Amd S3602, Ed L; amd SS2435-a, 2436 & 2438, Pub Auth L
Establishes the Rochester city school district facilities modernization program act; provides a mechanism by which the city school district of the city of Rochester is able to finance much needed repair and refurbishment of the city's school buildings and campuses.
STATE OF NEW YORK
________________________________________________________________________
743
2007-2008 Regular Sessions
IN ASSEMBLY(Prefiled)
January 3, 2007
___________
Introduced by M. of A. GANTT -- read once and referred to the Committee
on Education
AN ACT establishing the Rochester city school district facilities
modernization program act; and to amend the education law and the
public authorities law, in relation to implementing the Rochester city
school district facilities modernization program 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 Rochester city school district facilities modernization program
3 act".
4 § 2. Legislative findings. The legislature finds that the average age
5 of a school building in Rochester is 61 years old and many are in fact
6 in need of extensive refurbishment. Even by maximizing the debt borrow-
7 ing under existing statutory limits the Rochester city school district
8 is unable to modernize and upgrade their facilities at a reasonable rate
9 as needs are far greater than the availability of capital. The city
10 school district's facilities are landlocked in highly dense urban neigh-
11 borhoods lacking proper school bus loops, athletic facilities and other
12 essential school amenities required for the safe and proper adminis-
13 tration of an educational institution, and while the Rochester city
14 school district has invested more capital than other comparable
15 districts - deterioration of building stock outpaces ability to repair
16 it.
17 The legislature further finds that such deterioration of the schools
18 and inability to expand school sites to provide even a modicum of
19 customary facilities and amenities to students is a serious impediment
20 to learning and teaching. If the quality of education in the city of
21 Rochester is to be improved, existing schools must be rehabilitated and
22 reconstructed and new city schools must be also built.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04102-01-7
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1 The legislature further finds that the city school district of the
2 city of Rochester acting by and through the board of education of the
3 city school district of the city of Rochester and defined as such in
4 section three of this act as "city school district", which is responsi-
5 ble for the physical condition of school facilities, has been unable to
6 expeditiously address this problem, not only because the state budget
7 for capital projects was seriously under-funded for more than two
8 decades, but primarily because of the statutory limitations on the
9 construction process and the incurrence of indebtedness to finance the
10 construction, rehabilitation and reconstruction of school facilities.
11 The legislature further finds that extraordinary measures must be
12 taken to reverse this deterioration of educational facilities and to
13 assist the city of Rochester and the city school district in carrying
14 out their respective obligations to the students by improving the phys-
15 ical environment in which the students are expected to learn.
16 The legislature further finds that new and innovative ways of building
17 and financing schools have been used in other jurisdictions, including
18 lease-back arrangements, partnerships, and joint ventures between
19 private corporations or other businesses and public and not-for-profit
20 institutions, including universities and colleges, both public and
21 private, for the purpose of providing innovative learning environments
22 that combine theory and practice for the benefit of the students in
23 their preparation for their future living and work experiences.
24 The legislature further finds that in order to ensure the success of
25 the rehabilitation and reconstruction of existing school facilities and
26 the construction of new facilities for the city of Rochester, the maxi-
27 mum cooperation of state agencies and departments will be required with
28 respect to state aid and reimbursement methodologies to effectuate and
29 support innovative financing techniques and structures.
30 The legislature further finds that as a result of the foregoing, the
31 state should enact legislation that will encourage this effort by grant-
32 ing certain new or additional authority to the city and the city school
33 district of the City of Rochester as set forth in such legislation,
34 which authority should assist both parties to better, more economically
35 and more innovatively manage the acquisition, design, construction,
36 financing, operation, and maintenance of new educational facilities.
37 The legislature further finds that proper educational facilities are
38 necessary to provide a trained work force for commerce and industry in
39 the city of Rochester and that a trained work force will actively
40 promote, attract, encourage, and assist in developing and retaining
41 economically sound commerce and industry in the city of Rochester.
42 To this end, the projects undertaken pursuant to this act will become
43 demonstration projects for new concepts in the field of school
44 construction to demonstrate their possible effectiveness in other school
45 districts with demonstrable needs for school construction financing,
46 building techniques, and enhancement of the educational environment in
47 such facilities.
48 Finally, the legislature further finds and declares that the building
49 of new facilities and improvement of existing facilities for schools
50 must begin immediately and must proceed without obstruction. There can
51 be no higher priority than creating a physical environment in the
52 schools that fosters, rather than impedes, the education of our chil-
53 dren.
54 § 3. Definitions. As used or referred to in this section:
55 (a) "Capital improvement plan" shall mean the city school district's
56 ongoing, annually updated five-year capital financing plan for the
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1 construction and reconstruction of facilities, the acquisition and
2 replacement of vehicles and equipment and the completion of other long-
3 term capital projects undertaken and financed by the issuance of general
4 obligation bonds by the city on behalf of the city school district
5 pursuant to existing state law applicable to all school districts rather
6 than the provisions of this section.
7 (b) "City" shall mean the city of Rochester.
8 (c) "City school district" shall mean the city school district of the
9 city of Rochester acting by and through the board of education of the
10 city school district of the city of Rochester.
11 (d) "Commissioner" shall mean the commissioner of education of the
12 state of New York.
13 (e) "City council" shall mean the city council of the city of Roches-
14 ter.
15 (f) "Comptroller" shall mean the comptroller of the state of New York.
16 (g) "Facilities modernization plan" shall mean the comprehensive,
17 strategic plan developed by the city school district for the
18 construction, renovation, rehabilitation and equipping of new and exist-
19 ing educational facilities located in the city of Rochester, which plan
20 shall be in addition to but separate from the city school district's
21 ongoing five year capital improvement plan required by subdivision 6 of
22 section 3602 of the education law and the regulations of the commission-
23 er, and such other matters set forth in section five of this act.
24 (h) "RSC board" shall mean the Rochester schools construction board, a
25 joint instrumentality of the city and the city school district, acting
26 for and on behalf of the city and the city school district and composed
27 of no less than seven voting members, three of whom shall be appointed
28 by the mayor of the city and three of whom shall be appointed by the
29 superintendent of the board of education of the city school district,
30 one of whom shall be independent from both the district and the city of
31 Rochester but whom shall have been agreed upon by the mayor and the
32 superintendent and one non-voting member whom shall be the independent
33 compliance officer. Additional members, if any, shall be selected by
34 mutual agreement of the duly appointed members of the RSC board.
35 (i) "Person" shall mean a municipality or other governmental body, a
36 public corporation or an authority, a private corporation, a limited
37 liability company or partnership, or an individual.
38 (j) "Project" shall mean (i) work at an existing school building site
39 that involves the design, reconstruction, or rehabilitation of all or a
40 portion of an existing school building for its continued use as a school
41 of the city school district, which may include an addition to existing
42 school buildings for such continued use and which also may include (1)
43 the construction or reconstruction of athletic fields, playgrounds, and
44 other recreational facilities for such existing school buildings, and/or
45 (2) the acquisition and installation of all equipment necessary and
46 attendant to and for the use of such existing school buildings and/or
47 (ii) construction of new school buildings which also may include (1) the
48 construction or reconstruction of athletic fields, playgrounds, and
49 other recreational facilities for such new school buildings and (2) the
50 acquisition and installation of all equipment necessary and attendant to
51 and for the use of such new school buildings.
52 (k) "Project labor agreement" shall mean a pre-hire collective
53 bargaining agreement between a contractor and a labor organization
54 establishing the labor organization as the collective bargaining repre-
55 sentative for all persons who will perform work on the project, and
56 which provides that only contractors and subcontractors who sign a pre-
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1 negotiated agreement with the labor organization can perform project
2 work.
3 (l) "Program manager" shall mean an independent program management
4 firm hired by the city school district or the RSC board to assist it in:
5 (i) developing and implementing procedures for the projects undertaken
6 and contracted for by the city school district or the RSC board; (ii)
7 reviewing plans and specifications for projects; (iii) developing and
8 implementing policies and procedures to utilize employment resources to
9 provide sufficient skilled employees for such projects, including devel-
10 oping and implementing training programs, if required; and (iv) managing
11 such projects.
12 (m) "Independent compliance officer" shall mean an independent compli-
13 ance firm with an in-depth knowledge base and breadth of experience
14 conducting minority and women-owned business enterprise (MWBE) and
15 disadvantaged business enterprise (DBE) utilization compliance monitor-
16 ing for school districts within New York state. Such firm shall support
17 the facilities modernization program by developing and implementing an
18 MWBE/DBE utilization master plan for the governance of all project
19 contracts to ensure compliance with all federal, state, and local laws,
20 rules, and regulations as applicable.
21 § 4. The aggregate amount of project costs authorized and undertaken
22 pursuant to this section and in accordance with other provisions of law
23 governing school capital construction shall not exceed two hundred
24 fifty-five million dollars, unless otherwise authorized by law.
25 § 5. (a) The RSC board shall develop and maintain the facilities
26 modernization plan for so long as the projects in a total aggregate
27 maximum amount of two hundred fifty-five million dollars authorized
28 pursuant to this act, are yet to be undertaken. Before formal selection
29 of the projects occurs, the facilities modernization plan shall recom-
30 mend and outline the projects proposed to be potentially undertaken
31 pursuant to this section. Such plan shall include: (i) an estimate of
32 total costs to be financed, proposed financing plan, proposed method of
33 financing, terms and conditions of the financing, estimated financing
34 costs, and, since city general obligation bonds or notes are not
35 proposed as the method of financing, a comparison of financing costs
36 between such bonds or notes and the proposed method of financing. The
37 plan should also address what specific options would be used to ensure
38 that sufficient resources exist to cover the local share of any such
39 project cost on an annual basis; (ii) information concerning the poten-
40 tial persons to be involved in the financing and such person's role and
41 responsibilities; (iii) estimates on the design, reconstruction and
42 rehabilitation costs by project, any administrative costs for potential
43 projects, and an outline of the timeframe expected for completion of
44 each potential project; (iv) a detailed description of the request for
45 proposals process and an outline of the criteria to be used for
46 selection of the program manager and all contractors; (v) any proposed
47 amendments to the city school district's five year capital facilities
48 plan submitted in accordance with subdivision 6 of section 3602 of the
49 education law, the regulations of the commissioner and the provisions of
50 this section; and (vi) a diversity plan, in compliance with paragraph
51 (d) of section nine of this act, to develop diversity goals, including
52 appropriate community input and public discussion, and develop strate-
53 gies that would create and coordinate any efforts to ensure a more
54 diverse workforce for the projects. The diversity plan should address
55 accountability for attainment of the diversity goals, what forms of
56 monitoring would be used, and how such information would be publicly
A. 743 5
1 communicated. Prior to the development of the projects under the facili-
2 ties modernization plan, the city school district or the RSC board shall
3 hold one or more public hearings in order to ensure sufficient public
4 input and allow for significant public discussion on school building
5 needs. Except in the case of the new construction of an entirely new
6 school facility, one or more projects may be the subject of any public
7 hearing.
8 (b) Notwithstanding the provisions of any other general, special, or
9 local law to the contrary, for purposes of undertaking projects in a
10 total aggregate maximum amount of two hundred fifty-five million dollars
11 authorized pursuant to this act, the local share for each project,
12 whether constituting a reconstruction, rehabilitation or new
13 construction project, shall be a single blended rate of five percent.
14 Furthermore, for purposes of undertaking projects pursuant to this
15 section, the RSC board is hereby authorized to plan, and for state
16 building aid calculation purposes, the state education department is
17 hereby authorized to permit the RSC board to undertake projects that
18 utilize a maximum cost allowance approach determined on a city school
19 district wide basis rather than on an individual building basis.
20 § 6. To be eligible for selection as a project to be undertaken pursu-
21 ant to this section, such project shall be included by the city school
22 district in its facilities modernization plan as a special section of
23 the district's five-year capital facilities plan that is required pursu-
24 ant to subdivision 6 of section 3602 of the education law and the regu-
25 lations of the commissioner. The facilities modernization plan and any
26 portions of such plan relating to such projects, including any amend-
27 ments thereto, shall have the contents required in the regulations of
28 the commissioner and shall be submitted to the commissioner for
29 approval. Notwithstanding anything to the contrary in this section, the
30 city school district may elect to finance a project under its ongoing
31 capital improvement plan pursuant to the powers and authority granted to
32 all school districts in the state or as part of the facilities modern-
33 ization plans pursuant to the special powers and authority granted to
34 the city school district and the RSC board by this Rochester city school
35 district facilities modernization program act. Commencing on the effec-
36 tive date of this section, the city school district shall create and
37 maintain a written schedule listing each project undertaken, certified
38 to annually by the chief financial officer of the city school district,
39 which schedule shall identify each project and its cost and formally
40 designate such project as being undertaken pursuant to either the facil-
41 ities modernization plan or the capital improvement plan.
42 § 7. Upon approval by the commissioner of the RSC board's comprehen-
43 sive facilities modernization plan including such projects pursuant to
44 section six of this act, the RSC board may select projects to be under-
45 taken pursuant to this section, as provided for in such approved facili-
46 ty modernization plan. After the RSC board has selected a new project
47 and plans and specifications for such project have been prepared and
48 approved by the RSC board, which are consistent with the approved
49 comprehensive plan, the RSC board shall deliver such plans and specifi-
50 cations to the commissioner for his or her approval. After approval by
51 the commissioner, the plans and specifications shall be returned to the
52 RSC board. All such specifications shall detail the number of students
53 the completed project is intended to serve, the site description, the
54 types of subjects to be taught, the types of activities for school,
55 recreational, social, safety, or other purposes intended to be incorpo-
A. 743 6
1 rated in the school building or on its site and such other information
2 as the RSC board and the commissioner shall deem necessary or advisable.
3 § 8. (a) The RSC board, upon receipt of such approved plans and spec-
4 ifications for a project may enter into contracts for such project.
5 (b) Notwithstanding the provisions of any other general, special, or
6 local law to the contrary, relating to the length, duration, and terms
7 of contracts that the city or the city school district may enter into,
8 the RSC board is hereby authorized and empowered to enter into
9 contracts, leases, rental agreements or other arrangements relating to
10 projects undertaken pursuant to this section with any person, upon such
11 terms and conditions and for such consideration and for such terms and
12 duration, not to exceed thirty years, as may be agreed upon by the RSC
13 board and such person, whereby such person is granted the right to
14 design (pursuant to the approved plans and specifications), reconstruct,
15 rehabilitate, construct, equip, finance or manage one or more projects
16 in accordance with the design and the approved plans and specifications
17 for such projects, as set forth in section five of this act. All such
18 contracts shall comply with the provisions of section ten of this act.
19 (c) In the event the RSC board shall cease to exist for any reason
20 whatsoever during the life of such contracts as it has entered into
21 pursuant to this section, such contracts shall remain in full force and
22 effect and the city school district and the city of Rochester shall
23 stand in the place and stead of the RSC board with respect to all rights
24 and obligations under such contracts and with respect to all powers
25 granted to the RSC board by this section; provided, however, that such
26 powers are exercised by the city school district pursuant to its juris-
27 diction and the general laws applicable thereto, except as modified by
28 this section.
29 § 9. (a) Notwithstanding the provisions of any general, special, or
30 local law to the contrary, a contract entered into between the RSC board
31 and any person pursuant to this section may be awarded either pursuant
32 to public bidding in compliance with section 103 of the general munici-
33 pal law or, in order to foster major investment in existing school
34 buildings or new school buildings and to deliver quality products and
35 services that are beneficial to the city school district and the public
36 it serves, on the basis of factors other than cost alone, including, but
37 not limited to, adherence to facility design, quality and durability or
38 materials, energy efficiency, incorporating systems and approaches which
39 provide maximum facility value using the best current development,
40 construction, leasing, and financing techniques available, and maximiza-
41 tion of state building aid, and such a contract may be entered into
42 pursuant to the following provisions of this section for the award of a
43 contract based on evaluation of proposals submitted in response to a
44 request for proposals prepared by or for the RSC board.
45 (b) The RSC board shall utilize the services of a program manager to
46 oversee the implementation of the facilities modernization plan, and,
47 prior to the development of any requests for proposals by such program
48 manager in connection with projects, the RSC board shall consult with
49 the commissioner in creating guidelines to be used in the preparation of
50 individual requests for proposals.
51 (c) Prior to the issuance by the program manager of a request for
52 proposals pursuant to this section, the RSC board shall cause to be
53 published a notice of such issuance in the official newspaper of the
54 city school district, if any, and in at least one newspaper of general
55 circulation in the city of Rochester. Concurrent with the publication of
56 such notice, a draft request for proposals shall be filed with the RSC
A. 743 7
1 board. After allowing a thirty day comment period and an additional ten
2 days to review such comments, the final request for proposals shall be
3 published and concurrent with such publication notice of such issuance
4 shall also be published in the manner specified in this paragraph.
5 (d) Each proposal shall require the inclusion of information relating
6 to each project: (i) the background and experience of the person includ-
7 ing any history of labor violations, and when applicable, the identity
8 and experience of the person's general contractor, heating and plumbing
9 contractor, electrical contractor, and design firm; (ii) the ability of
10 the person to secure adequate financing, if applicable, including the
11 identification of the firm, if any, that will be used for financing the
12 project; and (iii) identification and specification of all direct and
13 indirect costs which would become a charge to the RSC board, in whatever
14 form, relating to the project and such other information as may be
15 determined to have a material bearing on the ability to evaluate any
16 proposal.
17 (e) Proposals received in response to a request for proposals shall be
18 evaluated taking into consideration (i) maximization of state building
19 aid, (ii) net cost and such additional factors set forth in the request
20 for proposals, including, but not limited to, quality and durability of
21 materials, energy efficiency, facility design incorporating systems and
22 approaches which provide maximum facility value at the lowest possible
23 cost for the reconstruction, rehabilitation and equipping, or new
24 construction and equipping, of such projects. In addition, evaluation of
25 proposals received in response to a request for proposals for the posi-
26 tion of program manager shall also include consideration of the criteria
27 set forth in section eleven of this act.
28 (f) A contract award may be made to any responsible person selected
29 taking into consideration (i) maximization of state building aid, (ii)
30 net cost and such additional factors set forth in the request for
31 proposals, including, but not limited to, quality and durability of
32 materials, energy efficiency, facility design incorporating systems and
33 approaches which provide maximum facility value at the lowest possible
34 cost for the reconstruction, rehabilitation and equipping, or new
35 construction and equipping, of such projects; provided, however, that if
36 an award is made to any person whose total proposal does not provide the
37 lowest net cost, the RSC board shall adopt a resolution after a public
38 hearing which includes particularized findings relevant to factors eval-
39 uated indicating that the requirements of the RSC board, as applicable,
40 are met by such award and that such action is in the public interest.
41 § 10. Contracts. Notwithstanding the provisions of any general,
42 special, or local law or judicial decision to the contrary:
43 (a) Any contract awarded or entered into by the RSC board for the
44 construction, lease, or lease-purchase of an educational facility or for
45 any projects undertaken pursuant to this section shall not be subject to
46 section 101 of the general municipal law.
47 (b) Whenever the RSC board enters into a contract for a project under-
48 taken pursuant to this section, it shall be deemed to be a public works
49 project for the purposes of article 8 of the labor law, and all the
50 provisions of article 8 of the labor law shall be applicable to all the
51 work involved with such project.
52 (c) Every contract entered into by the RSC board for a project shall
53 contain a provision that the design of such project shall be subject to
54 the review and approval of the city school district and that the design
55 and construction standards of such project shall be subject to the
56 review and approval of the commissioner. In addition, every such
A. 743 8
1 contract shall contain a provision that the contractor shall furnish a
2 labor and material bond guaranteeing prompt payment of moneys that are
3 due to all persons furnishing labor and materials pursuant to the
4 requirements of any contracts for a project undertaken pursuant to this
5 section and a performance bond for the faithful performance of the
6 project, which shall conform to the provisions of section 103-f of the
7 general municipal law, and that a copy of such performance and payment
8 bonds shall be kept by the RSC board and shall be open to public
9 inspection.
10 (d) For the purposes of article 15-A of the executive law, any person
11 entering into a contract for a project authorized pursuant to this act
12 shall be deemed a state agency as that term is defined in such article
13 and such contracts shall be deemed state contracts within the meaning of
14 that term as set forth in such article.
15 (e) Nothing in this act shall preclude the RSC board from requiring a
16 contractor awarded a contract for the construction, reconstruction, or
17 rehabilitation of an education facility to enter into a project labor
18 agreement during and for the construction of such facility; provided
19 that such requirement is part of the RSC board's request for proposals
20 for the construction of such new educational facility. If after consid-
21 eration, the RSC board determines, acting within its discretion and
22 proprietary capacity that given the purpose of any project it may
23 require a project labor agreement.
24 § 11. (a) All contracts entered into by the RSC board for projects
25 undertaken pursuant to this section shall be managed by an independent
26 program manager. The selection of the program manager shall be pursuant
27 to the competitive process established in section nine of this act. The
28 program manager shall have experience in planning, designing, and
29 constructing new and/or reconstructing existing school buildings, public
30 facilities, commercial facilities, and/or infrastructure facilities, and
31 in the negotiation and management of labor contracts and agreements,
32 training programs, educational programs, and physical technological
33 requirements for educational programs. The program manager shall manage
34 all projects undertaken pursuant to this section, review project sched-
35 ules, review payment schedules, prepare cost estimates and assess the
36 safety programs of contractors and all training programs, if required.
37 The program manager shall implement procedures for verification by it
38 that all work for which payment has been requested has been satisfac-
39 torily completed.
40 (b) The program manager, and its affiliates or subsidiaries, if any,
41 shall be prohibited from awarding contracts or being awarded contracts
42 for or performing any work on projects undertaken pursuant to this
43 section.
44 § 12. Notwithstanding any general, special, or local law or ordinance
45 to the contrary, contracts entered into by the RSC board for projects
46 undertaken pursuant to this section: (a) may be funded by the issuance
47 of certificates of participation pursuant to this section; (b) may be
48 installment purchased contracts; and (c) shall be subject to the
49 provisions of section 109-b of the general municipal law, except for
50 paragraph (a) of subdivision 3 of such section, subdivision 5 of such
51 section, and paragraph (c) of subdivision 6 of such section, and except
52 to the extent section 109-b of the general municipal law is inconsistent
53 with the provisions of this section. All provisions with reference to
54 installment purchase contracts or certificates of participation
55 contained in section 109-b of the general municipal law, except any
56 prohibition against using such installment purchase contracts or certif-
A. 743 9
1 icates of participation for the purposes set forth in this section,
2 shall apply to installment purchase contracts or certificates of partic-
3 ipation entered into or issued pursuant to the authority of this
4 section.
5 § 13. (a) All contracts entered into by the RSC board for projects
6 undertaken by this section shall be monitored by an independent compli-
7 ance officer. The compliance officer shall, but is not limited to devel-
8 oping, implementing, advertising, promoting and monitoring policies and
9 procedures to utilize and provide sufficient MWBE, DBE and skilled
10 minority employment resources participation opportunities to be followed
11 by prime contractors and subcontractors for such projects; shall main-
12 tain and have access to all proposed bid specifications documentations,
13 drawings, blueprints and any other documentation associated with such
14 bid specifications; shall provide technical assistance to potential MWBE
15 and DBE contractors and subcontractors interested in bidding on any such
16 project; shall obtain and maintain records and documentation as are
17 necessary to confirm compliance with any established MWBE, DBE or
18 skilled minority employment resources utilization goals for any such
19 project; shall identify contractors in non-compliance with the estab-
20 lished MWBE, DBE or skilled minority employment resources utilization
21 goals or in willful violation of any federal, state and local laws,
22 rules and regulations; shall monitor and report the upward/downward
23 price adjustment and payment amounts to MWBE's and DBE's listed on
24 contractors utilization plan for any such project; shall develop and
25 work with the RSC board to enforce agreed financial or monetary sanc-
26 tions for any contractors non-compliance with MWBE/DBE utilization
27 master plan.
28 (b) The independent compliance officer along with the program manager
29 selected to manage any such project shall work together jointly to
30 ensure that all MWBE and DBE utilization goals associated with any
31 project undertaken pursuant to this section are met.
32 § 14. (a) Notwithstanding any other provision of any general, special,
33 or local law or provision of this act to the contrary, any project
34 undertaken pursuant to this section shall be operated and maintained by
35 the board of education of the city school district in the same manner as
36 existing school buildings owned by the city are operated and maintained
37 by such board.
38 (b) Notwithstanding any other provision of any general, special, or
39 local law to the contrary, any project undertaken pursuant to the
40 provisions of this section shall be exempt from all taxes (including
41 sales and use taxes), special assessments, and special ad valorem levies
42 and from the payment of any and all charges and rents for sewer systems,
43 both while such project is being constructed and during its use by the
44 city school district for school purposes.
45 § 15. Nothing in this section shall be construed to exempt a project
46 undertaken pursuant to this section from the review and approval proce-
47 dures applied to such projects by the state department of education when
48 undertaken by the city school district pursuant to the education law.
49 § 16. Notwithstanding any general, special, or local law to the
50 contrary, the RSC board, in order to create new and different learning
51 environments or to provide for public safety, health, or other social
52 services needs for those attending, working in, or affiliated with any
53 educational facility, may enter into joint venture agreements with any
54 person to jointly build, share, or utilize, but not operate or maintain,
55 educational facilities built, designed, constructed, or leased pursuant
56 to the terms of this act. In order to provide new and different learning
A. 743 10
1 experiences, such joint ventures may include but shall not be limited to
2 such entities as colleges, universities, libraries, hospitals, nonprofit
3 or governmental agencies providing security, social or legal services,
4 and for-profit entities that may provide learning experiences in
5 commerce, industry, law, medicine, dentistry, nursing or medical related
6 businesses, the arts (fine or performing), the sciences, banking, insur-
7 ance, catering, food processing, manufacturing, journalism, engineering,
8 architectural, draftsmen, surveying skills, or any trade or skill
9 utilized in the construction industry, bio-medical, computers, electron-
10 ics, hotel, restaurant, advertising, public relations, tourism,
11 languages, governmental service (foreign or domestic), secretarial
12 skills, court reporting, customs work, public safety, fashion design and
13 production, sports business, transportation, photography, optics, imag-
14 ing, radio or television production, or any other type of service,
15 industry, or business industry for the instruction of children and
16 adults of this state for academic, remedial, or vocational training or
17 education. The city school district is hereby authorized to receive
18 building aid for facility projects constructed or renovated for use by
19 city school district students at cooperating organizations and insti-
20 tutions within Monroe county which may be outside the city of Rochester,
21 provided such organization or institution is not a board of cooperative
22 educational services.
23 § 17. (a) Notwithstanding any limitations contained in article 18-A of
24 the general municipal law, including subdivisions (4), (12) and (13) of
25 section 854 and section 926 of the general municipal law, a project
26 undertaken pursuant to this section shall be a "project" within the
27 definition and for the purposes of subdivision (4) of section 854 of the
28 general municipal law, which may be financed, owned, or leased by the
29 county of Monroe industrial development agency or any successor agency
30 thereto, the dormitory authority of the state of New York or other
31 alternative funding conduit entity and the same may be financed by an
32 installment purchase agreement or lease agreement in accordance with
33 section eighteen of this act or otherwise. In connection with the county
34 of Monroe industrial development agency, the dormitory authority of the
35 state of New York or other alternative funding conduit entity financing
36 the costs of any project undertaken pursuant to this section, the city
37 and the city school district may grant a leasehold or license interest
38 in the project and school building site constituting such project to the
39 county of Monroe industrial development agency, the dormitory authority
40 of the state of New York or other alternative funding conduit entity.
41 All contracts involving any such projects shall be awarded by the RSC
42 board pursuant to the process outlined in section nine of this act and
43 shall comply with the provisions of section ten of this act. A project
44 undertaken pursuant to this act may be financed through a special
45 program agreement with the state of New York municipal bond bank agency
46 pursuant to the provisions of section 2435-a of the public authorities
47 law. It shall be the duty of the RSC board to compare the financing
48 available for such projects through the county of Monroe industrial
49 development agency, the dormitory authority of the state of New York or
50 other alternative funding conduit with financing available through the
51 state of New York municipal bond bank agency, and to employ the financ-
52 ing mechanism that will result in the lowest cost to the taxpayers of
53 the city and the state. It shall be the duty of the RSC board, the coun-
54 ty of Monroe industrial development agency, the dormitory authority of
55 the state of New York or any other alternative funding conduit to share
56 with the state of New York municipal bond bank agency any information in
A. 743 11
1 their possession that is required by the state of New York municipal
2 bond bank agency to determine the cost of financing such projects and to
3 compute the interest rate that would have been applicable to a bond
4 issuance by the state of New York municipal bond bank agency in the
5 event that financing is obtained through the county of Monroe industrial
6 development agency, the dormitory authority of the state of New York or
7 any alternative funding conduit. Any failure to provide such information
8 within thirty days of receipt of a request from the state of New York
9 municipal bond bank agency shall be deemed to be a failure of the RSC
10 board to submit the data needed to compute the apportionment of state
11 building aid, and the commissioner shall withhold such apportionment
12 until such information is fully submitted. Upon request of the RSC
13 board, the director of the state of New York municipal bond bank agency
14 shall submit such reports as the commissioner may require on the financ-
15 ing of such projects and/or the interest rate that would have been
16 applicable to such projects if they had been financed through such agen-
17 cy.
18 (b) In the event that the city school district shall fail to make a
19 payment in such amount and by such date as is provided to be made by the
20 city school district under agreements entered into with the county of
21 Monroe industrial development agency or any successor agency thereto,
22 the dormitory authority of the state of New York or any alternative
23 funding conduit agency pursuant to subdivision (a) of this section, such
24 agency shall so certify to the state comptroller. Such certificate shall
25 be in such form as the agency deems desirable, but shall specify the
26 amount by which such payment shall have been deficient. The state comp-
27 troller, upon receipt of such certificate from the agency, shall with-
28 hold such amount from the city school district any state and/or school
29 aid payable to such city school district to the extent of the amount so
30 stated in such certificate as not having been made, and shall immediate-
31 ly pay over to the agency the amount so withheld to the agency; any
32 amount so paid to the agency from such state and/or school aid shall not
33 obligate the state to make, nor entitle the city or the city school
34 district to receive, any additional amounts of state and/or school aid.
35 Nothing contained in this section shall be deemed to prevent the state
36 from modifying, reducing or eliminating any program or programs of state
37 and/or school aid; nor shall the state be obligated by the terms hereof
38 to maintain state and/or school aid at any particular level or amount.
39 In the event that the city school district shall fail to make a payment
40 in such amount and by such date as is provided to be made by the city
41 school district under agreements entered into with the state of New York
42 municipal bond bank agency pursuant to paragraph (a) of this section and
43 section 2435-a of the public authorities law, such agency shall so
44 certify to the state comptroller pursuant to subdivision 4 of section
45 2436 of the public authorities law and the state comptroller shall be
46 authorized to withhold state aid pursuant to such section 2436 and shall
47 immediately pay over to the agency the amount so withheld to the agency.
48 § 18. Notwithstanding any general, special, or local law to the
49 contrary, including the local finance law and the public authorities
50 law, in order to finance projects on the most cost effective basis, the
51 RSC board, the county of Monroe industrial development agency, the
52 dormitory authority of the state of New York, any alternative funding
53 conduit entity, and the state of New York municipal bond bank agency are
54 hereby authorized to utilize the full panoply of innovative financing
55 techniques and financing structures available, including taxable and
56 tax-exempt bonds, notes and other obligations, including certificates of
A. 743 12
1 participation and installment purchase arrangements, the use of interest
2 rate swap agreements and other derivative products, provided the RSC
3 board, the county of Monroe industrial development authority, the dormi-
4 tory authority of the state of New York, an alternative funding conduit
5 entity, or the state of New York municipal bond bank agency, as applica-
6 ble, shall have previously duly adopted a swaps and derivative products
7 policy, and credit and liquidity enhancement reserves. In addition, any
8 notes, bonds, or other obligations issued to finance projects in a total
9 aggregate maximum amount of two hundred fifty-five million dollars
10 authorized pursuant to this act, shall be exempt from the collection of
11 any bond issuance charge under subdivision 2 of section 2976 of the
12 public authorities law.
13 § 19. Clause (a) of subparagraph 5 of paragraph e of subdivision 6 of
14 section 3602 of the education law is amended by adding a new item (iv)
15 to read as follows:
16 (iv) Notwithstanding the provisions of item (i) of this clause, where
17 such city or city school district has entered into an agreement with the
18 state of New York municipal bond bank agency pursuant to subdivision one
19 of section twenty-four hundred thirty-five-a of the public authorities
20 law and subdivision (a) of section seventeen of the Rochester city
21 school district facilities modernization program act, or an agreement
22 with the county of Monroe industrial development agency, the dormitory
23 authority of the state of New York or an alternative funding conduit
24 entity for projects authorized pursuant to the Rochester city school
25 district facilities modernization program act, to finance debt related
26 to school rehabilitation or reconstruction or new school buildings that
27 is subject to subparagraph three of this paragraph, the lesser of: (A)
28 the net interest cost, as defined by the commissioner, applicable to the
29 obligations issued by the state of New York municipal bond bank agency
30 or the county of Monroe industrial development agency for such purpose;
31 or (B) such net interest cost, as defined by the commissioner, that
32 would have been applicable to bonds issued by the state of New York
33 municipal bond bank agency if the project had been authorized to be
34 financed and had been financed through such entity, as certified to the
35 commissioner by the executive director of the state of New York munici-
36 pal bond bank agency, shall be the interest rate established for such
37 city applicable to such debt.
38 § 20. The opening paragraph of subdivision 6 of section 3602 of the
39 education law, as separately amended by section 2 of part A3 and section
40 18 of part A4 of chapter 58 of the laws of 2006, is amended to read as
41 follows:
42 Apportionment for capital outlays and debt service for school building
43 purposes. Any apportionment to a school district pursuant to this subdi-
44 vision shall be based upon base year approved expenditures for capital
45 outlays incurred prior to July first, two thousand one from its general
46 fund, capital fund or reserved funds and current year approved expendi-
47 tures for debt service, including debt service for refunding bond issues
48 eligible for an apportionment pursuant to paragraph g of this subdivi-
49 sion and lease or other annual payments to the New York city educational
50 construction fund created by article ten of this chapter or the city of
51 Yonkers educational construction fund created by article ten-B of this
52 chapter which have been pledged to secure the payment of bonds, notes or
53 other obligations issued by the fund to finance the construction, acqui-
54 sition, reconstruction, rehabilitation or improvement of the school
55 portion of combined occupancy structures, or for lease or other annual
56 payments to the New York state urban development corporation created by
A. 743 13
1 chapter one hundred seventy-four of the laws of nineteen hundred sixty-
2 eight, pursuant to agreement between such school district and such
3 corporation relating to the construction, acquisition, reconstruction,
4 rehabilitation or improvement of any school building, or for annual
5 payments to the dormitory authority pursuant to any lease, sublease or
6 other agreement relating to the financing, refinancing, acquisition,
7 design, construction, reconstruction, rehabilitation, improvement,
8 furnishing and equipping of, or otherwise provide for school district
9 capital facilities or school district capital equipment made under the
10 provisions of section sixteen hundred eighty of the public authorities
11 law, or for annual payments pursuant to any lease, sublease or other
12 agreement relating to the financing, refinancing, acquisition, design,
13 construction, reconstruction, rehabilitation, improvement, furnishing
14 and equipping of, or otherwise providing for educational facilities of a
15 city school district under the provisions of section sixteen of chapter
16 six hundred five of the laws of two thousand, or for payments, pursuant
17 to any assignment authorized by section twenty-seven hundred ninety-
18 nine-tt of the public authorities law, of debt service in furtherance of
19 funding the five-year educational facilities capital plan of the city of
20 New York school district or related debt service costs and expenses as
21 set forth in such section, for annual payments pursuant to any lease,
22 sublease or other agreement relating to the financing, refinancing,
23 design, reconstruction, rehabilitation, improvement, furnishing and
24 equipping of, or otherwise providing for projects authorized pursuant to
25 the city of Syracuse and the board of education of the city school
26 district of the city of Syracuse cooperative school reconstruction act,
27 and for projects authorized pursuant to the city of Rochester and the
28 board of education of the city school district of the Rochester city
29 school district facilities modernization program act, or for lease,
30 lease-purchase or other annual payments to another school district or
31 person, partnership or corporation pursuant to an agreement made under
32 the provisions of section four hundred three-b, subdivision eight of
33 section twenty-five hundred three, or subdivision six of section twen-
34 ty-five hundred fifty-four of this chapter, provided that the apportion-
35 ment for such lease or other annual payments under the provisions of
36 section four hundred three-b, subdivision eight of section twenty-five
37 hundred three, or subdivision six of section twenty-five hundred fifty-
38 four of this chapter, other than payments under a lease-purchase agree-
39 ment or an equivalent agreement, shall be based upon approved expendi-
40 tures in the current year. Approved expenditures for capital outlays
41 from a school district's general fund, capital fund or reserved funds
42 that are incurred on or after July first, two thousand two, and are not
43 aidable pursuant to subdivision six-f of this section, shall be aidable
44 as debt service under an assumed amortization established pursuant to
45 paragraphs e and j of this subdivision. In any such case approved
46 expenditures shall be only for new construction, reconstruction,
47 purchase of existing structures, for site purchase and improvement, for
48 new garages, for original equipment, furnishings, machinery, or appara-
49 tus, and for professional fees and other costs incidental to such
50 construction or reconstruction, or purchase of existing structures. In
51 the case of a lease or lease-purchase agreement entered pursuant to
52 section four hundred three-b, subdivision eight of section twenty-five
53 hundred three or subdivision six of section twenty-five hundred fifty-
54 four of this chapter, approved expenditures for the lease or other annu-
55 al payments shall not include the costs of heat, electricity, water or
56 other utilities or the costs of operation or maintenance of the leased
A. 743 14
1 facility. An apportionment shall be available pursuant to this subdivi-
2 sion for construction, reconstruction, rehabilitation or improvement in
3 a building, or portion thereof, being leased by a school district only
4 if the lease is for a term of at least ten years subsequent to the date
5 of the general construction contract for such construction, recon-
6 struction, rehabilitation or improvement. Each school district shall
7 prepare a five year capital facilities plan, pursuant to regulations
8 developed by the commissioner for such purpose, provided that in the
9 case of a city school district in a city having a population of one
10 million inhabitants or more, such facilities plan shall comply with the
11 provisions of section twenty-five hundred ninety-p of this chapter and
12 this subdivision. Such plan shall include, but not be limited to, a
13 building inventory, and estimated expense of facility needs, for new
14 construction, additions, alterations, reconstruction, major repairs,
15 energy consumption and maintenance by school building, as appropriate.
16 Such five year plan shall include a priority ranking of projects and
17 shall be amended if necessary to reflect subsequent on-site evaluations
18 of facilities conducted by state supported contractors.
19 § 21. On June 30, 2009 and annually thereafter, until completion of
20 the projects in a total aggregate maximum amount of two hundred fifty-
21 five million dollars authorized pursuant to this act, the RSC board
22 shall issue a report to the governor, the comptroller, the commissioner,
23 the temporary president of the senate, the speaker of the assembly, the
24 city mayor, the city council and the city school district on the
25 progress and status of the projects undertaken by the RSC board.
26 Provided further, that if any such entities request information on the
27 progress and status of the projects prior to such report, it shall be
28 provided to such entities by the RSC board. In addition, on or before
29 June 30, 2017, the RSC board shall issue a report to the city mayor, the
30 city school district, the governor, the commissioner, the comptroller,
31 the temporary president of the senate, the minority leader of the
32 senate, the speaker of the assembly, the minority leader of the assem-
33 bly, the state board of regents, and the chairs and ranking minority
34 members of the New York state senate and assembly committees on educa-
35 tion, the finance committee of the New York state senate, and the ways
36 and means committee of the New York state assembly and the division of
37 the budget. Such report shall identify the fiscal and pedagogical
38 results of the projects undertaken pursuant to this act, along with
39 recommendations for its continuance, amendments, or discontinuance.
40 § 22. Insofar as the provisions of this act are inconsistent with the
41 provisions of any other law, general, special, or local, or of the city
42 charter or an ordinance or resolution of the city council or the board
43 of education of the city school district, or any rule or regulation, the
44 provisions of this act shall be controlling, provided that nothing
45 contained in this act shall be held to supplement or otherwise expand
46 the powers or duties of the city or the city school district except as
47 specified herein.
48 § 23. Subdivision 1 of section 2435-a of the public authorities law,
49 as amended by section 22 of part A4 of chapter 58 of the laws of 2006,
50 is amended to read as follows:
51 (1) In order to fulfill the purposes of this title and to provide a
52 means by which the special program municipalities may (a) receive moneys
53 to refund certain property taxes determined to be in excess of state
54 constitutional tax limits or to reimburse the special program munici-
55 palities for the prior refunding of such taxes or (b) receive moneys to
56 be applied to the cost of settling litigation involving the city school
A. 743 15
1 districts of special program municipalities and the teachers' unions in
2 such special program municipalities, or (c) receive moneys for the
3 financing of public improvements to be applied to the cost of the recon-
4 struction, rehabilitation or renovation of an educational facility
5 pursuant to the provisions of subdivision (b) of section sixteen of
6 chapter six hundred five of the laws of two thousand, or (d) receive
7 moneys for the financing of public improvements to be applied to the
8 cost of a project for design, reconstruction or rehabilitation of a
9 school building pursuant to the provisions of section fourteen of the
10 city of Syracuse and the board of education of the city school district
11 of the city of Syracuse cooperative school reconstruction act, and
12 pursuant to the provisions of section sixteen of the Rochester city
13 school district facilities modernization program act, and notwithstand-
14 ing any general or special law to the contrary, the agency and each
15 special program municipality are hereby authorized to enter into one or
16 more special program agreements, which special program agreements shall,
17 consistent with the provisions of this title, contain such terms,
18 provisions and conditions as, in the judgment of the agency, shall be
19 necessary or desirable. Each special program agreement shall specify the
20 amount to be made available to the respective special program munici-
21 pality from the proceeds of an issue of special program bonds and shall
22 require such special program municipality, subject to appropriation by
23 the appropriate legislative body of such special program municipality,
24 to make payments to the agency in the amounts and at the times deter-
25 mined by the agency to be necessary to provide for payment of such issue
26 of special program bonds and such other fees, charges, costs and other
27 amounts as the agency shall in its judgment determine to be necessary or
28 desirable.
29 § 24. Subdivision 4 of section 2436 of the public authorities law, as
30 amended by section 23 of part A4 of chapter 58 of the laws of 2006, is
31 amended to read as follows:
32 4. In the event that a special program municipality shall fail to make
33 a payment in such amount (as calculated in accordance with the special
34 program agreement to which such municipality shall be a party) and by
35 such date as is provided to be made by such municipality in its special
36 program agreement, the chairman of the agency shall so certify to the
37 comptroller. Such certificate shall be in such form as the agency deems
38 desirable, but shall specify the amount by which such payment shall have
39 been deficient. The comptroller, upon receipt of such certificate from
40 the agency, shall withhold from such special program municipality any
41 state aid payable to such municipality to the extent of the amount so
42 stated in such certificate as not having been made, and shall immediate-
43 ly pay over to the agency the amount so withheld; provided, however,
44 that in the case of a special program agreement entered into for the
45 purpose described in paragraph (b) or (c) or (d) or (e) of subdivision
46 one of section twenty-four hundred thirty-five-a of this title, the
47 comptroller shall be authorized to withhold from the special program
48 municipality such school aid as is payable to the city school district
49 of the special program municipality, to the extent of the amount so
50 stated in such certificate as not having been made, and shall immediate-
51 ly pay over to the agency the amount so withheld. Any amount so paid to
52 the agency from such state and/or school aid shall not obligate the
53 state to make, nor entitle the special program municipality to receive,
54 any additional amounts of state and/or school aid. Nothing contained
55 therein shall be deemed to prevent the state from modifying, reducing or
56 eliminating any program or programs of state and/or school aid; nor
A. 743 16
1 shall the state be obligated by the terms hereof to maintain state
2 and/or school aid at any particular level or amount.
3 § 25. Subdivision 1 of section 2438 of the public authorities law, as
4 amended by section 24 of part A4 of chapter 58 of the laws of 2006, is
5 amended to read as follows:
6 (1) The agency shall not issue bonds and notes in an aggregate princi-
7 pal amount at any one time outstanding exceeding one billion dollars,
8 excluding tax lien collateralized securities, special school purpose
9 bonds, special school deficit program bonds, special program bonds
10 issued to finance the reconstruction, rehabilitation or renovation of an
11 educational facility pursuant to the provisions of subdivision (b) of
12 section sixteen of chapter six hundred five of the laws of two thousand,
13 special program bonds issued to finance the cost of a project for
14 design, reconstruction or rehabilitation of a school building pursuant
15 to the provisions of section fourteen of the city of Syracuse and the
16 board of education of the city school district of the city of Syracuse
17 cooperative school reconstruction act and pursuant to the provisions of
18 section sixteen of the Rochester city school district facilities modern-
19 ization program act and bonds and notes issued to refund outstanding
20 bonds and notes.
21 § 26. Severability. The provisions of this act shall be severable, and
22 if the application of any clause, sentence, paragraph, subdivision,
23 section or part of this act to any person or circumstance shall be
24 adjudged by any court of competent jurisdiction to be invalid, such
25 judgment shall not necessarily affect, impair or invalidate the applica-
26 tion of any such clause, sentence, paragraph, subdivision, section, part
27 of this act or remainder thereof, as the case may be, to any other
28 person or circumstance, but shall be confined in its operation to the
29 clause, sentence, paragraph, subdivision, section or part thereof
30 directly involved in the controversy in which such judgment shall have
31 been rendered.
32 § 27. This act shall take effect immediately and shall apply to
33 contracts entered into on behalf of school districts on and after such
34 date.
