Code of the District of Columbia

§ 2–273.06. Public-private partnership agreements.

(a) After selecting a solicited or unsolicited proposal for a public-private partnership project, the Office or a designated public entity shall enter into a public-private partnership agreement for a qualified project with the selected private entity or entities.

(b) A public-private partnership agreement approved and entered into by the Office or designated entity pursuant to this chapter shall include the following:

(1) The term length of the agreement, which shall be for a period not to exceed 99 years from the date after the full execution of the public-private partnership agreement;

(2) A complete description of the facilities to be developed and the functions and responsibilities to be performed by public entities and private entities that are party to the agreement;

(3) The types of property interest, if any, that the private entity will have in the project facilities;

(4) The terms of the planning, acquisition, financing, development, design, construction, re-construction, rehabilitation, replacement, improvement, maintenance, management, operation, repair, leasing, and ownership of the facilities;

(5) The rights that the public entities and private entities that are party to the agreement have, if any, in revenue generated as a result of the public-private partnership agreement;

(6) The minimum quality standards applicable to the public-private partnership project, including performance criteria, reporting requirements, incentives, and penalties for failure to meet these standards;

(7) A specific plan to ensure proper maintenance of the project facilities throughout the term of the agreement and a return of the facility to the District in good condition and repair;

(8) The compensation of the private entities, including the extent to which and the terms upon which a private entity may charge fees to individuals and entities for the use of the facility, but in no event shall new fees be imposed or existing fees be amended unless authorized by a subsequent act of the Council;

(9) The requirement of an annual independent audit report furnished by the private entity or entities to the Office or designated public entity covering all aspects of the agreement;

(10) Performance and payment bonds or other security and risk-mitigation tools deemed suitable by the Office or designated public entity;

(11) If the private entity or entities are responsible for operating the public-private partnership project, one or more policies of public liability insurance in amounts determined by the Office or designated public entity to ensure coverage of tort liability for the public and employees of the private entities;

(12) Grounds for termination of the public-private partnership agreement by the Office, a designated public entity, or private entity;

(13) Procedures for amending the public-private partnership agreement;

(14) Disposition of the facility upon the conclusion or termination of the public-private partnership agreement;

(15) The rights and remedies available to the District for a material breach of the agreement by the private entity or entities or if there is a material default;

(16) Identification of funding sources to be used to fully fund the capital, operation, maintenance, and other expenses under the public-private partnership agreement;

(17) Certification of compliance with applicable District and federal laws; and

(18) Any other provisions determined to be appropriate by the Office or designated public entity.

(c) Public-private partnership agreements approved and entered into by the Office or designated public entity may include review and approval by the Office or a designated public entity of the private entity's plans for the development, operation, and maintenance of the public-private partnership project facilities.

(d) No public-private partnership agreement shall contain any noncompete provisions limiting the ability of a public entity to perform its government functions.

(e) The Office or a designated public entity shall have access and the right to inspect the public-private partnership project or facility at any time with reasonable notice.

(f) The Office may apply for and accept funds from the District or federal government and other sources of financial aid to fund public-private partnership projects or otherwise further the purposes of this chapter.

(g) The Office or designated public entity may enter into public-private partnership agreements with other local and state government agencies that are regional in scope as long as the regional scope is expressly stated in the request for proposals submitted to the Council pursuant to § 2-273.05.