S T A T E O F N E W Y O R K
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10935
I N A S S E M B L Y
May 4, 2010
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Introduced by M. of A. CHRISTENSEN -- read once and referred to the
Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to contracts of
the Onondaga county water authority and providing for the repeal of
such provisions upon expiration thereof
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 determined and declared
that for the benefit and health of the people of Onondaga county
(outside the city of Syracuse and the town of Skaneateles) all counties
contiguous to Onondaga and the county of Oneida, that the Onondaga coun-
ty water authority (OCWA) should be empowered to undertake a ten year
pilot program allowing the OCWA to provide waterline construction
services to such municipalities, upon their request, utilizing the OCWA
annual construction contract. The utilization of such annual
construction contract will provide economies of scale and reduce the
cost of constructing water transmission and distribution lines so that
the people of the affected municipalities may obtain affordable potable
water. It is also determined that such annual contract should not be
utilized for construction of any project with a projected cost of less
than two hundred fifty thousand dollars to ensure that small contractors
and minority and women owned businesses have a meaningful opportunity to
participate in waterline construction projects.
S 2. Section 1166 of the public authorities law, as amended by chapter
525 of the laws of 1979, subdivision 1 as amended by chapter 597 of the
laws of 1995 and subdivision 2 as added by chapter 416 of the laws of
1994, is amended to read as follows:
S 1166. Contracts. 1. All contracts, or orders, for work, material or
supplies performed or furnished in connection with construction shall be
awarded by the authority pursuant to resolution. Such contracts, or
orders, for work, material or supplies needed for any particular purpose
involving an expenditure of more than ten thousand dollars shall be
awarded only after inviting sealed bids or proposals therefor. The
notice inviting sealed proposals shall be published at least once in a
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16613-02-0
A. 10935 2
newspaper or trade paper selected by the authority for such purpose,
such publication to be at least ten days before the date for the receipt
of bids. If the authority shall not deem it for the interest of the
authority to reject all bids, it shall award the contract to the lowest
bidder, unless the authority shall determine that it is for the public
interest that a bid other than the lowest bid should be accepted. In any
contract for work, material or supplies, there shall be inserted in the
discretion of the authority a provision that additional work may be done
or material or supplies furnished for the purpose of completing such
contract at an expense not exceeding fifteen per centum of the amount of
such contract if such additional work, materials or supplies shall be
ordered by the authority. The bidder whose bid is accepted shall give
security for the faithful performance of the contract, and such other
security as the authority may require, and may be required to maintain
for such period as shall be stipulated any construction done under the
contract, all in the manner prescribed and required by the authority;
and the sufficiency of such security shall, in addition to the justi-
fication and acknowledgment, be approved by the authority. All bids or
proposals shall be publicly opened by the authority or its duly author-
ized agent. If the bidder whose bid has been accepted after advertising
shall neglect or refuse to accept the contract within five days after
written notice that the same has been awarded to him on his bid or
proposal, or, if he accepts but does not execute the contract and give
proper security the authority shall have the right to declare his depos-
it forfeited, and thereupon it shall be readvertised and relet as above
provided. In case any work shall be abandoned by any contractor, the
authority may, if the best interest of the authority be thereby served,
adopt on behalf of the authority any or all sub-contracts made by such
contractor for such work and all such sub-contractors shall be bound by
such adoption if made; and the authority shall in the manner provided
herein readvertise and relet the work specified in the original contract
exclusive of so much thereof as shall be provided for in the subcontract
or subcontracts so adopted. No bid shall be accepted from or any
contracts awarded to, any person or corporation who is in arrears to the
authority, or the county of Onondaga upon any debt or contract, or is a
defaulter as surety or otherwise upon any obligation of the authority,
or the county. Every contract involving an expenditure of more than ten
thousand dollars when made and entered into as herein provided for shall
be executed in duplicate, one copy of which shall be held by the author-
ity and one copy of which shall be delivered to the contractor. Upon the
adoption of a resolution by a vote of two-thirds of all the members of
the authority stating that, for reasons of efficiency or economy, there
is need for standardization, purchase contracts for a particular type or
kind of equipment, material or supplies of more than ten thousand
dollars may be awarded by the authority to the lowest responsible bidder
furnishing the required security after advertisement for sealed bids
therefor in the manner provided in this section. Such resolution shall
contain a full explanation of the reasons for its adoption. NOTHING IN
THIS SUBDIVISION SHALL BE CONSTRUED TO LIMIT THE POWER OF THE AUTHORITY
PURSUANT TO THIS TITLE TO DO ANY SUCH CONSTRUCTION DIRECTLY BY THE OFFI-
CERS, AGENTS AND EMPLOYEES OF THE AUTHORITY OR TO FURNISH MATERIALS AND
SUPPLIES FOR THAT CONSTRUCTION PROVIDED THAT THE MATERIALS AND SUPPLIES
ARE OBTAINED BY THE AUTHORITY FROM THE LOWEST RESPONSIBLE BIDDER AWARDED
THE AUTHORITY'S THEN CURRENT ANNUAL CONTRACT FOR MATERIALS AND SUPPLIES.
2. THE AUTHORITY PURSUANT TO THIS TITLE MAY ENTER INTO AGREEMENTS
SUBJECT TO THIS SECTION WITH ANY MUNICIPALITY: (A) WITHIN THE TERRITO-
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RIAL LIMITS OF ONONDAGA COUNTY EXCEPT THE TOWN OF SKANEATELES AND CITY
OF SYRACUSE;
(B) ANY COUNTY CONTIGUOUS TO ONONDAGA COUNTY; AND
(C) ONEIDA COUNTY, FOR OR ON BEHALF OF A WATER, WATER SUPPLY OR WATER
DISTRIBUTION AND STORAGE DISTRICT FOR THE SALE OR FURNISHING OF
SUPPLIES, MATERIALS AND EQUIPMENT AND TO CONSTRUCT, DEVELOP, EXTEND OR
IMPROVE A WATER SUPPLY OR DISTRIBUTION SYSTEM, OR ANY PART OR PARTS
THEREOF, FOR OR ON BEHALF OF SUCH A DISTRICT. WHEN THE CONTRACTORS
ENGAGED BY THE AUTHORITY TO DO THE CONSTRUCTION IS THE LOW RESPONSIBLE
BIDDER AWARDED THE AUTHORITY'S THEN CURRENT ANNUAL CONTRACT FOR
CONSTRUCTION AND MAINTENANCE, THE AGREEMENT WITH THE MUNICIPALITY MAY BE
ENTERED INTO BY DIRECT NEGOTIATION. ANY SUCH AGREEMENT MAY CONTAIN
PROVISIONS EQUITABLY ALLOCATING COSTS AND SUCH AGREEMENT SHALL NOT BE
SUBJECT TO ANY OTHER PROVISION OF LAW WITH RESPECT TO COMPETITIVE
BIDDING IN CONFLICT HEREWITH.
3. THE PROVISIONS OF THIS SECTION DEALING WITH THE AUTHORITY'S CURRENT
ANNUAL CONTRACT SHALL APPLY ONLY TO THOSE CONTRACTS WITH MUNICIPALITIES
IN THE SPECIFIED COUNTIES THAT ELECT TO BE INCLUDED IN THE AUTHORITY'S
SERVICE AREA PURSUANT TO SUBDIVISION TWENTY-FOUR OF SECTION ONE THOUSAND
ONE HUNDRED FIFTY-FOUR OF THIS TITLE THAT EXCEED TWO HUNDRED FIFTY THOU-
SAND DOLLARS IN TOTAL COST.
4. THE AUTHORITY SHALL ANNUALLY PROVIDE A REPORT TO THE STATE COMP-
TROLLER ON ANY AND ALL CONTRACTS OR ORDERS FOR WORK, MATERIALS OR
SUPPLIES PERFORMED OR FURNISHED IN CONNECTION WITH CONSTRUCTION
CONTRACTS AWARDED PURSUANT TO THIS SECTION.
5. For the purposes of article fifteen-A of the executive law only,
the authority shall be deemed a state agency as that term is used in
such article, and its contracts, or orders for work, material or
supplies performed or furnished in connection with construction shall be
deemed state contracts within the meaning of that term as set forth in
such article.
S 3. This act shall take effect immediately and shall expire and be
deemed repealed ten years after such date.