Relates to contracts of the Onondaga county water authority; repealer

BILL NUMBER:A10935

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. Subdivi- sion 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 allow- ing for several smaller, annual contracts that would be bid by geograph- ic region. Likewise, in recognition of the need for access to the contractor's certified payrolls, this bill requires that they be submit- ted to appropriate municipal clerk for public inspection.

This works especially well for municipalities since all water trans- mission 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.