BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 729|
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                                 THIRD READING


          Bill No:  AB 729
          Author:   Evans (D)
          Amended:  6/30/09 in Senate
          Vote:     21

           
           SEN. TRANSPORTATION & HOUSING COMMITTEE  :  11-0, 6/23/09
          AYES:  Lowenthal, Huff, Ashburn, DeSaulnier, Harman,  
            Hollingsworth, Kehoe, Oropeza, Pavley, Simitian, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  9-1, 7/13/09
          AYES:  Kehoe, Cox, Corbett, Denham, Leno, Price, Wolk,  
            Wyland, Yee
          NOES:  Walters
          NO VOTE RECORDED:  Hancock, Oropeza, Runner

           ASSEMBLY FLOOR  :  73-0, 5/14/09 - See last page for vote


           SUBJECT  :    Transit design-build contracts

           SOURCE  :     California Transit Association


           DIGEST  :    This bill extends the authority of transit  
          agencies to enter into design-build contracts until January  
          1, 2015.

           ANALYSIS  :    

           Existing Law

           1.Defines design-build" as a procurement process in which  
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            both the design and construction of a project are  
            procured from a single entity.

          2.Authorizes a transit operator to enter into design-build  
            procurement contracts for rail construction projects with  
            a value greater than $25 million.

          3.Requires a transit operator to have a labor compliance  
            program, or establish a labor compliance program only for  
            design-build projects.  These provisions do not apply to  
            projects if the operator or the design-build entity has  
            entered into a collective bargain agreement that binds  
            all contractors doing work on the design-build contract  
            or to any other project of the transit operator.

          4.Prohibits the use of design-build authority by a transit  
            district to construct projects on state highways or local  
            streets and roads.

          5.Sunsets the design-build authority on January 1, 2011.

          6.Requires a transit operator that uses the design-build  
            process to report to the Legislative Analyst on each  
            public works project procured through the design-build  
            process within 120 days of the design-build project being  
            put into operation or by December 1, 2005, whichever  
            occurs first.

          This bill extends the design-build authority for transit  
          operators until 
          January 1, 2015, and extends, until January 1, 2015, the  
          requirement that a transit operator, that uses the  
          design-build process, to report to the Legislative Analyst  
          on each public works project procured through the  
          design-build process within 120 days of the design-build  
          project being put into operation.  
           
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)








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           Major Provisions                2009-10     2010-11     2011-12     
             Fund 

          Transit design-buildpotential savings from expedited  
          project   Various*
                              delivery, potential cost pressures

          Local mandate                                     no state  
          costs, local claim disclaimer                            
          Local

          *Transit project funding could be from any combination of  
          local, federal, and state funds (Public Transportation  
          Account special funds and Proposition 1B bond funds,  
          including Transit System Safety, Security, and Disaster  
          Response Account).

           SUPPORT  :   (Verified  7/14/09)

          California Transit Association (source)
          Alameda-Contra Costa Transit District
          American Council of Engineering Companies of California
          American Federation of State, County and Municipal  
          Employees
          Mendocino Transit Authority
          Orange County Transportation Authority
          Peninsula Corridor Joint Powers Board
          Riverside County Transportation Commission
          San Diego Association of Governments
          San Francisco Bay Rapid Transit District
          San Mateo County Transit District
          Santa Clara Valley Transportation Authority
          Self-Help County Coalition
          Valley Industry and Commerce Association
          Ventura County Transportation Commission

           OPPOSITION  :    (Verified  7/14/09)

          Associated Builders and Contractors of California

           ARGUMENTS IN SUPPORT  :    According to the sponsor,  
          Proposition 1B, the Highway Safety, Traffic Reduction Air  
          Quality and Port Security Bond Act of 2006, and a  
          combination of local and federal revenue are expected to  







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          fund transit projects that will reach the final design and  
          construction phase between now and 2015 and will be able to  
          use the design-build provisions this bill extends.

           ARGUMENTS IN OPPOSITION  :    The Associated Builders and  
          Contractors of California (BC)are opposed to this bill  
          because of labor provisions in existing law (that are not  
          the subject of this bill) related to transit design-build  
          authorization, which ABC believes creates an unfair  
          contracting environment.  
           

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Anderson, Arambula, Beall, Bill Berryhill,  
            Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Ammiano, Fuentes, Gaines, Garrick,  
            Saldana, Smyth, Bass


          JJA:cm  7/14/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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