N.Y. Public Authorities Law § 1096: Powers of the authority

§ 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.