The future use of Public Private Partnerships (P3) in California took a positive step forward with the recent California Court of Appeal decision in Professional Engineers in California Government v. Department of Transportation (Super Ct. No. RG10544672).

The Professional Engineers in California Government (“PECG”) challenged Caltrans implementation of a P3 project in San Francisco known as the Presidio Parkway Project. PECG claimed that Caltrans violated the Streets and Highway Code section 143 by permitting third party engineers to perform the engineering services for the project in lieu of Caltrans’ employees. In addition, PECG claimed that P3 projects in California must be funded through the use of tolls or user fees as the funding element for a P3 project. The California 1st District Court of Appeal rejected both of these arguments, and in so doing, cleared the way for further use of P3 projects in California. The decision, to the extent California Supreme Court review is not sought, should facilitate the further use of P3 projects in California and may assist public entities such as Caltrans to explore the possibility of securing funding for a project utilizing the P3 model.

Please click HERE to read the full article for additional information. Also, the California Court of Appeal decision can be viewed by clicking HERE for your convenience. If you have any questions, please feel free to contact me, or alternatively, James Chantland, or any Morris Polich & Purdy LLP attorney in the Construction & Design Practice Group.

Sincerely,

D. Creighton Sebra
Attorney at Law
Morris Polich & Purdy LLP
213.417.5380
csebra@mpplaw.com

 

   
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