S T A T E   O F   N E W   Y O R K
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                                  3015

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2009
                               ___________

Introduced  by M. of A. BARCLAY -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law,  in  relation  to  contracts
  between the Onondaga county water authority with the town of Marcellus
  and the town of Skaneateles

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

  Section 1. 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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03098-01-9
              

A. 3015                             2

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  THE
SUPPLIES  ARE  OBTAINED  BY  THE  AUTHORITY  FROM THE LOWEST RESPONSIBLE
BIDDER AWARDED THE AUTHORITY'S THEN CURRENT ANNUAL CONTRACT FOR  MATERI-
ALS AND SUPPLIES.
  2.    THE  AUTHORITY  PURSUANT TO THIS TITLE MAY ENTER INTO AGREEMENTS
SUBJECT TO THIS SECTION WITH THE TOWN  OF  MARCELLUS  AND  THE  TOWN  OF
SKANEATELES,  FOR  THE  INSTALLATION  OF  A  WATER PROJECT INCLUDING THE
CONSTRUCTION, DEVELOPMENT, EXTENSION OR IMPROVEMENT OF A WATER SUPPLY OR
DISTRIBUTION SYSTEM, OR ANY PART OR PARTS THEREOF, TO SERVE PORTIONS  OF
THE  TOWN  OF MARCELLUS AND THE TOWN OF SKANEATELES WHICH ARE LOCATED IN
THE GLOVER ROAD, LIMELEDGE ROAD, OLD SENECA TURNPIKE, GYPSY  ROAD,  DEER
PATH  ROAD,  BROWSING  LANE,  LAWRENCE  ROAD, BISHOP HILL ROAD, NEW YORK
STATE ROUTES 174 AND 175, STUMP ROAD AND NORTHWEST TOWN ROAD AREA OF THE
TOWN OF MARCELLUS AND THE TOWN OF  SKANEATELES.    WHEN  THE  CONTRACTOR
ENGAGED  BY THE AUTHORITY TO DO THE CONSTRUCTION IS THE LOWEST RESPONSI-
BLE BIDDER AWARDED THE AUTHORITY'S  THEN  CURRENT  ANNUAL  CONTRACT  FOR
CONSTRUCTION  AND MAINTENANCE, THE AGREEMENTS WITH THE TOWN OF MARCELLUS
AND THE TOWN OF SKANEATELES MAY BE ENTERED INTO BY  DIRECT  NEGOTIATION.

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ANY  SUCH  AGREEMENTS  MAY CONTAIN PROVISIONS EQUITABLY ALLOCATING COSTS
AND SUCH AGREEMENTS SHALL NOT BE SUBJECT TO ANY OTHER PROVISION  OF  LAW
WITH RESPECT TO COMPETITIVE BIDDING IN CONFLICT HEREWITH.
  3.  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 2. This act shall take effect immediately.