Source: https://www.infrainsightblog.com/la-metro-pursues-independent-p3-authority-abx-1-12
Timestamp: 2019-11-22 00:18:14
Document Index: 554982151

Matched Legal Cases: ['§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143']

LA Metro Pursues Independent P3 Authority: ABX 1-12: Nossaman LLP
By Andrée Blais, Fredric Kessler on 09.09.2015
Los Angeles County Metropolitan Transportation Authority (LA Metro) is pursuing new public-private partnership (P3) legislation, Assembly bill ABX 1-12 (Bill 12). Bill 12, introduced and read for the first time on August 26, 2015 at the California extraordinary session on transportation, would give LA Metro greater flexibility and autonomy to procure and finance transportation infrastructure in the LA Metro region.
LA Metro currently has authority under Section 143 of the Streets & Highway Code (Section 143) to deliver transportation projects using a P3 model with the use of comprehensive development lease agreements.[1] This authority will lapse on December 31, 2016, unless this sunset is lifted or extended by the California legislature.[2] Governor Brown has proposed an extension through 2027.
Bill 12 would expand the scope of eligible projects to better align with LA Metro’s broad responsibility for transportation infrastructure within Los Angeles County. It includes rights-of-way, high-occupancy toll lanes, rail lines, monorails, bus lines, stations, terminals, tunnels, parking lots, air rights, land rights, development rights, entrances and exits, and any other facilities together with any physical structures necessary for, incidental to, or convenient for, the access of persons and vehicles to those facilities.[4] This broad scope of eligible projects can be contrasted with Section 143 which defines transportation projects as highway, public street, rail, or related facilities supplemental to existing facilities currently owned and operated by Caltrans or regional transportation agencies.[5]
Bill 12 would authorize LA Metro to pursue P3 models without seeking approval from the California Transportation Commission (the CTC). Section 143, on the other hand, requires that potential P3 projects be nominated as candidates for review and approval by the CTC based on satisfaction of certain objectives,[6] and further provides that the CTC will establish evaluation criteria for each project.[7] CTC guidelines and practice require submission of an extensive project proposal report, which consumes considerable time and resources to prepare. Because LA Metro primarily uses local sales tax revenue to fund capital outlays for its projects, CTC supervision of its decisions to fund P3 projects seems out of place.
[1] Sts. & Hy. Code, § 143, subd. (c)(1).
[2] Sts. & Hy. Code, § 143, subd. (t).
[3] LA Metro and Caltrans’ Accelerated Regional Transportation Improvements (ARTI) project began in 2012. It was the first project selected for further evaluation under the 2009 improvements to Section 143. On April 15, 2014, well after the ARTI procurement had begun, Caltrans and LA Metro notified shortlisted proposers that the ARTI procurement was cancelled.
[4] ABX 1-12, subd. (b)(1)(A).
[5] Sts. & Hy. Code, § 143, subd. (a)(6).
[6] Sts. & Hy. Code, § 143, subd. (c)(2).
[7] Sts. & Hy. Code, § 143, subd. (g)(1)(C).
[8] ABX 1-12, subd. (e).
[9] Sts. & Hy. Code, § 143, subd. (g)(1)(C).
[10] ABX 1-12, subd. (f).
[11] ABX 1-12, subd. (b)(1)(a).
[12] Sts. & Hy. Code, § 143, subd. (q).
[13] Sts. & Hy. Code, § 143, subd. (j)(1).
[14] Sts. & Hy. Code, § 143, subd. (j)(3).
[15] Sts. & Hy. Code, § 143, subd. (j)(1).
[16] ABX 1-12, subd. (f).
[17] ABX 1-12, subd. (c)(1).
[18] ABX 1-12, subd. (c)(2).
[19] Sts. & Hy. Code, § 143, subd. (g)(1)(e).
Tags: ABX 1-12, LA Metro