Section 41. Contract for maintenance and operation

a. If in the opinion of
  the  board  of  estimate  and  the  mayor, a contract for the equipment,
  maintenance and operation as provided for in the preceding section shall
  be inexpedient, impracticable or prejudical to the public interest,  the
  board  of transportation, with the approval of the board of estimate and
  the mayor, may equip such road in whole or in part,  or  purchase  power
  for  operation  thereof,  for  and  at  the  public expense, by contract
  therefor subject to the provisions of section seventeen of this chapter,
  and enter into a contract with any person, who or which in  the  opinion
  of  such  board of transportation shall be best qualified to fulfill and
  carry out such contract for the maintenance and operation of  such  road
  for  a term of not to exceed ten years to be specified in such contract.
  The provisions of the foregoing sections in respect of contracts for the
  equipment, maintenance and operation of such road shall  apply  to  such
  contract  for  maintenance  and  operation so far as such provisions are
  pertinent and applicable thereto except that the renewal or renewals  of
  such  contract  provided  for  therein shall not exceed ten years in the
  aggregate.
    b. Every grant or contract made under the provisions of this  chapter,
  as  part  of which the city shall have a right to terminate any right or
  franchise or any contract for maintenance and operation of any railroad,
  shall provide that if at any time in ascertaining the amount to be  paid
  by  the  city as a condition of such termination or at the expiration of
  the full term, it shall be necessary that  a  valuation  of  any  plant,
  property,  equipment,  construction  or  any  investment in any thereof,
  shall be determined, such valuation shall in  default  of  agreement  be
  determined  by arbitration or by the court. Every such grant or contract
  shall also  make  provision  to  assure  supervision  by  the  board  of
  transportation  of  all  operations of such grantee or contractor in and
  about such enterprise and for keeping and for access to and examination,
  use and production of any and all books, records and memoranda  of  such
  operations, not only of the grantee or contractor but of any contractor,
  sub-contractor,  banker or person furnishing money, material or supplies
  directly or indirectly to such  enterprise,  to  the  extent  that  such
  books,  records and memoranda have to do therewith, and for ascertaining
  the cost to the grantee or contractor and the value  of  any  equipment,
  property  or  construction  furnished  or done pursuant to such grant or
  contract, including permanent additions to  construction  from  time  to
  time  and  for a method of determining the amount of such cost forthwith
  upon the furnishing or completion of the same by arbitration or  by  the
  court  in  default of an agreement upon the amount thereof. The grant or
  contract may provide that if the amounts to be paid to  the  grantee  or
  contractor  upon  any  such  termination  shall  not  have  been finally
  determined or paid prior to or at the time when the termination is under
  such notice given to take effect the title to and right of possession of
  the  property,  and  the  right  of  possession  of  such  railroad  may
  nevertheless  pass to the city or to a new contractor, and that the city
  or such new contractor having given proper and sufficient sureties shall
  pay to the contractor the amount so determined, with interest  from  the
  time aforesaid.
    c.  Every  grant or contract made under the provisions of this chapter
  by the terms of which the city in lieu of rental shall be entitled to  a
  portion  of  income  or  increase derived from the enterprise shall make
  provision for definition and determination from  time  to  time  of  the
  items  to  be included in operating expenses, taxes, payments to reserve
  and amortization funds and for the percentages  or  amounts  to  be  set
  aside  therefor  and  for  interest upon construction cost. The board of
  transportation shall prescribe in the grant or  contract  a  period  for

  amortization  by  the  grantee or contractor of the actual cost of plant
  and property other than equipment, or actual cost to the  contractor  of
  the  construction  of  such  road and the period so prescribed shall end
  with  the  term  of the grant. Any and all sums of money received by the
  city from or under any grant or contract made under  the  provisions  of
  the  rapid  transit  act  or this chapter, over and above such sum as is
  required by law to be paid into a sinking fund to meet  the  payment  of
  interest  or  principal  on  city  bonds  issued  for  construction  and
  equipment of any railroad pursuant to any such contract, and except  any
  sum of money that may be contributed toward the construction of any road
  by the contractor having the contract for the equipment and operation of
  such  road,  shall  be  kept  separate  and apart from any and all other
  moneys of such city and paid into a  fund  to  be  known  as  the  rapid
  transit  fund,  and shall be applied under the direction of the board of
  estimate  with  the  approval  of  the  mayor  only  to  or  toward  the
  construction  of  railroads,  or  the  purchase of plant and property or
  equipment of railroads, pursuant to the provisions of this  chapter,  or
  to  deficiencies  in  the  operation or rental of railroads owned by the
  city, or in the operation of railroads owned and operated  by  the  city
  pursuant to this chapter.
    d.  Unless otherwise provided by law the board of transportation, with
  the approval of the board of estimate and  the  mayor,  shall  have  and
  exercise the powers, rights and privileges reserved or given to the city
  to  terminate  any  right,  privilege,  franchise, authority or contract
  granted or entered into, or which may be exercised under the  provisions
  of this chapter, and may do and perform any and all things requisite and
  necessary to any such termination.