A09932 Summary:

BILL NOA09932A
 
SAME ASSAME AS S07459-A
 
SPONSORMayer
 
COSPNSRPretlow
 
MLTSPNSR
 
Amd 3602, Ed L; amd 2432, 2435-a, 2436 & 2438, Pub Auth L
 
Establishes the Yonkers city school district joint schools construction and modernization act.
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A09932 Actions:

BILL NOA09932A
 
04/28/2016referred to education
06/07/2016amend and recommit to education
06/07/2016print number 9932a
06/13/2016reference changed to ways and means
06/14/2016reported referred to rules
06/15/2016reported
06/15/2016rules report cal.407
06/15/2016ordered to third reading rules cal.407
06/15/2016passed assembly
06/15/2016delivered to senate
06/15/2016REFERRED TO RULES
06/16/2016SUBSTITUTED FOR S7459A
06/16/20163RD READING CAL.1870
06/16/2016PASSED SENATE
06/16/2016RETURNED TO ASSEMBLY
09/20/2016delivered to governor
09/29/2016signed chap.355
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A09932 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9932A
 
SPONSOR: Mayer
  TITLE OF BILL: An act establishing the Yonkers city school district joint schools construction and modernization act; and to amend the education law and the public authorities law, in relation to implement- ing such joint schools construction and modernization act   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to provide the City of Yonkers and the Yonkers City School District with increased flexibility to meet the needs of its school children by providing alternative financing mech- anisms. This bill would ensure access to adequate capital for the financing of new school facilities and the modernization of existing school facilities in Yonkers.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill declares that the act shall be called "the Yonkers city school district joint schools construction and modernization act". Section 2 of the bill sets out legislative findings declaring the need to modernize existing school buildings and construct new school build- ings in Yonkers based on the age of the buildings, the deterioration of the buildings, the growing student population, and the city's inability to finance such repairs. If the quality of education in the city is to be improved, existing schools must be rehabilitated and reconstructed and new schools must be built. Renovations shall result in facilities which are more conducive to current education requirements and which will be equipped to operate at lower maintenance costs with improved energy efficiency. This section further declares that the city of Yonk- ers is unable to pursue a modernization program without special legis- lation as was provided to the Buffalo, Rochester, and Syracuse city school districts. As a result, the city of Yonkers has an immediate need for special legislation providing for new school buildings and a joint schools construction and modernization program patterned after the mech- anism for funding received by or related to the Buffalo, Rochester, and Syracuse school districts. Section 3 of the bill sets out definitions. Section 4 of the bill creates the Yonkers Joint Schools Construction Board (YJSC) for the accomplishment of the purposes specified in this act, establishes the general powers and responsibilities of the YJSC board, and provides a conflict of interest policy and an anti-nepotism clause for the independent members designated to serve on the YJSC board. Section 5 of the bill requires the Yonkers city school district super- intendent and the Yonkers board of education to submit a draft plan to the YJSC board recommending the projects to be undertaken in Phase one, and provides that the YJSC board shall consider the plan in developing a comprehensive joint schools construction and modernization plan. The YJSC board is required to hold not less than one public hearing per school site before developing such plan. Once the joint schools construction and modernization plan is developed, a portion of the plan must be approved by the state Comptroller. Section 6 of the bill determines project eligibility by requiring that projects eligible for selection must be included by the city school district in its joint schools construction and modernization plan as a special section of the district's five-year capital facilities plan that is required pursuant to subdivision 6 of section 3602 of the education law and the regulations of the commissioner. Section 7 of the bill sets out the selection process for projects under- taken pursuant to the act and requires the Commissioner of Education to approve all project plans and specifications. Upon approval, the YJSC board is authorized to enter into contracts for such approved projects. Section 8 of the bill permits the YJSC board to enter into contracts relating to the design, construction, reconstruction, rehabilitation, equipping, financing, and management of one or more projects for a peri- od not to exceed 30 years. This section requires that contracts must be awarded either pursuant to the public bidding process, in compliance with section 103 of the general municipal law, or on the basis of factors other than cost alone, including, but not limited to, adherence to facility design, quality and durability of materials, energy effi- ciency, incorporating systems and approaches which provide maximum facility value using the best current development, construction, leas- ing, financing techniques available, and maximization of state building aid. This section further requires that any contract involving construction, but which is not awarded pursuant to the public bidding process, must include a project labor agreement. This section deems all projects public work projects, makes applicable all provisions of Arti- cle 8 of the Labor Law, and deems contracts for projects state contracts. In addition, this section requires the YJSC board to submit estimated project costs to the Commissioner of Education. If total project costs exceed the sum of the approved cost allowance of each building project, and the city school district has not satisfactorily demonstrated the availability of additional local shares for such excess costs, then the YJSC board cannot proceed with the final plans of such projects until the estimated project costs have been reduced. Finally, this section requires every contract entered into to contain language requiring the review and approval of the Yonkers board of education for the design of projects and the review and approval of the Commissioner of Education for the design and construction standards of projects. Section 9 of the bill establishes the selection process for the program manager, provides the responsibilities of the program manager, and requires the program manager to oversee the implementation of the joint schools construction and modernization plan. Section 10 of the bill directs the YJSC board to consult with the commissioner in creating guidelines for the request for proposals proc- ess, establishes the required information to be included in each project proposal, and provides criteria for evaluating such proposals received. Such factors considered during the evaluation process include a proposal's maximization of state building aid, net cost, and the finan- cial and organizational capacity of contractors and subcontractors in relation to the magnitude of work they may perform, the record of performance of contractors and subcontracts on previous work, the record of contractors and subcontractors in complying with existing labor stan- dards and maintain harmonious labor relations, and the commitment of contractors to work with minority and women owned business enterprises pursuant to article 15-A of the executive law through joint ventures or subcontractor relationships. Section 11 of the bill requires the Independent Compliance Officer to monitor all projects and outlines such officer's responsibilities, including the requirement to develop and implement an MWBE/DBE Utiliza- tion Master Plan for the governance of all project contracts. Section 12 of the bill authorizes building aid that would otherwise be payable for the school district portion of expenditures for capital outlays and debt service for each project undertaken pursuant to this act, be paid to the city. Section 13 of the bill requires the Yonkers board of education to oper- ate and maintain projects in the same manner as existing school build- ings. In addition, this section exempts projects from taxes. Section 14 of the bill provides that payment of debt service on bonds, notes, or other obligations issued to secure financing for projects cannot be considered in the Maintenance of Effort amounts determined in accordance with the education law. Section 15 of the bill reiterates that all projects must be reviewed and approved by the State Education Department. Section 16 of the bill establishes the financing powers of the YJSC board to finance project costs and authorizes the YJSC board to have debt issued on its behalf in an aggregate principal amount not to exceed $523 million, plus such additional amount of debt necessary to provide for a debt service reserve fund and to pay reasonable costs of issuance. Section 17 of the bill allows projects to be financed through the city of Yonkers industrial development agency or any successor agency and establishes a process for the intercept of state aid if the agency was not repaid. Section 18 of the bill requires the YJSC board to issue annual reports on the status of the projects and a final report identifying the fiscal and pedagogical results of the projects undertaken pursuant to this act, along with recommendations for its continuance to a phase two, amend- ments, or discontinuance. Section 19 of the bill sets forth the formula to be used to determine the interest rate applicable for purposes of section 3602 of the Educa- tion Law, if the city of Yonkers industrial development agency is used to finance a project. Section 20 of the bill lists projects authorized pursuant to this act within subdivision 6 of section 3602 of the Education Law, for purposes of Building Aid. Section 21 of the bill amends section 2432 of the public authorities law, which relates to the Municipal Bond Bank Agency (MBBA), by adding Yonkers to the definition of a "special program municipality" solely for the purpose of this act. Section 22 of the bill makes conforming amendments to section 2435-a of the public authorities law, which relates to the MBBA enabling statute. Section 23 of the bill makes conforming amendments to section 2436 of the public authorities law, which relates to the MBBA enabling statute. Section 24 of the bill makes conforming amendments to section 2438 of the public authorities law, which relates to the MBBA enabling statute. Section 25 of the bill establishes the effects of inconsistent provisions. Section 26 of the bill establishes the severability of this act, wherein if any provisions or parts of the act are deemed invalid by a judge, the remainder of the act shall still apply, and only those parts or provisions adjudged shall be affected. Section 27 provides the effective date.   JUSTIFICATION: The school buildings in Yonkers are in serious disrepair, jeopardizing the education of the city's school children. The average age of the school buildings in Yonkers is 75 years old, with the oldest building at 119 years old. Most of the schools are past their useful life and many are in need of extensive refurbishment. Additionally, Yonkers schools have a growing student population and the city is currently managing a seat-deficit of 4,104 seats. Increased enrollment has required overuse of available classroom space for regular instruction and has resulted in a shortage of libraries, art rooms, music rooms, computer rooms, and other common school facility elements. Even by maximizing their debt borrowing under existing statutory limits, the Yonkers city school district is unable to modernize and upgrade their facilities at a reasonable rate as needs are far greater than the availability of capi- tal. This bill would allow for innovative and cost effective financing options to construct up to three new school buildings and reconstruct existing school buildings. The bill would also require a public bidding process to award contracts, would solicit input from the Comptroller, and require project review and approval by the State Education Depart- ment to ensure increased accountability.   PRIOR LEGISLATIVE HISTORY: New Bill   FISCAL IMPLICATIONS: Undetermined.   EFFECTIVE DATE: This bill shall take effect immediately.
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A09932 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9932--A
 
                   IN ASSEMBLY
 
                                     April 28, 2016
                                       ___________
 
        Introduced  by  M. of A. MAYER, PRETLOW -- read once and referred to the
          Committee on Education -- committee discharged, bill amended,  ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  establishing  the  Yonkers  city  school district joint schools
          construction and modernization act; and to amend the education law and
          the public authorities law, in relation  to  implementing  such  joint
          schools construction and modernization act
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  "the Yonkers city school district joint schools construction and modern-
     3  ization act".
     4    §  2.  Legislative  findings  and declaration of need. The legislature
     5  finds that Yonkers schools have a growing population yet the average age
     6  of the school buildings in Yonkers is seventy-five years with the oldest
     7  building at one hundred nineteen years old; nine are  over  ninety-seven
     8  years  old  and most are past their useful life and in need of extensive
     9  refurbishment.  The age of buildings in Yonkers  is  significantly  over
    10  the  sixty-five  years average age of schools in New York State. Even by
    11  maximizing the debt borrowing under existing constitutional and statuto-
    12  ry limits Yonkers city is unable to finance modernization of its facili-
    13  ties at a reasonable rate as needs are far greater than the availability
    14  of capital. The city school  district's  facilities  are  landlocked  in
    15  highly  dense  urban  neighborhoods  lacking  proper  school  bus loops,
    16  athletic facilities and other essential school  amenities  required  for
    17  the  safe  and  proper administration of an educational institution, and
    18  while Yonkers city has invested significant  capital,  deterioration  of
    19  building stock outpaces the district's ability to repair it.
    20    The  legislature  further finds that such deterioration of the schools
    21  and inability to expand school  sites  to  provide  even  a  modicum  of
    22  customary  facilities  and amenities to students is a serious impediment
    23  to learning and teaching. If the quality of education in the city is  to
    24  be  improved,  existing  schools must be rehabilitated and reconstructed
    25  and new city schools must be built. This will include the retirement  of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14978-06-6

        A. 9932--A                          2
 
     1  old  facilities  which  will  be  replaced by more efficiently operating
     2  buildings with better use of space. Renovations shall result in  facili-
     3  ties  more  conducive  to  current  education  requirements and shall be
     4  equipped  to  operate  at  lower  maintenance costs with improved energy
     5  efficiency.
     6    The city of Yonkers' student population has  been  rising,  especially
     7  with  students  with special needs and students with English as a second
     8  language. Yonkers' increased enrollment has required overuse  of  avail-
     9  able  classroom space for regular instruction and resulted in a shortage
    10  of libraries, art rooms, music rooms, computer rooms  and  other  common
    11  school facility elements.  Construction of new facilities will allow for
    12  reallocation  of  classroom space to essential specialized uses. However
    13  the city's fiscal limitations magnify the inability to maintain existing
    14  aging facilities or provide new facilities to accommodate the increasing
    15  student populations.   Yonkers  is  unable  to  pursue  a  modernization
    16  program  without  special  legislation  as  was provided to the Buffalo,
    17  Rochester and Syracuse city school districts. As a result  the  city  of
    18  Yonkers  has an immediate need for special legislation providing for new
    19  school buildings and a  joint  schools  construction  and  modernization
    20  program patterned after the mechanism for funding received by or related
    21  to the Buffalo, Rochester and Syracuse school districts.
    22    The  legislature  further  finds  that  as  a result of the foregoing,
    23  legislation granting certain new or additional authority to the city and
    24  the city school district of the city of Yonkers as  set  forth  in  such
    25  legislation  is necessary, which authority should enable both parties to
    26  better, more economically and more innovatively manage the  acquisition,
    27  design,  construction,  financing,  operation,  and  maintenance  of new
    28  educational facilities.
    29    § 3. Definitions. As used or referred to in this act:
    30    (a) "Capital improvement plan" shall mean the city  school  district's
    31  ongoing,  annually  updated  five-year  capital  financing  plan for the
    32  construction and  reconstruction  of  facilities,  the  acquisition  and
    33  replacement  of  equipment and the completion of other long-term capital
    34  projects undertaken and financed by the issuance of  general  obligation
    35  bonds  by  the  city  on  behalf of the city school district pursuant to
    36  existing state law applicable to all school districts.
    37    (b) "City" shall mean the city of Yonkers.
    38    (c) "City school district" shall mean the city school district of  the
    39  city of Yonkers acting by and through the board of education of the city
    40  school district of the city of Yonkers.
    41    (d) "City council" shall mean the city council of the city of Yonkers.
    42    (e)  "Commissioner"  shall  mean  the commissioner of education of the
    43  state of New York.
    44    (f) "Compliance officer" shall mean  an  independent  compliance  firm
    45  with  an  in-depth  knowledge  base and breadth of experience conducting
    46  minority and women-owned business enterprise  (MWBE)  and  disadvantaged
    47  business  enterprise  (DBE) utilization compliance monitoring for public
    48  contracts within New York state including school districts and  auditing
    49  contractors   and  subcontractors  in  construction  and  reconstruction
    50  projects like those to be undertaken and  contracted  for  by  the  YJSC
    51  board  pursuant  to  this  act.   Such firm shall support the facilities
    52  modernization program by developing and implementing an MWBE/DBE  Utili-
    53  zation Master Plan for the governance of all project contracts to ensure
    54  compliance  with  all  federal,  State, and local laws, rules, and regu-
    55  lations as applicable.
    56    (g) "Comptroller" shall mean the comptroller of the state of New York.

        A. 9932--A                          3
 
     1    (h) "Joint schools construction  and  modernization  plan"  or  "joint
     2  schools  construction  and modernization program" shall mean the compre-
     3  hensive, strategic  plan  developed  by  the  city  school  district  as
     4  described in section five of this act.
     5    (i) "MWBE/DBE utilization master plan" shall be a plan prepared by the
     6  compliance officer to the satisfaction of the YJSC board to meet dispar-
     7  ity as established by existing state studies.
     8    (j)  "Person"  shall mean a municipality or other governmental body, a
     9  public corporation or an authority, a  private  corporation,  a  limited
    10  liability company or partnership, or an individual.
    11    (k)  "Program  manager"  shall  mean an independent program management
    12  firm that has been selected by the city and  the  city  school  district
    13  through  the  request for proposal process to oversee the implementation
    14  of the joint schools construction and modernization plan  to  assist  it
    15  in:  (1)  developing and implementing procedures for the projects under-
    16  taken and contracted for by the city school district or the YJSC  board;
    17  (2)  reviewing plans and specifications for projects; (3) developing and
    18  implementing policies and procedures to utilize employment resources  to
    19  provide sufficient skilled employees for such projects, including devel-
    20  oping  and implementing training programs, if required; and (4) managing
    21  such projects.
    22    (l) "Project" shall mean (1) work at an existing school building  site
    23  that  involves the design, reconstruction, or rehabilitation of all or a
    24  portion of an existing school building for its continued use as a school
    25  of the city school district, which may include an addition  to  existing
    26  school  buildings  for such continued use and which also may include (i)
    27  the construction or reconstruction of athletic fields, playgrounds,  and
    28  other recreational facilities for such existing school buildings, and/or
    29  (ii)  the  acquisition  and  installation of all equipment necessary and
    30  attendant to and for the use of such existing  school  buildings  and/or
    31  (2)  the  acquisition  of  land  for  new  school buildings and athletic
    32  fields,  playgrounds  and  other  recreations  facilities;  and/or   (3)
    33  construction  of  up  to three new school buildings and land acquisition
    34  from the city  or  private  parties  which  also  may  include  (i)  the
    35  construction  or  reconstruction  of  athletic  fields, playgrounds, and
    36  other recreational facilities for such new school buildings and (ii) the
    37  acquisition and installation of all equipment necessary and attendant to
    38  and for the use of such new school buildings; and/or (iii) the  acquisi-
    39  tion  of additional real property by the city to facilitate the project.
    40  For purposes of this act, the term "construction" shall include all work
    41  related to construction, demolition, reconstruction,  excavation,  reha-
    42  bilitation, repairs, renovations, alterations, or improvements.
    43    (m)  "Project  labor  agreement"  shall  mean  a  pre-hire  collective
    44  bargaining agreement between a contractor and a bona fide  building  and
    45  construction trades labor organization establishing the signatory unions
    46  as  the  collective  bargaining representatives for all persons who will
    47  perform work on the project, and which provides  that  only  contractors
    48  and  subcontractors  who  sign a pre-negotiated agreement with the labor
    49  organization can perform project work.
    50    (n) "YJSC board" or "board"  shall  mean  the  Yonkers  joint  schools
    51  construction  board,  a  joint  instrumentality of the city and the city
    52  school district, acting for and on behalf  of  the  city  and  the  city
    53  school district.
    54    (o) "SED" shall mean the state education department.
    55    (p)  "Related party" means: (1) any member, officer or employee of the
    56  board, or any other person who exercises the powers of members, officers

        A. 9932--A                          4
 
     1  or employees over the affairs of the board;  (2)  any  relative  of  any
     2  individual  described  in  paragraph one of this subdivision; or (3) any
     3  entity in which any individual described in paragraphs one  and  two  of
     4  this subdivision has a thirty-five percent or greater ownership or bene-
     5  ficial  interest or, in the case of a partnership or professional corpo-
     6  ration, a direct or  indirect  ownership  interest  in  excess  of  five
     7  percent.
     8    (q)  "Related  party  transaction" means any transaction, agreement or
     9  any other arrangement in which a related party has a financial  interest
    10  and in which the board is a participant.
    11    §  4. Yonkers joint schools construction board. (a) For the benefit of
    12  the city of Yonkers and the inhabitants thereof, a board to be known  as
    13  the  Yonkers joint schools construction board, and sometimes referred to
    14  as the YJSC board, is hereby established for the accomplishment  of  the
    15  purposes specified in this act. The YJSC board shall conduct meetings as
    16  often  as deemed necessary to accomplish its purposes, but not less than
    17  quarterly.
    18    (b) (1) The board shall be composed of nine  voting  members:  one  of
    19  whom,  sitting  ex  officio,  shall be the mayor of Yonkers; one of whom
    20  shall be the president of the Yonkers board of education;  one  of  whom
    21  shall  be the superintendent of the Yonkers city school district; one of
    22  whom shall be the designee of the Yonkers council of Parent Teach  Asso-
    23  ciations;  two  of  whom shall be Yonkers city council designees of whom
    24  one shall be from the majority and one from the minority; and  three  of
    25  whom  shall be jointly designated by the mayor and the superintendent of
    26  the city school district, but shall be not employed by the city  or  the
    27  school  district.  In selecting designees to serve on the board, prefer-
    28  ence shall be granted to those with expertise or  experience  in  school
    29  construction,  school  financing,  and education policy.  The members of
    30  the board shall serve without salary, but each  member  shall  be  reim-
    31  bursed  for actual and necessary expenses incurred in the performance of
    32  such member's official duties as a member of the board.  To ensure flex-
    33  ibility and continuity, the mayor and/or  the  superintendent  may  from
    34  time  to time designate and authorize their chief of staff, chief finan-
    35  cial officer, or other designee to attend and vote in their stead.
    36    (2) Notwithstanding any inconsistent provision of any general, special
    37  or local law, ordinance, resolution or charter,  no  officer,  board  of
    38  trustees,  member  or  employee  of the state, any city, county, town or
    39  village, any governmental entity operating any public school or college,
    40  any school district or any other public agency or instrumentality  which
    41  exercises governmental powers under the laws of the state, shall forfeit
    42  his  or  her  office or employment by reason of his or her acceptance of
    43  appointment as a member, officer or employee  of  the  YJSC  board,  nor
    44  shall  service  as such member, officer or employee of the YJSC board be
    45  deemed incompatible or in  conflict  with  such  office  or  employment,
    46  except  for  the  three  board members who were jointly appointed by the
    47  mayor and the superintendent of the city school district.
    48    (3) Except for the mayor of Yonkers,  the  president  of  the  Yonkers
    49  board  of  education and the superintendent of the city school district,
    50  the remaining members of the board shall  be  independent  members.  The
    51  official  or  officials  having  the authority to appoint or remove such
    52  remaining members shall take such actions as may be necessary to satisfy
    53  this requirement and further, shall consider the  prospective  diversity
    54  of  the members of the board when making their determinations to appoint
    55  any member. For purposes of this section, an independent member  is  one
    56  who:  (i) is not, and in the past two years has not been employed by the

        A. 9932--A                          5
 
     1  board, the city or the school district; (ii) is not, and in the past two
     2  years has not been, employed by an  entity  that  received  remuneration
     3  valued  at  more  than  fifteen  thousand dollars for goods and services
     4  provided  to  the board, the city or the school district or received any
     5  other form of financial assistance valued at more than fifteen  thousand
     6  dollars  from the board, the city or the school district; (iii) is not a
     7  relative of an executive officer or employee in  an  executive  position
     8  with the city of Yonkers or the Yonkers city school district or a member
     9  of  the Yonkers city council or the Yonkers board of education; and (iv)
    10  is not, and in the past two years has not been,  a  lobbyist  registered
    11  under a state or local law and paid by a client to influence the manage-
    12  ment  decisions, contract awards, rate determinations or any other simi-
    13  lar actions of the board, the city or the school district.
    14    (4) Notwithstanding any other provision of  any  general,  special  or
    15  local  law,  municipal  charter  or  ordinance  to  the  contrary, board
    16  members, officers and employees of the board shall file annual financial
    17  disclosure statements with the county board of ethics for the county  in
    18  which  the  board  has  it  primary office pursuant to article 18 of the
    19  general municipal law.
    20    (c) A majority of the whole board shall constitute a  quorum  for  the
    21  transaction  of  any business or the exercise of any power of the board.
    22  No action shall be taken by the board except  pursuant  to  a  favorable
    23  vote  of at least a majority of the whole board participating in a meet-
    24  ing at which such action is taken.
    25    (d) The board shall be effective upon filing  with  the  secretary  of
    26  state  a  certificate of organization indicating that its organizational
    27  meeting has been held and its  conflict  of  interest  policy  has  been
    28  adopted  and  shall  continue after the tenth anniversary of its date of
    29  organizational meeting  during  any  period  when  bonds  or  notes  are
    30  outstanding.
    31    (e) Except as otherwise limited by this act, the YJSC board shall have
    32  the following powers and responsibilities in addition to those specially
    33  conferred  elsewhere  in this act, subject only to agreements with bond-
    34  holders:
    35    (1) to make plans and studies necessary, convenient or  desirable  for
    36  the  effectuation of the purposes and powers of the board and to prepare
    37  recommendations in regard thereto;
    38    (2) to make use of existing studies, surveys, plans,  data  and  other
    39  material in the possession of the city, the city school district, or any
    40  person in order to avoid duplication of effort;
    41    (3)  to  enter  into  cooperative agreements with the state, any state
    42  agency, the city, or the city school district for  any  lawful  purposes
    43  necessary  or  desirable  to  effect  the purposes of this act upon such
    44  terms and conditions as shall be determined to be reasonable;
    45    (4) to develop and maintain the joint schools construction and modern-
    46  ization plan for so long as the projects  authorized  pursuant  to  this
    47  act, are yet to be undertaken; and
    48    (5)  to  do all things necessary, convenient or desirable to carry out
    49  its purposes and for the exercise of the powers granted in this act.
    50    (f) (1) The board shall adopt a conflict of interest policy to  ensure
    51  that  its  directors,  officers and employees act in the city's and city
    52  school  district's  best  interest  and  comply  with  applicable  legal
    53  requirements, including but not limited to the requirements set forth in
    54  subdivision (g) of this section.
    55    (2)  The  conflict of interest policy shall include, at a minimum, the
    56  following provisions: (i) a definition of the circumstances that consti-

        A. 9932--A                          6
 
     1  tute a conflict of interest; (ii) procedures for disclosing  a  conflict
     2  of  interest  to the board; (iii) a requirement that the person with the
     3  conflict of interest not be present at or participate in board  deliber-
     4  ation  or vote on the matter giving rise to such conflict, provided that
     5  nothing in this subdivision shall prohibit  the  board  from  requesting
     6  that  the  person  with  the conflict of interest present information as
     7  background or answer questions at a board meeting prior to the commence-
     8  ment of deliberations or voting relating  thereto;  (iv)  a  prohibition
     9  against any attempt by the person with the conflict to influence improp-
    10  erly  the  deliberation  or  voting  on  the  matter giving rise to such
    11  conflict; (v) a requirement that the existence  and  resolution  of  the
    12  conflict  be documented in the board's records, including in the minutes
    13  of any meeting at which the conflict was discussed or  voted  upon;  and
    14  (vi)  procedures  for  disclosing,  addressing,  and documenting related
    15  party transactions in accordance with subdivision (g) of this section.
    16    (3) The conflict of interest policy shall require that  prior  to  the
    17  filing  of the certificate of organization, and annually thereafter, all
    18  members of the board shall complete, sign and submit to the county board
    19  of ethics for the county in which  the  board  has  its  primary  office
    20  pursuant  to article 18 of the general municipal law a written statement
    21  identifying, to the best of the member's knowledge, any entity of  which
    22  such member is an officer, director, trustee, member, owner (either as a
    23  sole  proprietor or a partner), or employee and with which the board has
    24  a relationship, and any transaction in which the board is a  participant
    25  and  in  which the member might have a conflicting interest.  The policy
    26  shall require that each board  member  annually  resubmit  such  written
    27  statement.  The  county  board  of  ethics  shall  provide a copy of all
    28  completed statements to each board member.
    29    (4) If the board has complied  substantially  with  section  2824  and
    30  subdivision 3 of section 2825 of the public authorities law, it shall be
    31  deemed in compliance with this subdivision.
    32    (5)  Nothing  in  this subdivision shall be interpreted to require the
    33  board to adopt any specific conflict of interest  policy  not  otherwise
    34  required  by  this subdivision or any other law or rule, or to supersede
    35  or limit  any  requirement  or  duty  governing  conflicts  of  interest
    36  required by any other law or rule.
    37    (g)  (1)  The board shall not enter into any related party transaction
    38  unless the transaction is determined by the board to be fair, reasonable
    39  and in the board's best interest at the time of such determination.  Any
    40  member, officer or employee who has an interest in a related party tran-
    41  saction  shall  disclose  in  good faith to the board the material facts
    42  concerning such interest.
    43    (2) With respect to any related party transaction in which  a  related
    44  party has an substantial financial interest, the board, shall: (i) prior
    45  to  entering  into the transaction, consider alternative transactions to
    46  the extent available; (ii) approve the transaction by not  less  than  a
    47  majority  vote of the entire board; and (iii) contemporaneously document
    48  in writing the basis for the board's approval, including  its  consider-
    49  ation of any alternative transactions.
    50    (3)  SED  may  bring  an action to enjoin, void or rescind any related
    51  party transaction or proposed related party  transaction  that  violates
    52  any  provision of this section or was otherwise not reasonable or in the
    53  best interests of the board at the time the transaction was approved, or
    54  to seek restitution, and the removal of members or officers, or seek  to
    55  require  any  person or entity to: (i) account for any profits made from
    56  such transaction, and pay them to the board;  (ii)  pay  the  board  the

        A. 9932--A                          7
 
     1  value  of  the  use  of any of its property or other assets used in such
     2  transaction; (iii) return or replace any property or other  assets  lost
     3  to  the  board as a result of such transaction, together with any income
     4  or  appreciation  lost  to  the  board by reason of such transaction, or
     5  account for any proceeds of sale of such property, and pay the  proceeds
     6  to  the board together with interest at the legal rate; and (iv) pay, in
     7  the case of willful and intentional conduct, an amount up to double  the
     8  amount of any benefit improperly obtained.
     9    (4) No related party may participate in deliberations or voting relat-
    10  ing  to  a related party transaction in which he or she has an interest;
    11  provided that nothing in this section  shall  prohibit  the  board  from
    12  requesting  that  a  related  party present information as background or
    13  answer questions concerning a related party transaction at a board meet-
    14  ing prior to the commencement of deliberations or voting relating there-
    15  to.
    16    (h) Notwithstanding any other provision of  any  general,  special  or
    17  local  law,  municipal  charter  or  ordinance  to the contrary, for the
    18  purposes of title 2 of article 1 of the public authorities law the board
    19  shall be considered a local authority.
    20    § 5. Joint schools construction and modernization plan; project costs.
    21  (a) The superintendent, in consultation with the Yonkers board of educa-
    22  tion, shall submit to the YJSC board a comprehensive draft  plan  recom-
    23  mending  and  outlining  the  projects  for  phase one it proposes to be
    24  undertaken pursuant to this act. The YJSC board shall consider the  plan
    25  in  developing a comprehensive joint schools construction and moderniza-
    26  tion plan recommending and outlining the  projects  it  proposes  to  be
    27  potentially  undertaken  pursuant  to  this act. The comprehensive joint
    28  schools construction and modernization plan shall include:
    29    (1) an estimate of total costs to be  financed,  not  to  exceed  five
    30  hundred  twenty-three  million  dollars  ($523,000,000), plus such addi-
    31  tional amount of bonds, notes and other obligations necessary to provide
    32  for a debt service reserve fund and to pay reasonable costs of issuance,
    33  a proposed financing plan, a proposed method  of  financing,  terms  and
    34  conditions  of  the financing, and estimated financing costs (calculated
    35  on a net interest cost basis). The  plan  shall  address  what  specific
    36  options would be used to ensure that sufficient resources exist to cover
    37  the local share of any such project cost on an annual basis;
    38    (2)  information  concerning the number of buildings to be constructed
    39  or reconstructed to the satisfaction of SED;
    40    (3) a district wide technology plan and a description of related inci-
    41  dental expenses;
    42    (4) information concerning the potential persons to be involved in the
    43  financing and such persons' roles and responsibilities;
    44    (5) estimates on the design, construction, reconstruction and rehabil-
    45  itation  costs  by  project,  any  administrative  costs  for  potential
    46  projects,  and  an  outline  of the timeframe expected for completion of
    47  each potential project;
    48    (6) direction to the program manager  in  the  implementation  of  the
    49  plan;
    50    (7)  any  proposed  amendments to the city school district's five year
    51  capital facilities plan submitted in accordance with  subdivision  6  of
    52  section  3602  of the education law, the regulations of the commissioner
    53  and the provisions of this section; and
    54    (8) a diversity plan, in compliance with section eleven of  this  act,
    55  to  develop  diversity  goals, including appropriate community input and
    56  public discussion, and develop strategies that would create and  coordi-

        A. 9932--A                          8
 
     1  nate  any  efforts  to ensure a more diverse workforce for the projects.
     2  The MWBE/DBE utilization master plan should address  accountability  for
     3  attainment  of  the  diversity  goals, what forms of monitoring would be
     4  used, and how such information would be publicly communicated.  Prior to
     5  the  development  of  the  comprehensive  joint schools construction and
     6  modernization plan, the YJSC board and district shall hold not less than
     7  one public hearing per school site to ensure sufficient public input and
     8  allow for significant public discussion on school building needs in such
     9  city, with at least one such hearing to be  held  in  each  neighborhood
    10  potentially impacted by a proposed project and in each neighborhood from
    11  which  the  majority  of students impacted reside.   The hearing must be
    12  widely publicized, including, but not limited to, social media  distrib-
    13  ution  by  the board of education and the YJSC board.  The Yonkers joint
    14  schools construction board shall submit  the  components  of  such  plan
    15  described in paragraph one of this subdivision to the comptroller, along
    16  with  any other information requested by the comptroller, for his or her
    17  review and approval.
    18    (b) The aggregate amount of project costs  authorized  and  undertaken
    19  pursuant  to this act as phase one shall not exceed five hundred twenty-
    20  three million dollars ($523,000,000), plus  such  additional  amount  of
    21  bonds,  notes  and  other  obligations  necessary  to provide for a debt
    22  service reserve fund and to pay reasonable  costs  of  issuance,  unless
    23  otherwise authorized by law. Due to the urgent need to address increased
    24  enrollment,  phase  one shall consist of construction of up to three new
    25  schools along with critical infrastructure system  replacements  at  the
    26  existing  schools  to  maintain  safe  operation of the existing schools
    27  until  future  renovations  are  made  as  part  of  the  joint  schools
    28  construction and modernization plan. Such infrastructure system replace-
    29  ment will be coordinated so that the work remains in place and is incor-
    30  porated into the future renovation of the schools.
    31    § 6. Project eligibility. To be eligible for selection as a project to
    32  be  undertaken  pursuant to this section, such project shall be included
    33  by the city school  district  in  its  joint  schools  construction  and
    34  modernization  plan  as  a  special  section of the district's five-year
    35  capital facilities plan that is required pursuant to  subdivision  6  of
    36  section 3602 of the education law and the regulations of the commission-
    37  er.  The  facilities  modernization  plan  and any portions of such plan
    38  relating to such projects, including any amendments thereto, shall  have
    39  the  contents  required in the regulations of the commissioner and shall
    40  be submitted to the commissioner for approval. Notwithstanding  anything
    41  to  the  contrary in this section, the city school district may elect to
    42  finance a project under its ongoing capital improvement plan pursuant to
    43  the powers and authority granted to all school districts in the state or
    44  as part of the joint schools construction and modernization plans pursu-
    45  ant to the special powers and  authority  granted  to  the  city  school
    46  district  and  the  YJSC board by this act.  Commencing on the effective
    47  date of this section, the city school district shall create and maintain
    48  a written schedule listing each project undertaken, certified to annual-
    49  ly by the city's commissioner of finance, which schedule shall  identify
    50  each  project  and its cost and formally designate such project as being
    51  undertaken pursuant to either the joint schools construction and modern-
    52  ization plan or the capital improvement plan.
    53    § 7. Determination of projects. (a) Upon approval by the  commissioner
    54  of  the  YJSC board's joint schools construction and modernization plan,
    55  the YJSC board may select projects to be  undertaken  pursuant  to  this
    56  section, as provided for in such approved joint schools construction and

        A. 9932--A                          9
 
     1  modernization plan. After the board has selected a new project and plans
     2  and  specifications  for such project have been prepared and approved by
     3  the board, which are consistent with the  approved  comprehensive  plan,
     4  the board shall deliver such plans and specifications to the commission-
     5  er  for  his  or  her  approval. After approval by the commissioner, the
     6  plans and specifications shall be returned to the board. All such  spec-
     7  ifications  shall detail the number of students the completed project is
     8  intended to serve, the site description, the types  of  subjects  to  be
     9  taught,  the types of activities for school, recreational, social, safe-
    10  ty, or other purposes intended to be incorporated in the school building
    11  or on its site and such other information as the board and  the  commis-
    12  sioner shall deem necessary or advisable.
    13    (b) The YJSC board, upon receipt of such approved plans and specifica-
    14  tions  for  a  project  may  enter  into  contracts for such project, as
    15  described in section eight of this act.
    16    §  8.  Contracts.  Notwithstanding  the  provisions  of  any  general,
    17  special, or local law or judicial decision to the contrary:
    18    (a)  (1)  The  YJSC  board is hereby authorized and empowered to enter
    19  into contracts relating to the design (pursuant to  the  approved  plans
    20  and   specifications),   construction,  reconstruction,  rehabilitation,
    21  equipping, financing or managing of  one  or  more  projects  undertaken
    22  pursuant to this section with any person, upon such terms and conditions
    23  and  for  such  consideration  and  for  such terms and duration, not to
    24  exceed thirty years, as may be agreed upon by the board and such  person
    25  notwithstanding  the  provisions of any other general, special, or local
    26  law to the contrary, relating to the  length,  duration,  and  terms  of
    27  contracts  that  the city or the city school district may enter into, as
    28  set forth in subdivision (e) of this  section.    The  district  program
    29  manager  shall  establish  reasonable guidelines or limits on incidental
    30  costs to assure that to the greatest extent possible such costs for each
    31  project do not exceed the state's maximum incidental cost allowance,  in
    32  order to maximize efficient use of state building aid.
    33    (2)  Notwithstanding  any  other provision of law to the contrary, the
    34  YJSC board shall submit estimated project costs for the projects author-
    35  ized pursuant to paragraph five of subdivision (a) of  section  five  of
    36  this  act after the completion of schematic plans and specifications for
    37  review by the commissioner. If the total project costs  associated  with
    38  such  projects  exceed the sum of the estimated individual approved cost
    39  allowance of each building project by more than the lesser of  fifty-two
    40  million  dollars ($52,000,000) or ten percent of the approved costs, and
    41  the city school district has not otherwise demonstrated to the satisfac-
    42  tion of the SED the availability of additional  local  shares  for  such
    43  excess costs, then the YJSC board shall not proceed with the preparation
    44  of  final  plans and specifications for such projects until the projects
    45  have been redesigned or value-engineered  to  reduce  estimated  project
    46  costs so as not to exceed the above cost limits.
    47    (3)  Notwithstanding  any  other provision of law to the contrary, the
    48  YJSC board shall submit estimated project costs for the projects author-
    49  ized pursuant to paragraph five of subdivision (a) of  section  five  of
    50  this  act  after  the completion of fifty percent of the final plans and
    51  specifications for review by the  commissioner.  If  the  total  project
    52  costs  associated  with  such  projects  exceed the sum of the estimated
    53  individual approved cost allowance of each building project by more than
    54  the lesser of fifty-two million dollars ($52,000,000) or ten percent  of
    55  the  approved  costs,  and  the  city  school district has not otherwise
    56  demonstrated to the satisfaction of the SED the  availability  of  addi-

        A. 9932--A                         10

     1  tional  local share for such excess costs, then the YJSC board shall not
     2  proceed with the completion of the remaining fifty percent of the  plans
     3  and  specifications for such projects until the projects have been rede-
     4  signed  or  value-engineered to reduce estimated project costs so as not
     5  to exceed the above cost limits.
     6    (b) A contract entered into between the board and any person  pursuant
     7  to  this  section  may  be  awarded either pursuant to public bidding in
     8  compliance with section 103 of the general municipal law or, in order to
     9  foster major investment in  existing  school  buildings  or  new  school
    10  buildings  and to deliver quality products and services that are benefi-
    11  cial to the city school district and the public it serves, on the  basis
    12  of  factors other than cost alone, including, but not limited to, adher-
    13  ence to facility design, quality and  durability  or  materials,  energy
    14  efficiency,  incorporating  systems and approaches which provide maximum
    15  facility value using the  best  current  development,  and  construction
    16  techniques available, and maximization of state building aid, and such a
    17  contract  may  be  entered  into pursuant to the following provisions of
    18  this section for  the  award  of  a  contract  based  on  evaluation  of
    19  proposals  submitted  in response to a request for proposals prepared by
    20  or for the  board;  provided,  however,  that  contracts  or  agreements
    21  involving  construction which are not awarded in compliance with section
    22  103 of the general municipal law must include a project labor  agreement
    23  in accordance with paragraph (f) of this subdivision. If a project labor
    24  agreement  is  not  performed on the project, all construction contracts
    25  must be awarded pursuant to sections 101 and 103 of the general  munici-
    26  pal law.
    27    (c)  Notwithstanding  any inconsistent provision of this act, all work
    28  performed on any project authorized by this act where all or any portion
    29  thereof involves a lease, grant, bond, covenant, debt agreement, permit,
    30  contract or agreement entered into by the YJSC board  for  construction,
    31  demolition,  reconstruction,  excavation,  rehabilitation, repair, reno-
    32  vation, alteration, or improvement shall be deemed public work and shall
    33  be subject to and performed in accordance with the provisions of article
    34  8 of the labor law to the same extent  and  in  the  same  manner  as  a
    35  contract of the state, and compliance with all the provisions of article
    36  8  of the labor law shall be required of any lessee, sublessee, contrac-
    37  tor or  subcontractor  on  the  project  including  the  enforcement  of
    38  prevailing  wage  requirements by the fiscal officer as defined in para-
    39  graph e of subdivision 5 of section 220 of the labor  law  to  the  same
    40  extent as a contract of the state.
    41    (d)  Every contract entered into by the YJSC board for a project shall
    42  contain a provision that the design of such project shall be subject  to
    43  the  review  and approval of the Yonkers board of education and that the
    44  design and construction standards of such project shall  be  subject  to
    45  the  review  and  approval  of the commissioner. In addition, every such
    46  contract shall contain a provision that the contractor shall  furnish  a
    47  labor  and  material bond guaranteeing prompt payment of moneys that are
    48  due to all persons  furnishing  labor  and  materials  pursuant  to  the
    49  requirements  of any contracts for a project undertaken pursuant to this
    50  section and a performance bond  for  the  faithful  performance  of  the
    51  project,  which  shall conform to the provisions of section 103-f of the
    52  general municipal law, and that a copy of such performance  and  payment
    53  bonds  shall  be  kept  by  the  YJSC  board and shall be open to public
    54  inspection.
    55    (e) (1) The YJSC board may require a contractor  awarded  a  contract,
    56  subcontract,  lease,  grant,  bond,  covenant  or  other agreement for a

        A. 9932--A                         11
 
     1  project to enter into a project labor agreement during and for the  work
     2  involved  with such project when such requirement is part of the request
     3  for proposals for the project and when it has been determined  that  the
     4  record  supporting  the  decision to enter into such an agreement estab-
     5  lishes that it is justified by the interests underlying the  competitive
     6  bidding  laws,  and  (2)  any contract, subcontract, lease, grant, bond,
     7  covenant or other agreement for projects undertaken pursuant to this act
     8  shall not be subject to sections 101 or 103 of the general municipal law
     9  when the YJSC board has chosen to require  a  project  labor  agreement.
    10  This  exemption  shall only apply to the projects undertaken pursuant to
    11  this act and shall not apply to projects undertaken by any other  school
    12  district or municipality unless otherwise specifically authorized.
    13    (f)  All  contracts  entered into by the YJSC board in excess of three
    14  million  dollars  ($3,000,000)  with  respect  to   any   contract   for
    15  construction,  reconstruction,  demolition,  excavation, rehabilitation,
    16  repair, renovation, alteration, or improvement shall require  that  each
    17  contractor  and  subcontractor  shall participate in apprentice training
    18  programs registered by the department of labor. Participation in such an
    19  apprenticeship program means the contractor  or  subcontractor:  (1)  is
    20  signatory to a collective bargaining agreement with a labor organization
    21  which  sponsors an apprenticeship program registered with the department
    22  of labor; (2) individually sponsors an apprenticeship program registered
    23  by the department of labor; or (3) is signatory to or otherwise bound by
    24  a project labor agreement covering the project which  provides  for  the
    25  referral  of apprentices. In all cases, such apprenticeship program must
    26  be specific to the type and scope of work which is being performed.
    27    (g) For the purposes of article 15-A of the executive law, YJSC  board
    28  shall  be  deemed a state agency as that term is defined in such article
    29  and such contracts shall be deemed state contracts within the meaning of
    30  that term as set forth in such article.
    31    (h) In the event the YJSC board shall cease to exist  for  any  reason
    32  whatsoever  during  the  life  of  such contracts as it has entered into
    33  pursuant to this section, such contracts shall remain in full force  and
    34  effect  and  the  city and city school district shall stand in the place
    35  and stead of the board with respect to all rights and obligations  under
    36  such  contracts  and  with respect to all powers granted to the board by
    37  this section; provided, however, that such powers are exercised  by  the
    38  city  school  district pursuant to its jurisdiction and the general laws
    39  applicable thereto, except as modified by this section.
    40    § 9. Program manager. (a) The YJSC board shall utilize the services of
    41  a program manager selected by the city  and  the  city  school  district
    42  through  the  request for proposal process to oversee the implementation
    43  of the joint schools  construction  and  modernization  plan.  Prior  to
    44  selection,  the program manager must demonstrate satisfactory experience
    45  in planning,  designing,  and  constructing  new  and/or  reconstructing
    46  existing  school  buildings,  public  facilities, commercial facilities,
    47  and/or infrastructure facilities, and in the negotiation and  management
    48  of  labor  contracts  and  agreements,  training  programs,  educational
    49  programs,  and  physical  technological  requirements  for   educational
    50  programs.
    51    (b)  All  contracts entered into by the YJSC board for projects under-
    52  taken pursuant to this section shall be managed by such program manager.
    53  The program manager shall also review project schedules, review  payment
    54  schedules,  prepare  cost estimates and review for coordination purposes
    55  the safety  programs  of  contractors  and  all  training  programs,  if
    56  required.  The  program manager shall implement procedures for verifica-

        A. 9932--A                         12
 
     1  tion by it that all work for which payment has been requested  has  been
     2  satisfactorily completed.
     3    (c)  The  program manager, and its affiliates or subsidiaries, if any,
     4  shall be prohibited from awarding contracts or being  awarded  contracts
     5  for  or  performing  any  work  other  than contemplated for the program
     6  manager.
     7    § 10. Requests for proposals for the award of projects. (a)  The  YJSC
     8  board  shall  consult with the commissioner in creating guidelines to be
     9  used  in  the  preparation  of  individual  requests  for  proposals  in
    10  connection  with  projects  prior to the development of any requests for
    11  proposals by the program manager. Prior to the issuance by  the  program
    12  manager  of  a  request  for proposals, the YJSC board shall cause to be
    13  published a notice of such issuance in the  official  newspaper  of  the
    14  city  school  district, if any, and in at least one newspaper of general
    15  circulation in the city. Concurrent with the publication of such notice,
    16  a draft request for proposals shall be filed with the YJSC board.
    17    (b) Each proposal shall require the inclusion of the following  infor-
    18  mation relating to each project:
    19    (1)  the background and experience of the person including any history
    20  of labor violations, and when applicable, the identity and experience of
    21  the person's general contractor, heating and plumbing contractor,  elec-
    22  trical contractor, and design firm;
    23    (2)  the ability of the person to secure adequate financing, if appli-
    24  cable, including the identification of the firm, if any,  that  will  be
    25  used for financing the project; and
    26    (3)  identification and specification of all direct and indirect costs
    27  which would become a charge to the YJSC board, in whatever form,  relat-
    28  ing  to  the  project and such other information as may be determined to
    29  have a material bearing on the ability to evaluate any proposal.
    30    (c) Proposals received in response to a request for proposals shall be
    31  evaluated taking into consideration (1) maximization of  state  building
    32  aid,  (2)  net  cost,  (3)  the financial and organizational capacity of
    33  contractors and subcontractors in relation to the magnitude of work they
    34  may perform, the record of performance of contractors and subcontractors
    35  on previous work,  the  record  of  contractors  and  subcontractors  in
    36  complying  with existing labor laws, rules, or regulations and maintain-
    37  ing harmonious labor relations, and the  commitment  of  contractors  to
    38  work  with  minority  and  women  owned business enterprises pursuant to
    39  article 15-A of the executive law and disadvantaged business enterprises
    40  through subcontractor relationships, and (4) such additional factors set
    41  forth in the request for proposals, including, but not limited to, qual-
    42  ity and durability of  materials,  energy  efficiency,  facility  design
    43  incorporating  systems  and  approaches  which  provide maximum facility
    44  value at the lowest possible cost for the reconstruction, rehabilitation
    45  and equipping, or new construction and equipping, of such projects.
    46    (d)(1) A contract award may be made to any responsible person selected
    47  taking into consideration:
    48    (i) maximization of state building aid;
    49    (ii) net cost;
    50    (iii) the financial and organizational  capacity  of  contractors  and
    51  subcontractors  in  relation  to the magnitude of work they may perform,
    52  the record of performance of contractors and subcontractors on  previous
    53  work,  the  record  of  contractors and subcontractors in complying with
    54  existing labor standards and maintaining harmonious labor relations, and
    55  the commitment of contractors to work  with  minority  and  women  owned
    56  business  enterprises  pursuant to article 15-A of the executive law and

        A. 9932--A                         13
 
     1  disadvantaged business enterprises through subcontractor  relationships;
     2  and
     3    (iv)  such  additional factors set forth in the request for proposals,
     4  including, but not limited to,  quality  and  durability  of  materials,
     5  energy  efficiency, facility design incorporating systems and approaches
     6  which provide maximum facility value at the lowest possible cost for the
     7  reconstruction, rehabilitation and equipping, or  new  construction  and
     8  equipping, of such projects.
     9    (2) Notwithstanding the provisions of this subdivision, if an award is
    10  made  to any person whose total proposal does not provide the lowest net
    11  cost, the city school district or the YJSC board shall  adopt  a  resol-
    12  ution  after  a  public  hearing  which includes particularized findings
    13  relevant to factors evaluated indicating that the  requirements  of  the
    14  city  school  district or the YJSC board, as applicable, are met by such
    15  award and that such action is in the public interest.  Any such contract
    16  may be a single guaranteed maximum price  general  contract,  utilize  a
    17  full  construction  management  contract  approach, or utilize a turnkey
    18  contract approach or any other method deemed advisable in the reasonable
    19  judgment of the YJSC board.
    20    § 11. Compliance officer. All contracts entered into by the YJSC board
    21  for projects undertaken by this section shall be monitored by a  compli-
    22  ance officer. The compliance officer shall have the authority to:
    23    (a)  develop,  implement,  advertise, promote and monitor policies and
    24  procedures to utilize and  provide  sufficient  MWBE,  DBE  and  skilled
    25  minority employment resources participation opportunities to be followed
    26  by  prime  contractors  and  subcontractors  for such projects; and have
    27  access to all proposed bid specifications documentations, records, draw-
    28  ings, blueprints and any other documentation associated  with  such  bid
    29  specifications;
    30    (b)  support  the joint schools construction and modernization plan by
    31  developing and implementing an MWBE/DBE Utilization Master Plan for  the
    32  governance of all project contracts;
    33    (c) provide technical assistance to potential MWBE and DBE contractors
    34  and subcontractors interested in bidding on any such project;
    35    (d)  obtain and maintain records and documentation as are necessary to
    36  confirm compliance with any established MWBE, DBE  or  skilled  minority
    37  employment resources utilization goals for any such project;
    38    (e)  identify contractors in non-compliance with the established MWBE,
    39  DBE or skilled minority employment resources  utilization  goals  or  in
    40  willful  violation  of any federal, state and local laws rules and regu-
    41  lations;
    42    (f) monitor  and  report  the  upward/downward  price  adjustment  and
    43  payment  amounts  to  MWBE's and DBE's listed on contractors utilization
    44  plan for any such project; and
    45    (g) develop and work with YJSC board to enforce  agreed  financial  or
    46  monetary  sanctions  for  any  contractors  non-compliance with MWBE/DBE
    47  Utilization Master Plan.
    48    (h) the compliance officer shall report to the YJSC board on a monthly
    49  basis.
    50    § 12. Building aid.  Notwithstanding any other provision of law to the
    51  contrary, building aid that would otherwise be payable  for  the  school
    52  district  portion  of  expenditures for capital outlays and debt service
    53  for each project undertaken pursuant to the provisions of  this  act  in
    54  accordance  with  subdivision  6  of  section 3602 of the education law,
    55  shall be paid to the city.

        A. 9932--A                         14
 
     1    § 13. Operation and maintenance. (a) Notwithstanding any other  gener-
     2  al,  special, or local law or provision of this section to the contrary,
     3  any project undertaken pursuant to this section shall  be  operated  and
     4  maintained  by the board of education of the city school district in the
     5  same  manner as existing school buildings owned by the city are operated
     6  and maintained by such board.
     7    (b) Notwithstanding any other provision of any  general,  special,  or
     8  local  law  to  the  contrary,  any  project  undertaken pursuant to the
     9  provisions of this act shall be exempt from all taxes  (including  sales
    10  and  use  taxes), special assessments, and special ad valorem levies and
    11  from the payment of any and all charges and  rents  for  sewer  systems,
    12  both  while  such project is being constructed and during its use by the
    13  city school district for school purposes.
    14    § 14. Maintenance of effort exclusion.  Payment  of  debt  service  on
    15  bonds,  notes  or  other  obligations  issued  to  secure  financing for
    16  projects undertaken pursuant to this act shall not  be  considered  when
    17  determining  the "city amount" required pursuant to subparagraph (ii) of
    18  paragraph a of subdivision 5-b of section 2576  of  the  education  law;
    19  provided,  however,  that  this provision shall not otherwise affect the
    20  determination of said "city amount" with respect to funding unrelated to
    21  projects undertaken pursuant to this act.
    22    § 15. SED  oversight  of  projects.  Nothing  in  this  act  shall  be
    23  construed  to  exempt a project undertaken pursuant to this section from
    24  the review and approval procedures applied to such projects by SED  when
    25  undertaken by the city school district pursuant to the education law.
    26    §  16.  Financing of projects. (a) To finance project costs authorized
    27  and undertaken pursuant to this act, bonds, notes and other  obligations
    28  in an aggregate principal amount not to exceed five hundred twenty-three
    29  million  dollars  ($523,000,000),  plus such additional amount of bonds,
    30  notes and other obligations necessary to  provide  for  a  debt  service
    31  reserve  fund and to pay reasonable costs of issuance, are authorized to
    32  be issued on behalf of the YJSC board pursuant to  subdivisions  (d)  or
    33  (e)  of  this  section;  provided,  however, that bonds, notes and other
    34  obligations issued to refund or advance refund previously issued  bonds,
    35  notes  and  other  obligations  under this act may exceed such aggregate
    36  principal limitation; provided, further however, that any  accretion  of
    37  principal  of  bonds,  notes and other obligations issue pursuant to the
    38  authority contained in this act that would constitute interest under the
    39  Internal Revenue Code of 1986, as amended shall not count  against  such
    40  aggregate  principal limitation.   Any bonds, notes or other obligations
    41  issued by or on behalf of the YJSC board pursuant to this act,  and  the
    42  income  therefrom  shall,  to  the maximum extent practicable, be exempt
    43  from taxation.
    44    (b) Notwithstanding the provisions of any other general,  special,  or
    45  local  law to the contrary, any bonds, notes or other obligations issued
    46  to finance any project authorized and undertaken pursuant to  this  act,
    47  including ancillary financing costs described in subdivision (a) of this
    48  section,  may be issued without regard to any debt limitation applicable
    49  to the city or the city school district or any instrumentality thereof.
    50    (c) Notwithstanding any general, special, or local law or ordinance to
    51  the contrary, contracts entered into by  the  YJSC  board  for  projects
    52  undertaken pursuant to this act may be initially funded by the city from
    53  any  available monies or from the proceeds of city obligations issued in
    54  anticipation of permanent financing from any source provided  under  the
    55  act  and  the  reimbursement  to  the  city  of  any available monies so
    56  advanced or the payment of obligations of  the  city  issued  in  antic-

        A. 9932--A                         15
 
     1  ipation  of  permanent  financing  (including permanent financing issued
     2  through the city of  Yonkers  industrial  development  agency  for  such
     3  purpose) is hereby specifically authorized.
     4    (d)  Notwithstanding  any limitations contained in article 18-A of the
     5  general municipal law, including subdivisions (4) and  (12)  of  section
     6  854  of the general municipal law, a project undertaken pursuant to this
     7  section shall be a "project" within the definition and for the  purposes
     8  of  subdivision  (4)  of section 854 of the general municipal law, which
     9  may be financed, owned, or leased by  the  city  of  Yonkers  industrial
    10  development agency or any successor agency thereto and the city of Yonk-
    11  ers  industrial  development agency is expressly authorized to refinance
    12  obligations issued by the city in anticipation of  financing  authorized
    13  by  this  act  and/or reimburse the city for monies advanced by the city
    14  for projects undertaken pursuant to this act.  In  connection  with  the
    15  city  of Yonkers industrial development agency financing of the costs of
    16  any project undertaken pursuant to this  act,  the  city  and  the  city
    17  school  district  may  grant a leasehold or license interest in the land
    18  and or building constituting such project to the city of Yonkers  indus-
    19  trial  development  agency  and  may  enter  into  installment  purchase
    20  contracts to facilitate such financing.
    21    (e) Projects undertaken pursuant to this act may be financed through a
    22  special program agreement with the state of New York municipal bond bank
    23  agency pursuant to the  provisions  of  section  2435-a  of  the  public
    24  authorities  law.  It shall be the duty of the YJSC board to compare the
    25  financing available for such projects through the city of Yonkers indus-
    26  trial development agency with financing available through the  state  of
    27  New  York  municipal bond bank agency, and to employ the financing mech-
    28  anism that will result in the lowest cost to the taxpayers of  the  city
    29  and  the  state calculated on a net interest cost basis. It shall be the
    30  duty of the YJSC board and the city of  Yonkers  industrial  development
    31  agency  to  share  with the state of New York municipal bond bank agency
    32  any information in their possession that is required by the state of New
    33  York municipal bond bank agency to determine the cost of financing  such
    34  projects  and to compute the interest rate that would have been applica-
    35  ble to a bond issuance by the state of  New  York  municipal  bond  bank
    36  agency in the event that financing is obtained through the city of Yonk-
    37  ers  industrial development agency. Any failure to provide such informa-
    38  tion within thirty days of receipt of a request from the  state  of  New
    39  York  municipal  bond bank agency shall be deemed to be a failure of the
    40  board to submit the data needed to compute the  apportionment  of  state
    41  building  aid,  and  the  commissioner shall withhold such apportionment
    42  until such information is fully submitted.  Upon  request  of  the  YJSC
    43  board,  the director of the state of New York municipal bond bank agency
    44  shall submit such reports as the commissioner may require on the financ-
    45  ing of such projects and/or the  interest  rate  that  would  have  been
    46  applicable to such projects if they had been financed through such agen-
    47  cy.
    48    (f)  Notwithstanding  any  other provision of any general, special, or
    49  local law or provision of this act to the contrary, any  project  under-
    50  taken pursuant to this act shall be operated and maintained by the board
    51  of  education of the city school district in the same manner as existing
    52  school buildings owned by the city are operated and maintained  by  such
    53  board.
    54    §  17.  Security for bonds, notes and other obligations; remedies.  In
    55  the event that the city or city school district shall  fail  to  make  a
    56  payment  in  such  amount  and by such date as is provided to be made by

        A. 9932--A                         16
 
     1  such city or city school district under agreements entered into with the
     2  city of Yonkers industrial development agency or  any  successor  agency
     3  thereto,  such  entity  shall  so certify to the state comptroller. Such
     4  certificate shall be in such form as the state comptroller deems desira-
     5  ble,  but shall specify the amount by which such payment shall have been
     6  deficient.  The state comptroller, upon receipt of such certificate from
     7  such entity, shall withhold such amount of state and/or school aid paya-
     8  ble to such city or city school district to the extent of the amount  so
     9  stated in such certificate as not having been made, and shall immediate-
    10  ly pay over to each financial institution acting as trustee on behalf of
    11  bondholders  of the Yonkers industrial development agency or any succes-
    12  sor agency thereto, the amount so withheld by the state comptroller. Any
    13  amount so paid to bondholders from such state and/or  school  aid  shall
    14  not  obligate the state to make, nor entitle the city or the city school
    15  district to receive, any additional amounts of state and/or school  aid.
    16  Nothing  contained  in this section shall be deemed to prevent the state
    17  from modifying, reducing or eliminating any program or programs of state
    18  and/or school aid; nor shall the state be obligated by the terms  hereof
    19  to maintain state and/or school aid at any particular level or amount.
    20    §  18.  Progress  reports.  On  June 30, 2017 and annually thereafter,
    21  until completion of the projects in a total aggregate maximum amount  of
    22  $523,000,000,  plus  such  additional  amount  of bonds, notes and other
    23  obligations necessary to provide for a debt service reserve fund and  to
    24  pay  reasonable  costs of issuance, authorized pursuant to this act, the
    25  YJSC board shall issue a report to the governor,  the  comptroller,  the
    26  commissioner,  the temporary president of the senate, the speaker of the
    27  assembly, the city mayor, the city council and the city school  district
    28  on the progress and status of the projects undertaken by the YJSC board.
    29  Provided  further,  that if any such entities request information on the
    30  progress and status of the projects prior to such report,  it  shall  be
    31  provided  to  such entities by the YJSC board. In addition, on or before
    32  June 30, 2019, the YJSC board shall issue a report to  the  city  mayor,
    33  the  city  school  district,  the  governor, the commissioner, the comp-
    34  troller, the temporary president of the senate, the minority  leader  of
    35  the  senate,  the  speaker  of  the assembly, the minority leader of the
    36  assembly, the state board of regents, and the chairs and ranking minori-
    37  ty members of the New York  state  senate  and  assembly  committees  on
    38  education,  the finance committee of the New York state senate, the ways
    39  and means committee of the New York state assembly and the  division  of
    40  the  budget.  Such  report  shall  identify  the  fiscal and pedagogical
    41  results of the projects undertaken pursuant  to  this  act,  along  with
    42  recommendations  for  its  continuance  to  a  phase two, amendments, or
    43  discontinuance.
    44    § 19. Clause (a) of subparagraph 5 of paragraph e of subdivision 6  of
    45  section 3602 of the education law is amended by adding a new item (v) to
    46  read as follows:
    47    (v)  Notwithstanding  the provisions of item (i) of this clause, where
    48  such city or city school district has entered into an agreement with the
    49  state of New York municipal bond bank agency pursuant to subdivision one
    50  of section twenty four hundred thirty-five-a of the  public  authorities
    51  law  and  section  sixteen  of  the  Yonkers  city school district joint
    52  schools construction and modernization act, or  an  agreement  with  the
    53  city  of  Yonkers  industrial development agency for projects authorized
    54  pursuant to the Yonkers city school district joint schools  construction
    55  and  modernization act, to finance debt related to school rehabilitation
    56  or reconstruction of school buildings  or  construction  of  new  school

        A. 9932--A                         17
 
     1  buildings  that  is subject to subparagraph three of this paragraph, the
     2  lesser of: (A) the net interest cost, as defined  by  the  commissioner,
     3  applicable  to the obligations issued by the state of New York municipal
     4  bond  bank  agency  or the city of Yonkers industrial development agency
     5  for such purpose; or (B) such net  interest  cost,  as  defined  by  the
     6  commissioner,  that  would  have  been applicable to bonds issued by the
     7  state of New York municipal bond bank agency if  the  project  had  been
     8  authorized  to be financed and had been financed through such entity, as
     9  certified to the commissioner by the executive director of the state  of
    10  New  York  municipal bond bank agency, shall be the interest rate estab-
    11  lished for such city applicable to such debt.
    12    § 20. The opening paragraph of subdivision 6 of section  3602  of  the
    13  education law, as amended by chapter 416 of the laws of 2007, is amended
    14  to read as follows:
    15    Apportionment for capital outlays and debt service for school building
    16  purposes. Any apportionment to a school district pursuant to this subdi-
    17  vision  shall  be based upon base year approved expenditures for capital
    18  outlays incurred prior to July first, two thousand one from its  general
    19  fund,  capital fund or reserved funds and current year approved expendi-
    20  tures for debt service, including debt service for refunding bond issues
    21  eligible for an apportionment pursuant to paragraph g of  this  subdivi-
    22  sion and lease or other annual payments to the New York city educational
    23  construction  fund created by article ten of this chapter or the city of
    24  Yonkers educational construction fund created by article ten-B  of  this
    25  chapter which have been pledged to secure the payment of bonds, notes or
    26  other obligations issued by the fund to finance the construction, acqui-
    27  sition,  reconstruction,  rehabilitation  or  improvement  of the school
    28  portion of combined occupancy structures, or for lease or  other  annual
    29  payments  to the New York state urban development corporation created by
    30  chapter one hundred seventy-four of the laws of nineteen hundred  sixty-
    31  eight,  pursuant  to  agreement  between  such  school district and such
    32  corporation relating to the construction,  acquisition,  reconstruction,
    33  rehabilitation  or  improvement  of  any  school building, or for annual
    34  payments to the dormitory authority pursuant to any lease,  sublease  or
    35  other  agreement  relating  to  the financing, refinancing, acquisition,
    36  design,  construction,  reconstruction,   rehabilitation,   improvement,
    37  furnishing  and  equipping  of, or otherwise provide for school district
    38  capital facilities or school district capital equipment made  under  the
    39  provisions  of  section sixteen hundred eighty of the public authorities
    40  law, or for annual payments pursuant to any  lease,  sublease  or  other
    41  agreement  relating  to the financing, refinancing, acquisition, design,
    42  construction, reconstruction,  rehabilitation,  improvement,  furnishing
    43  and equipping of, or otherwise providing for educational facilities of a
    44  city  school district under the provisions of section sixteen of chapter
    45  six hundred five of the laws of two thousand, or for payments,  pursuant
    46  to  any  assignment  authorized  by section twenty-seven hundred ninety-
    47  nine-tt of the public authorities law, of debt service in furtherance of
    48  funding the five-year educational facilities capital plan of the city of
    49  New York school district or related debt service costs and  expenses  as
    50  set  forth  in  such section, for annual payments pursuant to any lease,
    51  sublease or other agreement  relating  to  the  financing,  refinancing,
    52  design,  reconstruction,  rehabilitation,  improvement,  furnishing  and
    53  equipping of, or otherwise providing for projects authorized pursuant to
    54  the city of Syracuse and the board  of  education  of  the  city  school
    55  district  of the city of Syracuse cooperative school reconstruction act,
    56  for annual payments pursuant to any lease, sublease or  other  agreement

        A. 9932--A                         18
 
     1  relating to the financing, refinancing, design, reconstruction, rehabil-
     2  itation,  improvement, furnishing and equipping of, or otherwise provid-
     3  ing for projects authorized pursuant to the city of  Rochester  and  the
     4  board  of education of the city school district of the city of Rochester
     5  school facilities modernization program act, for annual payments  pursu-
     6  ant to any lease, sublease or other agreement relating to the financing,
     7  refinancing,   design,   construction,  reconstruction,  rehabilitation,
     8  improvement, furnishing and equipping of,  or  otherwise  providing  for
     9  projects authorized pursuant to the Yonkers city school district facili-
    10  ties  modernization  program  act, or for lease, lease-purchase or other
    11  annual payments to another school district  or  person,  partnership  or
    12  corporation  pursuant  to  an  agreement  made  under  the provisions of
    13  section four hundred three-b, subdivision eight of  section  twenty-five
    14  hundred  three, or subdivision six of section twenty-five hundred fifty-
    15  four of this chapter, provided that the apportionment for such lease  or
    16  other  annual  payments  under  the  provisions  of section four hundred
    17  three-b, subdivision eight of  section  twenty-five  hundred  three,  or
    18  subdivision  six of section twenty-five hundred fifty-four of this chap-
    19  ter, other than payments under a lease-purchase agreement or  an  equiv-
    20  alent  agreement,  shall  be  based  upon  approved  expenditures in the
    21  current year. Approved expenditures for capital outlays  from  a  school
    22  district's  general  fund,  capital  fund  or  reserved  funds  that are
    23  incurred on or after July first, two thousand two, and are  not  aidable
    24  pursuant  to subdivision six-f of this section, shall be aidable as debt
    25  service under an assumed amortization established pursuant to paragraphs
    26  e and j of this subdivision. In  any  such  case  approved  expenditures
    27  shall be only for new construction, reconstruction, purchase of existing
    28  structures,  for  site  purchase  and  improvement, for new garages, for
    29  original  equipment,  furnishings,  machinery,  or  apparatus,  and  for
    30  professional  fees  and  other  costs incidental to such construction or
    31  reconstruction, or purchase of existing structures. In  the  case  of  a
    32  lease  or  lease-purchase  agreement  entered  pursuant  to section four
    33  hundred three-b, subdivision eight of section twenty-five hundred  three
    34  or  subdivision  six  of  section twenty-five hundred fifty-four of this
    35  chapter, approved expenditures for the lease or  other  annual  payments
    36  shall  not include the costs of heat, electricity, water or other utili-
    37  ties or the costs of operation or maintenance of the leased facility. An
    38  apportionment shall  be  available  pursuant  to  this  subdivision  for
    39  construction,  reconstruction, rehabilitation or improvement in a build-
    40  ing, or portion thereof, being leased by a school district only  if  the
    41  lease  is for a term of at least ten years subsequent to the date of the
    42  general construction contract  for  such  construction,  reconstruction,
    43  rehabilitation or improvement. Each school district shall prepare a five
    44  year  capital  facilities plan, pursuant to regulations developed by the
    45  commissioner for such purpose, provided that  in  the  case  of  a  city
    46  school district in a city having a population of one million inhabitants
    47  or  more,  such  facilities  plan  shall  comply  with the provisions of
    48  section twenty-five hundred ninety-p of this chapter and  this  subdivi-
    49  sion.  Such plan shall include, but not be limited to, a building inven-
    50  tory, and estimated expense of facility  needs,  for  new  construction,
    51  additions,  alterations,  reconstruction, major repairs, energy consump-
    52  tion and maintenance by school building, as appropriate. Such five  year
    53  plan  shall  include a priority ranking of projects and shall be amended
    54  if necessary to reflect subsequent  on-site  evaluations  of  facilities
    55  conducted by state supported contractors.

        A. 9932--A                         19
 
     1    § 21. Subdivision 12 of section 2432 of the public authorities law, as
     2  amended  by  section 21 of part A4 of chapter 58 of the laws of 2006, is
     3  amended to read as follows:
     4    (12)  "Special  Program Municipality". Any city having a population of
     5  less than one million but more than three hundred  fifty  thousand;  and
     6  any city having a population of less than two hundred fifty thousand but
     7  more  than  two  hundred  thousand,  determined according to the federal
     8  decennial census of  nineteen  hundred  eighty.  Such  term  shall  also
     9  include the city of Syracuse solely for the purpose of the city of Syra-
    10  cuse  and the board of education of the city school district of the city
    11  of Syracuse cooperative school reconstruction act and the city of  Yonk-
    12  ers  solely  for  the  purpose of the Yonkers city school district joint
    13  schools construction and modernization act.
    14    § 22. Subdivision 1 of section 2435-a of the public  authorities  law,
    15  as  amended  by section 22 of part A4 of chapter 58 of the laws of 2006,
    16  is amended to read as follows:
    17    (1) In order to fulfill the purposes of this title and  to  provide  a
    18  means by which the special program municipalities may (a) receive moneys
    19  to  refund  certain  property  taxes determined to be in excess of state
    20  constitutional tax limits or to reimburse the  special  program  munici-
    21  palities  for the prior refunding of such taxes or (b) receive moneys to
    22  be applied to the cost of settling litigation involving the city  school
    23  districts  of special program municipalities and the teachers' unions in
    24  such special program municipalities,  or  (c)  receive  moneys  for  the
    25  financing of public improvements to be applied to the cost of the recon-
    26  struction,  rehabilitation  or  renovation  of  an  educational facility
    27  pursuant to the provisions of subdivision  (b)  of  section  sixteen  of
    28  chapter  six  hundred  five  of the laws of two thousand, or (d) receive
    29  moneys for the financing of public improvements to  be  applied  to  the
    30  cost  of  a  project  for  design, reconstruction or rehabilitation of a
    31  school building pursuant to the provisions of section  fourteen  of  the
    32  city  of Syracuse and the board of education of the city school district
    33  of the city of Syracuse cooperative school reconstruction  act,  or  (e)
    34  receive moneys for the financing of public improvements to be applied to
    35  the  cost of a project for design, reconstruction or rehabilitation of a
    36  school building, or the construction of a new school building,  pursuant
    37  to  the provisions of section twelve of the Yonkers city school district
    38  joint schools construction and modernization  act,  and  notwithstanding
    39  any  general or special law to the contrary, the agency and each special
    40  program municipality are hereby authorized to enter  into  one  or  more
    41  special  program  agreements,  which  special  program agreements shall,
    42  consistent with the  provisions  of  this  title,  contain  such  terms,
    43  provisions  and  conditions  as, in the judgment of the agency, shall be
    44  necessary or desirable. Each special program agreement shall specify the
    45  amount to be made available to the respective  special  program  munici-
    46  pality  from the proceeds of an issue of special program bonds and shall
    47  require such special program municipality, subject to  appropriation  by
    48  the  appropriate  legislative body of such special program municipality,
    49  to make payments to the agency in the amounts and at  the  times  deter-
    50  mined by the agency to be necessary to provide for payment of such issue
    51  of  special  program bonds and such other fees, charges, costs and other
    52  amounts as the agency shall in its judgment determine to be necessary or
    53  desirable.
    54    § 23. Subdivision 4 of section 2436 of the public authorities law,  as
    55  amended  by  section 23 of part A4 of chapter 58 of the laws of 2006, is
    56  amended to read as follows:

        A. 9932--A                         20
 
     1    4. In the event that a special program municipality shall fail to make
     2  a payment in such amount (as calculated in accordance with  the  special
     3  program  agreement  to  which such municipality shall be a party) and by
     4  such date as is provided to be made by such municipality in its  special
     5  program  agreement,  the  chairman of the agency shall so certify to the
     6  comptroller. Such certificate shall be in such form as the agency  deems
     7  desirable, but shall specify the amount by which such payment shall have
     8  been  deficient.  The comptroller, upon receipt of such certificate from
     9  the agency, shall withhold from such special  program  municipality  any
    10  state  aid  payable  to such municipality to the extent of the amount so
    11  stated in such certificate as not having been made, and shall immediate-
    12  ly pay over to the agency the amount  so  withheld;  provided,  however,
    13  that  in  the  case  of a special program agreement entered into for the
    14  purpose described in paragraph (b) or (c) or (d) or (e)  of  subdivision
    15  one  of  section  twenty-four  hundred  thirty-five-a of this title, the
    16  comptroller shall be authorized to withhold  from  the  special  program
    17  municipality  such  school aid as is payable to the city school district
    18  of the special program municipality, to the  extent  of  the  amount  so
    19  stated in such certificate as not having been made, and shall immediate-
    20  ly  pay over to the agency the amount so withheld. Any amount so paid to
    21  the agency from such state and/or school  aid  shall  not  obligate  the
    22  state  to make, nor entitle the special program municipality to receive,
    23  any additional amounts of state and/or  school  aid.  Nothing  contained
    24  therein shall be deemed to prevent the state from modifying, reducing or
    25  eliminating  any  program  or  programs  of state and/or school aid; nor
    26  shall the state be obligated by  the  terms  hereof  to  maintain  state
    27  and/or school aid at any particular level or amount.
    28    §  24. Subdivision 1 of section 2438 of the public authorities law, as
    29  amended by section 7 of part N of chapter 56 of the  laws  of  2010,  is
    30  amended to read as follows:
    31    (1) The agency shall not issue bonds and notes in an aggregate princi-
    32  pal  amount  at  any one time outstanding exceeding one billion dollars,
    33  excluding tax lien collateralized  securities,  special  school  purpose
    34  bonds,  special  school  deficit  program  bonds,  special program bonds
    35  issued to finance the reconstruction, rehabilitation or renovation of an
    36  educational facility pursuant to the provisions of  subdivision  (b)  of
    37  section sixteen of chapter six hundred five of the laws of two thousand,
    38  special  program  bonds  issued  to  finance  the  cost of a project for
    39  design, reconstruction or rehabilitation of a school  building  pursuant
    40  to  the  provisions  of section fourteen of the city of Syracuse and the
    41  board of education of the city school district of the city  of  Syracuse
    42  cooperative  school  reconstruction act, special program bonds issued to
    43  finance the cost of a project for design,  construction,  reconstruction
    44  or  rehabilitation  of  a  school building pursuant to the provisions of
    45  section thirteen of the  Yonkers  city  school  district  joint  schools
    46  construction  and  modernization  act, recovery act bonds, public safety
    47  communications bonds and bonds and notes issued  to  refund  outstanding
    48  bonds and notes.
    49    §  25. Effect of inconsistent provisions. Insofar as the provisions of
    50  this act are inconsistent with the provisions of any other law, general,
    51  special, or local, or of the city charter or an ordinance or  resolution
    52  of  the  city  council  or  the  board  of  education of the city school
    53  district, or any rule or regulation, the provisions of this act shall be
    54  controlling, provided that nothing contained in this act shall  be  held
    55  to  supplement  or  otherwise expand the powers or duties of the city or
    56  the city school district except as specified in this act.

        A. 9932--A                         21

     1    § 26. Severability; construction. The provisions of this act shall  be
     2  severable,  and  if  the application of any clause, sentence, paragraph,
     3  subdivision, section or part of this act to any person  or  circumstance
     4  shall  be adjudged by any court of competent jurisdiction to be invalid,
     5  such  judgment  shall  not  necessarily affect, impair or invalidate the
     6  application  of  any  such  clause,  sentence,  paragraph,  subdivision,
     7  section,  part  of this act or remainder thereof, as the case may be, to
     8  any other person or circumstance, but shall be confined in its operation
     9  to the clause, sentence, paragraph, subdivision, section or part thereof
    10  directly involved in the controversy in which such judgment  shall  have
    11  been rendered.
    12    § 27. This act shall take effect immediately.
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