§ 1115-h. Agreement among the water board, the city and the authority
for the provision of projects. 1. The authority, the water board and the
city, acting by resolution of the common council of the city, may enter
into agreements for the purpose of providing for the construction and
financing of a project.

2. Any such agreements (i) shall describe in sufficient detail for
reasonable identification the particular project to be financed in whole
or in part by the authority, (ii) shall describe the plan for the
financing of the cost of the construction of such project, including the
amount, if any, to be provided by the water board and the source or
sources thereof, (iii) shall set forth the method by which and by whom
and the terms and conditions upon which moneys provided by the authority
shall be disbursed, (iv) may require, in the discretion of the
authority, the payment to the authority of the proceeds of any state and
federal grants available to the water board, (v) shall provide for the
establishment of user fees, rates, rents and other charges and the
charging and collection thereof by the water board for the use of, or
services furnished, rendered or made available by such system such as to
provide that the water board receive revenues at least sufficient,
together with other revenues of the water board, if any, to meet the
requirements of subdivision one of section one thousand one hundred
fifteen-i of this title, provided that revenues received by the water
board shall be deposited in a special fund established pursuant to this
title and disbursed to, and upon certification of, the authority, (vi)
may provide for the transfer by the city to the water board pursuant to
section one thousand one hundred fifteen-g of this title of ownership of
the water system or sewerage system, or both as the case may be, of
which such project will form a part, (vii) may provide for the
construction and completion of such project by the city or the water
board and for the operation, maintenance and repair thereof as an
integrated part of the system of which such project forms a part,
subject to such terms and conditions, not inconsistent with this title,
which may be in the public interest and necessary or desirable properly
and adequately to secure the holders of bonds of the authority, (viii)
shall provide for the discontinuance or disconnection of the supply of
water or the provision of sewerage service, or both, as the case may be,
for non-payment of fees, rates, rents or other charges therefor imposed
by the water board, provided such discontinuance or disconnection of any
supply of water or the provision of sewerage service, or both, as the
case may be, shall not be carried out except in the manner and upon the
notice as is required of a waterworks corporation pursuant to
subdivisions three-a, three-b and three-c of section eighty-nine-b and
section one hundred sixteen of the public service law, and (ix) in the
discretion of the authority, require reports concerning the project from
the water board to the authority and the city.

3. If the city executes an agreement pursuant to this section,
relating to the financing of projects by revenue bonds, it shall have
and shall be deemed to have annulled its power to levy user fees, rents
and other charges on participating properties or customers for the cost
of financing, operating and maintaining such projects under its
jurisdiction until all bonds of the authority shall have been paid or
discharged in accordance with the agreement and the resolution of the
authority authorizing such bonds. If the city has outstanding general
obligation bonds issued for acquiring or constructing water or sewerage
facilities, whether the bonds are payable from revenues, special
assessments, or taxes, it may authorize the authority pursuant to the
agreement to issue its revenue bonds under this title for the purpose of
retiring the outstanding bonds.

4. No such agreement shall be executed until the city and water board
shall have held a public hearing at which users of the water system or
sewerage system, or both, as the case may be, shall have had opportunity
to be heard concerning the proposed provisions thereof. Notice of such
hearing shall be published at least thirty days in advance in the
official newspaper or newspapers of the city.

5. Such agreement shall be effective upon the issuance by the
authority of bonds to finance the cost of constructing projects of the
city or the water board.

6. Any such agreement may be amended, revised or extended by
supplemental agreements authorized and executed in the same manner as
the original agreement, provided that any such supplemental agreement
shall not be inconsistent with the provisions of this title.

7. (a) Following the execution of the agreement by and between the
authority, the water board and the city pursuant to this section, the
clerk of the city shall publish a notice in substantially the following
form: "Notice is hereby given that the city of Albany has on the
day of entered into an agreement with the Albany municipal
water finance authority in relation to the construction and financing of
(here insert a brief description of the sewerage or water facility or
facilities to which such agreement relates) pursuant to the Albany
municipal water finance authority act for the purpose of placing its
sewerage or water system or water and sewerage system, as the case may
be, on an independent basis, imposing fees and rents on sewerage or
water system users, or both, which, together with other revenues
available for such purposes, if any, are sufficient to pay to the
authority debt service on bonds issued by the authority pursuant to the
agreement and for operation and maintenance of the facility (title to
which is transferred to the water board pursuant to the agreement). Such
agreement in general terms provides (here insert a brief summary of the
substantive provisions of such agreement). A copy of the complete
agreement is on file for public inspection in the office of the clerk of
the city where the same may be examined by any interested person during
regular business hours. The validity of this agreement may be hereafter
contested only upon the ground or grounds that (i) such agreement
violates, or the performance of any provision thereof by any party
thereto would violate, the provisions of any law or the state
constitution or (ii) the provisions of law which should have been
complied with in relation to the authorization and execution thereof
were not substantially complied with, and in any event an action, suit
or proceeding is commenced within sixty days after the date of this
notice.

clerk of the

city of Albany

(b) The publication authorized by this subdivision shall be in the
official newspaper or newspapers of the city.

(c) After the expiration of the sixty day period set forth in such
notice, the validity of such agreement shall be conclusively presumed
and the validity thereof shall not thereafter be questioned by either a
party plaintiff or a party defendant and no court shall have
jurisdiction in any action, suit or proceeding contesting such validity.

(d) Neither any error or omission in the notice of publication
provided for in this subdivision shall affect or impair the validity of
an agreement executed pursuant to this section so long as the notice
substantially conforms to the provisions of this section.