Section 1048-Z. Limited liability

Neither the members of the authority nor
  of the water board, nor any officer or employee of the authority nor the
  water board acting in behalf thereof, while acting within the  scope  of
  his  authority, shall be subject to any liability resulting from (i) the
  construction,  ownership,  maintenance  or  operation  of  any   project
  financed  with  the  assistance of the authority, (ii) the construction,
  ownership, maintenance or operation of  any  water  system  or  facility
  owned  by  the  water  board,  or  (iii)  carrying out any of the powers
  expressly given in this title. A director, officer or  employee  of  the
  authority  shall  be  deemed  an  "employee" for the purposes of chapter
  three of section seventy-nine of the Buffalo city  ordinances,  provided
  however  that  any  director,  either  appointed  by  the governor or an
  employee of the state shall be deemed an "employee" for the purposes  of
  section  eighteen  of the public officers law for any action relating to
  their activities as a director of the authority created by this title.