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SECTION 20360-20369

20360.  This article applies to contracts by the Los Angeles County
Transportation Commission for rail transit facilities.

20361.  As used in this article, the following terms have the
definitions provided:
   (a)  "Commission" means the Los Angeles County Transportation
   (b) "Department" means the Department of Transportation.
   (c) "Protection from competition" means any contractual provision
that is necessary to protect the project revenues required to repay
the costs to study, plan, design, build, acquire, install, operate,
and maintain rail transit systems and related facilities, and which
will not unreasonably inhibit or prohibit the development of
additional public transportation systems and facilities.

20362.  (a) Notwithstanding any other provision of law, the
commission may solicit proposals from, and negotiate and enter into
agreements with, private entities for the study, planning, design,
development, acquisition, installation, construction, leasing, and
warranty of rail transit systems that implement advanced rail transit
technology and related works of improvements, including passenger
loading or intermodal facilities.
   (b) A procurement pursuant to this article, or a procurement for
the purposes specified in this article commenced prior to January 1,
1992, is valid if all of the following requirements are met:
   (1) The commission shall make a finding by a two-thirds vote of
all of its members that a specific procurement is in the best
interests of the public.
   (2) A request for proposals shall identify all significant
evaluation factors.
   (3) The commission shall establish reasonable procedures for
technical evaluation of the proposals received and selection of
proposals for the purposes of negotiations and entering into an
   (4)  The commission may negotiate and enter into agreements with
proposers whose projects the commission determines meet the
objectives of the requests for proposals.  The decisions of the
commission shall be discretionary, shall be based on a finding that
the decisions made are in the best interest of the public, and shall
be final.
   (5) The commission shall conduct noticed public hearings, as
   (A) Prior to selecting a proposal or proposals for negotiation,
hear public comments on and objections to the proposals received.
Following consideration of those public comments and objections, the
commission and shall accept, reject, or accept with conditions a
proposal or proposals for negotiation of a proposed agreement; and
   (B) Subsequent to selecting a proposal or proposals and prior to
entering into an agreement, hear public comments on and objections to
the terms and conditions of the proposed agreement.  Following
consideration of those public comments and objections, the commission
shall approve, disapprove, or approve with conditions the proposed
agreement or agreements.
   (c) The commission shall make every effort to encourage the
production in the Los Angeles area of rail transit equipment and
materials procured pursuant to this article, unless federal funds are
used for development of the rail transit system, in which case the
commission shall encourage that local production to the extent
allowed by federal law.

20363.  For purposes of facilitating these projects, the agreements
may include provisions for the lease of facilities, rights-of-way,
and airspace, exercise of the power of eminent domain to facilitate
the purposes of the agreements, the granting of development rights
and opportunities, the granting of necessary easements and rights of
access, the issuance of permits and other authorizations, protection
from competition, the sharing of costs and liabilities, remedies in
the event of default of either of the parties, granting of other
contractual and real property rights, and other provisions determined
necessary to ensure the financing, development, and operation of
feasible facilities.

20364.  (a)  The commission may exercise any power it possesses to
facilitate the implementation of rail transit systems and related
facilities pursuant to this article.
   (b) Any agreement for the operation of rail transit systems
constructed pursuant to this article shall be consistent with
applicable law.

20365.  (a) The commission and the department may enter into
agreements with each other that define the responsibilities of each
party in implementing the program pursuant to this article.  The
department may exercise any power it possesses to facilitate the
implementation of, and use of rights-of-way for, rail transit systems
and related facilities pursuant to this article.
   (b) At the request of the commission, the department shall lease
to the commission for up to 99 years, pursuant to subdivision (c),
and the commission may sublease to third parties in accordance with
this article, the use of areas above or below that portion of
existing state highways and any portion other than the traveled
portion of the right-of-way of state highways, to be directly used
for rail transit systems, intermodal facilities, and related
commercial development, so long as the improvements are feasible from
an engineering standpoint, in conformity with established safety
design standards, not in conflict with improvements to the affected
state highway the department reasonably contemplated at the time of
the lease, consistent with good ecological and environmental
planning, and not in conflict with the zoning regulations of the
local government concerned.
   (c) The commission shall pay to the department one dollar ($1) per
year for 35 years in consideration for the lease.  Thereafter, the
commission shall pay to the department an amount equal to 50 percent
of the fair market value of the remainder of the lease.
   (d) The revenues the commission receives from any sublease shall
reflect a fair market return over the term of the sublease, giving
consideration to the improvements, dedications, fees, and other
contributions the sublessee agrees to make for the rail transit
system, intermodal facilities and other public facilities, and shall
be deposited in a special fund, kept separate and apart from other
funds, and used solely to pay or reimburse the commission for all
costs it has incurred or will incur in connection with the
development, operation, and maintenance of the rail transit system to
which the sublease is related.  However, if revenues exceed those
costs and an adequate reserve for anticipated future costs, the
department shall be entitled to the excess revenues.

20366.  Projects authorized by this article shall do all of the
   (a) Provide an opportunity to utilize advanced rail transit
   (b) Retain for the commission the authority to establish fare
   (c) Require no funding from the transactions and use tax revenues
of the commission or from state funds directly for construction of
rail transit systems and related facilities during the construction
period of the rail transit system.  However, nothing in this
subdivision precludes the use or commitment of funds in connection
with any guaranty, insurance policy, letter of credit agreement, or
other credit enhancement or liquidity arrangement issued by the
commission for the payment of interest, principal, and premiums on
any loan, lease, bond, certificate of participation or other
obligation, or evidence of indebtedness incurred in connection with
the construction of the rail transit system and related facilities.
   (d) In the County of Los Angeles, include a system linking the Los
Angeles International Airport with the Palmdale Regional Airport.
   (e) Provide new service to commuters and an economic benefit to
the public.

20367.  All contracts entered into pursuant to this article shall
include a requirement that the contractor exercise good faith efforts
to achieve the disadvantaged business enterprise participation goals
to be established for each contract by the commission in accordance
with that agency's  disadvantaged business enterprise program.  The
overall participation goal for the total dollar value of contracts
awarded pursuant to this article shall be not less than 20 percent
for disadvantaged business enterprises.

20368.  A project constructed pursuant to this article is a public
works project for purposes of Section 1720 of the Labor Code.

20369.  Construction or operation of a project may require the
relocation, replacement, or alteration of facilities of another
public agency or private owner.  The costs of that relocation,
replacement, or alteration shall be borne by the commission and the
facility owner in the same manner and proportion as they would be
borne by the department and a facility owner with respect to state
highways pursuant to Sections 680 and 700 to 711, inclusive, of the
Streets and Highways Code.

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