BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 195|
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THIRD READING
Bill No: AB 195
Author: Hall (D), et al.
Amended: 5/20/13 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 6/12/13
AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Liu
NO VOTE RECORDED: Hernandez
SENATE APPROPRIATIONS COMMITTEE : 6-0, 6/24/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Steinberg
NO VOTE RECORDED: Padilla
ASSEMBLY FLOOR : 59-9, 5/24/13 - See last page for vote
SUBJECT : Counties: construction projects: design-build
SOURCE : California State Association of Counties
County of Los Angeles
County of San Bernardino
County of San Diego
County of Solano
Urban Counties Caucus
DIGEST : This bill extends, from July 1, 2014 to July 1, 2016,
the date on which the statutes authorizing counties to use the
design-build contracting method expire.
ANALYSIS : Existing law allows state and local officials to
use the design-build method to procure both design and
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construction services from a single company before the
development of complete plans and specifications. Under
design-build, the owner contracts with a single entity, which
can be a single firm, a consortium, or a joint venture, to
design and construct a project. Before inviting bids, the owner
prepares documents that describe the basic concept of the
project, as opposed to a complete set of drawings and
specifications of the final product. In the bidding phase, the
owner typically evaluates bids on a best-value basis,
incorporating technical factors, such as qualifications and
design quality, in addition to price.
All counties can use the design-build method to construct
buildings and related improvements and wastewater treatment
facilities that cost more than $2.5 million (SB 416, Ashburn,
Chapter 585, Statutes of 2007). State law requires each county
that uses the design-build method on a public works project
procured and completed between November 1, 2009 and August 1,
2013 to submit a report to the Legislative Analyst's Office
(LAO) before September 1, 2013. On or before January 1, 2014,
the LAO must submit a report to the Legislature on counties' use
of the design-build method. The report must contain specified
information.
This bill extends, from July 1, 2014 to July 1, 2016, the date
on which the statutes authorizing counties to use the
design-build contracting method expire.
Comments
In 2010, the Legislative Analyst's Office investigated five
design-build projects and found that four of those projects were
completed under budget. The LAO noted that counties that have
used design-build generally expressed favorable opinions of the
process. Almost all reported that compared to the traditional
design-bid-build process, it took less staff time to construct a
project and resulted in fewer claims and less litigation. After
considering the LAO's findings and holding a hearing on
counties' use of design-build contracting, legislators passed a
bill extending the county design-build statutes until mid-2014.
That bill also required the LAO to provide the Legislature with
updated information on county design-build projects by the end
of 2013. With just six months between the date the LAO report
is due and the date that the statutes expire, county officials
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worry that legislators won't have enough time to consider
another extension next year. This bill ensures that counties
won't lose their ability to use this successful, cost-effective
project delivery system.
Related Legislation
SB 785 (Wolk) enacts new, uniform statutes governing public
agencies' design-build contracts.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, likely minor
costs to the Department of Industrial Relations to perform
prevailing wage monitoring and enforcement, reimbursed by
counties (State Public Works Enforcement Fund).
SUPPORT : (Verified 6/25/13)
California State Association of Counties (co-source)
County of Los Angeles (co-source)
County of San Bernardino (co-source)
County of San Diego (co-source)
County of Solano (co-source)
Urban Counties Caucus (co-source)
Associated General Contractors
California Chapter of the National electrical Contractors
Association
California Legislative Conference of the Plumbing, Heating, and
Piping Industry
CH2M Hill
Counties of: Kern, Merced, Napa, Orange, Sacramento, Santa
Clara, Sonoma, and Stanislaus
Design-Build Institute of America
Rural County Representatives of California
San Francisco Unified School District
OPPOSITION : (Verified 6/25/13)
AFSCME, AFL-CIO
Air Conditioning Trade Association
Plumbing-Heating-Cooling Contractors Association of California
Professional Engineers in California Government
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Western Electrical Contractors Association
ARGUMENTS IN SUPPORT : Supporters argue that design-build
authority for counties is an effective method of completing
construction projects on time and within or under budget, and
that it has been a useful tool that counties should be able to
continue using in the future.
ARGUMENTS IN OPPOSITION : Opponents contend that design-build
does not guarantee cost savings, reduces competitive bidding,
and lacks impartial inspection procedures, which can put the
public at risk for failed construction projects.
ASSEMBLY FLOOR : 59-9, 5/24/13
AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bradford, Brown, Buchanan,
Ian Calderon, Campos, Chau, Chesbro, Conway, Daly, Eggman,
Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gordon, Gorell,
Gray, Hagman, Hall, Harkey, Roger Hern�ndez, Jones,
Jones-Sawyer, Levine, Linder, Lowenthal, Medina, Mitchell,
Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Perea,
V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas, Stone,
Ting, Wagner, Weber, Wieckowski, Williams, Yamada, John A.
P�rez
NOES: Allen, Ch�vez, Dahle, Donnelly, Beth Gaines, Logue,
Maienschein, Melendez, Patterson
NO VOTE RECORDED: Bonta, Cooley, Dickinson, Grove, Holden,
Mansoor, Pan, Skinner, Waldron, Wilk, Vacancy, Vacancy
AB:nl 6/25/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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