SB 562 Senate Bill

BILL NUMBER: SB 562	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 14, 2015

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 amended, 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  all or
a portion of  the project to, or ownership by, a private entity
or entities, for a term of up to  65   50 
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:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The City of Long Beach has experienced an increasing demand to
fund infrastructure repairs, replacements, and new improvements.
   (b) The existing civic center is nearing the end of its useful
life and contains significant seismic deficiencies that the City of
Long Beach seeks to address as soon as feasibly possible to ensure
the public's health and safety.
   (c) The City Council of the City of Long Beach seeks to address
public health and safety in the earliest possible timeframe and
understands that the development of a new Long Beach Civic Center
using the public-private partnership procurement process presents the
most expedient route to protecting the safety of its employees in
and visitors to the civic center.
   (d) The public-private partnership procurement process has
demonstrated precedence for the expedient, efficient, and economical
delivery of projects, through the delivery of the Long Beach
Courthouse, which was completed under budget and ahead of schedule.
   (e) The ability to utilize private sector investment capital is
essential to the  timely  development of a cost-effective
and  time-sensitive   long-lasting  Long
Beach Civic Center.
   (f) A public-private partnership procurement method provides the
City of Long Beach with an alternative and optional procedure for
developing a new civic center that can provide a cost-effective
benefit to the City of Long Beach by shifting the liability and risk
for cost containment, project completion, and life-cycle maintenance
to a private entity.
  SEC. 2.  Chapter 15 (commencing with Section 5975) is added to
Division 6 of Title 1 of the Government Code, to read:
      CHAPTER 15.  LONG BEACH CIVIC CENTER


   5975.  As used in this chapter:
   (a) "Best interests of the city" means a procurement process that
is determined by the city to  reduce the project delivery
schedule and total cost of the project   provide the
best value and an expedited delivery schedule  while maintaining
a high level of quality workmanship and materials.
   (b) "Best value" means a value determined by objective criteria
that  may include, but are not limited to,  
shall include a combination of  price,  financing costs,
 features, functions, performance, life-cycle  costs,
experience, and other criteria deemed appropriate by the city.
  maintenance costs and abatement offsets, and
development experience. 
   (c) "Business entity" means a partnership, corporation, or other
legal entity that is able to provide appropriately licensed
contracting, architectural, engineering, financial, operations,
management, facilities maintenance, and other services for
development of a new  Long Beach  Civic Center.
   (d) "City" means the City of Long  Beach.  
Beach and its departments, including, without limitation, the Harbor
Department.  
   (e) "Long Beach Civic Center" means the area bounded by Broadway,
Pacific Avenue, Ocean Boulevard, and Magnolia Avenue, containing
approximately 14.98 acres, and the parcel on the south side of 3rd
Street between Pacific Avenue and Cedar Avenue, containing
approximately 0.89 acres.  
   (e) 
    (f)  "Private entity" means an individual, business
entity, or combination of individuals and business entities. 
   (g) "Private portion of the project" means those parcels of land
within the Long Beach Civic Center to be conveyed to a private entity
and developed as residential, retail, hospitality, institutional, or
industrial facilities.  
   (f) 
    (h)  "Project" means the revitalization and
redevelopment of the Long Beach Civic  Center, which is
bounded by Broadway, Pacific Avenue, Ocean Boulevard, and Magnolia
Avenue, containing approximately 15.87 acres, and may include
additional property as deemed necessary by the city for the project.
  Center with a new city hall, port headquarters, public
library, and public park, and residential, retail, hospitality,
institutional, and industrial facilities.  
   (i) "Public portion of the project" means those parcels of land
within the Long Beach Civic Center to be developed as a city hall,
port headquarters, public park, public library, or other government
facilities.  
   (g) 
    (j)  "Public-private partnership" means a cooperative
arrangement between the public and private sectors, built on the
expertise of each partner, that best meets the city's needs through
the appropriate allocation of resources, risks, and rewards for the
purposes of, and, including, but not limited to, studying, planning,
designing, constructing, developing, financing, operating,
maintaining, or any combination thereof, the project.
   5976.  (a)  Notwithstanding any provision of the Public
Contract Code or any other law, the   The  city may
contract and procure the project pursuant to this chapter. 
   (b) The city may use a request for qualifications process to
prequalify and shortlist the number of private entities that will be
allowed to submit proposals. The request for qualifications shall
generally describe the project, the private entity's necessary
qualifications and responsibilities, and the procurement process.
 
   (c) The city shall gather information and prepare a solicitation
package for a public-private partnership, which shall generally
describe an approved process for methods of project delivery,
including a project description and requirements, process and
submission requirements, evaluation criteria, or any other
information deemed necessary by the city to describe adequately the
project requirements and procurement process.  
   (d)
    (b)  The city shall evaluate the  project 
proposals  it solicits and receives  and  make its
determination by choosing   choose  the private
entity or entities whose proposal is, or proposals are, judged as
providing the best value in meeting the best interests of the
 city and meeting the objectives of the project. The city
retains the right to hold and enter into a negotiation process with
selected private entities in performing the evaluation and making its
determination.   city.  The city may enter into a
public-private partnership through a  lease-purchase,
  concession agreement, design-build agreement,
design-build-finance agreement, project agreement, 
lease-leaseback, or other appropriate  agreements, with one
or more private entities for delivery of the project. The city may
retain the right to select all or any portion of any proposal or
reject any or all proposals as determined in the best interests of
the city.   agreements combining one or more major
elements of the forgoing agreements, with one or more private
entities for delivery of the project. The city shall retain the right
to terminate the project prior to project award should the city
determine that the project is not in the best interests of the city
or should the negotiations with the private entity or entities
otherwise fail.  
   (e) 
    (c)  The contract award for the project shall be made to
the private entity or entities whose proposal or proposals are
determined by the city, in writing, to be the most advantageous by
providing the best value in meeting the best interests of the
 city and meeting the objectives of the project. 
 city.  
   (f) 
   (d)  The negotiation process shall specifically prohibit
practices that may result in unlawful activity, including, but not
limited to, rebates, kickbacks, or other unlawful consideration, and
shall specifically prohibit city employees from participating in the
selection process when those employees have a relationship with a
person or business entity seeking a contract under this chapter that
would subject those employees to the prohibition of Section 87100.
 Other than these criteria, the city is not subject to any
other provisions of the Public Contract Code or this code that
relates to procurement for the project.  
   (g) Notwithstanding any provision of this code, upon issuance of
an award for the project, the city shall publicly announce its award,
identifying the private entity or entities to whom the award is
made, along with a written decision supporting its award and stating
the basis of the award. All 
    (e)     All  documents related to the
project shall be subject to disclosure under the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division
7), except those exempted from disclosure under that act.
   5977.  (a) The project is subject to compliance with the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code). Neither the act of
selecting a private entity, nor the execution of an agreement with
the private entity, shall require prior compliance with the act.
However, appropriate compliance with the act shall thereafter occur
before project construction commences.
   (b) The public portion of the project, at all times, shall be
owned by the city, unless the city, in its discretion, elects to
provide for ownership of the project by the private entity through a
separate lease  agreement during the term of the 
agreement. Notwithstanding Section 5956.6 or any other provision of
this code, the agreement shall provide for the lease of  all or a
portion of  the project to, or ownership by, the private entity
or entities, for a term up to  65   50 
years. In consideration therefor, the agreement shall provide for
complete reversion of the  public portion of the  project to
the city at the expiration of the lease or transfer term. 
   (c) The private portion of the project shall not be financed or
developed by the public-private partnership or otherwise using public
or tax-exempt financing.  
   (c) 
    (d)  The plans and specifications for the project shall
comply with all applicable governmental design standards for that
particular infrastructure project. The private entity studying,
planning, designing, constructing, developing, financing, operating,
maintaining, or any combination thereof, the project shall utilize
private sector firms for studying, planning, designing, constructing,
developing, financing, operating, maintaining, or any combination
thereof, the project. However, a facility subject to this chapter and
leased to a private entity, during the term of the lease, shall be
deemed to be public property for purposes of identification,
maintenance, enforcement of laws, and for purposes of Division 3.6
(commencing with Section 810). All public works constructed pursuant
to this chapter shall comply with Chapter 1 (commencing with Section
1720) of Part 7 of Division 2 of the Labor Code.
   5978.  The provisions of this chapter are severable. If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
   5979.  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 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.