§ 41. Contract for maintenance and operation. a. If in the opinion of\nthe board of estimate and the mayor, a contract for the equipment,\nmaintenance and operation as provided for in the preceding section shall\nbe inexpedient, impracticable or prejudical to the public interest, the\nboard of transportation, with the approval of the board of estimate and\nthe mayor, may equip such road in whole or in part, or purchase power\nfor operation thereof, for and at the public expense, by contract\ntherefor subject to the provisions of section seventeen of this chapter,\nand enter into a contract with any person, who or which in the opinion\nof such board of transportation shall be best qualified to fulfill and\ncarry out such contract for the maintenance and operation of such road\nfor a term of not to exceed ten years to be specified in such contract.\nThe provisions of the foregoing sections in respect of contracts for the\nequipment, maintenance and operation of such road shall apply to such\ncontract for maintenance and operation so far as such provisions are\npertinent and applicable thereto except that the renewal or renewals of\nsuch contract provided for therein shall not exceed ten years in the\naggregate.\n b. Every grant or contract made under the provisions of this chapter,\nas part of which the city shall have a right to terminate any right or\nfranchise or any contract for maintenance and operation of any railroad,\nshall provide that if at any time in ascertaining the amount to be paid\nby the city as a condition of such termination or at the expiration of\nthe full term, it shall be necessary that a valuation of any plant,\nproperty, equipment, construction or any investment in any thereof,\nshall be determined, such valuation shall in default of agreement be\ndetermined by arbitration or by the court. Every such grant or contract\nshall also make provision to assure supervision by the board of\ntransportation of all operations of such grantee or contractor in and\nabout such enterprise and for keeping and for access to and examination,\nuse and production of any and all books, records and memoranda of such\noperations, not only of the grantee or contractor but of any contractor,\nsub-contractor, banker or person furnishing money, material or supplies\ndirectly or indirectly to such enterprise, to the extent that such\nbooks, records and memoranda have to do therewith, and for ascertaining\nthe cost to the grantee or contractor and the value of any equipment,\nproperty or construction furnished or done pursuant to such grant or\ncontract, including permanent additions to construction from time to\ntime and for a method of determining the amount of such cost forthwith\nupon the furnishing or completion of the same by arbitration or by the\ncourt in default of an agreement upon the amount thereof. The grant or\ncontract may provide that if the amounts to be paid to the grantee or\ncontractor upon any such termination shall not have been finally\ndetermined or paid prior to or at the time when the termination is under\nsuch notice given to take effect the title to and right of possession of\nthe property, and the right of possession of such railroad may\nnevertheless pass to the city or to a new contractor, and that the city\nor such new contractor having given proper and sufficient sureties shall\npay to the contractor the amount so determined, with interest from the\ntime aforesaid.\n c. Every grant or contract made under the provisions of this chapter\nby the terms of which the city in lieu of rental shall be entitled to a\nportion of income or increase derived from the enterprise shall make\nprovision for definition and determination from time to time of the\nitems to be included in operating expenses, taxes, payments to reserve\nand amortization funds and for the percentages or amounts to be set\naside therefor and for interest upon construction cost. The board of\ntransportation shall prescribe in the grant or
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.