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SB-373 Public contracts: design-build: Stanislaus Regional Water Authority.(2017-2018)

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Date Published: 04/27/2017 09:00 PM
SB373:v98#DOCUMENT

Amended  IN  Senate  April 27, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 373


Introduced by Senator Cannella
(Coauthor: Senator Berryhill)
(Coauthor: Assembly Member Flora)

February 14, 2017


An act to amend, repeal, and add Section 5956.10 of the Government Code, relating to infrastructure financing. An act to amend Section 22161 of the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


SB 373, as amended, Cannella. Infrastructure financing: projects. Public contracts: design-build: Stanislaus Regional Water Authority.
Existing law, until January 1, 2025, authorizes the Department of General Services, the Department of Corrections and Rehabilitation, and certain local agencies to use the design-build procurement process for specified public works. Existing law defines a “local agency” and a “project” for purposes of these provisions.
This bill would modify those definitions to authorize the Stanislaus Regional Water Authority to use the design-build procurement process for its Regional Surface Water Supply Project.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Stanislaus Regional Water Authority.

Existing law authorizes a governmental agency to solicit proposals and enter into agreements with private entities for the design, construction, or reconstruction of, and to lease to private entities, specified types of fee-producing infrastructure projects. Existing law prohibits a state agency or specified governmental agencies from using this authorization to design, construct, finance, or operate a state project, as specified.

This bill, until January 1, 2026, would specify that a state project, for these purposes, does not include the Stanislaus Regional Water Authority’s Surface Water Supply Project financed through any state grant or low interest loan funding including, but not limited to, the Safe Drinking Water State Revolving Fund.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Stanislaus Regional Water Authority.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 22161 of the Public Contract Code is amended to read:

22161.
 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, 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) 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) 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 in addition shall 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 Authority’s Regional Surface Water Supply Project.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need for the increased flexibility provided by the design-build alternative procurement process in contracting for the Stanislaus Regional Water Authority’s Regional Surface Water Supply Project.
SECTION 1.Section 5956.10 of the Government Code, as amended by Section 1 of Chapter 664 of the Statutes of 2014, is amended to read:
5956.10.

(a) Notwithstanding any other provision of this chapter, neither the state or any state agency shall directly or indirectly use the authority in this chapter nor shall any governmental agency, as defined in Section 5956.3, use the authority in this chapter to design, construct, finance, or operate a state project. For purposes of this section, a state project includes any of the following:

(1)Tollroads on state highways.

(2)State water projects.

(3)State park and recreation projects.

(4)State financed projects.

(b) These limitations shall not prohibit the state, any state agency, or any governmental agency, as defined in Section 5956.3, from utilizing authorizations contained in other provisions of law.

(c)For purposes of this section, a state project does not include a governmental agency project financed through the State Water Pollution Control Revolving Fund, established pursuant to Section 13477 of the Water Code, or the Safe Drinking Water State Revolving Fund, established pursuant to Section 116760.30 of the Health and Safety Code.

(d)For purposes of this section, a state water project does not include the Stanislaus Regional Water Authority’s Surface Water Supply Project financed through any state grant or low interest loan funding including, but not limited to, the Safe Drinking Water State Revolving Fund, established pursuant to Section 116760.30 of the Health and Safety Code.

(e)This section shall remain in effect only until January 1, 2020, and as of that date is repealed.

SEC. 2.Section 5956.10 of the Government Code, as added by Section 2 of Chapter 664 of the Statutes of 2014, is amended to read:
5956.10.

(a)Notwithstanding any other provision of this chapter, neither the state or any state agency shall directly or indirectly use the authority in this chapter nor shall any governmental agency, as defined in Section 5956.3, use the authority in this chapter to design, construct, finance, or operate a state project. For purposes of this section, a state project includes any of the following:

(1)Tollroads on state highways.

(2)State water projects.

(3)State park and recreation projects.

(4)State financed projects.

(b)These limitations shall not prohibit the state, any state agency, or any governmental agency, as defined in Section 5956.3, from utilizing authorizations contained in other provisions of law.

(c)For purposes of this section, a state water project does not include the Stanislaus Regional Water Authority’s Surface Water Supply Project financed through state grant or low interest loan funding including, but not limited to, the Safe Drinking Water State Revolving Fund, established pursuant to Section 116760.30 of the Health and Safety Code.

(d)(1)This section shall become operative on January 1, 2020.

(2)This section shall remain in effect only until January 1, 2026, and as of that date is repealed.

SEC. 3.Section 5956.10 is added to the Government Code, to read:
5956.10.

(a)Notwithstanding any other provision of this chapter, neither the state or any state agency shall directly or indirectly use the authority in this chapter nor shall any governmental agency, as defined in Section 5956.3, use the authority in this chapter to design, construct, finance, or operate a state project. For purposes of this section, a state project includes any of the following:

(1)Tollroads on state highways.

(2)State water projects.

(3)State park and recreation projects.

(4)State financed projects.

(b)These limitations shall not prohibit the state, any state agency, or any governmental agency, as defined in Section 5956.3, from utilizing authorizations contained in other provisions of law.

(c)This section shall become operative on January 1, 2026.

SEC. 4.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need for enhanced financing options for the Stanislaus Regional Water Authority’s Surface Water Supply Project.