BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Adopt Recommended Positions on State Legislation: SB 706 (Caballero) Progressive Design-Build Contracting, and Other Legislation Which May Require Urgent Consideration for a Position by the Board.
End
RECOMMENDATION:
Recommendation
Adopt a position of “Support” on: SB 706 (Caballero) Progressive Design-Build Contracting.
Body
SUMMARY:
*SB 706 (Caballero) Progressive Design Build Contracting. (A-06/14/22)
Position Recommendation: Support
Priority Recommendation: 2
SB 706 would expand the authorization for local agencies to use progressive design-build to include any city, county, or special district, for up to ten projects of any type exceeding $5 million in cost. The bill would exclude projects on state-owned or -operated facilities. This bill would extend the sunset date in current law from January 1, 2029, to January 1, 2030.
Existing law allows for progressive design-build to be used by cities, counties, and specified special districts and transit agencies for specified public works contracts in excess of $1 million using either a low bid or best value process. Existing law also authorizes city, county, city and county, or special district authorized to provide for the production, storage, supply, treatment, or distribution of water to use progressive design-build for up to 15 specified water projects each over $5 million.
Impact on Valley Water
Valley Water secured the authority to use design-build for some projects through the passage of AB 851 (Caballero) enacted in 2017. Valley Water is currently authorized to use design-build procurement for the construction of buildings, flood protection improvements, habitat restorations or enhancements, groundwater recharge or storage facilities, water treatment facilities, and the retrofit, repair, or expansion of existing surface water storage facilities. SB 706 would expand on that authorization to include any type of project exceeding $5 million.
Staff recommends a position of “Support” for SB 706.
Pros
• The expanded authority of the types of projects will allow for the opportunity for other water-related projects to be considered.
• Extends the sunset date on the authorization for local agencies to use progressive design-build.
Cons
• Some projects may be beneficial but do not meet the minimum costs which prohibit them from being considered for progressive design-build.
• Limits the amounts of projects to 10 per agency, but 15 projects are still allocated for water projects by local water agencies.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item. The Board’s position does not enact the legislation discussed above. If the enactment of legislation necessitates an action by the Board with associated Environmental Justice impacts, those impacts will be assessed when the Board takes the action.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Manager
Rachael Gibson, 408-630-2884