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 598 (Durazo) Construction Manager/General Contractor Project Delivery Method, and Other Legislation Which May Require Urgent Consideration for a Position by the Board.
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RECOMMENDATION: Recommendation
Adopt a position of “Support” on: SB 598 (Durazo) Construction Manager/General Contractor Project Delivery Method.
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SUMMARY:
SB 598 (Durazo) Local Water Infrastructure Projects: Construction Manager/General Contractor Project Delivery Method - (Amended - 03/24/2025)
Position Recommendation: Support
Priority Recommendation: 3
SB 598 (Durazo) would authorize local agencies to use the Construction Manager/General Contractor (CM/GC) method for constructing regional recycled water projects or other water infrastructure projects undertaken to alleviate water supply shortages attributable to drought or climate change. This would provide an alternative to the traditional design-bid-build process currently required under Public Contract Code Section 21161. The bill includes a sunset date of January 1, 2031.
Importance to Santa Clara Valley Water District (Valley Water)
The CM/GC method allows agencies to hire a contractor during the design phase to provide input on constructability, materials, scheduling, and cost, potentially resulting in a more practical and cost-effective project. After completing a project design, the local agency and the CM negotiate a guaranteed maximum price for the construction of the project. They could then enter a contract for constructing the project in which the CM would become the GC, facilitating a smooth transition between the design and construction phases of the project.
Valley Water has supported previous efforts to provide procurement process flexibility for local agencies, including SB 991 (Newman) in 2022 and AB 400 (Blanca Rubio) in 2023. SB 598 would give Valley Water another tool for delivering complex recycled water infrastructure projects. While this method is not suitable for all projects, it could be valuable for specialized or large-scale capital improvements. This bill would provide flexibility for Valley Water to use an additional alternate project delivery method for complex projects. This bill should reduce overall project costs for Valley Water by promoting real-time cost assessments, risk identification, and mitigation planning.
Staff recommends the Board adopt a position of support on SB 598.
Pros
• Greater project flexibility and delivery options.
• Early contractor input can lead to better design and fewer construction changes.
• Improved collaboration can reduce delays and unexpected costs.
Cons
• Requires staff expertise in managing alternative delivery methods.
ENVIRONMENTAL JUSTICE AND EQUITY 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 state legislation necessitates an action by the Board, any associated Environmental Justice impacts will be assessed when the Board considers 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
Joshua Golka, 408-630-4508