HomeMy WebLinkAboutItem 5.01 AB1448 ACA16 TaxSave (2) CITY CLERK
AGENDA STATEMENT
CITY COUNCIL MEET'lNG DATE: AuguSt t 7, 1999
SUBJECT: Written Communication: SupPort of/KB 1~48 and ACA 16, "Fair
Competition and Taxpayer Savings" LegiSlation and Initiative
(Contracting with Private Firms for Engineering Design Services)
Report prepared by: Lee S. Thompson, Public Works Director
ATTACHMENTS: 1) Correspondence from Taxpayers for Fair Competition /
CELSOC (Consuking Engineers and Land Surveyors of
California)
2) Text of AB 1448, ACA 16, and Initiative
3) List of Agencies Supporting These Measures
4) Resolution of Support
RECOMMEN'DATION: ~,~f' Adopt Resolution of Support
FINANCIAL STATElVlENT: None associated with this action.
DESCRIPTION: In March of 1998, the City Council received a request from the
Consulting Engineers and Land SurveyOrs 0f California (CELSOC) to oppose a ballot measure known as
the PECG (Professional Engineers in California Government) initiative. The PECG init. i_a~.~ul_~.~y.e_
required that State and local engineering contracts, particularly for work involving State and Federal
funds, be channeled through Cakrans for design and project administration services. The City Council
adopted a resolution of opposition, and the PECG initiative was subsequently defeated in the November
election.
The current legislation, Assembly Bill (AB) 1448 Assembly Constitutional A_rnendment (ACA) 16, as
well as the Fair Competition and T~payei: savings initiative, represent the opposite stance. These
measures would allow both the State and Local Governments to contract with private architectural and
engineering firms, and would encourage competition among those firms to ensure that :the ~est.. possible
cost of services is achieved. Only contracts for architectural and engineering services are covered by
these measures.
The City of Dublin has historically contracted with private firms for Capital Project design and, in many
cases, administration, since incorporation. While project design and administration is now.be~_.ng handled
by in-house staff as much as possible, it Should be recognized that contracting with private frrms allows
the City to take advantage of the larger and more diverse private staffs and to utilize their expertise to
COPIES TO: Jason Barnett, Taxpayers for Fair Competition
ITEM NO. ~
g:XagenmiscXab 1448 support
advantage. For example, the large Federal Aid road projects such as the phased DUblin Boulevard
Widening projects, require environmental documents, right of way acquisition, survey, design, drafting,
and project administration. These services are not tYPically performed by one person, and it would not be~.~
cost-effective for the City to hire half adozen employees tO Se~6 these functi6ns,-most 0fWhiCh are not
needed on a full-time basis. ·
While this measure is Primarily aimed at the siate, WhOse employee's have' sued to stop the use of private
firms,' the existing State ban on the use of private firms can affect projects within local jurisdictions,
including freeway modifications and certain aspects of local projects that involve State Or Federal funds.
This measure would not compromise design or construction standards. A nUmber of agencies have
akeady indicaied support for these ~asures, as shown on AttaChment 3.
Taxpayers for Fair Competition (CELSOC) is requesting that the City Council support both the legislative
measures and the initiative. Staff recommends that the City Council adopt the resolUtion supporting these
measures.
Page 2
]]! Anza Boulevard, #408 o BurlinE, ame, CA 940]0
· t350-340-0470 · FAX: 1350-~340-]740
]1~300 W. Olgrnpic Boulevard, #840 · Los AnE, eles, OA 900134
· 310-9913-.~21300 · FAX:310-9913-~21373 -(~,--
June 30, 1999
Lee Thompson ~.~
Director of Public Works ..~_~
City of Dublin .,~
Dublin, CA 94568
Dear Mr. Thompson:
I am writing to follow up on a letter and information sent to you in May asking for your
City Council's support of the Fair Competition and Taxpayer Savings Act. This initiative
and legislation simply allows state and local governments to contract out for architecture
and engineering design services.
As it explains in the enclosed fact sheet, a series of lawsuits brought by state
employees (primarily Caltrans engineers) has effectively banned California State
government from contracting with qualified architects and engineers. These lawsuits
have already begun to limit the ability of local government to choose where and when to
use private consultants, putting many local projects in jeopardy.
A growing coalition of neady 20 Cities and Counties has joined many Statewide
Organizations and local organizations as well as public agencies throughout California
in supporting the Fair Competition and Taxpayer Savings Act, which will preserve local
flexibility and control. And more are expected to act soon.
if your city has already acted, please forward to me the relevant documents. If your city
has not acted yet, please sign and return to me the enclosed support form or
sample resolution so ! can add your city council to our coalition.
I hope that once you have reviewed the enclosed materials you will agree that our
solution allows California and its taxpayers the best opportunity to improve our
infrastructure needs.
I will be calling to follow-up on this letter. In the meantime, if you have any questions,
please feel free to call me at (650) 340-0470.
Thank you for your consideration.
Sincerely yours,
Barnett
Ability of Local Governments to Contract for
Architectural and Engineering Services is Under Attack
Local Control at Risk
form all of that work rather than bringing in private firms
Historically, local government has been free to rely on pri- as the need arises. The recent state supreme court pro~
vate design firms as a cost-effective way to speed the de- hibition on contracting out for these services exponen-
livery of transportation, school, water, earthquake retrofit- tially increases the likelihood of success for this and other
ting and other infrastructure projects, moves by public employees.
A series of lawsuits brought by state employees (primarily
Caltrans engineers) however, has effectively banned Calk
"/'m
fornia State government from contracting with qualified ar- expected to defiverprojects on time and on
chitects and engineers, budget. To do that, I need the ability to turn to the
private sector for help. The Fair Competition and
This has also begun to limit the ability of local government Taxpayer Savings Act provides the flexibility the ·
to choose where and when to use private firms, putting City of Los Angeles needs."
many important local projects in jeopardy. Bill Holland
Los Angeles City Architect
In fact, the state employees' lawsuit has already resulted
in the cancellation of local contracts with private firms.
No-Growth Citizen Activists
Threat to Local Flexibility Increases
Can
AJso
Sue
Dramatically with New Lawsuit
A lawsuit has recently been filed to terminate private sec- Any NIMBY or no-growth group can go to court and slo~
tor architectural and engineering contracts on the San Fran- Or' stop a project by claiming that a design contract vio:'~l~
cisco Airport expansion and turn that work over to-public tates the constitution. These groups are very creative in
employees. This is the first of what it is anticipated will be their use of the law and not at all shy about running to
many such lawsuits. It is extremely significant for that, and court.
several other reasons.
Because the work Preserving Local Control
at SFO is so mas- A growing coalition is supporting the "Fair Competition
sive, the costs and *The threat to local govern- and Taxpayer Savings Act" which will preserve local flex-
time delays of such ments is very real and very ibility and control. In both its legislative and initiative form
a step wouid be immediate. The San Fran- this act will:
staggering. In ad- cisco lawsuit makes it even
dition, the prece- more critical that we take · Remove the existing California constitutional
dent for other local action now. prohibition against contracting out for design
government enti-
ties is . clearly If we do not make this a services.
alarming, priority, we risk losing afl · Replace that prohibition with language that specifi-
ability to decide what makes
The premise of this sense for our cities and cally allows cities, counties and other local govern-
suit is essentially counties. I urge you to ment agencies to contract with qualified design
the same as that support the Fair Competition firms, if they so choose.
raised at the state and Taxpayer Savings Act Without these changes in the law, local governments
level - if a public today." should expect to see a growing attack on the ability to
employee has ever Gary Monohan make their own decisions about what combination of
done the work in Mayor, City of Costa Mesa services will work best for them on any given project.
question, they no action is taken, this local flexibility could be completely
must always per- taken away.
7/1/99
Taxpayers for Fair Competition · 111 Anza Boulevard, Suite 406 · Burlingame, CA 94010
Phone: (650) 340-0470 - Fax: (650) 340-1740
LOCAL PUBLIC-PRTVATE PARTNERSHIPS:
A HTSTORY OF SUCCESS, A FUTURE AT RISK
Many local governments and local agencies have successfully used contracting for architecture and
engineering services as a way to get thejob done in a fast, cost-effective fashion. Often this has
meant bringing in projects for less money and in less time than Caltrans own estimate to do the job.
Here are a few of those local success stories:
History of Success
Santa Clara County Ir i Santa Barbara
?~ i Transportation Au- ~! County
thority
A tale of two highways points
In 1984, Santa clara County up the difference between
voted a half-cent increase in Caltrans and the private sec-
the sales tax to improve traf- tor here. A series of projects
tic conditions on three local to make improvements on US 101, being
highways. Caltrans initially estimated it would delivered by Caltrans, is at least a year be-
take 17 years for the work from start to fin- hind schedule, and further delay seems likely.
ish. The Authority then created a public- On the other hand, a project to make im-
private partnership, which did the work in 10 provements on Route 154 was delivered on
years, at a savings of hundreds ofmillions of time and under budget by a private contrac-
dollars, tor.
The design and constmc-
tion of the county's toll Through the use of pri-
roads is being handled by vate sector contractors,
a private contractor, the county transportation
Against comparable authority was able to bring
Caltrans projects, the private contractor spent in a program of improvements on State
10 percent less on management costs ~ Route 4 six to nine months ahead of the pro-
brought in the project 6 percent ahead of jected Caltrans schedule.
schedule, instead of 16 percent behind for
Caltrans - and kept cost growth down 12
percent compared to Caltrans.
Source: "Meeting California's Infrastructure Challenge: Assuring Cost-Effective and 7~mely Project Delivery.
.. Prepared by the California Taxpayers' Association and the California Chamber of Commerce - May, 1999
A complete copy of the report may be obtained by calling Taxpayers for Fair Competition at (650) 340-0470
Taxpayers for Fair Competition · 111 Anza Boulevard, Suite 406 · Burlingame, CA 94010
Phone: (6501 340-0470 · Fax: (650) 340-1740
All that could be a thing of the past however. Already, the state is virtually prohibited from contracting out for
architecture and engineering sen,ices, thanks to a series of lawsuits brought by state-employed engineers (mostly
Caltrans employees). Now that ban is beginning to limit the choices available to local governments as well.
Future A t RisR - ·
Statewide (seismic .. Oakland
retrofitting work) {~, "One high visibility project in Oak-
While California has many of the ~ land...is design of the 1-880
world's leaders in the field of seismic Broadway/Jackson interchange in,-
safety, if they don't work for Caltrans provements. To keep this project
(which most of them don't) - they on schedule may require outside
won't be working for us. In fact, more transportation engineering service
than 20 contracts for seismic retrofit- to supplement Caltrans' staff.
ting work with private sector experts have already been
cancelled. Thus it is important to ask the voters to change the
State Constitution to permit contracting out."
San Francisco ~ City of Oakland Analysis
A lawsuit has been filed to termi- ~1~ June 16, 1999
note private se~or architectural and'~ San Diego
engineering contracts on the San
Francisco Airport expansion and The City Attorney in San Diego has
turn that work over to public em- told the city that any future contract-~_ "'.~,
ployees. The costs and time de- lng out should be done underthe con-
lays of such a step would be staggering. The precedent ' diti°ns set forth under the decision in
for other local government entities is cleady alarming. PECG v. Caltrans - conditions which
make contracting out next to impos-
San Gabriel Valley sible. The City Attorney reasoned that
,: (Burbankt Glendale) there were enough similarities between the State Con-
stitution and San Diego's City Charter, as to make the
Thirty years ago, Caltrans designed court decision apply to the city as well.
the intersection of 1~5 and 134 without
a complete set of on-off ramps. Now,
just at the moment when years of work Lancaster
at the local level have begun to pay Ii "If projects such as the Avenue L and
off, and "Detour Junction' may be com-
plated at last- local governments may find this project ~ Avenue H Bridge Widening projects
taken out of their hands, thanks to these Lawsuits and had to be designedbythe State, they
given to the same agency, Caltrans, that Created the would be delayed indefinitely..
problem in the first place. In order to maintain local control over
public works projects and to maintain
East Bay f,IUD ~ I the ability to design and construct projects in a timely
manner, staff recommends" support of the Fair Corn-
At least one private sector contract petition and Taxpayer Savings Act.
has already been canceled by East
Bay MUD due to the PECG law- City of Lancaster Staff Report
suits. June 8, 1999
6t29199
MAIN KOI Page 1 of 1
_ ..
TAXPAYERS FOR FAIR COMPETITION
Speed Delivery of Needed Infrastructure
Bills Introduced and Initiative Filed to Allow Contracting Out
,433 1448 and ACA 16 would make it clear that state and local public agencies have the authority to
contract for architectural, engineering and land surveying services when they need to do so. The bills
are authored by Assemblyman Dave Cox of Sacramento. In addition, an initiative with the same
provisions was recently filed with the California Attorney General's office.
The proposal, entitled, the "Fair Competition and Taxpayer Savings Act," is the exact opposite of
Prop 224, which the voters rejected in a landslide last June. (224 was sponsored by PECG, a state
employees group.) Whereas 224 was intended to impose even more restrictions on the use of private
desig'n professionals, the proposed Act would eliminate a current severe legal restriction on the use of
design professionals. That restriction was imposed by a terrible Supreme Court decision, PECG v.
Caltrans, in May 1997. California is the only state in the USA which suffers fi.om such a decision. [The
rest of this article is iteTM one below.]
Materials available on the Fair Competition and Taxpayer Savings Act:
1. Complete Article about the proposed Act
2. Text of the Act
3. Information Sheet on the Act
4. Join the Coalition! Click here for Support Form
5. Sig-nature gathering information / Instructions for circulating petitions.
6. Why your company and your job is at risk from PECG's lawsuits.
7. Cai Tax Report on contracting out initiative.
http ://www.celsoc.org/KOI%20Pages/main_koi.htm 8/2/99
The Fair Competition and
Taxpayer. Savings Initiative
for Architectural and Engineering Sezwice
1. Permits Contracting Out of Architectural and Engineering Services:
Allows state and local governments, special districts and school districts to contract with
private companies for architectural and engineering services. Defines such services as
architectural, landscape architectural, environmental, engineering, land surveying and
construction management.
2. Local Choice to Deliver Transportation Projects On-Time:
Gives local governments greater control over transportation improvements so that
highway, bridge and transit projects can be delivered on-time and within budget.
3. Taxpayer Safeguards:
· Prohibits government employees from awarding contracts if they have a
financial or business relatio~nship w/th the companies involved.
· Requires compliance with all laws regarding political contributions, conflicts
of interest or unlawful activities.
· Subjects all architecture and engineering contracts to standard accounting
practices.
· Permits financial and performance audits as necessary to ensure contract
services are delivered within the agreed schedule and budget.
4. Strict Design and C~n~truction standards:
Already established project seismic sa£ety, project design and construction standards are
not changed by the initiative.
5. Only Applies to Architectural and Engineering Services:
This measure does not apply to any other contracts except for architecture and
engineering services. For example, it does not apply to peace officers, teachers or
correction officers.
5/I 7/1999 Taxpayers for Fair Competition
111 Anza Boulevard, Suite 406 o Burtingame, CA 94010 Phone: (650) 340-0470 · Fax: (650) 340-1740
11300 W. Olympic Boulevard, #840 · Los Angeles, CA 90064 · (310) 996-2600 . Fax: (310) 996-2673
FAIR COMPETITION AND TAXPAYER SAVINGS INITIATIVE
SECTION I. TITLE. This measure shall be known and may be cited as the "Fair
Competition and Taxpayer Savings Act."
SECTION 2. PURPOSE AND INTENT.
tt is the intent of the people of the State of California in enacting this measure:
(a) To remove existing restrictions on contracting for architectural and
engineering services and to allow state, regional and local governments to
use qualified private architectural and en~neering firms to help deliver
transportation, schools, water, seismic retrofit and other infrasumcture
projects safely, cost effecfively and on time;
(b) To encourage the kind of public/private partnerships necessary to ensure
that California taxpayers benefit from the use of private sector experts to
deliver transportation, schools, water, seismic retrofit and other
infrastructure projects;
(c) To promote fair competition so that both public and private sector architects
and engineers work smarter, more efficiently and ultimately deliver better
value to taxpayers;
: (d)TM Sp%d the Completion of a mUlti_billion dollar backlog of highWay,
bridge, transit and other projects;
(e) To ensure that contracting for architectural and engineering services occurs
through a fair, competitive selection process, free of undue political
influence, to obtain the best quality and value for California taxpayers; and
(f) To ensure that private frans contracting for architectural and engineering
services with governmental entities meet established design and
construction standards and comply with standard accounting practices and
permit financial and performance audits as necessary to ensure conti-act
services are delivered within the a~eed schedule and budget.
SECTION 3. Article XXII is hereby added to the California Constitution-to'read:
§ 1. The State of California and all other governmental entities, including, but
not limited to, cities, counties, cities and counties, school districts and other
special districts, local and regional agencies and joint power agencies, shall
be allowed to contract with qualified private entities for architectural and
engineering services for all public works of improvement. The choice and
authority to contract shall extend to all phases of project development
including permitting and environmental studies, fights-of-way services,
'design Phase services and constructi°n Phase services. The choice and
authority Shall exist without regard to funding sources whether federal,
OO01
state, regional, local or private, whether or not the project is programmed by
a state, regional or local governmental entity, and whether or not the
completed project is a part of any State owned or State operated system or ~
facility.
§ 2. Nothing contained in Article VII of this Constitution shall be construed to
limit, restrict .or prohibit .the State or .any other governmental entities,
including, but not limited to, cities, counties, cities and counties, school
districts and other special districts, local and regional agencies and joint
power agencies, from contracting with private entities for the performance
of architectural and engineering services.
SECTION 4. Chapter 10.1 is hereby added to Division 5 of Title 1 of the Government Code
to read:
§ 4529.10. For purposes of Article XXII of the California Constitution and this
act, the term "architectural and engineering services" shall include ail
architectural, landscape architectural, environmental, engineering, land
surveying, and construction project management services.
§ 4529.11. Ali projects included in the State Transportation Improvement
Program programmed and funded as interregional improvements or as
regional improvements shall be subject to Article XXII of the California
Constitution. The sponsoring governmental entity shall have the choice
and the authority to contract with qualified private entities for
architectural and engineering services. For projects programmed and
funded as regional improvements, the sponsoring governmental entity
shall be the regional or local project sponsor. For projects programmed
and funded as interregional improvements, the sponsoring governmental
entity shall be the State of California, unless there is a regional or local
project sponsor, in which case the sponsoring governmental entity shall
be the regional or local project sponsor. The regional or local project
sponsor shall be a regional or local governmental entity.
§ 4529.12. All architectural .and engineering services shall be procured
pursuant to a fair,, competitive selection, process which prohibits
governmental agency employees from participating in the selection
process when they have a financial or business relationship with any
private entity see'king the contract, and the procedure shall require
compliance with all laws regarding political contributions, conflicts of
interest or unlawful activities.
§ 4529.13. Nothing contained in this act shall be construed to change project
design standards, seismic safety standards or project construction
standards established by state, regional or local governmental entities.
...Nor shall any provision of this act be construed to prohibit or restrict the
0002
authority of the Legislature to statutorily provide different procurement
methods for design-build projects or design-build-and-operate projects.
§ 4529.14. Architectural and engineering services contracts procured by public
agencies shall be subject to standard accounting practices and may
require financial and performance audits as necessary to ensure contract
services are delivered within the a~eed schedule and budget.
§ 4529.15. This act .only applies to architectural and engineering services
defined in Government Code section4529.10. Nothing contained in
th/s act shall be construed to expand or restrict the authority of
governmental entities to contract for fire, ambulance, police, sheriff,
probation, corrections or other peace officer services. Nor shall
anything in this act be construed to expand or restrict the authority of
governmental entities to contract for education services including but
not limited to, teaching services, services of classified school personnel
and school administrators.
4529.16. This act shall not be applied in a manner that will result in the loss
of federal funding to any governmental entity.
4529.17. The provisions of this act are severable. If any provision of this act
or its application'is held invalid, that invalidity shall not affect other
provisions or applications that can be given effect without the invalid
provision or application.
4529.18. If any act of the Legislature conflicts with the provisions of this act,
this act shall prevail.
4529.19. This act shall be liberally construed to accomplish its purposes.
4529.20. This act seeks to comprehensively regulate the matters which are
contained within its provisions. These are matters of statewide concern
and ~vhen enacted are intended to apply to charter cities as well as all
other governmental entities.
SECTION 5. This initiative may be amended to further its purposes by statute, passed in each
house by roi1 call vote entered in the journal, two-thirds of the membership
concunSng, and signed by the Governor.
SECTION 6. If there is a conflicting initiative measure on the same ballot, which addresses
and seeks to comprehensively regulate the same subject, only the provisions of
this measure shall become operative if this measure receives the highest
affirmative vote.
0003
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to public contracting for ~chitectural and engineering
services.
The California Constitution requires ~e state to reimburse
local agencies and school disfficts for cen~n costs m~dated
by the state, statuto~, provisions establish procedures for
:~ : -.. "-"-'making: that reimbursement,_ 'in~l'u~ling: the:: creation': of. 'a state:" ..
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: :' 25 '_inte=egion~': ' -' improvements; - ~e "- ~ sponsoring
26 governmental entity- ¢ shall be ~e State of Califomia,:
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`~`~`.~..~``~~}~4~}?~?.::?¢t.~:~`:~`..:./:):;~¢~.~}~28¢~¢~`~:~3~ship?wi~?~tk~c:~:any.~ private 'entity seeUng
~,~e~.:,~;~?-::.::'.~;:~?.::.~:::,.)~:;~:~¢ .;;::29..~ the.~: .................. .?. contract;.:_: and, the: procedure -' shall
,..?~,~;..:.,.:.~.:.:,.?~-..,--.,..?., . ?:.%., .- 30 ~:: reou~e~:com~hance.~, w~th.. ~,.. laws red.dm, pohucal
~ :-:<-':-:'~,,;:'"<~.,--~ ::~':., -,?; :5, :~'? ::"~? 31.;~(-cOnffibut~ofig}~ conflicts of ~nterest, or unlawful ac~v~t~es.
~' :..'. ", .... . :: " ~ ,"~ .:;~:~::- :;:.i- ~'t~::','' '~ C'~'"2'2?::' ~:T;'2u2 .... ~; ~, -
~ ' :-" ?:":.'..': "}:~.33~..,,~529.647~':~b~hing.. contained in this chapter shall be
: .....:...:.~:~.~`~.`.~{`:.:`.~}~¢~`;~}2~`34.¢;7~`;;;i~f~?~?dh~ge:~.pr~ject~.design stand.ds, seis~c
':" ::"'~ ' : "~'" :"':~ '¢"tf :.'";?.'~57¢~hfe¢:;¢~:*~d~ds;:'~9:- °r 'pfojelt consmcfion ' sund~ds
~. '..'."-:':~f"~6'esta¢liSfi~d-~ by:"~state, regional, or local governmental
~ '" ' :"--: 4:;' ~7.. entrees.. Thio ' ~k
.... v ....... not Nor shall any provision of
~ ' ~ "}(his(
>. .~'38 ':':" ' °n}trubd to prohibit or resffict the
' 39)" au~dfitk :- 0f2-the-- Legislature to ..... :~ .........
_ _.-: 40. statutOrily_j'provide different procurement methods for : .-::..~ . .--..-:~.3 ~ '.. -: '......>.. ..... . ...
~., ,:....:,..:.:.., .-,:. ,,~- : ~--.:.~,~'<~.,?'.; ~::":~;:~5/:_~ :. -~.; ~.: ~/ ;:~:~,~:~.:/:.:,,~, ::-'....... ".' .... :~. .-
~ t.t :'Zf :'9- :A::- :: .. '.t-~ '-".'": ::--.'~ "'.~'~"; 'z ;3 ,..:~, ;'~ .. ~7 ;?Z'~'~ 't.z"::" ;:k't' '.~:5",:?c'~".:"; -: ..;: '. ::..:': '..' -.
~ ~5:7~`~:`:~:~`~:~;`~:;~:~:`~`~%~`~`~``~.~`~`~-:'~`','''~-''+''" -., ~:,.. f[::_j:,:.:k - .:-' . . :'
? 5~..'A ~- :~,'~. ~ ~-~ ,,..,.,:~,.~,.?,,-~ '~ ~.~.~.x.~.~:.z~..:&'J~:.~:'~.:l'~c~2[-~5'~j}~'?:5~ ~,,',c;*:~:~:5~, :-5-'~'' ..:-~ ~::~-" '~ -:'. :-" -
~ .; .-- ... _ . -Y~q'. ::::. .... · ',.. '. . J · . -.
~,,. . .- .... '~.:-:. ..,--' .'~:,;:?::.. ?'. ,-...-, .', ,, ,.:...::, ,? :'
, _-..:. - ..
_ . -..-.._ + .....-:...-...., :;:.~.~-'...--'
~.~, - :0.' ~...: ' 32 provision or application. _ - :'- ,. ..... .,. -. .......
}?.'::' 35'~ith.,..the,; provisions of this chapteg this., chapter will
~ 36 prevail..
,:~' ' -' 37 4529.70.. ~is chapter sh~ be ,liber~ly. cons~ed to
?',. -. 38 accomplish iB pu~oses.
98
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~ - -:.-.;-..- .... -.:-.:..-:~?.;~'; ::- I;'~?:,~' ;4~2~.7].~:~,".~is~:;~; chapter;s::"sccLs- ~o com2~ehcnsivc]~
~ · -.:?~:~,;~}~g-.:!. :-::.~'-;~?(~?~:;2?~di~;~??'~:~'~:~?~,~"~h~h :..~': ~e ' contalned within" its ' '
If ". :~;:~¢;~3~)~:.:;g~;fs~::~¢s;~::~3}.p~[~visi~ns:~i~s~}~:ar~.~s: matters:Cof: statew~de- concern and ---.... '- :. ', -: ¢ .- ....':'. '-
~: ---?,~-'~.,~-'-'=--.:.:~,¢;~:~;=<~,::',4,,., ......... ~,~,, ............... , ,o..,when enacted ale. ]ntended. to .... .-. -.- -
~-:-~:' 5 :'?~(?~'~:;'-: ;-.~::' ;?:'~?;-~:~;~:: 5~t apply~:: to~:; ch~er~ crees as.~ well,-' as all other governmental ' .' ',.
~;~':~:,'...' 4-;::~(~27~5:~i.::?:::.:: ,.':~;:k.:,¢~ !.~:~:~5:~.2'- 6'~?;:~fitifi~;~:~'~5~.}~-~-~.~:~-~?:.f' ~:..'.-?¢;?..~4:~?~.' :'.:"5.'~:.:~. '. .':" , '..;.: . '~ .: '=. ..' · '.
g*:,-::'..~;:'~:>.~,?=='.;-~..:-~.~:~;~-~;:.-~7f.~¢~? SEC:;~,::?_ 2,;a No~z~standzn,.;;...~ Sect]on 17610 . of the .
'["' '.' '-~:--;:<~:5"::';'::' ~:',?~;,~:;5~-;. 8 ~¢.,Govemment~}~Code;~, If.. ~e: Com~ss]on on State Mandates
~ '--~'~;~:~'?:' ;.:'"': :;~:~?-~(;~:,::~'i0::,?~f~)~e~b~&~;fni':;:~, t6:~('16'6'~.:':::' agencies',. and .' school '
[~.. -.-~:'?:~¢.~.:'~--l; ,:~::};,,_):';}~.~""1'i':~ ,shhll";'be::. made pursuit to P~t 7 ," ..
~[~-'--'-"~'5)[(}~;(:~.":".. :;.:~;:;:'~:;:::'!?,:' i2 :i':~¢:~;h~ih " 'of' Division 4 of Title . ' '
'C~d~?~:/~e statewide cost of the
'exceed one- "million '-
shall'be made from '..-'
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~;-:~:.. =.-- -,??:,:~.?-:: ;:-~:~' :i':?~ :::7;:. ':): -;.??- :.?~':::-:::s ''?: ~-' :- - :'; -:: :"':?: ' :~ = :-"";
~-.- . .. ':;':~ ....: .:'. , -. ..' .:...: .....:;:'.'.
~. ~ ': :: .~ ........ LEGISLATURE~-I'~'~-2000 REGULAR' SESSION
Cox :~...-.~ -..
landscape .... . .... ....
ement se~lce,
~d?~Tengineefing se~ices for
>rovement}~5,{:'without reg~d 'to' hnding .
ii(:: 7 ent~nes ~t.~.!s. p~. of '.a state-owned or
,~ .-.._..: . . or ny ...... ).'.~-:5
99
Fak_Comp_Initiative Page 1 of 3
..
FAIR COMPETITION AND TAXPAYER SAVINGS
INITIATIVE
SECTION 1. TITLE.
This measure shall be known and may be cited as 'the "Fair Competition and Taxpayer Savings Act."
SECTION 2. PURPOSE AND INTENT.
It is the intent of the people of the State of California in enacting this measure:
(a) To remove existing restrictions on contracting for architectural and engineering services and to
allow state, regional and local governments to use qualified private architectural and engineering firms
to help deliver transportation, schools, water, seismic retrofit and other infrastructure projects safely,
cost effectively and on time;
(b) To encourage the kind of public/private partnerships necessary to ensure that California taxpayers
benefit from the use of private sector experts to deliver transportation, schools, water, seismic retrofit
and other infrastructure projects;
(c) To promote fair competition so that both public and private sector architects and engineers work
smarter, more efficiently and ultimately deliver better value to taxpayers;
(d) To speed the completion of a multi-billion dollar backlog of highway, bridge, transit and other
projects;
(e) To ensure that contracting for architectural and engineering services occurs through a fair,
competitive selection process, free of undue political influence, t° obtain the best quality and value for
California taxpayers; and
(f) To ensure that private firms contracting for architectural and engineering services with
governmental entities meet established design and construction standards and comply with standard
accounting practices and permit financial and performance audits as necessary to ensure contract
services are delivered within the agreed schedule arid budget.
SECTION 3. Article XXII is hereby added to the California Constitution to read:
§ 1. The State of California and all other governmental entities, including, but not limited to, cities,
counties, cities and counties, school districts and other special districts, local and regional agencies and
joint power agencies, shall be allowed to contract with qualified private entities for architectural and
engineering services for all public works of improvement. The choice and authority to contract shall
extend to all phases of project development including permitting and environmental studies, rights-of-
way services, design phase services and construction phase services. The choice and authority shall
exist without regard to funding sources whether federal, state, regional, local or private, whether or
not the project is programmed by a state, regional or local governmental entity, and whether or not the
completed project is a part of any State owned or State operated system or facility.
§ 2. Nothing contained in Article VII of this Constitution shall be construed to limit, restrict or
http ://www. celso c. org/KOI%20P ages/fair_comp_initiative.btm 8/2/99
Falr_Comp__Initiative Page 2 of 3
..
prohibit the State or any other governmental entities, including, but not limited to, cities, counties,
cities and counties, school districts and other special districts, local and regional agencies and joint
power agencies, from contracting with private entities for the performance of architectural and
engineering services.
SECTION 4. Chapter 10.1 is hereby added to Division 5 of Title 1 of the Government Code to read:
§ 4529.10. For purposes of Article XXII of the California Constitution and this act, the term
"architectural and engineering services" shall include all architectural, landscape architectural,
environmental, engineering, land surveying, and construction project management services.
§ 4529.11. All projects included in the State Transportation Improvement Program programmed and
funded as interregional improvements or as regional improvements shall be subject to Article XXII of
the California Constitution. The sponsoring governmental entity shall have the choice and the
authority to contract with qualified private entities for architectural and engineering services. For
projects programmed and funded as regional improvements, the sponsoring governmental entity shall
be the regional or local project sponsor. For projects programmed and funded as interregional
improvements, the sponsoring governmental entity shall be the State of California, unless there is a
regional or local project sponsor, in which case the sponsoring governmental entity shall be the
regional or local project sponsor. The regional or local project sponsor shall be a regional or local
governmental entity.
§ 4529.12. All architectural and engineering services shall be procured pursuant to a fair, competitive
selection process which prohibits governmental agency employees from participating in the selection
process when they have a financial or business relationship with any private entity seeking the
contract, and the procedure shall require compliance with all laws regarding political contributions,
conflicts of interest or unlawful activities.
§ 4529.13. Nothing contained in this act shall be construed to change project design standards, seismic
safety standards or project construction standards established by state, regional or local governmental
entkies. Nor shall any provision of this act be constrUed to prohibit or restrict the authority of the
Legislature to statutorily provide different procurement methods for design-build projects or design-
build-and-operate projects.
§ 4529.14. Architectural and engineering services contracts procured by public agencies shall be
subject to standard accounting practices and may require financial and performance audits as necessary
to ensure contract services are delivered within the agreed schedule and budget.
§ 4529.15. This act only applies to architectural and engineering services defined in Government Code
section 4529.10. Nothing contained in this act shall be construed to expand or restrict the authority of
governmental entities to contract for fire, ambulance, police, sheriff, probation, corrections or other
peace officer services. Nor shall anything in this act be construed to expand or restrict the authority of
governmental entities to contract for education services including but not limited to, teaching services,
services of classified school personnel and school administrators.
§ 4529.16. This act shall not be applied in a manner that will result in the loss of federal funding to any
governmental entity.
§ 4529.17. The provisions of this act are severable. Ii'any provision of this act or its application is held
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Fa[r_Comp_Initiative Page 3 of 3
invalid, that invalidity shall not affect other provisions or applications that can be given effect without
the invalid provision or application.
§ 4529.18. If any act of the Legislature conflicts with the provisions of this act, this act shall prevail.
§ 4529. I9. This act shall be liberally construed to accomPlish its purposes.
§ 4529.20. This act seeks to comprehensively regulate the matters which are contained within its
provisions. These are matters of statewide concern and when enacted are intended to apply to charter
cities as well as all other governmental entities.
SECTION 5. This initiative may be amended to further its purposes by statute, passed in each house
by roll call vote entered in the journal, two-thirds of the membership concurring, and signed by the.
Governor.
SECTION 6. If'there is a conflicting initiative measure on the same ballot, which addresses and seeks
to comprehensively regulate the same subject, only the provisions of this measure shall become
operative if this measure receives the highest affirmative vote.
http ://www. celsoc, org/KOI%20P ages/fair_comp_initiative.htm 8/2/99
---:,
I-t ~11 Anza Boulevard, #406 · Burlin~,ame, CA 94010
· 650-340-0470 · FAX': 650-340-1740
FI 11300 W. Oigmpic Boulevard, #840 · Los Angeles, CA 90064
· 310-99(3-2B00 · FAX:GlO-99(3-")(373
WHO SUPPORTS "THE FAIR COMPETITION AND TAXPAYER SAVINGS ACT"?
Legislation and Initiative (as of 7/1/99)
California Chamber of Commerce
· California Taxpayers Association*
California Business Roundtable
Operating Engineers, Local Union NO. 3 (AFL-CIO)
Operating Engineers, Local 12 (AFL-CIO)
National Federation of Independent Business
Associated General Contractors*
California Building Industry Association
California Minority and Women's Business Coalition
California Manufacturers Association*
California Business Properties Association
Coalition for Project Delivery
California Cement Promotion Council
California Chapter, American Planning Association-
California Contract Cities Association
Western States Petroleum Association
California Fence Contractors Association
California Travel Parks Association
California Taxpayer Protection Committee
Alliance of California Taxpayers and Involved Voters
Responsible Voters for Lower Taxes
United Californians for Tax Reform
Local Organizations
Waste Watchers
Contra Costa Taxpayers Association
Kern County Taxpayers Association
League of Placer County Taxpayers
Butte County Citizens for Better Government
Orange County Taxpayers Association*
San Diego County Taxpayers Association
Santa Barbara County Taxpayers Association
Shasta County Taxpayers Association
Sonoma County Taxpayers Association
Bay Area Council
Greater San Diego Chamber of Commerce
Orange County Business Council
Orange County Transportation Coalition
Local Government
City of Oakland
City of lrvine
City of Newport Beach
City of Richmond
City of Colfax
City of Cotati
City of Arcadia*
City of Claremont*
City of Emeryville
City of Odand
City of Kerman
City of Lancaster
City of Loma Linda
2
City of Westminster
City of Rohnert Park
City of Ft. Bragg
Kings County
Lake County
Humboldt County
Livermore/Amador Valley Transit District
Metropolitan Transportation Commission*
Contra Costa Transportation Authority
Lake County Flood Control & Water Conservation District
Heritage Ranch Community Services District
Vista Irrigation District
Lake County Sanitation District
Engineering and ArChitectural Organizations
Consulting Engineers and Land Surveyors of California
American Institute of Architects, California Chapter
Engineering and Utility Contractors Association
Engineering and General Contractors Association
Bay Counties Civil Engineers and Land Surveyors Association
Society for Hispanic Professional Engineers, Greater Los Angels Area
Structural Engineers Association of Northern California
* Legislation only at this time.
RESOLUTION NO. - 99
A RESOLUTION OF THE CITY COUNCIL
OF TIlE CITY OF DUBLIN
SUPPORTING ~ 1448~ ACA 16~ A~
FA~ CO~E~ION ~ T~AYER SA~GS ~~T~
~G~~G P~LIC AGENCY CONTACTS W~H
P~ATE ARC~TECTU~L ~ ENG~E~G F~S
~~AS, C~o~a's population ~o~h has resulted in the demand for more than $90 bilhon
woah of~ghway, school, pfiso~ flood control, and other ~astm~ure improvement projects; ~d
~~AS, the need for state and locM gove~ents to con~act with the private sector for
mchte~ral and en~neefing se~ces has never been greater; ~d
~~AS, a series of success~l lawsuits has resulted in effectively ba~ng C~tr~s 5om
contra~g ~th private en~neers ~d ~c~tects; and
~~AS, a recent study by the Ca~o~a Bus, ess Roundtable has dete~ned that the Caltr~s
lawsuits ~I ~reate a $3 billion bac~og of~ghway and bridge projects Mone; and
~~AS, ~ 1448 and ACA 16 Mlow the state and locM govementS to contract Mth private
comp~es for arc~tecmrM ~d en~nee~g se~ces; and
~~AS, ~ 1448 ~d ACA 16 will save CaMo~a's t~payers money by encourag~g
competition between State employees ~d ~e private sector; and
~~, ~ 1448 ~d ACA 16 requke ~chte~re and en~neefing contracts to be subject to
st~d~d accounting practices ~d require financi~ ~d peffomance audks as necessa~ to ensure contract
se~ces are dehvered Mt~n the a~eed schedule and budget;
NOW, T~FO~, BE IT ~SOL~D that the City Council of the Ci~ ofDubhn suppo~s
1448 ~d ACA 16 for ~chtecmral ~d en~neefing se~ices as ~ idtiative and legislation.
BE ~ ~~R ~SOL~D that a copy oft~s Kesolmion shall be fo~arded to the Consulting
En~neers and Land Su~eyors of Calio~a (T~payers for Fair Competition) orga~zation as requested.
PASSED, ~PRO~D ~ ~OP~D tbs 17th day of August, 1999.
A~S:
NOES:
~SE~:
~ST~:
Mayor
ATTEST:
Ci~ Clerk