AB 400: Local agency design-build projects: authorization.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-09-22
Current Status:
Passed
(2023-09-22: Chaptered by Secretary of State - Chapter 201, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law authorizes a local agency, as defined, with approval of its governing body, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract either to the lowest bid or the best value. Local agency is defined, in part, for this purpose to include specified local and regional agencies responsible for the construction of transit projects, including any joint powers authority formed to provide transit service. Existing law, among other requirements for the design-build procurement process, requires specified information submitted by a design-build entity to be certified under penalty of perjury. These provisions authorizing the use of the design-build procurement process are repealed on January 1, 2025.
This bill would delete from the definition of local agency any joint powers authority formed to provide transit services, and would instead expand that definition to include any joint powers authority responsible for the construction of transit projects, thereby authorizing additional joint powers authorities to use the above-described design-build procurement process. The bill would extend the repeal date to January 1, 2031. By expanding the design-build authorization to additional joint powers authorities and by extending the design-build authorization, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.
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.
Existing law authorizes a local agency, as defined, with approval of its governing body, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract either to the lowest bid or the best value. Local agency is defined, in part, for this purpose to include specified local and regional agencies responsible for the construction of transit projects, including any joint powers authority formed to provide transit service. Existing law, among other requirements for the design-build procurement process, requires specified information submitted by a design-build entity to be certified under penalty of perjury. These provisions authorizing the use of the design-build procurement process are repealed on January 1, 2025.
This bill would delete from the definition of local agency any joint powers authority formed to provide transit services, and would instead expand that definition to include any joint powers authority responsible for the construction of transit projects, thereby authorizing additional joint powers authorities to use the above-described design-build procurement process. The bill would extend the repeal date to January 1, 2031. By expanding the design-build authorization to additional joint powers authorities and by extending the design-build authorization, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.
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.
Existing law authorizes local agencies, as defined, to use the design-build procurement process for specified types of projects, as prescribed. a local agency, as defined, with approval of its governing body, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract either to the lowest bid or the best value. Local agency is defined, in part, for this purpose to include specified local and regional agencies responsible for the construction of transit projects, including any joint powers authority formed to provide transit service. Existing law, among other requirements for the design-build procurement process, requires specified information submitted by a design-build entity to be certified under penalty of perjury. These provisions authorizing the use of the design-build procurement process are repealed on January 1, 2025.
This bill would delete from the definition of local agency any joint powers authority formed to provide transit services, and would instead expand that definition to include any joint powers authority responsible for the construction of transit projects, thereby authorizing additional joint powers authorities to use the above-described design-build procurement process. The bill would extend the repeal date to January 1, 2031. By expanding the design-build authorization to additional joint powers authorities and by extending the design-build authorization, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.
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.
Existing law authorizes local agencies, as defined, to use the design-build procurement process for specified types of projects, as prescribed. Existing law, among other requirements for the design-build procurement process, requires specified information submitted by a design-build entity to be certified under penalty of perjury. These provisions authorizing the use of the design-build procurement process are repealed on January 1, 2025.
This bill would remove the extend the repeal date to January 1, 2025, repeal date, thereby making these provisions operative indefinitely. 2031. By extending the design-build authorization, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.
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.
Existing law authorizes local agencies, as defined, to use the design-build procurement process for specified types of projects, as prescribed. Existing law, among other requirements for the design-build procurement process, requires specified information submitted by a design-build entity to be certified under penalty of perjury. These provisions authorizing the use of the design-build procurement process are repealed on January 1, 2025.
This bill would remove the January 1, 2025, repeal date, thereby making these provisions operative indefinitely. By extending the design-build authorization, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.
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.
For purposes of this chapter, the following definitions apply:
(a)Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors.
(b)Construction subcontract means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.
(d)Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.
(e)Design-build team means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.
(f)Local agency means the following:
(1)A city, county, or city and county.
(2)A special district that operates wastewater facilities, solid waste management facilities, water recycling facilities, or fire protection facilities.
(3)Any transit district, included transit district, municipal operator, included municipal operator, any consolidated agency, as described in Section 132353.1 of the Public Utilities Code, any joint powers authority, any county transportation commission created pursuant to Section 130050 of the Public Utilities Code, or any other local or regional agency, responsible for the construction of transit projects.
(4)The San Diego Association of Governments, as referenced in the San Diego Regional Transportation Consolidation Act (Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code).
(5)The Stanislaus Regional Water Authority.
(g)(1)Except as specified in subdivision (h), for a local agency defined in paragraph (1) of subdivision (f), project means the construction of a building or buildings and improvements directly related to the construction of a building or buildings, county sanitation wastewater treatment facilities, and park and recreational facilities, but does not include the construction of other infrastructure, including, but not limited to, streets and highways, public rail transit, or water resources facilities and infrastructure. For a local agency defined in paragraph (1) of subdivision (f) that operates wastewater facilities, solid waste management facilities, or water recycling facilities, project also means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, or regional and local water recycling facilities.
(2)For a local agency defined in paragraph (2) of subdivision (f), project means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, regional and local water recycling facilities, or fire protection facilities.
(3)Except as specified in subdivision (h), for a local agency defined in paragraph (3) of subdivision (f), project means a transit capital project that begins a project solicitation on or after January 1, 2015. A project, as defined by this paragraph, that begins the solicitation process before January 1, 2015, is subject to Article 6.8 (commencing with Section 20209.5) of Chapter 1. Project, as defined by this paragraph, does not include state highway construction or local street and road projects.
(4)For a local agency defined in paragraph (4) of subdivision (f), project has the same meaning as in paragraph (3), and shall also include development projects adjacent, or physically or functionally related, to transit facilities developed or jointly developed by the local agency.
(5)For a local agency defined in paragraph (5) of subdivision (f), project means the Stanislaus Regional Water Authoritys Regional Surface Water Supply Project.
(h)In recognition of the additional transportation funds made available by the Road Repair and Accountability Act of 2017 (Chapter 5 of the Statutes of 2017), and to accelerate the delivery of transportation projects to the public, in addition to the authority provided in other subdivisions of this section, for a local agency defined in paragraph (1) or (3) of subdivision (f), for up to six projects to be selected by the Department of Transportation, a project also means construction or rehabilitation of local streets and roads, including, but not limited to, bridge replacement and railroad grade separations. Consistent with Provision 2 of Item 2660-110-0042 of Section 2.00 of the Budget Act of 2016, as amended by Chapter 7 of the Statutes of 2017, three projects shall be reserved for and selected by the Riverside County Transportation Commission, with the first priority for the projects listed in that budget item.
SEC. 2.Section 22169 of the Public Contract Code is amended to read:22169.This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this chapter, the following definitions apply:
(a)Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors.
(b)Construction subcontract means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.
(d)Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.
(e)Design-build team means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.
(f)Local agency means the following:
(1)A city, county, or city and county.
(2)A special district that operates wastewater facilities, solid waste management facilities, water recycling facilities, or fire protection facilities.
(3)Any transit district, included transit district, municipal operator, included municipal operator, any consolidated agency, as described in Section 132353.1 of the Public Utilities Code, any joint powers authority, any county transportation commission created pursuant to Section 130050 of the Public Utilities Code, or any other local or regional agency, responsible for the construction of transit projects.
(4)The San Diego Association of Governments, as referenced in the San Diego Regional Transportation Consolidation Act (Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code).
(5)The Stanislaus Regional Water Authority.
(g)(1)Except as specified in subdivision (h), for a local agency defined in paragraph (1) of subdivision (f), project means the construction of a building or buildings and improvements directly related to the construction of a building or buildings, county sanitation wastewater treatment facilities, and park and recreational facilities, but does not include the construction of other infrastructure, including, but not limited to, streets and highways, public rail transit, or water resources facilities and infrastructure. For a local agency defined in paragraph (1) of subdivision (f) that operates wastewater facilities, solid waste management facilities, or water recycling facilities, project also means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, or regional and local water recycling facilities.
(2)For a local agency defined in paragraph (2) of subdivision (f), project means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, regional and local water recycling facilities, or fire protection facilities.
(3)Except as specified in subdivision (h), for a local agency defined in paragraph (3) of subdivision (f), project means a transit capital project that begins a project solicitation on or after January 1, 2015. A project, as defined by this paragraph, that begins the solicitation process before January 1, 2015, is subject to Article 6.8 (commencing with Section 20209.5) of Chapter 1. Project, as defined by this paragraph, does not include state highway construction or local street and road projects.
(4)For a local agency defined in paragraph (4) of subdivision (f), project has the same meaning as in paragraph (3), and shall also include development projects adjacent, or physically or functionally related, to transit facilities developed or jointly developed by the local agency.
(5)For a local agency defined in paragraph (5) of subdivision (f), project means the Stanislaus Regional Water Authoritys Regional Surface Water Supply Project.
(h)In recognition of the additional transportation funds made available by the Road Repair and Accountability Act of 2017 (Chapter 5 of the Statutes of 2017), and to accelerate the delivery of transportation projects to the public, in addition to the authority provided in other subdivisions of this section, for a local agency defined in paragraph (1) or (3) of subdivision (f), for up to six projects to be selected by the Department of Transportation, a project also means construction or rehabilitation of local streets and roads, including, but not limited to, bridge replacement and railroad grade separations. Consistent with Provision 2 of Item 2660-110-0042 of Section 2.00 of the Budget Act of 2016, as amended by Chapter 7 of the Statutes of 2017, three projects shall be reserved for and selected by the Riverside County Transportation Commission, with the first priority for the projects listed in that budget item.
SEC. 2.Section 22169 of the Public Contract Code is amended to read:22169.This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this chapter, the following definitions apply:
(a)Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors.
(b)Construction subcontract means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.
(d)Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.
(e)Design-build team means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.
(f)Local agency means the following:
(1)A city, county, or city and county.
(2)A special district that operates wastewater facilities, solid waste management facilities, water recycling facilities, or fire protection facilities.
(3)Any transit district, included transit district, municipal operator, included municipal operator, any consolidated agency, as described in Section 132353.1 of the Public Utilities Code, any joint powers authority formed to provide transit service, authority, any county transportation commission created pursuant to Section 130050 of the Public Utilities Code, or any other local or regional agency, responsible for the construction of transit projects.
(4)The San Diego Association of Governments, as referenced in the San Diego Regional Transportation Consolidation Act (Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code).
(5)The Stanislaus Regional Water Authority.
(g)(1)Except as specified in subdivision (h), for a local agency defined in paragraph (1) of subdivision (f), project means the construction of a building or buildings and improvements directly related to the construction of a building or buildings, county sanitation wastewater treatment facilities, and park and recreational facilities, but does not include the construction of other infrastructure, including, but not limited to, streets and highways, public rail transit, or water resources facilities and infrastructure. For a local agency defined in paragraph (1) of subdivision (f) that operates wastewater facilities, solid waste management facilities, or water recycling facilities, project also means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, or regional and local water recycling facilities.
(2)For a local agency defined in paragraph (2) of subdivision (f), project means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, regional and local water recycling facilities, or fire protection facilities.
(3)Except as specified in subdivision (h), for a local agency defined in paragraph (3) of subdivision (f), project means a transit capital project that begins a project solicitation on or after January 1, 2015. A project, as defined by this paragraph, that begins the solicitation process before January 1, 2015, is subject to Article 6.8 (commencing with Section 20209.5) of Chapter 1. Project, as defined by this paragraph, does not include state highway construction or local street and road projects.
(4)For a local agency defined in paragraph (4) of subdivision (f), project has the same meaning as in paragraph (3), and shall also include development projects adjacent, or physically or functionally related, to transit facilities developed or jointly developed by the local agency.
(5)For a local agency defined in paragraph (5) of subdivision (f), project means the Stanislaus Regional Water Authoritys Regional Surface Water Supply Project.
(h)In recognition of the additional transportation funds made available by the Road Repair and Accountability Act of 2017 (Chapter 5 of the Statutes of 2017), and to accelerate the delivery of transportation projects to the public, in addition to the authority provided in other subdivisions of this section, for a local agency defined in paragraph (1) or (3) of subdivision (f), for up to six projects to be selected by the Department of Transportation, a project also means construction or rehabilitation of local streets and roads, including, but not limited to, bridge replacement and railroad grade separations. Consistent with Provision 2 of Item 2660-110-0042 of Section 2.00 of the Budget Act of 2016, as amended by Chapter 7 of the Statutes of 2017, three projects shall be reserved for and selected by the Riverside County Transportation Commission, with the first priority for the projects listed in that budget item.
SECTION 1.SEC. 2.Section 22169 of the Public Contract Code is amended to read:22169.This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 2.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This chapter shall remain in effect only until January 1, 2025, 2031, and as of that date is repealed.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| Sep 22, 2023 | Chaptered by Secretary of State - Chapter 201, Statutes of 2023. |
| Sep 22, 2023 | Approved by the Governor. |
| Sep 5, 2023 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 28, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 2820.). |
| Jul 13, 2023 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 11 pursuant to Assembly Rule 77. |
| Jul 13, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2036.). |
| Jul 5, 2023 | Read second time. Ordered to Consent Calendar. |
| Jul 3, 2023 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jun 21, 2023 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (June 21). Re-referred to Com. on APPR. |
| Jun 13, 2023 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| Jun 8, 2023 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| May 31, 2023 | Referred to Com. on GOV. & F. |
| May 18, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 18, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1594.) |
| May 11, 2023 | Read second time. Ordered to Consent Calendar. |
| May 10, 2023 | From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 10). |
| May 2, 2023 | Re-referred to Com. on APPR. |
| May 1, 2023 | Read second time and amended. |
| Apr 27, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 26). |
| Feb 9, 2023 | Referred to Com. on L. GOV. |
| Feb 3, 2023 | From printer. May be heard in committee March 5. |
| Feb 2, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 28, 2023 | AB 400 Blanca Rubio Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Jul 13, 2023 | Consent Calendar AB400 Blanca Rubio | Senate Floor |
Passed |
|
| Jun 21, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 18, 2023 | AB 400 Blanca Rubio Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 10, 2023 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 26, 2023 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
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.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Council of Engineering Companies of California | ** Support | |
| Association of California Cities Orange County | ** Support | |
| California Builders Alliance | ** Support | |
| California Special Districts Association | ** Support | |
| California State Association Of Counties | ** Support | |
| California Transit Association | * Support | Apr 26, 2023 |
| City of San Marcos | ** Support | |
| City of Whittier | ** Support | |
| County of Contra Costa | ** Support | |
| County of Fresno | ** Support | |
| County Of Los Angeles | ** Support | |
| County Of Mariposa | ** Support | |
| County of Monterey | ** Support | |
| County of Orange | ** Support | |
| County Of Placer | ** Support | |
| county of sacramento | ** Support | |
| County of San Bernardino | ** Support | |
| County Of San Diego | ** Support | |
| County of San Luis Obispo | ** Support | |
| County of San Mateo | ** Support | |
| County of Santa Barbara | ** Support | |
| County of Santa Clara | ** Support | |
| County of Santa Cruz | ** Support | |
| County of Solano | ** Support | |
| Design Build Institute of America | * Support | Apr 26, 2023 |
| Design Build Institute Of American Western Pacific Chapter | ** Support | |
| Design-Build Institute of America Western Pacific Region | ** Support | |
| League Of California Cities | ** Support | |
| Los Angeles County Sanitation Districts | ** Support | |
| Metropolitan Water District Of Southern California | ** Support | |
| Midpeninsula Regional Open Space District | ** Support | |
| Rural County Representatives of California | ** Support | |
| Sacramento Regional Builders Exchange | ** Support | |
| San Bernardino County | ** Support | |
| Santa Clara Valley Water District | ** Support | |
| Shaw Yoder Antwih Schmelzer & Lange | * Support | Apr 26, 2023 |
| Sierra County Department of Public Works and Transportation | ** Support | |
| Streets for All | ** Support | |
| Urban Counties of California | ** Support | |
| Water Replenishment District Of Southern California | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 400
Author:(Blanca Rubio)
As Amended Ver:June 13, 2023
Majority vote
SUMMARY
Extends the sunset date, from January 1, 2025, to January 1, 2031, on provisions of law authorizing local agencies to use the design-build contracting method, and expands the types of JPAs that may use design-build.
Senate Amendments
Expand the types of JPAs that may use design-build to include any JPA, not just JPAs formed to provide transit service as authorized pursuant to existing law.
COMMENTS
California's Legislature began granting design-build authority in the early 1990's, and has typically done so with specified parameters, such as the duration of the authority, the types of agencies allowed to use it, the types of projects for which it can be used, cost thresholds, and specified procedures that must be followed in preparing and awarding contracts. Over the years, this resulted in a number of statutes in a variety of code sections, which created confusion for public agencies and contractors alike.
In an effort to consolidate these statutes, SB 785 (Wolk), Chapter 931, Statutes of 2014, repealed existing law authorizing the Department of General Services (DGS), the Department of Corrections and Rehabilitation (CDCR), and local agencies to use the design-build procurement process, and enacted uniform provisions authorizing DGS, CDCR, and specified local agencies to utilize the design-build procurement process for specified public works projects (with some exceptions, notably design-build authority for CalTrans). SB 785 created one set of codes for DGS and CDCR, and a separate set for specified local agencies, but with similar parameters.
Since SB 785 was enacted, the Legislature has authorized numerous additional local agencies or types of local agencies to use SB 785 design-build authority for additional projects or types of projects.
According to the Author
The Design Build method streamlines public project delivery by allowing local governments to enter into a single contract with a design and construction team that is responsible for designing and building the project. The Design Build method allows counties and local governments to complete and deliver complex public works projects more efficiently and cost effectively versus the more traditional process. Extending the existing design-build authority will provide more certainty for counties and local governments to plan, fund and complete pending and future projects.
Arguments in Support
The California State Association of Counties, sponsor of this measure, writes, "The DB method is an approach to delivering public works projects in which both the design and construction of a project are procured from a single entity. Under design-build, the owner contracts with a single entity to both design and construct a project at a fixed price. Simultaneously, contractors are provided with more flexibility over project design, materials and construction methods. This promotes project design and construction innovation, which can result in higher quality, as well as cost savings. The approach also reduces the county and local agencies' risk and results in fewer litigation claims for all parties involved.
"In the traditional Design-Bid-Build (DBB) method of construction procurement the design and contracting phases are sequential, with no direct collaboration process. Allowing alternative delivery methods for construction projects gives local governments the ability to make the most cost-effective and advantageous decision for a particular project. The DB method streamlines project delivery through a single contract between the owner and the design-build team. Thus, using the DB method for more complex projects facilitates the completion and delivery of public works construction projects efficiently and cost effectively. AB 400 would allow local governments to continue using this authority until January 1, 2031."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
VOTES:
ASM LOCAL GOVERNMENT: 8-0-0
YES: Aguiar-Curry, Dixon, Boerner, Pacheco, Ramos, Robert Rivas, Waldron, Wilson
ASM APPROPRIATIONS: 14-0-2
YES: Holden, Megan Dahle, Calderon, Wendy Carrillo, Dixon, Mike Fong, Addis, Lowenthal, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson
ABS, ABST OR NV: Bryan, Mathis
ASSEMBLY FLOOR: 74-0-6
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Wallis, Ward, Weber, Wicks, Wood, Zbur, Rendon
ABS, ABST OR NV: Cervantes, Vince Fong, Friedman, Villapudua, Waldron, Wilson
SENATE FLOOR: 37-0-3
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Dodd, Grove, Portantino
UPDATED
VERSION: June 13, 2023
CONSULTANT: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0001222
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 400 |
CONSENT
Bill No: AB 400
Author: Blanca Rubio (D)
Amended: 6/13/23 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 8-0, 6/21/23
AYES: Caballero, Seyarto, Blakespear, Dahle, Durazo, Glazer, Skinner, Wiener
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 74-0, 5/18/23 (Consent) - See last page for vote
SUBJECT: Local agency design-build projects: authorization
SOURCE: California State Association of Counties
DIGEST:
This bill extends the sunset date for specified local agencies to use design-build, from January 1, 2025, to January 1, 2031.
ANALYSIS:
Existing law:
- Requires, pursuant to the Local Agency Public Construction Act, local officials to invite bids for construction projects and then award contracts to the lowest responsible bidder under the traditional design-bid-build project delivery system.
- Authorizes, until January 1, 2025, cities, counties, and specified special districts, transit and transportation agencies, including joint powers authorities (JPAs) formed to provide transit service, and specified additional local agencies to use design-build for specified public works contracts in excess of $1 million using either a low bid or best value process.
- Provides the following parameters for cities and counties that use design-build:
- Allows design-build for the construction of a building or buildings and improvements directly related to the construction of a building or buildings, county sanitation wastewater treatment facilities, and park and recreational facilities;
- Allows cities and counties that operate wastewater facilities, solid waste management facilities, or water recycling facilities to use design-build for the construction of such facilities; and,
- Prohibits cities and counties from using design-build for the construction of other infrastructure, including, but not limited to, streets and highways, public rail transit, or water resources facilities and infrastructure.
- Provides that transit districts and special districts that operate wastewater facilities, solid waste management facilities, water recycling facilities, or fire protection facilities may also use design-build for specified projects.
- Requires design-build projects to use skilled labor, the issuance of performance bonds, insurance coverage, and identification of subcontractors that will complete at least one-half of 1% of the value of a design-build contract.
This bill:
- Extends the sunset date for specified local agencies to use design-build, from January 1, 2025, to January 1, 2031.
- Allows any JPA to use design-build, not just those formed to provide transit service.
Background
Local agencies typically use the traditional design-bid-build method for constructing public works. This approach splits construction projects into two distinct phases: design and construction. During the design phase, the local agency prepares detailed project plans and specifications using its own employees or by hiring outside architects and engineers. Once project designs are complete, local agencies invite bids from the construction community and award the contract to the lowest responsible bidder.
Over the last couple of decades, legislators have gradually expanded local agencies’ authority to procure construction projects using various alternatives to the design-bid-build project delivery method.
State law allows state and local officials, until January 1, 2025, to use the design-build method for contracts in excess of $1 million to procure both design and construction services from a single company before developing complete plans and specifications. Under design-build, the public agency contracts with a single entity—which can be a single firm, a consortium, or a joint venture—to design and construct a project. Before inviting bids, the owner prepares documents that describe the basic concept of the project, as opposed to a complete set of drawings and specifications of the final product. In the bidding phase, the owner typically evaluates bids on a best-value basis, incorporating technical factors, such as qualifications and design quality, in addition to price. The Department of General Services, the California Department of Corrections and Rehabilitation, cities, counties, transit districts, including joint powers authorities (JPAs) formed to provide transit service, special districts operating wastewater, water recycling, or solid waste management facilities, and certain health care districts may use design-build.
Originally, the authorizations for state agencies and local governments to use design-build were dispersed throughout state law in separate code sections. In 2014, the Legislature consolidated these provisions into consistent, generally-applicable statutes (SB 785, Wolk, Chapter 931, Statutes of 2014).
Comments
- Purpose of the bill. According to the author, “The Design Build method streamlines public project delivery by allowing local governments to enter into a single contract with a design and construction team that is responsible for designing and building the project. The Design Build method allows counties and local governments to complete and deliver complex public works projects more efficiently and cost effectively versus the more traditional process. Extending the existing design-build authority will provide more certainty for counties and local governments to plan, fund and complete pending and future projects.”
- Premature? Local agencies’ design-build authority sunsets on January 1, 2025. Even though local agencies still have over a year to use design-build authority, AB 400 extends the sunset until 2031. Supporters argue extending the sunset now is necessary to ensure the projects underway or planned to begin prior to the sunset have the legal certainty to finish using design-build. On the other hand, the time remaining under the existing sunset could provide an opportunity to further evaluate whether existing design-build statutes function effectively. The Legislature may wish to consider whether extending the design-build sunset is premature.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 7/4/23)
California State Association of Counties (source)
American Council of Engineering Companies of California
Association of California Cities – Orange County
California Builders Alliance
California Special Districts Association
City of San Marcos
City of Whittier
County of Contra Costa
County of Fresno
County of Los Angeles
County of Mariposa
County of Monterey
County of Orange
County of Placer
County of Sacramento
County of San Bernardino
County of San Diego
County of San Luis Obispo
County of San Mateo
County of Santa Barbara
County of Santa Clara
County of Santa Cruz
County of Solano
Design Build Institute of America Western Pacific Chapter
League of California Cities
Los Angeles County Sanitation Districts
Metropolitan Water District of Southern California
Midpeninsula Regional Open Space District
Rural County Representatives of California
Sacramento Regional Builders Exchange
Santa Clara Valley Water District
Sierra County Department of Public Works and Transportation
Streets for All
Urban Counties of California
Water Replenishment District of Southern California
OPPOSITION: (Verified 7/4/23)
None received
ASSEMBLY FLOOR: 74-0, 5/18/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Wallis, Ward, Weber, Wicks, Wood, Zbur, Rendon
NO VOTE RECORDED: Cervantes, Vince Fong, Friedman, Villapudua, Waldron, Wilson
Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119
7/5/23 14:55:47
**** END ****
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Anna M. Caballero, Chair
2023 - 2024 Regular
Bill No: | AB 400 | Hearing Date: | 6/21/23 |
Author: | Blanca Rubio | Tax Levy: | No |
Version: | 6/13/23 | Fiscal: | Yes |
Consultant: | Peterson | ||
Local agency design-build projects: authorization
Extends the sunset date for specified local agencies to use design-build, from January 1, 2025, to January 1, 2031.
Background
Contracting. The Local Agency Public Construction Act generally requires local agencies to invite bids for construction projects and award contracts to the lowest responsible bidder. Local agencies typically use the traditional design-bid-build method for constructing public works. This approach splits construction projects into two distinct phases: design and construction. During the design phase, the local agency prepares detailed project plans and specifications using its own employees or by hiring outside architects and engineers. Once project designs are complete, local agencies invite bids from the construction community and award the contract to the lowest responsible bidder. Over the last couple of decades, the Legislature has gradually expanded local agencies’ authority to procure construction projects using various alternatives to the design-bid-build project delivery method.
Design-build. State law allows state and local officials, until January 1, 2025, to use the design-build method for contracts in excess of $1 million to procure both design and construction services from a single company before developing complete plans and specifications. Under design-build, the public agency contracts with a single entity—which can be a single firm, a consortium, or a joint venture—to design and construct a project. Before inviting bids, the owner prepares documents that describe the basic concept of the project, as opposed to a complete set of drawings and specifications of the final product. In the bidding phase, the owner typically evaluates bids on a best-value basis, incorporating technical factors, such as qualifications and design quality, in addition to price. The Department of General Services, the California Department of Corrections and Rehabilitation, cities, counties, transit districts, including joint powers authorities (JPAs) formed to provide transit service, special districts operating wastewater, water recycling, or solid waste management facilities, and certain health care districts may use design-build.
Originally, the authorizations for state agencies and local governments to use design-build were dispersed throughout state law in separate code sections. In 2014, the Legislature consolidated these provisions into consistent, generally-applicable statutes (SB 785, Wolk, 2014). SB 785 outlines a standardized design-build procurement process in which the awarding authority may prepare a list of qualified or short-listed entities, based on specified criteria. Once a list of qualified or short-listed entities is complete, the awarding authority may prepare a request for proposals (RFP) inviting prequalified or short-listed entities to submit competitive sealed proposals in the manner the awarding authority prescribes.
For projects utilizing low bid as the selection method, the competitive bidding process must involve lump-sum bids by the prequalified or short-listed design-build entities. Local agencies must award contracts to the design-build entity that is the lowest responsible bidder.
For those projects utilizing best value as a selection method, local agencies must evaluate proposals using only the criteria and selection procedures specifically identified in the RFP. The awarding authority may reserve the right to request revisions and conduct negotiations with responsive proposers, if the authority specifies in the RFP how it will ensure negotiations are conducted in good faith. The authority may hold discussions or negotiations with responsive bidders using the process the RFP specifies. The awarding authority ranks responsive bidders on value provided. The awarding authority must award the contract to the responsible design-build entity whose proposal is determined by the authority to have offered the best value to the public. Upon issuance of a contract award, the awarding authority must publicly announce its award, identifying the design-build entity it has awarded the contract to, along with a written decision supporting its contract award and stating the basis of the award.
The state’s design-build statutes also impose requirements for the use of skilled labor, the issuance of payment and performance bonds, insurance coverage, and identification of subcontractors that will complete at least one-half of 1% of the value of a contract.
Local governments want to continue to use design-build to complete projects after the January 1, 2025, sunset date.
Proposed Law
Assembly Bill 400 extends the sunset date for specified local agencies to use design-build, from January 1, 2025, to January 1, 2031. The measure also allows any JPA to use design-build, not just those formed to provide transit service.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, “The Design Build method streamlines public project delivery by allowing local governments to enter into a single contract with a design and construction team that is responsible for designing and building the project. The Design Build method allows counties and local governments to complete and deliver complex public works projects more efficiently and cost effectively versus the more traditional process. Extending the existing design-build authority will provide more certainty for counties and local governments to plan, fund and complete pending and future projects.”
2. Premature? Local agencies’ design-build authority sunsets on January 1, 2025. Even though local agencies still have over a year to use design-build authority, AB 400 extends the sunset until 2031. Supporters argue extending the sunset now is necessary to ensure the projects underway or planned to begin prior to the sunset have the legal certainty to finish using design-build. On the other hand, the time remaining under the existing sunset could provide an opportunity to further evaluate whether existing design-build statutes function effectively. The Committee may wish to consider whether extending the design-build sunset is premature.
3. Related legislation. Recently, some local agencies have used progressive design-build to construct projects. While there is some variation, the progressive design-build model generally includes two phases. In the first phase, the awarding authority uses a best value process to select a design-build entity who completes preliminary plans and preconstruction services necessary to provide a cost estimate and final design proposal. The project then “progresses” to the second phase of the project, where the awarding authority and the design-build entity agree to a final design, project cost, and schedule. If they cannot agree, there is an “off ramp” between the two phases where the awarding authority can pursue other options, but still benefit from having the first phase work complete. This is different from traditional design-build where the awarding entity contracts with a single entity to design and construct a project at a set price before design work begins, and without a similar off ramp. SB 991 (Newman, 2022) authorizes, until January 1, 2029, local agencies that provide for the production, storage, supply, treatment, or distribution of water to use progressive design-build for up to 15 specified water projects each over $5 million. The Legislature is considering two measures regarding progressive design-build:
- SB 706 (Caballero, 2023) expands local agency progressive design-build authority to any type of project, not just water projects, and extends the progressive design-build sunset date to January 1, 2030. The bill is currently pending in the Assembly Local Government Committee.
- SB 617 (Newman, 2023) authorizes transit agencies and regional transportation planning agencies to utilize progressive design-build procurement method, but keeps the January 1, 2029 sunset date from SB 991. The bill is currently pending in the Assembly Local Government Committee.
Assembly Actions
Assembly Local Government Committee: 8-0
Assembly Appropriations Committee: 14-0
Assembly Floor: 74-0
Support and Opposition
(6/16/23)
Support: California State Association of Counties (Sponsor)
American Council of Engineering Companies of California
California Builders Alliance
California Special Districts Association
City of Whittier
County of Contra Costa
County of Fresno
County of Los Angeles
County of Monterey
County of Orange
County of Placer
County of Sacramento
County of San Bernardino
County of San Diego
County of Santa Barbara
County of Santa Clara
County of Santa Cruz
County of Solano
Design Build Institute of America Western Pacific Chapter
League of California Cities
Los Angeles County Sanitation Districts
Rural County Representatives of California (RCRC)
Sacramento Regional Builders Exchange
Streets for All
Urban Counties of California (UCC)
Water Replenishment District of Southern California
Opposition: None received.
-- END --
Date of Hearing: May 10, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 400
Author:(Blanca Rubio) – As Amended Ver:May 1, 2023
Policy Committee: | Local Government | Vote: | 8 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill extends the sunset date, from January 1, 2025, to January 1, 2031, on provisions of law authorizing local agencies to use the design-build contracting method.
FISCAL EFFECT:
No state costs.
COMMENTS:
- Purpose. The author of this bill seeks to allow local agencies to continue to use the design-build contracting method until January 1, 2031. This bill is sponsored by the California State Association of Counties and the League of California Cities.
- Background. The Legislature began granting design-build authority in the early 1990’s, and has typically done so with specified parameters, such as the duration of the authority, the types of agencies allowed to use it, the types of projects for which it can be used, cost thresholds, and specified procedures for preparing and awarding contracts. Over the years, this resulted in a number of statutes in a variety of code sections, which created confusion for public agencies and contractors alike.
In an effort to consolidate these statutes, SB 785 (Wolk), Chapter 931, Statutes of 2014, enacted uniform provisions authorizing the Department of General Services, the Department of Corrections and Rehabilitation, and specified local agencies to utilize the design-build procurement process for specified public works projects until January 1, 2025. SB 785 created one set of codes for DGS and CDCR, and a separate set for specified local agencies, but with similar parameters. Since SB 785 was enacted, the Legislature has authorized numerous additional local agencies or types of local agencies to use SB 785 design-build authority under separate statutes.
This bill extends the sunset date on the authorization provided in SB 785 to January 1, 2031, for cities, counties, and specified special districts and transit agencies to use design-build for specified public works contracts in excess of $1 million using either a low bid or best value process.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 26, 2023
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
ABPCA Bill Id:AB 400 (
Author:Blanca Rubio) – As Introduced Ver:February 2, 2023
SUBJECT: Local agency design-build projects: authorization.
SUMMARY: Eliminates the sunset date of January 1, 2025, on provisions of law authorizing local agencies to use the design-build contracting method.
EXISTING LAW:
- Requires, pursuant to the Local Agency Public Construction Act (LAPC Act), local officials to invite bids for construction projects and then award contracts to the lowest responsible bidder under the traditional design-bid-build project delivery system. [Public Contract Code (PCC) §§ 20100 – 20929]
- Authorizes, until January 1, 2025, cities, counties, and specified special districts and transit agencies to use design-build for specified public works contracts in excess of $1 million using either a low bid or best value process. (PCC §§ 22160 – 22169)
FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program.
COMMENTS:
- Bill Summary and Author’s Statement. This bill eliminates the sunset date of January 1, 2025, on provisions of law authorizing local agencies to use the design-build contracting method.
According to the author, “Making the existing design-build authority permanent will provide more certainty for counties and local governments to plan, fund and complete pending and future public works projects. Extending authority in short time spans brings some near-term certainty but can lead to project slowdowns as the authority sunset approaches and the potential of non-renewal is contemplated by local governments. Providing permanent authority will bring greater certainty for local governments to plan and complete these projects. Finally, providing permanent authority will ensure that the continued benefits of the DB procurement method, which include faster project delivery, cost savings and better quality as compared to traditional contracting methods on the same project.”
This bill is sponsored by the California State Association of Counties and the League of California Cities.
- Design-Build in California Law. California’s Legislature began granting design-build authority in the early 1990’s, and has typically done so with specified parameters, such as the duration of the authority, the types of agencies allowed to use it, the types of projects for which it can be used, cost thresholds, and specified procedures that must be followed in preparing and awarding contracts. Over the years, this resulted in a number of statutes in a variety of code sections, which created confusion for public agencies and contractors alike.
In an effort to consolidate these statutes, SB 785 (Wolk), Chapter 931, Statutes of 2014, repealed existing law authorizing the Department of General Services (DGS), the Department of Corrections and Rehabilitation (CDCR), and local agencies to use the design-build procurement process, and enacted uniform provisions authorizing DGS, CDCR, and specified local agencies to utilize the design-build procurement process for specified public works projects (with some exceptions, notably design-build authority for CalTrans). SB 785 created one set of codes for DGS and CDCR, and a separate set for specified local agencies, but with similar parameters.
Since SB 785 was enacted, the Legislature has authorized numerous additional local agencies or types of local agencies to use SB 785 design-build authority for additional projects or types of projects.
- Policy Considerations and Committee Amendments. As noted above, since AB 785 was enacted, the Legislature has approved a multitude of additional authorizations for the use of design-build (see list of previous legislation, below). Some of these authorizations are contained within the chapter of law from which this bill removes the sunset. Some are in other code sections that refer to this chapter by cross-reference. This bill is also one year ahead of what would be necessary to avoid the sunset from taking effect. Eliminating the sunset entirely one year early might not pose problems. However, it is not clear that allowing all of the additional authorizations for the use of design-build that the Legislature has approved since 2014 to continue in perpetuity is necessary or reasonable. The Committee may wish to consider re-instating a sunset of January 1, 2031.
- Previous Legislation. AB 1845 (Calderon), Chapter 275, Statutes of 2022, authorized the Metropolitan Water District of Southern California to use design-build, progressive design-build and construction manager/general contractor project delivery methods for a regional water recycling project or a drought response project.
AB 2789 (Mullin), Chapter 214, Statutes of 2022, repealed the January 1, 2023, sunset date authorizing the Midpeninsula Regional Open Space District and the Santa Clara Valley Open-Space Authority to use the design-build process for the construction of facilities or other buildings, and authorized the East Bay Regional Park District to use the design-build process for the construction of facilities or other buildings.
AB 2932 (O’Donnell),Chapter 54, Statutes of 2020, allowed the City of Long Beach to use the design-build contracting process to award contracts for curb ramps that are compliant with the Americans with Disabilities Act.
AB 851 (Caballero and Gloria), Chapter 821, Statutes of 2017, allowed the Santa Clara Valley Water District to use the design-build procurement method for specified types of projects.
AB 994 (Muratsuchi), Chapter 321, Statutes of 2017, allowed the Beach Cities Health District to use the design-build procurement method to assign contracts for the construction of facilities or other buildings in the district.
AB 1523 (Obernolte and Reyes), Chapter 154, Statutes of 2017, authorized the San Bernardino County Transportation Authority to use design-build for the construction of the Mt. Vernon Avenue Viaduct project.
SB 373 (Cannella), Chapter 391, Statutes of 2017, allowed the Stanislaus Regional Water Authority to use design-build for its Regional Surface Water Supply Project.
SB 793 (Hill), Chapter 627, Statutes of 2017, allowed the Peninsula Health Care District, the Midpeninsula Regional Open Space District, and the Santa Clara Valley Open-Space Authority to use the design-build procurement method to assign contracts for the construction of facilities or other buildings in those districts.
SB 957 (Hueso), Chapter 212, Statutes of 2016, allowed health care districts that own or operate a hospital or clinic to use the design-build procedure to construct a building or improvements directly related to the construction of a hospital or health facility building.
AB 1290 (Dahle), Chapter 34, Statutes of 2015, allowed the Mayers Memorial Hospital District to use the design-build procedure to construct a building or improvements directly related to the construction of a hospital or health facility building in the district.
SB 374 (Hueso), Chapter 715, Statutes of 2015, allowed SANDAG to use the design-build procurement process for specified development projects related to transit facilities developed or jointly developed by SANDAG.
AB 155 (Alejo), Chapter 865, Statutes of 2014, allowed the Monterey County Water Resources Agency to use design-build contracting to construct a pipeline or tunnel that will connect two reservoirs that the agency owns and operates.
SB 268 (Gaines), Chapter 18, Statutes of 2014, allowed the Last Frontier Health Care District to use the design-build process when contracting for the construction of a building and improvements directly related to a hospital or health facility building at the Modoc Medical Center.
SB 785 (Wolk), Chapter 931, Statutes of 2014, repealed existing law authorizing DGS, CDCR, and local agencies to use the design-build procurement process, and enacted uniform provisions authorizing DGS, CDCR, and specified local agencies to utilize the design-build procurement process for specified public works projects.
- Arguments in Support. The California State Association of Counties, sponsor of this measure, writes, “Existing statute enacts more uniform provisions authorizing most local agencies, counties included, to use the DB procurement process for specified public works projects within Public Contract Codes Sections 22160-22169, which excludes roads but includes buildings, utility improvements associated with buildings, flood control, underground utility improvements, and bridges.
“The DB method is an approach to delivering public works projects in which both the design and construction of a project are procured from a single entity. Under design-build, the owner contracts with a single entity to both design and construct a project at a fixed price. Simultaneously, contractors are provided with more flexibility over project design, materials and construction methods. This promotes project design and construction innovation, which can result in higher quality, as well as cost savings. The approach also reduces the county and local agencies risk and results in fewer litigation claims for all parties involved.
“In the traditional Design-Bid-Build (DBB) method of construction procurement the design and contracting phases are sequential, with no direct collaboration process. Allowing alternative delivery methods for construction projects gives counties the ability to make the most cost-effective and advantageous decision for a particular project. The DB method streamlines project delivery through a single contract between the owner and the design-build team. Thus, using the DB method for more complex projects facilitates the completion and delivery of public works construction projects efficiently and cost effectively. AB 400 would allow counties to continue using this authority indefinitely.”
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
California State Association of Counties [SPONSOR]
League of California Cities [SPONSOR]
American Council of Engineering Companies of California
Association of California Cities - Orange County (ACC-OC)
California Special Districts Association
City of San Marcos
City of Whittier
Contra Costa County
County of Fresno
County of Monterey
County of Orange
County of Placer
County of Sacramento
County of San Diego
County of San Luis Obispo Department of Public Works
County of San Mateo
County of Santa Barbara
County of Santa Clara
Design-Build Institute of America Western Pacific Region
Los Angeles County
Los Angeles County Sanitation Districts
Mariposa County Board of Supervisors
San Bernardino County
Santa Clara Valley Water District
Santa Cruz County Board of Supervisors
Sierra County Department of Public Works and Transportation
Water Replenishment District of Southern California
Opposition
None on file
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958
Discussed in Hearing
View Older Hearings
Bill Author
Bill Co-Author(s):