NY State Senate Bill 2009-S7971

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 27, 2010	referred to corporations, authorities and commissions

2009-S7971 (ACTIVE) - Details

See Assembly Version of this Bill:: A10935
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §1166, Pub Auth L

2009-S7971 (ACTIVE) - Summary

Relates to contracts of the Onondaga county water authority; requires OCWA to annually provide a report to the state comptroller on any and all contracts or orders for work, materials or supplies performed or furnished in connection with construction awarded pursuant to this section.

2009-S7971 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7971

TITLE OF BILL:
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

PURPOSE:
To provide the Onondaga County Water
Authority to enter into
a ten year pilot program to allow it the flexibility, in relation to
its ability to enter into contracts, to construct water transmission
and distribution lines so that the people of affected municipalities
may obtain affordable potable water.

SUMMARY OF PROVISIONS:
Section 1 - Provides legislative findings.

Section 2. Amends Section 1166 of the Public Authorities Law.
Subdivision 1 is amended to authorize OCWA to construct a water
distribution system with materials and supplies that are obtained by
the Authority from the lowest responsible bidder awarded the
Authority's current, annual contract for materials and supplies.
The present subdivision 2 is renumbered subdivision 3 and a new
subdivision 2 is added to provide that OCWA may enter into agreements

with any municipality within the County of Onondaga (except for the
Town of Skaneateles) Oneida County and any County contiguous with
Onondaga County. Subdivision 3 provides that the authorities current
contract shall apply only to those contracts with municipalities in
the specified counties that elect to be included in OCWA's service
area that exceed $250,000 in total cost. Subdivision 4 provides that
the authority shall provide an annual report to the Office of the
State Comptroller on any and all contracts or orders for work,
materials or supplies in connection with construction contracts
awarded.

Section 3. Effective date.

JUSTIFICATION:
The Onondaga County Water Authority (OCWA) sought an
advisory Opinion from the State Comptroller's Office regarding OCWA's
involvement with the construction and operation of water transmission
and distribution systems in and about the County of Onondaga. In
response, the Comptroller opined that if any Town, on behalf of a
Water District, contracts with OCWA for the construction of a water
system using a contractor engaged by OCWA, OCWA must solicit bids for
that particular system as a discrete, separate and distinct project.

This bill would allow OCWA to continue to bid its construction for
water district additions and extensions "in the aggregate" on an
annual basis. This legislation also recognizes the need to maximize
the number of contractors who annually bid on this contract and it
does that by allowing for several smaller, annual contracts that
would be bid by geographic region. Likewise, in recognition of the
need for access to the contractor's certified payrolls, this bill


requires that they be submitted to appropriate municipal clerk for
public inspection.

This works especially well for municipalities since all water
transmission and distribution systems have essentially the same
components. Bidding all of the years work at once realizes tremendous
cost savings and at the same time assures that contractors that are
experts at this work will build the system. Also, this applies only
to OCWA and only to contracts between OCWA and municipalities in
Central New York for the construction and operation of water
transmission and distribution systems when OCWA uses the contract or
was the successful low bidder for that particular year. As a Public
Benefit Corporation, OCWA savings translate into lower costs for its
ratepayers and having Towns working together on a joint project is
beneficial to all residents.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None to the state. This legislation will go
on to save ratepayers money as well as those municipalities served by
OCWA.

EFFECTIVE DATE:
This act shall take effect immediately and shall expire in 10 years.

2009-S7971 (ACTIVE) - Bill Text download pdf

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

                                  7971

                            I N  S E N A T E

                              May 27, 2010
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed 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

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

                                                           LBD16613-02-0

S. 7971                             2

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
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.

S. 7971                             3

  2. THE AUTHORITY PURSUANT TO THIS  TITLE  MAY  ENTER  INTO  AGREEMENTS
SUBJECT  TO THIS SECTION WITH ANY MUNICIPALITY:  (A) WITHIN THE TERRITO-
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.

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Senate Bill S7971

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2009-S7971 (ACTIVE) - Details

2009-S7971 (ACTIVE) - Summary

2009-S7971 (ACTIVE) - Sponsor Memo

2009-S7971 (ACTIVE) - Bill Text download pdf

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Sponsored By

David J. Valesky

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2009-S7971 (ACTIVE) - Details

2009-S7971 (ACTIVE) - Summary

2009-S7971 (ACTIVE) - Sponsor Memo

2009-S7971 (ACTIVE) - Bill Text download pdf

Comments