2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 11 - Metropolitan Commuter Transportation Authority › 1266-C - Transit Projects.

§  1266-c.  Transit  projects.  1.  Subject  to the provisions of this
section, the authority is hereby authorized, upon the request of the New
York city transit authority and upon such terms and conditions as  shall
be  agreed  to by the authority (i) to plan, design, acquire, construct,
reconstruct, rehabilitate and improve facilities, equipment, devices and
appurtenances, and  property  or  property  rights  constituting  or  to
constitute  part  of,  or  used  or  to  be  used in connection with the
operation of any transit facility now or hereafter owned or operated  by
the  New York city transit authority or any of its subsidiaries (each of
the foregoing activities and programs being referred to in this  section
as  a "transit project"), (ii) to finance the costs of a transit project
by the issuance of its notes, bonds or lease obligations, (iii) upon the
completion of any transit project or part thereof, to cause the same  to
be  transferred,  leased  or  subleased  to  the  New  York city transit
authority  or  its  designated  subsidiary  or   other   designee,   for
consideration.   The   terms  "facilities",  "equipment",  "devices  and
appurtenances", "property" or "property rights" and  "transit  facility"
shall have the meanings given to such terms from time to time in section
twelve  hundred  of this article. The authority shall have no obligation
to operate or, except as may otherwise be provided in any lease to which
it may be a party  as  hereinafter  provided,  repair  or  maintain  any
transit  project  or part thereof subsequent to its completion nor shall
it be liable to the transferee, lessee or sublessee  by  reason  of  any
warranty,  express  or implied, in respect thereof. Warranties furnished
in connection with such transit project shall be assignable and assigned
as directed by the New York city transit authority and approved  by  the
authority.
2.  In connection with any transit project, and in order to effectuate
the purposes of this  section,  the  authority  shall,  subject  to  the
provisions of this section, have all of the powers provided elsewhere in
this title, and, in addition, the authority may:
(a)  issue  its notes or bonds to finance all or any part of the costs
of a transit project;
(b) finance all or any part of the costs to the authority  or  to  any
other  person  or  entity,  public  or  private, of such transit project
through, or accompanied by, a  leasing  of  such  project  or  any  part
thereof  by  such  person  or  entity  to  the  authority  or through or
accompanied by a sale by the authority to any such person or entity  and
leaseback  to the authority, in each case for subleasing to the New York
city transit authority, its designated subsidiary or other designee  for
consideration, except that such leasing or leaseback from such person or
entity  may  be  directly  to the New York city transit authority or its
designated  subsidiary  or  other  designee  with  the  consent  of  the
authority;
(c)  issue  its  notes  or  bonds  to  defease  the lien of, refund or
otherwise repay any outstanding notes, bonds or other obligations of the
New York city transit authority which in the judgment of  the  authority
would  otherwise  delay,  impede  or  prevent  its  financing  a transit
project;
(d) accept the notes, bonds, lease,  sublease  and  other  contractual
obligations  of  the  New  York  city  transit  authority and any of its
designated subsidiaries in payment for a transfer, lease or sublease  of
a transit project;
(e)  accept from the New York city transit authority or its designated
subsidiary or from the city of New York, acting by its  mayor  alone,  a
transfer of title to or the use, occupancy, control or possession of any
real or personal property (or any interest therein) needed or useful for
or in connection with any transit project;
(f)  obtain  security  for  the  payment  by the New York city transit
authority or its designated  subsidiary  of  its  notes,  bonds,  lease,
sublease  or other contractual obligations, including a pledge of all or
any part of any of their revenues, which pledge  may  contain  covenants
with  respect to the charging and fixing of fares, fees and rentals, the
use and disposition of such fares, fees, rentals and other revenues, and
the setting aside of reserves therefrom;
(g) with the consent of the New York city  transit  authority  or  its
designated  subsidiary,  use,  with or without compensation, its agents,
employees and facilities; and
(h) apply for,  accept,  enter  into  contracts  for,  administer  and
disburse  any  federal, state or local aid or assistance, subject to the
terms and conditions thereof, which may be  available  for  any  transit
project.
3.  All  of  the  provisions  of  this title not inconsistent with the
provisions of this section shall  be  applicable  with  respect  to  any
bonds,  notes  or  lease  obligations of the authority issued or entered
into to finance any transit project, or to defease the lien  of,  refund
or  otherwise repay outstanding bonds, notes or other obligations of the
New York city transit authority, subject to the following conditions:
(a) such bonds and notes shall be payable as to principal,  redemption
premium,  if  any,  and  interest  and  such  other obligations shall be
payable, all in the manner more particularly provided by  the  authority
in the resolution under which the same shall be authorized to be issued;
(b)  such  lease obligations shall be non-recourse obligations limited
to the recovery of the leased property by  the  lessor  and  as  to  the
payments  of sums of money coming due thereunder, to proceedings against
the sublessee under any underlying sublease or pursuant to any pledge or
assignment given to secure sums payable under such underlying sublease;
(c) no bonds or notes of the authority shall be issued for the purpose
of defeasing the lien of, refunding or  otherwise  repaying  outstanding
bonds, notes or other obligations of the New York city transit authority
unless (i) the city of the New York shall have entered into an agreement
on  terms satisfactory to the authority to make periodic payments to the
New York city transit authority, and (ii)  the  New  York  city  transit
authority  shall have entered into an agreement on terms satisfactory to
the authority to make periodic payments to the authority, in  each  case
sufficient  to pay, when due, the principal, redemption premium, if any,
and interest upon the bonds or notes of the authority issued  to  effect
such defeasance, refunding or repayment;
(d)  notwithstanding  and  in  addition  to  any  provisions  for  the
redemption of such bonds or notes which may be contained in any contract
with the holders thereof, the city of  New  York  may,  upon  furnishing
sufficient  funds  therefor,  require the authority to redeem as a whole
any issue of such bonds or notes at the time or times and at  the  place
or  places  and  in  accordance  with the terms upon which such bonds or
notes are redeemable; and
(e) the city of New York shall not be liable on such bonds  or  notes,
and such bonds or notes shall not be a debt of the city of New York, and
shall contain on the face thereof a statement to such effect.
4.  The  authority  shall not undertake any transit project unless the
New York city transit authority or the subsidiary for whose benefit  the
transit project is to be undertaken, or both, shall pay or agree to pay,
in  the  form  of  a  bond,  note,  lease, sublease or other contractual
obligation, in a manner and on terms and conditions satisfactory to  the
authority,  any  portion  of  the costs to the authority of such transit
project and the financing thereof which is not  paid  to  the  authority
from  any  federal,  state  or  local  aid or assistance or which is not

payable from any other moneys made available or payable to the authority
by others for such project.
5. Neither the provisions of section one hundred ninety-seven-c of the
New  York city charter, relating to a uniform land use review procedure,
nor the provisions of any other local law of the city  of  New  York  of
like  or  similar  tenor or import shall apply (i) to the acquisition of
any real property (or any interest therein)  for  the  purposes  of  any
transit project by the city or by the New York city transit authority or
any  of  its  subsidiaries;  (ii) to the subsequent transfer of any real
property (or interest therein) so  acquired  to  the  authority  or  its
designee  for  the  purposes  of  such project or to the transfer to the
authority or its designee for such purposes of  any  real  property  (or
interest therein) then owned by the city or by the New York city transit
authority  or  any  such  subsidiary;  nor  (iii) to the transfer to the
authority or its designee  for  such  purposes  of  the  right  of  use,
occupancy,  control  or  possession  of  any  real property (or interest
therein), whether presently owned or hereafter acquired by the  city  or
by  the New York city transit authority or any such subsidiary; provided
in each such case, however,  that  if  at  the  time  of  such  proposed
acquisition  or  transfer the real property which is the subject of such
acquisition or transfer is not then being  utilized  for  a  transit  or
transportation  purpose  or  is  not  an  insubstantial addition to such
property contiguous thereto; (a) the authority proposing to  acquire  or
receive  such  property  shall, unless a submission with respect to such
property has previously been  made  and  approved  as  herein  provided,
submit  to  the community board for the community district in which such
property is located, data with respect  to  the  proposed  use  of  such
property  and  to  the design of any facility proposed to be constructed
thereon; (b) such community board shall inform the board of estimate  of
the city of New York, with copies to the city planning commission of the
city  of  New  York  and  the  proposing  authority,  of  its  views and
recommendations with respect thereto  within  forty-five  days  of  such
submission, and if the community board shall fail to so inform the board
of  estimate  within  such period it shall be deemed to have recommended
the proposal; and (c) the board of  estimate  shall,  within  forty-five
days of the recommendation of the community board, approve or disapprove
such acquisition or transfer, and if the board of estimate shall fail to
act within such period it shall be deemed to have approved the same.
6.  In its performance of any transit project, the authority shall not
be deemed the agent or instrumentality of the city of New  York  or  the
New   York   city   transit   authority   or  any  of  its  subsidiaries
notwithstanding the fact that title to any real or personal property (or
any interest therein) which is the subject of  or  is  a  part  of  such
project  is  held  by  or  upon  completion  of  such  project  is to be
transferred to such other entity. In  its  performance  of  any  transit
project,  however, the provisions of section twelve hundred nine of this
chapter shall apply to the authority  as  if  it  were  the  "authority"
referred to therein.
7. The authority, in addition to the powers provided elsewhere in this
title, shall possess all of the powers, rights and privileges of the New
York  city  transit authority or its designated subsidiary in connection
with the undertaking by  the  authority  of  any  transit  project.  The
authority,  upon  suitable  notice  to  and  an offer to consult with an
officer designated by the city of the New York, may occupy  the  streets
of  the city of New York for the purpose of doing any work over or under
the same in connection with any transit project without the  consent  of
or payment to such city.
8.  After  the  transfer,  transfer back, lease or sublease to the New
York city transit  authority  or  its  designated  subsidiary  or  other
designee of any transit project or part thereof, actions for damages for
injuries to real or personal property or for the destruction thereof, or
for  personal  injuries or death, based upon the use, condition or state
of such project or part  thereof  may  not  be  instituted  against  the
authority,  which  shall  have  no  liability  or  responsibility to the
transferee, lessee or sublessee or to third parties therefor.
9. Except as the authority shall otherwise agree, title to any transit
project or any part thereof or interest therein which  shall  have  been
transferred,  leased or subleased to the New York city transit authority
or its designated subsidiary, shall remain in such transferee, lessee or
sublessee any provision of title nine of this article or of any lease or
other agreement entered into under the provisions of that title  to  the
contrary notwithstanding.
10. The providing of any transit project shall not relieve the city of
New  York  of  its obligations under law and by lease to pay the capital
costs of the New York city transit authority or its subsidiaries.
11.  No  transit  project  to  be  constructed  upon   real   property
theretofore  used  for  a  transit  or  transportation purpose, or on an
insubstantial addition to such property contiguous thereto,  which  will
not  change  in  a  material respect the general character of such prior
transit or transportation use, nor any acts or activities in  connection
with  such project, shall be subject to the provisions of article eight,
nineteen, twenty-four or twenty-five of the  environmental  conservation
law,  or  to  any  local  law  or ordinance adopted pursuant to any such
article. Nor shall any transit project or  any  acts  or  activities  in
connection  therewith  taken by any person or entity, public or private,
pursuant to this section be subject to the provisions of  article  eight
of   the  environmental  conservation  law  if  such  project,  acts  or
activities require the preparation of a statement under or  pursuant  to
any federal law or regulation as to the environmental impact thereof.
12. The provisions of this section and of all agreements undertaken by
the New York city transit authority in accordance therewith shall in all
respects  be  subject  to  the  rights of the holders of any outstanding
bonds or notes of such authority.
13. a. All contracts for design, construction, services and  materials
pursuant  to  this title of whatever nature and all documents soliciting
bids or proposals therefor  shall  contain  or  make  reference  to  the
following provisions:
(i)   The  contractor  will  not  discriminate  against  employees  or
applicants for  employment  because  of  race,  creed,  color,  national
origin,  sex,  age, disability, or marital status, and will undertake or
continue existing programs of affirmative action to ensure that minority
group  persons  and  women  are  afforded  equal   opportunity   without
discrimination.  Such  programs  shall  include,  but not be limited to,
recruitment, employment, job assignment, promotion, upgrading, demotion,
transfer,  layoff,  termination,  rates  of  pay  or  other   forms   of
compensation,  and  selections  for  training  or  retraining, including
apprenticeship and on-the-job training.
(ii) At the request of  the  New  York  city  transit  authority,  the
metropolitan    transportation   authority,   and   their   subsidiaries
(hereinafter referred to as the authority), the contractor shall request
each employment agency, labor union,  or  authorized  representative  of
workers  with which it has a collective bargaining or other agreement or
understanding and which is involved in the performance of  the  contract
with  the  authority to furnish a written statement that such employment
agency, labor union or representative shall not discriminate because  of

race,  creed,  color,  national  origin, sex, age, disability or marital
status and that such union  or  representative  will  cooperate  in  the
implementation of the contractor's obligations hereunder.
(iii)   The   contractor   will   state,   in   all  solicitations  or
advertisements for employees placed by or on behalf of the contractor in
the performance of the contract with the authority, that  all  qualified
applicants   will  be  afforded  equal  employment  opportunity  without
discrimination because of race, creed, color, national origin, sex, age,
disability or marital status.  (iv)  The  contractor  will  include  the
provisions of subparagraphs (i) through (iii) of this paragraph in every
subcontract or purchase order in such a manner that such provisions will
be  binding  upon  each  subcontractor  or  vendor  as  to  its  work in
connection with the contract with the authority.
b. The authority shall establish procedures and guidelines  to  ensure
that  contractors  and  subcontractors undertake programs of affirmative
action and equal employment opportunity as required by this subdivision.
Such procedures may require after notice  in  a  bid  solicitation,  the
submission  of  an  affirmative action program prior to the award of any
contract, or at any time thereafter, and may require the  submission  of
compliance  reports  relating to the operation and implementation of any
affirmative action program adopted hereunder.  The  authority  may  take
appropriate action including contractual sanctions for non-compliance to
effectuate  the  provisions of this subdivision and shall be responsible
for monitoring compliance with this title.
14. (a) (i) In the performance of  projects  pursuant  to  this  title
minority  and  women-owned  business  enterprises  shall  be  given  the
opportunity for meaningful participation. The authority provided for  in
this  title shall establish measures and procedures to secure meaningful
participation and identify those contracts and items of work  for  which
minority  and  women-owned business enterprises may best bid to actively
and  affirmatively  promote  and  assist  their  participation  in   the
projects,  so as to facilitate the award of a fair share of contracts to
such enterprises; provided, however, that nothing in this title shall be
construed to limit the ability of the authority to assure that qualified
minority and women-owned business enterprises  may  participate  in  the
program.  For  purposes  hereof, minority business enterprise shall mean
any business enterprise which is at least fifty-one per centum owned by,
or in the case of a publicly owned  business,  at  least  fifty-one  per
centum  of the stock of which is owned by citizens or permanent resident
noncitizens who are Black, Hispanic, Asian or American  Indian,  Pacific
Islander  or  Alaskan  natives  and  such  ownership  interest  is real,
substantial and continuing  and  have  the  authority  to  independently
control the day to day business decisions of the entity for at least one
year;  and  women-owned  business  enterprise  shall  mean  any business
enterprise which is at least fifty-one per centum owned by,  or  in  the
case  of a publicly owned business, at least fifty-one per centum of the
stock of which is owned by citizens or  permanent  resident  noncitizens
who  are  women,  and  such  ownership interest is real, substantial and
continuing and have the authority to independently control  the  day  to
day business decisions of the entity for at least one year.
The  provisions  of this paragraph shall not be construed to limit the
ability of any minority or women-owned business enterprise to bid on any
contract.
(ii) In the implementation of this subdivision,  the  authority  shall
consider  compliance  by  any  contractor  with  the requirements of any
federal,  state,  or  local  law  concerning  minority  and  women-owned
business  enterprises,  which  may  effectuate  the requirements of this
subdivision.  If  the  authority  determines  that  by  virtue  of   the

imposition  of  the  requirements of any such law, in respect to capital
project contracts, the provisions thereof  duplicate  or  conflict  with
such  law, the authority may waive the applicability of this subdivision
to the extent of such duplication or conflict.
(iii)  Nothing  in  this  subdivision  shall be deemed to require that
overall state and federal requirements for participation of minority and
women-owned business enterprises in programs authorized under this title
be applied without regard to local circumstances to all projects  or  in
all communities.
(b)  In  order  to  implement  the requirements and objectives of this
subdivision, the authority shall establish  procedures  to  monitor  the
contractors'  compliance  with  provisions hereof, provide assistance in
obtaining  competing  qualified  minority   and   women-owned   business
enterprises  to perform contracts proposed to be awarded, and take other
appropriate measures to improve the access of minority  and  women-owned
business enterprises to these contracts.
15.  (a)  In  connection  with the performance of projects pursuant to
this section, the authority shall, to the  extent  practicable  and  not
inconsistent  with  any  federal law, regulation or requirement, promote
the meaningful participation  of  small  business  and  New  York  state
business  enterprises  in  the  provision of goods and services that are
produced or manufactured in New  York  state  as  part  of  procurements
undertaken by the authority.
(b)  The  authority  shall  within  one  hundred eighty days after the
effective  date  of  this  subdivision  develop,  and  review   annually
thereafter, a plan to effect the purposes of this subdivision.