§ 1203 — Transfer of transit facilities by the city to the authority

New York § 1203

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 9: New York City Transit Authority
• Art. 5: Public Utility Authorities

Text

§ 1203. Transfer of transit facilities by the city to the authority.\n1. a. On or before June first, nineteen hundred fifty-three, the city\nmay, by resolution of the board of estimate or by instruments authorized\nby any such resolution, enter into an agreement with the authority for\nthe transfer to the authority, for use in the execution of its corporate\npurposes, of the transit facilities now owned or hereafter acquired or\nconstructed by the city and any other materials, supplies and property\nincidental to or necessary for the operation thereof. Any such agreement\nshall provide for transfer of such facilities by deed, lease, license or\nother arrangement, provided the term thereof shall not be less than ten\nyears and authorize the authority to take jurisdiction, control,\npossession and supervision of such transit facilities, materials,\nsupplies and property on or before June fifteenth, nineteen hundred\nfifty-three.\n b. (i) Such agreement shall provide that capital costs of a nature not\nheretofore charged as operating expenses shall be paid by the city, or\nat the option of the authority may be paid in the first instance by the\nauthority but in such event, the authority shall be entitled to recover\nfrom the city the amount of such costs; provided, however, that the\ntotal amount of such capital costs which the authority may incur without\nthe approval of the mayor in any city fiscal year shall not exceed five\nmillion dollars and that no other such capital costs shall be incurred\nby the authority without such approval. Where the city is required to\nreimburse the authority for the amount of any capital costs pursuant to\nsuch agreement, serial bonds or capital notes may be issued by the city,\npursuant to the local finance law, to finance any such reimbursement in\nthe same manner and to the same extent as if such costs were to be paid\ndirectly by the city.\n The authority shall submit annually to the city planning commission\nand the mayor of the city on or before October fifteenth in each year an\nestimate of all such capital costs for inclusion in the capital budget\nof the city.\n (ii) From and after March first, nineteen hundred sixty-eight, the\nauthority shall also have the right to incur capital costs of such\nnature in its own name to the extent that capital funds are available to\nit for expenditures of such nature pursuant to the provisions of section\ntwelve hundred nineteen-a of this chapter or of any other provision of\nlaw, which capital costs shall not be payable by the city; provided,\nhowever, that no project to be financed by the use of such capital funds\nwhich is estimated by the authority to involve an expenditure in excess\nof one million dollars shall be commenced unless the mayor and the board\nof estimate shall each have been notified in writing by the authority of\nthe intent of the authority to undertake such project and of the nature\nthereof. No such project shall be commenced if and to the extent that\neither the mayor or a majority in voting power of the members of the\nboard of estimate shall find that it is incompatible with sound planning\nfor the development or redevelopment of the city, provided such finding,\ntogether with the reasons therefor, is set forth in a writing delivered\nto the authority within thirty days of the receipt by the mayor or the\nboard of estimate, as the case may be, of the notification of the\nauthority relating to such project. If any such project is not so\ndisapproved, it may nevertheless not be commenced unless and until the\ncity shall have been given an opportunity to include the same in the\ncapital budget of the city for the first fiscal year of the city\ncommencing not less than six months after receipt of such notification.\nIf and to the extent that such project is included in such capital\nbudget, the authority may not thereafter incur capital costs for the\nsame in its own name. If or to the extent such project is not included\nin such capital budget, the authority may incur capital costs for the\nsame in its own name. The operation of sections twenty, twenty-one and\ntwenty-two of the rapid transit law shall be suspended with respect to\nany project financed with the capital funds referred to in this\nsubparagraph.\n c. Such agreement shall provide that the authority shall have the use\nand possession of all property owned or leased by the city and used or\noccupied by the board of transportation on March fifteenth, nineteen\nhundred fifty-three in connection with or incidental to the operation of\nsuch transit facilities.\n d. No provision in such agreement shall purport to limit or restrict\nor have the effect of limiting or restricting, the power granted the\nauthority to manage, control or direct the maintenance and operation of\nsuch transit facilities or the fares or service thereof.\n 2. Such agreement shall provide for payment by the city of:\n a. Capital costs for projects connected with such transit facilities\nincluded in the capital budget of the city for periods prior to December\nthirty-first, nineteen hundred fifty-three, except that the authority\nshall not require payment of, and the city shall not pay, capital costs\nof such projects without prior approval of the board of estimate.\n b. Liabilities of the city or the board of transportation for:\n (1) Pension or retirement contributions on behalf of persons who were\nemployed on transit facilities heretofore acquired by the city.\n (2) Contributions to the New York City employees' retirement system on\nbehalf of officers or employees whose compensation has been paid out of\nthe operating revenues of the board of transportation of the city, which\ncontributions have or shall hereafter become due or payable for fiscal\nyears of the city ending on or before June thirtieth, nineteen hundred\nfifty-three.\n c. All other liabilities of the board of transportation on the date of\nthe conveyance.\n d. Ten million dollars derived from any funds of the city (but not\nfrom borrowed funds), or from the operating fund of the board of\ntransportation at the time of such transfer, for use by the authority as\ninitial working capital (1) in partial consideration of the acceptance\nby the authority of the initial transfer, in which case the sum shall\nnot be repaid, or (2) as a loan, in which case such sum shall be repaid\nin not less than five nor more than ten equal annual installments,\ncommencing July first, nineteen hundred fifty-four.\n 3. a. Such agreement may contain provisions relating to the use and\noccupancy by the authority of real property (in addition to that\ntransferred pursuant to subdivision one of this section) now or\nhereafter owned or leased by the city, on such terms as may be mutually\nagreed upon by the city and the authority, and may provide for or\nauthorize surrenders to the city of property no longer required by the\nauthority.\n b. The authority shall be entitled to utilize the officers, employees,\nagents, facilities and services of the city on the same terms and\nconditions as were applicable to or provided to the board of\ntransportation on March fifteenth, nineteen hundred fifty-three.\n 4. The city and the authority are hereby authorized and empowered to\nmake or enter into any contracts, agreements, deeds, leases, conveyances\nor other instruments as may be necessary or appropriate to effectuate\nthe purposes of this title and they shall have complete power and\nauthority to do and to authorize the doing of all things, incidental,\ndesirable or necessary to implement the provisions of this section.\n 5. Upon the filing by the authority with the clerk of the city and the\nsecretary of state of a copy of the instruments or documents\neffectuating the transfer, the authority shall take possession and\ncontrol of the transit facilities and other property transferred thereby\ntogether with all contracts, books, maps, plans, papers and records of\nor in the possession of the board of transportation of whatever\ndescription, incidental to or necessary for the operation of the\nfacilities transferred by such agreement or the performance of the\nduties of the authority as provided by this title.\n 6. When in the discretion of the authority there is available a supply\nof electric power adequate for the efficient and proper operation of the\ntransit facilities either from a private utility or otherwise at rates\nand under circumstances deemed by the authority to be reasonable, the\nauthority may make such provisions for the utilization of such electric\npower as it may see fit and surrender to the city the power plants\npresently leased by the authority from the city pursuant to the\nprovisions of this title. The foregoing provisions of this subdivision\nshall be applicable only to actions of the authority undertaken prior to\nFebruary first, nineteen hundred and sixty.\n 7. Notwithstanding the aforesaid provisions of this section the city\nmay transfer to the authority title and ownership to the materials,\nsupplies and property incidental to or necessary for the operation of\nthe transit facilities which were heretofore leased to the authority,\nand the authority and the city may enter into an agreement, modifying\nthe agreement of lease dated June first, nineteen hundred fifty-three,\nas amended, renewed and supplemented, to provide for such transfer of\ntitle and ownership and containing such further terms and conditions,\nnot inconsistent with law, as may be agreed upon between the parties.\n