrial  and  public
purposes, which property or facilities are useful in connection with the
exercise by the authority of its powers under this title. Any such gift,
grant, sale, conveyance, loan, license, or  lease  shall  be  upon  such
terms  and  conditions,  and for such term or terms of years, subject to
the rights of the holders of any bonds, as the authority and such public
corporation or improvement district thereof may agree.  Any  such  gift,
grant, sale, conveyance, loan, license, or lease shall not be subject to
referendum,  permissive  or  mandatory.  In  the  event  that any public
corporation  or  improvement  district  thereof  gives,  grants,  sells,
conveys,  lends, licenses the use of, or leases any water supply system,
water  distribution  system,  or  other   improvements,   extension   or

betterments  for  the purpose of supplying water, to the authority, such
public corporation or improvement district thereof may contract with the
authority to lease, borrow,  license,  operate,  maintain,  manage,  and
provide services for such facilities upon such terms and conditions, and
for  such  term  or  terms of years, subject to the rights of holders of
bonds, as the authority  and  such  public  corporation  or  improvement
district  thereof  may  agree.  The  authority,  in  furtherance  of any
purchase, conveyance, or lease of any  property  or  facility  from  any
public  corporation  or  improvement  district  thereof,  may assume the
primary responsibility for the payment of the principal and interest  on
any  bonds  or  notes  issued  by such public corporation or improvement
district thereof for such property or facility. For purposes of  section
136.00  of  the  local  finance  law,  any agreement by the authority to
assume the primary responsibility for the payment of the  principal  and
interest  on any bonds or notes issued by any such public corporation or
improvement district thereof shall, so  long  as  such  agreement  shall
continue to be honored by the authority, cause such bonds or notes to be
deemed  to  have  been  refunded,  and  any  such  public corporation or
improvement district thereof may deduct from its gross indebtedness  any
outstanding  indebtedness contracted for such property or facility to be
acquired by the authority. The net proceeds of any purchase, conveyance,
or lease of any property  or  facility  from  a  public  corporation  or
improvement  district  thereof may be used by such public corporation or
improvement district thereof for any general or specific public use;
  7. To sell water,  however  acquired,  by  volume  and  at  retail  to
individual   consumers   within  the  county  of  Monroe  for  domestic,
commercial, industrial, and public purposes, or by volume or in bulk and
at wholesale to any or all  municipalities  or  privately  owned  public
water  supply and distribution systems in such county. The fact that any
municipality has procured or is about to procure an  independent  source
of  water  supply  shall  not  prevent such municipality from purchasing
water from the authority. To sell any water not needed in such county by
volume and at retail  to  individual  consumers  within  the  county  of
Genesee,  or in the town or village of Victor, the village of Bloomfield
and the towns of East Bloomfield, Canadice, Richmond and West Bloomfield
in Ontario county, or  in  the  village  of  Holley  and  the  towns  of
Clarendon  and  Kendall  in  Orleans  county,  for domestic, commercial,
industrial, and public  purposes,  or  by  volume  or  in  bulk  and  at
wholesale to any municipality or privately owned public water supply and
distribution  system  outside  of  the  county;  provided that any costs
incurred by the authority related to the Genesee county project shall be
recovered by the authority solely from Genesee county or from rates  and
charges  collected  from  customers  within  Genesee county; and further
provided that the authority shall not sell water in any area outside  of
the  county  unless the governing board of the municipality wherein such
area is located shall enter into an agreement  with  the  authority  for
service  or  sale  of  water  by  it in such area or shall by resolution
request the authority to sell water  within  such  area.  Any  agreement
between  a  municipality outside of the county and the authority for the
sale of water to or within such municipality shall  be  subject  to  the
approval  of  the legislative body of the contiguous county wherein such
municipality is located. Not only may the  authority  sell  any  surplus
water it may have developed, but it may develop and provide a sufficient
amount  of  water  so  as  to  supply  water  outside  of  the county to
individual consumers, any municipality, or privately owned public  water
supply and distribution system;
  8.  To  purchase  water  in bulk or by volume from any person, private
corporation  or  municipality  when  necessary  or  convenient  for  the

operation  of  any water supply and distribution system developed by it,
or when necessary or convenient  for  resale  under  the  authority  and
provisions of subdivision seven of this section;
  9.  To  acquire,  hold,  use, lease, sell, transfer and dispose of any
property,  real,  personal  or  mixed,  or  interest  therein,  for  its
corporate purposes;
  10.  To make by-laws for the management and regulation of its affairs,
and subject to agreements with bondholders, rules for the sale of  water
and  the  collection of rents and charges therefor. A copy of such rules
and by-laws, and all amendments thereto, duly certified by the secretary
of the authority shall be filed in the office of the clerk of the county
and thereafter  published  once  in  two  newspapers  having  a  general
circulation   in  the  county.  Violation  of  such  rules  shall  be  a
misdemeanor, punishable by fine, not  exceeding  fifty  dollars,  or  by
imprisonment  for  not  longer  than  thirty  days,  or  both. Exclusive
jurisdiction is hereby conferred upon the local criminal courts  of  the
county, which have trial jurisdiction, to hear and determine, subject to
the  provisions  of  the  criminal  procedure law, any violation of this
title;
  11. To use the officers, employees, facilities and  equipment  of  the
county  with  the  consent of the county, paying a proper portion of the
compensation or cost;
  12. To make contracts and  to  execute  all  necessary  or  convenient
instruments,   including   evidences   of  indebtedness,  negotiable  or
non-negotiable;
  13. To enter on any lands, waterways and premises for the  purpose  of
making surveys, soundings and examinations;
  14. To borrow money and to issue negotiable bonds or notes and to fund
or  refund the same, and to provide for the rights of the holders of its
obligations;
  15. To fix rates and collect charges for the use of the facilities of,
or services rendered by, or any commodities furnished by  the  authority
such  as to provide revenues sufficient at all times to pay, as the same
shall become due, the principal and interest on the bonds  or  notes  of
the authority together with the maintenance of proper reserves therefor,
in  addition  to  paying  as  the  same  shall become due the expense of
operating and maintaining the properties of the authority together  with
proper reserves for depreciation, maintenance, and contingencies and all
other obligations and indebtedness of the authority;
  16. To enter into cooperative agreements with other water authorities,
municipalities,  or  utility  companies,  for  the  inter-connection  of
facilities, the exchange or inter-change of  services  and  commodities,
and  to  enter  into  contracts for the construction of water supply and
distribution  systems  by  the  authority  for  any  municipality  which
possesses  express  reciprocal  powers and having power to construct and
develop a water supply and distribution system,  or  contracts  for  the
construction  of  a  water  supply  and  distributions  systems  for the
authority by a municipality which possesses  express  reciprocal  powers
and   having   power  to  construct  and  develop  a  water  supply  and
distribution  system,  upon  such  terms  and  conditions  as  shall  be
determined   to  be  reasonable  including,  but  not  limited  to,  the
reimbursement of all costs of such construction, or for any other lawful
purposes necessary or desirable to effect the purposes  of  this  title,
provided,  however,  that any such agreement with a municipality located
in a county, other than Monroe county, shall be subject to the  approval
of  the  legislative  body of such county. The authority shall also have
the power to enter into contracts or agreements with other corporations,
public  or  private,  (i)  for  or  with  respect  to   the   financing,

construction,  development,  expansion  or  improvement  of  properties,
facilities, and appurtenances owned by the authority, with a part of the
capacity  or  use  of  such  properties,  facilities  and  appurtenances
utilized or to be utilized by or for the benefit of any such corporation
and  (ii)  for or with respect to the use, operation, management, repair
and maintenance of such properties, facilities, and appurtenances of the
authority, upon such terms and conditions as shall be determined  to  be
reasonable,  which  may  include,  without limitation, collection by the
authority of rents, rates or other  charges  to  pay  for  the  cost  of
construction,  including  debt  service  on obligations of the authority
issued to  finance  construction,  operation,  management,  maintenance,
repair  and  use  of such facilities; and municipalities having power to
construct and develop water supply and distribution systems  shall  have
the power to enter into contracts or agreements contemplated herein with
the  authority, including any such contract to which another corporation
is a party;
  16-a. To enter  into  a  contract  or  contracts  with  the  board  of
supervisors  of  Monroe  county  for  the  acquisition, construction and
development of a water supply and distribution system, or  any  part  or
parts thereof, on behalf of a county water district, and to contract for
the  operation  and  management  of  such  county water district, all as
provided in article five-a of the county law and article five-b  of  the
general municipal law. Such water authority shall be deemed the agent of
Monroe  county under any such contract. If such contract shall authorize
the water authority to purchase supplies or equipment  or  to  construct
public  works,  such authority shall be subject to all provisions of law
to which Monroe county would be subject in relation to  advertising  and
awarding any such contracts for supplies, equipment or public works.
  16-b.  (1)  It  is  the purpose of this subdivision to provide a means
whereby: (i) the authority shall plan,  construct,  operate  and  manage
both  the  water  properties owned by the authority and additional water
facilities to be hereafter constructed by the authority but financed and
owned by the county  so  that  such  water  properties  and  such  water
facilities  may  be operated as an integrated water system; and (ii) the
county shall finance  the  construction  of  and  own  additional  water
facilities  and  lease  the same to or otherwise make the same available
for use by the authority in order to assist the authority  in  providing
such  necessary  improvements  required  for  the operation of the water
properties of the authority (the title to which water  properties  will,
as provided by law, become vested in the county).

(2) For the purposes of this subdivision sixteen-b the term "water facilities" shall mean the acquisition, construction or reconstruction of or addition to a water supply or distribution system, whether or not including buildings, land or rights in land, original furnishings, equipment, machinery or apparatus, or the replacement of such equipment, machinery or apparatus, which water facilities are to be financed and owned by the county. For the purpose of this subdivision sixteen-b the term "water properties" means the source of water supply and the water supply and distribution system of the authority, including the plants, works, instrumentalities or parts thereof and appurtenances thereto, lands, easements, rights in land and water rights, rights of way, contract rights, franchises, approaches, connections, dams, reservoirs, water mains and pipe lines, pumping stations and equipment, and any other property, real, personal or mixed, incidental to and included in such source of supply and such system or parts thereof, and any improvements, extensions and betterments, now or hereafter constructed, acquired or made by the authority, other than the water facilities constructed by the authority but financed and owned by the county in accordance with the provisions of this subdivision.

(3) The county may, by resolution of the legislative body of such county, enter into an agreement or agreements with the authority providing: (i) that water facilities shall be constructed by the authority, which water facilities shall be financed and owned by the county and leased or otherwise made available for the use of the authority; and (ii) for the transfer to the authority for use in the execution of its corporate purposes of such water facilities hereafter financed and owned by the county in accordance with the provisions of this subdivision; provided, however, that title to such facilities shall remain in the county. Such agreement shall constitute a contract for the passing to and vesting in the county of all rights and properties, including water properties, of the authority when all liabilities of the authority, other than its liabilities to the county pursuant to any agreements entered into pursuant to this subdivision, and the bonds of the authority have been paid in full or such liabilities or bonds have otherwise been discharged. Such agreement or agreements may be amended, modified, changed or extended by supplemental agreements authorized and executed in the same manner as the original agreement provided that the provisions of any such supplemental agreement shall not be inconsistent with the provisions of this subdivision sixteen-b.

(4) Such agreement shall provide that until the rights and properties, including the water properties, of the authority shall pass to and be vested in the county as provided by law, the authority shall act as the agent of the county: (i) to provide water facilities deemed necessary by the authority (a) to provide a supply of water sufficient to serve all customers of the water properties of the authority and of the water facilities of the county operated and managed by the authority, or (b) water facilities for the distribution of water deemed necessary by the authority to serve the territory of the authority within the county; and (ii) to operate, manage, replace, maintain and repair such water facilities in conjunction with the water properties of the authority so that both the water properties of the authority and the water facilities owned and financed by the county shall be planned, operated and managed as an integrated water system.

(5) Such agreement shall provide for the transfer to and use by the authority of such water facilities by lease, license or other arrangement until such time as all rights and properties, including water properties, of the authority shall pass to and be vested in the county as provided by law and shall authorize the authority to take jurisdiction, control, possession and supervision of such water facilities and operate, manage, replace, maintain and repair the same together with the water properties of the authority as an integrated water system.

(6) Such agreement shall provide that the county shall pay an amount not to exceed twenty-seven million dollars to provide certain water facilities to be owned by the county and leased to or otherwise made available for use by the authority in accordance with the provisions of such agreement, which water facilities shall be described in terms sufficient for identification in the first agreement so executed by and between the county and the authority. The county may issue obligations pursuant to the local finance law in an amount not to exceed twenty-seven million dollars to pay the cost of such water facilities. The provisions of section four hundred of the county charter prohibiting the financing of permanent improvements by the issuance of obligations pursuant to the local finance law unless such permanent improvements are included in a budget of permanent improvements adopted and approved as provided by such section four hundred shall not be applicable to the financing of such water facilities by the issuance of such obligations of the county authority by this paragraph.

(7) Such agreement shall provide that the authority shall pay to the county for each fiscal year of the county an annual rental for the use of the water facilities financed and owned by the county which shall be an operating expense of the authority, and shall be equal to the sum of the following: (i) the principal of any bonds of the county becoming due in such fiscal year issued in accordance with any agreement entered into pursuant to this subdivision; and (ii) the interest on any obligations of the county, including bonds and notes, issued in accordance with any such agreement and becoming due in such fiscal year. Such agreement shall provide such further details as the parties deem necessary with respect to the time and manner of the payment of such annual rentals in order to assure that such annual rentals shall be available to the the county at the times and in the amounts required for the payment of such principal of bonds of the county and such interest on obligations of the county. Notwithstanding that the payment of such annual rentals shall be an operating expense of the authority, such agreement may provide that payment thereof shall be subordinate to all or any of certain payments hereinafter described required to be made by a certain trust indenture between the authority and a trustee dated as of February first, nineteen hundred fifty-nine. Such payments are the payments required to be made by said trust indenture to the debt service fund and the debt service reserve fund both created by such indenture.

(8) Such agreement shall provide that to facilitate the further acquisition, construction, reconstruction, extension or betterment of water facilities by the authority to be owned and financed by the county, other than and in addition to the water facilities to be financed by the county pursuant to the provisions of paragraph (6) of this subdivision, the authority, on or before September first in each year or on or before such earlier date in each year as such agreement may provide, may submit to the county manager a capital budget for the calendar year beginning on the succeeding January first of such proposed water facilities and the estimated cost thereof. Such capital budget shall be accompanied by a report of the consulting engineers retained by the authority pursuant to a certain trust indenture of the authority dated as of February one, nineteen hundred fifty-nine. Such report of the consulting engineers shall explain the need for or desirability of such proposed water facilities and shall state that the consulting engineers have approved the estimated cost thereof. Such capital budget of the authority and report of such consulting engineers shall describe such proposed water facilities in terms sufficient for identification. When received by the county manager, such capital budget of the authority and the report of the consulting engineers shall be used in the preparation of the budget of permanent public improvements of the county required to be prepared by section four hundred of the Monroe county charter in the same manner as if the providing of such additional water facilities originally were proposed by the county. The county shall pay the cost of any water facilities contained in a budget of permanent improvements after such budget has been adopted. At any time after the adoption of such budget of permanent improvements the county may finance any water facilities contained therein pursuant to the provisions of and in the manner provided by the local finance law. Notwithstanding any other provisions of this subdivision, in the event that any item for the providing of water facilities contained in the capital budget and report of the consulting engineers as submitted to the county manager shall not be made a part of the budget of permanent improvements of the county, the authority may, nevertheless, proceed to construct such proposed water facility as an addition to the water properties of the authority and finance the same by the issuance of obligations of the authority, subject, however, to: (i) the provisions of any resolutions or trust indentures heretofore or hereafter adopted or executed by the authority, as the case may be, with respect to the construction of water properties and the financing thereof by the authority; and (ii) the limitations, if any, on the issuance of bonds or obligations by the authority contained in any agreement executed pursuant to this subdivision sixteen-b.

(9) Such agreement may contain further provisions concerning the following, provided, however, that no provisions in any agreement or any supplemental agreement thereto shall require the authority to in any way impair the rights and remedies of the holders of obligations of the authority pursuant to any resolution or trust indenture of the authority heretofore adopted or executed authorizing or securing obligations of the authority: (i) further provisions relating to the annual rentals due by the authority to the county as provided in this subdivision; (ii) provisions that the rates, fees, rentals and other charges for the sale or distribution of water or for other services rendered by the water properties of the authority shall be in an amount sufficient to fully comply with any covenants with holders of obligations of the authority and in addition sufficient to pay the annual rentals payable by the authority to the county as provided in this subdivision and in any agreements or supplemental agreements executed in accordance with the provisions of this subdivision; (iii) provisions limiting the issuance of bonds or obligations by the authority; (iv) provisions limiting the power of the authority to sell or otherwise dispose of its water properties without the consent of the county; (v) providing that when the rights and properties of the authority shall pass to and be vested in the county as provided by law the authority shall act as the agent of the county to plan, construct, operate and manage the water properties and water facilities then vested in and owned by the county for such term and extensions of such term as may be provided by any such agreements; and (vi) such other provisions not inconsistent with the provisions of this subdivision sixteen-b as the parties shall deem necessary or desirable to implement the purpose and provisions of this subdivision sixteen-b.

(10) The proceeds of sale of obligations of the county issued pursuant to any agreement entered into pursuant to this subdivision shall be subject to the provisions of section one hundred sixty-five of the local finance law and shall be paid and disbursed by the director of finance of the county on requisition by the authority or such person or persons as the authority may authorize to make such requisitions without further audit; provided, however, that the director of finance of the county may require that such requisitions shall be accompanied by properly itemized and verified or certified bills for materials, supplies or services.

(11) All contracts for the purchase of supplies or equipment or the construction of water facilities entered into with respect to the providing of water facilities to be financed and owned by the county and constructed by the authority shall be subject to all provisions of law which the county of Monroe would be subject to in relation to advertising and awarding any such contracts for supplies, equipment or the construction of water facilities

(12) The provisions of this subdivision sixteen-b shall be independent and cumulative power for the authority and the county to enter into the agreements authorized hereby and shall not be construed with or be limited by any of the provisions of article five-a of the county law and of this article of the public authorities law. 17. To accept grants, loans or contributions from the United States, the state of New York, or any agency or instrumentality of either of them, or the county, or an individual, by bequest or otherwise, and to expend the proceeds for any purposes of the authority; 18. To do all things necessary or convenient to carry out the powers expressly given in this title. 19. To contract for the purposes of subdivision twenty-four of section ten of article two of the highway law. In exercising the powers granted by this title, the authority shall not sell water in any area which is served by a water system owned or operated by a municipality unless the governing board of such municipality shall adopt a resolution requesting the authority to sell water in such area.