§ 6. Relationship to the city; agreements concerning health
facilities. 1. (a) The city shall on or before the first day of July
nineteen hundred seventy enter into an agreement or agreements with the
corporation, pursuant to this section and section seven herein, whereby
the corporation shall operate the hospitals then being operated by the
city for the treatment of acute and chronic diseases, and for the fiscal
year of the city commencing on the first day of July nineteen hundred
seventy and thereafter the city shall include in its expense budget an
appropriation of tax levy for the services provided by the corporation
and pay the corporation an amount which shall not be less than one
hundred seventy-five million dollars; provided, however, that for the
fiscal year beginning July first, nineteen hundred seventy-two and
thereafter the amount shall be adjusted annually to take account of
increases in the cost of health care as reflected in increases in the
average rates of reimbursement set by the state pursuant to section
twenty-one hundred seven of the public health law for health and
hospital services in New York City, and changes in the volume of
services rendered by the corporation and required by the city for which
no reimbursement from third-party sources is available. The corporation
shall submit a program budget to the city, in time for inclusion in the
mayor's executive budget, detailing the anticipated expenditure of the
tax levy funds appropriated by the city for the coming fiscal year.

The provisions of subdivision three of paragraph a of section 135.00
of the local finance law shall not apply to a contract entered into
pursuant to this section.

1. (b) Within a reasonable time thereafter the city shall enter into a
similar agreement or agreements for the remaining personal health and
medical facilities then operated by the city.

2. (a) The corporation shall have the power to enter into contracts,
leases, sub-leases or other agreements permitting the city to purchase,
lease, sub-lease or otherwise acquire or use any health facility by or
under the jurisdiction of the corporation; and to permit the city to
construct or add health facilities or improvements upon or to such
health facility.

(b) The city shall be empowered to purchase, lease, sub-lease or
otherwise acquire or contract for the use of and use any health facility
held by or under the jurisdiction of the corporation, or to construct or
add health facilities or improvements upon or to such a health facility,
in accordance with the terms of any contract, lease, sub-lease or other
agreement entered into pursuant to the terms of this act.

3. Any contract, lease, sub-lease or other agreement between the city
and the corporation for the purchase, lease, sub-lease, use, operation
or construction and equipment of a health facility, as authorized by
this act, shall

(a) set forth any health facility to be constructed and equipped, used
or operated;

(b) provide that the corporation shall apply for and receive all
reimbursement allowances or other moneys available to the corporation
from any source for the provision of health and medical services for
which such reimbursement allowances or other moneys are available,
through or in the facilities of the corporation, and that such
reimbursement allowances or other moneys shall be collected and received
by the corporation directly from any such source, and used by the
corporation for the purposes herein recited;

(c) provide that whenever the city requires the corporation to provide
health and medical services to persons in the city, the city shall pay
the corporation for the cost of such services as are actually rendered,
such cost to be determined by agreement between the city and the
corporation; provided, however, that such payments shall only be made by
the city to the extent that no reimbursement allowances or other
payments are paid to the corporation from any other government or other
sources for the payment of such costs; and

(d) provide that the health and medical services provided by or
through any such health facility shall be available to the public upon
the terms and conditions set forth in such contract, lease, sub-lease or
other agreement.

4. (a) Any such contract, lease, sub-lease or other agreement between
the city and the corporation that requires the corporation to construct
and equip, or causes to be constructed or equipped, a health facility
shall provide that the city shall be required to pay the total estimated
cost of such construction and equipment to the corporation at such times
and in such amounts as determined and requested by the corporation, any
such payment to be made by the city upon the delivery to the comptroller
of the corporation of a certificate requesting such payment.

(b) For the purpose of this subdivision four, the cost of construction
and equipment shall include, but not be limited to, the cost of any
plans, specifications, drawings or designs prepared for the purposes of
the health facility concerned.

5. Any such contract, lease, sub-lease or other agreement between the
city and the corporation may contain provisions, in addition to any
required by the provisions of this act, as to:

(a) pledging or assigning any part of moneys and revenues, including
reimbursement allowances, derived by the city, or the corporation, to
secure payments required by such contract, lease, sub-lease or other
agreement;

(b) limitations on the purposes to which the proceeds of the sale of
the bonds and notes of the corporation may be applied and as to the
pledging of such proceeds to secure the payment of bonds and notes of
the corporation or of any issued thereby, subject to any agreement with
the holders of bonds or notes of the corporation;

(c) setting aside reserves and creating special funds and the
regulation and disposition thereof;

(d) procedures, if any, by which such contract, lease, sub-lease or
other agreement may be amended, the amount of bonds or notes or other
obligations the holders of which must consent thereto, and the manner in
which such consent may be given;

(e) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the city or corporation and
providing for the rights and remedies of the corporation and the holders
of its bonds, notes or other obligations in the event of such default;

(f) any other matters, of like or different character, which may be
deemed necessary or desirable by the corporation for the proper
effectuation of its corporate purposes or for the security or protection
of the holders of its bonds, notes, or other obligations.

6. The city shall not be required to make any payment to the
corporation, nor shall any charge, claim or liability exist or arise
against the city for any such payment, in excess of amounts appropriated
or otherwise authorized by the city therefor. Payments due or to become
due by the city pursuant to any contract, lease, sub-lease or other
agreement with the corporation shall not constitute outstanding
indebtedness of the city for the purposes of paragraph three of
subdivision (a) of section 135.00 of the local fianance law.

7. The corporation shall exercise its powers to provide and deliver
health and medical services to the public in accordance with policies
and plans of the administration with respect to the provision and
delivery of such services and the corporation shall have the power to
adopt and implement rules and regulations not inconsistent with such
policies and plans of the administration. For its part, the
administration shall assist and cooperate with the corporation with
respect to such matters.