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Home My WebLink About5.01 AB1448 ACA16 TaxSave 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 ~" . ' ';~."~..-.'" ...-'.'...~.,:i". ~ '7~ ::-,~:-~::~,-;,.:',.':-.-.'-,':-. .::_."/~ , .,'- ~.,::......,~. .'";...':-~....,.' :~ :. -.'.,'. ",.~.'~.~ ~ ~.-:;'?:.'...., . 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(C°a:thorS: Assembly Membe;s' camphOR, Leach, and"'::'::...'::7:.::f': '::: - .: .., ,...:,. - . . - ,: :: ::?::',:-: .' ..-: :. ::.- '..:... :, ~..::.-: Oller)'.~:'~:'...::~:.:.;:':': ::. :.:'?..:?:-.::....:.:,..:: :¢ :::::-: :::::::::::::::::::::: : -"" :..::-'.': ::' (Coauthd~: senaiOr":oh~hndssen)": :"-',:'--.::':'-~:::.::::f :. :. :-.:'"' ": ."-:' :":"':'- - - . .~. .:. . - . -. - --:-';.~ .'-.:..:'t ' 7.. *.. ': . ' -:' : '.: t- . . ':. .' .... :,. ,' :. "-: ": ;:-' :~ '~ '. "-~: ?' ....... :::::::::::::::::::::::::::: .?-'?:.5?:::...7'~':' .,.: ':': ,:::~'," :' ~:' : ...... :':"-';' : :: - .:: :," - ......_ -. -' Febm~ _6;- 1999 -:":; '::'-: .: ::t::::::',: ".:::;.: ::: :::-.:::::::::::::::::::::: ~ -- ~.. ... .::. : . .- '7 -...'........ .:.." :: · : .';- :: .... ..... ,-'.-.': .::::.~-'~:<?'i.:::~::.~:~':~:.' , Q. Z::~..::::.;:'.":::,.:".-, :. /: :~3.-:-'..'.:.::.-:- k. ' . 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'lodal. agencies., fdf:."'~c~tec~fl~::.:'landS~ape : '- : architectural, engineering, environmental, ~ .land.: su~ey!ng,' and cons~uction project management se~ices ...... ?.. -: . - - This bill would enact stamtoU provisions m. imple~ht::a proposed amendmeni'to the Califo~a Constitution related 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:" .. i ' -" '- Mandates Claims.' Fund ' to ' Pay-" the' c6'sts~ ~f.-'~and~'te~:':~th~/~"i d?'"'i~'.'::'"~: !.' '" ."'}..' i ' : "" :: : . .' '..'.' . The people oftheState of CaliforT, za do enactasfoIlo s:'. -~: .: :' ".... _' ..... : ::-:'.-~ -'.~ ~':: :- .. . -..~:: :_:.:.-..~: ::' 8 :..::.::- 45-9.6 l~::::For:- pu~o.ses,, of ~cle: XXII':~ of. ~e. Ca~f6rma :.-.....:: ...: ..:. ....:-: .:-.. }'.~ . _ 19"'entity' has"::-shall have the "choice: and the- authority..` to ':~:.:.~:.:_ ::::' ~:::. 20 con~act with qualified pfiVate'""ehtitie~'-.'for": ~chirecmral- :~":: : :' ':'~ ~":' funded >" a~.':' rdgional improvements, ~e sponsoring' ~_.. -- 23 -' governmentaI entity ~ Xhall be ~e' region~ or: loc~ : 24 project sPonsor. For projects pro~a~ed and funded as : :' 25 '_inte=egion~': ' -' improvements; - ~e "- ~ sponsoring 26 governmental entity- ¢ shall be ~e State of Califomia,: ~ -. 27 unless there is a regional or local project' sponsor t~cn in . .: ..:. ~-~.:"'.~. , · , -... . - ~ - ~, ._ g governmental entity b shall be ;: _ >onson ~e regional or local ,;-;'. ';; _..:~ '~:-:'--'- '..-.' · l~!',ii" and l - engineering .--: se~ices -' ....... ~ .... .... fain ':"*"~". - which prohibits ~eesr.: from-- p~mpaungz. ~n ' [:.. . -,~,~.:-,.. ::-' ;?- :' .:"-7~::,.~:.?& ;'~heh?~ey have a fin~ci~ or `~`~`.~..~``~~}~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 '~ 'y~'; ;:~": ' ':"' -:;'~'" "~:;~'~-~'~?~'~'~?~27?5:5~;~'---?:'r';F'-'":'~7~--?K~'~&:;?'?:'~-~''--~''°'"C ~'~-~' ¥:"' " : ' - ' /' ~ ~,'" ~ ~z .C:-',,;: ' ' ' ..... -'?.::;~';';~:~.g?.;-:',9~:?~":~'~':~)'~":::~' ~.:- '.*.-"?,~?;?~:?':~'; - '' ' ~ - -:.-.;-..- .... -.:-.:..-:~?.;~'; ::- 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 '..-' · ~ "- ~?_- , . ..- .. ' ' . -.. -, . :.'_ "_[,. .. - ~ . .., . :,: .'..q, . . ....~ 7'. - .2.'...~ ~':-..,.: r-'..' -.(-.:..,- = , .- .. - . ,,- . }~:::;:'.-:':,,- f6.':-': "- ........ : ~ ....... .. . .-% ._.:..::. ?/:-:'-: ...... ~ - - ~ . . . ,:;,- _: :-::=' ::..''.;:; :.:,. =;..~ ~' . -. %.?.. , '..- '.:=. :-... ::.'.: ..'...:~-:::... ::.' ~ - -,.- .-,-:..- . . j.. , ::.;',...:-., . { - ' ' ' -'-- ,- '-::'::' - ":;::2 ~ -..: . - : ::: ~: ,: ?' .-,_ .-. - ?- r 0 ~'. ..... .--" .... ' ;":~:.-:"- - ' .... '" ':~:.::- -: ',: ' - 98 ~;-:~:.. =.-- -,??:,:~.?-:: ;:-~:~' :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 http://www.celsoc, org/KOI%20Pages/fair_comp_initiative.htm 8/2/99 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