Section 1226-G. Transfer of water facilities by the board of water supply or any municipality

1. The board of water supply or any municipality may,  by resolution approved by a majority of the entire  voting  strength  of
  the   applicable  governing  body  of  the  board  of  water  supply  or
  municipality, as the case may be, enter into an agreement with the water
  board for the transfer, by deed, lease  or  other  arrangement,  to  the
  water  board,  for  use  in  the  exercise  of  its corporate powers and
  purposes, of any property, real,  personal  or  mixed  or  any  interest
  therein,  constituting a water facility or facilities or otherwise owned
  by it. Any such property offered to be transferred to  the  water  board
  within  the  period  commencing on the date the certificate described in
  paragraph (a) of subdivision five of section one  thousand  two  hundred
  twenty-six-e  of  this  title shall be filed by the county executive and
  terminating one hundred days thereafter shall be accepted by  the  water
  board  in  the  physical  condition  in  which  it then exists. Any such
  agreement shall state the consideration, if any, for such  transfer  and
  shall  provide that the authority shall assume the obligation to pay any
  or all outstanding indebtedness of the transferring body and/or pay  all
  or  part of any purchase or acquisition price in cash or in installments
  over such period of years, at such rate of interest, if any, and may  be
  subject  to  such  other  terms  and  conditions as the water board, the
  authority, the board of water supply or municipality, as  the  case  may
  be,  shall  agree  to  be fair, adequate and reasonable. Notwithstanding
  section six-l of the general municipal law or any other general, special
  or local law or charter provision  to  the  contrary,  the  purchase  or
  acquisition  price,  including  cash proceeds and any installments to be
  paid by the authority to the board of water supply or to the city over a
  period of years, shall be paid to the city and deposited  when  received
  by  the  city in a trust fund hereby created and entitled "city of Utica
  capital improvement trust fund". Moneys in  such  trust  fund  shall  be
  invested  in  the  same  manner  as moneys of the city held in a capital
  reserve fund established  pursuant  to  section  six-c  of  the  general
  municipal  law  may  be  invested. Not exceeding fifty per centum of the
  principal corpus plus interest earned or capital gain  realized  by  the
  city  in the immediately preceding fiscal year of the city from any such
  investment may  be  authorized  to  be  and  thereafter  expended  by  a
  two-thirds  vote  of  the  council  of  the  city for any city object or
  purpose defined as a capital improvement in subdivision nine of  section
  2.00  of  the  local  finance  law or to pay principal of or interest on
  obligations of the city issued for any  capital  improvement,  provided:
  (i)  the  mayor  shall have theretofore submitted to the council and the
  council shall have approved a five year capital plan for the  city,  and
  (ii)  the capital improvement or improvements for which such moneys will
  be expended is described and approved in such capital  plan,  and  (iii)
  notwithstanding  paragraphs  (i)  and  (ii)  of  this  subdivision,  the
  expenditure of any amount of such moneys specifically allocated  in  the
  city  budget  to  pay  the  principal  of  or  interest  on any existing
  obligations of the city may be authorized in the same manner and by  the
  same  voting strength as provided for in the adoption of the annual city
  budget. The capital plan may be revised, from time to time, by the mayor
  and the council and may be amended, from time to time, as the mayor  and
  the  council  shall  determine  necessary and appropriate. Any amount of
  interest earned or capital gain realized from any  such  investment  and
  not expended in any fiscal year of the city as herein provided shall, on
  the  first  day of the next succeeding fiscal year of the city, be added
  to and become a part of the principal corpus of  said  trust  fund.  The
  trust  fund  shall  terminate  when  the balance of all moneys remaining
  therein shall amount to less than two hundred thousand dollars. At  such

  time  the remaining principal corpus may be transferred to and deposited
  in the general fund of the city by a majority vote of the council of the
  city. Notwithstanding any provision of  any  general  or  local  law  or
  charter  provision,  neither the principal corpus of such trust fund nor
  any interest or capital gain realized from the investment thereof  shall
  be  utilized, transferred or advanced for any purpose or to any fund. To
  the extent not inconsistent with this  title,  any  such  agreement  may
  impose  such  limitations  or  conditions  as  may be agreed upon by and
  between the board of water supply or such  municipality  and  the  water
  board  with respect to the power of the water board to sell or otherwise
  dispose of any property acquired by the water  board  pursuant  to  such
  agreement.  Notwithstanding  the  provisions  of any general, special or
  local law or charter to the contrary, any action taken by the  board  of
  water  supply or any municipality pursuant to this subdivision shall not
  be subject  to  a  permissive  or  mandatory  referendum  and  any  such
  property,  real,  personal or mixed or any interest therein, need not be
  sold at public auction.
    2. Any such agreement shall set forth the liabilities of the board  of
  water  supply  or of any municipality which it is contemplated are to be
  paid by the authority or the water board from moneys available to it.
    3. Any such agreement may provide for the  payment  by  the  board  of
  water  supply  or  any  municipality  to  the  water board of any funds,
  including the remaining proceeds of any bonds or notes  issued  for  any
  water  facility,  to  be  transferred  by  the  board of water supply or
  municipality to the water board as may be determined appropriate by such
  board of water supply or municipality and the water board.
    4. The board of water supply, any municipality, the authority and  the
  water  board,  or  any  combination  thereof,  are hereby authorized and
  empowered to make  or  enter  into  any  contracts,  agreements,  deeds,
  leases,  conveyances  or  other  instruments  as  may  be  necessary  or
  appropriate to effectuate the purposes of this  title,  and  they  shall
  have  power  and  authority  to  do so and to authorize the doing of all
  things incidental, desirable or necessary to implement the provisions of
  this title.
    5. Notwithstanding  the  foregoing  provisions  of  this  section,  no
  agreement  relating  to the transfer of water facilities contemplated by
  this section shall become effective for any purpose unless and until the
  same shall have been approved in writing by resolution of the authority.
    6.  Any  application  filed  or  proceeding  heretofore  commenced  in
  relating  to  any  water facility transferred to the water board pending
  with the state departments of environmental conservation  or  health  or
  any   other  state  agency  or  with  the  United  States  environmental
  protection agency or any other federal agency or  instrumentality  shall
  inure  to and for the benefit of the water board and be binding upon the
  water board to the same extent and in the same manner as  if  the  water
  board  had  been  a  party  to  such  application or proceeding from its
  inception, and the water board shall be deemed a party  thereto  to  the
  extent  not prohibited by any federal law. Any license, approval, permit
  or decision heretofore or hereafter issued or granted pursuant to or  as
  a  result  of  any  such  application  or  proceeding shall inure to the
  benefit of and be binding upon the water board and shall be assigned and
  transferred by the board of water supply or applicable  municipality  to
  the  water  board  unless  such assignment and transfer is prohibited by
  federal law.
    7. The rules and regulations of the water board may  provide  for  the
  discontinuance  or  disconnection  of  the  supply of water by the water
  board 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.