BILL NUMBER: SB 1549	CHAPTERED
	BILL TEXT

	CHAPTER  767
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2012
	PASSED THE SENATE  AUGUST 22, 2012
	PASSED THE ASSEMBLY  AUGUST 21, 2012
	AMENDED IN ASSEMBLY  AUGUST 13, 2012
	AMENDED IN ASSEMBLY  AUGUST 6, 2012
	AMENDED IN ASSEMBLY  JULY 5, 2012
	AMENDED IN ASSEMBLY  JUNE 20, 2012
	AMENDED IN SENATE  APRIL 30, 2012

INTRODUCED BY   Senator Vargas

                        FEBRUARY 24, 2012

   An act to add Chapter 6.6 (commencing with Section 6950) to Part 1
of Division 2 of the Public Contract Code, relating to public
contracts, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1549, Vargas. Transportation projects: alternative project
delivery methods.
   Existing law sets forth the requirements for the solicitation and
evaluation of bids and the awarding of contracts by state agencies
for projects, as specified, and for local agencies for public works
contracts, as specified.
   This bill would allow the San Diego Association of Governments to
utilize alternative project delivery methods, as defined, for public
transit projects within its jurisdiction. The bill would, upon
completion of a project, require a progress report to be submitted by
the San Diego Association of Governments to its governing board and
would require the report to be made available on its Internet Web
site. The bill would also, except as provided, require the San Diego
Association of Governments to pay fees related to these projects into
the State Public Works Enforcement Fund, a continuously appropriated
fund, thereby making an appropriation. Because this bill would
subject these projects to certain prevailing wage enforcement
requirements, the violation of which is a crime, it would impose a
state-mandated local program by expanding the scope of an existing
crime. The bill would provide that its provisions are severable.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for San Diego regional
transportation entities.
   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.
   Appropriation: yes.


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

  SECTION 1.  Chapter 6.6 (commencing with Section 6950) is added to
Part 1 of Division 2 of the Public Contract Code, to read:
      CHAPTER 6.6.  ALTERNATIVE PROJECT DELIVERY PROGRAM:
CONSTRUCTION MANAGER/GENERAL CONTRACTOR AUTHORITY


   6950.  The Legislature finds and declares all of the following:
   (a) The alternative public works project delivery methods
authorized under this chapter should be evaluated for the purposes of
exploring whether the potential exists for reduced project costs,
expedited project completion, or design features that are not
achievable through the traditional project delivery methods.
   (b) The design sequencing and Construction Manager/General
Contractor project delivery methods rely on existing design-bid-build
and design-build procurement methods respectively and have been
successfully used by both public and private sector entities in
California and other states for over a decade on projects that
require a quick startup as they allow construction to begin before
the design plans are complete for the entire project.
   (c) Both methods also have the benefit of allowing for earlier
collaboration between the project owner and construction contractor.
   (d) This chapter shall not be deemed to provide a preference for
these project delivery methods over other delivery methodologies.
   6951.  For purposes of this chapter, the following definitions
apply:
   (a) "Alternative project delivery method" means either
Construction Manager/General Contractor method or design sequencing.
   (b) "Construction Manager/General Contractor method" or "CMGC"
means a project delivery method using a best value procurement
process in which a construction manager is procured to provide
preconstruction services during the design phase of the project and
construction services during the construction phase of the project.
The execution of the design and the construction of the project may
be in sequential phases or concurrent phases.
   (c) "Construction manager" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting and engineering services as needed pursuant to a CMGC
contract.
   (d) "Design sequencing" means a method of project delivery that
enables the sequencing of design activities to permit each
construction phase to commence when the design for that phase is
complete, instead of requiring design for the entire project to be
completed before commencing construction.
   (e) "Department" means the Department of Transportation as
established under Part 5 (commencing with Section 14000) of Division
3 of the Government Code.
   (f) "San Diego Association of Governments" means the consolidated
agency created pursuant to Chapter 3 (commencing with Section 132350)
of Division 12.7 of the Public Utilities Code.
   6952.  (a) Subject to the limitations of this chapter, the San
Diego Association of Governments may utilize the alternative project
delivery methods for public transit projects within the jurisdiction
of the San Diego Association of Governments.
   (b) The San Diego Association of Governments may enter into an
alternative project delivery method contract pursuant to this chapter
if, after evaluation of the traditional design-bid-build process of
construction and of the alternative project delivery method in a
public meeting, the San Diego Association of Governments makes a
written finding that use of the alternative project delivery method
on the specific project under consideration will accomplish one or
more of the following objectives: reduce project costs, expedite the
project's completion, or provide features not achievable through the
design-bid-build method. This finding must be made prior to the San
Diego Association of Governments entering into an alternative project
delivery method contract. In the alternative project delivery method
proposal, the written findings shall be included as part of any
application for state funds pursuant to this chapter.
   6953.  (a) Except as specified in subdivision (b), the San Diego
Association of Governments shall comply with subdivision (f) of
Section 1771.5 of the Labor Code and shall reimburse the Department
of Industrial Relations for its reasonable and directly related costs
of performing prevailing wage monitoring and enforcement on public
works projects pursuant to rates established by the department as set
forth in subdivision (h) of that section on projects using an
alternative project delivery method under this chapter. All moneys
collected pursuant to this subdivision shall be deposited in the
State Public Works Enforcement Fund, created by Section 1771.3 of the
Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects.
   (b) In lieu of complying with subdivision (a), the San Diego
Association of Governments may elect to enter into a collective
bargaining agreement that binds all of the contractors performing
work on the project and that includes a mechanism for resolving
disputes about the payment of wages.
   6954.  (a) If a contract for CMGC services is entered into
pursuant to this chapter and includes preconstruction services by the
construction manager, the San Diego Association of Governments shall
enter into a written contract with the construction manager for
preconstruction services, under which the San Diego Association of
Governments shall pay the construction manager a fee for
preconstruction services in an amount agreed upon by the San Diego
Association of Governments and the construction manager. The
preconstruction services contract may include fees for services to be
performed during the contract period; provided, however, the San
Diego Association of Governments shall not request or obtain a fixed
price or a guaranteed maximum price for the construction contract
from the construction manager or enter into a construction contract
with the construction manager until after the San Diego Association
of Governments has entered into a services contract. A
preconstruction services contract shall provide for the subsequent
negotiation for construction of all or any discrete phase or phases
of the project and shall provide for the San Diego Association of
Governments to own the design plans and other preconstruction
services work product.
   (b) A contract for construction services will be awarded after the
plans have been sufficiently developed and either a fixed price or a
guaranteed maximum price has been successfully negotiated. In the
event that a fixed price or a guaranteed maximum price is not
negotiated, the San Diego Association of Governments may award the
contract for construction services utilizing any other procurement
method authorized by law.
   (c) The construction manager shall perform not less than 30
percent of the work covered by the fixed price or guaranteed maximum
price agreement reached. Work that is not performed directly by the
construction manager shall be bid to subcontractors pursuant to
Section 6955.
   6955.  All subcontractors bidding on contracts pursuant to this
chapter shall be afforded the protections contained in Chapter 4
(commencing with Section 4100).
   6956.  Nothing in this chapter affects, expands, alters, or limits
any rights or remedies otherwise available at law.
   6957.  (a) Upon completion of a project using an alternative
project delivery method, the San Diego Association of Governments
shall prepare a progress report to its governing body. The progress
report shall include, but shall not be limited to, all of the
following information:
   (1) A description of the project.
   (2) The entity that was awarded the project.
   (3) The estimated and actual costs of the project.
   (4) The estimated and actual schedule for project completion.
   (5) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the project, including,
but not limited to, the resolution of the protests.
   (6) An assessment of the prequalification process and criteria
utilized under this chapter if the CMGC procurement method is used.
   (7) A description of the method used to evaluate the bid or
proposal, including the weighting of each factor and an assessment of
the impact of this requirement on a project.
   (8) A description of any challenges or unexpected problems that
arose during the construction of the project and a description of the
solutions that were considered and ultimately implemented to address
those challenges and problems.
   (9) Recommendations to improve the alternative project delivery
methods authorized under this chapter.
   (b) The progress report shall be made available on the San Diego
Association of Governments' Internet Web site.
   6958.  (a) The provisions of this chapter are severable. If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
   (b) Contracts awarded pursuant to this section shall be valid
until the project is completed.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique need for alternative contracting authority for
local public transportation projects under the jurisdiction of the
San Diego Association of Governments.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.