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HomeMy WebLinkAboutMINUTES - 04052005 - SD6 TO: Board of Supervisors Contra FROM: Transportation, Water and Infrastructure Committee Costa (Supervisor Mary Nejedly Piepho, Chair) - DATE: March 14, 2005 ra---vim County SUBJECT: POSITIONS ON TRANSPORTATION BILLS IN THE STATE LEGISLATURE SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT the following positions on transportation bills in the State Legislature as recommended by the Transportation, Water and Infrastructure Committee. Support: AB 508 (Richman, D-Northridge) — design-build contracts for Caltrans AB 1170 (Canciamilla, D-Pittsburg) —joint-use agreements with BART SB 371 (Torlakson, D-Antioch)—design-build contracts for state, local agencies Watch: AB 1699 (Frommer, D-Glendale)—design-build contracts for certain counties SB 1024 (Perata, D-Alameda) — bonds for seismic work on state-owned bridges SB 1027 (Perata, D-Alameda)— port-related improvements and mitigations FISCAL IMPACT NONE. BACKGROUND/REASONS FOR RECOMMENDATIONS The Transportation, Water and Infrastructure on March 14 had its first discussion on transportation legislation in the new session of the State Legislature. The County's transportation advocacy firm,Smith Watts Company of Sacramento,provided background on bills relevant to the County's adopted transportation legislative platform for 2005. As a result of the discussions,the Transportation,Water and Infrastructure Committee recommends the positions on bills listed above. More information follows on each of these bills. Attached to this Board Order are Exhibit A, which shows the County's transportation legislative goals for 2005;and Exhibit B,which includes the full text of each of bill in the same rder in which the bills are listed on the next page. CONTINUED ON ATTACHME X YES _ RECOMMENDATION OFC UNTY MI ISTRATOR =RECOMMENDATION OF BOARD COMMITTEE .APPROVE T ARgEM SIGNATURES : erviso a Nejedly Pie ho Supervisor Federal D. I G ove r ACTION OF BOARD ON APRIL 5, 2005 APPROVED AS RECOMMENDED _ OTHER X PLEASE SEE ATTACHED ADDENDUM. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS ATRUE X UNANIMOUS (ABSENT V AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: John Greitzer (925/335-1201) cc: Community Development Department (CDD) ATTESTED _APRIL 5. 2005 J. Bueren, PWD JOHN SWEETEN, CLERK OF S. Hoffman, CAO THE BOARD OF SUPERVISORS M. Watts, Smith Watts Co. ND COUNTY ADMINISTRATOR BY , DEPUTY GATransportation7WIMBoard Ordersllegislation april 5_2005 BOS.doc POSITIONS ON TRANSPORTATION BILLS IN THE STATE LEGISLATURE March 14, 2005 Page 2 BACKGROUND/REASONS FOR RECOMMENDATIONS (Continued} Bills recommended for "support" position: AB 508(Richman,D-Northridge)—design-build contracts for Caltrans—This bill would authorize Caltrans to use design-build contracts for state highway infrastructure projects. Typically Caltrans awards a contract for the design and engineering of a highway project, and when that work is completed,another contract is awarded for construction. A design-build contract authorizes both the design and construction in one contracting process, saving time and thereby saving cost. This is consistent with County goal#7, streamlining the delivery of transportation projects. AB 1170 (Canciamilla, D-Pittsburg) —joint-use agreements with BART — This bill would authorize BART to enter into joint-use agreements with counties. Current law authorizes BART to enter into joint-use agreements with cities, public utilities and transit agencies, but doesn't expressly authorize such agreements with counties. This bill could assist in development of joint-use facilities at the Pittsburg/Bay Point BART Station or at the proposed eBART station in Byron, for example. This is consistent with County goal #2, supporting regional coordination and goal #8, supporting better linkage of transportation and land use planning. SB 371 (Torlakson, D-Antioch)—design-build contracts for state, local agencies—This bill would allow the state, local transportation authorities, and state-designated regional transportation agencies the ability to use design-build contracts until January 1, 2011. Such contracts can save time and cost, as noted in the summary of AB 508 above. This is consistent with County goal #7, streamlining the delivery of transportation projects. Bills recommended for a "watch" position: AB 1699 (Frommer, D-Glendale) — design-build contracts for certain counties —This bill would grant design-build authorization specifically to San Diego County,the Santa Clara Valley Transportation Authority, the Los Angeles County Metropolitan Transportation Authority, the Santa Cruz County Regional Transportation Commission, and the Monterey County Transportation Agency. It is possible that additional agencies could be added to the bill, although Smith Watts didn't know of any specific intentions to do so. This relates to County goal #7, streamlining the delivery of transportation projects. SB 1024(Perata, D-Alameda)—bonds for seismic work on state-owned bridges—This bill would authorize an as-yet undetermined amount of general obligation bonds for "essential facilities"throughout the state including toll bridges and hospitals, subject to voter approval. Of the total amount, $3.22 billion would be designed for seismic work on state-owned toll bridges. This relates to County goal #1, supporting increased transportation funding and goal #4, supporting safety improvements throughout the transportation system. SB 1027 (Perata, D-Alameda)—port-related improvements and mitigations—This bill would enact a policy statement by the Legislature, indicating it is the state's belief that improvement or expansion plans by ports should take into account the impacts on surrounding neighborhoods. The bill contains no detail; Senator Perata's staff has indicated more detail may be added later in the Legislative session. This relates to County goal #10, supporting efforts to improve port security and reduce ports' impacts on neighboring communities. The bill may warrant further review by the Board of Supervisors if detail is added. Additional legislative topic: Proposition 42 transportation funds The Transportation,Water and Infrastructure Committee also reviewed several bills that would protect transportation funds generated from Proposition 42, a constitutional amendment approved by the voters in 2000. Proposition 42 directs revenue generated from the state sales tax on gasoline to go into transportation projects and programs instead of the General Fund,where this revenue historically had gone. Between 2001 and 2003,the County directly received$9.3 million from Proposition 42 for road maintenance and repair. Beginning in 2003, Governor Davis and then Governor Schwarzenegger (with approval of the Legislature) suspended the diversion of revenue from the General Fund. Proposition 42 permits this if a state fiscal crisis is declared. The County is again scheduled to receive a direct distribution of nearly$3.2 million for road maintenance and repair from Proposition 42 in FY 05/06, but the Governor is again proposing suspension of these distributions. Several bills have been introduced that would prohibit this from happening in the future, or require any such shifts to be repaid to the transportation program in a specified time period, or enact other protections for these funds. Smith Watts indicated there will be a consolidation of some or all of these bills and a dominant bill will emerge to deal with Proposition 42 transportation funds, but it isn't yet known exactly which solution will have the best chance of passage or what the consensus bill will look like. The Transportation, Water and Infrastructure Committee therefore chose to wait for more information before recommending positions on any of the Proposition 42 bills. ADDENDUM TO ITEM SD,.6 April 5, 2005 On this day, the Board of Supervisors considered adopting positions on transportation legislation, as recommended by the Transportation, Water and Infrastructure Committee. John Greitzer, Community Development Department,presented the report. The public was invited to address the Board. No one appeared to speak. Supervisor Piepho requested the Chair be authorized to send letters of thanks to the delegation that is working hard in Washington as well as in Sacramento to supplement the County's priority in the Transportation funding projects going on in the State in federal budgets. The Board of Supervisors took the following action by unanimous decision,with Supervisor Glover being absent, and ADOPTED the recommended action positions on transportation legislation. At the request of Supervisor Piepho, the following recommendation was also added: • AUTHORIZED the Chair to send letters to congressional representatives in Washington and Sacramento to thank them for their efforts related to the three bills the Board moved to support today. EXHIBIT A Contra Costa County Goals for State Transportation Legislation ire 2005 Adopted by the Board of Supervisors on November 30, 2004 Goal objectives 1. SUPPORT increased transportation I a)Additional state fielding for Caldecott Tunnel 4bBore project. funding and protection of current 1b)State funding assistance for acquisition of the Union Pacific's Mococo railroad line transportation funding. for use in East County commuter rail service. I c)New funding sources to improve transportation in Contra Costa County,provided the new source doesn't shift any additional fiends away from the state's General Fund. Id)Extend existing transportation funding programs that benefit Contra Costa County. I e)Protect existing sources of transportation funds from reduction or elimination. If)Seek funding to meet the growing number of unfunded federal mandates such as ADA requirements,storinwater requirements,and habitat preservation requirements. 2. SUPPORT regional coordination in 2a),Improve coordination and delivery of transit and paratransit service. addressing transportation needs. 2b) Coordinated provision of rail services throughout Contra Costa County 2c) Seek mitigation of casinos' traffic impacts through the state tribal compact negotiation process. 3. SUPPORT efforts to expand school 3a)Increase funding for school transportation services. transportation services and improve 3b)Improve coordination between school districts and local jurisdictions in siting and coordination between school districts plai umg school facilities. and local jurisdictions on school Siting 3c)Provide safer access for walking and bicycling to school,including routes to school, and planning. crossing guards,and other items. 4.SUPPORT efforts to improve safety 4a)New and expanded programs that improve safety for bicyclists,pedestrians and throughout the transportation system wheelchair users(including awareness and education programs as well as infrastructure improvements for safety) 4b)Measures to improve Safety on high-accident transportation facilities,such as establishing a double-fine 'zone on Vasco Road. 4c)Measures to improve the effectiveness of the statewide traffic accident database,such as including GPS location data for every reported accident,to assist in safety analysis and planning. 5. SUPPORT efforts to advance inter- 5a)Multi-agency participation in creating the Brentwood Tracy Expressway(also known as regional corridor improvements. State Route 239)with San Joaquin and Alameda Counties,local agencies,Caltrans District 4, Caltrans District 10,and Caltrans headquarters. 5b)State funding and planning assistance with the Brentwood Tracy Expressway(SR 239) project. 5c)Funding for cooperative efforts with Alameda County to improve safety and operations on Vasco Road and widen it to four lanes. 5d)State assumption of maintenance and operations for Vasco Road as State Route 84. G. SUPPORT funding or incentives for 6a)State grant programs,tax credits for manufacturers,state purchasing programs,or the use of renewable resources in other incentives for local jurisdictions to use recycled materials such as the rubberized transportation construction projects. asphalt(made from recycled tires)that the County has used as paving material on San Pablo Dam Road and Pacheco Boulevard. EXHIBIT B CALIFORNIA LEGISLATURE-2005-o6REGULAR SESSION ASSEMBLY BILL No. 508 Introduced by Assembly Member Richman February 16, 2005 An act to add Section 90.5 to the Streets and Highways Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 508, as introduced, Richman. Department of Transportation: design-build contracting. Existing law makes the Department of Transportation responsible for improving and maintaining the state highway system. Under existing law, until January 1, 2010, the department is authorized to utilize design sequencing as an alternative contracting method for the design and construction of not more than 12 transportation projects. This bill would authorize the department to use the design-build procurement process for its state highway construction contracts. Vote.- majority. Appropriation.* no. Fiscal conunittee: no. State-mandated local program: no. The people of the State of California do enact as follows; I SECTION 1. Section 90.5 is added to the Streets and 2 Highways Code, to read: 3 90.5. (a) Notwithstanding any other provision of law, the 4 department may contract for the construction of state highways 5 using the design-build process. The department may use the 6 design-build process set forth in Section 14661 of the 7 Government Code for these purposes. 99 AB 508 —2- 1 (b) "Design-build" means a procurement process in which 2 both the design and construction of a project are procured from a 3 single entity. D 99 CALIFORNIA LEGISLATURE 20o5—o6 REGULAR SESSION ASSEMBLY BILL No. 1170 Introduced by Assembly Member Canclamilla February 22, 2005 An act to amend Section 29034 of the Public Utilities Code,relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 1170, as introduced'. Canciamilla. San Francisco Bay Area Rapid Transit District:joint use agreements. Existing law creates the San Francisco Bay Area Rapid Transit District to construct and operate a rail transit system in the Bay Area. Existing law authorizes the district to enter into agreements for the joint use of any property and rights by the district and any city,public agency, or public utility operating transit facilities for various cooperative ventures relative to transit service. This bill would specifically authorize cooperation in that regard between the district and a county. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: I SECTION 1. Section 29034 of the Public Utilities Code is 2 amended to read: 3 29034. The district may enter into agreements for the joint use 4 of any property and rights by the district and any city, county, 5 public agency or public utility operating transit facilities; may 6 enter into agreements with any city, county, public agency or 7 public utility operating any transit facilities, either wholly or 99 AB 1170 2- 1 partially within, or without, the district, for the joint use of any 2 property of the district or of such city, county, public agency or 3 public utility, or the establishment of through routes,joint fares, 4 transfer of passengers or pooling arrangements. 0 99 SENATE BILL No. 371 Introduced by Senator Torlakson February 17, 2005 An act to add and repeal Article 6.9 (commencing with Section 20209.20) of Chapter I of Part 3 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSELS DIGEST SB 371, as introduced, Torlakson. Public contracts: design—build contracting: transportation entities. (1) Existing law sets forth requirements for the solicitation and evaluation of bids and the awarding of contracts by public entities for the erection, construction, alteration, repair, or improvement of any public structure,building,road,or other public improvement. Existing law also authorizes specified state agencies, cities, and counties to implement alternative procedures for the awarding of contracts on a design—build basis. Existing law, until January 1. 2007, authorizes transit operators to enter into a design—build contract, as defined, according to specified procedures. This bill would authorize, until January 1. 2011, certain state and local transportation entities to use a design—build process for bidding on highway construction projects, as specified. This bill would establish a procedure for submitting bids that includes a requirement that design—build entity bidders provide certain information in a questionnaire submitted to the transportation entity that is verified wider oath.-Because a verification under oath is made under penalty of perjury, the bill would, by requiring a verification, create a new crime and thereby impose a state-mandated local program. The bill would require these transportation entities to report to the Legislature regarding implementation of the design-build process. 99 SB 371 —2 (2) This bill would require the Bureau of State Audits to conduct a preproject and postproject audit of each project and to compare them to similar design-bid-build or design sequencing projects and report the results to the Legislature, as provided. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact asfollows.- I SECTION 1. Article 6.9 (commencing with Section 2 20209.20) is added 'to Chapter I of Part 3 of Division 2 of the 3 Public Contract Code, to read: 4 5 Article 6.9. Transportation Design-Build Contracts 6 7 20209.20. The Legislature finds and declares all of the 8 following: 9 (a) It is the intent of the Legislature,in enacting this article,to: 10 (1) Demonstrate an alternative and optional procedure for 11 bidding on highway, bridge, tunnel,or public transit construction 12 projects in the jurisdiction of any county, any local transportation 13 authority designated pursuant to Division 19 (commencing with 14 Section 180000) of the Public Utilities Code, or any local or 15 regional transportation entity that is designated by statute as a 16 regional transportation agency. 17 (2) Authorize the Department of Transportation to 18 demonstrate an alternative bidding procedure for highway, 19 bridge, or tunnel.projects on the state highway system. 20 (b) (1) Transportation entities should be able to utilize 21 cost-effective options for delivery of highway projects, in 22 accordance with the national .trend, that includes authorizing 23 public entities to utilize design-build contracts as a project 24 delivery method. 99 -3— SB 371 1 (2) Utilizing a design-build contract requires a clear 2 understanding of the roles and responsibilities of each participant 3 in the design-build process. The benefits of a design-build 4 contract project delivery system include an accelerated 5 completion of the projects, cost containment, reduction of 6 construction complexity, and reduced exposure to risk for the 7 transportation entity. 8 (3) This approach toward the design-build project delivery 9 method should be evaluated for the purposes of exploring the 10 potential for reduced project costs, expedited project completion, 11 or design features not achievable through the design-bid-build 12 method. 13 (c) For the purposes of this demonstration,, it is important to 14 select projects for which ftinding has been identified or 15 programmed and are ready or are near ready for construction. It 16 is also important to select projects that range in cost for the 17 demonstration program. 18 (d) These projects are subject to the existing process under the 19 state transportation improvement program (Chapter 2 20 (commencing with Section 14520) of Part 5.3 of Division 3 of 21 the Government Code) for planning, programming, 22 environmental clearance, and funding. Projects that are 23 ultimately chosen for demonstration of the design-build 24 collaboration project delivery method under this article shall 25 comply with all existing requirements under the state 26 transportation improvement program for project development 27 and funding. This article does not confer any type of competitive 28 advantage upon the projects in this article, relative to other 29 projects subject to the state transportation improvement program,, 30 during other phases of project development. 31 20209.22. For the purposes of this article, the following 32 definitions apply: 33 (a) "Best value" means a value determined by objective 34 criteria, including, but not limited to, price, features.' fimctions, 35 life cycle costs, and other criteria deemed appropriate by the 36 transportation entity. 37 (b) "Design-build" means a procurement process in which 38 both the design and construction of a project are procured from a 39 single entity. 99 SB 371 —4— I (c) "Design-build entity" means a partnership, corporation, or 2 other legal entity that is able to provide appropriately licensed 3 contracting, architectural, and engineering services as needed 4 pursuant to a design-build contract. 5 (d) "Department" means the Department of Transportation as 6 established under Part 5 (commencing with Section 14000) of 7 Division 3 of the Government Code. 8 (e) "Local transportation entity" means a transportation 9 authority designated pursuant to Division 19 (commencing with 10 Section 180000) of the Public Utilities Code and any other local 11 or regional transportation entity that is designated by statute as a 12 regional transportation agency. 13 (f) "Transportation entity" means the department and a local 14 transportation entity. 15 20209.23. (a) A local transportation entity may utilize the 16 design-build method of procurement for highway, bridge, tunnel, 17 or public transit projects within the jurisdiction of the entity. 18 (b) The department may utilize the design-build method of 19 procurement for highway,bridge, or tunnel projects. 20 20209.24. A transportation entity shall implement for 21 design-build projects a labor compliance program as described in 22 Section 1771.5 of the Labor Code,,or it shall contract with a third 23 party to implement on the entity's behalf a labor compliance 24 program described in that statute. This requirement does not 25 apply to any project where the transportation entity or the 26 design-build entity has enteredinto any collective bargaining 27 agreement or agreements that bind all of the contractors 28 performing work on the projects. 29 20209.26. Bidding for design-build projects shall progress as 30 follows: 31 (a) The transportation entity shall prepare a set of documents 32 setting forth the scope of the project. The documents may 33 include, but need not be limited to, the size, type, and desired 34 design character of the project, performance specifications 35 covering the quality of materials, equipment, and workmanship, 36 preliminary plans, and any other information deemed necessary 37 to describe adequately the transportation entity's needs. The 38 performance specifications and any plans shall be prepared by a 39 design professional who is duly licensed and registered in 40 California. 99 SB 371 1 (b) Based on the documents prepared under subdivision (a), 2 the transportation entity shall prepare a request for proposals that 3 invites interested parties to submit competitive sealed proposals 4 in the manner prescribed by the transportation entity.The request 5 for proposals shall include, but need not be limited to, the 6 following elements: 7 (1) Identification of the basic scope and needs of the project or 8 contract, the expected cost range, the methodology that will be 9 used by the transportation entity to evaluate proposals, whether 10 the contract will be awarded to the lowest responsible bidder,and 11 any other information deemed necessary by the transportation 12 entity to inforin interested parties of the contracting opportunity. 13 (2) Significant factors that the transportation entity reasonably 14 expects to consider in evaluating proposals, including, but not 15 limited to, cost or price and all nonprice related factors. 16 (3) The relative importance of the weight assigned to each of 17 the factors identified in the request for proposals. 18 (4) If a nonweighted system is used, the transportation entity 19 shall specifically disclose whether all evaluation factors other 20 than cost or price when combined are any of the following: 21 (A) Significantly more important than cost or price.- 22 (B) Approximately equal in importance to cost or price. 23 (C) Significantly less important than cost or price. 24 (5) If the transportation entity reserves the right to hold 25 discussions or negotiations with responsive bidders, it shall so 26 specify in the request for proposals and shall publish separately 27 or incorporate into the request for proposals applicable rules and 28 procedures to be observed by the transportation entity to ensure 29 that any disc'ussions or negotiations are conducted in good faith. 30 (c) (1) The transportation entity shall establish a procedure to 31 prequalify design-build entities using a standard questionnaire 32 prepared by the transportation entity. In preparing the 33 questionnaire, the transportation entity shall consult with the 34 construction industry, including, but not limited to, 35 representatives of the building trades and surety industry. This 36 questionnaire shall require information including,but not limited 37 to, all of the following.- 1 38 (A) If the design-build entity is a partnership, limited 39 partnership, or other association, a listing of all of the partners, 99 SB 371 —6- 1 general partners, or association members known at the time of 2 bid submission who will participate in the design-build contract. 3 (B) (i) Evidence that the lead member of the design-build 4 entity has completed a state highway project in California with a 5 value of at least fifty million dollars*($50,000,000)in the past 10 6 years. 7 (ii) Evidence that the members of the design-build entity have 8 completed, or demonstrated the ,experience, competency, 9 capability, and capacity to complete projects of similar size, 10 scope, or complexity, and that proposed key personnel have 11 sufficient experience and training to competently manage and 12 complete the design and construction of the project, and a 13 financial statement that assures the transportation entity that the 14 design-build entity has the capacity to complete the project. 15 (C) The licenses,, registration, and credentials required to 16 design and construct the project, including, but not limited to, 17 information on the revocation or suspension of any license, 18 credential, or registration. 19 (D) Evidence that establishes that the design-build entity has 20 the capacity to obtain all required payment and performance 21 bonding, liability insurance, and errors and omissions insurance. 22 (E) Information concerning workers'compensation experience 23 history and a worker safety program. 24 (F) A full disclosure regarding all of the following that are 25 applicable: 26 (i) Any serious or willful violation of Part I (commencing 27 with Section 6300)of Division 5 of the Labor Code or the federal 28 Occupational Safety and Health Act of 1970 (Public Law 29 91-596), settled against any member of the design-build entity. 30 (ii) Any debarment, disqualification, or removal from a 31 federal, state, or local government public works project. 32 (iii) Any instance where the design-build entity, or its owners, 33 officers, or managing employees submitted a bid on a public 34 works project and were found to be nonresponsive,or were found 35 by an awarding body not to be a responsible bidder. 36 (iv) Any instance where the design-build entity, or its owners, 37 officers, or managing employees defaulted on a construction 38 contract. 39 (v) Any violations of the Contractors' State License Law,, as 40 described in Chapter 9 (commencing with Section 7000) of 99 -7- SB 371 1 Division 3 of the Business and Professions Code, excluding 2 alleged violations of federal or state law regarding the payment 3 of wages, benefits, apprenticeship requirements, or personal 4 income tax withholding, or Federal Insurance Contribution Act 5 (FICA) withholding requirements settled against any member of 6 the design-build entity. 7 (vi) Any bankruptcy or receivership of any member of the 8 design-build entity, including, but not limited to, information 9 concerning any work completed by a surety. 10 (vii) Any settled adverse claims,,disputes, or lawsuits between I I the owner of a public works project and any member of the 12 design-build entity during the five years preceding submission of 13 a bid under this article, in which the claim, settlement, or 14 judgment exceeds fifty thousand dollars ($50,000). Information 15 shall also be provided concerning any work completed by a 16 surety during this five-year period. 17 (G) In the case of a partnership or any association that is not a 18 legal entity, a copy of the agreement creating the partnership or 19 association that specifies that all partners or association members 20 agree to be fully liable for the performance under the 21 design-build contract. 22 (2) The information required under this subdivision shall be 23 verified under oath by the design-build entity and its members in 24 the manner in which civil pleadings in civil actions are verified. 25 Information required under this subdivision that is not a public 26 record under the California Public Records Act, as described in 27 Chapter 3.5 (commencing with Section 6250) of Division 7 of 28 Title I of the Governi-nent Code, shall not be open to public 29 inspection. 30 (d) The transportation entity shall establish a procedure for 31 final selection of the design-build entity. Selection shall be based 32 on either of the following criteria: 33 (1) A competitive bidding process resulting in lump-sum bids 34 by the prequalified design-build entities. Awards shall be made 35 to the lowest responsible bidder. 36 (2) A design-build competition based upon best value and 37 other criteria set forth in subdivision (b). The design-build 38 competition shall include the following elements: 39 (A) Competitive proposals shall be evaluated by using only 40 the criteria and selection procedures specifically identified in the 99 SB 371 —8— I request for proposal. However, the following minimum factors 2 shall each represent at least 10 percent of the total weight of 3 consideration given to all criteria factors: 4 (i) Price. 5 (ii) Technical design and construction expertise. 6 (iii) Life cycle costs over 15 years or more. 7 (iv) Skilled labor force availability, determined by the 8 existence of an agreement with a registered apprenticeship 9 program, which program has been approved by the California 10 Apprenticeship Council. 11 (v) An acceptable safety record. A bidder's safety record shall 12 be deemed acceptable if its experience modification rate for the 13 most recent three-year period is an average of 1.00 or less, and its 14 average total recordable injury/illness rate and average lost work 15 rate for the most recent three-year period does not exceed the 16 applicable statistical standards for its business category or if the 17 bidder is a party to an alternative dispute resolution system as 18 provided for in Section 3201.5 of the Labor Code. 19 (B) When the evaluation is complete, the top three responsive 20 bidders shall be ranked sequentially from the most advantageous 21 to the least advantageous. 22 (C) The award of the contract shall be made to the responsible 23 bidder whose proposal is determined to be the most 24 advantageous. 25 (D) Notwithstanding any other provision of this code, upon 26 issuance of a contract award, the transportation entity shall 27 publicly announce its award, identifying the contractor to whom 28 the award is made, along with a written decision supporting its 29 contract award and stating the basis of the award. The notice of 30 award shall also include the transportation entity's second and 31 third ranked design-build entities. 32 (E) The written decision supporting the transportation entity's 33 contract award, described in subparagraph (D), and the contract 34 file shall provide sufficient information to satisfy an external 35 audit. 36 20209.27. (a) A firm that is hired or paid by a transportation 37 entity to perform prebid services for a project shall not bid or join 38 with another company to bid for that project's design-build 39 contract. 99 9— SB 371 I (b) For purposes of this article, prebid services include 2 preliminary engineering studies and other activities that lead to 3 the selection of a project alternative. These activities include,but 4 are not limited to,-the following: 5 (1) Project geometric design. 6 (2) Earthwork calculations. 7 (3) Preparation of cross sections. 8 (4) Drainage design. 9 (5) Construction staging design. 10 20209.28. (a) Any design-build entity that is selected to 11 design and build a project under this article shall possess or 12 obtain sufficient bonding to cover the contract amount for 13 nondesign services, and errors and omission insurance coverage 14 sufficient to cover all design, engineering, and architectural 15 services provided in the contract. This section does not prohibit a 16 general or engineering contractor from being designated the lead 17 entity on a design-build project for the purposes of purchasing 18 necessary bonding to cover the activities of the design-build 19 entity. 20 (b) Any payment or performance bond written for the 21 purposes of this article shall be written using a bond form 22 developed by the Department of General Services under 23 subdivision(g) of Section 14661 of the Government Code. 24 20209-30. All bids by subcontractors bidding on contracts 25 under this article shall be subject to Chapter 4(commencing with 26 Section 4100) of Part I of Division 2. The design-build entity 27 shall do both of the following: 28 (a) Provide public notice of the availability of work to be 29 subcontracted in accordance with the publication requirements 30 applicable to the competitive bidding process of the 31 transportation entity. 32 (b) Provide a fixed date.and time on which the subcontracted 33 work will be awarded,which awards shall be made in accordance 34 with the procedure established under this article for awarding a 35 design-build contract. 36 20209.32. A deviation from the performance criteria and 37 standards established under subdivision (a) of Section 20209.26 38 shall not be authorized except by written consent of the 39 transportation entity. 99 SB 371 _10- 1 20209.34. (a) A local transportation entity shall consult with 2 the department .in identifying projects to be performed on the 3 state highway system. 4 (b) The department shall establish the parameters for the 5 extent of the participation of its employees under this article. 6 20209.36. Quality-control inspection for the construction of 7 any project utilizing the design-build method of procurement 8 authorized by this article may not be performed by the 9 design-build contractor for the project. 10 20209.38. Nothing in this article affects, expands, alters, or 11 limits any rights or remedies otherwise available at law. 12 20209.40. (a) The retention proceeds withheld by a 13 transportation entity from a design-build entity shall not exceed 5 14 percent. 15 (b) The transportation entity shall not withhold retention from 16 payments to a design-build entity for actual costs incurred and 17 billed or design services, construction management services, or 18 where applicable, for completed operations and maintenance 19 services. 20 (c) In a contract between a design-build entity and a 21 subcontractor, and in a contract between a subcontractor and any 22 subcontractor thereunder, the percentage of the retention 23 proceeds withheld shall not exceed the percentage specified in 24 the contract between the transportation entity and the 25 design-build entity. If the design-build entity provides written 26 notice to any subcontractor who is not a member of the 27 design-build entity,, prior to or at the time that the bid is 28 requested, that a bond may be required and the subcontractor 29 subsequently is unable or refuses to furnish a bond to the 30 design-build entity, then the design-build entity may withhold 31 retention proceeds in excess of the percentage specified in the 32 contract between the transportation entity and the design-build 33 entity from any payment made by the design-build entity to the 34 subcontractor. 35 (d) In accordance with applicable state law, the design-build 36 entity may be permitted to substitute securities in lieu of-the 37 withholding from progress payments specified in subdivision(b). 38 These substitutions shall be made in accordance with Section 39 22300. 99 SB 371 1 20209.42. Not later than three years after the design-build 2 contract is awarded, the transportation entity shall submit a 3 progress report to the Senate Committee on Transportation, and 4 the Assembly Committee on Transportation. The progress report 5 shall include, but shall not be limited to, all of the following 6 information: 7 (a) A description of the project. 8 (b) The estimated and actual project costs. 9 (c) The design-build entity that was awarded the project. 10 (d) A description of any written protests concerning-any aspect 11 of the solicitation, bid, proposal, or award of the design-build 12 project, including, but not limited to, the resolution of the 13 protests. 14 (e) An assessment of the prequalification process and criteria. 15 (f) An assessment of the impact of limiting retention to 5 16 percent on the project, as required under Section 20209-40. 17 (g) A description of the labor compliance program required 18 under Section 20209.24 and an assessment of the impact of this 19 requirement on a project. 20 (h) A description of the method used to award the contract. If 21 best value was the method, the factors used to evaluate the bid 22 shall be described, including the weighting of each factor and an 23 assessment of the effectiveness of the methodology. 24 (i) An assessment of the impact that the "skilled labor force 25 availability" requirement imposed under clause (iv) of 26 subparagraph (A) of paragraph (2) of subdivision (d) of Section 27 20209.26 has had on the project. 28 0) Recommendations regarding the most appropriate uses for 29 the design-build method of procurement. 30 20209.44. This article shall remain in effect only until January 31 19 2011, and as of that date is repealed. 32 SEC. 2. The Bureau of State Audits shall conduct a preproject 33 and postproject audit of each project and compare them to similar 34 design-bid-build or design sequencing projects and report the 35 results to the Legislature. The bureau shall deliver each final 36 report on a project to the Legislature after the project has been in 37 operation for five years. 38 SEC. 3. No reimbursement is required by this act pursuant to 39 Section 6 of Article XIII B of the California Constitution because 40 the only costs that may be incurred by a local agency or school 99 SB 371 —12- I district will be incurred because this act creates a new crime or 2 infraction, eliminates a crime or infraction, or changes the 3 penalty for a crime or infraction, within the meaning of Section 4 17556 of the Government Code, or changes the definition of a 5 crime within the meaning of Section 6 of Article XIII B of the 6 California Constitution. Q 99 CALIFORNIA LEGISLATURE 2005-o6 REGULAR SESSION ASSEMBLY BILL No. 1699 Introduced by Assembly Member Frommer February 22, 2005 An act to add Article 6.9 (commencing with Section 20209-20) to Chapter I of Part 3 of Division 2 of the Public Contract Code,relating to public contracts. LEGISLATIVE COUNSELS DIGEST AB 1699, as introduced, Frommer. Highway construction contracts: design-build projects. Existing law sets forth requirements for the solicitation and evaluation of bids and the awarding of contracts by public entities for the erection, construction, alteration, repair, or improvement of any public structure,building,road,or other public improvement.Existing law also authorizes specified state agencies, cities, and counties to implement alternative procedures for the awarding of contracts on a design-build basis. This bill would state the intent of the Legislature to authorize certain transportation authorities to use a design-build process for bidding on one highway construction project within the jurisdiction of the applicable transportation authority. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: I SECTION 1. Article 6.9 (commencing with Section 2 20209.20) is added to Chapter I of Part 3 of Division 2 of the 3 Public Contract Code, to read: 99 AB 1699 2- 1 Article 6.9. Transportation Authority Design-Build 2 Collaboration Contracts 3 4 20209.20. The Legislature finds and declares all of the 5 following: 6 (a) It is the intent of the Legislature, in enacting this article, to 7 demonstrate an alternative and optional procedure for bidding on 8 one highway construction project each in the jurisdiction of any 9 transportation authority established in the County of San Diego 10 under Chapter 2 (commencing with Section 132000) of Division 11 12.7 of the Public Utilities Code, the Santa Clara Valley 12 Transportation Authority established under Part 12(commencing 13 with Section 100000) of the Public Utilities Code, the Los 14 Angeles County Metropolitan Transportation Authority 15 established under Section 130050.2 of the Public Utilities Code, 16 the Santa Cruz County Regional Transportation Commission 17 established under Title 7.94(commencing with Section 67940)of 18 the Government Code, and the Transportation Agency of 19 Monterey County established under Title 7.92(commencing with 20 Section 67920)of the Government Code. 21 (b) (1) These transportation authorities should be able to 22 utilize cost-effective options for delivery of highway projects, in 23 accordance with the national trend, that includes authorizing 24 public entities to utilize design-build contracts as a project 25 delivery method while collaborating with employees from the 26 Department of Transportation. 27 (2) Utilizing a design-build contract requires a clear 28 understanding of the roles and responsibilities of each participant 29 in the design-build process. The benefits of a design-build 30 contract project delivery system include an accelerated 31 completion of the projects, cost containment, reduction of 32 construction complexity, and reduced exposure to risk for the 33 transportation authority. 34 (3) This collaborative approach toward the design-build 35 project delivery method should be evaluated for the purposes of 36 exploring the potential for reduced project costs, expedited 37 project completion, or design features not achievable through the 38 design-bid-build method. 39 (c) These projects are subject to the existing process under the 40 state transportation improvement program (Chapter 2 99 3 AB 1699 1 (commencing with Section 14520) of Part 5.3 of Division 3 of 2 the Government Code) for planning, programming, 3 environmental clearance, and funding. It is the intent of the 4 Legislature that projects that are either identified in this article or 5 ultimately chosen for demonstration of the design-build 6 collaboration project delivery method under this article would 7 comply with all existing requirements under the state 8 transportation improvement program for project development 9 and funding. It is the intent of the Legislature that this article 10 would not confer any type of competitive advantage upon the . 11 projects in this article, relative to other projects subject to the 12 state transportation improvement program,during other phases of 13 project development. O 99 SENATE BILL No. 1024 Introduced by Senators Perata and Torlakson February 22, 2005 An act to add Chapter 12.49(commencing with Section 8879.20)to Division I of Title 2 of the Government Code, relating to seismic improvements by providing the funds necessary therefor through the issuance and sale of bonds of the State of California and by providing for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSELS DIGEST SB 1024, as introduced, Perata. Seismic improvements: bond measure. (1) Existing law sets forth a funding plan for the seismic retrofit or replacement of certain state-owned toll bridges by the Department of Transportation. Existing law, pursuant to Proposition 192 of 1996, provides $2 billion: in voter-approved general obligation bond funds for state highway and toll bridge seismic work. Existing law imposes certain seismic safety requirements on hospitals. This bill would enact the Essential Facilities Seismic Retrofit Bond Act of 2005 to authorize an unspecified amount in state general obligation bonds for the seismic retrofit of essential facilities throughout the state, including toll bridges and hospitals,, subject to voter approval. Of the total amount of the bond measure, $3.22 billion would be.. designated for seismic work on toll bridges and an unspecified amount would be designated for seismic work on hospitals. This bill would require the Secretary of State to submit the proposed bond measure to the voters at an unspecified election. This bill would require the Department of Transportation to report on its expenditure of toll bridge funds and would authorize the 99 SB 1024 —2— department to use bond funds to reimburse other state transportation accounts for costs associated with a rebid of the contract to construct the replacement east span of the San Francisco-Oakland Bay Bridge. The bill would enact other related provisions. This bill would declare that it is to take effect immediately as an urgency measure. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State- mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Chapter 12.49 (commencing with Section 2 8879.20) is added to Division 1 of Title 2 of the Government 3 Code, to read: 4 5 CHAPTER12.49. ESSENTIAL FACILITIES SEISMIC RETROFIT BOND ACT 7 g Article 1. General Provisions 9 10 8879.20. (a) This chapter shall be known as the Essential 11 Facilities Seismic Retrofit Bond Act of 2005. 12 (b) This chapter shall only become operative upon adoption by 13 the voters at the November election. 14 8879.21. (a) The Legislature finds and declares that the 15 completion of seismic safety retrofit work on state-owned toll 16 bridges and on non-profit, county, and nu-al hospitals is essential 17 to the welfare and economy of the state. 18 (b) The purpose of this bond act is to pay for the completion 19 of the state Toll Bridge Seismic Safety Retrofit Program 20 (TBSSRP) as expeditiously as possible and to provide state 21 assistance to non-profit, county, and rural hospitals so that they 22 can make seismic safety improvement to hospital facilities 23 consistent with the requirements under the Alfred E. Aiquist 24 Hospital Seismic Safety Act of 1973 (Sections 130000 to 25 1300701,inclusive,of the Health and Safety Code)as amended by 26 SB 1953 (Chapter 740 of the Statutes of 1994). 27 (c) The Department of Transportation notified the Legislature 28 on August 16, 2004, that the costs to complete the TBSSR.P 29 exceeded the authorized budget contained in Section 188.5 of the 99 -3 SB 1024 1 Streets and Highways Code by three billion two hundred twenty 2 million dollars ($3,220,000,000). 3 (d) The expeditious completion of the TBSSRP is essential to 4 the welfare and economy of the state and to the safety of the 5 nearly 300,000 daily motorists who use the state-owned toll 6 bridges requiring seismic retrofit work. 7 (e) The department shall take all actions necessary to proceed 8 as expeditiously as possible to seismically retrofit the 9 Richmond-San Rafael Bridge and to replace the eastern span of 10 the San Francisco-Oakland Bay Bridge with a new, seismically 11 safe structure, as described in paragraph(9) of subdivision(b)of 12 Section 188.5 of the Streets and Highways Code. 13 (f) It was the original intent of the Legislature to fund the 14 TBSSRP with the proceeds of bonds through the enactment of 15 SB 146 (Chapter 310 of the Statutes of 1995), which placed 16 Proposition 192 on the ballot in March, 1996. Proposition 192 17 was overwhelmingly approved by the voters on March 26, 1996, 18 but provided only a small fraction of the increased amount of 19 ftmding required to complete the TBSSRP. 20 (9) It is the intent of the Legislature to fund the remaining 21 three billion two hundred twenty million dollars 22 ($3,220,000,000) needed to complete the TBSSRP from the 23 proceeds of bonds made available by this chapter upon approval 24 by the voters at the November election. 25 (h) The department shall report within 30 days of the end of 26 each month to the Joint Legislative Budget Committee, the 27 committees in each house of the Legislature that consider 28 transportation issues, the Department of Finance, the California 29 Transportation Commission, and the Bay Area Toll Authority 30 (BATA) regarding the department's progress toward completion 31 of the TBSSRP and the use of funds made available to it by this 32 act. 33 (i) The Legislature intends,'with the adoption of this chapter, 34 to meet the state's obligation and duty to complete the TBSSRP 35 without forcing the unprogramming of other transportation 36 projects or the reallocation of transportation finds from other 37 high-priority projects throughout the state. 38 0) Proceeds made available under this act may be used by the 39 department to reimburse state transportation accounts for funds 40 utilized by the department to rebid the contract to construct the 99 SB 1024 4 1 main span of the San Francisco-Oakland Bay Bridge consistent 2 with paragraph(9)of subdivision(b)of Section 188.5 Streets and 3 Highways Code. 4 (k) With respect to the completion of the TBSSRP, bond 5 monies from this act in the amount of three billion two hundred 6 twenty million dollars ($3,220,000,000) are to be used 7 exclusively to pay for the costs that exceed those enumerated in 8 Section 188.5 of the Streets and Highways Code to complete the 9 retrofit of the Richmond-San Rafael Bridge and the replacement 10 of the eastern span of the San Francisco-Oakland Bay Bridge as 11 described in paragraph(9) of subdivision(b)of that section. 12 (1) With respect to seismic retrofit of non-profit, county and 13 rural hospitals, bond monies from this act in the amount of 14 ($�) shall be used to provide assistance to nonprofit, county,. 15 and rural hospitals in order to allow these hospitals to meet their 16 seismic safety requirements in current law. 17 8879.22. As used in this chapter,the following terms have the 18 following meanings: 19 (a) "Board" means any department receiving an allocation 20 from the Department of Finance. 21 (b) "Committee" means the Essential Facilities Seismic 22 Retrofit Finance Committee created pursuant to Section 8879.27. 23 (c) "Fund" means the Essential Facilities Seismic Retrofit 24 Bond Fund of 2005 created pursuant to Section 8879.23. 25 26 Article 2. Essential Facilities Seismic Retrofit Bond Fund and 27 Program 28 29 8879.23. The Essential Facilities Seismic Retrofit Bond Fund 30 of 2005 is hereby created in the State Treasury. The proceeds of 31 bonds issued and sold pursuant to this chapter for the purposes 32 specified in this chapter are hereby appropriated, without regard 33 to fiscal years, to the Department of Finance for allocation in the 34 following manner: 35 (a) Three billion two hundred twenty million dollars 36 ($3,220,000,000) for the seismic retrofit of state-owned 37 highways and bridges, including toll bridges,,throughout the 38 state. Funds allocated by the California Transportation 39 Commission for this purpose shall be deposited in the 2005 40 Seismic Retrofit Account, which is hereby created in the fund, 99 -5 SB 1024 1 and, upon deposit, are continuously appropriated to the 2 Department of Transportation. Funds may be used to match any 3 available federal funds for transportation purposes or may be 4 used without matching federal funds to reconstruct,, replace., or 5 retrofit state-owned highways and bridges, including toll bridges. 6 (b) dollars ($______) to provide state assistance to 7 nonprofit, county, and rural hospitals so that they can make 8 seismic safety improvement to hospital facilities consistent with 9 the requirements under the Alfred E. Alquist Hospital Seismic 10 Safety Act of 1973 (Sections 130000 through 130070 of the 11 Health and Safety Code) as amended by SB 1953 (Chapter 740 12 of the Statutes of 1994). 13 8879.24. (a) The Department of Transportation shall only use 14 funds specified in subdivision (a) of Section 8879.23 for seismic 15 retrofit of state-owned toll bridges and bridges in augmentation 16 of the funds identified in Section 188.5 of the Streets and 17 Highways Code. 18 (b) The Director of Finance shall provide written notification 19 to the Chair of the Joint Legislative Budget Committee of the 20 date when the proceeds of the Essential Facilities Seismic 21 Retrofit Bond Act of 2005 have been fully expended for the 22 purposes specified in subdivision(a). 23 24 Article 3. Fiscal Provisions 25 26 8879.25. Bonds in the total amount of dollars 27 exclusive of reftinding,bonds,, or so much thereof as 28 is necessary, are hereby authorized to be issued and sold for 29 carrying out the purposes expressed in this chapter and to 30 reimburse the General Obligation Bond Expense Revolving Fund 31- pursuant to Section 16724.5. All bonds herein authorized which 32 have been duly sold and delivered as provided herein shall 33 constitute valid and legally binding general obligations of the 34 state) and the full faith and credit of the state- is hereby pledged 35 for the punctual payment of both principal and interest thereof. 36 8879.26. The bonds authorized by this chapter shall be 37 prepared, executed, issued, sold,paid, and redeemed as provided 38 in' the State General Obligation Bond Law (Chapter 4 39 (commencing with Section 16720) of Part 3 of Division 4). 40 except Section 16727, and all of the other provisions of that law 99 SB 1024 —6 1 as amended from tune to time apply to the bonds and to this 2 chapter and are hereby incorporated in this chapter as though set 3 forth in full in this chapter. 4 8879.27. (a) Solely for the purpose of authorizing the 5 issuance and sale, pursuant to the State General Obligation Bond 6 Law, of the bonds authorized by this chapter, the Essential 7 Facilities Seismic Retrofit Finance Committee is hereby created. 8 For the purposes of this chapter, the Essential Facilities Seismic 9 Retrofit Finance Committee is "the committee" as that term is 10 used in the State General Obligation Bond Law. The committee 11 consists of the Treasurer, the Controller, the Director of Finance, 12 and the Secretary of the Business, Transportation and Housing 13 Agency, or a designated representative of each of those officials. 14 The Treasurer shall serve as the chairperson of the committee. A 15 majority of the committee may act for the committee. 16 (b) The committee may adopt guidelines establishing 17 requirements for administration of its financing programs to the 18 extent necessary to protect the validity of, and tax exemption for, 19 interest on the bonds. The guidelines shall not constitute'rules, 20 regulations, orders, or standards of general application. 21 (c) For the purposes of the State General Obligation Bond 22 Law-, any department receiving an allocation from the 23 Department of Finance is designated to be the"board." 24 8879.28. Upon request of the board stating that funds are 25 needed for toll bridge or hospital seismic retrofit purposes, the 26 committee shall determine whether or not it is necessary or 27 desirable to issue bonds authorized pursuant to this chapter in 28 order to carry out the actions specified-in Section 8879.23,and,if 29 so, the amount of bonds to be issued and sold. Successive issues 30 of bonds may be authorized and sold to.carry out those actions 31 progressively, and be sold at any one time. Bonds may bear 32 interest subject to federal income tax. 33 8879.29. There shall be collected annually, in the same 34 manner and at the same time as other state revenue is collected, a 35 sum of money in addition to the ordinary revenues of the state, 36 sufficient to pay the principal of, and interest on, the bonds as 37 provided herein, and all officers required by law to perform any 38 duty in regard to the collections of state revenues shall collect 39 that additional sum. 99 -7 SB 1024 1 8879.30. Notwithstanding Section 13340, there is hereby 2 appropriated from the General Fund in the State Treasury,for the 3 purposes of this chapter,an amount that will equal the total of the 4 following: 5 (a) The sum annually necessary to pay the principal of, and 6 interest on, bonds issued and sold pursuant to this chapter, as the 7 principal and interest become due and payable. 8 (b) The sum which is necessary to, carry out Section 8879.32, 9 appropriated without regard to fiscal years. 10 8879.31. The board may request the Pooled Money 11 Investment Board to make a loan from► the Pooled Money 12 Investment Account, in accordance with Section 16312, for 13 purposes of this chapter. The amount of the request shall not 14 exceed the amount of the unsold bonds which the committee has, 15 by resolution, authorized to be sold for the purpose of this 16 chapter, less any amount withdrawn pursuant to Section 8879.32. 17 The board shall execute any documents as required by the Pooled 18 Money Investment Board to obtain and repay the loan. Any 19 amount loaned shall be deposited in the fund to be allocated in 20 accordance with this chapter., 21 8879.32. For the purpose of carrying out this chapter, the 22 Director of Finance may, by executive order, authorize the 23 withdrawal from the General Fund of any amount or amounts not 24 to exceed the amount of the unsold bonds which the committee 25 has, by resolution, authorized to be sold for the purpose of 26 carrying out this chapter. Any amounts withdrawn shall be 27 deposited in the Essential Facilities Seismic Retrofit Bond Fund 28 of 2005. Any money made available under this section shall be 29 returned to the General Fund, plus the interest that the amounts 30 would have earned in the Pooled Money Investment Account, 31 from money received from the sale of bonds which would 32 otherwise be deposited in that fund. 33 8879.33. The bonds may be refunded in accordance with 34 Article 6 (commencing with Section 16780)of the State General 35 Obligation Bond Law. Approval by the electors of this act shall 36 constitute approval of any refunding bonds issued pursuant to the 37 State General Obligation Bond Law. 38 8879.34. Notwithstanding anything in the State General 39 Obligation Bond Law, the maximum maturity of any bonds 40 authorized by this chapter shall not exceed 30 years from the date 99 SD 1024 -8 1 of each respective series. The maturity of each series shall be 2 calculated from the date of each series. 3 8879.35. The Legislature hereby finds and declares that, 4 inasmuch as the proceeds from the sale of bonds authorized by 5 this chapter are not "proceeds of taxes" as that term is used in 6 Article XIII B of the California Constitution, the disbursement of 7 these proceeds is not subject to the limitations imposed by that 8 article. 9 8879.36. Notwithstanding any provision of the State General 10 Obligation Bond Law with regard to the proceeds from the sale 11 of bonds authorized by this chapter that are subject to investment 12 under Article 4 (commencing with Section 16470) of Chapter 3 13 of Part 2 of Division 4, the Treasurer may maintain a separate 14 account for investment earnings, order the payment of those 15 earnings to comply with any rebate requirement applicable under 16 federal law, and may otherwise direct the use and investment of 17 those proceeds so as to maintain the tax-exempt status of those 18 bonds and to obtain any other advantage under federal law on 19 behalf of the funds of this state. 20 SEC. 2. Section I of this act shall become operative upon 21 adoption by the voters of the Essential Facilities Seismic Retrofit 22 Bond Act of 2005, as set forth in Section I of this act. 23 SEC. 3. (a) Notwithstanding Sections 9040, 9043, 9044, 24 9061, and 9094 of the Elections Code, or any other provision of 25 law, the Secretary of State shall submit Section I of this act to 26 the voters at the November election. 27 (b) The Secretary of State shall ensure the placement of 28 Section I of this act on the November election ballot, in 29 substantial compliance with any statutory time requirements 30 applicable to the submission of statewide measures to the voters 31 at a statewide election. 32 (c) The Secretary of State shall include, in the ballot pamphlet 33 mailed pursuant to Section 9094 of the Elections Code, the 34 information specified in Section 9084 of that code regarding the 35 bond act contained in Section I of this act. 36 SEC. 4. Notwithstanding any other provision of law, all 37 ballots shall have printed thereon and in a square thereof, the 38 words: "Essential Facilities Seismic Retrofit Bond Act of 2005," 39 and in the same square under those words, the following in 40 8-point type: "This act provides for a bond issue of dollars 99 -9 SB 1024 1 to provide funds for an essential facilities seismic retrofit 2 program."Opposite the square,there shall be left spaces in which 3 the voters may place a cross in the manner required by law to 4 indicate whether they vote for or against the act. 5 Where the voting in the election is done by means of voting 6 machines used pursuant to law in the manner that carries out the 7 intent of this section, the use of the voting machines and the 8 expression of the voters' choice by means thereof are in 9 compliance with this section. 10 SEC. 5. This act is an urgency statute necessary for the 11 immediate preservation of the public peace, health, or safety 12 within the meaning of Article IV of the Constitution and shall go 13 into immediate effect. The facts constituting the necessity are: 14 In order for this act to be submitted to voters at the earliest 15 possible time, it is necessary for this act to take effect 16 immediately. 0 99 SENATE BILL No. 1027 Introduced by Senator Perata February 22, 2005 An act to amend Section 1690 of the Harbors and Navigation Code, relating to ports and harbors. LEGISLATIVE COUNSEL'S DIGEST SB 1027, as introduced, Perata. Ports.- harbors.- operations. Existing law provides for the regulation of ports and harbors in the state. This bill would modify certain declarations of legislative intent relating to ports and harbors. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program.- no. The people of the State of California do enact as follows: I SECTION 1. Section 1690 of the Harbors and Navigation 2 Code is amended to read: 3 1690. The Legislature finds and declares all of the following.- 4 (a) The state has a compelling interest in the suee ejjlcient 5 operation of her ports and harbors because they provide 6 asil6psiti-I'leant considerable economic benefit to the state in terms of 7 jobs, personal income, business revenue, and taxes, and because 8 their operations present external impacts, including, but not 9 limited to, air quality issues, traffic congestion, and highway 10 safety issues, that must be, and can be, mitigated through greater Il efficiency. 12 (b) Ports and harbors are the vital interface between water and 13 land transportation for trade with the Pacific Rim countries and 14 other trade. 99 SB 1027 2- 1 (c) Historically, California's ports and harbors have been 2 self-supporting. 3 (d) The report of the California Transportation Commission 4 entitled "Improving Access to California's Ports," dated 5 February 1990, found that$897 million is needed for port access 6 transportation projects. 7 (e) In addition to port access transportation projects, there is a 8 need for new harbor facilities and to restore facilities damaged in 9 the Loma Prieta earthquake. 10 (f) Because of shrinking federal and state funding and the 11 increasing demand for those limited funds, ports and harbors are 12 no longer able to finance projects of this magnitude without a 13 new ftmding mechanism. 14 (g) It is the intent of the Legislature to assist in the reduction 15 of local borrowing costs, help accelerate the construction, repair, 16 and maintenance of port capital improvements, and promote 17 greater use of existing and new financial instruments and 18 mechanisms. 0 99