Section 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.