§ 1740. Use of outside design, drafting or inspection services. 1. All
design, drafting or inspection services necessary in connection with the
approved educational facilities capital plan shall be performed by
appropriate employees of the authority, except as otherwise provided in
this section.

2. a. The authority will undertake design, drafting and inspection
services with employees of the authority so that (i) not less than
twenty percent of such work performed in the years ending June
thirtieth, nineteen hundred eighty-nine, and June thirtieth, nineteen
hundred ninety will be so undertaken; (ii) not less than thirty percent
of such work performed in the year ending June thirtieth, nineteen
hundred ninety-one will be so undertaken; and (iii) not less than forty
percent of such work performed in the year ending June thirtieth,
nineteen hundred ninety-two and thereafter will be so undertaken. Each
such percentage shall be determined by the value of the work performed
for its respective fiscal year for such design, drafting and inspection
services in the approved educational facilities capital plan.

b. Notwithstanding the provisions of paragraph a of this subdivision,
design, drafting and inspection services may be performed by persons
other than employees of the authority in any given fiscal year when the
amount of services allowed to be performed by persons other than
employees of the authority pursuant to the provisions of this
subdivision have been exhausted for that fiscal year, and when:

(1) Performance by persons other than employees of the authority is
necessary to avoid a conflict of interest, as defined in regulations
promulgated by the authority, and is a direct consequence of an accident
or other unforeseen circumstance; or

(2) (A) Current employees of the authority are otherwise engaged and
cannot be reassigned to perform the services; (B) new employees cannot
be hired within a reasonable time to perform such services; and (C) such
services are needed in connection with work undertaken in response to an
emergency. For purposes of this subparagraph, the term "emergency" shall
mean a situation involving danger to life, safety or property which
requires immediate action, is essential to efficient operation or the
adequate provision of service by the city board or the authority, and is
a direct consequence of an accident or other unforeseen circumstance.

3. a. Design, drafting or inspection services above the minimum
percentages reserved for employees of the authority pursuant to
paragraph a of subdivision two of this section may be performed by other
than appropriate employees of the authority if to do so is (i) cost
effective, (ii) required to obtain special expertise not available
through the appropriate employees of the authority, (iii) required to
perform a service of short duration, (iv) required to respond to an
emergency, or (v) required to avoid a conflict of interest.

b. Prior to executing a contract for design, drafting or inspection
services pursuant to paragraph a of this subdivision, the authority
shall prepare a specific statement which sets forth the objective data
supporting the reasons why the proposed contract meets one or more of
the requirements set forth in such paragraph. Where use of the contract
is stated to be in compliance with subparagraph (i) of such paragraph,
such statement shall include certification that the contract will not
cause the displacement of authority employees.

c. (1) Prior to the scheduled award of the contract proposed to be
awarded pursuant to paragraph a of this subdivision, the authority shall
provide all employee organizations that represent authority employees
who would otherwise perform such work with copies of the statement
rendered pursuant to paragraph b of this subdivision and the proposed
contract so that each such employee organization shall have at least
fifteen days to object to the proposed contract. Any employee
organization which provides a timely written notice of objection and the
reasons therefor shall, unless the authority agrees in writing to
withdraw the proposed contract, be permitted to be heard by the
authority's trustees prior to the award of the contract.

(2) Notwithstanding the provisions contained within subparagraph one
of this paragraph, the employee organization may be provided less than
the required fifteen days to object to the proposed contract when the
contract is required to respond to an emergency as defined in
subparagraph two of paragraph b of subdivision two of this section;
provided, however, that all other provisions of such clause shall be
observed.

4. No later than ten days prior to the date set by the city charter
for the holding of hearings on the mayor's annual preliminary budget
statements for capital projects, the authority shall prepare a report
specifying the projects from the approved educational facilities plan
which the authority plans to commit to during the next fiscal year. If
the authority intends to contract for design, drafting or inspection
services in connection with any project so specified, the report shall
further specify (i) for which projects the services are needed; (ii) the
type of services to be provided pursuant to contract; (iii) the
estimated cost of the contract; and (iv) the reason or reasons why award
of the contract is consistent with this subdivision. The report shall be
filed in the authority's office and in the office of the city board, and
shall be available to the public upon request. The authority shall file
revisions to the report so as to provide advance notice of not less than
thirty days of additional projects that the authority plans to undertake
on which the authority intends to contract for design, drafting or
inspection services. Such revisions shall be in accordance with the
criteria of this subdivision. Such revisions shall also identify
projects which the authority included in its report but which the
authority does not intend to pursue in the applicable fiscal year. The
authority shall file such revisions in the authority's office and in the
office of the city board, and such revisions shall be available to the
public upon request. Such report and revisions shall not preclude the
authority from entering into contracts or undertaking projects.

5. Nothing herein shall be deemed to create a cause of action against
the authority challenging the board's determination to award a contract
pursuant to subdivision three of this section, except to challenge a
failure by the authority to adhere to the process set forth in
paragraphs b and c of subdivision three of this section.