N.Y. Facilities Development Corporation Act 359/68 § 8: Provisions relating to health facilities improvement program

§ 8. Provisions relating to health facilities improvement program. 1.

Municipal health facilities agency. The mayor or other chief executive

of a municipality shall designate a department, board, commission,

bureau, division or other agency or official to act on behalf of the

municipality as a municipal health facilities agency in order to

accomplish the purposes of this section and section forty-seven-d of the

private housing finance law.

2. Construction. a. The corporation shall, as agent of the state

housing finance agency, construct a health facility or health facilities

or cause such facility or facilities to be constructed, provided that:

(i) The state housing finance agency or the state medical care

facilities finance agency, as the case may be, and the municipality,

with the approval of the governing body, have entered into an agreement

which shall set forth the health facility or health facilities to be

constructed, the total estimated cost of each such facility, the

estimated date of completion thereof and the estimated annual rentals to

be paid by the municipality therefor. The agreement shall contain such

other terms and conditions as may be agreed upon and shall be subject to

the approval of the commissioner of health. Nothing herein contained

shall preclude the corporation from being a party to any such agreement.

(ii) The commissioner of health shall have certified that there has

been compliance with all requirements of article twenty-eight of the

public health law.

b. When two or more municipalities act jointly to provide a health

facility, the agreement referred to in subparagraph (i) of paragraph a

of this subdivision shall require the approval of the governing body of

each municipality and shall specify the rights, duties and obligations

of each municipality.

c. The corporation shall prepare separate specifications for and

solicit separate and independent bids on and award separate contracts on

the subdivisions of work to be performed specified in section one

hundred thirty-five of the state finance law, but the corporation in its

discretion may assign such contracts for supervision to the successful

bidder for the remaining work to be performed at the time the contracts

for the particular health facility are awarded. Each contract for the

construction of a health facility may include a provision that the

architect who designed the facility, or an architect or engineer

retained or employed specifically for the purpose of supervision, shall

supervise the work to be performed through to completion and shall see

to it that the materials furnished and the work performed are in

accordance with the drawings, plans, specifications and contracts

therefor.

d. All contracts which are to be awarded pursuant to this subdivision

shall be awarded by public letting in accordance with the following

provisions, notwithstanding the provisions of section one hundred

thirty-six, one hundred thirty-nine or one hundred forty of the state

finance law, except that the corporation in its discretion may enter

into a contract for such purposes without public letting where the

estimated expense thereof is less than ten thousand dollars.

(i) If the contracts are to be publicly let, the corporation shall

advertise the invitation to bid in a newspaper published in the

municipality in which the health facility project is situated and in

such other newspapers as will be most likely in its opinion to give

adequate notice to contractors of the work required and of the

invitation to bid. The invitation to bid shall contain such information

as the corporation shall deem appropriate and a statement of the time

and place where all bids received pursuant to such notice will be

publicly opened and read.

(ii) The corporation shall not award any contract after public bidding

except to the lowest bidder who in its opinion is qualified to perform

the work required and is responsible and reliable. The corporation may,

however, reject any or all bids, again advertise for bids, or waive any

informality in a bid if it believes that the public interest will be

promoted thereby. The corporation may reject any bid if in its judgment

the business and technical organization, plant, resources, financial

standing or business experience of the bidder, compared with the work to

be performed, justify such rejection.

(iii) The invitation to bid and the contract awarded shall contain

such other terms and conditions and such provisions for penalties as the

corporation may deem desirable.

(iv) The corporation shall require such deposits, bonds and security

in connection with the submission of bids, the award of contracts and

the performance of work as it shall determine to be in the public

interest and for the protection of the state housing finance agency or

the state medical care facilities finance agency, as the case may be,

and the municipality.

(v) The directors of the corporation shall determine when minor work

of construction, reconstruction, alteration or repair of any health

facility may be done by special order. Special orders for such work

shall be short-form contracts. No work shall be done by special order in

an amount in excess of twenty thousand dollars and a bond shall not be

required for special orders. No work shall be done by special order

unless a diligent effort has been made to obtain competition sufficient

to protect the public interest prior to selecting the contractor to

perform the work. Notwithstanding any other provision of this paragraph

work done by special order under this subparagraph may be advertised

through the regular public notification service of the office of general

services or the state register. At least five days shall elapse between

the first publication of such public notice and the date so specified

for the public opening of bids. All payments on special orders shall be

made on the certificate of the directors of the corporation. All special

orders shall contain a clause that the special order shall only be

deemed executory to the extent of the moneys available and no liability

shall be incurred by the corporation or the state beyond the moneys

available for the purpose.