NY Rapid Trans L § 45 (2021)
2021 New York Laws RAT - Rapid Transit Article 5 - Private Construction, Equipment, Maintenance or Operation of Railroads 45 - Extensions and Additional Lines.

§  45.  Extensions  and  additional  lines.  a.  Whenever the board of   transportation shall determine that the public interests so require,  it   may  with  the  approval of the board of estimate and the mayor, without   advertising for proposals, but only after a public hearing under section   thirty-four of this chapter, enter  into  a  contract  with  the  person   owning,  operating or agreeing to operate, any existing railroad for the   construction,  equipment,  maintenance  and  operation,   or   for   the   equipment,  maintenance  and  operation  of  any  additional or proposed   railroad to be owned  by  the  city  for  which  necessary  consents  as   provided in section twenty-one of this chapter shall have been obtained,   provided  that  such  proposed railroad shall be operated in conjunction   with such existing railroad for a single fare.  Such  contract  for  the   equipment, maintenance and operation of such road or any portion thereof   may  be  made  and entered into before consents shall have been obtained   therefor as provided in section twenty-one of this chapter. In such case   such contract for equipment, maintenance and operation of such  road  or   any portion thereof shall be upon condition that such contract shall not   become  operative  or  go  into  effect  as to such road or such portion   thereof unless and until the city shall acquire the right  to  construct   such road or portion thereof by obtaining such consents.b.   Such   contract  for  construction,  equipment,  maintenance  and   operation or for equipment, maintenance and operation  may  be  made  in   either of the two following ways:1. If such existing railroad be wholly or in part within the limits of   the city, such contract may be made under and pursuant to the provisions   of  sections  thirty-one,  forty, and forty-two, so far as such sections   shall be applicable, with the railroad corporation  owning  or  actually   operating  or  agreeing  to operate such existing railroad, but the term   for equipment, maintenance and  operation  of  such  proposed  road,  as   specified  in such contract, pursuant to such sections, shall not be for   a period longer than the unexpired term of the franchise or contract for   the maintenance and operation of such existing railroad and any renewals   provided for in such franchise or contract.2. If such existing railroad be a rapid transit  railroad  constructed   wholly  or  in  part  at  the public expense under the provisions of the   rapid transit act or this chapter and wholly or  in  part  in  operation   such  contract  may  be made with the person having the contract for the   construction and operation of such existing rapid  transit  railroad  by   the  terms  of  which  such  proposed  rapid  transit  railroad  if  not   constructed or to be constructed by the board  of  transportation  under   separate construction contracts shall be constructed as extra work under   the  terms  of such existing contract either without expense to the city   or for such sum of money or such proportion of the actual  cost  thereof   as  may  be  agreed  upon  to  be  paid  by  such city for or toward the   construction thereof, the railroad when so completed as extra work to be   subject to the terms and conditions of such original contract except  so   far as shall be otherwise specified and agreed.c.  Every  such contract for such construction, equipment, maintenance   and operation or for such equipment, maintenance and operation  of  such   proposed  railroad made in either of the foregoing specified ways, shall   also make provision that the city, upon giving a specified  notice,  may   terminate  the  contract for equipment, maintenance and operation of any   such proposed railroad as to all and  if  deemed  advisable  as  to  any   specified  portion thereof at any time after the expiration of ten years   from the date when operation of any part of such proposed railroad or of   such specified portion thereof shall actually begin, but such  right  of   termination of any such contract shall be upon condition as follows: 1.  If  the title to the equipment of such proposed railroad shall not   be vested in the city then that the equipment of the  proposed  railroad   or  portion  thereof  suitable  to  and  used  for  the purposes of such   railroad as apportioned pursuant to the contract, shall be purchased and   taken by the city at an amount which shall be ascertained as provided in   the  contract,  but  which  shall  not  be  greater than the actual cost   thereof, plus fifteen per centum thereof, and such equipment, upon  such   termination  of  such  contract, shall become and be the property of the   city on paying to the contractor such amount. In case the title  to  the   equipment  of  such  proposed  railroad shall be vested in the city then   that the city shall pay to the contractor an amount for  his  investment   in  the  equipment  of such proposed railroad, or portion thereof, which   shall not exceed the actual cost to the contractor of equipment of  such   railroad or portion, plus fifteen per centum thereof, and shall decrease   under  provisions  of the contract as the term thereof continues so that   at the end of the full term of the contract no such amount shall be paid   except that if additional equipment shall be required and supplied after   the railroad, or portion thereof, shall have been put in operation,  and   if  the  contract  shall provide that title to such additional equipment   shall vest in the city when supplied, then the city shall pay an  amount   for  the investment of the contractor in such additional equipment which   amount shall not exceed the  actual  cost  to  the  contractor  of  such   additional  equipment  plus fifteen percentum thereof and shall diminish   so that at the end of the full term of the contract the  city  shall  be   required  to  pay  for such investment in additional equipment only such   amount as shall be provided in such contract.2. Upon the further condition  if  such  proposed  railroad  shall  be   constructed  wholly  or  in  part at the cost of the contractor that the   city shall also pay to the contractor an amount for  his  investment  in   the  construction  of such proposed road or portion thereof, which shall   not exceed the actual cost to the contractor of constructing  such  road   or  portion,  plus  fifteen per centum thereof, and shall decrease under   provisions of the contract as the term thereof continues so that at  the   end  of  the  full  term  of  the contract no such amount shall be paid,   except that if betterments, additions or improvements shall be  required   by  the  board  of transportation or approved by such board prior to the   construction thereof and be constructed wholly or in part at the cost of   the contractor,  then  that  the  city  shall  pay  an  amount  for  the   investment   of   the  contractor  in  such  betterments,  additions  or   improvements which shall not exceed the actual cost to the contractor of   constructing such betterments, additions or  improvements  plus  fifteen   per centum thereof and which amount shall diminish so that at the end of   the full term of the contract the city shall be required to pay for such   investment in betterments, additions or improvements only such amount as   shall be provided in the contract.d.  The  contract shall provide a method of ascertaining the amount to   be paid for such equipment and for the investment of the  contractor  in   the construction of such proposed road upon a termination by the city of   such contract and for the equipment of such proposed railroad at the end   of  the  full  term  of  the  contract.  The  contract  may  provide for   determining from time to time, in default of agreement,  by  arbitration   or by the court, a valuation of such investment of the contractor in the   construction  of  such proposed road and of the equipment or any part or   portion of either thereof for  any  purpose  under  such  contract.  The   contract  may provide that the title to the equipment as well as to such   road shall vest in the city from the beginning and that the amount to be   paid by the city for the investment of the contractor in such  equipment   shall decrease as the terms of the contract continues so that at the end    of  the  full  term  of the contract no amount shall be payable therefor   except for additional equipment as aforesaid. The contract shall provide   that upon the expiration of the term fixed in the contract, the contract   shall  end  without compensation to the contractor except as provided in   the contract, for betterments, additions or  improvements  to  any  such   railroad  required to be made or approved by the board of transportation   prior to the construction thereof during the term of any such  contract,   and,  if  the  title  to  the  equipment  be not vested in the city, for   equipment suitable to and used for the purposes of such contract to  the   amount,  if  any,  ascertained  as provided in the contract, and that in   such event such equipment shall become the property  of  the  city  upon   payment  to  the  contractor  of  such  amount,  or, if the title to the   equipment be vested in the city, then an amount for  the  investment  of   the  contractor  in  additional  equipment  for  any such railroad to be   ascertained as provided in the contract.e. The contract also may include a provision for modification  of  the   lease  or  contract  for  equipment,  maintenance  and operation of such   existing  railroad  so  that  such  latter  lease  or  contract  may  be   terminated  by  the city upon giving a specified notice at the same time   and in connection with the  termination  of  the  contract  as  to  such   proposed railroad, but such right of termination of any such contract as   to such existing railroad shall be upon condition:1.  That  the  equipment of such railroad suitable to and used for the   purposes of such contract shall be purchased and taken by the city at an   amount which shall be ascertained as provided in the contract, but shall   not be greater than the actual cost  thereof  plus  fifteen  per  centum   thereof,  and  such  equipment,  upon such termination of such contract,   shall become and be the property of the city on paying to the contractor   such amount, or2. Upon the further condition, if such existing  railroad  shall  have   been  constructed  wholly or in part at the cost of the contractor, that   the city also shall  pay  to  the  contractor  or  to  his  assignee  in   possession  an  amount  for  the  investment in the construction of such   existing road which shall not exceed the actual cost to  the  contractor   of  constructing  such  road  plus fifteen per centum thereof, and shall   decrease under the provisions  of  the  contract  as  the  term  thereof   continues,  so  that at the end of the full term of the contract, and of   any renewal thereof contained therein, no such amount shall be paid.The contract as so modified shall provide a method of ascertaining the   amount to be paid for such equipment  and  for  the  investment  of  the   contractor  in  the  construction of such road upon a termination by the   city of such contract, and for the equipment of such  existing  railroad   at  the  end  of  the  full  term  of  the contract. Such contract as so   modified may provide for determining from time to time,  in  default  of   agreement,  by  arbitration  or  by  the  court,  a  valuation  of  such   investment of the contractor in the construction of such road and of the   equipment, or any part or portion of either  thereof,  for  any  purpose   under  such contract. The contract also may provide for assuring that in   case a new contract for equipment, and for maintenance and operation  of   such  existing  railroad,  or  proposed  railroad,  is  made  after such   termination, pursuant to notice, or after the  expiration  of  the  full   term of such contract, that the title to and possession of the equipment   so  taken and the right to the possession of the railroad so constructed   may be transferred directly to the new contractor upon  his  paying  the   amount so required.