BILL NUMBER: AB 1511	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY  AUGUST 31, 2005
	PASSED THE SENATE  AUGUST 29, 2005
	AMENDED IN SENATE  AUGUST 15, 2005
	AMENDED IN SENATE  JUNE 30, 2005
	AMENDED IN SENATE  JUNE 8, 2005
	AMENDED IN ASSEMBLY  MAY 2, 2005

INTRODUCED BY   Assembly Member Evans
   (Principal coauthors: Assembly Members Walters and Wolk)
   (Principal coauthor: Senator Cox)

                        FEBRUARY 22, 2005

   An act to amend Section 20133 of the Public Contract Code,
relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1511, Evans  Design-build contracting.
   Existing law requires public entities to comply with certain
procedures in soliciting and evaluating bids and awarding contracts
for the erection, construction, alteration, repair, or improvement of
any public structure, building, road, or other public improvement.
    Existing law, until January 1, 2006, authorizes certain counties,
with the approval of the board of supervisors, to enter into
design-build contracts, as defined, in accordance with specified
provisions. These provisions require that contracts with a cost
ranging from $10,000,000 to $20,000,000 be awarded to the lowest
responsible bidder, and authorizes contracts costing more than
$20,000,000 to be awarded to the lowest responsible bidder or by best
value.
   This bill would extend the authorization for these contracts to
January 1, 2011, would extend the authorization to contracts with
costs in excess of $2,500,000, would authorize the Counties of Del
Norte, Humboldt, Los Angeles, Mendocino, Napa, and Yolo to use the
design-build process on certain projects, as defined, would delete
the requirement that contracts with costs ranging from $10,000,000 to
$20,000,000 be awarded to the lowest responsible bidder and instead
authorize the counties to award projects using either the lowest
responsible bidder or best value method, and would require counties
utilizing the design-build method and the Legislative Analyst to
submit specified reports by certain dates. This bill would also make
legislative findings and declarations as to the necessity of a
special statute for these counties.
   This bill would incorporate additional changes in Section 20133 of
the Public Contract Code, proposed by SB 287, to be operative only
if SB 287 and this bill are both chaptered and become effective
January 1, 2006, and this bill is chaptered last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 20133 of the Public Contract Code is amended to
read:
   20133.  (a) (1) This section provides for an alternative procedure
on bidding on building construction projects in excess of two
million five hundred thousand dollars ($2,500,000) applicable only in
the Counties of Alameda, Contra Costa, Del Norte, Humboldt, Los
Angeles, Mendocino, Napa, Santa Clara, Solano, Sonoma, and Yolo, upon
the approval of the appropriate board of supervisors.
   (2) These counties may award the project using either the lowest
responsible bidder or by best value.
   (b) (1) It is the intent of the Legislature to enable these
counties to utilize cost-effective options for building and
modernizing public facilities. It is not the intent of the
Legislature to authorize this procedure for transportation
facilities, including, but not limited to, roads and bridges.
   (2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles and
responsibilities of each participant in the design-build process.
The Legislature also finds that the cost-effective benefits to the
counties are achieved by shifting the liability and risk for cost
containment and project completion to the design-build entity.
   (3) It is the intent of the Legislature to provide an alternative
and optional procedure for bidding and building construction projects
for these counties.
   (4) The design-build approach may be used, but is not limited to
use when it is anticipated that it will: reduce project cost,
expedite project completion, or provide design features not
achievable through the design-bid-build method.
   (5) If the board of supervisors elects to proceed under this
section, the board of supervisors shall establish and enforce for
design-build projects a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code, or it
shall contract with a third party to operate a labor compliance
program containing the requirements outlined in Section 1771.5 of the
Labor Code. This requirement shall not apply to any project where
the county or the design-build entity has entered into any collective
bargaining agreement or agreements that bind all of the contractors
performing work on the projects.
   (c) As used in this section:
   (1) "Best value" means a value determined by objective criteria
related to price, features, functions, and life cycle costs.
   (2) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
   (3) "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.
   (4) "Project" means the construction of a building and
improvements directly related and necessary to the construction of a
building, but does not include the construction of other
infrastructure, including, but not limited to, streets and highways,
public rail transit, and water resources facilities and
infrastructure.
   (d) Design-build projects shall progress in a four-step process,
as follows:
   (1) (A) The county shall prepare a set of documents setting forth
the scope of the project. The documents may include, but are not
limited to, the size, type and desired design character of the
buildings and site, performance specifications covering the quality
of materials, equipment, and workmanship, preliminary plans or
building layouts, or any other information deemed necessary to
describe adequately the county's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
   (B) Any architect or engineer retained by the county to assist in
the development of the project specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.
   (2) (A) Based on the documents prepared in paragraph (1), the
county shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the county. The request for proposals shall include,
but is not limited to, the following elements:
   (i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the county to inform interested parties of the
contracting opportunity, to include the methodology that will be used
by the county to evaluate proposals and specifically if the contract
will be awarded to the lowest responsible bidder.
   (ii) Significant factors which the county reasonably expects to
consider in evaluating proposals, including cost or price and all
nonprice-related factors.
   (iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.
   (B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when combined
are:
   (i) Significantly more important than cost or price.
   (ii) Approximately equal in importance to cost or price.
   (iii) Significantly less important than cost or price.
   (C) If the county chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate into
the request for proposal applicable rules and procedures to be
observed by the county to ensure that any discussions or negotiations
are conducted in good faith.
   (3) (A) The county shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by the
county. In preparing the questionnaire, the county shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information including, but not limited to, all of the following:
   (i) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members known at the time of bid
submission who will participate in the design-build contract,
including, but not limited to, mechanical subcontractors.
   (ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, as well as a financial statement
that assures the county that the design-build entity has the capacity
to complete the project.
   (iii) The licenses, registration, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.

   (iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
   (v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (Public Law
91-596), settled against any member of the design-build entity, and
information concerning workers' compensation experience history and
worker safety program.
   (vi) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any instance where an entity, its owners, officers, or
managing employees submitted a bid on a public works project and were
found to be nonresponsive, or were found by an awarding body not to
be a responsible bidder.
   (vii) Any instance where the entity, its owner, officers, or
managing employees defaulted on a construction contract.
   (viii) Any violations of the Contractors' State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
of Federal Insurance Contribution Act (FICA) withholding requirements
settled against any member of the design-build entity.
   (ix) Information concerning the bankruptcy or receivership of any
member of the design-build entity, including information concerning
any work completed by a surety.
   (x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed by a
surety during this period.
   (xi) In the case of a partnership or other association, that is
not a legal entity, a copy of the agreement creating the partnership
or association and specifying that all partners or association
members agree to be fully liable for the performance under the
design-build contract.
   (B) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in civil actions are verified. Information that
is not a public record pursuant to the California Public Records Act
(Chapter 3.5, Division 7, Title 1 of the Government Code) shall not
be open to public inspection.
   (4) The county shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:
   (A) A competitive bidding process resulting in lump-sum bids by
the prequalified design-build entities. Awards shall be made to the
lowest responsible bidder.
   (B) A county may use a design-build competition based upon best
value and other criteria set forth in paragraph (2) of subdivision
(d). The design-build competition shall include the following
elements:
   (i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors shall
each represent at least 10 percent of the total weight of
consideration given to all criteria factors; price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.
   (ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous to
the least.
   (iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.
   (iv) Notwithstanding any provision of this code, upon issuance of
a contract award, the county shall publicly announce its award,
identifying the contractor to whom the award is made, along with a
written decision supporting its contract award and stating the basis
of the award. The notice of award shall also include the county's
second and third ranked design-build entities.
   (v) For the purposes of this paragraph, "skilled labor force
availability" shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of
the preceding five years. This graduation requirement shall not apply
to programs providing apprenticeship training for any craft that has
been deemed by the Department of Labor and the Department of
Industrial Relations to be an apprenticeable craft in the five years
prior to enactment of this act.
   (vi) For the purposes of this paragraph, a bidder's "safety record"
shall be deemed "acceptable" if their experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and their average Total Recordable Injury/Illness rate and average
lost work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
   (e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
   (2) Any payment or performance bond written for the purposes of
this section shall be written using a bond form developed by the
county.
   (f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of paragraph
(3) of subdivision (d) shall be awarded by the design-build entity
in accordance with the design-build process set forth by the county
in the design-build package. All subcontractors bidding on contracts
pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The
design-build entity shall do both of the following:
   (1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the county.
   (2) Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established pursuant
to this section.
   (g) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the county.
   (h) The county may retain the services of a design professional or
construction project manager, or both, throughout the course of the
project in order to ensure compliance with this section.
   (i) Contracts awarded pursuant to this section shall be valid
until the project is completed.
   (j) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.
   (k) (1) If the county elects to award a project pursuant to this
section retention proceeds withheld by the county from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.
   (2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the county and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is
requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the county and the design-build entity from any
payment made by the design-build entity to the subcontractor.
   (l) Each county that elects to proceed under this section and uses
the design-build method on a public works project shall submit to
the Legislative Analyst's Office, before December 1, 2009, a report
containing a description of each public works project procured
through the design-build process and completed after November 1,
2004, and before November 1, 2009. The report shall include, but
shall not be limited to, all of the following information:
   (1) The type of project.
   (2) The gross square footage of the project.
   (3) The design-build entity that was awarded the project.
   (4) The estimated and actual length of time to complete the
project.
   (5) The estimated and actual project costs.
   (6) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
   (7) An assessment of the prequalification process and criteria.
   (8) An assessment of the effect of retaining 5-percent retention
on the project.
   (9) A description of the Labor Force Compliance Program and an
assessment of the project impact, where required.
   (10) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors used
to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
   (11) An assessment of the project impact of "skilled labor force
availability."
   (12) An assessment of the design-build dollar limits on county
projects. This assessment shall include projects where the county
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method of awarding contracts was not used due to dollar
limitations.
   (13) An assessment of the most appropriate uses for the
design-build approach.
   (m) Any county named in subdivision (a) that elects to not use the
authority granted by this section may submit a report to the
Legislative Analyst's Office explaining why the county elected to not
use the design-build method.
   (n) On or before January 1, 2010, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
counties pursuant to this section, including the information listed
in subdivision (l). The report may include recommendations for
modifying or extending this section.
   (o) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
  SEC. 1.5.  Section 20133 of the Public Contract Code is amended to
read:
   20133.  (a) (1) This section provides for an alternative procedure
on bidding on building construction projects in excess of two
million five hundred thousand dollars ($2,500,000) applicable only in
the Counties of Alameda, Butte, Contra Costa, Del Norte, El Dorado,
Fresno, Humboldt, Kings, Los Angeles, Madera, Mariposa, Mendocino,
Merced, Monterey, Napa, Orange, Placer, Sacramento, San Diego, San
Joaquin, San Luis Obispo, Santa Clara, Shasta, Siskiyou, Solano,
Sonoma, Stanislaus, Tulare, Yolo, and Yuba, upon approval of the
appropriate board of supervisors.
   (2) These counties may award the project using either the lowest
responsible bidder or by best value.
   (b) (1) It is the intent of the Legislature to enable these
counties to utilize cost-effective options for building and
modernizing public facilities. It is not the intent of the
Legislature to authorize this procedure for transportation
facilities, including, but not limited to, roads and bridges.
   (2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles and
responsibilities of each participant in the design-build process.
The Legislature also finds that the cost-effective benefits to the
counties are achieved by shifting the liability and risk for cost
containment and project completion to the design-build entity.
   (3) It is the intent of the Legislature to provide an alternative
and optional procedure for bidding and building construction projects
for these counties.
   (4) The design-build approach may be used, but is not limited to
use when it is anticipated that it will: reduce project cost,
expedite project completion, or provide design features not
achievable through the design-bid-build method.
   (5) If the board of supervisors elects to proceed under this
section, the board of supervisors shall establish and enforce for
design-build projects a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code, or it
shall contract with a third party to operate a labor compliance
program containing the requirements outlined in Section 1771.5 of the
Labor Code. This requirement shall not apply to any project where
the county or the design-build entity has entered into any collective
bargaining agreement or agreements that bind all of the contractors
performing work on the projects.
   (c) As used in this section:
   (1) "Best value" means a value determined by objective criteria
related to price, features, functions, and life-cycle costs.
   (2) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
   (3) "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.
   (4) "Project" means the construction of a building and
improvements directly related to the construction of a building, but
does not include the construction of other infrastructure, including,
but not limited to, streets and highways, public rail transit, or
water resources facilities and infrastructure.
   (d) Design-build projects shall progress in a four-step process,
as follows:
   (1) (A) The county shall prepare a set of documents setting forth
the scope of the project. The documents may include, but are not
limited to, the size, type and desired design character of the
buildings and site, performance specifications covering the quality
of materials, equipment, and workmanship, preliminary plans or
building layouts, or any other information deemed necessary to
describe adequately the county's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
   (B) Any architect or engineer retained by the county to assist in
the development of the project-specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.
   (2) (A) Based on the documents prepared in paragraph (1), the
county shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the county. The request for proposals shall include,
but is not limited to, the following elements:
   (i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the county to inform interested parties of the
contracting opportunity, to include the methodology that will be used
by the county to evaluate proposals and specifically if the contract
will be awarded to the lowest responsible bidder.
   (ii) Significant factors which the county reasonably expects to
consider in evaluating proposals, including cost or price and all
nonprice-related factors.
   (iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.
   (B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when combined
are:
   (i) Significantly more important than cost or price.
   (ii) Approximately equal in importance to cost or price.
   (iii) Significantly less important than cost or price.
   (C) If the county chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate into
the request for proposal applicable rules and procedures to be
observed by the county to ensure that any discussions or negotiations
are conducted in good faith.
   (3) (A) The county shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by the
county. In preparing the questionnaire, the county shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information including, but not limited to, all of the following:
   (i) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members known at the time of bid
submission who will participate in the design-build contract,
including, but not limited to, mechanical subcontractors.
   (ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, as well as a financial statement
that assures the county that the design-build entity has the capacity
to complete the project.
   (iii) The licenses, registration, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.

   (iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
   (v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (Public Law
91-596), settled against any member of the design-build entity, and
information concerning workers' compensation experience history and
worker safety program.
   (vi) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any                                            instance
where an entity, its owners, officers, or managing employees
submitted a bid on a public works project and were found to be
nonresponsive, or were found by an awarding body not to be a
responsible bidder.
   (vii) Any instance where the entity, its owner, officers, or
managing employees defaulted on a construction contract.
   (viii) Any violations of the Contractors' State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
of Federal Insurance Contribution Act (FICA) withholding requirements
settled against any member of the design-build entity.
   (ix) Information concerning the bankruptcy or receivership of any
member of the design-build entity, including information concerning
any work completed by a surety.
   (x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed by a
surety during this period.
   (xi) In the case of a partnership or other association, that is
not a legal entity, a copy of the agreement creating the partnership
or association and specifying that all partners or association
members agree to be fully liable for the performance under the
design-build contract.
   (B) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in civil actions are verified. Information that
is not a public record pursuant to the California Public Records Act
(Chapter 3.5, Division 7, Title 1 of the Government Code) shall not
be open to public inspection.
   (4) The county shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:
   (A) A competitive bidding process resulting in lump-sum bids by
the prequalified design-build entities. Awards shall be made to the
lowest responsible bidder.
   (B) A county may use a design-build competition based upon best
value and other criteria set forth in paragraph (2) of subdivision
(d). The design-build competition shall include the following
elements:
   (i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors shall
each represent at least 10 percent of the total weight of
consideration given to all criteria factors; price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.
   (ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous to
the least.
   (iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.
   (iv) Notwithstanding any provision of this code, upon issuance of
a contract award, the county shall publicly announce its award,
identifying the contractor to whom the award is made, along with a
written decision supporting its contract award and stating the basis
of the award. The notice of award shall also include the county's
second and third ranked design-build entities.
   (v) For the purposes of this paragraph, "skilled labor force
availability" shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of
the preceding five years. This graduation requirement shall not apply
to programs providing apprenticeship training for any craft that has
been deemed by the Department of Labor and the Department of
Industrial Relations to be an apprenticeable craft in the five years
prior to enactment of this act.
   (vi) For the purposes of this paragraph, a bidder's "safety record"
shall be deemed "acceptable" if their experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and their average Total Recordable Injury/Illness rate and average
lost work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
   (e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
   (2) Any payment or performance bond written for the purposes of
this section shall be written using a bond form developed by the
county.
   (f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of paragraph
(3) of subdivision (d) shall be awarded by the design-build entity
in accordance with the design-build process set forth by the county
in the design-build package. All subcontractors bidding on contracts
pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The
design-build entity shall do both of the following:
   (1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the county.
   (2) Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established pursuant
to this section.
   (g) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the county.
   (h) The county may retain the services of a design professional or
construction project manager, or both, throughout the course of the
project in order to ensure compliance with this section.
   (i) Contracts awarded pursuant to this section shall be valid
until the project is completed.
   (j) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.
   (k) (1) If the county elects to award a project pursuant to this
section retention proceeds withheld by the county from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.
   (2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the county and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is
requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the county and the design-build entity from any
payment made by the design-build entity to the subcontractor.
   (l) Each county that elects to proceed under this section and uses
the design-build method on a public works project shall submit to
the Legislative Analyst's Office before December 1, 2009, a report
containing a description of each public works project procured
through the design-build process and completed after November 1,
2004, and before November 1, 2009. The report shall include, but
shall not be limited to, all of the following information:
   (1) The type of project.
   (2) The gross square footage of the project.
   (3) The design-build entity that was awarded the project.
   (4) The estimated and actual length of time to complete the
project.
   (5) The estimated and actual project costs.
   (6) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
   (7) An assessment of the prequalification process and criteria.
   (8) An assessment of the effect of retaining 5-percent retention
on the project.
   (9) A description of the Labor Force Compliance Program and an
assessment of the project impact, where required.
   (10) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors used
to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
   (11) An assessment of the project impact of "skilled labor force
availability."
   (12) An assessment of the design-build dollar limits on county
projects. This assessment shall include projects where the county
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method was not used due to dollar limitations.
   (13) An assessment of the most appropriate uses for the
design-build approach.
   (m) Any county named in subdivision (a) that elects to not use the
authority granted by this section may submit a report to the
Legislative Analyst's Office explaining why the county elected to not
use the design-build method.
   (n) On or before January 1, 2010, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
counties pursuant to this section, including the information listed
in subdivision (l). The report may include recommendations for
modifying or extending this section.
   (o) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
  SEC. 2.  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 modernize public facilities
in a cost-effective manner in the Counties of Del Norte, Humboldt,
Los Angeles, Mendocino, Napa, and Yolo.
  SEC. 2.5.  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 modernize public
facilities in a cost-effective manner in Butte, Del Norte, El
Dorado, Fresno, Humboldt, Kings, Los Angeles, Madera, Mariposa,
Mendocino, Merced, Monterey, Napa, Orange, Placer, San Diego, San
Joaquin, San Luis Obispo, Shasta, Siskiyou, Stanislaus, Yolo, and
Yuba Counties.
  SEC. 3.  Section 1.5 of this bill incorporates amendments to
Section 20133 of the Public Contract Code proposed by both this bill
and SB 287. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2006, (2) each
bill amends Section 20133 of the Public Contract Code, and (3) this
bill is enacted after SB 287, in which case Sections 1 and 2 of this
bill shall not become operative and Sections 1.5 and 2.5 of this bill
shall become operative.
  SEC. 4.  It is the intent of the Legislature that this bill shall
not become operative unless both this bill and Senate Bill 287 are
both chaptered and become effective January 1, 2006. If Senate Bill
287 is not chaptered and does not become effective January 1, 2006,
this bill shall not become operative.