§ 44 — Modification of and changes in contracts

§ 44. Modification of and changes in contracts. a. The board of\ntransportation for and on behalf of the city, from time to time with the\nconsent, in writing, of the bondsmen or sureties of a person, who has\ncontracted with such board or its predecessors to construct, equip,\nmaintain or operate any road, may agree with such contractor upon\nchanges in and modifications of such contract, or of the plans and\nspecifications upon which such road is to be constructed, but no change\nor modifications in the plans and specifications consented to and\nauthorized pursuant to section twenty-one of this chapter shall be made\nwithout the further consent and authorization provided for in such\nsection.\n b. The board of transportation, from time to time, but only with the\napproval of the board of estimate and the mayor, may agree with railroad\ncompanies upon changes in and modifications of the terms and conditions\nof any contract under or pursuant to which any railroad, or any part\nthereof, has been or is to be constructed, equipped, maintained or\noperated, and with like approval such contract may be cancelled and\nreplaced by a new contract to include the railroads embraced in such\nexisting contract. The board of transportation may include therein\nprovision for the acquisition by the city of the railroads or any of\nthem or portions of any of them and is authorized and empowered on\nbehalf of the city to accept title thereto or control thereof and to\nprovide for the payment thereof through amortization or otherwise as the\nboard of transportation may determine.\n c. Any other provision of this chapter to the contrary\nnotwithstanding, the board of transportation shall not make any new\ncontract or modify any contract for the construction, equipment,\nmaintenance or operation of any railroad without the approval or consent\nof the board of estimate and the mayor.\n d. If any contract for construction or equipment of a railroad or\nsection thereof has been awarded and a part of the work therein required\nto be performed by the contractor has been done or is in process of\nbeing done as to a portion of the route of such road and if another\nroute for a railroad has been or shall be established by the board of\ntransportation under section twenty of this chapter and consented to as\nprovided in section twenty-one of this chapter, which, or a portion of\nwhich, in the opinion of such board should in the public interest be\nsubstituted in place of a portion of the road to be constructed or\nequipped under such contract, then the board with the consent of the\nboard of estimate and the mayor, as soon as the detailed plans therefor\nhave been prepared as prescribed in section twenty-two of this chapter,\nwithout advertising for proposals, may agree as provided in this\nsubdivision with such contractor upon changes in and modifications of\nhis contract for the purpose of making such substitution. Such agreement\nin such case may provide, in consideration, among other things, of a\nsurrender by the contractor of his right to construct or equip a\ndesignated portion of the road or section or road described in his\ncontract, that such contractor shall complete the construction or\nequipment of the remainder of the road or section described in such\ncontract and shall in place of the portion surrendered construct or\nequip a railroad or section of a railroad upon such substituted route\nand in accordance with the plans and specifications adopted therefor for\nsuch sum of money as may be provided in such modifying agreement. As\npart of the consideration of such modifying agreement, the agreement may\nalso provide that such contractor shall guarantee to the city, with\nproper and sufficient sureties, that in the event that the city shall\nenter into such modifying agreement providing for construction of such\nsubstituted route or section thereof by the contractor, the cost to the\ncity of providing for the construction of any additional section of such\nrailroad upon such substituted route in continuation of that portion\nthereof which is to be constructed by the contractor under such\nmodifying agreement, shall not be in excess of an amount specified in\nsuch modifying agreement or that if the contract for construction of any\nsuch additional section is to be awarded after advertisement for\nproposals under section seventeen of this chapter, that a responsible\nbidder for the construction thereof acceptable to the city shall be\nobtained at a price not exceeding a specified amount.\n e. If any contract for equipment, maintenance and operation of a\nrailroad has been made and part of the work of construction thereof has\nbeen done or is in process of being done, and if another route for a\nrailroad has been or shall be established by the board of transportation\nunder section twenty of this chapter and consented to as provided in\nsection twenty-one of this chapter, which, or a portion of which, in the\nopinion of the board in the public interest, should be substituted in\nplace of a portion of the road to be equipped and operated under such\ncontract, for use and operation in connection with or as part of the\nroute, a portion of which has been in part already constructed or is in\nprocess of construction, then the board with the consent of the board of\nestimate and the mayor may agree as provided in this subdivision with\nthe person having the contract for equipment, maintenance and operation\nof such railroad, upon changes and modifications of such contract. Such\nagreement in such case may provide, in consideration, among other\nthings, of the surrender by the contractor of his right to equip,\nmaintain and operate a designated portion of the railroad described in\nhis contract, that in place of the portion surrendered, he shall equip,\nmaintain and operate a railroad or portion of a railroad upon such\nsubstituted route. The rental to be received by the city under such\ncontract, as changed and modified, representing compensation to the city\nfor the use of such substituted part of such railroad operated\nthereunder necessarily need not be a portion of the income, earnings or\nprofits from the operation of the railroads combined as provided in\nsubdivision d or subdivision g of section forty of this chapter equal\nannually, if earned, to the interest and one per centum for sinking fund\nupon the amount of city bonds issued for the investment of the city in\nthe construction thereof but may be either a specified sum of money or a\nspecified part or proportion of income, earnings or profits of such\nsubstituted road, or both a sum of money and a part or proportion of\nsuch income, earnings or profits, or may be such portion of the income,\nearnings and profits of the railroads so combined as may be provided in\nsuch modified contract as rental for such substituted railroad and for\nthe other railroads of the city to be equipped, maintained and operated\nunder such contract as so modified.\n