N.Y. PBA Law § 1085

§ 1085. Contracts for sale of water wholesale. Any municipality is\nhereby authorized to contract with the authority for the purchase of\nwater from the authority at wholesale for a period not exceeding thirty\nyears except that, in the case of a fire protection district or a fire\nalarm district such period shall not exceed five years, and in the case\nof a fire district, such period shall not exceed ten years. Such\ncontract shall provide that the liability of such purchaser for the\npayment of any sums pursuant to such contract shall arise only at such\ntime as such water has been actually delivered to such purchaser. Such\ncontract shall state the rates, fees or charges to be paid for such\nwater, shall provide for the adjustment thereof either by increase or\ndecrease from time to time by mutual agreement of the parties thereto,\nsubject however to any provisions contained in any resolution of the\nauthority authorizing obligations relating to the imposition of rates,\nfees or charges and the revision or adjustment thereof. Prior to the\nexecution of such contract the governing board of any such purchaser\nshall call a public hearing to consider the subject matter and the\ndesirability of the execution of the proposed contract and shall publish\nnotice thereof in a newspaper of general circulation in the territorial\nboundaries of such purchaser, at least once and not less than fifteen\ndays before the date of such public hearing. Such notice shall briefly\nstate the terms of the proposed contract, the date and place of the\npublic hearing and further state that at such time and place the\ngoverning board will hear all persons interested. If after considering\nthe evidence adduced at such hearing, such governing body shall conclude\nthat the execution of such contract is in the public interest it may\nauthorize the execution thereof by the adoption of a resolution to such\neffect.\n