BILL ANALYSIS Ó
AB 2551
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CONCURRENCE IN SENATE AMENDMENTS
AB
2551 (Gallagher, et al.)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: |73-1 |(May 23, 2016) |SENATE: |36-1 |(August 23, |
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Original Committee Reference: W., P., & W.
SUMMARY: Authorizes alternative contracting methods for surface
storage projects that receive Proposition 1 funding and
conditions the use of alternative project delivery methods on
meeting specific solicitation, qualification, and selection
requirements. Specifically, this bill:
1)Authorizes the use of construction management at-risk,
design-build, or design-build-operate (DBO), project delivery
methods for Proposition 1 funded surface storage projects.
2)Specifies the process by which a local agency will solicit
bids on a project.
3)Prohibits a bidder to prequalify unless they use a skilled and
trained workforce, as defined.
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4)Requires the local agency to make a list of prequalified
bidders available to the public.
5)Specifies the bid selection process to be made from the pool
of prequalified bidders.
The Senate amendments:
1)Specify work force employment qualifications specifically
conforming use of skilled workforce requirements to existing
law.
2)Specify the process to comply with the skilled labor
requirements.
3)Provide for the regulation and supervision by the state of any
project constructed utilizing the provisions of this bill.
4)Make other clarifying and technical changes.
EXISTING LAW:
1)In various ways authorizes the use of alternative project
delivery methods for state and local agencies. Expressly
prohibits the use of design-build-operate (DBO) procurement.
2)Makes surface storage projects identified in the CALFED
Bay-Delta Program Record of Decision, except projects
prohibited by the California Wild and Scenic Rivers Act,
eligible for $2.7 billion funding continuously appropriated to
the Water Commission under Proposition 1.
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3)Requires reservoir construction to be approved by the
Department of Water Resources' Division of Dam Safety and
requires reservoirs to be inspected by the Division.
FISCAL EFFECT: According to the Assembly Appropriations
Committee there are unknown future costs or savings depending on
the outcomes of the projects selected for alternative project
delivery, as opposed to other procurement methods that might
have been used on those projects. Any cost or benefit of a
specific contracting method will depend on each individual
project. Given that these are likely to be large, complex
projects, the costs or savings could be significant.
COMMENTS: The traditional public works contracting method is
known as design-bid-build, whereby project design is done under
contract by an architectural/engineering firm, then upon
completion of the design phase, the construction phase is put
out to bid and the contract is awarded to the lowest responsible
bidder.
Increasing use of alternative project delivery methods have been
occurring in the public sector over the last 15 years. Research
on alternative project delivery methods have shown these methods
may lead to greater flexibility and accountability, higher
quality, faster completion and lower overall project costs.
This bill authorizes the use of alternative methods of project
delivery for surface storage projects that receive Proposition 1
funding. This bill does not alter the requirements currently
required under Proposition 1. It lays out the specific process
by which a project could utilize the alternative methods. Only
after meeting the requirements of Proposition 1, receiving
Proposition 1 funding, and meeting the solicitation and
evaluation requirements in this bill, will a surface storage
project be able to utilize alternative project delivery methods.
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Analysis Prepared by:
Ryan Ojakian / W., P., & W. / (916) 319-2096
FN: 0004760