New York Franchises.
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§ 363. Franchises. a. Franchises shall be awarded only in accordance
with the provisions of an authorizing resolution adopted by the council
pursuant to the provisions of this section.
b. An initial determination of the need for franchises of a
particular type shall be made by the head of the agency designated by
the mayor as having the primary expertise and responsibility in the
policy area covered by that type of franchise. Upon making such a
determination, such agency, with the advice of the corporation counsel
and such other agencies as the mayor shall determine, shall prepare a
proposed authorizing resolution for that type of franchise and shall
submit such proposed authorizing resolution to the mayor. Such a
proposed authorizing resolution shall set forth the nature of the
franchise or franchises to be granted, the public service to be
provided, the terms and conditions of the franchise or franchises,
including any subsidies that will be given to a franchisee, the method
by which proposals will be solicited for the franchise or franchises and
the criteria to be used in evaluating the proposals submitted in
response to such a solicitation.
c. The mayor may submit such a proposed authorizing resolution to the
council. Promptly upon submission to the council, the text of any such
authorizing resolution shall be published in the City Record. Within
ninety days of receiving such a proposed resolution, the council or a
committee of the council shall hold a public hearing on such resolution.
The council may approve, approve with modifications or disapprove such
resolution by majority vote. Any action of the council approving a
modification to a proposed authorizing resolution or disapproving a
proposed authorizing resolution shall be subject to the disapproval of
the mayor in the same manner as a local law which is passed by the
council, and any such disapproval shall be subject to reconsideration,
repassing and adoption, notwithstanding the objections of the mayor, in
the same manner as a local law which is disapproved by the mayor. The
council may on its own initiative amend an authorizing resolution. The
procedure for council review and approval of such a proposed amendment
shall be the same as for an authorizing resolution.
d. No authorizing resolution or other action of the council may
provide for any involvement by the council or any member of the council
in the selection of a franchisee pursuant to such resolution.
e. Pursuant to an authorizing resolution adopted by the council, the
responsible agency may issue one or more requests for proposals or other
solicitations of proposals, provided that (1) the corporation counsel
shall have determined that the request for proposals is consistent with
the provisions of the authorizing resolution and (2) no such request or
solicitation shall be issued unless either the department of city
planning has determined that the proposed franchise would not have land
use impacts or implications or such request or solicitation has been
reviewed and approved pursuant to section one hundred ninety-seven-c and
section one hundred ninety-seven-d. A community board may waive a
public hearing and the preparation of a written recommendation with
respect to any such request for proposals or solicitation which in its
judgment does not involve a substantial land use interest. Any such
request for proposals or solicitation issued in accordance with this
subdivision shall set forth the criteria and procedures to be utilized
in evaluating the proposals submitted in response to such request or
solicitation.
f. The selection of a franchisee shall be in accordance with the
provisions of the authorizing resolution covering franchises of the type
involved. Each such selection and each franchise agreement shall be
subject to the review and approval of the franchise and concession
review committee pursuant to sections three hundred seventy-one, three
hundred seventy-two and three hundred seventy-three.
g. Nothing in this section shall preclude any agency, prior to
proposing an authorizing resolution, from issuing one or more requests
for information or other solicitations of information regarding the
availability of potential franchisees with expertise in the subject
matter of a proposed type of franchise, suggestions regarding the
appropriate terms and conditions which should be contained in an
authorizing resolution for that type of franchise or any other
information which would assist the agency in determining how to proceed
with regard to the public service involved.
h. All franchises shall be consistent with the following
requirements:
(1) Every grant of a franchise or modification thereof must be by
written agreement approved by the franchise and concession review
committee and executed by the responsible agency under the authority of
an authorizing resolution adopted by the council in accordance with the
provisions of this chapter.
(2) No such agreement shall be for a longer period than twenty-five
years except that in the case of a tunnel railroad it may be for a
period not exceeding fifty years.
(3) The agreement may, at the option of the city, provide for giving
to the grantee the right of renewals not exceeding in the aggregate
twenty-five years on a fair redetermination of the compensation to the
city to be made upon standards and methods as therein specified.
(4) At the termination of such agreement all the rights or property
of the grantee in the inalienable property of the city to which the
franchise relates shall cease without compensation.
(5) Any such agreement may provide that upon its termination the
property, plant and equipment of the grantee shall, to the extent
therein specified, thereupon be and become the property of the city,
either without compensation to the grantee or on payment to the grantee
of the fair value thereof as property, to be determined as provided in
the contract, but excluding any value derived from the franchise. The
city shall have the option either to take and operate on its own account
the property, plant and equipment when so acquired, or to lease the same
for a term not exceeding twenty years or to require that the property of
the city be restored to its condition prior to the granting of the
franchise.
(6) Every agreement granting a franchise for the performance of any
public service shall contain an agreement by the grantee to recognize
the right of its employees to bargain collectively through
representatives of their own choosing, and at all times to recognize and
deal with the representatives duly designated or selected by the
majority of its employees for the purpose of collective bargaining in
respect to rates of pay, wages, hours of employment or other conditions
of employment and not to dominate, interfere with or participate in the
management or control of or give financial support to any union or
association of its employees. This subdivision shall not apply to a
contract providing for a modification or amendment of or extension of
service under a franchise not containing a similar provision, provided
that the term of such franchise is not extended thereby.