Section 51-0305. Contracts for water quailty improvement projects

1.  The  commissioner,  in  the  name  of  the  state,  may enter into
  contracts with municipalities having power  to  construct,  operate  and
  maintain  sewage  treatment  works,  and any such municipality may enter
  into a contract with the commissioner concerning eligible projects.  Any
  such  contract  may include such provisions as may be agreed upon by the
  parties  thereto,  and  shall  include,  in  substance,  the   following
  provisions:
    a.  Current  estimate  of  the  reasonable  cost  of  the  project  as
  determined by the commissioner at the time of execution of the contract.
  The commissioner shall not be precluded by section two hundred twenty of
  this title from determining a reasonable cost for any project enumerated
  in such section different from the estimated cost of such section.
    b. An agreement by the commissioner to pay to the municipality, during
  the  progress  of  construction  subject  to   final   computation   and
  determination  of  the  total  state grant upon completion of the entire
  project reflecting the project cost, a portion of the non-federal  share
  of  the  cost  of  any  project, phase or portion thereof approved for a
  federal treatment works construction grant, determined by the  following
  formulae:
    (i)  for  any  project  which  has  received a Federal Clean Water Act
  section 202(a)(1) grant in an amount which is that  per  centum  of  the
  cost  of construction authorized for federal fiscal years beginning July
  first, nineteen hundred  seventy-one  and  ending  September  thirtieth,
  nineteen  hundred  eighty-four, inclusive, an amount that is one-half of
  the non-federal share of the cost of the eligible project, not to exceed
  thirty percent thereof;
    (ii) for any project which has received a grant  pursuant  to  Federal
  Clean  Water Act section 202(a)(1) or section 201 as amended in nineteen
  hundred eighty-one, which is that reduced per centum  of  the  costs  of
  construction  authorized for federal fiscal years beginning on and after
  October  first,  nineteen  hundred  eighty-four,  an  amount   that   is
  two-thirds of the non-federal share of the eligible cost of the project,
  not to exceed thirty percent thereof;
    (iii)  for  any  project  or portion of a project which has received a
  federal grant for utilization of  innovative  or  alternative  treatment
  processes and techniques pursuant to the provisions of section 202(a)(2)
  of  the  Federal  Clean  Water  Act,  thirty  percent of the cost of the
  innovative or alternative portion of the eligible project, provided that
  the local share of the innovative  or  alternative  portion  will  be  a
  minimum of seven and one-half percent.
    c. An agreement by the municipality
    1.  to  proceed  expeditiously  with,  and  complete,  the  project in
  accordance with plans approved by the department,
    2. to commence operation of the sewage treatment works  on  completion
  of  the  project,  and  not  to  discontinue operation or dispose of the
  sewage treatment works without the approval of the commissioner,
    3. to operate and maintain the sewage treatment  works  in  accordance
  with  applicable provisions of law, the state sanitary code or rules and
  regulations of the commissioner,
    4. to provide for the payment of the municipality's share of the  cost
  of the project.
    d.  A  provision  that,  in the event that federal pollution abatement
  assistance which was not  included  in  the  calculation  of  the  state
  payment pursuant to paragraph b of this subdivision becomes available to
  the  municipality, the amount of the state payment shall be recalculated
  with the  inclusion  of  such  additional  federal  assistance  and  the
  municipality shall either:

    1.  pay  to  the  state the amount by which the state payment actually
  made exceeds the state payment determined by the recalculation or
    2.  if  such additional federal pollution abatement assistance has not
  been received by the municipality, authorize the state  to  receive  and
  retain  an  amount  from  the  federal government equal to the amount to
  which it would be entitled under subparagraph 1 hereof.
    2. In connection with  each  contract,  the  commissioner  shall  keep
  adequate  records  of the amount of the payment by the state pursuant to
  paragraph b of subdivision one of this section of the amount of  federal
  assistance  received by the municipality. Such records shall be retained
  by the commissioner and shall establish the basis for  recalculation  of
  the  state payment as required by paragraph d of subdivision one of this
  section.