AB 851: Local agency contracts.

(1)Existing law authorizes a county, until January 1, 2018, with approval of the board of supervisors, to utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the county, subject to certain requirements, including that the method may only be used for projects that are in excess of $1,000,000.

This bill would extend that authorization described above until January 1, 2023. The bill, with certain exceptions, would prohibit a construction manager at-risk entity from being prequalified or shortlisted or awarded a contract unless that entity provides an enforceable commitment to the county that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with existing skilled and trained workforce requirements.

The bill would also similarly authorize the City of San Diego, until January 1, 2023, with the approval of the city council, to utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the city. The bill would authorize the city to use that method for a project that is in excess of $25,000,000, as specified. The bill would authorize the city to utilize the construction manger at-risk construction contracts through a single or series of contracts with the construction manager at-risk entity for services during the design and construction phases of the project, insofar as that contracting method is allowable by the city.

(2)Existing law authorizes a local agency, until January 1, 2025, to use the design-build procurement process when contracting for specified public works. Existing law requires specified information submitted by a design-build entity, as defined, in the design-build procurement process to be certified under penalty of perjury.

This bill would authorize the Santa Clara Valley Water District to use the design-build procurement process described above when contracting for the construction of a building or buildings and improvements directly related to the construction of a building or buildings. The bill would also authorize the district, upon approval by its governing body, to use the design-build procurement process for other specified projects. By expanding the design-build authorization to additional development projects, the bill would expand the scope of the crime of perjury and would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Santa Clara Valley Water District and the City of San Diego.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.