Article 6. Existing Systems of California Public Utilities Code >> Division 10. >> Part 13. >> Chapter 5. >> Article 6.
Notwithstanding any other provision of this part, before
the district may establish any transit service or system which may at
any time divert, lessen, or compete for the patronage or revenues of
any existing system, the district shall give a written notice to the
public utility which is operating the existing system. The written
notice shall describe the transit service or system which the
district proposes to establish and shall state the time within which
the district proposes to establish such service or system.
The district shall not establish the proposed service or
system, or maintain and operate the service or system, until it has
completed the purchase of the existing system or any part thereof.
The purchase price to be paid for the existing system, or
any portion thereof to be purchased, shall be the reproduction cost
new, including going concern value, at the date upon which the
district commences negotiations for the purchase of the existing
system, or the portion of the existing system, less depreciation,
including wear, tear, and obsolescence, if any.
The district and public utility operating the existing
system may agree upon the purchase price or they may agree that the
purchase price is to be established by arbitration and upon the
method of naming arbitrators and the method of conducting such
Section 851 shall not apply to any contract for sale or
sale of an existing system, or any portion thereof, pursuant to this
article, and the Public Utilities Commission shall have no
jurisdiction with respect thereto.