BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 374|
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UNFINISHED BUSINESS
Bill No: SB 374
Author: Hueso (D), et al.
Amended: 9/4/15
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE TRANS. & HOUSING COMMITTEE: 9-0, 9/11/15 (pursuant to
Senate Rule 29.10)
AYES: Beall, Cannella, Allen, Bates, Gaines, Leyva, McGuire,
Roth, Wieckowski
NO VOTE RECORDED: Galgiani, Mendoza
ASSEMBLY FLOOR: 80-0, 9/10/15 - See last page for vote
SUBJECT: Local agency design-build projects: transit
districts
SOURCE: Author
DIGEST: This bill specifies that the San Diego Association of
Governments (SANDAG) is authorized to utilize design-build for
transit capital projects and development projects adjacent or
related to transit facilities.
Assembly Amendments remove the original contents of this bill
related to the Indian Gaming Special Distribution Fund and
replace it with the current language.
ANALYSIS:
Existing law:
1)Enables certain local agencies to utilize an alternative
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procurement method called design-build (DB) for public works
projects.
2)Limits the local agencies authorized to use DB to the
following:
a) A city, county, or city and county.
b) A special district that operates wastewater or related
facilities.
c) Any transit district, operator, or local or regional
agency responsible for the construction of transit
projects.
3)Limits the types of projects each type of local agency can use
DB to construct. Specifically, limits transit districts to
transit capital projects that do not include state highway
construction or local street and road projects.
4)Creates SANDAG as a consolidated agency and makes it, among
other things, responsible for all public transit and other
transportation planning and programming responsibilities in
San Diego County.
This bill specifies that SANDAG is authorized to utilize DB for
both of the following:
1)A transit capital project that does not include state highway
construction or local street and road projects.
2)Development projects adjacent, or physically or functionally
related, to transit facilities developed or jointly developed
by SANDAG.
Background
SANDAG is in the planning process for a project to develop a bus
stopover facility in downtown San Diego, with multiuse options.
At present, buses park at temporary curbside locations around
downtown. The stopover is needed to maintain bus schedules and
to provide a location where transit operators can rest at the
start and end of routes. The stopover will not be a transit
station. The stopover also would provide restroom facilities
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for transit drivers, allowing for the removal of existing
portable restrooms from city sidewalks. SANDAG will oversee the
entitlement, design, and construction of the stopover, which
will be operated by the San Diego Metropolitan Transit System.
Roughly $16 million has been allocated to the project from
TransNet, the voter-approved half-cent sales tax for
transportation projects administered by SANDAG.
According to SANDAG, "The potential multiuse aspect of the
facility is based on the goals of SANDAG owning the facility
that houses its office space at a lower cost than leasing as
well as providing an opportunity for multiuse development on a
block of land in a vibrant area of downtown. In conjunction
with the stopover, the facility also could provide future office
space for SANDAG and other tenants as part of a mixed-use
development project. This approach would enhance integration
into the character of the neighboring community and aligns with
the City of San Diego Downtown Community Plan Ordinance."
Comments
Design-build contracting. State law generally requires public
agencies to invite bids for construction projects and then award
contracts to the lowest responsible bidder. This
design-bid-build method is the traditional approach to public
works construction.
Under DB, a single contract covers the design and construction
of a project with a single company or consortium that acts as
both the project designer and builder. The DB entity arranges
all architectural, engineering, and construction services, and
is responsible for delivering the project at a guaranteed price
and schedule based upon performance criteria set by the public
agency. The DB procurement method can be faster and, therefore,
cheaper than the design-bid-build method, but it requires a
higher level of management sophistication since design and
construction may occur simultaneously.
Advocates for DB contend that project schedule savings can be
realized because only a single request for proposals is needed
to select the project's designer and builder. The more
traditional design-bid-build project approach requires the
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separate selection of the design consultant or contractor,
completion of design, and then advertising for bids and
selection of the construction contractor. Proponents add that
DB allows the overlap of design and construction activities,
resulting in additional time savings and lower project costs.
By avoiding the delays and change orders that result from the
traditional design-bid-build method of contracting, proponents
argue that DB can deliver public works faster and cheaper.
Detractors of DB contend that it eliminates competitive bidding,
allows the private contractor or consortium to inspect and sign
off on their own work, and increases project delivery costs.
SB 785 (Wolk, Chapter 931, Statutes of 2014) repealed existing
law authorizing the Department of General Services (DGS), the
California Department of Corrections and Rehabilitation (CDCR),
and specified local agencies to use the DB procurement process,
and enacted more uniform provisions authorizing DGS, CDCR, and
most local agencies to utilize DB for specified public works
projects. SANDAG has the authority under these statutes to use
DB for transit capital projects, but not for the type of
mixed-use development envisioned for its bus stopover facility.
What is a "development project?" According to the author, this
bill is intended to authorize SANDAG to build a specific
project. It authorizes, however, SANDAG to build any
"development projects" adjacent or related to a transit facility
without any more specificity as to what type of project that
might include. There is no clear definition of a development
project, and therefore it could mean any project undertaken for
the purposes of development. For example, this bill, as
written, authorizes SANDAG to enter into a DB contract to
construct a housing project, an arena, or even an airport as
long as it is located adjacent to a transit facility. Existing
law does not permit SANDAG to build an arena, but the ambiguity
of this language raises questions about what might become
available to SANDAG or other entities seeking DB authority
through this section of law.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
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According to the Assembly Appropriations Committee, this bill
has no fiscal effect.
SUPPORT: (Verified9/10/15)
San Diego Association of Governments
OPPOSITION: (Verified9/10/15)
Air Conditioning Trade Association
American Fire Sprinkler Association
Associated Builders and Contractors - San Diego Chapter
Plumbing-Heating-Cooling Contractors Association of California
Western Electrical Contractors Association
ASSEMBLY FLOOR: 80-0, 9/10/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
Prepared by:Eric Thronson / T. & H. / (916) 651-4121
9/11/15 15:06:33
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