BILL NUMBER: AB 294	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 31, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011

INTRODUCED BY   Assembly Member Portantino

                        FEBRUARY 9, 2011

   An act to  add Section 133 to, and to  add and repeal
Article 6.3 (commencing with Section 217) of Chapter 1 of Division 1
of  ,  the Streets and Highways Code, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 294, as amended, Portantino.  Design-sequencing
contracts.   Transportation projects: procurement. 

   (1) Existing law, until January 1, 2014, authorizes the
design-build method of procurement to be used for up to 10 local
transportation projects, 5 state transportation projects, and a
specified project in Riverside County. Existing law, until January 1,
2017, authorizes certain transportation agencies to enter into
comprehensive development lease agreements for public-private
partnership transportation projects.  
   This bill, with respect to projects on the state highway system
undertaken pursuant to these provisions, would require the Department
of Transportation to use department employees or consultants under
contract with the department to perform all project development
services and preparation of documents and construction inspection
services, as defined.  
    Until 
    (2)     Until  January 1, 2010, the
Department of Transportation was authorized to conduct a pilot
project to let design-sequencing contracts, as defined, for design
and construction of not more than 12 transportation projects. These
provisions are now repealed.
   This bill would enact new provisions, authorizing the department
to let contracts for construction of not more than 5 transportation
projects utilizing the design-sequencing method, to be effective
until January 1, 2015. The bill would require the department to use
department employees or consultants under contract with the
department  for these design services   to
perform all project development services and preparation of documents
and construction inspection services, as defined  . The bill
would require the department to compile data on the transportation
projects awarded under these provisions and to  include
  make  that information  in a report to
the Legislature   available on its Internet Web site
 each year during which the projects are underway, as specified.

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


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

   SECTION 1.    Section 133 is added to the  
Streets and Highways Code   , to read:  
   133.  Notwithstanding any other provision of law, for a project on
the state highway system to be undertaken under Section 143 or
217.1, or subdivision (b) of Section 6802 of the Public Contract
Code, the department shall use department employees or consultants
under contract with the department to perform all project development
services and preparation of documents as defined in paragraph (1) of
subdivision (f) of Section 143 and Section 6808 of the Public
Contract Code, and construction inspection services as defined in
paragraph (2) of subdivision (c) of Section 6802 of the Public
Contract Code, consistent with Article XXII of the California
Constitution. Department resources, including personnel requirements,
necessary to perform those services shall be included in the
department's capital outlay support program for workload purposes in
the annual Budget Act. 
  SECTION 1.   SEC. 2.   The Legislature
finds and declares all of the following:
   (a) The design-sequencing pilot program was established by
previous state legislation and administered by the Department of
Transportation. The first and second phases of the program authorized
a total of 24 design-sequencing projects and had a sunset date of
January 1, 2010. A report will be submitted to the Legislature that
will describe and evaluate the outcome of the completed projects.
Current design-sequencing indicators have provided generally good
assessments of the program.
   (b) State and federal funds for transportation often require
projects to be awarded under time constraints.
   (c) It is the intent of the Legislature, therefore, to provide the
Department of Transportation with a project delivery tool that has
the potential to increase efficiency, reduce costs incurred by the
state, and help California take advantage of available state and
federal funds.
   (d) It is the intent of the Legislature that the Department of
Transportation be provided with interim authority to establish
design-sequencing contracts. Because current evaluations of the pilot
program show positive outcomes in time savings, the interim
authority will allow design-sequencing to be used as a valuable tool
on appropriately selected projects. This will help the state utilize
state and federal funds as they become available pending conclusions
of the pilot program's final report scheduled for completion in 2015.

   SEC. 2.  SEC. 3.   Article 6.3
(commencing with Section 217) is added to Chapter 1 of Division 1 of
the Streets and Highways Code, to read:

      Article 6.3.  Design-Sequencing Program


   217.  The following definitions apply for the purposes of this
article:
   (a) "Design-sequencing" is a method of contracting that enables
the sequencing of design activities to permit each construction phase
to commence when design for that phase is complete, instead of
requiring design for the entire project to be completed before
commencing construction.
   (b) A "design-sequencing contract" is a contract between the
department and a construction contractor in which the department is
the responsible agency for, and performs the design of, a project
that permits construction of the project to commence upon completion
of design for a construction phase.
   217.1.  (a) Notwithstanding Section 10120 of the Public Contract
Code, the department, at the director's discretion, may let contracts
for construction of not more than five transportation projects, to
be selected based on criteria established by the director, utilizing
the design-sequencing method. For the purpose of this article, these
projects shall be deemed public works. 
   (b) The department shall use department employees or consultants
under contract with the department to perform all design services
related to the design of plans for contracts authorized in this
article, consistent with Article XXII of the California Constitution.
Department resources, including personnel requirements, necessary
for the performance of those services shall be included in the
department's capital outlay support program for workload purposes in
the annual Budget Act.  
   (c) 
    (b)  To the extent available, the department shall seek
to incorporate existing knowledge and experience on design-sequencing
contracts in carrying out its responsibilities under subdivision
(a).
   (d) Not later than July 1 of each year during which projects
pursuant to design-sequencing contracts awarded under this article
are underway, the department shall, for each of those projects,
compile data, including the stage of completion, district, cost,
description, status, estimated time to complete the project, and, as
appropriate, actual time to complete the project,  to be
included as an attachment to any annual status reporting performed by
the department pursuant to Section 3 of Chapter 795 of the Statutes
of 2004, on design-sequencing projects awarded prior to January 1,
2011. The reports and attachments described in this subdivision shall
be submitted to the Legislature pursuant to Section 9795 of the
Government Code.   and shall make this information
available on its public Internet Web site. 
   217.2.  Design-sequencing contracts under the program, as
described in Section 217.1, shall be awarded in accordance with both
of the following:
   (a) The department shall advertise design-sequencing projects by
special public notice to contractors.
   (b) Contractors shall be required to provide prequalification
information establishing appropriate licensure and successful past
experience with the proposed work.
   217.3.  The department may utilize design-sequencing authority
only on projects that are deemed to have a high probability of
success as determined by the "Design-Sequencing Project Selection
Criteria" contained in the "Design-Sequencing Nomination Fact Sheet"
developed by the department. For the purposes of this section, "high
probability" means there is a likelihood that a time savings will be
realized, construction costs will be reduced, or available state or
federal funds will be captured by utilizing design-sequencing.
   217.4.  This article shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.