Section 1740. Use of outside design, drafting or inspection services

1. All
  design, drafting or inspection services necessary in connection with the
  approved  educational  facilities  capital  plan  shall  be performed by
  appropriate employees of the authority, except as otherwise provided  in
  this section.
    2.  a.  The  authority  will undertake design, drafting and inspection
  services with employees of the authority  so  that  (i)  not  less  than
  twenty  percent  of  such  work  performed  in  the  years  ending  June
  thirtieth, nineteen hundred eighty-nine, and  June  thirtieth,  nineteen
  hundred  ninety will be so undertaken; (ii) not less than thirty percent
  of such work performed in  the  year  ending  June  thirtieth,  nineteen
  hundred  ninety-one will be so undertaken; and (iii) not less than forty
  percent of such work  performed  in  the  year  ending  June  thirtieth,
  nineteen  hundred  ninety-two and thereafter will be so undertaken. Each
  such percentage shall be determined by the value of the  work  performed
  for  its respective fiscal year for such design, drafting and inspection
  services in the approved educational facilities capital plan.
    b. Notwithstanding the provisions of paragraph a of this  subdivision,
  design,  drafting  and  inspection  services may be performed by persons
  other than employees of the authority in any given fiscal year when  the
  amount  of  services  allowed  to  be  performed  by  persons other than
  employees  of  the  authority  pursuant  to  the  provisions   of   this
  subdivision have been exhausted for that fiscal year, and when:
    (1)  Performance  by  persons other than employees of the authority is
  necessary to avoid a conflict of interest,  as  defined  in  regulations
  promulgated by the authority, and is a direct consequence of an accident
  or other unforeseen circumstance; or
    (2)  (A)  Current employees of the authority are otherwise engaged and
  cannot be reassigned to perform the services; (B) new  employees  cannot
  be hired within a reasonable time to perform such services; and (C) such
  services are needed in connection with work undertaken in response to an
  emergency. For purposes of this subparagraph, the term "emergency" shall
  mean  a  situation  involving  danger  to life, safety or property which
  requires immediate action, is essential to efficient  operation  or  the
  adequate provision of service by the city board or the authority, and is
  a direct consequence of an accident or other unforeseen circumstance.
    3.  a.  Design,  drafting  or  inspection  services  above the minimum
  percentages  reserved  for  employees  of  the  authority  pursuant   to
  paragraph a of subdivision two of this section may be performed by other
  than  appropriate  employees  of  the  authority if to do so is (i) cost
  effective, (ii) required  to  obtain  special  expertise  not  available
  through  the  appropriate  employees of the authority, (iii) required to
  perform a service of short duration, (iv)  required  to  respond  to  an
  emergency, or (v) required to avoid a conflict of interest.
    b.  Prior  to  executing a contract for design, drafting or inspection
  services pursuant to paragraph a  of  this  subdivision,  the  authority
  shall  prepare  a specific statement which sets forth the objective data
  supporting the reasons why the proposed contract meets one  or  more  of
  the  requirements set forth in such paragraph. Where use of the contract
  is stated to be in compliance with subparagraph (i) of  such  paragraph,
  such  statement  shall  include certification that the contract will not
  cause the displacement of authority employees.
    c. (1) Prior to the scheduled award of the  contract  proposed  to  be
  awarded pursuant to paragraph a of this subdivision, the authority shall
  provide  all  employee  organizations that represent authority employees
  who would otherwise perform such  work  with  copies  of  the  statement
  rendered  pursuant  to  paragraph b of this subdivision and the proposed
  contract so that each such employee organization  shall  have  at  least

  fifteen   days   to  object  to  the  proposed  contract.  Any  employee
  organization which provides a timely written notice of objection and the
  reasons therefor shall,  unless  the  authority  agrees  in  writing  to
  withdraw  the  proposed  contract,  be  permitted  to  be  heard  by the
  authority's trustees prior to the award of the contract.
    (2) Notwithstanding the provisions contained within  subparagraph  one
  of  this  paragraph, the employee organization may be provided less than
  the required fifteen days to object to the proposed  contract  when  the
  contract   is  required  to  respond  to  an  emergency  as  defined  in
  subparagraph two of paragraph b of  subdivision  two  of  this  section;
  provided,  however,  that  all  other provisions of such clause shall be
  observed.
    4. No later than ten days prior to the date set by  the  city  charter
  for  the  holding  of  hearings on the mayor's annual preliminary budget
  statements for capital projects, the authority shall  prepare  a  report
  specifying  the  projects  from the approved educational facilities plan
  which the authority plans to commit to during the next fiscal  year.  If
  the  authority  intends  to  contract for design, drafting or inspection
  services in connection with any project so specified, the  report  shall
  further specify (i) for which projects the services are needed; (ii) the
  type  of  services  to  be  provided  pursuant  to  contract;  (iii) the
  estimated cost of the contract; and (iv) the reason or reasons why award
  of the contract is consistent with this subdivision. The report shall be
  filed in the authority's office and in the office of the city board, and
  shall be available to the public upon request. The authority shall  file
  revisions to the report so as to provide advance notice of not less than
  thirty days of additional projects that the authority plans to undertake
  on  which  the  authority  intends  to  contract for design, drafting or
  inspection services. Such revisions shall  be  in  accordance  with  the
  criteria  of  this  subdivision.  Such  revisions  shall  also  identify
  projects which the authority  included  in  its  report  but  which  the
  authority  does  not intend to pursue in the applicable fiscal year. The
  authority shall file such revisions in the authority's office and in the
  office of the city board, and such revisions shall be available  to  the
  public  upon  request.  Such report and revisions shall not preclude the
  authority from entering into contracts or undertaking projects.
    5. Nothing herein shall be deemed to create a cause of action  against
  the  authority challenging the board's determination to award a contract
  pursuant to subdivision three of this section,  except  to  challenge  a
  failure  by  the  authority  to  adhere  to  the  process  set  forth in
  paragraphs b and c of subdivision three of this section.