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
                               ___________

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

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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.