N.Y. Public Authorities Law § 1680-a: Judicial facilities in certain counties

§ 1680-a. Judicial facilities in certain counties. 1. In order to

effectuate the purposes of this title, the following provisions shall

apply to the authority and any county, within the tenth judicial

district, that does not contain a city (a "county") in connection with

the provision of judicial facilities;

(a)(1) Any county for whose use judicial facilities are to be

designed, constructed, reconstructed, rehabilitated, improved or

otherwise provided may enter into a lease, sublease or other agreement

for the provision of judicial facilities with the authority in

accordance with the provisions of either paragraph b or c of this

subdivision and otherwise upon such terms and conditions as the

authority and the county shall determine to be reasonable, including,

but not limited to, the reimbursement to the authority of all costs of

such design, construction, reconstruction, rehabilitation or improvement

and claims arising therefrom and provisions setting forth or providing

for the calculation of rental and other payments for the use and

occupancy of such judicial facilities, which payment shall be at least

sufficient to pay the principal of and interest on the bonds of the

authority issued to finance the cost of the design, construction,

reconstruction, rehabilitation, or improvement of such judicial

facilities and the fees and expenses of the authority incurred in

connection therewith.

(2) Such lease, sublease or other agreement shall not be deemed to be

a contract for public work or purchase within the meaning of the general

municipal law.

(3) Such lease, sublease or other agreement shall provide that if the

authority undertakes to design, construct, reconstruct, rehabilitate,

improve, furnish or equip any judicial facilities for a county, any

contract or contracts for the construction, reconstruction,

rehabilitation, improvement of judicial facilities shall be awarded

based upon the authority's evaluation of proposals submitted to the

authority in response to a request for proposals. Such request for

proposals shall be prepared in accordance with standards to be developed

by the authority designed to assure the award of all contracts to

contractors evidencing proven experience with projects of the scope,

magnitude and complexity of the judicial facilities that are the subject

of the contract and the ability to perform all work required in a

professional and timely manner. The procedures governing the request for

proposals shall assure that, wherever practicable, responsible

contractors, meeting the above criteria, located or regularly doing

business in the county for whose benefit the judicial facilities are to

be provided are given the opportunity to be considered. Any contract or

contracts for the purchase of furnishings and equipment shall be awarded

to the lowest responsible bidder in accordance with the provisions of

section one hundred three of the general municipal law.

(4) Any such lease, sublease or other agreement entered into pursuant

to this paragraph (a) may provide that the provisions thereof shall

remain in force and effect until the issue of bonds of the authority to

which it relates, together with interest thereon, interest on any unpaid

installments of interest and the fees and expenses of the authority, are

fully met and discharged, and any payments to be made by a county may be

pledged by the authority to secure such bonds.

(5) A county entering into such a lease, sublease or other agreement

is hereby authorized to raise and appropriate such sums as shall be

necessary from time to time to make any payment pursuant thereto.

(6) Any lease, sublease or other agreement entered into by the

authority and a county may provide that at the termination thereof the

title to the judicial facilities shall vest in the county, free and

clear of any indebtedness contracted by the authority.

(b) (1) A lease, sublease or other agreement entered into pursuant to

this paragraph shall be executory only to the extent of moneys

appropriated and available therefor, be for the periods agreed by the

parties thereto, but not exceeding thirty years.

(2) The annual payment obligation pursuant to a lease, sublease or

other agreement entered into pursuant to this paragraph shall not be

deemed to be "indebtedness" for the purpose of determining the gross

indebtedness of a county pursuant to the provisions of section 135.00 of

the local finance law or section ten of article eight of the state

constitution nor shall it be deemed an evidence of indebtedness within

the meaning of section 20.00 of the local finance law.

(c) (1) A lease, sublease or other agreement entered into pursuant to

this paragraph may be for the periods agreed by the parties thereto, but

not exceeding thirty years which is hereby determined to be the period

of probable usefulness of any judicial facilities authorized to be

provided pursuant to this title, which term shall be computed from the

date of the first indebtedness contracted by the authority for such

judicial facilities.

(2) The portion of the annual payment obligation to be made by a

county to the authority pursuant to any lease, sublease or other

agreement entered into pursuant to this paragraph to enable the

authority to pay the principal of any indebtedness contracted by it to

finance the cost of such judicial facilities shall commence within two

years after any such indebtedness or portion thereof shall have been

contracted and no such portion of the annual payment obligation shall be

more than fifty per centum in excess of the smallest prior portion of

the annual payment for such purpose.

(3) The county shall pledge its faith and credit for the payment of

the portion of the annual payment described in subparagraph two of this

paragraph and also for the payments required to be made to the authority

to enable it to pay the interest on such indebtedness.

(4) The total amount of all unpaid annual payments in relation to the

principal of any such indebtedness for which the county has pledged its

faith and credit shall be deemed to be indebtedness of the county for a

capital improvement within the meaning of subparagraph b of subdivision

three of paragraph a of section 135.00 of the local finance law.

(5) The portion of the annual payment by a county to the authority to

enable the authority to pay the principal of any indebtedness contracted

by it to finance the cost of such judicial facilities for which a county

has pledged its faith and credit and the portion of the annual payment

by a county to the authority to enable the authority to pay interest on

any indebtedness contracted by it to finance the cost of such judicial

facilities shall be deemed to be "indebtedness" and "interest" within

the meaning of section ten of article eight of the state constitution.

(d) (i) In the event that a county for whose use judicial facilities

are to be or have been provided fails to make its required payment, in

whole or in part, to the authority pursuant to any lease, sublease or

other agreement, the authority shall certify to the state comptroller

that such county has failed to make such payment. Such certificate shall

set forth the exact amount of payment required to satisfy the

obligations of such county and the date such payment was due.

(ii) The state comptroller, upon receipt of such certificate from the

authority, shall withhold from the next succeeding payment or payments

of state aid or local assistance payable to such county for whose use

judicial facilities are to be or have been provided, the amount of the

deficiency set forth in such certificate and shall thereafter

immediately pay over to the authority the amount so withheld.

(iii) The provisions of this paragraph shall not apply in any case

where either the payment of the principal of or interest on bonds issued

by the authority for the purpose of financing the design, construction,

acquisition, reconstruction, rehabilitation and improvement, and the

furnishing and equipping of judicial facilities for a county or the

payment of the obligations of any such county are secured by a policy of

municipal bond insurance, an irrevocable letter of credit, or other

financial guarantee or credit enhancement provided by a bank, insurance

company or other financial institution. Any such policy of municipal

bond insurance, letter of credit, or other financial guarantee or credit

enhancement shall be approved by the authority and notice of such

approval shall be provided to the state comptroller.

(e) The provisions of this title may be utilized by a county,

notwithstanding the provision of any general or special law, or county

charter that (i) requires that any project must be constructed,

reconstructed, rehabilitated or improved, operated and maintained by the

county, (ii) limits the period of time for which a county may enter into

a lease, sublease or otherwise agree, (iii) limits the period of time

for which a county may lease its real property to any other entity,

including the authority, a county being hereby authorized to lease its

real property to the authority for any period of time as the county and

the authority may agree where such real property will constitute the

site on which judicial facilities for the use of such county will be

constructed, reconstructed, rehabilitated or improved, (iv) requires

that the cost shall be paid for by taxes levied for the fiscal year in

which the expenditure is to be made, (v) requires that the cost shall be

financed pursuant to the local finance law, or (vi) only permits any

such project to be constructed, reconstructed, rehabilitated or improved

subject to either mandatory or permissive referendum.

2. The state hereby covenants with the holders from time to time of

bonds issued by the authority to pay the cost of the design,

construction, reconstruction, rehabilitation or improvement of judicial

facilities pursuant to this section that it will not limit, impair or

impede the rights and remedies granted hereby to such holders; provided,

however, that nothing in this paragraph contained shall be deemed or

construed as giving or pledging the credit of the state or as requiring

the state to continue the payment of any specific type or types of state

aid or local assistance to a county, within the tenth judicial district,

that does not include a city for whose benefit judicial facilities are

to be or have been provided or as limiting or prohibiting the state from

repealing or amending any law heretofore or hereafter enacted relating

to state aid and local assistance to such county, the manner and time or

payment or apportionment thereof, or the amount thereof, nor shall such

bonds be a debt of the state and the state shall not be liable thereon.