Create North Shore Water Authority

Section 1. Legislative findings. The legislature hereby finds that the groundwater supply system presently operated by a private utility in the northwest portion of the Nassau county servicing the residents of the village of Sea Cliff, and portions of the village of Old Brookville, village of Roslyn Harbor, and residents in the unincorporated hamlets of Glenwood Landing, Glen Head and the city of Glen Cove, is fragile and subject to episodic deficiencies of varying magnitude including service disruptions and drastic price variations to residents serviced by the existing private water company. The groundwater supply requires better management of its entire reserve both within and outside the water utility supply area as well as long range planning to provide protection of important watershed areas, water conservation, and prevention from contamination and salt water intrusion. Since the potable water for the northern portion of the North Shore peninsula is derived from an aquifer which is the sole source of water for all of Long Island, the issues of contamination and conservation are of statewide concern. The problems of salt water intrusion facing the North Shore peninsula, face many other peninsulas on Long Island and many of the barrier islands. It is hoped that the authority created by this act will not only protect, preserve and enhance the quality and quantity of the water within its supply area, but that it will also serve as a model and as a leader in fostering cooperation with other water suppliers to better manage, conserve and protect the groundwater within and outside its supply area.

§ 2. Article 5 of the public authorities law is amended by adding a new title 5-a to read as follows:

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD13297-07-0

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TITLE 5-A

NORTH SHORE WATER AUTHORITY Section 1114-a. Short title.

1114-b. Definitions.

1114-c. Water authority of North Shore district.

1114-d. Water authority of North Shore.

1114-e. Powers of the authority.

1114-f. Transfer of officers and employees.

1114-g. Bonds of the authority.

1114-h. Remedies of bondholders.

1114-i. State and municipalities not liable on authority bonds.

1114-j. Moneys of the authority.

1114-k. Bonds; legal investments for fiduciaries.

1114-l. Agreement with the state.

1114-m. Exemption from taxes, assessments and certain fees;

payments in lieu of taxes.

1114-n. Actions against the authority.

1114-o. Conflicts of interest of members of the board of direc-

tors and officers and employees of the authority.

1114-p. Construction and purchase contracts.

1114-q. Separability clause.

1114-r. Effect of inconsistent provisions.

1114-s. Acquisition by eminent domain.

§ 1114-a. Short title. This title may be cited as the "Water Authority of North Shore Act".

§ 1114-b. Definitions. As used or referred to in this title, unless a different meaning clearly appears from the context:

1. "Authority" shall mean the corporation created by section eleven hundred fourteen-d of this title.

2. "Board of directors" shall mean the governing board of the authority.

3. "Bonds" shall mean the bonds, notes or other evidences of indebtedness issued by the authority pursuant to this title.

4. "Calendar year" shall mean the twelve month period from January first through December thirty-first.

5. "Chief executive officer" when referring to a municipality shall mean the chief elected official of such municipality and, when referring to the authority, shall mean the chairperson of the authority.

6. "Civil service commission" shall mean the civil service commission of the county of Nassau.

7. "Comptroller" shall mean the comptroller of the state of New York.

8. "Construction" shall mean the negotiation, acquisition, erection, building, alteration, improvement, testing, increase, enlargement, extension, reconstruction, interconnection, renovation or rehabilitation of a water facility as defined in this section; the inspection and supervision thereof; and the engineering, architectural, legal, appraisal, fiscal, economic and environmental investigations, services and studies, surveys, designs, plans, working drawings, specifications, procedures and other actions incidental thereto.

9. "Costs", as applied to any project, shall include the cost of construction, the cost of the acquisition of all property, including both real, personal and mixed, the cost of demolishing, removing or relocating any buildings or structures on lands so acquired including the cost of acquiring any land to which such buildings or structures may be moved or relocated, the cost of all systems, facilities, machinery, apparatus and equipment, financing charges and bond discount, interest

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to the extent not paid or provided for from revenues or other sources, the cost of engineering and architectural surveys, plans and specifications, bond insurance, bond credit enhancement arrangements, other expenses necessary or incidental to the construction of such project and the financing of the construction thereof, including the cost of legal and financial advices and credit arrangements with banks or other financial institutions, the amount authorized in the resolution of the authority providing for the issuance of bonds to be paid into any reserve or special fund from the proceeds of such bonds and the financing of the placing of any project in operation, including the reimbursement to any municipality, state agency, the state, the United States government, or any other person for expenditures made by them that would be costs of the project hereunder, notwithstanding the fact that such expenditures may have been incurred prior to the effective date of this title.

10. "County" shall mean the county of Nassau.

11. "Distribution system" shall mean the water facility or facilities employed to deliver water from a transmission facility, or where there is no transmission facility, from a supply facility, to the ultimate consumers of water.

12. "District" shall mean the water authority of North Shore water district created by section eleven hundred fourteen-c of this title.

13. "Governing body" shall mean:

(a) in the case of a city, county, town or village or district corporation, the finance board as such term is defined in the local finance law; or

(b) in the case of a public benefit corporation, the members thereof.

14. "Members" shall mean the members of the board of directors.

15. "Municipality" shall mean any city, county, town, village or county or town acting on behalf of an improvement district.

16."Real property" shall mean lands, structures, franchises and interests in land, waters, lands under water, groundwater riparian rights and air rights and any and all things and rights customarily included within the term "real property" and includes not only fee simple absolute, but also any and all lesser interests including, but not limited to, easements, rights of way, uses, leases, licenses and all other incorporeal hereditaments and every estate, interest or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages or otherwise.

17. "State sanitary code" shall mean regulations adopted pursuant to section two hundred twenty-five of the public health law.

18. "State" shall mean state of New York.

19. "State agency" shall mean any state office, public benefit corporation, department, board, commission, bureau or division, or other agency or instrumentality of the state.

20. "Supply facility" shall mean a water facility employed to make groundwater or surface water available for delivery into a transmission facility or distribution system.

21. "System revenues" shall mean all rates, rents, fees, charges, payments and other income and receipts derived from users of the authority without limiting the generality of the foregoing, investment proceeds and proceeds of insurance, condemnation, sales or other dispositions of assets, together with all federal, state or municipal aid as well as any other income derived from the operation of the water facility of the authority.

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22. "Transmission facility" shall mean a water facility used to carry water from a supply facility to a distribution system.

23. "Treasurer" shall mean the treasurer of the authority.

24. "Water facility" or "water facilities" shall mean any plants, structures and other real and personal property acquired, rehabilitated or constructed for the purpose of supplying, transmitting, distributing or treating water, including but not limited to surface or groundwater reservoirs, basins, dams, canals, aqueducts, standpipes, conduits, pipelines, mains, pumping stations, water distribution systems, compensating reservoirs, intake stations, waterworks or sources of water supply, wells, purification or filtration plants or other treatment plants and works, connections, water meters, rights of flowage or diversion and other plants, structures, equipment, towers, conveyances, real or personal property or rights therein and appurtenances thereto necessary or useful and convenient for the accumulation, supply, transmission, treatment or distribution of water.

25. "Water project" shall mean any water facility, including the planning, development, financing or construction thereof.

26. "Watershed rules" shall mean the rules and regulations made by the department of health pursuant to section eleven hundred of the public health law.

§ 1114-c. Water authority of North Shore district. There is hereby created a district to be known as the "water authority of North Shore district" which shall be defined as all that portion of Nassau county being serviced by the New York American water service corporation as its sea cliff operations district as of January first, two thousand eighteen and lying north of the area serviced by Jericho water district.

§ 1114-d. Water authority of North Shore. 1. A corporation known as "water authority of North Shore" is hereby created for the purposes and charged with the duties and having the powers provided in this title. The authority shall be a corporate governmental agency constituting a public benefit corporation and shall be a "public district" for the purposes of section eighty-nine of the public service law. The authority shall be governed by a board of directors consisting of six members. The governing boards of the villages of Old Brookville, Sea Cliff, Roslyn Harbor, and the City of Glen Cove shall each appoint one member. The governing board of the Town of Oyster Bay shall appoint two members representing the residents of the unincorporated hamlets of Glen Head and Glenwood Landing who are serviced by the water authority of North Shore. Each member shall serve for a period of two years. Each chief executive officer shall file with the secretary of state a certificate of appointment or reappointment of any member appointed or reappointed by such chief executive within thirty days of the appointment or reappointment. Members shall receive no compensation for their services but shall be entitled to reimbursement of their necessary expenses, including traveling expenses, incurred in the discharge of their duties. Nothing in this section shall be construed as preventing a chief executive officer of a municipality from appointing himself or herself to be a member of the board of directors.

2. If the authority decides to enter into a contract to purchase or otherwise acquire an interest in the New York American water service corporation or to initiate a condemnation proceeding pursuant to the eminent domain procedure law for the area it services within the water authority of North Shore district, prior to entering into any contract to purchase or otherwise acquire an interest in the New York American water service corporation or the initiation of any condemnation proceed-

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ing by the authority pursuant to the eminent domain procedure law for the area it services within the water authority of North Shore district, the authority shall provide ratepayers within the area serviced by the New York American water service corporation and the public with public forums for the expression and discussion of views regarding such purchase, acquisition or condemnation of the New York American water service corporation. The authority shall hold at least one forum in each of the towns of North Hempstead, Oyster Bay, and city of Glen Cove within the portions of the towns of North Hempstead and Oyster Bay and the city of Glen Cove serviced by the New York American water service corporation.