Section 363. Franchises  


Latest version.
  • 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.