Chapter 6.5. Existing Systems of California Public Utilities Code >> Division 10. >> Part 10. >> Chapter 6.5.
As used in this chapter:
(a) "Establish" includes establish, construct, complete, acquire,
extend or reroute. It does not, however, include the maintenance and
operation of any existing system by the district.
(b) "Existing system" means any transit service or system of a
publicly or privately owned public utility situated entirely within
the district or at least 75 percent of whose revenue vehicle miles
for the preceding calendar year were operated within the district.
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
offered to purchase the buses and such other facilities of the
existing system as it will have need of and use for, and such offer
has either been rejected or the purchase completed.
The purchase price to be paid for the existing system, or
that part thereof which the district desires to purchase, shall be
the reasonable market value of the buses and other facilities of the
existing system on the date that the district commences negotiations
for such purchase.
The district and the 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
arbitration. If they do not, the purchase price may be fixed and
judgment entered thereon in a suit brought either by the public
utility or the district in the superior court in and for the county
in which is located that portion of the existing system to be
acquired by the district which has the highest value.
Section 851 of the Public Utilities Code does not apply to
any contract for sale or sale of an existing system, or any portion
thereof, pursuant to this chapter, and the Public Utilities
Commission shall have no jurisdiction with respect thereto.