Senate BillNo. 562


Introduced by Senator Lara

February 26, 2015


An act to add Chapter 15 (commencing with Section 5975) to Division 6 of Title 1 of the Government Code, relating to infrastructure financing.

LEGISLATIVE COUNSEL’S DIGEST

SB 562, as introduced, Lara. Infrastructure financing: City of Long Beach Civic Center.

The Local Agency Public Construction Act prescribes procedures for contracting by local public agencies, including specific provisions for cities.

Existing law permits a governmental agency to solicit proposals and enter into agreements with private entities for the design, construction, or reconstruction by, and may lease to, private entities, for specified types of fee-producing infrastructure projects. Existing law permits these agreements to provide for the lease of, or ownership of, infrastructure facilities owned by a governmental entity, but constructed by a private entity, to that private entity for a period of up to 35 years.

This bill, notwithstanding the act and any other law, would authorize the City of Long Beach to contract and procure a project for the revitalization and redevelopment of the Long Beach Civic Center, as defined, in accordance with prescribed procedures for qualification, solicitation, proposal evaluation, and contract award. The bill would authorize the lease of the project to, or ownership by, a private entity or entities, for a term of up to 65 years. The bill would make a statement 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 and special circumstances surrounding the existing Long Beach Civic Center, and the need to immediately, quickly, and efficiently develop the project, and to resolve property issues potentially delaying the project.

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

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

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The City of Long Beach has experienced an increasing
4demand to fund infrastructure repairs, replacements, and new
5improvements.

6(b) The existing civic center is nearing the end of its useful life
7and contains significant seismic deficiencies that the City of Long
8Beach seeks to address as soon as feasibly possible to ensure the
9public’s health and safety.

10(c) The City Council of the City of Long Beach seeks to address
11public health and safety in the earliest possible timeframe and
12understands that the development of a new Long Beach Civic
13Center using the public-private partnership procurement process
14presents the most expedient route to protecting the safety of its
15employees in and visitors to the civic center.

16(d) The public-private partnership procurement process has
17demonstrated precedence for the expedient, efficient, and
18economical delivery of projects, through the delivery of the Long
19Beach Courthouse, which was completed under budget and ahead
20of schedule.

21(e) The ability to utilize private sector investment capital is
22essential to the development of a cost-effective and time-sensitive
23Long Beach Civic Center.

24(f) A public-private partnership procurement method provides
25the City of Long Beach with an alternative and optional procedure
26for developing a new civic center that can provide a cost-effective
27benefit to the City of Long Beach by shifting the liability and risk
28for cost containment, project completion, and life-cycle
29maintenance to a private entity.

30

SEC. 2.  

Chapter 15 (commencing with Section 5975) is added
31to Division 6 of Title 1 of the Government Code, to read:

 

P3    1Chapter  15. Long Beach Civic Center
2

 

3

5975.  

As used in this chapter:

4(a) “Best interests of the city” means a procurement process
5that is determined by the city to reduce the project delivery
6schedule and total cost of the project while maintaining a high
7level of quality workmanship and materials.

8(b) “Best value” means a value determined by objective criteria
9that may include, but are not limited to, price, features, functions,
10performance, life-cycle costs, experience, and other criteria deemed
11appropriate by the city.

12(c) “Business entity” means a partnership, corporation, or other
13legal entity that is able to provide appropriately licensed
14contracting, architectural, engineering, financial, operations,
15management, facilities maintenance, and other services for
16development of a new Civic Center.

17(d) “City” means the City of Long Beach.

18(e) “Private entity” means an individual, business entity, or
19combination of individuals and business entities.

20(f) “Project” means the revitalization and redevelopment of the
21Long Beach Civic Center, which is bounded by Broadway, Pacific
22Avenue, Ocean Boulevard, and Magnolia Avenue, containing
23approximately 15.87 acres, and may include additional property
24as deemed necessary by the city for the project.

25(g) “Public-private partnership” means a cooperative
26arrangement between the public and private sectors, built on the
27expertise of each partner, that best meets the city’s needs through
28the appropriate allocation of resources, risks, and rewards for the
29purposes of, and, including, but not limited to, studying, planning,
30designing, constructing, developing, financing, operating,
31maintaining, or any combination thereof, the project.

32

5976.  

(a) Notwithstanding any provision of the Public Contract
33Code or any other law, the city may contract and procure the project
34pursuant to this chapter.

35(b) The city may use a request for qualifications process to
36prequalify and shortlist the number of private entities that will be
37allowed to submit proposals. The request for qualifications shall
38generally describe the project, the private entity’s necessary
39qualifications and responsibilities, and the procurement process.

P4    1(c) The city shall gather information and prepare a solicitation
2package for a public-private partnership, which shall generally
3describe an approved process for methods of project delivery,
4including a project description and requirements, process and
5submission requirements, evaluation criteria, or any other
6information deemed necessary by the city to describe adequately
7the project requirements and procurement process.

8(d) The city shall evaluate the proposals and make its
9determination by choosing the private entity or entities whose
10proposal is, or proposals are, judged as providing the best value
11in meeting the best interests of the city and meeting the objectives
12of the project. The city retains the right to hold and enter into a
13negotiation process with selected private entities in performing
14the evaluation and making its determination. The city may enter
15into a public-private partnership through a lease-purchase,
16lease-leaseback, or other appropriate agreements, with one or more
17private entities for delivery of the project. The city may retain the
18right to select all or any portion of any proposal or reject any or
19all proposals as determined in the best interests of the city.

20(e) The contract award for the project shall be made to the
21private entity or entities whose proposal or proposals are
22determined by the city, in writing, to be the most advantageous by
23providing the best value in meeting the best interests of the city
24and meeting the objectives of the project.

25(f) The negotiation process shall specifically prohibit practices
26that may result in unlawful activity, including, but not limited to,
27rebates, kickbacks, or other unlawful consideration, and shall
28specifically prohibit city employees from participating in the
29selection process when those employees have a relationship with
30a person or business entity seeking a contract under this chapter
31that would subject those employees to the prohibition of Section
3287100. Other than these criteria, the city is not subject to any other
33provisions of the Public Contract Code or this code that relates to
34procurement for the project.

35(g) Notwithstanding any provision of this code, upon issuance
36of an award for the project, the city shall publicly announce its
37award, identifying the private entity or entities to whom the award
38is made, along with a written decision supporting its award and
39stating the basis of the award. All documents related to the project
40shall be subject to disclosure under the California Public Records
P5    1Act (Chapter 3.5 (commencing with Section 6250) of Division 7),
2except those exempted from disclosure under that act.

3

5977.  

(a) The project is subject to compliance with the
4California Environmental Quality Act (Division 13 (commencing
5with Section 21000) of the Public Resources Code). Neither the
6act of selecting a private entity, nor the execution of an agreement
7with the private entity, shall require prior compliance with the act.
8However, appropriate compliance with the act shall thereafter
9occur before project construction commences.

10(b) The public portion of the project, at all times, shall be owned
11by the city, unless the city, in its discretion, elects to provide for
12ownership of the project by the private entity through a separate
13lease agreement during the term of the agreement. Notwithstanding
14Section 5956.6 or any other provision of this code, the agreement
15shall provide for the lease of the project to, or ownership by, the
16private entity or entities, for a term up to 65 years. In consideration
17therefor, the agreement shall provide for complete reversion of the
18project to the city at the expiration of the lease or transfer term.

19(c) The plans and specifications for the project shall comply
20with all applicable governmental design standards for that particular
21infrastructure project. The private entity studying, planning,
22designing, constructing, developing, financing, operating,
23maintaining, or any combination thereof, the project shall utilize
24private sector firms for studying, planning, designing, constructing,
25developing, financing, operating, maintaining, or any combination
26thereof, the project. However, a facility subject to this chapter and
27leased to a private entity, during the term of the lease, shall be
28deemed to be public property for purposes of identification,
29maintenance, enforcement of laws, and for purposes of Division
303.6 (commencing with Section 810). All public works constructed
31pursuant to this chapter shall comply with Chapter 1 (commencing
32with Section 1720) of Part 7 of Division 2 of the Labor Code.

33

5978.  

The provisions of this chapter are severable. If any
34provision of this chapter or its application is held invalid, that
35invalidity shall not affect other provisions or applications that can
36be given effect without the invalid provision or application.

37

5979.  

The Legislature finds and declares that a special law is
38necessary and that a general law cannot be made applicable within
39the meaning of Section 16 of Article IV of the California
40Constitution because of the unique and special circumstances
P6    1surrounding the existing Long Beach Civic Center, and the need
2to immediately, quickly and efficiently develop the project, and
3to resolve property issues potentially delaying the project.



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