Section 1115-H. Agreement among the water board, the city and the authority for the provision of projects

1. The authority, the water board and the  city, acting by resolution of the common council of the city, 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,  rents  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 system 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 subdivision one of  section  one  thousand  one  hundred
  fifteen-i  of  this  title, provided that revenues received by the water
  board shall be deposited in a special fund established pursuant to  this
  title  and  disbursed to, and upon certification of, the authority, (vi)
  may provide for the transfer by the city to the water board pursuant  to
  section one thousand one hundred fifteen-g of this title of ownership of
  the  water  system  or  sewerage  system, or both as the case may be, of
  which such  project  will  form  a  part,  (vii)  may  provide  for  the
  construction  and  completion  of  such project by the city or the water
  board and for the  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,  (viii)
  shall  provide  for the discontinuance or disconnection of the supply of
  water or the provision of sewerage service, or both, as the case may be,
  for non-payment of fees, rates, rents or other charges therefor  imposed
  by the water board, provided such discontinuance or disconnection of any
  supply  of  water  or the provision of sewerage service, or both, as the
  case may be, 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 the city.
    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 city and water board
  shall have held a public hearing at which users of the water  system  or
  sewerage system, or both, as the case may be, shall have had opportunity
  to  be  heard concerning the proposed provisions thereof. Notice of such
  hearing  shall  be  published  at  least  thirty  days in advance in the
  official newspaper or newspapers of the city.
    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 agreement by and between the
  authority, the water board and the city pursuant to  this  section,  the
  clerk  of the city shall publish a notice in substantially the following
  form: "Notice is hereby given that the city of Albany has on  the
  day  of              entered into an agreement with the Albany municipal
  water finance authority in relation to the construction and financing of
  (here insert a brief description of the sewerage or  water  facility  or
  facilities  to  which  such  agreement  relates)  pursuant to the Albany
  municipal water finance authority act for the  purpose  of  placing  its
  sewerage  or  water system or water and sewerage system, as the case may
  be, on an independent basis, imposing fees  and  rents  on  sewerage  or
  water  system  users,  or  both,  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 clerk of
  the  city where the same may be examined by any interested person during
  regular business hours. The validity of this 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  any  law  or  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 in any event an  action,  suit
  or  proceeding  is  commenced  within  sixty days after the date of this
  notice.
 
                                                              clerk of the
                                                            city of Albany
 
    (b) The publication authorized by this subdivision  shall  be  in  the
  official newspaper or newspapers of the city.
    (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  or  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.