2006 New York Code - Private Operation.

 
    §  22-139  Private  operation.  a.  If  the  board  of  estimate shall
  determine  that  municipal  operation  of  any  terminal  facilities  is
  inexpedient,  it  shall  advertise  for  proposals  for the privilege of
  constructing, equipping and operating the same,  or  for  equipping  and
  operating  after  construction  by  the  city,  or  for  operating after
  construction and equipment by the city, by a notice to be printed once a
  week for two successive weeks in not less than two daily newspapers, and
  may require security from bidders for the execution of  their  bids,  if
  accepted.  Such  notice  shall describe such terminal facilities in such
  terms as the board of estimate shall deem proper, and  shall  state  the
  time  and  place  at  which  proposals  will be received and opened. All
  proposals shall undertake to equip  such  facilities,  unless  equipment
  shall  have  been provided by the city, and to maintain and operate such
  terminal facilities for a period not exceeding twenty-five  years,  with
  the  privilege,  however, of renewing such contract for a further period
  not exceeding twenty-five years upon terms to be readjusted as  provided
  in  such  contract.  Such proposals may offer to pay to the city for the
  use of such terminal facilities either (1) a fixed annual sum; or (2)  a
  share  of  gross  receipts; or (3) a share of net receipts. The board of
  estimate, or a duly appointed committee thereof,  shall  attend  at  the
  time  and place specified in such public notice, and shall publicly open
  all proposals which shall have been received, but such board  shall  not
  be  bound  to  accept any proposals so received, and may reject all such
  proposals and readvertise  for  proposals  in  the  manner  hereinbefore
  provided,  or  may accept any of such proposals as will, in the judgment
  of such board, best promote the public interest, and  award  a  contract
  accordingly.
    b.  Any  contract  for  private operation of terminal facilities shall
  contain a provision whereby the city, at any time after ten  years,  may
  terminate the same so far as it relates to the maintenance and operation
  of terminal ways, and terminal stations, and the equipment thereof, upon
  terms  to  be  fixed  in  such  contract, upon giving one year's written
  notice of its intention so to do. Upon termination by the city, pursuant
  to the privilege so reserved, the  city  shall  purchase  the  equipment
  actually  used in the operation of such terminal facilities at an amount
  agreed upon between the owner thereof and the city; or, in the event  of
  failure  to  agree, at an amount to be fixed by appraisal, each party to
  name an impartial appraiser, and the two so named to select  the  third.
  In the event of failure to agree upon a third appraiser, he or she shall
  be  named  by  the  presiding  justice  of the appellate division of the
  supreme court, first department; provided, however,  that  the  contract
  for  the  operation  of  such  terminal  facilities  may provide for the
  amortization of all or a  part  of  the  operator's  investment  out  of
  earnings,  in  which  event  the  portion  so amortized shall become the
  property of the city at the termination of the contract without  further
  payment to the operator.
    c. Any contract for private operation may provide for the construction
  of  warehouses,  factories or other buildings on land owned by the city,
  which warehouses, factories or buildings shall, during construction  and
  at  all  times thereafter, be the property of the city. The contract may
  provide for the amortization of the cost of such  warehouses,  factories
  or  buildings  out  of receipts from their operation, or out of receipts
  from the operation of all  the  terminal  facilities  included  in  such
  contract during the term thereof, and may provide for the payment by the
  city  of  any  unamortized  portion of the actual cost plus a reasonable
  contractor's profit, not to exceed fifteen per centum at the termination
  of the contract, or on the exercise of an option to  recapture  reserved
  in  the  contract.  The contract may provide for the payment to the city


  for the privilege of operating  such  warehouses,  factories,  or  other
  buildings  so constructed, either (1) a fixed annual sum; or (2) a share
  of the gross receipts; or (3) a share in the net profits.
    d. Such contract may contain any other provision not inconsistent with
  this section which the board of estimate may deem necessary or desirable
  for the protection of the interests of the city.
    e.  Notwithstanding  the  provisions  of any general or special law, a
  railroad corporation may, with the consent of  the  board  of  estimate,
  purchase,  acquire or hold any stocks or any bonds or other evidences of
  indebtedness of a corporation which, pursuant to  this  section,  enters
  into  a  contract with the city for the operation of terminal facilities
  in the boroughs of Brooklyn and Queens, or either  of  them,  and  which
  contract  provides  for  the handling over such terminal road of freight
  moved by water, or partly by rail and partly by water, and freight moved
  wholly by rail, without discrimination as between such freight moved  by
  water,  or  partly by rail and partly by water, and freight moved wholly
  by rail. The consent of such board  shall  be  granted  only  upon  such
  notice  and  after  such  hearing  as  may be prescribed under rules and
  regulations which such board is hereby authorized to adopt.