Section 1230-I. Agreements among the water board, the city, municipalities and the authority for the provision of projects

1. The  authority,  the  water  board,  the city, any municipality and any other person may enter
  into agreements for the purpose of providing for  the  construction  and
  financing of a project.
    2.  Any  such  agreements: (a) shall describe in sufficient detail for
  reasonable identification the particular project or groups  of  projects
  to  be financed in whole or in part by the authority, (b) 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, (c) 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, (d) 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,
  (e) 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, (f) may provide for the
  transfer by the city, any state agency, or by any  municipality  to  the
  water  board pursuant to this title of ownership of any project, (g) may
  provide for the construction and completion of such project by the city,
  any municipality or the water board and for the  management,  operation,
  maintenance  and  repair thereof, as an integrated part of the system of
  which such project forms a part, 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, (h) shall provide for the  discontinuance  or
  disconnection  of  the  supply of water for nonpayment 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  the  public  service  law,  and  (i)
  shall,  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 system 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, any municipality 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  city,  any  state  agency  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,  any  state agency, and any
  municipality pursuant to this section, 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 Niagara Falls Public Water Authority in
        relation to the construction and financing of (here insert a brief
        description of the project or facility  to  which  such  agreement
        relates)  pursuant to the Niagara Falls Public Water Authority act
        for the purpose of placing its facilities on an independent basis,
        imposing fees and rates on  system  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 management, operation,
        repair  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.