BILL ANALYSIS Ó
SB 374
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Date of Hearing: September 8, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
SB
374 (Hueso) - As Amended September 4, 2015
SENATE VOTE: Vote not relevant
SUBJECT: Design-build: San Diego Association of Governments.
SUMMARY: Allows the San Diego Association of Governments
(SANDAG) to use the design-build (DB) procurement process for
specified development projects related to transit facilities
developed or jointly developed by SANDAG. Specifically, this
bill:
1)Allows, until January 1, 2025, SANDAG to use the DB
procurement process for development projects in excess of $1
million that are adjacent, or physically or functionally
related, to transit facilities developed or jointly developed
by SANDAG.
2)Finds and declares that a special law is necessary and that a
general law cannot be made applicable within the meaning of
the California Constitution because of SANDAG's unique
responsibilities as the consolidated transportation agency
with capital project implementation responsibilities, as
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specified.
3)Makes technical and conforming changes.
EXISTING LAW:
1)Establishes, pursuant to the Local Agency Public Construction
Act (LAPCA) within the Public Contract Code, the procedures
local agencies must use when soliciting and evaluating bids or
proposals for the construction of a public work or
improvement, which generally require contracts to be awarded
to the lowest responsible bidder after a competitive bidding
process.
2)Allows, until January 1, 2025, local agencies to use DB for
public works contracts in excess of $1 million using either a
low bid or best value process.
3)Defines, for purposes of local agencies' authority to use DB,
"local agency" to include any transit district, included
transit district, municipal operator, included municipal
operator, any consolidated agency, any joint powers authority
formed to provide transit service, any county transportation
commission, or any other local or regional agency responsible
for the construction of transit projects, as specified.
4)Defines, for purposes of transit agencies' authority to use
DB, "project" to mean a transit capital project that begins
project solicitation on or after January 1, 2015. "Project"
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does not include state highway construction or local street
and road projects.
FISCAL EFFECT: None
COMMENTS:
1)Bill Summary. This bill provides a narrow expansion of
SANDAG's existing authority to use the DB procurement process
for transit projects in excess of $1 million, to also allow
SANDAG to use DB for development projects adjacent, or
physically or functionally related, to transit facilities
developed or jointly developed by SANDAG. This bill is
sponsored by SANDAG.
2)Background. SANDAG is in the planning process for a project
to develop a bus stopover facility in downtown San Diego, with
multiuse options. At present, buses park at temporary
curbside locations around downtown. The stopover is needed to
maintain bus schedules and to provide a location where transit
operators can rest at the start and end of routes. The
stopover will not be a transit station. The stopover also
would provide restroom facilities for transit drivers,
allowing for the removal of existing portable restrooms from
city sidewalks. SANDAG will oversee the entitlement, design,
and construction of the stopover, which will be operated by
the San Diego Metropolitan Transit System. Roughly $16
million has been allocated to the project from TransNet, the
voter approved half-cent sales tax for transportation projects
administered by SANDAG.
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According to the sponsor, "The potential multiuse aspect of
the facility is based on the goals of SANDAG owning the
facility that houses its office space at a lower cost than
leasing as well as providing an opportunity for multiuse
development on a block of land in a vibrant area of downtown.
In conjunction with the stopover, the facility also could
provide future office space for SANDAG and other tenants as
part of a mixed-use development project. This approach would
enhance integration into the character of the neighboring
community and aligns with the City of San Diego Downtown
Community Plan Ordinance."
3)Design-Build Contracting. State law generally requires public
agencies to invite bids for construction projects and then
award contracts to the lowest responsible bidder. This
design-bid-build method is the traditional approach to public
works construction.
Under the DB method, a single contract covers the design and
construction of a project with a single company or consortium
that acts as both the project designer and builder. The DB
entity arranges all architectural, engineering, and
construction services, and is responsible for delivering the
project at a guaranteed price and schedule based upon
performance criteria set by the public agency. The DB method
can be set by the public agency. The DB method can be faster
and, therefore, cheaper, than the design-bid-build method, but
it requires a higher level of management sophistication since
design and construction may occur simultaneously.
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Advocates for the DB method of contracting for public works
contend that project schedule savings can be realized because
only a single request for proposals is needed to select the
project's designer and builder. The more traditional
design-bid-build project approach requires the separate
selection of the design consultant or contractor, completion
of design, and then advertising for bids and selection of the
construction contractor. Proponents add that DB allows the
overlap of design and construction activities, resulting in
additional time savings and lower project costs. By avoiding
the delays and change orders that result from the traditional
design-bid-build method of contracting, proponents argue that
DB can deliver public works faster and cheaper.
Detractors of DB contend that it eliminates competitive
bidding, allows the private contractor or consortium to
inspect and sign off on their own work, and increases project
delivery costs.
SB 785 (Wolk), Chapter 931, Statutes of 2014, repealed
existing law authorizing the Department of General Services
(DGS), the California Department of Corrections and
Rehabilitation (CDCR), and specified local agencies to use the
design-build (DB) procurement process, and enacted more
uniform provisions authorizing DGS, CDCR, and most local
agencies to utilize the DB procurement process for specified
public works projects. SANDAG has the authority under these
statutes to use DB for transit capital projects, but not for
the type of mixed-use development envisioned for its bus
stopover facility.
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4)Arguments in Support. The San Diego Association of
Governments states, "SANDAG has been studying the feasibility
of acquiring a Downtown San Diego property to develop a
stopover facility for short-term bus parking to accommodate
the increase in Rapid transit routes that terminate or
originate routes in Downtown San Diego. The proposed facility
would provide an off-street location in Downtown San Diego
where transit vehicles can be parked for short periods between
runs."
5)Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
San Diego Association of Governments
Opposition
None on file
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Analysis Prepared by:Angela Mapp / L. GOV. / (916)
319-3958