N.Y. Public Authorities Law § 1085: Contracts for sale of water wholesale

§ 1085. Contracts for sale of water wholesale. Any municipality is

hereby authorized to contract with the authority for the purchase of

water from the authority at wholesale for a period not exceeding thirty

years except that, in the case of a fire protection district or a fire

alarm district such period shall not exceed five years, and in the case

of a fire district, such period shall not exceed ten years. Such

contract shall provide that the liability of such purchaser for the

payment of any sums pursuant to such contract shall arise only at such

time as such water has been actually delivered to such purchaser. Such

contract shall state the rates, fees or charges to be paid for such

water, shall provide for the adjustment thereof either by increase or

decrease from time to time by mutual agreement of the parties thereto,

subject however to any provisions contained in any resolution of the

authority authorizing obligations relating to the imposition of rates,

fees or charges and the revision or adjustment thereof. Prior to the

execution of such contract the governing board of any such purchaser

shall call a public hearing to consider the subject matter and the

desirability of the execution of the proposed contract and shall publish

notice thereof in a newspaper of general circulation in the territorial

boundaries of such purchaser, at least once and not less than fifteen

days before the date of such public hearing. Such notice shall briefly

state the terms of the proposed contract, the date and place of the

public hearing and further state that at such time and place the

governing board will hear all persons interested. If after considering

the evidence adduced at such hearing, such governing body shall conclude

that the execution of such contract is in the public interest it may

authorize the execution thereof by the adoption of a resolution to such

effect.