NY Rapid Trans L § 41 (2021)
2021 New York Laws RAT - Rapid Transit Article 5 - Private Construction, Equipment, Maintenance or Operation of Railroads 41 - Contract for Maintenance and Operation.

§ 41. Contract for maintenance and operation.  a. If in the opinion of   the  board  of  estimate  and  the  mayor, a contract for the equipment,   maintenance and operation as provided for in the preceding section shall   be inexpedient, impracticable or prejudical to the public interest,  the   board  of transportation, with the approval of the board of estimate and   the mayor, may equip such road in whole or in part,  or  purchase  power   for  operation  thereof,  for  and  at  the  public expense, by contract   therefor subject to the provisions of section seventeen of this chapter,   and enter into a contract with any person, who or which in  the  opinion   of  such  board of transportation shall be best qualified to fulfill and   carry out such contract for the maintenance and operation of  such  road   for  a term of not to exceed ten years to be specified in such contract.   The provisions of the foregoing sections in respect of contracts for the   equipment, maintenance and operation of such road shall  apply  to  such   contract  for  maintenance  and  operation so far as such provisions are   pertinent and applicable thereto except that the renewal or renewals  of   such  contract  provided  for  therein shall not exceed ten years in the   aggregate.b. Every grant or contract made under the provisions of this  chapter,   as  part  of which the city shall have a right to terminate any right or   franchise or any contract for maintenance and operation of any railroad,   shall provide that if at any time in ascertaining the amount to be  paid   by  the  city as a condition of such termination or at the expiration of   the full term, it shall be necessary that  a  valuation  of  any  plant,   property,  equipment,  construction  or  any  investment in any thereof,   shall be determined, such valuation shall in  default  of  agreement  be   determined  by arbitration or by the court. Every such grant or contract   shall also  make  provision  to  assure  supervision  by  the  board  of   transportation  of  all  operations of such grantee or contractor in and   about such enterprise and for keeping and for access to and examination,   use and production of any and all books, records and memoranda  of  such   operations, not only of the grantee or contractor but of any contractor,   sub-contractor,  banker or person furnishing money, material or supplies   directly or indirectly to such  enterprise,  to  the  extent  that  such   books,  records and memoranda have to do therewith, and for ascertaining   the cost to the grantee or contractor and the value  of  any  equipment,   property  or  construction  furnished  or done pursuant to such grant or   contract, including permanent additions to  construction  from  time  to   time  and  for a method of determining the amount of such cost forthwith   upon the furnishing or completion of the same by arbitration or  by  the   court  in  default of an agreement upon the amount thereof. The grant or   contract may provide that if the amounts to be paid to  the  grantee  or   contractor  upon  any  such  termination  shall  not  have  been finally   determined or paid prior to or at the time when the termination is under   such notice given to take effect the title to and right of possession of   the  property,  and  the  right  of  possession  of  such  railroad  may   nevertheless  pass to the city or to a new contractor, and that the city   or such new contractor having given proper and sufficient sureties shall   pay to the contractor the amount so determined, with interest  from  the   time aforesaid.c.  Every  grant or contract made under the provisions of this chapter   by the terms of which the city in lieu of rental shall be entitled to  a   portion  of  income  or  increase derived from the enterprise shall make   provision for definition and determination from  time  to  time  of  the   items  to  be included in operating expenses, taxes, payments to reserve   and amortization funds and for the percentages  or  amounts  to  be  set   aside  therefor  and  for  interest upon construction cost. The board of   transportation shall prescribe in the grant or  contract  a  period  for    amortization  by  the  grantee or contractor of the actual cost of plant   and property other than equipment, or actual cost to the  contractor  of   the  construction  of  such  road and the period so prescribed shall end   with  the  term  of the grant. Any and all sums of money received by the   city from or under any grant or contract made under  the  provisions  of   the  rapid  transit  act  or this chapter, over and above such sum as is   required by law to be paid into a sinking fund to meet  the  payment  of   interest  or  principal  on  city  bonds  issued  for  construction  and   equipment of any railroad pursuant to any such contract, and except  any   sum of money that may be contributed toward the construction of any road   by the contractor having the contract for the equipment and operation of   such  road,  shall  be  kept  separate  and apart from any and all other   moneys of such city and paid into a  fund  to  be  known  as  the  rapid   transit  fund,  and shall be applied under the direction of the board of   estimate  with  the  approval  of  the  mayor  only  to  or  toward  the   construction  of  railroads,  or  the  purchase of plant and property or   equipment of railroads, pursuant to the provisions of this  chapter,  or   to  deficiencies  in  the  operation or rental of railroads owned by the   city, or in the operation of railroads owned and operated  by  the  city   pursuant to this chapter.d.  Unless otherwise provided by law the board of transportation, with   the approval of the board of estimate and  the  mayor,  shall  have  and   exercise the powers, rights and privileges reserved or given to the city   to  terminate  any  right,  privilege,  franchise, authority or contract   granted or entered into, or which may be exercised under the  provisions   of this chapter, and may do and perform any and all things requisite and   necessary to any such termination.