AB 695: Community college facilities: design-build contracts.
- Session Year: 2019-2020
- House: Assembly
- Latest Version Date: 2019-10-03
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Date
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Status
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|---|---|
| Oct 3, 2019 | Chaptered by Secretary of State - Chapter 492, Statutes of 2019. |
| Oct 3, 2019 | Approved by the Governor. |
| Sep 18, 2019 | Enrolled and presented to the Governor at 3:30 p.m. |
| Sep 10, 2019 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Sep 5, 2019 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 7 pursuant to Assembly Rule 77. |
| Sep 4, 2019 | Read third time. Passed. Ordered to the Assembly. |
| Sep 3, 2019 | Read second time. Ordered to third reading. |
| Aug 30, 2019 | Read third time and amended. Ordered to second reading. |
| Jun 25, 2019 | Read second time. Ordered to third reading. |
| Jun 24, 2019 | From committee: Do pass. (Ayes 6. Noes 1.) (June 24). |
| Jun 5, 2019 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 5). Re-referred to Com. on APPR. |
| May 16, 2019 | Referred to Com. on ED. |
| May 6, 2019 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 6, 2019 | Read third time. Passed. Ordered to the Senate. |
| Apr 25, 2019 | Read second time. Ordered to third reading. |
| Apr 24, 2019 | From committee: Do pass. (Ayes 16. Noes 0.) (April 24). |
| Apr 8, 2019 | Re-referred to Com. on APPR. |
| Apr 4, 2019 | Read second time and amended. |
| Apr 3, 2019 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 1.) (April 2). |
| Feb 28, 2019 | Referred to Com. on HIGHER ED. |
| Feb 20, 2019 | From printer. May be heard in committee March 22. |
| Feb 19, 2019 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Sep 10, 2019 | AB 695 Medina Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 4, 2019 | Assembly 3rd Reading AB695 Medina By Wilk | Senate Floor |
Passed |
|
| Jun 24, 2019 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 5, 2019 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Education |
Passed |
|
| May 6, 2019 | AB 695 Medina Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 24, 2019 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 2, 2019 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Higher Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 695
Author:(Medina)
As Amended Ver:August 30, 2019
Majority vote
SUMMARY:
Extends the sunset on community college districts' (CCDs') authority to enter into design-build public works contracts.
The Senate Amendments:
Extend the existing statutes related to the use of community college facilities for public purposes for five years, until January 1, 2025.
COMMENTS:
Traditionally, public agencies have used the "design-bid-build" system for public works project delivery. Under this system, a public agency awards an architect or engineering firm a design contract based on subjective criteria and, after project plans and specifications are completed, the agency awards a contract for the construction work to the lowest responsible bidder. In the 1990s, California began using an alternative delivery method known as the "design-build" system. With design-build, a public agency enters into a single contract with an entity responsible for both project design and construction. Design-build is intended to expedite project completion and reduce design and construction disputes. Over the past 20 years, the Legislature has granted authority to use design-bid to various state and local entities.
In 2007, California Community Colleges (CCC) districts were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. This bill extends this authority for an additional ten years, until 2030.
Current law stipulates that for any K-12 school district, state agency or local government design-build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet "skilled and trained workforce" requirements. Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program. For work performed after January 1, 2020, at least 60% of the skilled journeypersons employed to work on a design-build contract must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations. This bill would apply these training requirements to CCC design-build projects, effective July 1, 2020.
The skilled and training workforce requirements can be waived if certain other requirements are met, including if the entity has entered into a project labor agreement. A project labor agreement is a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects, according to the Public Contract Code Section 2500.
According to the Author:
The current statute is set to expire January 2020, placing at risk long-term plans and a valuable tool CCC districts use to save money and time in the construction process.
Arguments in Support:
Design-build is a significant tool in the delivery of community college construction projects. It can reduce the risk of cost increases resulting from change orders once construction begins by establishing a guaranteed maximum price for each project.
Arguments in Opposition:
The Associated Building and Contractors (ABC) have expressed general opposition to the exemption provided in the skilled and trained workforce provisions for project labor agreements.
FISCAL COMMENTS:
According to the Senate Appropriations Committee, by extending the existing authority for CCDs to enter into design-build contracts, this bill could result in unknown project savings and time as a result of fewer change orders and contract disputes.
VOTES:
ASM HIGHER EDUCATION: 10-1-1
YES: Medina, Choi, Jones-Sawyer, Bloom, Gabriel, Irwin, Levine, Low, Santiago, Weber
NO: Kiley
ABS, ABST OR NV: Patterson
ASM APPROPRIATIONS: 16-0-2
YES: Gonzalez, Bigelow, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Fong, Gabriel, Jones-Sawyer, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas
ABS, ABST OR NV: Brough, Diep
ASSEMBLY FLOOR: 72-0-8
YES: Aguiar-Curry, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Obernolte, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon
ABS, ABST OR NV: Arambula, Brough, Chen, Dahle, Kiley, Melendez, Patterson, Salas
SENATE FLOOR: 33-6-1
YES: Allen, Archuleta, Atkins, Beall, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk
NO: Bates, Grove, Moorlach, Morrell, Nielsen, Stone
ABS, ABST OR NV: Borgeas
UPDATED:
VERSION: August 30, 2019
CONSULTANT: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0002014
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 695 |
THIRD READING
Bill No: AB 695
Amended: 8/30/19 in Senate
SENATE EDUCATION COMMITTEE: 7-0, 6/5/19
AYES: Leyva, Wilk, Chang, Durazo, Glazer, McGuire, Pan
SENATE APPROPRIATIONS COMMITTEE: 6-1, 6/24/19
AYES: Portantino, Bradford, Durazo, Hill, Jones, Wieckowski
NOES: Bates
ASSEMBLY FLOOR: 72-0, 5/6/19 - See last page for vote
SUBJECT: Community college facilities: design-build contracts
SOURCE: Community College Facility Coalition
DIGEST:
This bill extends the authority for community college districts to enter into design-build public works contracts.
Senate Floor Amendments of 8/30/19 extend the existing statutes related to the use of community college facilities for public purposes for five years, until January 1, 2025.
Existing law:
- Allows community college districts, until January 1, 2020, to enter into design-build contracts, according to a specified process.
- Specifies that for school district, state agency, or local government design-build projects, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet “skilled and trained workforce” requirements.
- Stipulates that the skilled and trained workforce requirements do not apply if any of the following requirements are met:
- The public entity has entered into a project labor agreement (PLA), as specified.
- The design-build project is being performed under the extension or renewal of a PLA entered into prior to January 1, 2017.
- The design-build entity has entered into a PLA binding the entity and all its subcontractors to use a skilled and trained workforce.
This bill:
- Extends from January 2020 to January 2030 the authority for community college districts to use the design-build method for construction projects.
- Applies the existing provisions regarding the use of a skilled and trained workforce on state, school district, and local government design-build projects to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
- Extends the existing statutes related to the use of community college facilities for public purposes for five years, until January 1, 2025.
Comments
- Need for this bill. According to the author, “The current statute is set to expire January 2020, placing at risk long-term plans and a valuable tool California Community Colleges (CCC) districts use to save money and time in the construction process.”
- What is design-build? There are two primary construction delivery systems used in the public and private sectors, “design-bid-build” and “design-build.”
Current law requires that school districts award construction contracts over $15,000 to the lowest responsible bidder. Current law also allows contracts for architectural services to be awarded on the basis of demonstrated competence and professional qualifications to be performed at a fair and reasonable price (not necessarily lowest bidder). These laws have meant that schools (and most public construction work) have been built using a "design-bid-build" methodology wherein a separate contract is awarded for the design work by an architect and another contract is awarded to the lowest responsible bidder for the construction.
In the 1990’s, the state began the enactment of various legislation authorizing state and local entities to use a "design-build" system under specified circumstances. Under this approach a single contract is awarded to a professional team, a "design-build" entity, to conduct both types of work. The contract may be awarded on other than a lowest responsible bidder basis.
In 2007, CCC districts were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. This bill extends this authority for an additional 10 years, until 2030.
- What is a skilled and trained workforce? Current law stipulates that for any school district, state agency, or local government with a design-build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet "skilled and trained workforce" requirements. Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program.
For work performed after January 1, 2020, at least 60 percent of the skilled journeypersons employed to work on a design-build contract must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations. This bill applies these training requirements to community college design-build projects, effective July 1, 2020.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, by extending the existing authority for community college districts to enter into design-build contracts, this bill could result in unknown project savings and time as a result of fewer change orders and contract disputes.
Community College Facility Coalition (source)
California Community Colleges Chancellor's Office
California State Association of Electrical Workers
California State Pipe Trades Council
Foothill-De Anza Community College District
International Union of Elevator Constructors
Kern Community College District
Peralta Community College District
San Bernardino Community College District
San Diego Community College District
State Building and Construction Trades Council
Western States Council Sheet Metal Workers
Associated Builders and Contractors, Northern California Chapter
ARGUMENTS IN SUPPORT: Supporters of this bill state that design-build is a significant tool in the delivery of community college construction projects. It can reduce the risk of cost increases resulting from change orders once construction begins by establishing a guaranteed maximum price for each project.
ARGUMENTS IN OPPOSITION: The Associated Builders and Contractors, Northern California Chapter have expressed general opposition to the exemption provided in the skilled and trained workforce provisions for PLAs.
ASSEMBLY FLOOR: 72-0, 5/6/19
AYES: Aguiar-Curry, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon
NO VOTE RECORDED: Arambula, Brough, Chen, Dahle, Kiley, Melendez, Patterson, Salas
Prepared by: Ian Johnson / ED. /
9/3/19 16:41:59
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 695 |
THIRD READING
Bill No: AB 695
Amended: 4/4/19 in Assembly
SENATE EDUCATION COMMITTEE: 7-0, 6/5/19
AYES: Leyva, Wilk, Chang, Durazo, Glazer, McGuire, Pan
SENATE APPROPRIATIONS COMMITTEE: 6-1, 6/24/19
AYES: Portantino, Bradford, Durazo, Hill, Jones, Wieckowski
NOES: Bates
ASSEMBLY FLOOR: 72-0, 5/6/19 - See last page for vote
SUBJECT: Community college facilities: design-build contracts
SOURCE: Community College Facility Coalition
DIGEST:
This bill extends the authority for community college districts to enter into design-build public works contracts.
Existing law:
- Allows community college districts, until January 1, 2020, to enter into design-build contracts, according to a specified process.
- Specifies that for school district, state agency, or local government design-build projects, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet “skilled and trained workforce” requirements.
- Stipulates that the skilled and trained workforce requirements do not apply if any of the following requirements are met:
- The public entity has entered into a project labor agreement (PLA), as specified.
- The design-build project is being performed under the extension or renewal of a PLA entered into prior to January 1, 2017.
- The design-build entity has entered into a PLA binding the entity and all its subcontractors to use a skilled and trained workforce.
This bill:
- Extends from January 2020 to January 2030 the authority for community college districts to use the design-build method for construction projects.
- Applies the existing provisions regarding the use of a skilled and trained workforce on state, school district, and local government design-build projects to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
Comments
- Need for this bill. According to the author, “The current statute is set to expire January 2020, placing at risk long-term plans and a valuable tool California Community Colleges (CCC) districts use to save money and time in the construction process.”
- What is design-build? There are two primary construction delivery systems used in the public and private sectors, “design-bid-build” and “design-build.”
Current law requires that school districts award construction contracts over $15,000 to the lowest responsible bidder. Current law also allows contracts for architectural services to be awarded on the basis of demonstrated competence and professional qualifications to be performed at a fair and reasonable price (not necessarily lowest bidder). These laws have meant that schools (and most public construction work) have been built using a "design-bid-build" methodology wherein a separate contract is awarded for the design work by an architect and another contract is awarded to the lowest responsible bidder for the construction.
In the 1990’s, the state began the enactment of various legislation authorizing state and local entities to use a "design-build" system under specified circumstances. Under this approach a single contract is awarded to a professional team, a "design-build" entity, to conduct both types of work. The contract may be awarded on other than a lowest responsible bidder basis.
In 2007, CCC districts were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. This bill extends this authority for an additional ten years, until 2030.
- What is a skilled and trained workforce? Current law stipulates that for any school district, state agency, or local government with a design-build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet "skilled and trained workforce" requirements. Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program.
For work performed after January 1, 2020, at least 60 percent of the skilled journeypersons employed to work on a design-build contract must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations. This bill applies these training requirements to community college design-build projects, effective July 1, 2020.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, by extending the existing authority for community college districts to enter into design-build contracts, this bill could result in unknown project savings and time as a result of fewer change orders and contract disputes.
Community College Facility Coalition (source)
California Community Colleges Chancellor's Office
California State Association of Electrical Workers
California State Pipe Trades Council
Foothill-De Anza Community College District
International Union of Elevator Constructors
Kern Community College District
Peralta Community College District
San Bernardino Community College District
San Diego Community College District
State Building and Construction Trades Council
Western States Council Sheet Metal Workers
OPPOSITION: (Verified 6/24/19)
Associated Builders and Contractors, Northern California Chapter
ARGUMENTS IN SUPPORT: Supporters of this bill state that design-build is a significant tool in the delivery of community college construction projects. It can reduce the risk of cost increases resulting from change orders once construction begins by establishing a guaranteed maximum price for each project.
ARGUMENTS IN OPPOSITION: The Associated Builders and Contractors, Northern California Chapter have expressed general opposition to the exemption provided in the skilled and trained workforce provisions for PLAs.
ASSEMBLY FLOOR: 72-0, 5/6/19
AYES: Aguiar-Curry, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon
NO VOTE RECORDED: Arambula, Brough, Chen, Dahle, Kiley, Melendez, Patterson, Salas
Prepared by: Ian Johnson / ED. /
6/26/19 15:49:42
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2019 - 2020 Regular Session
AB 695 (Medina) - Community college facilities: design-build contracts
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill extends the authority (by 10 years from January 2020 until January 2030) for community college districts to enter into design-build public works contracts.
Fiscal Impact:
By extending the existing authority for community college districts to enter into design-build contracts, this bill could result in unknown project savings and time as a result of fewer change orders and contract disputes.
Background:
Existing law allows community college districts, until January 1, 2020, to enter into design-build contracts, according to a specified process. The law specifies that for school district, state agency, or local government design-build projects, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet “skilled and trained workforce” requirements.
Existing law also stipulates that the skilled and trained workforce requirements do not apply if any of the following requirements are met:
- The public entity has entered into a project labor agreement (PLA), as specified.
- The design-build project is being performed under the extension or renewal of a PLA entered into prior to January 1, 2017.
- The design-build entity has entered into a PLA binding the entity and all its subcontractors to use a skilled and trained workforce.
Proposed Law:
This bill extends from January 2020 to January 2030 the authority for community college districts to use the design-build method for construction projects.
This bill applies the existing provisions regarding the use of a skilled and trained workforce on state, school district, and local government design-build projects to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
Staff Comments:
Current law requires that school districts award construction contracts over $15,000 to the lowest responsible bidder. Current law also allows contracts for architectural services to be awarded on the basis of demonstrated competence and professional qualifications to be performed at a fair and reasonable price (not necessarily lowest bidder). Therefore, schools (and most public construction work) have been built using a "design-bid-build" methodology wherein a separate contract is awarded for the design work by an architect and another contract is awarded to the lowest responsible bidder for the construction.
In the 1990’s, the state began the enactment of various legislation authorizing state and local entities to use a "design-build" system under specified circumstances. Under this approach a single contract is awarded to a professional team, a "design-build" entity, to conduct both types of work. The contract may be awarded on other than a lowest responsible bidder basis.
In 2007, community districts were given statutory authority, until January 1, 2014, to undertake design-build projects. That authority was subsequently extended until January 1, 2020. This bill extends the authority for an additional 10 years.
-- END --
SENATE COMMITTEE ON EDUCATION
Senator Connie Leyva, Chair
2019 - 2020 Regular
Bill No: AB 695 Hearing Date: June 5, 2019
Author: | Medina | ||
Version: | April 4, 2019 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Ian Johnson | ||
Subject: Community college facilities: design-build contracts.
SUMMARY
This bill extends the authority for community college districts to enter into design-build public works contracts.
BACKGROUND
Existing law:
- Allows community college districts, until January 1, 2020, to enter into design-build contracts, according to a specified process.
- Specifies that for school district, state agency, or local government design-build projects, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet “skilled and trained workforce” requirements.
- Stipulates that the skilled and trained workforce requirements do not apply if any of the following requirements are met:
- The public entity has entered into a project labor agreement (PLA), as specified.
- The design-build project is being performed under the extension or renewal of a PLA entered into prior to January 1, 2017.
- The design-build entity has entered into a PLA binding the entity and all its subcontractors to use a skilled and trained workforce.
ANALYSIS
This bill:
- Extends from January 2020 to January 2030 the authority for community college districts to use the design-build method for construction projects.
- Applies the existing provisions regarding the use of a skilled and trained workforce on state, school district, and local government design-build projects to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
STAFF COMMENTS
- Need for the bill. According to the author, “The current statute is set to expire January 2020, placing at risk long-term plans and a valuable tool California Community Colleges (CCC) districts use to save money and time in the construction process.”
- What is design-build? There are two primary construction delivery systems used in the public and private sectors, “design-bid-build” and “design-build.”
Current law requires that school districts award construction contracts over $15,000 to the lowest responsible bidder. Current law also allows contracts for architectural services to be awarded on the basis of demonstrated competence and professional qualifications to be performed at a fair and reasonable price (not necessarily lowest bidder). These laws have meant that schools (and most public construction work) have been built using a "design-bid-build" methodology wherein a separate contract is awarded for the design work by an architect and another contract is awarded to the lowest responsible bidder for the construction.
In the 1990’s, the state began the enactment of various legislation authorizing state and local entities to use a "design-build" system under specified circumstances. Under this approach a single contract is awarded to a professional team, a "design-build" entity, to conduct both types of work. The contract may be awarded on other than a lowest responsible bidder basis.
In 2007, CCC districts were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. This bill extends this authority for an additional ten years, until 2030.
- What is a skilled and trained workforce? Current law stipulates that for any school district, state agency, or local government with a design-build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet "skilled and trained workforce" requirements. Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program.
For work performed after January 1, 2020, at least 60 percent of the skilled journeypersons employed to work on a design-build contract must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations. This bill would apply these training requirements to community college design-build projects, effective July 1, 2020.
- Arguments in support. Supporters of this measure state that design-build is a significant tool in the delivery of community college construction projects. It can reduce the risk of cost increases resulting from change orders once construction begins by establishing a guaranteed maximum price for each project.
- Arguments in opposition. The Associated Building and Contractors have expressed general opposition to the exemption provided in the skilled and trained workforce provisions for project labor agreements.
SUPPORT
California Community Colleges Chancellor's Office
California State Association of Electrical Workers
California State Pipe Trades Council
Community College Facility Coalition
Foothill-De Anza Community College District
International Union of Elevator Constructors
Kern Community College District
Peralta Community College District
San Bernardino Community College District
San Diego Community College District
State Building and Construction Trades Council
Western States Council Sheet Metal Workers
OPPOSITION
Associated Builders and Contractors, Northern California Chapter
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 695
Author:(Medina)
As Amended Ver:April 4, 2019
Majority vote
SUMMARY:
Extends the sunset on community college districts' (CCDs') authority to enter into design-build public works contracts
Major Provisions
- Extends the January 1, 2020 sunset date on CCDs authority to use the design-build method for district construction projects until January 1, 2030.
- Applies existing provisions regarding the use of a skilled and trained workforce on state, school district, and local government design-build projects to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
COMMENTS:
Traditionally, public agencies have used the "design-bid-build" system for public works project delivery. Under this system, a public agency awards an architect or engineering firm a design contract based on subjective criteria and, after project plans and specifications are completed, the agency awards a contract for the construction work to the lowest responsible bidder. In the 1990s, California began using an alternative delivery method known as the "design-build" system. With design-build, a public agency enters into a single contract with an entity responsible for both project design and construction. Design-build is intended to expedite project completion and reduce design and construction disputes. Over the past 20 years, the Legislature has granted authority to use design-bid to various state and local entities.
In 2007, California Community Colleges (CCC) districts were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. This bill extends this authority for an additional ten years, until 2030.
Current law stipulates that for any K-12 school district, state agency or local government design-build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet "skilled and trained workforce" requirements. Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program. For work performed after January 1, 2020, at least 60% of the skilled journeypersons employed to work on a design-build contract must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations. This bill would apply these training requirements to CCC design-build projects, effective July 1, 2020.
The skilled and training workforce requirements can be waived if certain other requirements are met, including if the entity has entered into a project labor agreement. A project labor agreement is a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects, according to the Public Contract Code Section 2500.
According to the Author:
The current statute is set to expire January 2020, placing at risk long-term plans and a valuable tool CCC districts use to save money and time in the construction process.
Arguments in Support:
Design-build is a significant tool in the delivery of community college construction projects. It can reduce the risk of cost increases resulting from change orders once construction begins by establishing a guaranteed maximum price for each project.
Arguments in Opposition:
The Associated Building and Contractors (ABC) have expressed general opposition to the exemption provided in the skilled and trained workforce provisions for project labor agreements.
FISCAL COMMENTS:
According to the Assembly Appropriations Committee, the California Community College chancellor's office found no additional cost and potential cost savings, to the extent design-build expedites project completion and reduces project disputes.
VOTES:
ASM HIGHER EDUCATION: 10-1-1
YES: Medina, Choi, Jones-Sawyer, Bloom, Gabriel, Irwin, Levine, Low, Santiago, Weber
NO: Kiley
ABS, ABST OR NV: Patterson
ASM APPROPRIATIONS: 16-0-2
YES: Gonzalez, Bigelow, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Fong, Gabriel, Jones-Sawyer, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas
ABS, ABST OR NV: Brough, Diep
UPDATED:
VERSION: April 4, 2019
CONSULTANT: Chuck Nicol / HIGHER ED. / (916) 319-3960 FN: 0000262
Date of Hearing: April 24, 2019
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 695
Author:(Medina) – As Amended Ver:April 4, 2019
Policy Committee: | Higher Education | Vote: | 10 - 1 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill extends the sunset on California Community College (CCC) districts’ authority to enter into design-build public works contracts, from January 1, 2020, to January 1, 2030, and adopts the same "skilled and trained workforce" requirements applicable to the design-build authority of state agencies and local governments to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
FISCAL EFFECT:
According to the California Community College chancellor’s office, no additional cost and potential cost savings, to the extent design-build expedites project completion and reduces project disputes.
COMMENTS:
- Background. Traditionally, public agencies have used the “design-bid-build” system for public works project delivery. Under this system, a public agency awards an architect or engineering firm a design contract based on subjective criteria and, after project plans and specifications are completed, the agency awards a contract for the construction work to the lowest responsible bidder. In the 1990s, California began using an alternative delivery method known as the “design-build” system. With design-build, a public agency enters into a single contract with an entity responsible for both project design and construction. Design-build is intended to expedite project completion and reduce design and construction disputes. Over the past 20 years, the Legislature has granted authority to use design-bid to various state and local entities.
In 2007, CCC districts were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. AB 695 extends this authority for an additional ten years, until 2030.
Current law stipulates that for any K-12 school district, state agency or local government design-build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet “skilled and trained workforce” requirements. Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program. For work performed after January 1, 2020, at least 60% of the skilled journeypersons employed to work on a design-build contract must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations. However, the skilled and training workforce requirements can be waived if certain other requirements are met, including if the entity has entered into a project labor agreement. A project labor agreement is a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects, according to the Public Contract Code §2500.
Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081
Date of Hearing: April 2, 2019
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
ABPCA Bill Id:AB 695 (
Author:Medina) – As Introduced Ver:February 19, 2019
SUBJECT: Community college facilities: design-build contracts
SUMMARY: Extends the sunset on community college districts’ (CCDs’) authority to enter into design-build public works contracts and adopts the same "skilled and trained workforce" requirements applicable to the design-build authority of state agencies and local governments.
Specifically, this bill, as proposed to be amended:
- Extends the January 1, 2020 sunset date on CCDs authority to use the design-build method for district construction projects until January 1, 2030.
- Applies existing provisions regarding the use of a skilled and trained workforce on state, school district, and local government design-build projects to community college design-build contracts advertised for bid or awarded on or after July 1, 2020.
EXISTING LAW:
- Provides CCDs with the authority, until January 1, 2020, to enter into design-build contracts, according to a specified process. (Education Code (EC) Section 81700 et seq.)
- Stipulates that for any K-12 district, state agency, or local government design build project, a design-build entity shall not be prequalified or shortlisted absent a commitment by that entity and all subcontractors to meet “skilled and trained workforce” requirements. (Education Code (EC) Section 17250.25(c)(1), Public Contract Code (PCC) Sections 10191(c)(1) and 22164(c)(1).)
- Skilled and trained workforce means that all workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an approved apprenticeship program. For work performed after January 1, 2020, at least 60 percent of the skilled journeypersons employed to work on a design-build contract by the contractor and all subcontractors must be graduates of an apprenticeship program for the applicable occupation, except that, for specified occupations, such as bricklayer and carpenter, the minimum requirement is 30 percent. (PCC Section 2601(d).)
- Stipulates that the above skilled and trained workforce requirements do not apply if any of the following requirements are met:
- The public entity has entered into a project labor agreement (PLA), as specified.
- The design-build project is being performed under the extension or renewal of a PLA entered into prior to January 1, 2017.
- The design-build entity has entered into a PLA binding the entity and all its subcontractors to use a skilled and trained workforce. (EC Sect. 17250.25(c)(2), PCC Sections 10191(c)(2) and 22164(c)(2).)
FISCAL EFFECT: Unknown
COMMENTS:
Background. The traditional project delivery system for public works has been design-bid-build, whereby an architect/engineering firm is first awarded a design contract based on subjective criteria, and after detailed project plans and specifications are completed, a contract for the construction work, which accounts for over 80% of the project's costs, is awarded to the lowest responsible bidder based on competitive bidding. The state first began using an alternative delivery method - design-build – in the 1990s. Under design-build, the public agency enters into a single contract with an entity responsible for both project design and construction. The intent of using design-build is both to expedite project completion and reduce design and construction disputes between the public agency and the contract entity. Over the past 20 years, legislation has provided this authority to both state and local agencies, typically on a pilot basis initially and more broadly thereafter.
Purpose. In 2007, community colleges statewide were given statutory authority, until January 1, 2014, to undertake design-build projects. This authority was subsequently extended until January 1, 2020. AB 695 extends this authority for an additional 10 years, to 2030. The bill, as to be amended, also applies skilled and trained workforce requirements (described above) to community college projects as currently govern K-12, state agency, and local government design-build projects. These requirements would not be effective until July 1, 2020 in order to allow current design-build projects in the contract bidding and awarding stage to commence under existing processes.
Legislative Analyst’s Reports. Prior legislation authorizing design-build for educational facilities required the Legislative Analyst's Office (LAO) to submit a report on the implementation of design-build contracting. The LAO issued this report on the use of design-build for K-12 construction projects based upon information submitted by one school district. The LAO had difficulty completing a report on design-build contracting by community colleges because it had not received any of the required information from community college districts in order to complete the report.
An unrelated LAO report in 2005 that reviewed design-build contracting across several public works sectors recommended eliminating any contract thresholds on the design-build authority in order to encourage greater use of this alternative contract delivery system. This report also noted that cities and counties using design-build have reported that it takes less staff time to construct a project and results in fewer claims, less litigation, and more price certainty.
In a 2014 report on the use of design-build by counties, the LAO found it difficult to draw general conclusions about the effectiveness of design-build compared to other project delivery methods (such as design-bid-build). The LAO concluded that it did not think the information it reviewed provided any evidence that would discourage the Legislature from granting design-build authority to local agencies on an ongoing basis. However, the office did recommend that the Legislature consider some changes such as creating uniform design-build statute for agencies that have design-build authority (such as counties, cities, and school districts), eliminating cost limitations, and requiring project cost to be a larger factor in awarding the design-build contract.
Prior Legislation.
- SB 693 (Hueso), Chapter 774, Statutes of 2016, consolidated the "skilled and trained workforce" requirements of various provisions of existing law related to alternative construction delivery methods (including design-build) and defined the terms of these requirements. These provisions did not include the community colleges.
- AB 1402 (Simitian), Chapter 421, Statutes of 2001, and AB 1000 (Simitian), Chapter 637, Statutes of 2002, allowed all K-12 and three community college districts, plus five projects in other community college districts, to utilize design-build, but only for projects where total costs were at least $10 million. AB 1402 authorized K-12 districts to use this process until January 1, 2007, while AB 1000 authorized design-build for the five community college districts through January 1, 2008.
- Proposition 1D (AB 127, Nunez and Perata, 2006) extended the sunset dates until 2010 and 2011, respectively.
- SB 614 (Simitian), Chapter 471, Statutes of 2007, lowered the threshold for using design-build from $10 million to $2.5 million, extended the authority for design-build to all CCC districts, and extended the sunset dates for both K-12 and CCC district authorization until January 1, 2014.
- SB 1509 (Simitian), Chapter 736, Statutes of 2012, extended the sunset dates for both K-12 and CCC district authorization until January 1, 2020.
- AB 1358 (Dababneh), Chapter 752, Statutes of 2015, lowered the threshold for K-12 authority to $1 million and extended the sunset date, for K-12 only, to January 1, 2025, which matched provisions enacted in 2014 to the state Departments of General Services and Corrections and Rehabilitation, respectively, and to local governments.
REGISTERED SUPPORT / OPPOSITION:
Support
California Community Colleges, Chancellor's Office
Community College Facility Coalition
Foothill-De Anza Community College District
Kern Community College District
Peralta Community College District
San Bernardino Community College District
San Diego Community College District
Opposition
None on file.
Analysis Prepared by: Chuck Nicol / HIGHER ED. / (916) 319-3960
Bill Author
Bill Co-Author(s):