SECTIONS 40221-40224 - California Statutes

PUBLIC UTILITIES CODE

SECTION 40221-40224

40221. 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 acquired by the district.
(b) "Existing system" means any transit service or system of a
publicly or privately owned public utility situated entirely within
Orange County, or at least 75 percent of whose revenue vehicle miles
for the preceding calendar year were operated within Orange County,
and has been in operation since at least January 1, 1982.

40222. Notwithstanding any other provision of this part, before the
district may propose to 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 the service or system.

40222.5. 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.

40223. 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.

40223.5. 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.

40224. Section 851 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 has no jurisdiction with
respect thereto.