S T A T E   O F   N E W   Y O R K
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                                  5362

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  VOLKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to authorize the funding of the  sanitary  sewer  system  in  the
  hamlet of Hemlock in the town of Livonia

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. It is  hereby  found  and  determined
that the town board of the town of Livonia, in the county of Livingston,
(i)  by  a  resolution  adopted on September 4, 1997 pursuant to section
209-d of the town law, established the Hemlock  sewer  district  at  the
maximum  cost  not  to  exceed $2,305,700, (ii) by resolution adopted on
January 20, 2005 pursuant to section 202-b of the town  law,  authorized
additional  facilities  to be included in the Hemlock sewer district, at
an additional cost of up to $100,000, and (iii)  by  a  bond  resolution
adopted on March 21, 2002, as supplemented and amended by a supplemental
bond  resolution  adopted on January 20, 2005 authorized the issuance of
serial bonds not to exceed the sum of  $2,305,700  for  the  purpose  of
financing  the sanitary sewer improvements to be included in the Hemlock
sewer district.
  It is also hereby found and determined that the town issued its serial
bonds under the aforesaid bond resolutions and bond  anticipation  notes
in anticipation of the issuance of such serial bonds as follows:
  (a)  A  bond  anticipation  note  dated July 15, 2002 in the amount of
$500,000. Such bond anticipation note was renewed by the issuance  of  a
renewal  bond  anticipation  note  dated  July 17, 2003 in the amount of
$500,000. Said renewal bond anticipation note was again renewed  by  the
issuance  of a renewal bond anticipation note dated July 16, 2004 in the
amount of $500,000. Thereafter, on June 15, 2005, the  town  issued  its
$100,000 Public Improvement (Serial) Bonds, Series 2005, for the purpose
of refinancing $100,000 principal amount of said outstanding bond antic-
ipation  note  and  the balance of said bond anticipation note was again
renewed by the issuance of a renewal bond anticipation note  dated  July
19,  2005  in  the  amount of $400,000. Thereafter on June 18, 2006 said

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD11551-01-9

S. 5362                             2

renewal bond anticipation note was retired in full through the  applica-
tion of grant moneys received by the town for such purpose.
  (b)  A  bond anticipation note dated November 8, 2002 in the amount of
$450,000. Said bond anticipation note was renewed by the issuance  of  a
renewal  bond  anticipation  note  on  November 7, 2003 in the amount of
$450,000. Said renewal bond anticipation note was again renewed  by  the
issuance  of a renewal bond anticipation note dated November 10, 2004 in
the amount of $450,000. Thereafter, a principal payment of  $15,000  was
made  on  said  renewal  bond  anticipation note and said note was again
renewed by the issuance of a renewal bond anticipation note dated Novem-
ber 16, 2005 in the amount of $435,000. Thereafter, a principal  payment
of $22,500 was made on said renewal bond anticipation note and said note
was  again  renewed  by the issuance of a renewal bond anticipation note
dated November 14, 2006. Thereafter, a principal payment of  $4,100  was
made  on  said  renewal  bond  anticipation note and said note was again
renewed by the issuance of a renewal bond anticipation note dated Novem-
ber 13, 2007. Thereafter, a principal payment of  $11,000  was  made  on
said  renewal  bond anticipation note and said note was again renewed by
the issuance of a renewal bond  anticipation  note  dated  November  13,
2008.
  (c)  A  bond  anticipation  note  dated July 17, 2003 in the amount of
$700,000. Said bond anticipation note was renewed by the issuance  of  a
renewal  bond  anticipation  note  on  July  16,  2004  in the amount of
$700,000. Thereafter, pursuant to a resolution of the town board adopted
on July 1, 2005, the town advanced moneys from the town's  general  fund
to  make  a  principal  payment  of $140,000 on said renewal bond antic-
ipation note, which resolution provided that  such  advance  was  to  be
reimbursed out of the proceeds of serial bonds to be subsequently issued
by  the  town,  and  said  note  was  again renewed by the issuance of a
renewal bond anticipation note dated July 19,  2005  in  the  amount  of
$560,000. Thereafter, said renewal bond anticipation note was retired in
full  on  June  19,  2006 by the payment of $560,000 out of grant moneys
received by the town from the federal and state  governments  that  were
intended  to  be  applied  to  pay costs of improvements included in the
Hemlock sewer district.
  (d) On September 29, 2005 the town issued its E.F.C. Clean Water Stat-
utory Installment Bonds - 2005 in the principal amount of  $618,616  for
the  intended  purposes  of  (i)  refunding  in  full the aforementioned
$100,000 Public Improvement (Serial) Bonds, Series 2005 and  (ii)  refi-
nancing $518,616 principal amount of the aforementioned $560,000 renewal
bond  anticipation  note  dated July 19, 2005. Thereafter, such $518,616
was not so applied to refinance such bond anticipation note  dated  July
19,  2005  but rather was used to pay a portion of the costs of improve-
ments included in the Hemlock sewer district.
  It is also hereby found and determined that the total costs of  under-
taking the improvements included in the Hemlock sewer district that were
paid  by  the town board of the town were $2,882,000, which amount is in
excess of the maximum cost of the said water district authorized by  the
aforementioned resolution adopted on September 4, 1997.
  The  legislature  further finds and determines that the expenditure by
the town on the improvements included in the Hemlock sewer  district  of
an  amount  in  excess  of the $2,305,700 maximum cost authorized by the
aforesaid resolution adopted on September 4, 1997 was  in  violation  of
the  provisions  of  the  town  law,  in that the town board did not, as
required by section 209-h of the town law, conduct a public  hearing  in
the  manner described in article 12 of the town law, obtain the approval

S. 5362                             3

of such increase in maximum cost by an order of the comptroller  of  the
state  of  New  York  as  required by section 209-f of the town law, and
adopt an order determining that it is in the public interest to  author-
ize  the increase of such maximum cost, subject to a permissive referen-
dum in the manner required by subdivision d of section 209-e of the town
law.
  The legislature further finds and determines  that  said  bond  antic-
ipation  notes,  renewal bond anticipation notes, and statutory install-
ment bonds were issued in violation  of  the  provisions  of  the  local
finance  law including the provisions of paragraph d of section 23.00 of
the local finance law which requires that a portion of any  bond  antic-
ipation  note be redeemed from a source other than the proceeds of bonds
within two years of the original date of issue of  a  bond  anticipation
note  and that a further portion thereof be redeemed prior to the termi-
nation of each twelve month period succeeding  the  date  on  which  the
original  portion was so redeemed. The legislature also finds and deter-
mines that certain of  such  bond  anticipation  notes  were  issued  in
violation  of  paragraph  b of section 23.00 of the local finance law in
that such bond anticipation notes were issued for a period in excess  of
one year.
  S 2. Notwithstanding the defects described in section one of this act,
all  actions  and proceedings undertaken by the town of Livonia, Living-
ston county, in connection with the proceedings undertaken by  the  town
board  under article 12-A of the town law to authorize the establishment
of Hemlock sewer district and the payment of costs of  the  improvements
included within the Hemlock sewer district in excess of the maximum cost
approved by the town board by the resolution dated September 2, 1997 and
all  actions  and proceedings undertaken by the town of Livonia, Living-
ston county, in connection with the adoption of the serial  bond  resol-
ution  dated March 21, 2002 authorizing the issuance of serial bonds not
to exceed the sum of $2,305,700 for purposes of financing  the  sanitary
sewer  improvements  included  within the Hemlock sewer district and all
actions and proceedings in connection with the issuance of  bond  antic-
ipation  notes  pursuant thereto as described in section one of this act
are  hereby  legalized,  validated,  ratified  and  confirmed.  Further,
notwithstanding  the  defects as described in section one of this act in
connection with the issuance of said obligations, the town of Livonia is
hereby authorized to issue renewal bond anticipation notes and/or serial
bonds in an amount not to exceed the sum of $576,000 for the purpose  of
financing  the  sewer  improvements described herein, including, without
limitation, the issuance of serial bonds for the purpose of  reborrowing
the  $140,000  principal  payment  made on the renewal bond anticipation
note dated July 15, 2004 from the town's general fund  pursuant  to  the
resolution  of  the town board, dated July 1, 2005, described in section
one of this act.
  S 3. Except as otherwise provided in this  act,  the  bonds  and  bond
anticipation  notes  issued  pursuant  to  this  act  shall be issued in
accordance with the provisions of the local finance law.
  S 4. If any clause, sentence, subdivision, paragraph or part  of  this
act be judged by any court of competent jurisdiction to be invalid, such
judgment  shall  not affect, impair or invalidate the remainder thereof,
but shall be confined in its operation to the clause, sentence, subdivi-
sion, paragraph, section  or  part  thereof  directly  involved  in  the
controversy in which such judgment shall have been rendered.
  S 5. This act shall take effect immediately.