Tennessee § 54-6-110 - Comprehensive agreement prior to development, redevelopment, or operation of transportation facility.

§ 54-6-110. Comprehensive agreement prior to development, redevelopment, or operation of transportation facility.

Prior to developing, redeveloping, or operating the qualifying transportation facility, the eligible private entity shall enter into a comprehensive agreement with the responsible public entity. The comprehensive agreement shall provide for: Delivery of performance and payment bonds that comply with § 54-5-119(a) or letters of credit in connection with any development or redevelopment of the qualifying transportation facility, and bonds, letters of credit, or other forms of security for any operation of the qualifying transportation facility, in the forms and amounts satisfactory to the responsible public entity; Review of plans for the development, redevelopment, and operation of the qualifying transportation facility by the responsible public entity and approval by the responsible public entity if the plans conform to the standards of the responsible public entity; Inspection of development, redevelopment, or operation of the qualifying transportation facility by the responsible public entity to ensure that the development, redevelopment, or operation conforms to the engineering and other standards acceptable to the responsible public entity; Maintenance by the private entity of a policy or policies of public liability insurance of which copies shall be filed with the responsible public entity accompanied by proofs of coverage, or self-insurance, in such form and amount satisfactory to the responsible public entity and reasonably sufficient to insure coverage of tort liability to the public and employees and to enable the continued operation of the qualifying transportation facility; Monitoring of the maintenance practices of the private entity by the responsible public entity and the taking of such actions as the responsible public entity finds appropriate to ensure that the qualifying transportation facility is properly maintained; Filing of appropriate financial statements in a form acceptable to the responsible public entity on a periodic basis; The date of termination of the private entity's authority and duties under this chapter and dedication to the appropriate public entity; Any such user fees as may be established by agreement of the parties; Details on the payment mechanism and performance requirements; and The duties of the private entity under this chapter. The comprehensive agreement may contain: Other terms and conditions that the responsible public entity determines serve the public purpose of this chapter and to which the private entity and the responsible public entity mutually agree, including provisions regarding unavoidable delays or provisions providing for a loan of public funds for the development, redevelopment, or operation of one (1) or more qualifying transportation facilities; Provisions for the development, redevelopment, or operation of phases or segments of the qualifying transportation facility; Provisions under which the responsible public entity agrees to provide notice of default and cure rights for the benefit of the private entity and the persons specified in the agreement as providing financing for the qualifying transportation facility; Reimbursement to be paid to the responsible public entity for its cost to provide the services performed by the responsible public entity; Guaranteed cost and completion guarantees related to the development, redevelopment, and operation of the qualified transportation facility and payment of damages or election to forgo availability payments for failure to meet the completion guarantee; and The process for potential sharing or distributing of any earnings in excess of the maximum rate of return as negotiated in the comprehensive agreement. Any changes in the terms of the comprehensive agreement, as may be agreed upon by the parties, shall be added to the comprehensive agreement by written amendment. Notwithstanding this chapter to the contrary, a responsible public entity may enter into a comprehensive agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so. Acts 2016, ch. 975, § 1. Code Commission Notes. Acts 2016, ch. 975, § 1 enacted a new chapter 23, but the chapter has been redesignated as chapter 6, by authority of the Code Commission. Compiler's Notes. Acts 2016, ch. 975, § 2 provided that the commissioner of transportation is authorized to promulgate rules to effectuate the purposes of this act. All such rules shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Effective Dates. Acts 2016, ch. 975, § 4. October 1, 2016; provided that for the purpose of promulgating rules, the act took effect on April 27, 2016.