§ 194. Construction or improvement of town highways by county and town. 1. The board of supervisors of a county may provide for the construction or improvement under this section of a town highway or section thereof in one or more towns of the county or of a highway laid out along the boundary line between a city or village and a town or towns, at the joint expense of the county and town, as provided in this section. This section shall not apply to the construction, improvement or maintenance of any such highway or part thereof with state moneys as defined by article six, except provisions hereof which, by that article, are expressly made applicable thereto. No highway or part thereof within the county road system established as provided in article six, shall be constructed or improved under the provisions of this section except with the consent of the commissioner of transportation and in accordance with a written outline of the work, approved by him, showing the course, width, thickness and type of the proposed road.

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2. The board may, by resolution direct the county superintendent to examine such highway or sections thereof, and report thereon, and if the board considers such highway or section thereof to be of sufficient importance to be constructed or improved as provided herein, it shall direct such county superintendent to prepare or cause to be prepared maps, plans, specifications and estimates therefor and such county superintendent shall, subject to the direction and control of the board of supervisors, have the same powers and duties with respect to such highway or section thereof as are given the commissioner of transportation with respect to state highways in section eleven of this chapter. Such maps, plans and specifications may provide for the change in grade of a highway already existing if thereby a lessened gradient may be obtained without decreasing the usefulness of the highway. Upon the completion of such preliminary maps, plans, specifications and estimates, they shall be submitted to the board of supervisors for approval, and such board may thereupon adopt a resolution providing for the construction or improvement of such highway in accordance with such maps, plans, specifications and estimates or in accordance with such maps, plans, specifications and estimates as may be approved by it.

3. The board of supervisors shall award contracts for the construction or improvement of such highway and the provisions of section thirty-eight of this chapter shall apply so far as may be to such contracts and the award, execution and fulfillment thereof. Such contract may be awarded to the town board of any town in which such highway or section thereof is located. If such contract be awarded to a town board such board shall, by resolution, designate some suitable person or persons, to be approved by the county superintendents of highways to carry into effect, on behalf of such town, such contract, and transact all business in respect thereto as may be necessary. A member of the town board at the time such contract was awarded or such designation was made, or a person who is a partner of, or a stockholder in the same corporation as that of such member shall not be so designated. A member of the town board at the time such designation was made, or a firm, corporation or association of which he is a member or has an interest, shall not be directly or indirectly interested in any such contract nor shall such member, or such firm, corporation or association furnish materials or perform labor or services either directly or indirectly under or in connection with the performance of any of the work required in accordance with such contract, nor shall such member, firm or corporation or association be paid for materials furnished or services rendered in respect to such contract. The town clerk shall transmit to the board of supervisors a certified copy of the resolution designating the person or persons to carry into effect such contract prior to the awarding of a contract to the town board. The person or persons so designated shall, before the contract is executed, give an undertaking to the county or town with sureties to be approved by the board of supervisors and the penalty of such surety shall be determined by the board of supervisors. Such undertaking shall be conditioned on the faithful performance of their duties in respect to such contract and for the proper accounting, safe keeping and lawful disbursement of all moneys that may come into their hands thereunder. Such undertaking shall be filed in the office of the town clerk and a certified copy thereof shall be transmitted to the county clerk and the board of supervisors. The person or persons so designated shall thereupon be competent to receive all moneys payable under such contract under the provisions of this section, and they shall account therefor to the board of supervisors. The town board, after such contract is awarded shall designate, by resolution, a banking corporation or a trust company wherein the moneys received under such contract shall be deposited. Such bank or trust company shall, upon the request of the town board, make a statement of the money so deposited. The board of supervisors shall prescribe the manner in which the moneys received under such contract shall be expended and the form of accounts to be kept by the person or persons designated as above provided. Reports may be required by the board of supervisors from time to time from such person or persons. If a town shall construct a highway or section thereof, by contract as above provided, for a lesser sum than the contract price, such surplus shall be credited to the general town fund.

4. The board of supervisors shall determine the portion of the cost of the construction or improvement of such highway to be borne by the county and the portion to be borne by the town or towns in which such highway is located. The cost of the portion constructed or improved within the boundaries of a city shall be borne by the county. The amount to be borne by the county shall be levied and collected as a county charge and paid into the county treasury. The amount to be borne by the town or towns in which the highway is located shall be levied and collected as a town charge and when collected shall be paid into the county treasury.

5. If such highway or section thereof deviate from the line of a highway already existing, the board of supervisors shall acquire land for the requisite right of way, and such board may also acquire lands for the purpose of obtaining gravel, stone or other material, when required for the construction or improvement of such highway or section thereof, or for spoil banks, together with a right of way to such spoil banks and to any bed, pit, quarry or other place where such gravel, stone or other material may be located, and the provisions of section thirty to thirty-seven, both inclusive, shall apply to the acquisition of such lands as far as may be, except that the cost of such lands and the expenses incident to acquiring the same shall be deemed a part of the cost of the construction or improvement of such highway under the provisions of this section.

6. If the construction or improvement of such highway involve the elimination of a grade crossing the portion of the cost of such elimination and the construction of a new crossing chargeable to the town in pursuance of law shall be deemed a part of the cost of the construction or improvement of such highway under the provisions of this section.

7. The amount so paid by the town shall not be considered in determining the minimum amount to be levied and collected in each year for the repair and improvement of highways as provided in section two hundred and seventy-one of this chapter nor shall such amount be considered in determining the amount to be paid by the state to the town for the repair and improvement of highways therein.

8. Nothing contained in this section shall be construed to prevent the county or town from raising funds pursuant to the local finance law to pay the portion of the cost of such construction or improvement to be borne respectively by the county or such town or towns. The construction or improvement authorized by such resolution shall be done under the supervision and direction of the county superintendent. Payments therefor shall be made from time to time by the county treasurer upon the certificate of the county superintendent indorsed by the chairman of the board of supervisors.

9. Such highways, when completed and accepted by the board of supervisors, shall be thereafter repaired and maintained by the towns wherein such highways are located in the same manner as all other town highways; except there shall be raised annually by the county and by the town a tax of not less than one hundred dollars per mile for each mile of highways improved in a town under the provisions of this section. The amount thereof to be borne by the county or by the town shall be apportioned by the board of supervisors. The portion to be borne by the county shall be levied and collected in the same manner as other county taxes and shall be paid into the county treasury. The resolution providing for the collection of such taxes shall also indicate the amount which shall be expended in each town and may provide that such amount may be expended under the direction of either the town superintendent of the town or the county superintendent of the county, as the board of supervisors of the county shall deem best, and a certified copy of the resolution shall be filed with the county treasurer. The amount thereof to be borne by the town shall, by resolution of the town board, be paid from any funds of such town that may be legally used for highway purposes, and be paid into the county treasury if the board of supervisors has by resolution determined that the same shall be expended under the direction of the county superintendent.