BILL NUMBER: AB 2098	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 20, 2010
	AMENDED IN ASSEMBLY  JUNE 23, 2010
	AMENDED IN ASSEMBLY  APRIL 21, 2010
	AMENDED IN ASSEMBLY  MARCH 23, 2010

INTRODUCED BY   Assembly  Member   Miller
  Members   Miller,   Jeffries, 
 and Bonnie Lowenthal 
    (   Principal   coauthors:  
Assembly Members   Garrick   and John A. Perez
  ) 
    (   Principal   coauthors:  
Senators   Correa,   Dutton,   Emmerson,
  Hollingsworth,   and Huff   ) 
    (   Coauthors:   Assembly Members 
 Adams,   Anderson,   Arambula,  
Bass,   Bill Berryhill,   Tom Berryhill,  
Bradford,   Buchanan,   Charles Calderon, 
 Carter,   Conway,   Cook,   Coto,
  Davis,   Fletcher,   Fong,  
Fuller,   Gaines,   Galgiani,   Gilmore,
  Hagman,   Hall,   Hill,  
Knight,   Logue,   Ma,   Mendoza, 
 Nestande,   Niello,   Nielsen,  
Norby,   V. Manuel Perez,   Portantino,  
Silva,   Smyth,   Solorio,   Audra
Strickland,   Torlakson,   Torres,   Tran,
  and Villines   ) 
   (   Coauthor:   Senator   Ducheny
  ) 

                        FEBRUARY 18, 2010

   An act to amend Section  130244 of the Public Utilities
Code, relating to transportation   6802 of the Public
Contract Code, relating to public contracts  , and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2098, as amended, Miller. Riverside County Transportation
Commission: transportation projects: contracts. 
   Existing law, until January 1, 2014, allows certain state and
local transportation entities, if authorized by the California
Transportation Commission, to use a design-build process for
contracting on transportation projects, as specified.  
   This bill would authorize the Riverside County Transportation
Commission, if authorized by the commission, to utilize this
design-build procurement process for the State Route 91 Corridor
Improvements Project on the state highway system. The bill would make
the Department of Transportation responsible for the performance of
construction inspection services for the project, as specified, and
would require the commission to report on the progress of the project
and related matters to specified legislative committees. 

   Existing law authorizes the Riverside County Transportation
Commission to impose tolls for 50 years on transportation facilities
on its portion of State Highway Route 91, subject to extension beyond
that time if reauthorized by the Legislature, and authorizes toll
revenues to be used for capital and operating expenses of the
facilities, including debt service, and for related transportation
purposes in the Route 91 corridor. Existing law authorizes the
commission to issue bonds for a transportation project, as defined,
on State Highway Route 91 and requires reversion of the
transportation facilities to the Department of Transportation after
the bonds are repaid unless tolls have been reauthorized by the
Legislature.  
   This bill would authorize the commission to procure services and
award and enter into agreements, including agreements for design and
construction for the transportation project utilizing the best value
design-build method of procurement, as defined. 
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6802 of the   Public
Contract Code   is amended to read: 
   6802.  (a) Subject to the limitations of this chapter, a local
transportation entity, if authorized by the commission, may utilize
the design-build method of procurement for up to five projects that
may be for local street or road, bridge, tunnel, or public transit
projects within the jurisdiction of the entity.
   (b) Subject to the limitations of this chapter, the department, if
authorized by the commission, may utilize the design-build method of
procurement for up to 10 state highway, bridge, or tunnel projects.

   (c) (1) In addition to the projects authorized pursuant to
subdivisions (a) and (b), and subject to the limitations of this
chapter, the Riverside County Transportation Commission, if
authorized by the commission, may utilize design-build procurement
for the State Route 91 Corridor Improvements Project on the state
highway system.  
   (2) Notwithstanding any other provision of this chapter, the
department shall be the agency responsible for the performance of
construction inspection services for the project authorized pursuant
to this subdivision. Construction inspection services for the project
authorized pursuant to this subdivision include, but are not limited
to, surveying, testing the materials, verification testing,
monitoring of environmental compliance, quality control inspection,
and quality assurance audits. The construction inspection duties and
responsibilities shall include a direct reporting relationship
between the inspectors and senior department engineers responsible
for all inspectors and construction inspection services. The senior
department engineer responsible for construction inspection services
shall be responsible for the acceptance or rejection of the work.
 
   (3) Notwithstanding any other provision of law, for the project
authorized pursuant to this subdivision the department shall retain
the authority to stop the contractor's operation wholly or in part
and take appropriate action when public safety is jeopardized. The
department shall ensure that public safety and convenience is
maintained whenever work is performed under an encroachment permit
within the state highway right-of-way, including, but not limited to,
work performed that includes lane closures, signing, work performed
at night, detours, dust control, temporary pavement quality, crash
cushions, temporary railings, pavement transitions, falsework,
shoring, and delineation. The department shall regularly inspect the
job sites for safety compliance and any possible deficiencies. If any
deficiency is observed, a written notice shall be sent to the
resident engineer to correct the deficiency. Once the deficiency is
corrected, a written notice describing the resolution of the
deficiency shall be sent to the department and documented.  

   (4) The department may use department employees or consultants to
perform the services described in this subdivision, consistent with
Article XXII of the California Constitution. Department resources
necessary for the performance of those services, including personnel
requirements, shall be included in the department's capital outlay
support program for workload purposes in the annual Budget Act. 

   (5) Not later than the first day of July that occurs two years
after a design-build contract is awarded, and each July 1 thereafter
until the project is completed, the Riverside County Transportation
Commission shall submit a report on the progress of the project and
compliance with this section to the legislative policy committees
having jurisdiction over transportation matters. 
   SEC. 2.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to provide improved motorist safety, reduced traffic
congestion, and increased traffic mobility on the state's highways at
the earliest possible time, and the associated economic benefits, it
is necessary for this act to take effect immediately.  

  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) Existing law authorizes the Riverside County Transportation
Commission to construct a new highway and transit facility on State
Highway Route 91 in Riverside County and to impose tolls for the use
of that new facility as the means to finance the development,
construction, and operation of capital improvements on that corridor.

   (b) Estimated costs for planned capital improvements for State
Highway Route 91 total over $1.2 billion, resulting in over 18,000
middle class jobs.
   (c) The Riverside County Transportation Commission will bear all
financial risk associated with the project and will be obligated to
bondholders for the next 65 years, with no financial risk to the
state.
   (d) Best value design-build is the only procurement method to
obtain cost and schedule certainty that will achieve investor
confidence to enable the project to be constructed.
   (e) A best value design-build contract will accelerate job
creation, congestion relief, and economic productivity benefits
associated with the improvements of the State Highway Route 91
corridor by at least three years, all while preserving environmental
protections and processes under the California Environmental Quality
Act (CEQA) and the National Environmental Policy Act (NEPA).
   (f) State Highway Route 91 improvements are part of the state and
federally approved regional transportation plan for the Southern
California Association of Governments region and are necessary for
the southern California region to achieve air quality conformity
pursuant to the Clean Air Act.
   (g) The commission is a public agency governed by a board of 31
locally elected officials and an ex officio member representing the
Department of Transportation that is required to adhere to statutory
competitive bidding requirements for all contracts.
   (h) Existing law requires the establishment of an advisory
committee for the State Highway Route 91 corridor comprised of
representatives of the commission, the Orange County Transportation
Authority, San Bernardino Associated Governments, and the Department
of Transportation.
   (i) Existing law requires the commission to conduct an annual
audit of the toll facility on State Highway Route 91 and to undertake
certain public participation measures.
   (j) Therefore, it is the intent of the Legislature to provide the
Riverside County Transportation Commission with direct statutory
authority to implement the State Highway Route 91 capital improvement
project using the best value design-build method of procurement.
 
  SEC. 2.    Section 130244 of the Public Utilities
Code is amended to read:
   130244.  (a) For the purposes of this section, the following terms
apply:
   (1) "Authority" means the Orange County Transportation Authority.
   (2) "Best value" means a value determined by objective criteria,
including, but not limited to, price, features, functions, life-cycle
costs, and other criteria deemed appropriate by the commission.
   (3) "Bonds" means bonds, notes, or other evidences of indebtedness
authorized to be issued pursuant to paragraph (4) of subdivision
(c).
   (4) "Commission" means the Riverside County Transportation
Commission.
   (5) "Department" means the Department of Transportation.
   (6) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
   (7) "Franchise agreement" means the franchise agreement assigned
to the authority pursuant to subdivision (c) of Section 130240.
   (8) "Transportation facilities" means one or more of the following
on State Highway Route 91 between the Orange and Riverside County
line to the west and State Highway Route 15 to the east: (A) general
purpose toll lanes; (B) lanes or facilities where the tolls may be
levied and may vary according to levels of congestion anticipated or
experienced or according to the occupancy of the vehicle; and (C)
facilities or lanes utilizing combinations of or variations on (A) or
(B), or other strategies the commission may determine appropriate on
a facility-by-facility basis.
   (9) "Transportation project" means the planning, design,
development, financing, construction, reconstruction, rehabilitation,
improvement, acquisition, lease, operation, or maintenance, or any
combination of these, with respect to tolled and nontolled
facilities, structures, onramps, connector roads, bridges, and
roadways that are on, necessary for, or related to the construction
or operation of State Highway Route 91 between the Orange and
Riverside County line to the west and State Highway Route 15 to the
east.
   (b) Pursuant to subdivision (l) of Section 130240, the authority
may amend, assign, or terminate the Riverside County portion of the
franchise agreement in the interest of advancing the transportation
project described in paragraph (9) of subdivision (a). The
department, upon request of the authority, shall approve an amendment
to the franchise agreement to eliminate any portion of State Highway
Route 91 within Riverside County from the franchise agreement.
   (c) (1) The commission shall have the authority to set, levy, and
collect tolls, user fees, or other similar charges payable for use of
the transportation facilities, and any other incidental or related
fees or charges, in amounts as required for the following
expenditures relative to the transportation facilities as defined in
paragraph (8) of subdivision (a) and for purposes of paragraph (2):
   (A) Capital outlay, including the costs of design, construction,
right-of-way acquisition, and utility adjustment.
   (B) Operations and maintenance, including, but not limited to,
toll collection and enforcement.
   (C) Repair and rehabilitation.
   (D) Indebtedness incurred, including related financing costs.
   (E) Reserves.
   (F) Administration, which shall not exceed 3 percent of toll
revenues and associated facility revenues.
   (2) Excess toll revenues beyond the expenditure needs of paragraph
(1) may be expended for the following purposes:
   (A) To enhance transit service designed to reduce traffic
congestion on State Highway Route 91 or to expand travel options
along the State Highway Route 91 corridor. Revenues expended under
this subparagraph may be used to maintain the enhanced transit
service. Eligible expenditures include, but are not limited to,
transit operating assistance, the acquisition of transit vehicles,
improvements to commuter rail traveling between Riverside and Orange
Counties, and those transit capital improvements otherwise eligible
to be funded under the State Transportation Improvement Program
pursuant to Section 164 of the Streets and Highways Code.
   (B) To make operational or capacity improvements designed to
reduce congestion or improve the flow of traffic on State Highway
Route 91. Eligible expenditures may include any phase of project
delivery to make capital improvements to onramps, connector roads,
roadways, bridges, or other structures that are related to the tolled
and nontolled facilities on State Highway Route 91 between the
Orange and Riverside County line to the west and State Highway Route
15 to the east.
   (3) The commission, in consultation with the authority and the
department, shall issue a plan of transportation improvements for the
State Highway Route 91 corridor, which shall include projected
costs, the use of toll revenues, and a proposed completion schedule.
This plan shall be updated annually. The plan and each annual update
shall be made available for public review and comment no less than 30
days prior to adoption by the commission.
   (4) The commission is authorized to issue bonds to finance the
costs of the transportation project, including the costs of issuing
the bonds and paying credit enhancement and other fees related to the
bonds, which bonds are payable from the tolls authorized pursuant to
paragraph (1), sales tax revenues, development impact fees, federal
grant funds, or any other source of revenues available to the
commission that may be used for these purposes. The bonds may be sold
pursuant to the terms and conditions set forth in a resolution
adopted by the governing board of the commission. Bonds shall be
issued pursuant to a resolution adopted by a two-thirds vote of the
commission. Any bond issued pursuant to this paragraph shall contain
on its face a statement to the following effect:



"Neither the full faith and credit nor the taxing power of the State
of California is pledged to the payment of principal or interest of
this bond."



   (5) The department is authorized to enter into any lease,
easement, permit, or other agreement with the commission necessary to
accomplish the purposes of this section.
   (6) The commission shall have the authority to impose tolls for
use of the transportation facilities for 50 years following the
opening of the transportation facilities for public use, after which
time the commission shall have no further authority to impose or to
collect a toll for use of transportation facilities on State Highway
Route 91, unless reauthorized by the Legislature. The transportation
facilities shall revert to the department after the bonds issued
pursuant to this section are paid off in their entirety, unless tolls
have been reauthorized by the Legislature. Upon reversion, the
facilities shall be delivered to the department in a condition that
meets the performance and maintenance standards established by the
department.
   (7) The commission shall make available for public review and
comment the toll schedule and any subsequent proposed changes to the
schedule no less than 30 days prior to the adoption by the commission
of a toll schedule.
   (d) The powers granted to the commission pursuant to this section
shall be supplemental and in addition to any other authority of the
commission to undertake the transportation project. The commission
may procure services and award and enter into agreements, including
agreements for design and construction for the transportation project
utilizing the best value design-build method of procurement,
notwithstanding any other requirement of state law or regulation or
county ordinance or regulation relating to public bidding or other
procurement procedures or otherwise applicable to public works,
services, or utilities.
   (e) This section shall not prevent the department or any local
agency from constructing facilities within the State Highway Route 91
corridor that compete with the transportation project, and in no
event shall the commission be entitled to compensation for the
adverse effects on toll revenues due to those facilities.
   (f) If any provision of this section or the application thereof is
held invalid, that invalidity shall not affect other provisions or
applications of this section that can be given effect without the
invalid provision or application, and to this extent the provisions
of this section are severable.
   (g) This section shall not apply to State Highway Route 91 between
the Orange and Riverside County line and State Highway Route 15
unless the authority amends or partially assigns the restated
franchise agreement, as amended, between the department and the
authority to exclude that portion of State Highway Route 91 from the
restated franchise agreement, as amended.  
  SEC. 3.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order to provide improved motorist safety, reduced traffic
congestion, and increased traffic mobility on the state's highways at
the earliest possible time, and the associated economic benefits, it
is necessary for this act to take effect immediately. 
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CORRECTIONS  Heading--Line 13.
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