Amended in Assembly April 4, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 603

Introduced by Assembly Member Cooley

February 20, 2013

An act to amend Sections 6800, 6801, and 6803 of, to add the heading of Article 1 (commencing with Section 6800) to Chapter 6.5 of Part 1 of Division 2 of, to add Article 2 (commencing with Section 6815) to Chapter 6.5 of Part 1 of Division 2 of, and to repeal Section 6813 of, the Public Contract Code, relating to design-build.

LEGISLATIVE COUNSEL’S DIGEST

AB 603, as amended, Cooley. Public contracts: design-build.

Existing law provides for a Design-Build Demonstration Program that allows for a local transportation entity to utilize the design-build method of procurement for a specified amount of projects for local and state projects. Existing law defines “local transportation entity” as a designated transportation authority, a consolidated agency, the Santa Clara Valley Transportation Authority, any other local or regional transportation entity that is designated as a regional begin delete transformation end delete begin insert transportation end insert agency. Existing law subjects both local and state projects to specified procedural requirements to qualify as a design-build project. Existing law repeals these provisions on January 1, 2014.

This bill would include in the definition of a local transportation entity begin delete a city, county, city and county, and end delete a joint powers authority. This bill would only apply the specified procedural requirements to the state design-build projects. This bill would delete the repeal date. This bill would also authorize the Capital Southeast Connector Joint Powers Authority to use design-build procurement, as specified. This bill makes findings regarding the need for special legislation.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

The heading of Article 1 (commencing with
Section 6800) is added to Chapter 6.5 of Part 1 of Division 2 of
the Public Contract Code, to read:

 

Article 1.  General

 

SEC. 2.  

Section 6800 of the Public Contract Code is amended
to read:

6800.  

The Legislature hereby finds and declares all of the
following:

(a) The design-build method of procurement 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 design-bid-build method. This chapter shall
not be deemed to provide a preference for the design-build method
over other procurement methodologies.

(b) The Design-Build Demonstration Program begin delete will allow end delete begin insert allows end insert
for a careful examination of the benefits and challenges of the
design-build contracting method on a limited number of projects.

(c) This article offers specified local agencies the opportunity
to seek approval by the commission for the utilization of the
design-build contracting method for up to five projects. According
to the 2012 annual report to the Legislature submitted by the
commission, none of the five available local projects have been
utilized for the design-build procurement method by local entities.

(d) For the Legislature to fully understand the potential that the
design-build contracting method presents through this Design-Build
Demonstration Program, it is appropriate to expand the definition
of a local transportation entity.

SEC. 3.  

Section 6801 of the Public Contract Code is amended
to read:

6801.  

For purposes of this chapter, the following definitions
apply:

(a) “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 transportation
entity.

(b) “Commission” means the California Transportation
Commission.

(c) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(d) “Design-build entity” means a partnership, corporation, 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.

(f) “Department” means the Department of Transportation as
established under Part 5 (commencing with Section 14000) of
Division 3 of begin insert Title 2 of end insert the Government Code.

(g) “Local transportation entity” means a transportation authority
designated pursuant to Division 19 (commencing with Section
180000) of the Public Utilities Code, a consolidated agency created
pursuant to Chapter 3 (commencing with Section 132350) of
Division 12.7 of the Public Utilities Code, the Santa Clara Valley
Transportation Authority established under Part 12 (commencing
with Section 100000) of Division 10 of the Public Utilities Code,
any other local or regional transportation entity that is designated
by statute as a regional transportation agency, and a joint powers
authority formed pursuant to Chapter 5 (commencing with Section
6500) of Division 7 of Title 1 of the Government Code, with the
consent of a transportation planning agency or a county
transportation commission for the jurisdiction in which the
transportation project will be developed.

(h) “Transportation entity” means the department or a local
transportation entity.

SEC. 4.  

Section 6803 of the Public Contract Code is amended
to read:

6803.  

(a) Only 15 design-build projects shall be authorized
under this chapter. The projects selected shall vary in size, type,
and geographical location.

(b) The commission shall determine whether a transportation
entity may award a design-build contract based on lowest
responsible bid or best value. The commission shall balance the
number of transportation entities that may use the low bid and best
value selection methods in order to ensure that the number of
design-build contracts awarded will enable the commission to
determine the costs and benefits of using each method.

(c) In order to be eligible for consideration as one of the 10
design-build projects authorized under subdivision (b) of Section
6802, the proposed project shall be subject to the existing process
under the state transportation improvement program (Chapter 2
(commencing with Section 14520) of Part 5.3 of Division 3 of
Title 2 of the Government Code), the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006
(Chapter 12.49 (commencing with Section 8879.20) of Division
1 of Title 2 of the Government Code), the traffic congestion relief
program (Chapter 4.5 (commencing with Section 14556) of Part
5.3 of Division 3 of Title 2 of the Government Code), or the state
highway operations and protection program established pursuant
to Section 14526.5 of the Government Code.

(d) The commission shall establish a peer review committee to
conduct an evaluation of the 15 projects selected to utilize the
design-build method of procurement.

(e) The commission shall develop guidelines for a standard
organizational conflict-of-interest policy, consistent with applicable
law, regarding the ability of a person or entity, that performs
services for the transportation entity relating to the solicitation of
a design-build project, to submit a proposal as a design-build entity,
or to join a design-build team. This conflict-of-interest policy shall
apply to each transportation entity entering into design-build
contracts authorized under this chapter.

SEC. 5.  

Section 6813 of the Public Contract Code is repealed.

SEC. 6.  

Article 2 (commencing with Section 6815) is added
to Chapter 6.5 of Part 1 of Division 2 of the Public Contract Code,
to read:

 

Article 2.  Capital Southeast Connector Joint Powers Authority

 

6815.  

The Capital Southeast Connector Joint Powers Authority
may use the design-build method of procurement for transportation
projects, subject to the requirements for utilizing that method
pursuant to Article 1 (commencing with Section 6800). However,
Sections 6802 and 6803 shall not apply to contracts let by the
Capital Southeast Connector Joint Powers Authority when using
the design-build method of procurement.

SEC. 7.  

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 to build and improve a
connecting roadway for the Cities of Elk Grove, Folsom, and
Rancho Cordova, and El Dorado and Sacramento Counties in a
cost-effective manner.