§ 46. Franchise for private construction, maintenance and operation.\na. If or when the necessary consents have been obtained and the detailed\nplans and specifications have been prepared by the board of\ntransportation for a railroad, such board, with the approval of the\nboard of estimate and the mayor, may grant a franchise to construct,\nmaintain and operate such a railroad. The board of transportation shall\nhave power to prescribe all such terms and conditions of such grant and\nto require such security to be given and filed for the keeping and\nperformance of such terms and conditions as it may deem to be for the\ninterest of the public and of the city and may provide that in\nconnection with the construction of such railroad by the grantee at its\nown expense any galleries, ways, subways or tunnels for sub-surface\nstructures which may be included in any such plans shall be also\nconstructed by the grantee at the public expense, and in such case the\nsum to be paid therefor shall be separately stated and the amount\nappropriated and paid out of the funds hereafter authorized to be\nprovided in case of such construction, and such board may provide\nseparately for the maintenance, supervision, care and operation thereof\nas authorized by the provisions of section forty of this chapter.\n b. The grant shall provide that such railroad shall be constructed by\nand at the expense of the grantee under the direction and supervision of\nthe board of transportation and in accordance with such detailed plans\nand specifications; that the construction shall be begun within a time\nto be specified and shall be finished within a specified time\nthereafter; and that operation of such railroad shall be begun within a\nspecified time, and may fix the time within which portions of such\nrailroad shall be begun and finished and put in operation, and may\nprovide that such board may extend the time of beginning, of completion\nand of operation of such railroad or portion thereof, and that if the\ngrantee shall fail to begin or to finish the construction or begin the\noperation of such road or portion thereof at or within any time so\nfixed, or shall fail to comply with any of the terms or conditions of\nsuch grant, a penalty specified, or the grant and any construction\npursuant thereto, may be forfeited to the city.\n c. Such grant shall contain a reservation to the city of the privilege\nupon giving a specified notice to terminate such franchise and to\npurchase and take the plant and property of the grantee suitable to and\nused for the purpose of such railroad at any time after the expiration\nof ten years from the date when operation of any part of such railroad\nshall begin upon paying an amount for such plant and property as\nproperty, excluding any value for the franchise, which amount shall not\nexceed actual cost of such plant and property, plus fifteen per centum\nthereof, and shall decrease under provisions of the grant as the\nfranchise continues so that at the end of the full term of the grant no\namount shall be paid except for equipment as hereinafter provided. The\ngrant shall provide a method of ascertaining the amount to be paid for\nsuch plant and property upon termination by the city of such franchise\nand for the equipment of such railroad at the end of the full term of\nthe grant. The grant may provide for determining from time to time, in\ndefault of agreement, by arbitration or by the court, a valuation of\nsuch plant and property, or any part or portion thereof, for any purpose\nunder such grant. The grant shall make adequate provision for lien upon\nplant and property and by way of penalty or forfeiture of the grant and\nany construction pursuant thereto or otherwise to secure compliance with\nthe terms of such grant, efficiency of service at reasonable rates and\nthe maintenance of the property in good condition throughout the full\nterm of the grant.\n d. The grant shall provide that any and all income and
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