N.Y. Public Authorities Law § 1226-h: Agreements among the water board, board of water supply, municipalities and the authority for the provision of projects

§ 1226-h. Agreements among the water board, board of water supply,

municipalities and the authority for the provision of projects. 1. The

authority, the water board, the board of water supply and any

municipality may enter into agreements for the purpose of providing for

the construction and financing of a project.

2. Any such agreements: (i) shall describe in sufficient detail for

reasonable identification the particular 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 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 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 project such as to provide

that the water board receive revenues at least sufficient, together with

other revenues of the water board, if any, to meet the requirements of

this title, (vi) may provide for the transfer by the board of water

supply or by any municipality to the water board pursuant to this title

of ownership of any project, (vii) may provide for the construction and

completion of such project by such municipality or the water board and

for the operation, maintenance and repair thereof, 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, (viii) shall provide for

the discontinuance or disconnection of the supply of water for

non-payment of fees, rates or other charges therefor imposed by the

water board, provided such discontinuance or disconnection of any supply

of water 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 any municipality.

3. If the city executes an agreement pursuant to this section,

relating to the financing of 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 projects 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 water board shall

have held a public hearing at which users of the project shall have had

opportunity to be heard concerning the proposed provisions thereof.

Notice of such hearing shall be published not less than ten nor more

than twenty days in advance in a newspaper or newspapers having a

general circulation in the service area as designated by the water

board.

5. Such agreement shall be effective upon the issuance by the

authority of bonds to finance the cost of constructing projects of the

city or the water board.

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 initial agreement by and between

the authority, the water board, the board of water supply and any

municipality pursuant to this section, the secretary of the water board

shall, and following the execution of any subsequent agreement by and

between the authority, the water board, the board of water supply, and

any municipality pursuant to this section may, publish a notice in

substantially the following form:

"Notice is hereby given that (here insert the parties to the

agreement) (has) (have) on the _ day of _ entered into an agreement

with the upper Mohawk valley regional water finance authority in

relation to the construction and financing of (here insert a brief

description of the water project or facility to which such agreement

relates) pursuant to the upper Mohawk valley regional water finance

authority act for the purpose of placing its water facilities on an

independent basis, imposing fees and rates on water users, which,

together with other revenues available for such purposes, 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 secretary of the water board where the same may be

examined by any interested person during regular business hours. The

validity of the 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 the state constitution or (ii) the provisions of law which

should have been complied with in relation to the authorization and

execution thereof were not substantially complied with, and an action,

suit or proceeding is commenced within sixty days after the date of this

notice."

(b) The publication authorized by this subdivision shall be in a

newspaper or newspapers having a general circulation in the service area

as designated by the water board.

(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 nor 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.