§ 40. Contract for equipment, maintenance and operation. a. Subject\nto the approval of the board of estimate and of the mayor, the board of\ntransportation shall have full power and authority to provide for the\nmaintenance, supervision, care and operation of any railroad and also of\nthe subsurface structures and all other devices and appurtenances,\nconstructed or to be constructed for and at the expense of such city\npursuant to the provisions of this chapter. With like approval, such\nboard of transportation may enter into a contract with any person, who\nin the opinion of such board shall be best qualified to fulfill and\ncarry out such contract, for the equipment, or any part thereof not\nprovided for pursuant to section thirty-one of this chapter, of a\nrailroad, at his own cost and expense, and for the maintenance and\noperation of such road for a term of years to be specified in such\ncontract and not to exceed twenty years. In lieu of such definite term\nof twenty years the contract may be for a longer period to be fixed\ntherein and in such case it shall provide that the city upon giving a\nspecified notice shall have the right to terminate the contract for the\nequipment, maintenance and operation of such road as to all and if\ndeemed advisable as to any specified portion thereof at any time after\nthe expiration of ten years from the date when operation of any part of\nsuch road or of such specified portion thereof shall actually begin, but\nsuch right of termination shall be upon condition as follows:\n 1. If the title to the equipment of such railroad shall not be vested\nin the city then that the equipment of such railroad or portion thereof\nsuitable to and used for purposes of such contract shall be purchased\nand taken by the city at an amount which shall be ascertained as\nprovided in the contract, but which shall not be greater than the actual\ncost thereof, plus fifteen per centum thereof. Such equipment shall upon\nsuch termination of such contract become and be the property of the city\non paying to the contractor such amount, or in case the title to the\nequipment of such railroad shall be vested in the city then that the\ncity shall pay to the contractor an amount for his investment in the\nequipment of such railroad, or portion thereof, which shall not exceed\nthe actual cost to the contractor of the equipment of such railroad or\nportion thereof, plus fifteen per centum thereof, and shall decrease\nunder the provisions of the contract as the term thereof continues so\nthat at the end of the full term of the contract no such amount shall be\npaid. If additional equipment shall be required and supplied after the\nrailroad, or portion thereof, shall have been put in operation, and if\nthe contract shall provide that title to such additional equipment shall\nvest in the city when supplied, then the city shall pay an amount for\nthe investment of the contractor in such additional equipment which\namount shall not exceed the actual cost to the contractor of such\nadditional equipment plus fifteen per centum thereof, and shall diminish\nso that at the end of the full term of the contract the city shall be\nrequired to pay for such investment in additional equipment only such\namount as shall be provided in such contract, and\n 2. Upon the further condition if such railroad shall be constructed\nwholly or in part at the cost of the contractor that the city shall also\npay to the contractor an amount for his investment in the construction\nof such road or portion thereof which shall not exceed the actual cost\nto the contractor of constructing such road or portion, plus fifteen per\ncentum thereof, and shall decrease under provisions of the contract as\nthe term thereof continues so that at the end of the full term of the\ncontract no such amount shall be paid. If betterments, additions or\nimprovements shall be required by the board of transportation or\napproved by such board prior to the construction
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