CODE OF VIRGINIA

COMPREHENSIVE AGREEMENT (§ 56-575.9)

A. Prior to developing or operating the qualifying project, the private entity
shall enter into a comprehensive agreement with the responsible public entity.
The comprehensive agreement shall provide for:

   1.  Delivery of maintenance, performance and payment bonds, letters of credit
   in connection with the development or operation of the qualifying project, in
   the forms and amounts satisfactory to the responsible public entity and in
   compliance with § 2.2-4337 for those components of the qualifying project
   that involve construction;

   2.  Review of plans and specifications for the qualifying project by the
   responsible public entity and approval by the responsible public entity if the
   plans and specifications conform to standards acceptable to the responsible
   public entity. This shall not be construed as requiring the private entity to
   complete design of a qualifying project prior to the execution of a
   comprehensive agreement;

   3.  Inspection of the qualifying project by the responsible public entity to
   ensure that the private entity’s activities are acceptable to the
   responsible public entity in accordance with the provisions of the
   comprehensive agreement;

   4.  Maintenance of a policy or policies of public liability insurance (copies
   of which shall be filed with the responsible public entity accompanied by
   proofs of coverage) or self-insurance, each in 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 project;

   5.  Monitoring of the practices of the private entity by the responsible
   public entity to ensure that the qualifying project is properly maintained;

   6.  Reimbursement to be paid to the responsible public entity for services
   provided by the responsible public entity;

   7.  Filing of appropriate financial statements on a periodic basis; and

   8.  Policies and procedures governing the rights and responsibilities of the
   responsible public entity and the private entity in the event the
   comprehensive agreement is terminated or there is a material default by the
   private entity. Such policies and guidelines shall include conditions
   governing assumption of the duties and responsibilities of the private entity
   by the responsible public entity and the transfer or purchase of property or
   other interests of the private entity by the responsible public entity.

B. The comprehensive agreement shall provide for such user fees, lease payments,
or service payments as may be established from time to time by agreement of the
parties. A copy of any service contract shall be filed with the responsible
public entity. In negotiating user fees under this section, the parties shall
establish payments or fees that are the same for persons using the facility
under like conditions and that will not materially discourage use of the
qualifying project. The execution of the comprehensive agreement or any
amendment thereto shall constitute conclusive evidence that the user fees, lease
payments, or service payments provided for comply with this chapter. User fees
or lease payments established in the comprehensive agreement as a source of
revenues may be in addition to, or in lieu of, service payments.

C. In the comprehensive agreement, the responsible public entity may agree to
make grants or loans to the private entity from time to time from amounts
received from the federal, state, or local government or any agency or
instrumentality thereof.

D. The comprehensive agreement shall incorporate the duties of the private
entity under this chapter and may contain such other terms and conditions that
the responsible public entity determines serve the public purpose of this
chapter. Without limitation, the comprehensive agreement may contain 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
therein as providing financing for the qualifying project. The comprehensive
agreement may contain such other lawful terms and conditions to which the
private entity and the responsible public entity mutually agree, including,
without limitation, provisions regarding unavoidable delays or provisions
providing for a loan of public funds to the private entity to develop or operate
one or more qualifying projects. The comprehensive agreement may also contain
provisions where the authority and duties of the private entity under this
chapter shall cease, and the qualifying project is dedicated to the responsible
public entity or, if the qualifying project was initially dedicated by an
affected local jurisdiction, to such affected local jurisdiction for public use.

E. Any changes in the terms of the comprehensive agreement, as may be agreed
upon by the parties from time to time, shall be added to the comprehensive
agreement by written amendment.

F. When a responsible public entity that is not an agency or authority of the
Commonwealth enters into a comprehensive agreement pursuant to this chapter, it
shall within 30 days thereafter submit a copy of the comprehensive agreement to
the Auditor of Public Accounts.

G. The comprehensive agreement may provide for the development or operation of
phases or segments of the qualifying project.

HISTORY: 2002, c. 571; 2003, c. 1034; 2004, c. 986; 2005, c. 865.