BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 155|
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THIRD READING
Bill No: AB 155
Author: Alejo (D), et al.
Amended: 7/2/14 in Senate
Vote: 27 - Urgency
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-1, 6/25/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu
NOES: Walters
ASSEMBLY FLOOR : Not relevant
SUBJECT : Monterey County Water Resources Agency:
design-build
SOURCE : Author
DIGEST : This bill allows the Monterey County Water Resources
Agency (MCWRA) to use a design-build process solely to award
contracts to construct a pipeline or tunnel connecting two lakes
owned and operated by MCWRA.
ANALYSIS : The Local Agency Public Construction Act requires
local officials to invite bids for construction projects and
then award contracts to the lowest responsible bidder. State
law also allows state and local officials to use the
design-build method to procure both design and construction
services from a single company before the development of
complete plans and specifications. Under design-build, a public
agency contracts with a single entity which can be a single
firm, a consortium, or a joint venture to design and construct a
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project. Before inviting bids, the agency prepares documents
that describe the basic concept of the project, as opposed to a
complete set of drawings and specifications of what will be
constructed. In the bidding phase, the agency typically
evaluates bids on a best-value basis, incorporating technical
factors, such as qualifications and design quality, in addition
to price.
All counties can use the design-build method to construct
buildings and related improvements and wastewater treatment
facilities that cost more than $2.5 million (SB 416, Ashburn,
Chapter 585, Statutes of 2007). Similarly, all cities can use
the design-build method to construct buildings and related
improvements worth more than $1 million (AB 642, Wolk, Chapter
314, Statutes of 2008). A pilot program also permits cities,
counties, and special districts to use the design-build method
to construct 20 local wastewater treatment facilities, local
solid waste facilities, or local water recycling facilities (AB
642, Wolk of 2008).
This bill allows the MCWRA, not-withstanding any other law, to
award a design-build contract for the combined design and
construction of a project to connect Lake San Antonio and Lake
Nacimiento with an underground tunnel or pipeline for the
purpose of maximizing water storage, supply, and groundwater
recharge at the lakes, and within the Salinas River Groundwater
Basin and the Salinas Valley, including all necessary subsurface
and surface improvements.
This bill specifies that MCWRA may utilize a design-build
process solely to award contracts for the project to connect the
two lakes with an underground tunnel or pipeline, as defined in
this bill, and for no other purpose.
This bill requires that, if MCWRA does award a design-build
contract, it must use the same design-build contracting
procedures used by other counties under existing law, and
ensures that the design-build entity selected for the project
enters into a project labor agreement that will bind all of the
contractors performing work on the project.
Comments
The MCWRA is a special act special district created to function
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as a flood control and water agency in Monterey County. MCWRA
manages Lake Nacimiento and Lake San Antonio, two reservoirs on
the Salinas River. Because Lake Nacimiento's watershed fills
that reservoir nearly three times faster than Lake San Antonio
is filled by its watershed, MCWRA officials must sometimes
release water from Lake Nacimiento, when it is at capacity,
while Lake San Antonio still has excess storage available.
MCWRA officials are considering building a tunnel or pipeline
between Lake Nacimiento and Lake San Antonio to redirect water
from Lake Nacimiento that will otherwise be released out to sea
and use it, instead, to fill excess capacity in Lake San
Antonio.
Prior Legislation
AB 674 (Dutra, Chapter 84, Statutes of 2001) allowed the Santa
Clara Valley Water District to use counties' design-build
procedures for building construction contracts.
SB 645 (Correa, Chapter 473, Statutes of 2007) allowed the
Orange County Sanitation District to use counties' design-build
procedures to build projects in excess of $6 million, including
public wastewater facilities.
SB 1699 (Wiggins, Chapter 415, Statutes of 2008) allowed the
Sonoma Valley Hospital District to use counties' design-build
procedures to construct a building or improvements at the Sonoma
Valley Hospital.
SB 268 (Gaines, Chapter 18, Statutes of 2014) allowed the Last
Frontier Health Care District to use counties' design-build
procedures to construct a building or improvements at the Modoc
Medical Center.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 7/2/14)
California American Water
CH2M Hill
International Brotherhood of Electrical Workers, Local 234
Monterey County Water Resources Agency
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State Building and Construction Trades Council, AFL-CIO
OPPOSITION : (Verified 7/2/14)
Air Conditioning Trade Association
Associated Builders and Contractors - San Diego Chapter
Associated Builders and Contractors of California
Plumbing-Heating-Cooling Contractors Association of California
Western Electrical Contractors Association
ARGUMENTS IN SUPPORT : According to the author's office, the
project will maximize overall water storage at the lakes by
allowing the conveyance of water to Lake San Antonio for storage
that may otherwise overflow from Lake Nacimiento; thus,
improving the benefits provided by the lakes and the Salinas
Valley Water Project to the basin and the valley, mitigating the
impact of the drought, and improving the economic viability of
the valley and its agricultural production, all benefitting the
state.
Utilizing an alternative project delivery system, consisting of
a design-build contract, will provide benefits by shifting the
liability and risk for cost containment and project completion
to the design-build entity, and will provide for the more timely
and efficient project delivery in light of the current drought
conditions and the Governor's emergency declaration.
ARGUMENTS IN OPPOSITION : The opponents argue that this bill
is unfair due to the unreasonable and discriminatory mandate
that a Project Labor Agreement be used on all work done on the
proposed project, and the vast majority of contractors and their
employees--more than 80%--have voluntarily opted against
unionization. ABC California states this bill ignores that
right and attempts to use taxpayer dollars to exclusively award
contracts to union contractors for this project. All
contractors with the appropriate license, skilled workforce and
meet other performance-based requirements should be able to bid
and be awarded any taxpayer funded projects. To do otherwise
blatantly discriminates against the majority of the hardworking
California construction workforce.
AB:dk 7/2/14 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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