N.Y. Rapid Transit Law § 31: Municipal construction of railroads

§ 31. Municipal construction of railroads. It shall be the duty of

the board of transportation to consider the routes, plans and

specifications, if any, previously laid out and adopted by them or their

predecessors, and for which the consents have been obtained referred to

in section twenty-one of this chapter; and either to proceed with the

construction of such railroad, and provide for the operation thereof, or

to change and modify such routes, plans or specifications in such

particulars as to such board may seem to be desirable, or from time to

time and with or without reference to former routes or plans to adopt

other or different or additional routes, plans and specifications for

such railroad. In all cases in which any such change or modification

shall be of such character as to require the consents thereto referred

to in section twenty-one of this chapter and in all cases where other or

different routes or general plans may have been so adopted, the board of

transportation shall proceed to secure the consents required to be

obtained by section twenty-one of this chapter. Prior to the time of the

final grant of any franchise under the provisions of this chapter or the

making of a contract for construction of any railroad under the

provisions of this chapter, the board of transportation shall have power

to rescind and revoke any resolution of such board or its predecessors

adopting any routes or general plan for a railroad adopted by such board

or its predecessors and, in the discretion of such board, in lieu

thereof to adopt new routes and a general plan. Every such rescindment

or revocation which shall have been made by such board of transportation

or its predecessors shall be deemed to have been lawful and authorized

by the rapid transit act, as the same was in effect on the twenty-third

day of April, nineteen hundred.

b. As soon as such consents, where necessary, shall have been obtained

for any railroad and the detailed plans and specifications have been

prepared as provided in section twenty-two of this chapter, such board

of transportation, for and in behalf of such city, may enter into a

contract with any person, which in the opinion of such board shall be

best qualified to fulfill and carry out such contract for the

construction of such road, including such sub-surface structures as such

board may include in the plans for such road under the authority of

section twenty-two of this chapter, upon the routes and in accordance

with the plans and specifications so adopted, for such sum of money, to

be raised and paid out of the treasury of such city, as provided by this

chapter, or to be contributed in part or in whole for the construction

of such road by the contractor having the contract for the equipment and

operation of such road as a consideration for the making of such

contract for equipment and operation as provided by this chapter. Such

contract for construction shall contain such terms and conditions, not

inconsistent with the aforesaid plans and specifications, as such board

shall determine to be best for the public interests. The sum of money

to be paid for the construction of such road shall be separately stated

in the contract from the sum to be paid for any sub-surface structures,

the construction of which is provided for in such contract. Such board,

in any case, may contract for the construction of the whole road, or all

the roads provided for by such plans in a single contract, or, by

separate contracts, executed from time to time, or at the same time,

with one or more such persons, may provide for the construction of a

part of such road or for the construction at first of two or more tracks

over a part of such road and afterwards of one or more additional tracks

over a part of such road as the necessities of such city and the

increase of its population or the advantageous and economical

performance of the work in the judgment of such board may require. In

the alternative such board, in its discretion by separate contracts

executed from time to time or at the same time, may contract with one or

more persons for the performance of any kind of work or any portion of

the work or for the furnishing of any material or for the performance of

any labor necessary for or incidental to the construction of such road.

In any case where any such contract which shall have been entered into

provides that upon the happening of any event or default specified in

such contract such board shall have the right and be entitled to take

over and perform or complete or contract for the performance or

completion of the work embraced in such contract or any part of such

work, such board, upon the happening of any such event or default so

specified in such contract, with the approval of the board of estimate

and the mayor, also may employ such persons and purchase or hire such

plant, tools, machinery, supplies and materials as may be necessary, and

itself perform or complete the work embraced in such contract or any

part of such work as in its judgment the public interests require.

c. The board of transportation, in the contract for a part of any such

railroad, also may insert a provision that at a future time, upon the

requirement of the board, the contractor shall construct the remainder

or any part of the remainder of such road, as the growth of population

or the interests of the city, in the judgment of the board, may require.

Such board may insert in such contract provision for a method for fixing

and ascertaining at such future time the amount to be paid to the

contractor for such additional construction, and to the end of such

ascertainment may provide for arbitration or for determination by court

of the amount of such compensation, or of any other details of

construction which shall not be prescribed in the contract, but which

shall be deemed necessary or convenient by such board. If the public

interest, in the opinion of the board, shall justify the provision, any

such contract may provide that the construction of any section or

portion of the railroad included in such contract, with the consent of

such board, may be suspended during the term of operation of the

railroad as provided in this section, or any part of such term. During

such term or part of term there shall be available for use, in lieu of

such portion of the road, a railroad or a portion or section thereof,

which, with the railroad or portion of railroad constructed under such

contract, shall form a continuous and convenient route.

d. Any such contract may be made for the construction of such road in

sections, or for the construction of any section thereof. Except as

otherwise provided in this chapter, every such contract shall specify

when the construction of the railroad or the section thereof included

therein shall be commenced in each case, and, in each case, the date of

completion. The board of transportation may by any such contract

determine when and how the work of construction of the railroad included

therein shall proceed. The board may also provide for the equipment at

public expense of such railroad in connection with the construction

thereof, and may include in any contract for construction authorized by

this chapter provision for the equipment, or any part thereof, of such

railroad, but may make a separate contract for the whole or any part of

such equipment with the constructing contractor or any other responsible

persons. Any such contract, in lieu of requiring the contractor to

provide equipment or any part thereof for generation or furnishing of

motive power, may authorize the contractor to enter into a subcontract

for purchase and delivery as required of motive power for operation of

such railroad, provided such subcontract, as to the parties thereto, the

sureties thereon and the terms thereof, shall be first approved by the

board. In the alternative such contract may provide that the

construction or completion of equipment, or any portion thereof, for

generation or furnishing of motive power included in such contract, with

the consent of the board, may be suspended during a period designated,

provided that during such period there shall be available for use when

required, in lieu of such equipment, motive power furnished to the

contractor under and pursuant to the terms of a contract for the

purchase of power, which contract shall, as to the parties thereto, the

sureties thereon and the terms thereof, be first approved by the board.

In case of the expiration or termination, of the contract for equipment,

maintenance and operation of such road, as provided in this chapter, any

subcontract for the furnishing of power may be terminated or taken over

by the city without making any allowance or paying any amount to the

contractor for or on account of any unexpired term of such subcontract.

e. Any railroad constructed by and at the expense of the city shall be

and remain the absolute property of the city, and shall be and be deemed

to be a part of the public streets of the city, to be used and enjoyed

by the public subject to such reasonable rules and regulations as may be

imposed and provided for by the board of transportation.