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Home My WebLink About20 LEGISLATIVE REPT-AB 642, 1815, 3034 & SB 619 05-06-08Agenda Item ~~ ,. Reviewed: ~ ~ ~~%!~ V 1`1V ~,l r ~C-1 ~1 O~~ City Manager .,, ~~'~~,~ Finance Director NIA MEETING DATE: MAY 6, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: LEGISLATIVE REPORTS FOR AB 642, AB 1815, AB 3034, SB 619 SUMMARY At the request of Council Member Bone, staff has reviewed AB 642, AB 1815, AB 3034, SB 619 and staff is recommending that that the City send a letter of support for AB 642 and continue to monitor AB 1815, AB 3034, SB 619. RECOMMENDATION Staff recommends that that the City send a letter of support for AB 642 and continue to monitor AB 1815, AB 3034, SB 619. FISCAL IMPACT There is no fiscal impact associated with this item. BACKGROUND Council Member Bone has requested staff to review the following state bills: AB 642 (Wolk) Design-build: counties, cities, and special districts. Existing law authorizes all counties in California to employ design-build contracting for the construction of buildings, improvements directly related to the construction of buildings, and county wastewater facilities. It also specifically authorizes the Cities of Victorville and Stanton and the cities within Yolo and Solano Counties to employ design-build contracting for the construction of buildings and improvements directly related to the construction of buildings and authorizes the Orange County Sanitation District to employ design-build contracting for the construction of wastewater facilities. This Bill authorizes all cities to employ design-build contracting for projects involving the construction of buildings and improvements directly related to the construction of buildings only. It also authorizes cities, counties, and special districts to employ design-build contracting for the construction of wastewater facilities, solid waste management facilities, or water recycling facilities whose cost exceeds $2.5 million. The Bill sunsets this authorization on January 1, 2019, unless subsequent legislation deletes or extends that date. Current Status: 4/16/2008; From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Assembly Committee on Local Government. The California League of Cities supports this bill. AB 1815 (Feuer) California Transportation Infrastructure Funding Task Force. Existing law provides various sources of revenue to fund state highway and local road maintenance, operation, and improvement, including astate-imposed per-gallon fuel tax of 18 cents. This bill would create, until January 1, 2010, the California Transportation Legislative Reports for AB 642, AB 1815, AB 3034, SB 619 May 6, 2008 Page 2 Infrastructure Funding Task Force, with 14 members appointed by the Legislature, Governor, California Transportation Commission, city and county organizations, and other specified entities. The bill would require the task force to hold at least 3 public hearings around the state and to report to the Legislature and Governor by January 1, 2010, on alternatives to the current system of taxing road users through per-gallon fuel taxes. The bill would make legislative findings and declarations in that regard. Status: 4/14/2008; In committee: Set, second hearing. Hearing canceled at the request of author. The California League of Cities supports this bill. AB 3034 (Galgiani) Safe, Reliable High-Speed Passenger Train Bond Act for the 21St Century. Existing law provides for the submission of the Safe, Reliable High-Speed Passenger Train Bond Act for the 21St Century to the voters for approval at the November 4, 2008, general election. Subject to voter approval, the act would provide for the issuance of $9.95 billion of general obligation bonds, $9 billion of which would be available in conjunction with any available federal funds for planning and construction of a high-speed train system pursuant to the business plan of the High-Speed Rail Authority, and $950 million of which would be available for capital projects on other passenger rail lines to provide connectivity to the high-speed train system and for capacity enhancements and safety improvements to those lines. This bill would make various revisions to the bond act to be submitted to the voters. The bill would refer to construction of a high-speed train system consistent with the authority's certified environmental impact report of November 2005, rather than with the final business plan of June 2000. The bill would revise the descriptions of route corridors of the proposed high-speed train system. The bill would require excess revenues from operation of the high-speed train system beyond the amount needed for high-speed train purposes, as determined by the authority, to be used to finance construction of the high- speed train system, and any remaining revenue to be deposited in the General Fund. The bill would require that not more than 10% of bond proceeds be used for environmental studies, planning, and preliminary engineering activities, and would require the authority to have a detailed funding plan for each segment of the system that identifies the full cost of construction and the sources of revenues for that segment, prior to awarding a construction contract for the segment. The bill would require the authority to give priority in selecting segments for construction to those segments that are expected to require the least amount of bond funds as a percentage of total cost of construction, among other considerations. This bill contains other related provisions. Current Status: 4/22/2008; Re-referred to Assembly Committee on Appropriations The California League of Cities has placed this bill on its Watch List. SB 619 (Migden) Public contracts: retention proceeds. Legislative Reports for AB 642, AB 1815, AB 3034, SB 619 May 6, 2008 Page 2 Existing law authorizes the Department of General Services, or any other department with authority to enter into contracts, to contract with suppliers for goods and services. Existing law provides that in a contract between the original contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor, the percentage of retention proceeds withheld cannot exceed the percentage specified in the contract between the public entity and the original contractor. This bill would instead require that retention proceeds not exceed 5% of the payment, as specified, for all contracts entered into on or after a specified date, between a public entity, as defined, and an original contractor, between an original contractor and a subcontractor, and between all subcontractors .This bill contains other related provisions and other existing laws. Status: 9/11/2007; Placed on inactive file on request of Assembly Member Bass. The California League of Cities has taken a position of opposition to this bill. J Tim D. Serlet Director of Public Works/City Engineer DATE Assembly Member Lois Wolk State Capitol Building, Room 3120 Sacramento, CA 95814 Fax Number: 916-319-2108 RE: Notice of Support for AB 642 (Wolk). Design-build. Counties, Cities, and Special Districts Dear Assembly Member Wolk: The City of Tustin supports AB 642, which would allow cities to use design-build contracting for building construction projects as well as wastewater facilities, solid waste management facilities, or water recycling facilities. The City of Tustin believes in giving cities the option to use design-build contracting to make public contracting more efficient. Design-build contracting has shown it is successful in reducing project costs and expediting project completion, both of which are important to cities and our residents. For these reasons, the City of Tustin supports AB 642 and thanks you for your guidance on this issue. Sincerely, Jerry Amante Mayor c: Assembly Member Chuck DeVore , 70th District Assembly Member Todd Spitzer, 71st District Senator Richard Ackerman, 33rd District League of California Cities, Fax #916-658-8240