§ 1226-g. Transfer of water facilities by the board of water supply or
any municipality. 1. The board of water supply or any municipality may,
by resolution approved by a majority of the entire voting strength of
the applicable governing body of the board of water supply or
municipality, as the case may be, enter into an agreement with the water
board for the transfer, by deed, lease or other arrangement, to the
water board, for use in the exercise of its corporate powers and
purposes, of any property, real, personal or mixed or any interest
therein, constituting a water facility or facilities or otherwise owned
by it. Any such property offered to be transferred to the water board
within the period commencing on the date the certificate described in
paragraph (a) of subdivision five of section one thousand two hundred
twenty-six-e of this title shall be filed by the county executive and
terminating one hundred days thereafter shall be accepted by the water
board in the physical condition in which it then exists. Any such
agreement shall state the consideration, if any, for such transfer and
shall provide that the authority shall assume the obligation to pay any
or all outstanding indebtedness of the transferring body and/or pay all
or part of any purchase or acquisition price in cash or in installments
over such period of years, at such rate of interest, if any, and may be
subject to such other terms and conditions as the water board, the
authority, the board of water supply or municipality, as the case may
be, shall agree to be fair, adequate and reasonable. Notwithstanding
section six-l of the general municipal law or any other general, special
or local law or charter provision to the contrary, the purchase or
acquisition price, including cash proceeds and any installments to be
paid by the authority to the board of water supply or to the city over a
period of years, shall be paid to the city and deposited when received
by the city in a trust fund hereby created and entitled "city of Utica
capital improvement trust fund". Moneys in such trust fund shall be
invested in the same manner as moneys of the city held in a capital
reserve fund established pursuant to section six-c of the general
municipal law may be invested. Not exceeding fifty per centum of the
principal corpus plus interest earned or capital gain realized by the
city in the immediately preceding fiscal year of the city from any such
investment may be authorized to be and thereafter expended by a
two-thirds vote of the council of the city for any city object or
purpose defined as a capital improvement in subdivision nine of section
2.00 of the local finance law or to pay principal of or interest on
obligations of the city issued for any capital improvement, provided:
(i) the mayor shall have theretofore submitted to the council and the
council shall have approved a five year capital plan for the city, and
(ii) the capital improvement or improvements for which such moneys will
be expended is described and approved in such capital plan, and (iii)
notwithstanding paragraphs (i) and (ii) of this subdivision, the
expenditure of any amount of such moneys specifically allocated in the
city budget to pay the principal of or interest on any existing
obligations of the city may be authorized in the same manner and by the
same voting strength as provided for in the adoption of the annual city
budget. The capital plan may be revised, from time to time, by the mayor
and the council and may be amended, from time to time, as the mayor and
the council shall determine necessary and appropriate. Any amount of
interest earned or capital gain realized from any such investment and
not expended in any fiscal year of the city as herein provided shall, on
the first day of the next succeeding fiscal year of the city, be added
to and become a part of the principal corpus of said trust fund. The
trust fund shall terminate when the balance of all moneys remaining
therein shall amount to less than two hundred thousand dollars. At such
time the remaining principal corpus may be transferred to and deposited
in the general fund of the city by a majority vote of the council of the
city. Notwithstanding any provision of any general or local law or
charter provision, neither the principal corpus of such trust fund nor
any interest or capital gain realized from the investment thereof shall
be utilized, transferred or advanced for any purpose or to any fund. To
the extent not inconsistent with this title, any such agreement may
impose such limitations or conditions as may be agreed upon by and
between the board of water supply or such municipality and the water
board with respect to the power of the water board to sell or otherwise
dispose of any property acquired by the water board pursuant to such
agreement. Notwithstanding the provisions of any general, special or
local law or charter to the contrary, any action taken by the board of
water supply or any municipality pursuant to this subdivision shall not
be subject to a permissive or mandatory referendum and any such
property, real, personal or mixed or any interest therein, need not be
sold at public auction.

2. Any such agreement shall set forth the liabilities of the board of
water supply or of any municipality which it is contemplated are to be
paid by the authority or the water board from moneys available to it.

3. Any such agreement may provide for the payment by the board of
water supply or any municipality to the water board of any funds,
including the remaining proceeds of any bonds or notes issued for any
water facility, to be transferred by the board of water supply or
municipality to the water board as may be determined appropriate by such
board of water supply or municipality and the water board.

4. The board of water supply, any municipality, the authority and the
water board, or any combination thereof, are hereby authorized and
empowered to make or enter into any contracts, agreements, deeds,
leases, conveyances or other instruments as may be necessary or
appropriate to effectuate the purposes of this title, and they shall
have power and authority to do so and to authorize the doing of all
things incidental, desirable or necessary to implement the provisions of
this title.

5. Notwithstanding the foregoing provisions of this section, no
agreement relating to the transfer of water facilities contemplated by
this section shall become effective for any purpose unless and until the
same shall have been approved in writing by resolution of the authority.

6. Any application filed or proceeding heretofore commenced in
relating to any water facility transferred to the water board pending
with the state departments of environmental conservation or health or
any other state agency or with the United States environmental
protection agency or any other federal agency or instrumentality shall
inure to and for the benefit of the water board and be binding upon the
water board to the same extent and in the same manner as if the water
board had been a party to such application or proceeding from its
inception, and the water board shall be deemed a party thereto to the
extent not prohibited by any federal law. Any license, approval, permit
or decision heretofore or hereafter issued or granted pursuant to or as
a result of any such application or proceeding shall inure to the
benefit of and be binding upon the water board and shall be assigned and
transferred by the board of water supply or applicable municipality to
the water board unless such assignment and transfer is prohibited by
federal law.

7. The rules and regulations of the water board may provide for the
discontinuance or disconnection of the supply of water by the water
board for non-payment of fees, rates or other charges therefor imposed
by the water board, provided such discontinuance or disconnection of any
supply of water 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.