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Home My WebLink About13 COST SVGS INITIAT 03-16-98AG E ,, NO. 13 3-16-98 Inter-Com DATE: TO: FROM: SUBJECT: MARCH 16, 1998 ~¥ILLIAM A. HUSION, CITY MANAGER PUBLIC WORKS DEPARTSIENT/ENGINEERING DIVISION THE "GOVERNq¥IENT COST SAX,~GS AND TAXPAS.'~ER PROTECTION .~MENDMENT" INITIATIVE SUMMARY Adopt resolution 98-19 opposing the "Government CoSt Savings and Taxpayer Protection Amendment" initiative because of the burden placed on local agencies and direct the City Manager tO I forward the re.mlution to the League of Calif°rrda Cities RECOMMENDATION: Adopt resolution 98-19 to oppose the "Government Cost Savings and TaXpayer Protection Amendment" initiative and direct the City Manager to convey the City's position to the Lea~e of California Cities. FISCAL IMPACT: None associated with this action. However, passage of this amendment would result in the City incurring additional project design and processing costs along with increased construction costs. There are no provisions in the initiative to reimburse local agencies for associated implementation costs. BACKGROUND: The Professional Engineers in California Government (PECG) is a labor association repreSenting en~neers employed by the Califorrfia Department of Transportation (caltrans). In response to the Caltrans allowing the awarding of design-build contracts for various toll roads in the state, PECG sponsored a successful signature..gathering effort to place an initiative on the June 1998 ballot that has been labeled the "Government Cost Savings and Taxpayer Protection Amendment". As this measure is a state constitutional amendment, it could only be altered or repealed by another constitutional amendment. DISCUSSION: The proposed measure would impose certain requirements on local agencies. First and foremost, state and local a.oen¢ies (basically defined as all,.aovernmental or quasi governmental agencies except UC, CSU and Comm~mib, College systems that already are required to seek approval at the state level) would be required to obtain state approval before contracts for.en~neering, architectural, landscape architectural, surveying, environmental and en~neering geolo~, sen, ices could be awarded. This requirement would apply to all contracts exceeding $50,000 in which any state funds are utilized and in which the state xvill have ox~mership, I/ability, responsibili~' for constmction, operation or' maintenance. The measure does not apply to construction contracts. The State Controller's office would be required to conduct a cost analysis of proposals by the State Controller to determine whether services can be performed at less cost by utilizing state civil service employees. The measure then requires the award of a contract to the state civil service employees if the Controller's cost analysis determines that civil serv/ce emplo.vees can perform the serx~ices at less cost than a private indMdual or firm. An additional requirement of this measure is that every cOntractor would be required to indemnify the state for all work performed and any legal challenges resulting from the required work. Approval of this state constitutional amenchnent would result in an assortment of impacts that could"have negative consequences for all levels of government and for the taxpayers in the sate. One ce .rminty is that there would be increased sate involvement in w/de variety of local projects. Project delays are likely' due to increased project design and review processes for all applicable projects. Involvement by the state is also likely to result in increased des/bm costs and added state processing fees. These costs xvill place additional burdens on local agencies and Mll not be reimbursed by the sate. A major criticism of this initiative is the fact that there would be little or no accountability at the sate level for project management and quality. The state Controller's office, which has no experience in engineering or architecture, would be responsible for analyzing the proposals from professionals. There would also exist the appearance of a conflict of interest by the state in that they alone would determine whether sate xvorkers should manage a particular project. Additionally, the costs analysis criteria that the sate would use is specified in the text of the initiative and favors sate workers by excluding overhead c6sts that 'any business would be compelled to factor into billing rates. A significant ambiguity in the measure is the lack of a concise defin/fion of the phrase "state funds". The measure defines sate funds as "all money appropriated by the Le~slature for expend/are by the sate or a state agency and all money included in spec/al funds that the state or a sate agency controls". This definition could be taken to an extreme (and likely would-be by PECG) to include money loaned by the state, pass through funds and projects funded from mixed sources even if the state funding source is a. minor percentage.' Transportation projects are the most likely to .be impacted if this initiative is approVed. Current and planned Tustin projects that utilize sate funding or may be considered as state projects under th/s initiative include the Tustin Commuter Rail Sat/On, Nex~q~ort/SR-55 Ramp Reconfiguration and the Edinger Ave/SR-55 Ramps at Del Amo. Many cities, counties and other local agencies have taken a position of opposition t° this measure. A complete list of opponents to this measure is included as an attachment to this report. Based on the above analysis, staff requests the City Council adopt Resolution No. 98-19 to oppose the PECG Government Cost Savings and Taxpayer Protection Amendment initiative and authorize the City Manager to convey the City's position to the Lea~e of California Cities. Public Works Tim D. Seflet ~ Public Works Director/City Engineer TDS:JM:eeg:PECG Initiative Attachmcnls: Resolution Ballot rn~tsure text Initiative opposition list 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 72 25 26 27 28 RESOLUTION NO, 98-19 A RESOLLrrION OF THE CITY COUNCH., OF THE CITY OF TUSTIN, CALIFORNIA OPPOSING THE "GOVERNMENT COST SAVINGS AND · TAXPA~R PROTECTION AMENDMENT" INITIATIVE WItERK4~S, State, regional and local govemments are currently allowed the flexibility to conuact with private firms, on a competitive basis to design public projects; and WltEREAS, This prOcess allows government at all levels the ability to use private firms to deliver a project on-time and cost effectively; and WltE~S, The "Government Cost Savings and Taxpayers Protection Amendment'' to the California Constitution. completely changes the process by giving the state bureaucracy a virtual monopoly on design every project; and WgERK~,S, This state constitutional amendment will force cities, counties, schools, special districts,, regional governments and many private businesses to use the stale bureaucracy to design roms, parks, hospitals, health clinics, schools, water treatment facilities, flood control facilities, and other critical structures, including all engineering, design, geological and environmental work4 and "WItEREAS, The initiative gives one elected official, the State Controller, enormous power to decide who gets tens of thousands of proposed contracts per year potentially worth billions of dollars; and ' . .WKERE,~S, The state controller would have to analyze tens of thousands of proposed contracts per year costing taxpayers hundreds of thousands of dollars, if not millions, in additional expenses; and WBEREAS, To meet potential workload demands, hundreds, if not thousands, of additiOnal state employees would be required to perform the tasks required to implement this initiative; and WltE~S, Local governments would not be able to hold the state bureaucracy accountable; and WltEREAS, The initiative would likely result in the delay of hundreds of local, regional and state projects. NOW, TItEREFORE, BE IT RESOLVED by the City Council of the City' of TUstin Opposes the "Government Cost SaVings and Taxpayers Protection Amendment" due to the potential economic costs to local government and taxpayers and 7- $ 10 1I 1.5 1'2 'icj ~0 ~4 ~8 Directs the City Manager to forward this resolution to the Leagme of California Cities and other indMduals and organizations deemed appropriate. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the - .. Jefferv M. Thomas, Mayor ATTEST: City Clerk Ballot measure wording Government Cost Savings and Taxpayers Protection Amendment Design and Engineering Services, State-Funded. Cost Analysis. Civil Service. Competitive Bidding..Contractor Responsibility. Initiative Constitutional Amendment pr°ponents: Arthur P. Duffy, Brett Bamett,'Mahmood IL Rastegar: c/o Brace Blanning, Professional Engineers in California Government (916) 446-0400. Requires competitive bidding for state-funded engineering or design contracts over $50,000 unless delay t~om bidding would endanger public health or safety. Prohibits contracting where performance by civil service less costly unless urgent need for contract. Prohibits contracts which Controller or awarding agency determines are against public interest, health, safety or where quality of work would be lower than civil service work. Contractors must indemnify state in suits related to performance of contracts. Provisions severable and should be harmonized with similar measures on subject. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: This measure would result in an initial cost of up to $300,000 and annual costs of up to $1 million for the Sate Controller to perform the required cost analyses. There will be unknown savings or costs for state and local governments to obtain certain architectural and engineering services. '.~f~ia Chamber of Commerce ~ifomia Taxpayer' ~lJon ~,ocia~n of California Sdx:~ drninisl~to~ ~omia School Bo~s -.aiiJoa fo~ Adequate Schod ~omia Healthcare Assoda~ ~ague of Cali(om~a Cities ~ciated General Con~clz)~ ;ar~fornia ~soda~ of CaF~fomb Water ~ifomia Building Industn/ aliomia Transit Assodalk~ 3aomia Hbl~way Use~ Conference ~u~veyo~ of Ca~fornia .-ne~can In$1JMe of.au'chitecl~, Car~fomia Counc~ a~omia Ground~ter oward Jar,~s Taxpayers AssodalJon a~omia Business Properlies ard'omia Association of SanitalJoa arflomia Con,ct Ci'des Asscx:iation alifomia Municipal UailJes .s..~da'don for California Text Reform Jiiance of California Taxpayem and Involved Voters '.a~ornia Minority and Women Businesses Coali'don .merican Planning AssodalJon. California Chapter .merican Satiety of Civil Engineers 'alifomia Land Sun/e/om Association ?,esponsible Voters for Lowa' Taxes {'~luml Engineem Assoda~ of Cardomia ~merican Consulting Engineem Counal .os Angeles County Board of Supervisom Uve~ide County TransportalJon Commission An Jose City Counal ;onoma County Board of Supavisom ~n Juan Unif~:l School District ~mpoli~n Tmnspo~ion ~nl~ ¢l~r~ ~oun~ ¢ilies A.sm~ia~ ~n~ ~ Tmnsporl~lion Au~or~y ~nl~ ebro V~lley Manut~c~u~g Group ~r~nge County Business C, ounal ~n G~briel V~lley o! Gov~nmen~ 3unnyv~le ¢~ Counal Jnit~l Chambers o! Commer~ STuP THE COMPEm,TION KILLER 15Fho Opposes the Competition Killer Initisti re? ~ of 12/1/97 Statewide Organizations Alliance of California Taxpayers and Involved Voters Americans for Tax Reform American Planning Assodation, Cal~omia Chapter American Public Works Association Amedcan Subcontractors Assodation Associated General Contractors of.California Association for California Tort Reform Association of California School Administrators AssociatiOn of Califomia Water Agencies California Association of Catholic Hospitals California Association of Health Facilities "California Association of Homes and Services for the Aging California Association of Realtors California Association of Sanitation Agencies California Association of School Business Officials California Building Industry Association California Business Properties Association .California Business Roundtable California Chamber of Commerce California Contract Cities Association California Council of American Society of Landscape Architects California GroundwaterAssociation California Healthcare Association California Highway Users Conference California Land Surveyors Association California Manufacturers Association · California Munidpal Utilities Association California Minority & Women Businesses Coalition California Rehabilitation Association California School Boards Association California Special Districts Association California Taxpayers' Association California Transit Association Taxpayers Fed Up With More State Bureaucracy [Fed Up~. A coalition of business, engineers, architects and taxpayers. 111 Anza Boulevard, Suite 406 Budingame, CA 94010 * (650] 340-0470 * FAX: (650] 340-1740 * Tax ID #960380 ~tatewide Organizations Cont ~ California Trucking Association Coalition for Adequate School Housing Coalition for Project Delivery Engineering & Utility Contractors Association Howard Jarvis Taxpayers Association Independent Cities Association Latin Business Association League of Califomia Cities National Tax Limitation Committee Operating Engineers, Local Union No. 3 (AFL-CIO) Painting & Decorating Contractors of California Pdnting Industries of Califomia Professional Services Management Association Responsible Voters for Lower Taxes State Water. Contractors United Califomians for Tax Reform United Hospital Association Waste Watchers Coundes Calaveras County Board of Supervisors Fresno County Board of Supervisors Humboldt County Board of Supervisors Kings County Board of Supervisors Los Angeles County Board of Supervisors Madera County Board of Supervisors *Nevada County Board of Supervisors Northem California County Supervisors Association Orange County Board of Supervisors Placer County Board of Supervisors San Diego County Board of Supervisors *San Mateo County Board of Supervisors Santa Cruz County Board of Supervisors Siskiyou County Board of Supervisors Sonoma County Board of Supervisors Trinity County Board of Supervisors Yolo County Board of Supervisors Cides Alameda City Council Antioch City Council -2- Cides Con~'d Barstow City Coundl Belmont City Council Belvedere City Council Camadllo City Council Campbell City Council Cerritos City Council Chula Vista City Council City and'County Association of Govemment{ of San Uateo County Cloverdale City Council Colfax City Council Corcoran City Council Corona City Council Cotati City Council Covina City Council Cupertino City Council Daly City City Council Dixon City Council Duarte City Council Encinitas City Council Eureka City Coundl Exeter City Coundl Fontana City Council Fort Bragg City Council Fortuna City Council Fresno City Council Garden Grove City CoUncil Gonzales City Council Gridley City Coundl Hanford City Council Hawaiian Gardens City Coundl Healdsburg City Council Hermosa Beach City Coundl Hillsborough City Council Indian Wells City Council Jackson City Council La Palma City Council Laguna Hills City Council Lancaster City Council Lemon Grove City Coundl Livermore City Coundl · Los Banos City Council Uadn County Council of Mayors and Councilmembers -3- Cides Con~'d Mill Valley City Council Modesto City Council Monterey Park City Council National City City Council Norco City Council Novato City Council Odand City Council Palos Verdes Estates City Council Pinole City Council Pleasanton City Council Porterville City Council Poway City Council Rancho Mirage City Council Redondo Beach City Council Rolling Hills Estates City Council Rohnert Park City Council Roseville City Council *St. Helena City Council *Sacramento City Council San Gabriel Valley Council of Governments San Bruno City Council San Jose City Council San Luis Obispo City Council San Mateo City Council San Rafael City Council Santa Barbara City Council Santa Clara County Cities Association Santa Cruz City Council Santa Maria City Council Santa Paula City Council Sebastopol City CoUncil Sonoma City Council South San Francisco City Council Stanton City Council Stockton City Council Sunnyvale City Council Taft City Council Temecula City Council Tiburon City Council Tulare City Council Ukiah City Council Vallejo City Council -4- Cides Conc'd Visalia City Coundl Westminister City Council Windsor Town Council Winters City Council Woodland City Council School Districts Alhambra School District ' Alum Rock School District Anaheim City School District Antioch Unified School District Barstow Community College District Burrel Union Elementary School District *Burton School District Cajon Valley Union School District Chula Vista Elementary School District Clay Joint Elementary School District Clovis Unified School District College of the Sequoias Community College District East Side Union High School District Hanford Joint Union High School Kerman Unified School District Kingsburg Joint Union High School District JunCtion School District Laton Unified School District Lincoln Unified School District Lodi Unified School District Milipitas Unified School District Mojave Unified School District Napa Valley Unified School District New Haven Unified School District Pasadena Unified School District Placer Union High School District Porterville Union High School District *Richland-Lerdo School District Rio Bravo-Greeley Union School District San Luis Obispo County Board of Education San Juan Unified School District San Gabdel Unified School District San Pasqual Union School District South Bay Union School District State Center Community College District Schools Cont'd Tulare City School District *Tulare County Office of Education Tulare Joint Union High School District Tudock School Districts Vacaville Unified School District Val Verde Unified School District Vailecito Union School District West Fresno School District Local Government Agencies Alameda Congestion Management Agency Armona Community Services District Bear Valley Community Services District Boron Community Services District Brooktrails Township Community Services District Brooktrails Township Community Services District Cachuma Operation and Maintenance Board Contra Costa Transportation Authority Cupertino Sanitary District Forestville Fire Protection District Fresno Metropolitan Flood Control District Golden Gate Bridge, Highway and Transportation District Hidden Valley Lake Community Services District Kings River Conservation District Las Gallinas Valley Sanitary District McKinleyville Community Services District Metropolitan Transportation Commission Novato Sanitary District Occidental Community Services District Orange County Transportation Authority Rancho Adobe Fire Protection District Riverside County Transportation Commission Ross Valley Sanitary District Santa Clara Valley Transportation Authority Sanitary District No. 1 of Marin County Solano Transportation Authority South Lake County Fire Protection District Tahoe City Public Utility District -6- Irrigation and Water Districts Adams Springs Water District Alameda County Water District Apple Valley Heights County Water District Baldy Mesa Water District Belmont County Water District Berrenda Mesa Water District Broadview Water District *Cabazon County Water District Calaveras County Water District Carmichael Water District Carpinteria Valley Water District Casitas Municipal Water District Castaic Lake Water Agency Central Coast Water Authority Chino Basin Water Conservation District Coastside County Water District Consolidated Irrigation District Delhi County Water District Desert Water Agency Diablo Water District Dudley Ridge Water District Eastern Municipal Water District Elk County Water District Empire West Side Irrigation District Fair Oaks Water District Firebaugh Canal Water District Foothill Municipal Water District Forestville Water District Helix Water District Humboldt Bay Municipal Water District Irvine Ranch Water District Kings County Water District Los Aiisos Water District Mammoth Community Water District Montecito Water District Moulton Niguel Water District Murrieta County Water District Nevada Irrigation District Oakdale Irrigation District Olivenhain Municipal Water District Panoche Drainage District Panoche Water DiStrict Pico Water Distdct -7- ,., ~ation and Water Districts Placer County Water Agency Quartz Hill Water District Rancho Califomia Water District Rand Communities Water District Redwood Valley County Water District Rio Alto Water District Riverdale Irrigation District Rowland Water District Russian River County Water District San Bemardino Valley Water Conservation District San Gabdel Valley Water District San Juan Ridge County Water District San Luis Water District Santa Margarita Water District Semitropic Water Storage District Soquel Creek Water District South Sutter Water District South Tahoe Public Water District Stockton East Water District Sweetwater Authority Tulare Irrigation District Tulare Lake Basin Water Storage District United Water Conservation District Vallecitos Water District Vista Irrigation District West San Bemardino County Water District Westborough Water District Yolo County Flood Control Resion'al and Local Organizations Apple Valley Chamber of Commerce Bakersfield Chamber of Commerce Bay Area Council Committees for Correspondence Contra Costa Council Cordova Chamber of Commerce Fullerton Association of Concerned Taxpayers Greater Tulare Chamber of Commerce Live Oak District Chamber of Commerce Madn Association of Realtors Madn United Taxpayers Association National Association, Nod. hem San Joaquin Valley Chapter Regiona?and LoCal Organizations cont-;d Newman Chamber of Commerce *Oakland Metropolitan Chamber of Commerce Orange County Business Council Petaluma Area Chamber of Commerce Pleasanton Chamber of Commerce Porterville Chamber of Commerce Rohnert Park Chamber of Commerce Sacramento Metropolitan Chamber of Commerce Salinas Valley Chamber of Commerce San Diego Chamber of Commerce San Rafael Chamber of Commerce Santa Barbara County Taxpayers Association Santa Clara Chamber of Commerce Santa Clara Valley Manufacturing Group Santa Rosa Chamber of Commerce. Shasta County Taxpayers Association Sonoma County Taxpayer's Association Tuolumne County Chamber of Commerce United Chambers of Commerce Individuals James Gordon, International Representative, Communication Workers Association, District 9 (AFL-CIO) John Rachford, Board Member, Kings County Board of Supervisors Bill Maze, Chairman, TUlare County Board of Supervisors Jim Maples, Board Member, Tulare County Board of Supervisors Mark Leyes, Council Member, City of Garden Grove Ken Marvin, Shedff, Kings County Dana Reed, Commissioner, California Transportation Commission Vince Brar, Public Works Director, City of Cerritos Eugene Kovach, Retired Senior Engineer, Sanitation Districts of Los Angeles County En~needng, Architectural and Construction Or~'a'nizadons American Consulting Engineers Council American Institute of Architects, California Council American Institute of Architects Academy of Architecture for Health American Institute of ArChitects, Central Coast Chapter American Institute of Architects, Central Valley Chapter American Institute of Architects, Desert Chapter American Institute of Architects, East Bay Chapter American Institute of Architects, Golden Empire Chapter American Institute of Architects, Inland California Chapter Amedcan Institute of Architects, Long Beach/South Bay Chapter -9- Engineering, Aru- itectural and Construction Or , , izations Cont'd Amedcan Institute of Architects, Los Angeles Chapter American Institute of Architects, Orange County Chapter American Institute of Architects, Pasadena/Foothill Chapter American Institute of Architects, Redwood Empire Chapter American Institute of Architects, San Diego Chapter American Institute of Architects, San Femando Valley Chapter Amedcan Institute of Architects, San Francisco Chapter American Institute of Architects, San Joaquin Chapter American Institute of Architects, San Mateo Chapter American Institute of Architects, Santa Clara Valley Chapter American Public Works Association of San Diego Amedcan Registered Architects, Northern California Chapter Amedcan Society of Civil Engineers American Society of Civil Engineers, San Diego Section Amedcan Society of Landscape Architects, Northem California Chapter American Society of Landscape Architects, San Diego Chapter Amedcan Society of Landscape Architects, Sierra Chapter American Society of Landscape Architects, Southern California Chapter Amedcan Subcontractors Association, San Diego County Chapter Asian American Architects and Engineers Association Associated Builders and Contractors, Golden Gate Chapter Associated Builders and Contractors, Los AngelesNentura Chapter Associated Builders and Contractors, San Diego Chapter Associated Builders and Contractors, Southem California Chapter Association of Consulting Electrical Engineers Bay Counties Civil Engineers and Land Surveyors Association Building IndustJ7 Association of. Southern Califomia Building Industry Association of San Diego Building IndustJ7 Association of Tulare and Kings Counties Califomia Association of Engineering Geologists California Association of Sheet Metal & Air Conditioning Contractors National Association Califomia Geotechnical Engineers Association California Legislative (Council of Professional Engineers) California Society of Professional Engineers Consulting Engineers and Land Surveyors of California Consulting Engineers and Land Surveyors of Califomia, Kern County Chapter Consulting Engineers and Land Surveyors of California, Los Angeles Chapter Consulting Engineers and Land Surveyors of California, Monterey Bay Chapter Consulting Engineers and Land Surveyors of California, Napa Solano Chapter Consulting Engineers and Land Surveyors of California, Orange county Chapter Consulting Engineers and Land Surveyors of California, Peninsula Chapter Consulting Engineers and Land Surveyors of Califomia, San Diego Chapter -10- Engineering;, Architectural and Construction Or~a~,~ations Cont'd Council on Federal Procurement of Architectural & Engineering Services Engineering Contractors Association, Northern California Chapter Engineering & General Contractors Association Engineering & General Contractors Association of San Diego lnterprofessional Council on Environmental Design Marin Builders Exchange Mechanical Contractors Council of Central California National Society of Professional Engineers North Coast Buiders Exchange North County Civil Engineers & Land Surveyor's Association Sacramento Builders Exchange Salinas Valley Builders Exchange Sheet Metal & Air Conditioning Contractors National Association, Northern San Joaquin Valley Chapter Society for Environmental Graphic Design Solano-Napa Builders Exchange Southern California Contractors, Association 'Southem Califomia Surveyors Joint Apprenticeship Committee Structural Engineers Association of Califomia Structural Engineers Association of Northern California Structural Engineers Association of San Diego Structural Engineers Association of Southern California Tulare and Kings Counties Builders Exchange 'Indicates new member -11-